tv After the Bell FOX Business August 1, 2019 4:00pm-5:00pm EDT
they still have time to cancel tariffs. [closing bell rings] it is probably donald trump negotiating again. liz: 600 point swing from peak to trough for the dow. it closes down 272. thanks to all of our guests. time for "after the bell." >> good afternoon, an escalation of the trade war with china. president trump announces the u.s. will impose new tariffs on $300 billion of chinese imports. the dow tumbled as much as 566 points in reaction to the president's tweets. president trump saying he is not concerned about the steep drop. i'm jackie deangelis in for melissa francis. connell: i'm connell mcshane. nasdaq and dow ending down.
the comment president making now are on the south lawn of the white house, as you look at the white house live in washington. he is making them now. you know how this works by now. once he is finished we'll get the tape playback from the president with the breaking news at this hour. jackie: meantime fox business team coverage from washington to wall street. blake burman at the white house, deirdre bolton on the floor of the new york stock exchange, phil flynn watching all of the action in oil. big day at the cme we're going to start with blake. reporter: let me try to walk you through the beginning of how everything started at the white house today that led us to where we are. earlier today the president had a meeting with his trade team, the folks who were in china shanghai negotiating with china face-to-face for the first time since may. members of his tray team, members of the economic team as well briefing the president. after that meeting, at least at the end of that meeting we got a tweet from president trump saying several different things. let me put the tweet that
changed everything up. china agreed to by ag products from the u.s. they're not doing that. president xi said he would stop the sale of fentanyl in the u.s. that never happened. september it 1st he will put small tariff the on remaining $300 billion worth of goods coming into the country. that is after the president heard from the trade team that briefed him on everything that happened in shanghai this week. right now president trump is on the south lawn talking to reporters. the president is leaving for a campaign event tonight in cincinnati and among the headlines from that gaggle going on right now, the question and answer session going on right now the president says he is not concerned about the drop in stocks. he says the u.s. will be taxing china until there is a deal. says if they don't want to trade with us, it is fine with him. but he also thinks that president xi wants to make a deal but that xi is moving too
slow. china is moving too slow as it relates to ag purchases and fentanyl. the president has mentioned several times that what china is doing in response is devaluing their currency. so to wrap it all up, we should hear from the president shortly as he was briefed from his team. he is now threatening more tariffs against china. back to you. jackie: blake, thank you so much for that. let's get straight to deirdre bolton with the latest from the floor. >> jackie, what a day. our viewers can follow along how the dow went. at its peak it was up 311 points. i'm still watching it settle, down 280. a huge point swing. if you look at stocks that fell the most, not surprisingly a lot of global laggards or global trading stocks, the ones that are bellwethers fell. look i'm focused on the screen with dow, caterpillar, john deere was another one. you can see weakness in the financials and that was really one of the bigger sector weights across the market.
nike brings up another interesting trend. both nike and apple fell a lot. these consumer products, some getting as much as 20% of their revenue from china. oppenheimer putting out a note, saying if these tariffs go into effect as the president stated they would on september first, retail is going to be one of the hardest hit sectors, saying of course as a reminder all of us end up paying tariffs. oppenheimer is signaling caution, american consumers can pull back, even freeze on their spending. as for the way the sector patterns went, i alluded to some of these, energy, financials, industrials, these are the weakest links. if you look at ones limiting overall losses they were defensive. jackie, meantime back to you. connell: deirdre, thank you. oil plummeting today as well. that was something else in the market. we get lost talking about it, stocks and bonds. nearly 8% drop in the session for oil. steepest loss in four 1/2 years.
phil flynn from chicago. you escalate a trade war, you get more gas prices right, phil? >> that is the good part. there is us a winner for every trade. it is interesting. if you look at markets early this morning, stocks market was coming up. gold prices were down. everybody was saying okay, the fed disappointed us, we're backing off a bit. oil was still down when the stocks rallied because there was talk about slowing demand. a lot of big banks came out, said, listen, demand for oil is weakening. it was already under pressure. but the tariff situation, that basically was the straw that broke the camel's back. that is what really sent these prices down to these lows, the reason for the big dramatic selloff. traders know that trade wars can actually hurt oil demand, especially in china. that is the biggest concern because their manufacturing sector has been slowing. more tariffs mean less goods, less oil consumption. that is the initial play. if you really want to get whipsawed, look at gold today.
gold was down. disappointed with the fed. what a turnaround at the close. closing really strong on that safe haven play. back to you. connell: thank you, phil. jackie: let's bring in today's market panel, lenore hawkins, thematica, and lindsey bell. crfa analyst. let's start with you, lindsey, president trump, the tweet, more information about new tariffs. there is another month of negotiation is this a negotiating tactic? >> could very well be. august is one of the worst month for performance for the market. we were likely due for volatility anyway. as far as trump's negotiating tactics for sure, this definitely could be one of them. you see trump usually put into place these hard-line negotiating tactics. often times he steps back. we have a lot of time between now and september 1. i would expect to hear some news and headlines on trade over that period of time. jackie: lenore, it was a wild ride at least for the dow today.
you can see we started the session really strong. we ended on a much weaker note even though we're off session lows. was this action warranted? >> put it in context. earlier this week all the major u.s. equity indices were fairly significantly overbought territory. that was based on the goldilocks hope that the fed would deliver at least 50 basis points that things were going fantastic with the trade war. i don't see how things will go fantastic with the trade war. this is a long battle we have ahead of us. the chinese know that trump's facing re-election in 2020. so that gives them a little leverage to try to push back as well. this isn't something that will be wrapped up quickly. the market was really hoping that things were all going to be easy and they never are. jackie: stick around with us. connell: helping us dig a little deep near the trade war, the tweets today, maybe what comes next, steve or liens, president of national committee on u.s.-china relations joins us
here in new york. thank you, sir, for coming in, we appreciate it on a day like this. seeps like the president, he said as much a few moments ago, we'll hear it when we get the playback, he to think president xi wants to make a deal. he attached as noted a new date for tariffs on september 1st. is there any reason in your experience to believe that the chinese will give in or make any major concessions before september 1st? >> i was confused by the president's tweets. he said they didn't buy the agricultural products but i got up this morning, saw there were major soybean purchases in the last few days by china. i was surprised. i was also surprised about the tweet about fentanyl. i've been talking to people in the u.s. government, they said that china has done a very good job on restricting export of fentanyl to the united states. connell: you don't think either one of those two assertions is true? the chinese said they bought more agricultural products? >> the u.s. government saying they bought more.
connell: and fa at that nil, from sources people you're speaking to? >> i think chinese, sense huawei, the number of months, chinese position have hardened. i think chance of a reaching a deal decreased. these tariffs don't go into effect until september 1. the announcement they said there will be low level meetings during august. we'll not wait until the meet national september but low level meetings will occur. those low level meetings can deal with a lot of intricacies reaching a deal. we're talking about major changes in the chinese economy. i'm deeply concerned this is not something that is going to end in the short term that it will drag out for years, lead to a decoupling of our economies which is bad for the american people, bad for the chinese people, and bad for world gdp. connell: tell us what you think that means. key word used a l, i was just in china june, a lot of people that were there especially were
talking about the so-called decoupling. i will add, you will probably hear more about this in our reporting later this hour. edward lawrence in washington, he and his producer have done a great job covering the china trade showdown. they heard from sources inside of china that the talks in shanghai last week did not go well at all and that to your point, steve, chinese sources have told edward and his producer that the directive in beijing, quote, decouple from reliance on the united states. so what does that all endp looking like if that is true? >> the chinese would prefer the system remain as it is today, that the supply chain continues to run through china. that qualcomm, intel, other chip companies continue to supply the chinese. huawei basically was throwing a hatchet down in the ground saying we're not going to allow this to continue anymore. so the decoupling is going to be the china focusing on indigenous innovation, pouring tons of money into creating the products
that they used to buy from the united states and the creation of what is effectively two different ecosystems which is bad. this is not something which helps u.s. gdp growth or chinese growth or kind of the world economy. i think ultimately this decoupling, if it occurs, will lead to lots of negative consequences for u.s. job growth. connell: okay. recession in the united states? >> not recession but it certainly will slow gdp growth. connell: so slowing means what? i know it is hard to define those types of things, but if you already have tariffs in place, we know all the goods coming in from china will be the subject of tariffs, what does that look like? because i mean, the president said it again a few moments ago he believes, something along the lines of china will continue to pay the tariffs not u.s. consumers but pretty much everybody knows that is not the case. that is not how it works, right? >> correct. that kind of, the idea that the -- what is going to happen,
supply chains will be broken. okay. >> that walmart customers are going to be paying higher prices ultimately, if walmart can find another supplier, they will have to find another supplier. ultimately tariffs of this amount, with 25%, 10%, on goods where the value added is not that great will have to change their supply chain. that is going to be damaging to all. it willing damaging to the u.s. consumers t will be damaging to chinese consumers. connell: you of think before we go to edward in washington do you think we get a trade deal? >> i i ultimately we get a trade deal. i think a lot of other things are going on, restriction on chinese investment in the united states has fallen off a cliff. we came out with a report yesterday where chinese investment in the united states is actually contracting. some of that investment in the rust belt was actually job creating, the fact that we're losing that is not good for u.s. employment. connell: right.
>> so you know, i think we're, we get a trade deal because ultimately the political pressure on president trump and on president xi is so great that they have to find a way to kind of come together. connell: all right. >> and that will happen in my view, at some point before the election. some of the swing state really, agricultural exports, they're being really hurt by the tariffs. energy exports are being hurt by the tariffs. these are areas which president trump needs to win in order to be reelected in 2020. connell: before the election, larger decoupling still the story. steve, great insight on all the news which we have more of. thanks for coming in. jackie: we'll go straight to the breaking news, connell, that you mentioned, the chinese working towards a decoupling from the united states. edward lawrence is here with details for us. edward? reporter: chinese sources are telling us that meeting in shanghai did not go well. in fact the chinese will not add in any concessions they had made originally in the trade deal,
they deleted from the deal. chinese say there is directive from beijing to try to decouple from reliance on the u.s. economy. that could already be seen in an agreement they made with russia, basically china will try to create a soybean industry for russia, including technology and the transportation of that but chinese sources again saying that this meeting did not go well for the u.s., or for china. they were really digging in their heels. the newest member of that meeting, the chinese commerce minister really dug in, saying he basically wasn't quite up to speed on everything. he needed to delay. there was a lot of delaying going on within the meeting t did not sit well with the u.s. side, u.s. trade team according to our sources there. again the chinese unwilling to budge or add back in anything, or any concessions they had made that the u.s. said that they had deleted from that agreement. back to you, guys. jackie: thank you. back to lenore and lindsey. you heard edward's report. i'm wondering if august, not a
great month for stocks anyway, will be a worse month with this what if on the table as we wait for more news how negotiations progress? >> i definitely think august will be news driven. the headlines can swing the market either way. i think that for president trump, one of the biggest mistakes he made was first of all, in march, when he eliminated the deadline, the trade deadline for tariffs to increase to 25% in march. he let that weigh on until may. it made the chinese seem that they didn't have a sense of your again system you saw him flip-flop with huawei. huawei is the biggest chip. it would be better incentive in the negotiation than 10% of tariffs on $300 billion that would hit our consumer. he can really strike hard with huawei. jackie: we'll go straight to breaking news. president trump speaking to reporters on the white house lawn moments ago. let's listen. reporter: [inaudible].
>> i'm not concerned about that at all. i expect a little bit, people don't quite understand about what's happened. we taxed china on $300 billion worth of goods and products being sold into our country. and china eats it because they have to pay it, because what they do, they devalue their currency, they push money out. our people haven't paid as you know, we're also charging them 25% on $250 billion. so we're taking in many billions of dollars. there has been absolutely no inflation, frankly it hasn't cost our consumer anything. it costs china. what has happened a lot of companies are moving out of china so they could avoid, china had a rough, this is their worst year in 27 years according to yesterday's "wall street journal." i don't want that but when my people came home, they said we're talking. we have another meeting in early
september. i said that's fine but in the meantime until such time as there's a deal we'll be taxing them. which, we're getting very good numbers from the border. the 21,000 soldiers supplied by mexico. i want to thank mexico. they're doing a great job. the numbers are way down at the border. reporter: on north korea, they apparently just launched their third missile in a week. is kim testing you? >> i think it is very much under control. very much under control. reporter: why do you say that? will you start negotiations again, sir? reporter: [inaudible]. >> what would you say it is? let me ask you a question -- right, right. right. sure. sure. what would you say when china, for the last 20 years has been taking hundreds of billions of dollars out of our country? we had a president that would never do anything, a number of presidents would wouldn't do anything about it, what would you say? for many years china has been
taking money out by the hundreds of billions of dollars a year. we have rebuilt china. so now it is time that we change things around. if they don't want to trade with us anymore that would be fine with me. we would save a lot of money. reporter: [inaudible] do you believe xi is slow walking this and are you concerned -- >> no, i think president xi, who is somebody i like a lot, i think he wants to make a deal but frankly he is not going fast enough. he said he would be buying from our farmers. he didn't do that. he said he would stop fentanyl coming into the country. it is all coming out of china. he didn't do that we're losing thousands of people to fentanyl. this was time. importantly for many years, you know better than anybody, you've been covering a long time, for many years china has been taking out hundreds of billions of dollars a year and rebuilding china. time we rebuild our country.
reporter: do you still trust him? >> one thing i have to say, you have to say this, what china is doing is they're devaluing their currency and there are pumping money out like they have never done before and they're paying for these tariffs. we're not. reporter: do you still trust president xi? reporter: reports that -- [inaudible]. >> well something is probably happening with hong kong because when you look at, you know, what is going on, they have had riot for a long period of time. i don't know what china's attitude is. somebody said that at some point point they will want to stop that but that is between hong kong, that is between china, because hong kong is a part of china. they will have to deal with that themselves. they don't need advice. reporter: mr. president, sir? reporter: put a date of september 1 on tariffs. [inaudible] >> no, no.
september 1. the reason is it takes a long time for the ships to come over and it's a period of time. i'm giving them a four-week period of time before the tariffs to on. we're now taking in tariffs on 10%, on over 300 billion and 25% on 250 billion. and it has been proven our people are not paying for those tariffs. reporter: [inaudible]. >> go ahead. go ahead. reporter: [inaudible]. >> short-range missiles. we never made an agreement on that. i have no problem. we'll see what happens. these are shore range missiles. they're very standard. reporter: will you continue negotiating with them, sir? >> go ahead. go ahead. reporter: [inaudible]. are you concerned about reports that cia nominee has a felony record as democrats -- >> congressman ratcliff is an outstanding man, i'm sure he will be able to do very well.
i think he is just outstanding. highly respected by everybody that knows him. reporter: mr. president on cincinnati, sir -- reporter: [inaudible] >> we have not changed on huawei. we're not allowing huawei into our country. we're not changed on that. we can do business for non-security things with huawei because it is you know, we'll do that, but anything having to do with national security we're not dealing with wah -- huawei. reporter: on your rally -- reporter: [inaudible] >> i haven't actually heard that i know there is a lot of things going on. that is a piece of it i guess but i really don't know. i haven't spoken to them about that. i would frankly be surprised because what james comey did was illegal. so i would be surprised but i don't know anything about that. reporter: mr. president, in cincinnati at your rally are you prepared to tell your supporters to stop if they begin chanting something problematic? >> i don't know what is going to happen. i tell you this.
i'm going to cincinnati. the arena is very large one. we sold it out. we could sell it out probably 10 times from what i hear. applications for seats as you know, never had an empty seat. the applications are very big. i have no idea. we have a great group of people. they love our country. they love the job we're doing. and when they see the kind of people that want to represent us from the last two nights, that is not what they want. i don't know, i can't tell you whether or not they're going to do that chant. if they do the chant, we'll have to see what happens. reporter: will you stop them, sir? >> i don't know that you can stop people. i don't know that you can. we'll see what we can do. i would prefer they don't, if they do it, we'll have a make a decision then. reporter: do you have a message for them now, like before they go? >> i do have a message. my message for the people i'm going to, we had over 100,000 applications for whatever the size of the, i think it is 14,000 seat arena. but we're way over 122,000
applications. for those seats. you know what my message is? i love them. i think they love me. i actually think they love me. reporter: mr. president, on bin laden sir? reporter: [inaudible] >> have they accepted the offer or not? reporter: no, they have not. >> that is up, it is really up to prime minister modi. i met with prime minister khan. i got along great, i think they're fantastic people, khan and modi. i would imagine they can get along very well but if they wanted somebody to intervene or to help them, and i spoke with pakistan about that, and i spoke frankly to india about it but that has been going on, that battle for a long time. but if somebody, if i can, if they wanted me to i would certainly intervene.
reporter: would the u.s. government involved in the death of hamza bin laden? >> i can't comment about that but he was very threatening to our country. he was saying very bad things about our country. i will let you make your own comment about it. i won't comment, i will saw hamza bin laden was very threatening to our country and you can't do that as far as anything beyond that i have no comment. reporter: robert mueller -- [inaudible]. >> you don't really believe this? do you believe this? okay. fine. reporter: [inaudible] >> we didn't talk about that. i spoke with president putin of russia yesterday. they're having massive fires in the, in their forests. they have tremendous, i have never seen anything like it. it is very good. i offered our assistance because we're very good putting out forest fires, frankly. if they should need it, i offered our assistance. we had a good talk a short talk but a good talk, and i think he
appreciated it. so we would be able to help them. these are massive fires like i haven't seen. that was the primary importance of the conversation. i think they, i think they very much appreciated it. reporter: on the fed, sir -- reporter: right now do you believe russia is interfering in the election? >> i watched mueller. i'm not sure mueller knows what is going on you want to know the truth. all i do know he said no collusion with us. no collusion, ultimately no obstruction because it led to no obstruction by a very smart group of people including our attorney general. so, no collusion, no obstruction. as far as mueller's performance you would have to say it was maybe, not so good. reporter: sir on the fed, mr. president on the fed, why wasn't a quarter rate cut good enough? >> so our country is doing very well. we're setting records in every way, including employment,
unemployment. we have now more people working in the night than ever before. the stock market will take a little hit. it will be phenomenal. ultimately will be much better because what i'm doing. somebody should have done it with china a long time ago. they decided not to do it. they made a big mistake. i will say this, there has never been a time in the history of our country we have right now. highest number of people employed, the best employment numbers for african-american, hispanic, women, for everybody. i mean the best numbers we ever had. our military is being rebuilt. it is almost fully rebuilt. it will be at a level in a very short period of time, stronger and better than ever before with new aircraft, new missiles, new everything. hopefully we don't have to use it. go ahead. reporter: what do you think of the democratic debate last night, biden and specifically the charge from congresswoman gabbard that you're assisting al qaeda? >> so, nobody knows what she
meant by that. i think even you probably didn't like that statement, john. she doesn't know what she is talking about. if you remember a short while ago i defeated isis. we have 100% of the caliphate so you know are always going to have somebody around -- we have captured over 10,000. we have 2500 isis fighters that we want europe to take because they were going back into europe, into france, into germany, into various places. so we have right now 2500 isis that we captured. we've captured 100% of the caliphate. and we have done a big job on al qaeda and everybody else. so for her to make that statement is ridiculous frankly. reporter: can you still negotiate with chem kim. >> for her to make that statement is so ridiculous and she is taking a lot of heat on it because nobody has done more against that war than i have. so we have thousands of isis fighters that we want europe to
take and let's see if they take them. if they don't take them, we'll probably have to release them to europe. reporter: can you still negotiate, sir, with kim after what he has done this week? >> say what? reporter: can you still negotiate with kim after what he has done? >> sure. because these are short-range missiles. we never discussed that. we discussed nuclear. what we talk about is nuclear. those are short-range missiles, sure. a lot of other countries test that missile also. reporter: why was the tariff 10%, not 25? if quarter point wasn't good enough, with would be -- >> everyone says gee, so tough, now you're saiding i should have done more. reporter: why doesn't you do more? >> i did more than anybody thought with the first 250 billion. the 10% is for a shore term period. then i can always do much more or i i can do less depending wht happens with respect to the a deal. i'm happy the way it is right now. my people came back. they will meet again in
september. i said if you meet, that's great. meantime we'll pay, they will pay a tariff and it will be a very substantial tariff. now, if you remember, what i did to 25%, i did it in stages. and this can also be lifted ultimately in stages or it can be taken off but it can be lifted in stages. so we're starting at 10% and it can be lifted up to well beyond 25% but we're not looking to do that necessarily. but this would be done in stages. so i put on 10% on 300 is approximately 300 billion. we already have a 25% tariff on the first 250 billion. and so the 10% follows the 250 billion at 25%. reporter: speaker pelosi -- >> go ahead. reporter: thank you, are you considering a blockade or quarantine of venezuela given the amount of foreign
involvement from russia, china and iran. >> yes i am? yes i am. reporter: when? reporter: [inaudible]. 116 house democrats -- >> it is interesting. nobody even mentioned this question to me in so long, until last night at the very end it wasn't even mentioned in the debates. people are not even thinking it's a hoax. i don't know if you know that, you know it's a hoax, right? nobody mentioned it to me. one thing i will say, that you haven't covered, two days ago a highly respected judge in the southern district of new york, in manhattan came out with a decision on the whole russia hoax and he said exactly that. it is a hoax. you ought to read the decision. this is a decision by a judge who is highly respected, who was appointed by bill clinton when he was president, and he came
out and said it's a hoax. that is exactly what it is. this was a case brought by the democrats against me and nobody wants to talk about it. you know why? because it is fake news. reporter: jared kushner, sir? reporter: about the inf treaty. >> we didn't discuss the inf. we mostly discussed the forest fires in siberia, other parts of russia. i said we have greatest equipment, if we can help you, let us know. large sections of are burning, i said to president putin we can help you. reporter: we're pulling out of the treaty tomorrow? >> we'll see what happens. i would say russia would like to do something on a nuclear treaty. that is okay with me. they would like to do something and so would i. reporter: [inaudible]. >> say it again? reporter: [inaudible] >> well i this elizabeth, i
watched elizabeth warren, sometimes referred to as pocahontas with her phony ancestry she didn't have, i watched her, i don't know, to me she doesn't have credibility. it is possible i have to run against her. everything she did was a fraud. she got into colleges, got teaching jobs. she said she was of indian heritage. it turned out to be a lie. elizabeth warren has a lack of credibility. which? reporter: [inaudible]. >> i didn't really, no, i didn't look. i think that kamala did not do well last night. i think, i think biden did okay. he came through. he came limping through as they say about "sleepy" joe, he limped right through it. but he got through it, he really did. i think he was okay. i think kamala had a bad night i would say.
but, it is really boiling down to four or five of them, let's face it. i don't see anybody coming from -- [shouting questions] reporter: do you have a message for [inaudible]. >> well i have a lot of respect for poland. as you know the people of poland like me. i like them. i will go to poland fairly soon. i know they're building an installation. they're putting in all of the money, 100% of the money. they're building something night for the united states to have. go ahead. reporter: nancy pelosi, yell if you don't mind, house speaker nancy pelosi, i don't know if you saw, flagged jared kushner as baltimore slum lord because he owns property. do you think your son-in-law has any responsibility? >> i think the responsibility is people running baltimore for many years, headed up by elijah cummings. they have run baltimore into the ground. we have given billions and billions of dollars to
baltimore. the people of baltimore appreciate what i have done for them bringing this up. it is number one city proportionally in the united states on crime. i saw it is a statistic worse than honduras right now. i think what people of baltimore, i think they really appreciate what i'm doing. the money was stolen or misspent or wasted and a lot of things happened, a lot of bad things but the government for many years has been very good to baltimore. we have to help the people. elijah cummings has not helped the people but maybe at some point we'll get together and we'll get it straightened out but what happened in baltimore is disgraceful. it is not only baltimore, it is other democrat-run cities. you ought to report on it sometime. [shouting questions] reporter: still going. [inaudible]
connell: president moments ago on the south lawn of the white house, just pausing to see, i don't believe the microphones can hear what he is saying in the last few comments. there he goes, to marine one on his way to cincinnati. that was moments ago, we get a tape playback on a day which we had breaking news from china on his china on his twitter feed. tariffs that were set to go in place september fist. we had analysis from lenore hawkins and lindsey bell. dan, you just joined the conversation. the president earlier today, he promises after september 1st, 10% tariffs on additional $300 of goods coming from china. what is your read on that what can happen before
september 1st, what happens after september 1st? the president says momenting a he thinks president she wants to make a deal what do you think? -- president xi. >> what worries me in a broader sense what good things trump has done on taxes and regulation are being offset by the bad policies he is doing on government spending and especially on trade. protectionism is simply not good policy. connell: lindsey, i will use dan's point to go to you, because one of the things we wondered about consistently throughout his whole, you know, tenure, while he has been conducting this trade war. the president has made a consistently dishonest argument in terms of how he, how he talks about why the tariffs in place or how they're being paid. he overand over again says they're paid by china, not by the united states. we all know that is technically untrue. it is just not true.
you can make other arguments they're absorbed by china, that they may change the costs of some products but sometimes he will talk about the fact that they may be devaluing their currency but you know, technically they're paid when they come in. u.s. companies are paying them, to dan's point they will pass them along. some have already, fear of new round of tariffs, because of consumer items there may be more passed along to consumers that may damage the economy. what is your read? >> you're absolutely right, connell. the tariffs are taxes on u.s. consumer. china can manipulate the currency to make the brunt a little less impactful to the consumer but if this 10% goes into place on september 1st, the consumer will be the first to feel it. it will happen on nike shoes. it will happen on iphone, any apple product coming in. what we'll need to see over the course of the next month, what type of exemptions will there be allowed for these consumer products that will now be
tariffed at 10%. connell: if any, right? saying apple won't get an exemption this time around be lenore. to lindsey's point the consumer, propping up the economy, weakness on the business side, we saw business invests start to fall and hearing jay powell telling yesterday, that is the reason or one of the big reasons they cut rates? >> there is a couple things here. like you were saying i really struggle constantly say china is paying the tariffs. they're not. then complaining about china manipulating their currency at the same time, basically in in e same 24 hours criticizing the fed for not lower rates here, apparently when we do it it is not currency manipulation. when china does it it is. on top of that trade wars, trade wars have become a corporate "whack-a-mole." who knows what country we'll be in a battle with next. that is not openly affecting china's investment in the united states. connell: right. >> that hurts jobs, but it
affects american investment in their own businesses because who knows how do you put together your production pipeline because you have no idea who we'll be battling with? where do you invest the money this where do grow your company? how do you best source products? there is less investment in businesses, fewer people being hired. there is less innovation because corporations are just nervous. what do they do with their money in they buy back shares. that is not good for us in the long run. connell: final point, dan, all of that being said the president's argument, those close to him saying it is all worth it, at the end of the day, you heard him in terms china is ripping us off for years, somebody needs to fight the fight, it will be worth it at the end. do you believe that. >> trump is right, that china is not a free trade nation. they have lots of cronyism, subsidies inside the financial system, inside their business organizations. that should be dealt with and what frustrates me, trump is shooting american consumer in the feet when he could somewhere been very successful cooperating
with the japanese, europeans using the wto to clamp down on china. it would have taken longer but much, much higher likelihood of success than the trade war he started. connell: continues, and escalated today. dan, thank you, lenore, lindsey thank you foranalysis throughout the hour. all three of. >> senate passing a debt ceiling and budget bill today. heading to the president's desk. will he sign it? we have report from capitol hill. authorities are looking into whether the woman charged with stealing data from the banks hit any other targets. what you need to know next. well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy.
jackie: breaking news the pentagon reportedly putting the 10 billion-dollar cloud computing contract on hold after president trump suggested that the defense department might have rigged the contest in favor of amazon. that is according to reports from "politico" and the "washington post." >> anytime someone tells you get something good in 10 years, you have to wonder why it takes 10 years. >> your plan in contrast, leaves out almost 10 million americans. i think you should really think about what you're saying but be reflective and understand that the people of america want access to health care. >> the bills that the president, excuse me, that future president
here, that the senator is talking about -- >> first of all i'm grateful he endorsed my presidency already. mr. vice president you can't have it both ways. you invoke president obama more than anybody during this campaign. you can't do it when it is convenient. dodge it when it is not. connell: second presidential debate is officially in the books. going forward the criteria is getting more challenging for the mexico -- next debate. 20 candidates so far but now the list includes senator joe biden, cory booker, mayor pete buttigieg, senator kamala harris, senator bernie sanders and senator elizabeth warren. other candidates still have until the 28th of august to meet the criteria. it is new criteria, 130,000 unique donors. the candidate have to poll at least 2% in four different polls. a couple contenders very close to meeting those standards.
we'll see what happens in the coming weeks. jackie: a last minute hustle, the senate passing a bipartisan budget deal just before the august recess. now the bill will go to the white house for the president's signature. fox news's chad pergram is live on capitol hill with those details. chad? >> they pass i had passed it 67-28. the problem was on the republican side of the aisle to vote for this. there were 23 republican no, sir. the reason a lot of republicans are very concerned about no deficit reduction in this bill, notably republican kentucky senator rand paul. >> can you hear isn't it's a dirge, a funeral march, it is the death of a movement. it is the last gasp of a movement in america that was concerned with our national debt. today is the final nail in the coffin. >> this bill spends no money. they have to work that out to get the appropriations bills done in september. house speaker nancy pelosi says
she is not concerned. >> we -- possible appropriations process. we'll have that debate as we go along but i think we set a blueprint for success to avoid a continuing resolution, to avoid a shutdown. >> president trump sent a tweet about the bill, he said quote, two year deal gets us past the election. go for it, republicans there is always plenty of time to cut. this is the problem, entitlement spending consumes 70% of all spending. defense another 16. democrats and republicans are not willing to cut entitlements and defense. that leaves the remainder, 14%. that is the problem, jackie. jackie: thanks so much for that. connell: meantime making a federal case out of it. house republicans launching a an choirry into capitol one and amazon on a breach involving 100 million capital one consumers and data stored on amazon's cloud services. the fbi is investigating if other companies may have been
targeted with the hack. grady trimble is live in the newsroom with breaking details. reporter: a lot to dig into, bear with me. house republicans, sorry, capital one to brief them what happened in this breach. they wanted same from amazon. because the data was stolen from the tech company's cloud service. on top of that the government plans to use amazon's cloud for the 2020 census. the department of defense might use it too. capital one's stock dipped earlier this week. it hasn't recovered. all the while israeli security firm reports other companies might have been targeted too. the suspected hacker, you see her here, page thompson, bragged about the capital one hack online. that security firm dug up more online posting which thompson claims to have hit vodafone, ford, the ohio department of transportation among others. i reached out to all of them. none says for sure they have been hacked. ford, ohio d.o.t. are investigating of the state of ohio even getting the fbi
involved. also today we're learning more about thompson's troubling past. new court documents show she threatened to shoot up an unidentified social media company in may. the company reported that threat. police investigated according to those documents this was revealed after investigators searched thompson's home. they found this, a cache of guns belonging to her housemate. he was arrested because he is a convicted felon. we could learn more about the breach in couple weeks. republicans want amazon and the bank to submit an application what happened by august 15th. connell: a lot going on, is an understatement. grady, thank you. jackie: the highest minimum wage in the country, $16.30 an hour. small businesses are taking a hit. robert gray in emeryville, california with more details, robert. reporter: jackie, that's right. now the debate continues here. how will higher wages and how
high they go, will prices follow? or you may see staffing or hours being cut back. the cbo, others have done studies on this. we're ad rudy's cafe in emeryville. a small town of 12,000 companies. high-profile companies are based here. we're down the street from pixar studios. down the bay from san francisco. high cost of living, housing utilities, food. we're looking at restaurants. restaurant owner eric hanson supports the wage hike but he is concerned about narrowing profit margins. >> it is great for them. i'm heap for them. i wish it was only about that amount of money that alone would be sustainable. but with taxes on top of that, starts to really make you, you know, it is a concern. reporter: unlike in other states, this is important. tipped employees in california cannot make less than the minimum wayne. hansen says his employees were making more than 20 bucks an
hour, including those tips. so he is saying higher taxes will push his labor costs much higher and prices are expected to follow. now keep in mind, emeryville minimum wage could go even higher. they indexed it to a local cpi, a basket of goods and services guys. here ad rudy's cafe, the owner says if inflation continues he you could see today's $13 burger, moving as high as 18 bucks down the line. jackie: wow. robert gray, thank you so much for the report. connell: interesting story and relationship there with prices. meantime, how about this, aging back 30 years. how technology is transforming, movie, even actors faces in the movies. incredible science that makes robert de niro appear three decades younger than he is. what it means for the industry going forward. that's next. ♪ $4.95.
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he plays a guy who claims he killed jimmy, pretty much his whole life. we see the same actor. >> i'm not sure what is going on. . my the only one? my dermatologist said it was a far better job. what about the movie itself? i think they had a movie and one other, this is a big gamble for them. not a lot of adult dramas
these long runs, they will pick up the slack. i believe they pay them upfront. there is no recognition of the box office. >> this was like the whole good fellows guy. >> thank you, sir. >> a very bill de blasio making passengers wait on the tarmac for ten minutes. his high priority appearance you think he must have done something very important. a cat up a tree in brooklyn or something but it's the view because no one else on the plane no one had a meeting to go to.
>> it's not that surprising. >> actually it's not. anyway we will see what brings. we are down to 80 on the dow. >> breaking is take a look at this my friends the dow shedding more than 540 points this afternoon direct response to -- from president trump announcing new terrace on china. stocks dropping further since the president gave more comments to reporters as he left the white house for a rally in ohio. listen. >> we have tax china. a billion dollars worth of goods and products being sold into our country and when my people came home they said we are talking. we have another meeting in early so tambor and i said that's fine but in the meantime until such time as there is a deal we will