tv The Claman Countdown FOX Business August 9, 2019 3:00pm-4:00pm EDT
it's expanding at a great rate. the world is big enough for three companies, costco, amazon, we own both and looking to pick up walmart soon. charles: courtney, scott, thank you both very much. the dow is off 57 points. i hand iver to susan li in for liz claman. susan: happy friday. breaking news to start off this hour. the china trade war running the markets ragged this friday. the dow well off session lows and this is after the white house clarified what the president meant to say before heading to long island for two fund-raisers. this morning the president sent markets tumbling by hinting that trade talks with china may not happen in september and that he was in no rush to make a deal. he also said that we would not be doing business with huawei so that remark sent markets to their lows but fast forward to this afternoon, the white house doing some damage control, saying the president was just referring to governmmart in the opposite direction.
we have ambassador charles reese here exclusively. crude up today some 3.7% in the after-hours session as wall street attempts to close out the week higher. right now, you see the dow still down some 57 points. the s&p also lower, just around half a percent down. the nasdaq in positive territory. we are up close to 4%. no, i'm not seeing that. oil was up close to 4%. uber is spending into overdrive, costing the company billions of dollars. a top tech analyst will be here on the road ahead for the ride hailing app and whether or not the investors will ever see them make money. plus the $8 billion roundup and charlie breaks it on cbs' possible tie-up with corporate sibling viacom. less than an hour to go until the closing bell. i'm susan li in for liz claman. let's start "the claman
countdown." susan: breaking news. it seems like the lights are back on after reports of a power outage in london, and large parts of england and wales. the uk power company blaming a grid failure and apparently, people were stuck in the tube without air conditioning, believe it or not. i feel sorry for them. let's get back to the markets because we are just a bit off. 45 points down for the dow, well off session lows as the white house clarifies only the u.s. government will not be shopping at huawei. overall for the week, the major indices are finishing lower as u.s./china trade concerns roiled the markets. chip makers making a comeback as well after the white house said they will continue to review huawei waivers for u.s. tech firms. uber has got to be the stock of
the day, down some 6% in the session, after reporting a record $5.2 billion loss and revenue that missed estimates. now, this loss is tied to $3.9 billion in ipo stock compensation. wall street was hoping that that was out of the way, at least, and uber will show promise in the months ahead. that's also weighing on lyft today, also down in the session heavily, in fact. now, there is a green spot and yelp is on pace for the best day in a year. the consumer review website operator falling short on revenue but actually, its profit beat forecasts. yelp also reaffirming its third quarter forecast as well. let's get to u.s./china trade. we have president trump launching some verbal grenades china's way earlier after calling them a currency manipulator. this as the president insisted he is not ready to make a new trade deal with the chinese, indicating that the next round of talks might not take place as
scheduled in early september. edward lawrence has been watching this from the very beginning and is standing by at the white house with more. edward, today the president also saying that no u.s. company will be able to sell to the chinese telecom giant huawei. where do trade talks go from here? reporter: yeah. you know, he walked back or the white house clarified those comments about the u.s. companies there. you know, the president as you said, he is saying that he does not want to make a deal with china at the moment. he says that maybe they're not ready for it although he does say that china would like to have a deal. in a 34-minute question and answer, the president really unloaded on china. listen. >> so china wants to settle this deal. they've had the worst year that they've had in many, many decades. and it's getting only worse. thousands of companies are leaving china. they would like to make a deal. i'm not ready to make a deal. right now, the talks are scheduled in september.
reporter: u.s. security team is planning on having those talks and having that meeting. we will see if they come. chinese sources tell us they expect 10% tariffs to be added september 1st because china will not buy agriculture from the u.s., so now the president upping the pressure and stresses that no federal department will do business with huawei. >> we're not doing business with huawei. that doesn't mean we won't agree to something if and when we make a trade deal, but we're not going to be doing business with huawei. reporter: now, that rule extends to government contractors in august of 2020, so about a year now. the president says he's looking forward to that scheduled meeting between the u.s. and chinese trade negotiators. they are planning for it on the u.s. side but susan, we have to see exactly one, if they show up and two, if anything happens. back to you. susan: edward, thank you so much. okay. so trade with china is today's market mover, as it has been for the entire week. the fed of course, the other
main driver as well for the past few days. let's take a look at former federal reserve chairman alan greenspan weighing in on interest rates and whether cutting is the way to go to fix the global economy, appearing on "mornings with maria," greenspan giving us his recession views. >> i don't think it's got anything to do with cutting interest rates but it's definitely sagging, but it's sagging around the world, i might add. this is a sluggish economy at this stage. the long term is unquestionably negative but there are positive signs in the short run which suggest that we're not about to tip into a recession. susan: speaking of positive, we just hit session highs for the markets in the final hour of trade. we have reversed all the losses. take a look at the dow. we are trading up four points. this is the perfect time to get to the floor show because we've got the traders standing by at the new york stock exchange and also cme group.
tim, this is encouraging, in the final hour of trade on a friday, investors are telling you they are willing to hold risk into the weekend. that's pretty positive. >> it's definitely positive. and the market has performed very well in the last three hours of the day, for the third day in a row. that's very positive also. i think by anyone's measure, investors have to have a high degree of optimism for the market given how far we came back from the lows on monday and again from the lows on wednesday. susan: so bear market, phil, for oil this week but look, in the after-hours we're up 3.7%. again, we are buying risk assets. >> we might be back in bull market territory the way this market has come back. yeah, really, when we saw oil prices crash earlier this week and get into bear market territory, we were pricing in a recession. we were pricing in the fact that if the u.s./china trade talks broke down it was game over, game, set and match.
we kept saying wait a second, we're not seeing the same thing that these economists are seeing in the economy right now. things aren't that bad. maybe we are trying to talk ourselves into a recession, but if you look at the numbers, they're not as bad as people think. on top of that, you've got central banks ahead of the curve right now, central banks around the globe cutting interest rates. that's positive right now. are we seeing a bit of a slowdown, absolutely. is it going to tip us into recession, absolutely not. susan: that's right. very good point that you made. let me ask you, chris, are we talking ourselves into a recession, with jpmorgan saying the risks have increased to 35% of having a recession in the next while? >> well, i think that's the case of guys trying to cover themselves in case we do get there. everybody wants to be able to say i was the first one to call it. we have been listening to that for a couple years now. so i think that the interesting thing is this was all happening in august, you know, the whole world, the financial community, knows that everybody in europe is on vacation in august.
so i look at china, if you wanted the one month to stop supporting your currency and sort of stick your finger in someone's eye, they did it in the perfect month. everybody's on vacation and that's why i think the big reason we had the selloff between monday, tuesday, we were down 8.5%. now we rallied back 1600 points and i think august, because so many people are still on vacation, we may continue to have that type of volatility. i'm glad to see us rallying higher and i think that next week, i wouldn't be surprised to see another, you know, 500, 600 point move. i think it's just the nature of trade in august. susan: i assume that's a move up, right? >> i hope so. susan: okay. tim, let me ask you -- >> down is bad. susan: tim, let me ask you this. this is thin volume trade and a bull market correction, is that how you see it? >> actually, the volumes every day this week and even for a couple have been very high. maybe 25% to 35% above the
yearly average. volumes are lighter today, it's a friday in the middle of summer, but generally, i think seen is that institutional cash buyers have absorbed all the very heavy selling that went on from hedge funds and levered funds, de-risking early in the week, and in the second half of every day this week almost, they've had more stocks to buy a thend still have an appetite for stocks that's overwhelmed the de-risking that's going on from the hedge fund and levered fund communities. susan: what about the buying and the safety play into gold? i looked around, i was like wow, we're back up to six-year highs once again. is that going to continue? >> i think it is. regardless of the economy going up or down, there are so many reasons why people are moving into gold. it isn't just a safe haven play but that's part of it.