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tv   Varney Company  FOX Business  August 26, 2019 9:00am-12:00pm EDT

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there are buying opportunities being created. use it. dagen: you get five seconds. >> watching fabulous sentiment. markets heading higher. we'll take it after friday's selloff. dagen: indeed. thank you all so much. "varney & company" starts right now. stuart, take it away. stuart: good morning, dagen. good morning, everyone. those meetings of world leaders, they used to be kind of ho-hum, didn't they? nothing much happened? trump's changed all of that. he has dominated this g7, he's lined up trade deals, opened up trade talks and it looks like china is going along. first off, japan, a $7 billion deal. they buy a lot of our agricultural products. britain, a huge deal after brexit, after the brits leave the eu on october 31st. big deal coming. germany, new dialogue on car tariffs. then there's china. they called up twice, the president says. he says they want to talk and he says a delay in the new tariffs
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is quote, possible. china says it is willing to resolve the dispute through calm negotiations. all sounds fairly promising and the market likes it. the dow industrials, huge drop friday, back up maybe 200 points this morning. s&p, same story, down friday, back up 18 today, about .66%. the nasdaq looks like it's going up .75% at the opening bell. caution. mr. trump holds a news conference which is scheduled for 9:30 eastern time, just as the market opens. we just got word, however, that the president is running a little late. be advised. it is likely to be a headline-driven market all over again. i've got to tell you this. money is still flowing here. the yield on the ten-year treasury at 1.53%. it was 1.44% earlier. the yield on the three-year treasury 2.02%. it was 1.95 earlier. the story here is not this inversion of the yield curve. it is the flight to safety, the
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safety that america offers. this is going to be a dramatic day for your money. a presidential conference is coming. you can't miss that. "varney & company" is about to begin. china called last night, our top trade people, and said let's get back to the table so we'll be getting back to the table. i think they want to do something. they've been hurt very badly but they understand this is the right thing to do. this is a very positive development for the world. reporter: you think it's possible that talks would advance and you could reach a deal to either delay or cancel the planned tariff increases that you have announced? >> i think anything's possible. i can say we're having very meaningful talks. we could have gotten here without having to go through this process and maybe i'm wrong, but i think we're probably in a stronger position
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now to do a deal, a fair deal for everybody. stuart: there's the president at the g7 summit, sounding optimistic about a trade deal with china. now, we are going to hear more from him live this morning. not sure of the exact time but it's coming up shortly. check futures. up about 200 points for the dow industrials. it's going to be a rock and roll week for stocks, i believe. just like last week. joining us, market watcher dennis gartman. i think this is going to be a headline-driven market. we will be up and down all day long. i don't want to predict where we close. what about you? >> i don't want to predict where we close. i don't want to predict where we are going to be on the opening. i don't want to predict where we will be at noon. it's amazing, stuart, that from friday morning at one point last night we were down 1,000 dow points from friday morning's opening. just astonishing what we are going through. it makes it difficult to be an investor, even more difficult to be a trader because no matter what you do, you are going to be proven wrong probably in a half an hour and proven right an hour
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later. just an amazing period of time. i have been at this 45 years and i don't recall having seen a period when we have seen this sort of volatility. stuart: let's look for some stability and certainly a safe haven. the price of gold holding pretty steady, well above $1500 an ounce. dennis, we know you like investments that hurt when you drop them on your foot so i'm guessing gold qualifies and that you like gold at this moment in time. correct? >> i have liked it for the last four or five years. i have really liked it for the last four or five months. i've liked it a lot more for the last four or five days. i think we got a little sporty to the upside last night when we traded, what, $1265 for just a few instances. we are trading back down to around $1230 right now. yes, i do like gold. i think you need to own gold because i think the monetary authorities around the world, whether it's the ecb, the bank of china, the bank of japan or even the federal reserve bank, all are going to err upon the side of monetary stimulus and given those circumstances, i
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think you want to err upon the side of earning gold. stuart: how do i buy gold? if i want to invest in it, want the safe haven, i think it's going to go up, do i buy gold coins? gold bullion? gold mining stocks? the etf, gld? what do i buy? >> yes. the answer is yes. stuart: all of them? >> you buy all four of them. i think the easiest and best way is to buy the etfs. the gold bugs, i'm not a gold bug, i don't believe the world is coming to an end and i don't believe gold is the be-all and end-all. there are times to own gold, times not to own much at all. the gold bugs think you should always own half of your portfolio in gold at all times. i'm not one of those. they will argue when i say the most efficient way is to own either gold mining stocks or the gold etf gld, or cef, the canadian gold etf. the etfs are the easiest, best and most liquid way for the public to gain exposure to the gold market. that's my, that would be my recommendation. stuart: attention viewers, attention investors, gold is
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dennis gartman's largest single investment in his personal portfolio. i think i got that right. that true? >> yeah, that's absolutely true. i own a lot of bonds and a lot of gold. they do seem to be antithetical but they have been doing a good job. stuart: dennis gartman on monday morning, thank you. see you again real soon. now, president trump, here's an opinion on my part. i think he's flat-out dominated the g7 meeting in france. he's not real happy about the way the media has been covering him. >> we have had a very successful g7. very friendly. very friendly. opposite of what you reported. you had a report where i was in the plane, i hadn't even landed yet and you said i was in a dispute. i said that's tough, i haven't landed yet. that was your predisposition. but it has been great unity, really. it's been flawless in that sense. we had a lot of fake news but
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they're saying oh, there's no unity, there's no unity. stuart: okay. fox news contributor jason chaffetz joins us now. plain and simple, this president is making all the news. seems to me from a strategic point of view, he's lining up allies on trade to go against china which is the rogue trade state. what do you say? >> yeah, i do think it puts pressure on china, when you announce the deal with japan, you show strength potentially with germany, nobody closer than the brits. what gets lost in all this and we forget about is this usmca, the deal with mexico and canada, two of our biggest trading partners, pressure on the democrats to bring that up and vote on it but that was pretty much in the can, and you know, when donald trump took office all the talk was about this trans-pacific partnership and you have to do it or china will do it. now here we are, you know, two plus years later, donald trump is proving true in doing these individual bilateral agreements
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and it's really paying off. stuart: we got a deal with japan, talking with germany on car tariffs, a deal with the brits after brexit, the usmca should go through, if nancy pelosi submits it to a vote at some point. that's a lot of progress on trade. the one outstanding thing is china. i think he's making progress here. >> he has, and he's shown that he's willing to take the heat at home, he's willing to take the fight. i think the chinese are starting to understand they can't keep racheting this up, and what the president is simply asking for is to be fair. don't cheat our american companies, don't steal their intellectual property and don't charge these tariffs on us, just create some fair, balanced trade and we can be some of the greatest partners that the world has ever seen. stuart: i'm sure you have seen what went on in hong kong over the weekend. more violent protests over there. a police officer fired off a warning shot to scare off protesters. by the way, they have scheduled
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a general strike for next monday. this is emerging as a huge problem for xi jinping. i don't know how he handles it vis a vis the trade talks with donald trump. what do you say? >> it is a tinderbox over there. you want there to be a resolution, but this has gone on for more than weeks now. we are starting to look at months here. i don't know how the chinese deal with this. but it is another thorn in the side of the chinese leader, who's got issues there. then you also have to add on to that, you know, potentially the trade, the sale of our military aircraft to taiwan. so it will be interesting to see how it plays out but it's a volatile situation there in hong kong. stuart: jason, thank you very much indeed. looking at that video again, that looks to me those are guns with live ammunition loaded and one shot was fired. those are guns pointed at the protesters. that is a new development. ashley: that's an escalation.
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stuart: sure is. sure is. look at this. dow industrials going to open up about 240 points for the dow industrials and premarket, you look at those big techs, facebook, amazon, apple, alphabet, microsoft, all on the upside better than 1% apiece. these are trade-sensitive stocks. the chip makers are all up on this relatively positive news out of china. i'm not going to go through them for you but the premarket chip makers, all of them up 1% to 2%. the price of oil, that depends largely on the value of the dollar which is not that much changed but the oil is up 1.4%, $54 a barrel, almost $55. here's what interests me. the price of gas. we are at $2.59, that is the national average for regular and falling fast. futures again up, what, 230 points for the dow, 60 points for the nasdaq. take a quick look at johnson & johnson. again, this is premarket. oklahoma wants $17 billion from the opioid makers for the
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epidemic in that state. a judge will issue a ruling today. a ruling against j & j could mean big payouts in similar cases across the country. that's johnson & johnson. president trump, as i said, dominating the headlines at g7. climate change and iran, hardly mentioned certainly by our president. mr. trump actually skipped a meeting on climate change. i'm going to tell you all about that. and we are waiting for the president's big news conference. you don't want to miss that. it will surely move the market. "varney & company" just getting started. if your gums bleed when you brush, you may have gingivitis. and the clock could be ticking towards bad breath, receding gums, and possibly... tooth loss. help turn back the clock on gingivitis with parodontax.
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stuart: johnson & johnson is a dow component. ash, there's an opioid verdict coming down? ashley: this afternoon, 4:00 eastern. this is a biggy. could be a landmark decision. the state of oklahoma taking johnson & johnson to court and this is what they claim that johnson & johnson has done, creating a public nuisance that's cost the state billions
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of dollars and destroyed thousands of lives with its opioid. the state wants $17.2 billion to be spread out over a 30-year plan. so that could be the verdict. we'll see. it all depends on whether the judge agrees on this particular strategy of a public nuisance. johnson & johnson says it's ridiculous, they call this case without merit, but let's not forget there were two other drug companies that were in this lawsuit. purdue pharma settled for $270 million. teva pharmaceuticals settled for consi $75 million. but johnson & johnson says we believe we have done nothing wrong and are not going to settle. the state of oklahoma says for every adult in cleveland county, which is norman, oklahoma, each adult has 135 prescriptions for opioids. that's the number of prescriptions given out.
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stuart: i smell trouble. ashley: we'll see how it turns out. stuart: we don't know what the verdict will be. thanks, ash. you can't get away from the g7 meeting. i'm not trying to. we are going back to it. president trump really dominated the headlines. that's my opinion. ian murray joins us from the competitive enterprise institute. looks to me, again, i'm big on opinion, frankly, looks to me like mr. trump is lining up trading partners to go and isolate china, the rogue trading state. how does it seem to you? >> i think that's exactly right. this isn't your grandfather's g7 anymore. even your father's g7. previously, g7 meetings were all about people sitting around and nodding at each other, then issuing a communique full of bromides. the president turned this into a useful series of working meetings, bilateral meetings with the leaders who really matter, and it looks like his agenda has won through at the moment. stuart: i want to talk to you
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about boris johnson. he's met one-on-one with president trump, you can see it right there. i think the president, i think boris johnson needs president trump for a trade deal after brexit and it looks to me like president trump is going to oblige. looks pretty good for the brits right now. >> it really does. boris johnson was -- has always got on well with the president so it's a real benefit for britain to have him as prime minister now. i think what boris was talking about in the dual meeting they had, he called out a lot of regulatory restrictions that the u.s. imposes on british exports. that's why you can't buy a good british pork pie in america because of regulatory restrictions. i think there's a good chance the president and prime minister johnson will get together and produce a new form of trade deal that's based around mutual recognition rather than the
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harmonization we tend to see in other trade deals. stuart: i have to ask you about how the brits feel about president trump. are they okay with a trade deal with president trump? are they okay with boris johnson getting real close to him? >> i think there's something called project fear has been running in britain ever since the brexit vote was announced, and part of that fear is fear of american agricultural products. the big issue that's dominating the idea of trade with the u.s. is that chlorinated chicken might be introduced into uk markets. now, whenever you talk to a brit who's been over in america, you ask them if they ever died of chlorinated chicken, they tend to say no, no, i survived. but there's a lot of fearmongering going on about american agricultural products. hopefully a mutual recognition deal will help to alleviate those fears. stuart: then again, ian, very
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few americans have ever eaten a pork pie. maybe it should stay that way. i don't know. i'm just being pejorative. thank you for joining us. i'm sure you will be back with more news on brexit and boris. good to see you. thanks very much. futures show that we are going to be up, way up. of course, it will not knock out last friday's drop but we are going to be up about 200 for the dow which opens in 11 minutes. it's going to be a headline-driven market with the china trade war, the main focus for investors. so how does this standoff play politically? i repeat, politically, in a 2020 election? we will try to sort that out for you. we are waiting for the president and that joint news conference with emmanuel macron. it will probably move the market and you will see it, guaranteed.
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it's tsleep numberbiggest sale360 smart bed.n the you can adjust your comfort on both sides your sleep number setting. can it help us fall asleep faster? yes, by gently warming your feet. but can it help keep us asleep? absolutely, it intelligently senses your movements and automatically adjusts to keep you both effortlessly comfortable. so you can really promise better sleep. not promise... prove. and now, all beds are on sale! save 50% on the 360 sleep number limited edition smart bed. plus 0% interest for 24 months on all beds. only for a limited time. stuart: it's clearly going to be a very big day coming up for your money. futures, seven minutes before the opening of the market, show a nice gain but we will not wipe out all of friday's loss. next case, let's turn to politics. couple of gaffes from joe biden on the campaign trail this weekend. tell me more. ashley: well, mr. biden was in new hampshire doing some stumping there, then he stopped
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to talk to a gaggle of reporters. remember, new hampshire. take a listen to what he said. >> i've been here a number of times. last time i think was all the way back in 2014. i love this place. look, what's not to like about vermont in terms of the beauty of it and what a neat town. i mean, this is sort of a scenic, beautiful town. ashley: vermont is beautiful and scenic but he was again in keane, new hampshire. you can see the reporters' faces. stuart: it's not a huge mistake. ashley: other candidates do it as well. beto o'rourke did it just recently. stuart: but it's another mistake. another gaffe. ashley: one of a series. stuart: yes, one of a series. didn't he also suggest to talk about the assassination of the president at some point? ashley: let's not forget mlk and jfk, he said they were assassinated in the '70s. stuart: the '60s. i've got to say, it's going to be tough for joe biden. ashley: it's a long way from
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here to next november. there are questions being asked whether he has the stamina. stuart: the media is constantly on gaffe-watch. that's what it amounts to. really quite extraordinary stuff. all right. we are coming up to the opening of the markets. this is a very, very important day. big drop last friday. today, we've got the aftermath of the g7 meeting and a presidential news conference that is coming up at some point in the very, very near future. by the way, you are going to see that. at the moment, the dow points upwards of 200 points. the nasdaq upwards of 50 odd points. that's how it looks at the moment. we are going to take you to the opening bell on wall street after this. great riches will find you when liberty mutual customizes your car insurance, so you only pay for what you need.
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stuart: we are getting real close to the opening bell. you will hear it ringing and when they stop ringing it, the trading will begin. this is going to be a very, very big day. first of all, you've got a whopping great big drop for the dow last friday on china trade news. remember, some remarkably blunt tweets from the president about he's going to do this, that and the other with all kinds of tariffs on china. that went down badly and the market was down over 600 points for the dow industrials. now here we are on monday morning, following the g7 meeting, following some
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relatively calming thoughts, calming news on china trade, and we are going to be up when this market starts to move. then we will be waiting for the president's press conference. it is monday morning, 9:30 eastern time. there you have it. off we go, down 623 last friday, up 226, 224, right from the get-go here on this monday morning. okay. so the dow is up. .8%. how about the s&p? what's going on there? i'm sure it's up. what's the amount? there you go. it's up .8%, 22 points higher. quickly to the nasdaq, please. how's that doing? that is up over 1%. nice gain. that tells me technology is doing well this morning. gold up just a couple of bucks, but it's at $1,539 per ounce. bitcoin, where's that? still around $10,000 a coin. the price of oil going up a bit. it is now at $55 a barrel.
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big day. we need lots of help. jeff sica is here, michelle mckinnon is here and ashley webster and i will carry you through this day. michelle, first of all, this is a headline-driven market. >> absolutely. stuart: i would not touch it with a ten-foot pole no matter what the president's saying. >> yes, what the president will say is going to be very important but let's face it. this is not a political comment. you've got trump going for re-election in 2020. i think he's going to do everything in his power to have a strong economy and i think he's a little nervous, right, with those headlines and how the market reacted on friday and he looks at the market very closely so if i was particularly a long-term investor i would take advantage of opportunities like we saw on friday. you have to. stuart: would jeff sica take opportunities of the selloff -- >> no, first of all, the selloff was not nearly enough for me to be interested in this market. second, this has become one of the most, in 25 years of watching markets, this has become one of the most absurd
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directional decisions that investors have to make, where basically you're deciding whether or not there is a trade war, whether or not phone calls actually took place, whether there's an agreement, whether there's not an agreement. right now, investors are getting very confused and this is a trader's market. i would step back and let things fall in line before i decided what to do. >> if he gets a trade deal the market movers and you miss the opportunity. >> that's true, but on the other hand, if he doesn't get a trade deal, then we are going to get a big leg down. stuart: look at this. we are two minutes in, the nasdaq is up 1.1%. ashley: that's on the chinese headlines. also, i think the president will do a deal with macron on the french digital tax issue which would, you know, put a huge tax on the big u.s. firms doing business in france. if he gets that done, which he could announce in his press conference, that's the speculation, there is rumors that's going to be done, that's another big boost for tech companies.
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stuart: it is a joint press conference between our president and president macron of france. that is coming up at some point in the very near future. when it starts, you will see it. could i have a check on interest rates? look at this. i want to show you the yield on the ten-year treasury, 1.53%. and the 30-year treasury, 2.02%. when we started out this morning, i'm talking about 4:00 or 5:00 eastern time this morning, the ten-year yield was way down at 1.44%. money was flowing into our country. i'm not talking now about an inversion of the yield curve at this moment. the two and the ten are not inverted. this is a real story about money from all over the world coming into america. that's my point. >> that's exactly true. we are a safe haven, money is -- we are a safer haven in the bond market, money is flowing in, but what we have to look at is what is the bond market telling us here. the bond market is telling us
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there's a great deal of concern in the equity markets which is why the yields keep declining. investors are not going to be thrilled about a 1.5 ten-year yield for too much longer. >> but we have been here before. stuart: i think rates are coming down because we offer interest. europe and japan do not. so the money -- >> they're negative. stuart: prices go up, yields go down. we're not being forced down in yield by the threat of a recession. we are being forced down in yield by foreign money. >> absolutely. you have the fed propping up the front end and you've got demand, you know, bringing down the back end. therefore, you have a flat yield curve. it doesn't concern me much. stuart: whenever we talk china, you have to talk big tech because they are affected directly by these trade talks. you're looking at financials at the moment. now look at big tech. got it. michelle, look at apple going up $4. >> big move. stuart: is that the big tech you would buy now? >> i would. because a couple things. number one, apple has, what,
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$200 billion in cash. they are definitely flush with cash. they have tremendous free cash flow. number two, they are trading on a much lower valuation than the general market. number three, i still feel like you are going to get some type of china trade deal because both parties need it. therefore i think china's a bargain here. stuart: you don't care how big a china trade deal, just a deal? >> i think a deal. stuart: a deal is good? would you buy any of the big techs now? >> i would not buy. as a matter of fact, i would be selling apple right now. i think apple has the most to lose if this trade deal doesn't come to fruition. i also think that -- there was a reason for tim cook to have the meeting with president trump last week. he is very very concerned. apple is a consumer-driven company. and the consumer will be affected if this ends badly. stuart: i just want to take time out for one second, folks, to talk about hong kong. a shot was fired. live fire by the hong kong police, one shot was fired. this was saturday night.
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it was a flat-out battle with police officers pointing guns at the protesters. i've got to believe that that's on xi jinping's mind big-time as he negotiates and talks with the president about a trade deal. hold that thought. keep it in the background for now. big action in hong kong and a general strike there one week from today. now we're up 280 on the dow. all the major averages are up 1% or better. the s&p is up about .8%. retailers, they have got a stake in the action here. the retailers this morning are up. look at walmart, $111 a share. macy's at $15. macy's and nordstrom, department stores, both of them up. kohl's a little bit on the downside. attention, disney super fans. target is putting 25 disney shops in its stores this fall. remember, "frozen 2" hits theaters in november. "star wars" in december. disney's at $133 this morning.
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target's at $104. blockbusters, both. >> they are going to take over the world. stuart: tesla is going to raise prices this friday in china. that is earlier than planned. and maybe raise prices again in december. the stock's up a buck at $213. remember, tesla's stock is down more than 30%, 2019. this calendar year. big drop. amgen buying otezla from celgene. guess what they're paying? $13 billion. they are paying cash. as a sidebar, the deal paved the way for bristol-myers to complete its purchase of celgene. that shows you how much money there is in treating psoriasis. take a look at gold. holding steady at $1540 per ounce. you have been cautious on the market. do you ever put any money in gold at all? >> i have been invested in gold for probably 15 years. now i think it's probably a
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better time. stuart: who knew? now he tells us. >> well, i have endured some real ups and downs. >> real ups and downs. stuart: are you buying gold mining shares or a gold etf? are you getting the gold coins? >> i'm buying the gold coins. stuart: really. >> yeah. stuart: why would jeff sic aa d that? >> first of all, i do not trust governments and the way they handle currency. i think gold is a very good hedge against currency manipulation. what i see happening now with governments -- the more the governments mess up, the more gold becomes attractive to me. i think the fact that gold has had the year it's had, it's doing a lot better, it's a very very good hedge because now what we are seeing is last couple weeks ago, president trump accused china of being a currency manipulator and we have ultra-low interest rates, there's a good reason to look to put money into something that's not going to be as subject to what's happening.
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stuart: i just don't believe jeff sica walks around with a bunch of gold coins in his pocket. what is it? you buy gold mining shares or retailers? which is it? >> i'm buying coin. i actually am buying coin. >> there are so many things you have to worry about when you buy gold. stuart: not to mention the security. >> that's a whole other story. stuart: it is. >> that's why would walk around with it. stuart: quick look at google. the parent of course is alphabet. google reportedly putting new rules on workers discussing or debating politics. tell me more. ashley: back to the open debate free-wheeling internal culture at these big tech companies. yeah, google put out a memo friday to its staffers saying they should avoid spending time huddling, debating matters unrelated to their jobs and please refrain from name-calling. apparently this all follows what they say is a year of increased incivility on the internal platform. it's very interesting. some people quit because of
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their anti-conservative bias. some quit because they don't want their companies doing business with the government, the pentagon, do no evil kind of mantra, if you like. now we have this. they like to call these places campuses. they are becoming like campuses in the outside world where you can't say anything if the majority of people don't agree with you. stuart: google's stock unaffected. look at that. 9:40 eastern time. michelle, jeff, thank you for being with us. appreciate it. checking the big board, you are almost on hold now. okay. you are up 220 points, got it. the market's on hold waiting for the presidential press conference. that will move this market because you have no idea what the president's going to say or what president macron of france will say. better be aware of that. there's the podium. the two presidents will be appearing there at some point in the very near future. stay there, please.
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we will bring that to you as soon as it starts. dow up 200.
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stuart: looks like we are hold onning holding on to a 200 point gain until the president and french president macron hold their joint news conference. you will hear it as soon as it starts. check big tech. now, the hill is reporting that french and american negotiators have reached a deal on the french tech tax. we may hear more about that from the trump/macron presser coming up shortly. all the big techs are up very nicely this morning. not quite as high as they were a
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few minutes ago but all on the upside. green all over the big techs. get to china trade, please. bring in the chief global strategist at horizon investments. let's talk politics for a second, because i know you are at the intersection of money and politics. how does this china standoff play in the 2020 elections? >> well, i think if it's not resolved and it's looking much better, obviously, this morning, if it's not resolved, we could have more choppy days like last friday. i really thought last friday was deeply unnerving for trump and his inner circle. trump i think was honest when he said he was having second thoughts. he knows it could affect his re-election. conversely, if we do get a deal, he's the favorite to win re-election. stuart: i saw some of the presidential candidates over the weekend talk about the chaos that the president has encouraged with the china standoff. they were very much down on the president, very very critical of him. but i put it to you, most americans would surely rather
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have president trump negotiating with china than bernie sanders or elizabeth warren or mayor pete or virtually any of the other candidates. >> although ironically, chuck schumer is a big supporter of trump on trade issues, as are sanders and many of the other democrats. look, i think we are close to a trifecta. the tech deal that we are going to get with macron, the resumption of serious talks and i think we are not talking a lot about it, i think the nafta replacement with canada and mexico is going to get ratified this fall. that's a lot of progress considering all the doom and gloom that dominated over the last several weeks. stuart: put china trade on one side for a moment. you've got a deal with japan, a proposed deal after brexit with the brits, the germans are talking car tariffs, merkel and trump, and you've got this usmca which has to be put to a vote in the fall. you're right, absent the china deal, it seems like we're lining
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up partners on trade to isolate china, the rogue state on trade. what do you say about that? >> well, if we do, and china realizes it's hurting them more than us, i think this is a very positive story for continued decent growth in the u.s. and maybe we're not going to grow at 3% but i think 2.25%, you look at the atlanta fed's forecast, they are at 2.2% growth for this quarter. that's not a recession. i don't see a recession in sight. stuart: do you think the president is taking out an insurance policy when he talks about a big middle class tax cut if he wins in 2020, and at the same time, he's jawboning the fed to get those rates down, give me some insurance here? >> i have a half-serious theory that it's august. in august we always have trial balloons. we had an august about five years ago where the big news story was shark bites. it's the silly season. so all these trial balloons are going to get floated. most of them will get shot down.
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but i think he is prepared if the economy should suddenly weaken to take some action. stuart: i think the president is emerging as striding across the world stage and dominating it. am i going too far? >> no. i think he has -- he's exceeded expectations in france over the last 48 hours. i think the other big story is the dominance by the markets. the markets said no more rate hikes. we didn't get any. we started to get rate cuts. the markets have said end this trade war and i think they got the message on friday. i think we can't overlook the enormous influence the markets have right now. stuart: we used to say bond traders were the masters of the universe. i guess that's still in play, isn't it? >> indeed it is. yep. stuart: greg, thanks very much for joining us on a very big day. your input is always appreciated. thank you. >> thanks, stuart. stuart: just crossing this morning, g7 countries will send money to amazon countries, brazil and a couple of others, to fight these devastating fires. how much? ashley: $20 million to set up
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this fund, as you say to countries surrounding the amazon. there has been 77,000 fires in brazil so far this year. half of those in the amazon region. this is the dry season there now. this is not unusual. but it's the high number of fires that have really taken the eye, as you can see, creating blackouts in some towns, turning midday into midnight because of the smoke. stuart: addressed it with $20 million? ashley: $20 million and an initiative to try and protect the rain forest. stuart: et cetera. let's see, we are still going to be up but the market has pulled back a little. a few minutes ago we were going to be up 200 points. now we are going to be up about -- well, we are up about 150. of course, we are still waiting for that presidential news conference. bring it to you as soon as it happens. back after this. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation?
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stuart: you may wonder why we went from a 200 point gain to a 150 point gain. apparently there was that inversion again, that is, the yield on the two-year was higher than the ten-year, not supposed to be that way, then it re-noninverted. that's why we have gone back up to a 173 point gain. i have just been told in my ear
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we have gone inverted again. so we are teetering on the edge of inversion and the market's taking it in stride, frankly. that's the way we are. i want to get back to hong kong. i may have a bee in my bonnet but this is a big deal. would you look at that. that is a violent protest. those are police officers pointing guns at demonstrators. there you see it very very clearly. that is a gun. it's got live ammunition in it. one shot was fired into the air to scare the demonstrators away. christian whiton, former state department official, on the phone. this gets me very worried, christian. things are spilling out of control and there is a general strike next monday in hong kong. what do you make of all of this? >> there does seem to be an elevated level of energy, stuart, and as you pointed out you have this iconic picture now, the police officer pointed his revolver, and people are likening it to the tank photo of
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tiananmen square of 1989 where a solo individual stood up against a column of tanks. you are also seeing an increase in chinese propaganda. looking at the peoples daily, trying to put out their point of view. more ominously, beijing changed its rhetoric a little recently, basically saying this is a revolution, invoking revolutions like the rose revolution in georgia in 2003 or the revolution in ukraine so it seems to be a heightened state of energy. stuart: wouldn't this be a real problem which xi jinping has to take account of, not necessarily solve, but it's got to be a very big issue for him. wouldn't it make him go make nice towards the president on trade if he's got this going on in his backyard? our viewers at the moment are seeing a flat-out riot. >> you would think that he would want to fix some of the issues and get them off his agenda.
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you have the economy which is slowing down, slowest rate since 1992, i believe and probably slower still because their statistics are unreliable. he has hong kong and he has the trade war. the chinese have gotten away with so much for so long in negotiating with western officials, u.s. officials, they seem to think they can blow past this. but this mythologized chinese ability to strategize, say we are playing checkers and they are playing chess and it doesn't seem to be true. it seems xi jinping has painted himself in a corner because it will probably mean the end of foreign investment in china for many, many years. stuart: again, we are running that video right now. viewers are watching a police officer with a gun pointed right at the demonstrators and that is new. that is an escalation. that is a big deal. christian, many thanks. we appreciate you being with us. important day. thanks very much. totally different subject and it's important.
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in illinois, we may have what may be the first vaping death in america. ashley: yeah. we don't know the name, the age or anything about it but as you say, they say it could very well be the first vaping-related death. someone with severe lung disease. the cdc also says that last week, there were at least 193 people in 22 states that suffered from a respiratory illness after vaping. that number has been dramatically rising and of course, the cdc is now on the case. but that's all we know from illinois. but there's no doubt there has been more and more people going to the hospital with what are suspected vaping issues. stuart: ash, thank you very much indeed. two big stories and we're on them for you. president trump is about to hold a joint news conference with emanuel macron in france. that likely will move the market. also, the market itself. right now, we're up 175 points. a very small rebound from friday's big drop, but just you
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stuart: 10:00, eastern time. this is a very active day. the president has held a series of one-on-one meetings with world leaders. germany's angela merkel, india's modi, britain's boris johnson and soon france's emmanuel macron. trade talks and deals with all of them. there is china. fast moving developments there too. they are ready to talk says the president. they called us ties, said the president. it's a fluid situation. china calls for calm negotiations but it is not clear whether they are ready to take on the two big issues of
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intellectual property theft and forced technology transfers. when the conference starts we'll take you right there. the market is up 205 points. big gains across the s&p and nasdaq as well. interest rates, here we go. what with very got 1.532 on the 10-year,. that shows you money is in the united states. they keep part of your money. you come here with your money, driving interest rates down. got to tell but the developments in hong kong. that is the backdrop to xi xinping's dilemma. we keep showing you this, this is important. police drew their guns saturday night, pointed at protesters. one shot reportedly fired. it became an all-out fight twine protesters and riot police.
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if xi allows a bloody crack down, trade talks are in jeopardy. if kay cost continues in hong kong, they use a vital trade hub. general strike is called september 2nd, which is our labor day. second hour of "varney & company" starts right now. ♪ stuart: let's get straight at this. keith fitz, money map chief investment officer. do you see this, these development with china, do you see this as genuine progress? what do you say? >> yes, stuart, this is very, very serious because china thinks in strategic deception. we think in terms of results. what that means, all of sudden the light bulb gone off in beijing with trump with agreements with germany, india, france. china is saying uh-oh, perhaps
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we miscalculated. that they don't need us. that is the big fear right now. stuart: what about the deal with japan. you're close with japan, how big of a deal have we negotiated? >> it is too early to put a huge, i can't put the calculus together exactly this is significant, japan saying we have partnership, we have alliance. we'll grow our countries together. this is very threatening to china because it didn't think something like that was possible. stuart: big picture for a moment, keith, you see all the developments with britain, japan, germany, maybe usmca, maybe with china, you see all of this as a very positive backdrop to the stock market, right? >> yes, i do. because again, if traders can get certainty to any of the actions with all of the trillions of dollars they have to mess with on a daily basis, we are going to see a rally that is a true rip your face off situation. anybody on the sidelines is going to regret it if we get a
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deal. stuart: rip your face off situation. well, well, keith that is, sharp-edged i would call that. i want to talk to you about hong kong. you have seen what happened there over the weekend. we showed police officers pointing guns at protesters. one shot was reportedly fire. would you say this, no deal with china at all if there is a bloody crackdown in xi's backyard what do you say? >> very hard to imagine, that is the case. this is terrifying this is tianamen square 2.0. it will not take much to have a accidental shot kill a protester. if that happens, xi xinping will go from trade to territorial as sig nations, and the rest of the world will dump all over him. stuart: does that mean xi xinping will likely play ball with the president if he has this problem in his backyard? >> has every incentive to do that quickly because hong kong, believe it or not will be a
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bigger issue issue on his plate. he cannot afford to his territorial assignations. stuart: you buy apple, is that correct? >> apple and google. i like them very much because a value is not being assigned at properly. stuart: you like them regardless what happens with china trade? or you like them because they have got something going on with china trade? >> well apple certainly has something going on with the china trade. google has other investments as does apple. we'll see a pivot with personal information. facebook, they have their heads screwed on straight. there is a lot of value to be had for investors. stuart: one more you like will buy raytheon. explain your case, please. >> absolutely. regardless what happens with all of china, with all of the
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defense contracts, the defense industry itself is growing. that is an unfortunate thing. i never thought personally i would raise my boys in a world where that kind of priority would be assigned. but from investment standpoint, i don't think you will find a better alternative. stuart: i just don't know how traders play this market. you could have a trump tweet any moment which would throw you off course. you have a news conference coming up in just a few minutes we believe. that could throw you off course. ordinary people like myself, and our viewers, how on earth are we supposed to trade this? the word is, you don't, do you? >> here's the thing. you actually, individual investors stuart, this is the beauty of this market, individual investors have the advantage because professional traders have to move money no matter what. as a individual i want to buy a quality company with quality products with real earnings and real executives and you can intelligently use big down days
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to average in to rely on yield. you don't have to play the games traders have to do. big skiing else, buy low. stuart: you could be hit in the teeth with a errant trump tweet that you might reverse two days later? there is always that risk. if not trump it will be xi xinping, macron, boris johnson. if you focus on companies that matter, making unstoppable, must-have products with he talk about over time, odds are over time you will not only do well but very well stuart. i would not let this kind of stuff bother me. stuart: the market has been open 37 minutes. have you bought anything today? >> no, i've been sitting in the chair getting ready for my speech with you. stuart: that is good, diplomatic answer, young man, i have to say. keith fitz, don't stay there, go out and trade something. keith, we appreciate it. see you soon.
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>> you bet. stuart: stay tuned, everybody, that joint press conference is coming up with france's president emmanuel macron, that is from sunday, by the way, as soon as it starts believe me, we will take you there. president trump says he wants a very big trade deal with britain. once britain leaves the european union. we have details. plus, nigel farage on the show in the 11:00 hour. will throw his support behind boris to get oust it of the european union? that is a key question. we will ask him. we're keeping a close eye on hong kong. we'll show you that video all over again. police officers drew their guns and pointed at the demonstrators. that is escalation. all right. we'll keep you tuned just in case that flares up again. it is 10:00 at night. democratic presidential candidate andrew yang released details on his climate plan. we will tell you all about it after this.
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stuart: the big board, dow jones industrial average, is moving up and down over the last 40 odd minutes. it moves up and down in line with the yield curve inversion. when it is inverted the market pulls back. when it is no longer inverted, the market goes back to a 200 point gain. it is not inverted at the moment. we're waiting for it to go back to a 200 point gain. hasn't got there yet. we do have andrew yang, a presidential candidate, democrat presidential candidate. we have his climate crisis policy. ashley: every candidate has to put one of these out, right? and it is all, the similar themes. mr. yang calling from a
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transition away from fossil fuels to renewable energy. we must build a sustainable world he says, and america must lead with innovation and imagination and technology to accomplish that. this is interesting. he says we need to move our people to higher ground? stuart: what? ashley: natural disasters and other effects of climate change are causing damage and death. we need to adapt. on to reverse the damage. one thing that is not on how much the it will cost. it is just ideas. stuart: are americans prepared to sacrifice now in order to change the temperature of the planet by one degree one hundred years hence. ashley: i think not. stuart: that is loser for the democrats. that is my opinion. president trump, again here is another opinion, i'm full of them. dominating the headlines at g7 conference. rachel bovard, conservative policy institute. the mainstream media critical of president trump during this trip. do you think he is doing a good
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job? >> i think he is. he is doing what he said he would do when he got there. i think they have been critical of him in the recent hours for not attending the g7 climate summit. to your point, did he really need to? particle pollution is down in the united states six times below global levels. so all those other countries sitting at the table all have higher climate pollution than we do. we're seven times lower than china. we continue along that path. those are new numbers from the epa. stuart: we didn't hear that. that's news to america, even though it was put out by our own epa. nobody has been told about that. it never makes it, does it. by the way, g7 meeting, climate did not do very well, did it? it kind of took a back seat if you ask me. what is your impression? >> i do think it took a back seat. it's a dog whistle to liberal elitists care about climate
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change but are not prepared to give up jets and private travel. he is getting a the love criticism for the democrats but this is the same democratic party that emphasizes climate change, offered a chance to put a single issue debate forward just on climate change, it was voted down by the democrat national committee that gives you an idea they want to demagogue climate change, they don't want to spend an hour talking about it where facts might get in the way. stuart: i don't want to get a discussion whether there is global warming, whether human beings are responsible. that is a debate for another time, but seems to me that americans are not prepared to sacrifice now for a perceived climate gain at some point in the future. every time the democrats come up with these measures that, whatever they're going to do, the cost of whatever they're going to do, it disappears from the political landscape, right? >> that's right. i think case in point the paris climate accords that president obama put us in, never got massive amount of support across the country, americans saw what
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president trump did. this was a huge cost on americans to the tune of 400,000 jobs, half of which would be in manufacturing. for very marginal benefit and no enforcement at all on the two biggest polluters which are china and india. until everybody else is ready to step up to the table, it will not be just the united states that puts ourselves out there for 30,000 extra dollars a year per family. stuart: let me get back to the issue of trade. do you think americans are prepared to sacrifice on trade because, in favor of, deal with china before the 2020 elections? >> i think it is most evident they are in some sectors. you see farmers being most affected by trump's tariff war, actually supporting trump's trade war in an iowa state university poll. 57% of farmers said they support it. i think because it goes back to again something president trump picked up on.
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americans support free trade, but they don't support free trade just about america playing by the rules and no one else. they see trump trying to rebalance the equation to get us to a deal where we are playing by the rules. so is everyone else. that takes leverage and negotiation. that is what you're seeing right now. i do think americans support that evident. they want to see free trade. they don't want to see it done on the backs of american workers. president trump picked up on that. stuart: rachel, appreciate you joining us on a very big, important day. >> my pleasure. stuart: i have to walk away from that and go into google. they have new rules for employees discussing politics at work. ashley: they're limiting amount of discussion. i wonder if it was going on from there. basically what google said, they put out a memo friday, staffers should quote, avoid spending time hotly debating matters not related to their jobs and refrain from name-calling which clearly was going on. apparently there was a year's
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worth of what they say increased incivility on the internal platforms of google, because google and big tech companies, stu, they always pride themselves on this open debate, freewheeling internal culture that they believe is very, you know, positive, and should be done. apparently you can't have freewheeling internal debate at google because it gets too heated. they clamp down on it. if they talk to each other, if it gets heated, designated managers to come in, calm them down. >> what ever happened to say what you think. ashley: you can't have opposing views. like college campuses, big technical puss become the same way. stuart: i find it pathetic. adult americans can't handle free speech. news flash. ashley: we need someone to jump in. stuart: i have advisory about the joint news conference that is coming up. there is the podium, left-hand side there. what i'm going to tell us is, it might be a freewheeling press
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conference. we have advisories on these things. they advise news organization what is to expect. we're expecting a trade, we're expecting a press conference that could go on for a significant length of time. ashley: president loves that format. let's not forget that. stuart: he does. ashley: he revels in it. stuart: he loves talking to emmanuel macron as well. ashley: he does. stuart: they both have a sense of humor. macron usually plays along. ashley: he does. stuart: what we're offering here is not just a prolonged press conference, we're offering entertainment. that's a fact. >> should be fascinating. stuart: 90 points up for the dow industrials. we're about the inversion or not. 88 points up. art laffer coming up. we'll be there. ♪ ♪
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stuart: all right. we're now at 122 point gain. the markets hovering backwards and forwards depending whether the yield curve is inverted or not. the truth at this moment the yield curve is dead flat. yield on two year, virtually the same on the yield on 10-year.
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inversion yes or no hovers backwards and forwards. the market is up 121 points. quickly on the flight to safety, gold, for example, up eight bucks at 1545. bitcoin is not considered a flight to safety at this moment, maybe last week, but not now. it is down 96 bucks. 10,300 is your price. again have to remind you, very soon, we'll be taking you to a podium where we will have president trump and emmanuel macron holding that joint press conference, okay? i want to bring in art laffer, former reagan economic advisor. art, big picture now, we had lots of developments this morning on the china trade deal talks, all rest of it, is it okay to be optimistic at this point from what we have heard about china trade talks? are you optimistic? >> yes. i am optimistic. i believe very much in the president. i believe he is a great negotiator. and he does all of these things all of the time which keep me
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off-guard, off balance, et cetera. bottom line i think he will get a good trade deal with china. i think we'll have a great trade deal with japan. what he is doing with the trade stuff, while it confuses me, baffles me, terrifies me, i think he will do a good job. we'll get something coming out of it good for the country, good for china too. stuart: here is the take i've been delivering all morning which is, president trump is arranging one-on-one trade deals. japan, germany, britain. and, that seems to be lining up people to go against china, the rogue trading state. is it that what he is doing, lining up allies? >> i hope not. because, you know, i don't like to think of china as a rogue trading state. china has lots of problems in the trading structure. that is very true, stuart. the things that is the president is proposing, what they agreed to before, china reneged on would help china as much as the u.s. free trade is good for everyone, not just for one party
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or the other. it is not i win, you lose, or you win, i lose, it is a win-win or lose-lose and the united states has huge amounts to gain from free trade with china and so does china have huge amounts to gain from free trade with the u.s. it's a perfect match made in heaven. if only we had free trade with each other. trump has always been freer trade, my view of the world, i think he will get a great deal with china and i think china will thank him immensely what he has done. stuart: this is something that will make you happy. "the hill" is reporting that chinese and american negotiators, i take that back. the french and american negotiators have agreed on some form of compromise on this french tech tax. it involves tech companies, american tech companies, getting some kind of a refund if they overpaid, overtaxed. i don't want to get into the weeds on this, i'm sure you are happy to hear it, art? >> i'm delighted.
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this is the type of stuff that trump is great at. you know, can you imagine any other president doing that, challenging domestic authority of taxation in a country with that type of thing? trump did it, got it back. got it where it should be. that is what you want from a good president, a good ceo of the united states. he is doing jobs great. he does -- all the time but it comes out pretty well in the end. all this stuff -- stuart: what do you mean he scares you? >> when i hear him say, get them, we'll knock -- it scares me. trade is not something you want to be in a war about. trade is good for everyone. when he does the negotiations and all that stuff, i have no idea what his fallback position is or what he will ultimately end up with. it scares me like everyone else. when the markets collapse by 622 points in one day, stuart that is terrifying. stuart: the president is piling on the pressure, piling on pressure to xi xinping. and xi xinping, the chinese
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leader, he has to look over his shoulder, he must be horrified what he saw in hong kong over the weekend. shots fired, police drew their guns with live ammunition, water cannon. it was a riot. now isn't that, puts, isn't that putting pressure on xi xinping to be nice to trump? i mean he has got to settle hong kong somehow or another. why not nice to trump in the meantime? >> you should be nice to trump all the time, not just because you have pressure on you. threatening someone, often doesn't make it work out well. you know, whenever you have, whenever fight both always lose. you may lose less than the guy you beat up there is no upside to fighting n this thing we need agreements there, that get rid of all inexits there that don't help china. china stealing intellectual property is not good for china, it is not good for the u.s., it is not good for anyone and they steal off each other by the way, just so you know it.
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it is not discriminatory against the usa. stop it already. don't make these transfers, do it right. every chinese person in the negotiation knows the u.s. position is right. they know that. they just worry about the political backlash in china but they know it is good for china, good for chinese growth. we have been china's friend since the very beginning. i was the first american in modern times to go to china. i went in 1970 with george schultz and john erhlichman. i was prepared to hate china. i fell in love with china. china is a per partner going forward. stuart: i did not know that. >> what a free-trade agreement would be for the us and get them out of the e.u. and get them to growth and prosperity. stuart: hold on. i didn't know you had been in china 1970, because at that time, virtually no werner went there. it was the end of
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china's cultural revolution. what was china like back then. >> china was the poorest place on earth. i went on air force two with george schultz and john erhlichman. i was a staffer. todd holland was the advance man and the janet who was the secretary there we went there i got all the briefings about china there. i turned from being very hostile to china to being really pro-china. i was in the first one. it was very exciting. i was domestic head in the white house at that time for china. and china's a natural ally of ours. in the boxer rebellion we were very much on china. all of this stuff, we have a great relationship with china. it is the perfect match. trump is going to bring it to fruition. i think it will be the biggest boon for the u.s. and china imaginable. i don't see any reason why china and u.s. can't march arm in arm together to make for a better world rather than fight each other. fighting each other doesn't pay off in the long run.
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we need to be partners. huh? stuart: let's talk the market for a second, okay? >> yes. stuart: it seems to me that this question of the inverted yield curve not that important at this moment. talk of tax cuts way down the road. not that important at this moment. the ball of wax, the only game in town this, is my opinion, i want to hear what you got to say, the only game in town for this stock market at this point is china trade. what do you say? >> i think it is very much china trade. i wouldn't say the only game in town. powell should lower the discount rate quite substantially. the five-year yield is below the discount rate or right even wit. that just makes no sense. for the last 10 years, the five-year has been way above the discount rate. xi needs to move the discount rate to keep regular sloped yield curve. that is what needs to be done. you're right, china is much more important than that. japan's a big deal too, stuart.
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but again, china is much more important than japan. those two other ones are not small. if we do a good deal with china, we get the discount rate down, if we get the deal with japan, this place is off to the moon. stuart: the u.s. -- >> we'll have the best 10-year future imaginable. i'm very excited about the u.s. prospects. we're the only country now doing well because of our tax bill. remember, how we talked about about the tax bill on this show. if it weren't for that tax bill, stuart, we would be in the sinkhole just like europe, just like the rest of the world is. we're not because of that tax bill. trump has done a great job on this economy. stuart: i can't believe what is happening in europe, actually. they're printing money like going out of style. negative interest rates. you have been too long away from europe. i lived in germany as a kid. i went to school at the university of munich. europeans have nothing but ways of creating destruction of good things. stuart: you went to school in germany. >> the eu was such a mistake.
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stuart: you went to school in germany? >> i went to university of munich when i was a kid. stuart: when you were a kid, what was that, '50s or '60s? >> 1920s. i got the alumni award from university of munich, from the mayor of munich. i loved the place. i loved it. but europeans don't look the way we do to the future. they don't smile and beam and love things. they look for the dark side. you know, this stuff is stuff for optimism. stuart: do you think they will ever cut taxes in germany? >> when gerhard, he did it. if if you saw what he did. i wrote a paper, if you look at germany, you look at government
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spending as share of gdp rising and german growth rates stopped. they have destroyed all their future in germany. they were the ones that developed the -- if you remember. they have destroyed it as well. they gave birth to it and killed it. it is really sad what the germans have done to themselves, the rest of the eu the rest of the eu is no great shakes. stuart: this is true. >> great tin will be great because you're getting out of it. you will do a free strayed -- trade deal. i want ireland to join us, get out of the eu and join us and we'll have the most wonderful place on earth. are you with me on that? stuart: absolutely with you on that. i was taking a little direction from the producers. we understand that president trump and emanuel, don't worry. you're still with us. >> want you to cut me off right now. stuart: you're on a roll, son. >> too much coffee. stuart: you're on a roll. good stuff.
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but the president we are advised will be appearing on that podium relatively quickly. we don't know exactly when. >> can i ask you a question, you and ashley? stuart: yeah. >> am i wrong about a free trade deal between the uk and u.s.? wouldn't that -- stuart: art, cut the mic. we have to go. here is the president. here we go. >> translator: president, first madam, first lady, ladies and gentlemen, following this g7 meeting that we have just held, we've been discussing for two days now and are going to report back to you, but first of all i would like to thank president trump and all the heads of state and governments present here for the extremely productive work and very productive discussions
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that we've had since saturday evening together. there was a lot of nervousness at the outset, a lot of expectations, a lot of tensions and we had a lot of conflicts and i can say what we were really keen on was to convey a positive and joint message following our discussions, discussions on several topics. we have not negotiated a very long texas we promised. there is one page declaration. there are a lot of different annexes to it. there is just one page, that covers some key items that that were addressed. we have decided to hold this joint conference. i'm going to give the floor to
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president trump and of course president trump and the first lady will then proceed with their own press conference to the american press where other discussions will take place, but i wanted to sum up different items which we have agreed and the topics which we made headway biodiversity, digital economy, amongst others. so we wanted to hold this joint conference together because next year it is the united states of america that will hold the g7 summit and we'll pass it on to president trump. that is why we're together. i wanted to say for the last two days we have worked a lot together on several common points. we have a lot of things in common but one thing we have in common with president trump is they don't like to waste our time and we like to achieve concrete results and provide
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momentum to the work and as soon as president trump arrived, we set for one-to-one lunch that we had together. i think that was the most productive and interesting conversation that we've had together. and from that point onward, we set the pace and kept the ball rolling to be as efficient as possible to the very end. a few things are expected from both countries. as far as iran is concerned, president trump and myself had, have had discussions in the last few weeks, particularly the last few days. we agreed iran needs to comply with its nuclear obligations and have responsible behavior and work with us. there are two very clear things that matter to us. iran should never have nuclear weapons and it should not threaten the stability of the
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region. france has taken a lot of different initiatives and i have always informed president trump on them to be able to get technical means to move forward because the decisions that the u.s. have taken in the last few months have a lot of pressure, put us in a situation where it is indeed necessary to improve the security situation of the region. so we, coordinate the our efforts, we reached a decision to bring together the foreign ministers, foreign minister of iran, had a meeting with the french foreign minister and road map of has sort of been said but nothing is absolutely set in stone and we will have to move ahead together to find an outcome. this morning president rouhani said that he was prepared to meet with any political leader who, in the interests of his country. and that is what i told minister
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zarif. this is what i mentioned to president rouhani as well. if he were to agree with a meeting with president trump, my conviction was an agreement can be met. we know the terms, know the objectives, but we have to sit around the table and make that happen. so i hope that in the next few weeks, based on our discussions we will be able to achieve missing, that you just mentioned, president rouhani and president trump, and myself and the partners who have a role to play in negotiations would be fully involved in the negotiations. i think this meeting is very important. in the last few days, clarified the situation, a lot of messages have been conveyed, a lot of work is done with the ministers. i would like to thank our
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ministers who have been totally involved in these discussions and set the stage for the discussions and agreements. i want to be very cautious and very modest. i think this will put an end to escalation and reaching and being able to reach a solution. the discussions we had on saturday afternoon and saturday dinner, have been very fruitful and our purpose is to insure the stability of the region. the idea to make sure that iran doesn't get a nuclear weapon and we have more visibility in the long term. as far as trade is concerned we shared a lot of analysis and a lot of observations. we won't go into the details of that but i think we can say our discussions have clarified what is legitimate and what the united states feels is an unfair situation. we have international rules that
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govern international trade and in this one-page document we said it is very good to have a single organization that governs international trade but so far this connected body has not been very efficient in erasing trade barriers. it has not been sufficient enough in solving problems when they occur. it has not been sufficient enough protecting intellectual property of our industries. discussions are underway currently in particular between president trump and president xi and we have seen even in, just, the recent, very recent past that an agreement can be reached. so we wanted to reaffirm our desire to change rules that govern international trade and revamp them so that, no one is dealt with unfairly. so our work is protected and so
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that the situation of the past is put to an end. this is something that they need to work on together. now, there is a lot of nervousness because of misunderstanding because of some very powerful economic players said, what about this digital tax that france has imposed? well, we have reached a very good agreement and once again through the solid work that has been done upstream by ministers really helped us to make progress in our economies we have very unfair situation where some players don't pay taxes so there is unfair competition with other players. these large, more multinational players that don't pay taxes which leads to significant instability of the economic front. is this fair? it is not fair. of course we are pushing for international rules on this even. at the european level 10 countries, france, italy, even
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the uk is getting ready to do so, decided to do something at the national level but it is not against any company in particular. it is just to solve the problem, from in fact a lot of french companies are to be impacted by this tax. and some of you have probably heard me say, a few months ago, that, there is only to find a solution and the aim ultimately is to find an agreement internationally by 2020 to revamp international tax systems within the framework of the oecd, to combat harmful trade practices which are harmful to the u.s. economy. through this digital tax, on this digital tax we have a lot financial aas well and provisions and agreements to overcome the hurdles. we'll work on the bilateral and multilateral basis to find a solution together.
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and the today the international tax exists digital companies france will do away with the national tax system. everything already paid under the french tax system will be reimbursed. so the idea is that we need to find joint agreements in order to address joint international problems and the situation right now is very negative. the international tax system definitely needs to be modernized. i think we will work together in a surge of cooperation on this. as to libya, syria, north korea, hong kong, you will see in the one-page document we have made considerable headway in a spirit of unity and we have also reached, done some significant work in efforts where where the
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amazon region has been concerned. there are relationships with president bolsonaro, we have a taken a very ambitious initiative that the president presented this morning discussed with all the heads of state and governments in the region as as we wished and as president trump wished as well. i don't want to go into the details. i want to highlight a few things that we just mentioned. we work together, hand in hand, with president trump over these two days. during this g7, i would like to thank all of my colleagues for this, we managed to reach convergence at unprecedented levels on several issues. we'll continue this work in the weeks and months to follow with a lot of energy and north korea and knows how strongly president trump is committed to this issue. there is also the agreement with china and we're going to work
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hand in hand on all of the different issues. i would like to thank you, president trump, for your involvement in the last couple of days. i would like to thank the first lady by your side, who has been very active, side by side with my own spouse, and in our country. she knows how popular she is in our country. president trump will be hosting the g7 summit next year. so i will give him the floor so that he can tell us how you intend to organize the g7. i will be there by your side, with the same will and same determination and same desire for unity. thank you. [applause] >> i want to thank you very much. more importantly i want to come up here to say that, because the job that president macron and and your wife, by the way, who is a great lady, bridge --
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bridget, spent a spectacular amount of time with melania, with some of the folks that came in and some of the wives came in and they had a beautiful tour of the area but it is a great area. i want to thank you, mr. president, for the successful job you did. this there was a great unity. sometimes i read a bit of false reporting. i will tell you that we were, we would have stayed for another hour, nobody wanted to leave. we were accomplishing a lot but i think more importantly we were getting along very well. 7 countries, it really was the g7 and you have been a spectacular leader on this. i want to thank you, i want to thank the great country of france. thank you very much. [applause] excuse me.
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go ahead. >> i want to say we will take two questions on each side. afterward i will say good-bye to my president trump. for you to follow up. >> if we like we could do two each. both leave the room. would you prefer that? i just don't want to have the president of france standing here while i'm answering these absolutely wonderful questions, okay? [laughter]. so why don't we start with a question for france. >> for questions about g7 and u.s.-franco relations. >> emanuel will have his own press conference after this. so that will be fine. go ahead. two france, john. reporter: thank you. of course host country, they should go first. president macron, china was not on the official agenda but it was certainly a big part of the
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discussions here at the g7. are you concerned that the trade war that exists now between the united states and china could harm the global economy? if you are, did you talk to president trump about that? are you also, at the same time, concerned that if china's current trade practices go unchecked, a decade from now we could be in a very terrible situation? >> translator: on this subject we obviously had lengthy discussions. during the session the world economy yesterday morning. on both subjects. the discussions underway between china and the united states of america obviously, as we clearly see, create uncertainty which disturbs markets and investors. during the negotiations it will create tensions which is the case of any discussion. we saw this on different stock markets which we're familiar.
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now the question is, what the result of these discussions will be and that's why we considered that it was so important an agreement to be found between the two greatest economic powers in the world. president trump clearly showed us his willingness to arrive at an agreement a few hours ago, a very positive and encouraging message that could be distilled from this. we see things are moving. our deep wish is for an agreement to be found between the united states and china concerning trade because i think that would be positive for everyone. neither the united states nor china is economically or industrially naive. it has to be a balanced agreement that would be good for everyone. and we will be vigilant to see it is good for the whole world. in that context our different parameters will be taken on board and that was the subject of our discussion. what is bad for the world
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economy sun certainty and the quicker an agreement is arrived that, quicker uncertainty will dissipate. that is what we discussed yesterday. that is the american president's wish. in terms of trade practices, i said this earlier for me, the most effective way forward and the most strategic way forward in settling our trade relations with china is to develop trade but also to insure that that trade is part of international trade rules. the problems we sometimes had, we're very familiar with this with the chinese economy, a major economy where there has been lots of investment from the united states. european countries, canada and japan. the problem is respecting intellectual property. dealing with excess capacity. which sometimes unbalances some world markets.
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and, the ability to deal rapidly with conflicts we may have, with unfair situations. now we are obliged to see that when this type of trade happens outside of wto rules, things don't work very well. we're not properly protected. when following wto rules, the wto rules as they presently exist have not allowed us to be protected on this subject. what we decided yesterday morning to accelerate with a very realistic agenda, saying we'll change the rules of free trade, so everyone can have fair and free trade, balanced trade. the subjects i have mentioned sometimes bad for our economies can be settled in an international framework which wish profoundly to change and we and our different ministers of the different contexts we're putting forward will share these political goals. to my way of thinking, the way to deal with the practices you have mentioned, certainly the
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positive agreements that will be arrived at, also the renewal of our international trade rules as we said yesterday morning. reporter: president trump, are you satisfied with how far the proposed wto reforms will go. >>? >> no i'm not. reporter: you spoke about the need for that. >> we're getting there, john, i will answer that. reporter: do you believe china is sincere what it said this morning? >> yes. reporter: or do you think they're trying to calm the markets to play for time, because our sister network, fox business network, are told by chinese sources they have no plans to going back where they were in terms of negotiations this spring on intellectual property, forced technology transfer, ownership. >> we'll see, john. reporter: do you trust they are sincere? >> i do. i think they want to make a deal very badly. that was elevated last night, very late into the night, i saw
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an alert, what you call breaking news, the vice chairman, not talking about somebody from china at a low level, the vice chairman of china came out, that he wants to see a deal made. he wants it to be made under calm conditions, using the word calm. i agree with him on that. china has taken a very hard hit over the last number of months. they have lost three million jobs. it will soon be much more than three million jobs. their chain is breaking. the chain is breaking up like known's seen before. once that happens, it is very hard to put it back together you understand. i think they very much want to make a deal. the longer they wait the harder it is to be put back, if it can be put back at all. i believe they want to do a deal. the tariffs have hit them very hard in a very short period of time. the united states will have collected over $100 billion of tariffs. i say it again, reporters fail to, media fail to acknowledge it, but if you look at the goods coming in from china, we're
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talking about china, not other countries, if you look at the goods, they have a power that others don't have, but that power is only good for so long. they have manipulated their currency. they devalued their currency and they put a lot of cash into the system. because of that the prices have not gone up, or if they have gone up it has been very little, because they want to keep people working f prices go up they will not be able to keep people working. they cannot compete. it's a brilliant market, a brilliant, brilliant market, the world market. a lot of markets are brilliant. frankly i think china cannot, maybe they can, maybe they can't, i don't think they can do that and i think they're very smart. i think president xi is a great leader who happens to be a brilliant man and he can't lose 3 million jobs in a very short period of time and that is going to be magnified many times over. it is going to break down the chinese system of trade. and he can't do that. so when you say, do you think
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they want to, maybe they want to, maybe they don't, but i think they want to make a deal. i'm not sure they have a choice. i don't say that as a threat. i don't think they have a choice. meantime the united states, which has never collected 10 cents from china, will in fairly short period of time be over $100 billion in tariffs. so i think they want to make a deal. very badly. >> translator: second question. to mr. president, you have just declared that you created the conditions for a meeting between president trump and president rouhani. does that mean, france for instance, might be a mediator in that meeting? concretely what did you discuss in terms of that possible agreement with iran? a question for mr. trump, are you ready to lift or soften american sanctions on iranian
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oil exports? would you be ready to meet president rouhani? thank you. the. >> translator: on the first question, the terms of the discussion are quite simple. an agreement was signed in 2015. on july 14th. call it the jcpoa, and that agreement set forth guaranties for the international community, including significance of that agreement saying, iran would not longer enrich uranium over a certain period of time. i'm simply frying this you about up to 2025, in exchange for reopening many economic sectors and massive investments, largely made by the united states. that agreement had a two-fold advantage, stability and security, and also reopening the economic sector which is good for iran.
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the agreement also had drawbacks and shortcomings. french negotiators in 2015 were the most determined and france was the country that hesitated most to sign this agreement because we considered we needed as many guaranties as possible. president trump during his campaign, made a commitment to those who voted for him to be more demanding an tougher he considered this agreement was insufficient which caused him to today, because of the sanctions made by president trump, the iranian economy is having serious consequences and a serious slowdown and that situation very clearly is the aspect, we might say the positive side of things, from one standpoint it's creating pressure and therefore the necessary conditions to improve the terms of an agreement. on the other hand, it's leading to reactions in iran, who are saying we signed this agreement, but those who have signed it are not respecting its terms, so
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they are starting to enrich uranium and the risk they are going to go further still and leave the jcpoa. where are we going with this? we need to be sure that iran will never get a nuclear weapon and that there will be no flareups in the region so what we discussed very concretely was to see how we could improve very considerably or really, in fact, build a new nuclear agreement with iran. president trump was very clear saying that we would need a much longer time frame for it, that there needed to be surveillance of many more sites and this is how we can build a much further-reaching agreement in terms of our security demands. and on the other hand, we need to convince the iranians to go in that direction and we can do that if we give them economic compensation of some form. if we make some movement in terms of lines of credit or
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reopening certain economic sectors. i can't tell you today publicly more about this because anything i will tell you in detail will jeopardize the conversations we're going to have, but this is basically what we're discussing, on the basis of our initiative there's also a japanese initiative, i'm talking in total transparency with the president but we agreed on a strategic goal and i want us to go further in this framework and to make proposals. at a given point in time, there will have to be a meeting between the american and the iranian president and i would wish that in coming weeks, such a meeting take place. france will play a role together with the other signatories who are our partners, but after that, we will need to create the necessary conditions because we'll have the necessary visibility for this agreement to be signed and sealed, and for this meeting between the two presidents to take place. so i would rather talk about concerted initiatives and
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exchanges rather than mediation, because at the end of the day, we have constant exchanges with president trump. i share his goals, sometimes we say we don't agree on methods, but i want to get there. i want to have an agreement. and i think there's been a true change. this morning, president rouhani showed himself to be open to this meeting happening, and president trump has been saying for weeks that he's been demanding, he's been tough, he's put forward sanctions but i'm ready to have a meeting to make a deal, and i think that we're making progress. i want this meeting to happen and i want there to be an agreement between the united states and iran and france will play the role it's meant to play together with the united kingdom, with germany and with all of the other signatory powers and the permanent members of the security council. >> iran is a country that is not the same country that it was two and a half years ago when i came into office. iran was the number one state of terror throughout the world. there were 18 sites of confliction in my first week
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when i spoke with the folks at the pentagon, including lots of generals and lots of other military experts, 18 sites of confliction, meaning 18 sites of big problems. every one of them was backed by iran or in some cases, actually using iranian soldiers but at a minimum, iranian wealth. much of it given in the ridiculous deal where they were given $150 billion plus $1.8 billion in cash and they used that money for some bad purposes. with that being said, i think that iran is a country of tremendous potential. we're not looking for leadership change. we're not looking for that kind of change. this country has been through that many times before. that doesn't work. we're looking for no nuclear weapons, no ballistic missiles and a longer period of time. very simple. we can have it done in a very short period of time. and i really believe that iran can be a great nation. i'd like to see that happen.
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but they can't have nuclear weapons. okay? thank you. excuse me? reporter: would you agree to [ inaudible ]? >> if the circumstances were correct or right, i would certainly agree to that. but in the meantime, they have to be good players. you understand what that means. and they can't do what they were saying they're going to do because if they do that, they're going to be met with really very violent force. we have no choice. so i think they're going to be good. i really think they would like -- by the way, president macron told me every step that he was making yesterday. a lot of you said oh, he came in -- he told me long before he came in what was happening, what was -- i didn't think it was appropriate to meet yesterday, too soon, and it would have to be worked out first, but president macron told me exactly what was happening, who was coming, what time they were coming, where they were going to meet, and after the meeting, he told me exactly what happened. i think he had a very positive
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meeting. prime minister abe of japan also a large purchaser of oil from iran, he was also very much involved and you know, look, he knows everybody there so he was a very positive force but i have to tell you, the president's done an excellent job and we're going to see how it all turns out. maybe it works, maybe it doesn't. i say it all the time about everything. maybe it works and maybe it doesn't. but i'll tell you what, we made a ridiculous deal. we gave them $150 billion, gave them $1.8 billion and we got nothing. we got nothing. by the way, that agreement was so short-term that it expires in a very short period of time. with a country, you don't make a deal that short. countries last for long times. and you don't do short-term deals especially when you're paying that kind of money. so i have good feelings about iran. i have good feelings that it will work. i know many iranians living in new york city. i have many friends from iran. they're incredible people.
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incredible people. so the last thing i'd like to see is a big problem, but we have to do what we have to do. okay? go ahead, please. no, no. you first. go ahead. no, no. go ahead. yes. reporter: thank you. president macron, did you seek president trump's permission before you invited foreign minist minist minister zharif or did you simply inform him he was coming? >> translator: to be very clear, we are part of jcpoa. we decided to remain in the deal. so we are very much interested by the situation as a sovereign country. that's why we want the different parties to move. on the other side as president trump made it very clear over the summer, we never spoke on
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behalf of other countries. we just tried to see if we can find an agreement with different countries. so we took an initiative this summer to make a proposal, a technical one. i got reaction from iran, on friday, friday morning. after the discussion we had at the g7 dinner on saturday evening, i thought that it was very clear about where we can go together. so the day after, i decided to invite as friends minister zharif so i informed, before making it, i informed president trump that it was my idea, not to involve the united states, not to say it is on behalf of you, but to say as friends i think it would be a good idea to ask him to go back and try to
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negotia negotiate. so i did it on my own. i informed before making it, president trump was informed about the solution -- the situation, sorry, and the idea for me was in case of such a mo move, an important move and appropriate solutions perhaps to have meetings, not at president trump's level because president trump's level is president rouhani. this is a french initiative made by clear information of the u.s. president before, information as well of the europeans and -- to monitor the situation. >> i have to say, the jcpoa was
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a bad deal. should not have been entered into. lot of things could have happened that would have been much different. they're allowed to test ballistic missiles. you're not allowed to go to various sites to check and some of the sites are the most obvious sites for the creation or the making of nuclear weapons, and those things have to be changed, and other things have to be changed, and i will tell you, i have very good feelings about it. i think that we're going to do something. it may not be immediately but i think ultimately we're going to do something. as i said, iran is a much different country than it was two and a half years ago. and we can get that back and i would encourage it. i actually had friends years ago, many years ago, they were in the real estate business and they were in iran, and they were building houses and building housing and building office buildings and apartment houses, and they did very well.
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they made a lot of money. and to this day, they're not exactly the youngest developers anymore but i tell you, they were young when they were over there, they made a lot of money and they love the people and they loved what was going on, and it's a country with tremendous potential. i also say that, by the way, with respect to north korea. kim jong-un, who i have gotten to know extremely well, first lady has gotten to know kim jong-un and i think she would agree with me, he is a man with a country that has tremendous potential. you're in between china, russia and south korea, people want to get to south korea, they got to get there somehow if they're going to do anything other than essentially fly, they want to go through so railroads and everything else, so many things want to happen there, i think that north korea has tremendous economic potential and i think that kim jong-un sees that he
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would be the leader and i think he sees the tremendous potent l potential. with respect to iran, same thing. iran is incredible people and incredible country potentially. location that's a little rough neighborhood but eventually it's going to be a beautiful neighborhood. i think that it's going to be -- i think it's going to work out. i really believe that those countries that went into the original deal, that more and more are agreeing with what i did but i think those countries are going to be saying thank you some day. i hope they're going to be saying, including france, including the president, because i think we did the right thing. i know we did the right thing. if for no other reason it's just too short. it's almost expiring, you think about it. and somebody said well, you go and make an extension. no, no. they're great negotiators. look at what they did to get the deal. look at what they did to john kerry and to president obama. look what happened.
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they're bringing planeloads of cash, planeloads, big planes, 757s, boeing 757s coming in loaded up with cash. what kind of a deal is that? so i think a lot of good things are going to happen and i just want to say this, because i have spoken a lot with the president this last two and a half days. we have never had a better relationship. we had a lunch that lasted for quite awhile that many of you got to see, it was the two of us. no staff, no anything. he wasn't trying to impress his people, i wasn't trying to impress his people. we were just trying to impress each other and i'll tell you what, it was the best period of time we've ever had and we accomplished a lot. i don't mean just gee whiz, wasn't that nice. he's a very capable man, he's done a great job for france, he did an incredible job for the g7 and i just want to thank you and you go ahead to your news conference and very special. this was a very special, very
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unified two and a half days and i want to thank you for it. thank you. >> thank you. [ applause ] stuart: okay. we are about to -- there's a transfer going on here. president macron is off to his own news conference and president trump remains. let me listen for a second here. [ speaking in french ] >> translator: i don't want to give anything away but we saw your wife, the first lady, drink a glass of french wine yesterday so can you perhaps give up on your threat to put sanctions on french wine because if we understood correctly, you have arrived as an agreement on taxing digital firms. could you confirm that there has
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been an agreement between you and france on taxing digital firms? >> i can confirm the first lady loved your french wine, okay? all right? she loved your french wine. so thank you very much. that's fine. stuart: now, the first part of the press conference, there were two points we need to make. i think the president of france has just said good-bye to president trump. point number one, the president was asked is china sincere about this latest development and the president said yes, they're sincere. they want to make a deal very badly. that's what he said about china. and president trump is talking again. we'll listen. >> jonathan. come on up. stuart: all right. well, temporarily lost the feed. we'll get it back. we want to find out what our president is saying. there he is. listen. >> we'll start now. please sit down. thank you. thank you.
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please sit down. thank you very much. reporter: you have recently been saying that china wants a deal but you're not necessarily ready for a deal, and you like the tariff revenue that is coming in. are you now ready to make a deal? >> only if it's a fair deal and a good deal for the united states. otherwise, i will not make a deal. we have billions and billions coming in and i think we're going to get there. i do. i believe it more strongly now than i would have believed it awhile ago. we're going to get there. we're going to have a really -- we'll have a fair deal but remember this. when you say fair, china's been taking out of this country 500 plus billion dollars a year for many, many years. many, many years. it was time to stop. as a private person, i used to talk about it. it's one of the reasons i'm president. and we're in a great position, our country's doing well, our unemployment numbers are the lowest they've been in over 50 years, our unemployment numbers
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for african americans, asian, for hispanic, are the best they've ever been. historic numbers. we're in a very strong position. our consumers are strong. walmart just announced numbers that are mind-boggling numbers. that's a great poll right there. that's the ultimate poll, how retailers are doing, how certain companies are doing. so we're doing very well. and i think that -- i think we're going to make a deal with china and i think we'll probably eventually make a deal with iran, too. reporter: why are you optimistic they will caynihange their beha? >> it's not a question of behavior. i think they want to make a deal. i think they should make a deal. i think if they don't make a deal it's very bad for china. i appreciate the fact they came out very late last night and said they want to make a deal, they want it to be under calm circumstances. it was a little different kind of a statement. i thought it was a beautiful statement. i thought it indicated a lot. go ahead. reporter: thank you, mr. president. >> here we go. reporter: i actually have a question for you on next year's
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g7 summit but can i clarify something you said? you mentioned earlier today -- >> one question. go ahead. reporter: let me do the clarification. then i will get to the question. >> no, no. one question. reporter: i'm trying to understand what specifically you heard from china and on next year's g7 you today dropped several hints about miami, about doral and hosting next year's g7 at your property. what reassurances if any can you give the american people that you are not looking to profit off the presidency? >> well, i'll tell you what, i have spent and i think i will, in a combination of loss and opportunity, probably it will cost me anywhere from $3 billion to $5 billion to be president and the only thing i care about is this country. couldn't care less. otherwise i wouldn't have done it. people have asked me what do you think it costs, and between opportunity not doing -- i used to get a lot of money to make speeches. now i make speeches all the time. know what i get? zippo and that's good. i did a lot of great jobs and great deals i don't do anymore. i don't want to do them because
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the deals i'm making are great deals for the country and that's going to be much more important. doral happens to be within miami, it's a city, it's a wonderful place, it's a very very successful area of florida. it's very importantly only five minutes from the airport. the airport's right next door. it's a big international airport, one of the biggest in the world. everybody that's going, all of these people with all of their big entourages come, it's set up -- and by the way, my people looked at 12 sites, all good, but some were two hours from an airport, some were four hours. i mean, it was so far away. some didn't allow this or didn't allow that. with doral, we have a series of magnificent buildings, we call them bungalows, they each hold from 50 to 70 very luxurious rooms with magnificent views. we have incredible conference rooms, incredible restaurants. it's like such a natural. we wouldn't even have to do the work that they did here and
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they've done a beautiful job. they have really done a beautiful job. and what we have also is miami. and we have many hundreds of acres so that in terms of parking, in terms of all of the things that you need, the ballrooms are among the biggest in florida and the best, it's brand new, and they want -- my people wanted it. from my standpoint, i'm not going to make any money. in my opinion, i'm not going to make any money. i don't want to make money. i don't care about making money. if i wanted to make money, i wouldn't worry about $3 billion to $5 billion because i mean, at some point, we will detail that and we'll show but i think it's just a great place to be. i think having it in miami is fantastic, really fantastic. having it at that particular place, because of the way it's set up, each country can have their own villa or their own bungalow, and the bungalows, when i say they have a lot of units in them so i think it just works out well. when my people came back, they
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took tours, they went to different places, i won't mention places but you'll have a list because they're going to give a presentation on it fairly soon, they went to places all over the country and they came back and said this is where we would like to be. we had military people doing it, we had secret service people doing it, we had people that really understand what it's about. it's not about me. it's about getting the right location. i think it's very important. jonathan? go ahead, jonathan. reporter: thank you, mr. president. president macron said he would like to see talks between you and president rouhani within weeks. does that sound realistic to you? could you see -- >> it does. reporter: -- yourself in talks with -- >> well, i don't know the gentleman. i think i know him a little bit just by watching over the last number of years what's happened. tell you one thing, he's a great negotiator. but i think he's going to want to meet. i think iran wants to get this situation straightened out. now, is that based on fact or based on gut? that's based on gut, but they want to get this situation
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straightened out and they are really hurting badly. their inflation as you know, because i see you reporting on it, their inflation is through the roof. the economy has tanked entirely. the sanctions are absolutely hurting them horribly. i don't want to see that. i don't want to see that. they're great people. i don't want to see that. but we can't let them have a nuclear weapon. can't let it happen. so i think that there's a really good chance we will meet. reporter: thank you, mr. president. another followup from what the president of france said. he said that there might be a need for compensation to iran. would you, given all the criticism you have made of the jcpoa and the money that they got, be open to giving iran compensation if it met some of the criteria you might have? >> no. when he's talking in terms of compensation, they are out of money and they need a short-term letter of credit or loan. no, we're not paying. we don't pay.
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but they may need some money to get them over a very rough patch and if they do need money, and it would be secured by oil, which to me is great security, they have a lot of oil, but it's security. we are really talking about a letter of credit -- reporter: from the u.s. or -- >> it would be from numerous countries. numerous countries. and it comes back. it would expire, it would be paid back immediately. and very quickly. yes, go ahead, please. go ahead. yes. reporter: thank you very much, mr. president. now -- >> just left. prime minister abe, good man. great man. reporter: okay. now, the u.s. and japan have an agreement in principle which you said is a tremendous trade deal for the united states. >> and for japan. i must say.
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reporter: so are you still considering imposing section 232 tariffs on japan's auto exports to the united states on national security grounds? >> not at this moment. no. not at this moment. it's one of the reasons we made the deal but no, not at this moment. it's something i could do at a later date if i wanted to but we're not looking at that. we just want to be treated fairly. japan has had a tremendous trade surplus with the united states for many many years. long before i came here. i'll tell you something, we are transforming our country. we are taking these horrible one-sided foolish very dumb stupid, if you like to use that word because it's so descriptive, we are taking these trade deals that are so bad and making good solid deals out of them, and that's transforming our country. that will be transformative and very exciting, i think, for our country. very very exciting. please, go ahead. reporter: thank you, mr. president.
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>> well, i didn't actually say -- i took the woman behind you. why don't we do her first. you have been asking a lot of questions all day long. reporter: thanks, mr. president. >> don't say i don't give you access. right? go ahead. reporter: thanks, mr. president. why do you think it's appropriate to invite russia to the g7 given that they have meddled in the 2016 election and are you worried that if russia does come to the g7, that it might hurt you politically because it's only going to be a couple months before the 2020 election? >> i don't care politically. i really don't. lot of people don't understand this. i ran one election and i won. happened to be for president. i don't care politically. i'm going to run another election, i think i'm winning based on polls that we have seen. whether i win or not, i have to do the right thing. so i don't do things for political reasons. is it good, probably not. maybe it is. a lot of people are smart. a lot of people say having russia which is a power, having them inside the room is better than having them outside the room. by the way, there were numerous
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people during the g7 that felt that way. and we didn't take a vote or anything but we did discuss it. my inclination is to say yes, they should be in. they were -- really it was -- i'm not blaming him, but a lot of bad things happened with president putin and president obama. one of the things that happened was as you know, what happened with a very big area, a very, very big and important area in the middle east where the red line was drawn and then president obama decided that he was not going to do anything about it. you can't draw red lines in the sand, you just can't do it, and the other was in ukraine having to do with a certain section of ukraine that you know very well where it was sort of taken away from president obama. not taken away from president trump. taken away from president obama. president obama was not happy that this happened because it was embarrassing to him, right. it was very embarrassing to him. and he wanted russia to be out
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of what was called the g8. and that was his determination. he was outsmarted by putin. he was outsmarted. president putin outsmarted president obama. and i can understand how president obama would feel. he wasn't happy. and they're not in for that reason. now, i'm only thinking about the world and i'm thinking about this country in terms of the g7, whether it's g7, g8. i think it would be better to have russia inside the tent than outside the tent. is it politically popular for me to say that? possibly not. i think a lot of people would agree with me, frankly, but possibly not. i do nothing for politics. i know a lot of you are going to smile at that. i do nothing for politics. i do what's right. and people like what i do but i just do what's right. if i wanted to go strictly by politics i would probably poll that and possibly i would say
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oh, gee, i don't want russia in. but i really think it's good for security of the world, it's good for the economics of the world. remember, they are building a big pipeline in europe going right up to germany. i said to angela, who i had a great relationship, but i said you know, you pay russia billions of dollars and then we defend you from russia. she said how does that work. reporter: why do you make the statement the president of russia outsmarted president obama? when other nations say they were kicked out because they very clearly annexed crimea. why do you keep repeating what is plainly a lie? >> it was annexed during president obama's term. if it was annexed during my term, i would say sorry, folks, i made a mistake, or sorry, folks. president obama was helping ukraine. crimea was annexed during his term. now, it's a very big area, very important area. russia has its submarine, that's
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where they do their submarine work and that's where they dock large and powerful submarines. not as powerful as ours and not as large as ours. but they have their submarines and president obama was pure and simply outsmarted. they took crimea during his term. that was not a good thing. it could have been stopped. could have been stopped with the right whatever. it could have been stopped. but president obama was unable to stop it and it's too bad. go ahead. reporter: as the g7 host next year, you are allowed to invite other countries to come, guest countries, even though they're not necessarily part of your group. would you consider inviting vladimir putin under those circumstances? >> i don't know that he would accept it. this is tough circumstances. he was part of g8 and all of a sudden, he's not out or he's not in. i think actually that's a pretty tough thing for him. you know, he's a proud person.
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would i invite him? i would certainly invite him. whether or not he could come psychologically, i think that's a tough thing for him to do. you have a g8, now it's a g7 and you invite the person that was thrown out really by president obama and really because he got outsmarted. president obama pure and simple and don't forget, it was not just crimea. it was the red line in the sand. obama said never violate the red line in the sand and then they went ahead and they killed many children with gas. it was terrible. and he did nothing about it. i did. i was there years later. i did something about it but i was there later. go ahead. reporter: thank you, sir. can you help us understand the timeline on the china calls? were you referring to the statement by -- >> we have had many calls. secretary mnuchin is here and you had many calls over the last 24 hours, but certainly over the
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last 48 hours. we've had many calls, not just one. this is one. these are high level calls. they want to make a deal. by the way, i think a deal's going to be made but they want to make a deal. reporter: so the chinese are saying there weren't any particular calls. >> excuse me. let me respond to something. the vice chairman of china, you get higher than that other than president xi, the vice president, the vice chairman, it's like the vice president, the vice chairman made the statement that he wants to make a deal and he wants to see it calm, he wants it all to happen. that says it there. i don't have to talk about, you know, you folks were reporting before well, we can't find any phone call. he released the statement. i didn't release it. he released the statement. reporter: but there were phone calls, sir? >> numerous calls. and not only with steve. there were calls with other people, too. just so you understand, china
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wants to make a deal. now, whether or not we make a deal, it's got to be a great deal for us. you know, i tell this to president xi who i really respect, i really -- i have great respect and i like him, too. he's a tough guy. but i have a lot of feeling for president xi. he's very outstanding in so many ways. i told him very strongly, i said look, you are starting up here and you are making $500 billion a year and stealing our intellectual property. we're down on the floor, lower than the floor. can't make a 50/50 deal. this has to be a deal that's better for us. and if it's not better, let's not do business together. i don't want to do business. forget about tariffs for a second. we are taking in tremendous amounts of money. forget that. i don't want to do business. now, when i raise and he raises, i raise and he raise raises, we never catch up. we have to balance our trading relationship at least to an extent. and they were unwilling to do
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that. and we will never have a deal if that happens but it's going to happen, because they have to have a deal. as far as phone calls are concerned, secretary of the treasury and other people have been receiving many calls. not receiving, back and forth, many calls. china wants to make a deal and if we can, we will make a deal. we'll see. reporter: mr. president, if i could ask you a little about your china strategy. president macron talked a little about incivility and the worry in the markets and around the globe about instability. >> you are talking about global economic instability? i don't consider it instability. reporter: what it comes from is the back and forth and the changing statements from yourself, so that -- >> sorry. it's the way i negotiate. reporter: my question is, is that a strategy, if the strategy is call president xi an enemy one day, then say relations are very good the next day, then you know, it's gone back and forth. >> the way i negotiate, it's done very well for me over the
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years and it's doing even better for the country. reporter: could you talk a little -- >> and i do think that -- i do think that -- look, here's the story. i have people say oh, just make a deal, make a deal. they don't have the guts. they don't have the wisdom to know that you can't continue to go on where a country is taking $500 billion, not million, $500 billion with a "b" out every single year. $500 billion. you just can't do that. somebody had to do this. this should have been done by president obama. it should have been done and by sleepy joe. it should have been done by other people. it should have been done by bush. it should have been done by clinton. double bush. should have been done. i'm doing it. let me tell you something else. north korea should have been done a long time ago. i'm doing it. i'm doing a lot of things that i shouldn't have to be doing.
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go ahead, please. reporter: president trump, you have met our new prime minister boris johnson yesterday. >> yes. reporter: you said he was the right man for the job on brexit. >> i believe that. reporter: do you think theresa may was the wrong woman and do you think that boris johnson can actually get a deal with the eu for october the 31st? >> well, theresa was unable to do the deal. i gave her my ideas as to doing the deal very early on and you possibly know what they are but i would have done that. she chose to do it her way and that didn't work out so well. i think she's a very very good person and a good woman and i really believe that boris johnson will be a great prime minister. you know, we like each other. and we had a great two and a half days. i have been waiting for him to
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be prime minister for about six years. i told him what took you so long. i think he's going to be a great prime minister and especially after spending a lot of intense time with him over the last couple of days, he's really -- he's very smart and he's very strong, and he's very enthusiastic and you know what else? he loves your country. he really loves your country. that came out maybe more than anything else. yeah, please. reporter: president trump, boris johnson is very keen on a trade deal with the usa. sound keen on it, too. some of his critics are worried you will do over the uk in that deal. >> no, no, i love the uk. i own great property in the uk. i love the uk. i have no idea how my property's doing because i don't care. i own turnberry and aberdeen and ireland, as you know, great stuff. i'll be honest with you, i think that -- i think he's going to
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just do a great job as prime minister. you know, it takes a lot. it's so many different elements to being a great prime minister and you needed him. i just think his time is right. this is the right time for boris. this is the right time for boris. yeah, please, go ahead. go ahead. right here. see? who you with, please? reporter: from itv in the uk as well. you obviously have had a good few days with president macron, who you appear to be doing business with, to use your favorite expression. after brexit, who do you think will be your more important relationship? president macron, france and the eu, or boris johnson, prime minister of the united kingdom? >> i think -- look, france is a great nation. it's being run, lot of things are happening. it's not easy, what he's doing. he's changing certain ways. it's a very hard thing to do. i won't get into it.
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i'm going to let him sell his ideas. but lot of people don't disagree with his ideas. but it's a very hard thing to do if you are a great citizen of france, you love your country but you want to do the way you have been doing it for a long time. but maybe that's not working and maybe they have to do what he has to do. i think he's going to do a fantastic job but it's very tough for him. i know how tough it is for him. he's been having a hard time. and nobody would have an easy time but i do believe he's doing the right thing. boris is different. it's a different kind of a deal. boris has to try and do something with brexit. it's very tough. i deal with the eu. the eu is, that's a very very strong group of people. they have their ideas and they're not easy to deal with, i will tell you. we are very close to making a deal, by the way, with the eu. i have to say this. we made a great deal with japan. we're very close to maybe making a deal with the eu because they don't want tariffs. it's very simple. they don't want to tax cars, mercedes-benz, bmw, they don't need a 20% or 25% tax.
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but we're very close. i think we're going to make a deal with the eu without having to go that route. i might have to go that route but maybe not. we're going to have a deal, a really fair deal, but the eu is another one we have been losing $180 billion a year for many years. that's a lot of money. how much can you take out of the piggybank? reporter: which will be more important, the eu or britain? >> both. i don't want to say which. look, i think that -- i think that we have been with -- i guess i would start off by saying england, right, with england, what's happening with england. they don't use it too much anymore. we talked about it. it was very interesting. but the united kingdom is a great, incredible place, it's an incredible nation and it's, you know, been one of our tremendous allies and another one happens to be australia. he was here also, scott. he is fantastic. in fact, we are honoring him and
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australia at the white house in a very short period of time. but i think -- excuse me? reporter: will you visit australia? >> at some point i will, yeah. at some point i will. also germany. angela asked me to visit germany. we're going to be doing that, too. i just think they're very different and they're going to be going at it for a little while but ultimately probably it works out. they may have to get out, they may not make a deal. the european union is very tough to make deals with. very very tough. just ask theresa may. reporter: thank you, mr. president. i was hoping you could clarify last year you left this summit in canada feuding with the summit host. this year things seem to be a little different. you're talking about unity. what's different, and also, as president macron said he's passing you the baton of leading this multilateral institution, you ran on the platform of america first, what is your -- now you have a mandate from the international community, what
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are you going to do with it? >> we actually had a very good meeting. i had it out with one or two people where we disagreed in terms of concept but we actually had a pretty good meeting last year. i would say that this was a big step above in terms of unity, in terms of agreement. we have really great agreement on a lot of very important subjects but last year was good also. last year was good also. i think last year might have been a little underrated. go ahead. reporter: in terms of the g7, what do you want to do with it? what's your agenda? >> we are going to do something hopefully special. we are going to build on what we have now. we built on something really good. we are going to be going in with some great unity. we really did, if there was any word for this particular meeting of seven very important countries, it was unity. i think most important of all, we got along great. we got along great. go ahead. reporter: thank you very much, mr. president. you just mentioned that chinese
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vice premier liu he said china is willing to resolve this issue through calm negotiation. >> i didn't say it. he did. reporter: yes. and will the u.s. negotiate in the same manner? >> yes. reporter: also, the other question -- >> that was an easy answer. reporter: so the u.s. will negotiate in the same manner -- >> absolutely. great respect for china. great respect for the leadership of china. absolutely. reporter: also, the other question is then you say you definitely will invite putin to join next year's summit. >> i haven't said that but i think having president putin in what was the g8, he was a member of the g8 and i heard he was a good member of the g8. having him in i think is more of an advantage. i think it's a positive for the world. i think it's a positive for russia. i think it's a big positive for russia. and it's something the group is discussing. they are discussing it.
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reporter: just a few hours ago -- >> people feel very much like me. many people. what? reporter: a few hours ago, russia's foreign minister is saying that it's not their foreign policy pursuit to return to g8. what's your reaction? >> well, you know, we'll see. i know one thing. if they were invited back, i think they would be there. if they weren't, that's okay, too. i just think they would be better inside than outside. as i said before, i really do, i think they would be an asset. i think it would be a good thing. you know, some of the things, we were going in the room and yesterday in particular we were discussing four or five matters, and russia was literally involved in all of those four or five matters. and a few of the people looked up and said you know, why aren't they here talking to us about it, what are we going to do now, go home, take it easy for a day although i'm not doing that, i don't take it easy, but we are going to go home and start calling them at the end of the week and say hey, how about this? could been in the room. we had numerous things that we were discussing, right. numerous.
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we had a lot of things that we were discussing. and it would have been very easy if russia was in the room. he was in the room, we could have solved those things. now they're just in limbo. but i have to say with all of that, very little in limbo but somebody will speak to him about some things and frankly they're not very complicated but it would be easier if they were in the room. okay? josh, go ahead. josh. reporter: mr. president, there was a significant talk at the summit about climate change. i know in the past, you have harbored skepticism of the science in climate change. what do you think the world should be doing about climate change and do you still harbor that skepticism? >> i feel that the united states has tremendous wealth. the wealth is under its feet. i've made that wealth come alive. we will soon be one of the -- we will soon be -- in fact, we are actually doing it now, exporting but we are now the number one energy producer in the world and soon, it will be by far, with a
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couple of pipelines that have not been able to get approved for many, many years, it will have a huge impact. i was able to get the largest site in the world for oil and gas, i was able to get anwar approved. ronald reagan wasn't able to do it. nobody has been able to do it. they have been trying to do it since before ronald reagan. i got it approved. we're the number one energy producer in the world. soon it will be by far the number one. it's tremendous wealth and lng is being sought after all over europe and all over the world and we have more of it than anybody else. i'm not going to lose that wealth. i'm not going to lose it on dreams, on windmills which frankly, aren't working too well. i'm not going to lose it. so josh, in a nutshell, i want the cleanest water on earth. i want the cleanest air on earth. that's what we're doing. and i'm an environmentalist. lot of people don't understand that. i have done more environmental
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impact statements probably than anybody, i can say definitely because i have done many, many, many of them, more than anybody that's ever been president or vice president or anything, even close to president, and i think i know more about the environment than most people. i want clean air, i want clean water, i want a wealthy country, i want a spectacular country with jobs, with pensions, with so many things and that's what we're getting. so i want to be very careful. at the same time, at the same time, at the same time, you weren't called -- at the same time, it's very important to me, very important to me, we have to maintain this incredible, this incredible place that we have all built. we have become a much richer country and that's a good thing, not a bad thing, because that great wealth allows us to take care of people. we can take care of people that we couldn't have taken care of in the past because of the great wealth.
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we can't let that wealth be taken away. clean air, clean water. thank you very much, everybody. i appreciate it. thank you. thank you. reporter: you didn't answer the question. stuart: the president has ended his press conference. i will bring you the highlights, the main points. on china, the president said they want to make a deal very badly. he was questioned, are you, president trump, america, ready to make a deal. he replied only if it is good for america. but the president went to great lengths to praise xi jinping, saying xi is a great leader, a brilliant man, he can't lose three million jobs. he said i'm not saying that as a threat. ashley: he also said i don't think they have a choice. he made that point several times. they have to come to the bargaining table. stuart: he said we have to balance our trading relationship. okay. that's the president and china. point number two, they talked a lot about iran. the president made the point
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that look, they can't have nukes, no ballistic missiles and a much longer range, longer term agreement and if they do all of that, we can have it done. are you ready to make a deal with iran? are you ready to meet the iranian leader? no real answer to that one. ashley: he said if the circumstances were right. maybe it works, maybe it doesn't. but i would be -- if we could set it up, then yes. stuart: my opinion is overall, real fast here, the tone was restrained but direct. he went to great lengths to say the seven countries got along very well. deirdre: i think a positive with confidence, i like his answer to one person who said oh, are you concerned about the instability in the markets that you're creating by tweeting or by commenting about trade deals with china, nope. that's the way i negotiate. stuart: okay. another point that was raised by the president is his conversations with boris johnson, the new prime minister of britain. for that, let's bring in nigel farage, who was listening to all of this and who is a player,
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you've got a stake in this game. nigel, the president is saying look, we can have a very very good trade relationship with britain after october 31st, after you are out of the european union. do you back boris johnson? do you back him up firmly? if he gets the breaits out by october 31st? >> that's a very big if. i thought president trump was in very expansive mood, very generous mood, but pretty unwavering on the things he believes in. what i found surprising is this. trump was trying to be boris's very best friend at a time when boris really needs some friends. and i felt that trump's generosity was not fully reciprocated by boris johnson. take, for example, the offer of a full trade deal and let's get it done quickly. johnson said it would take at least a year. yet john bolton said look, actually, we could do this
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sector sect or by sector so there's no reason we couldn't have this in place by christmas. yet boris is frightened. he's frightened that in a general election, jeremy corbyn and the labour party will say all boris johnson does is dance to donald trump's tune. it's a strange position boris finds himself in. on the one hand he wants to be close to america. on the other hand, electorally he's concerned about it. stuart: president trump is offering boris johnson, offering the brits a way out. once you're out of the european union, here comes america, the cavalry is riding to the rescue. that's really the way it is, isn't it? >> absolutely. truth of it is these negotiations should have been going on with america for many many months now. indeed, i said i would take my own team to america to try negotiate this. at least now we've got some conversations going. i guess the real question to all of this is will boris johnson deliver brexit in 66 days' time
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and trump said look, it's very tough to negotiate with the eu, as theresa may found out, and he was right about that. i thought somewhere in there, from president trump, was a hint that probably we are wasting our time trying to be reasonable with unreasonable people and that maybe the best way is a wto exit which of course is what i'm 100% behind. boris has said if you can't get a good deal, he will take us out with no deal but does he really mean it and that is the question in british politics today. stuart: nigel farage, that is the question and where you stand on it is important. mr. farage, thanks for joining us on an important day. we do appreciate it. somebody else who is important to this debate. lou dobbs, the host of "lou dobbs tonight" on this network. you came in early for this and we do appreciate it. i want to talk to you about china. seems to me the president was very restrained and very full of praise for xi jinping.
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he was very diplomatic. but he stuck to a hard line. are you ready to make a deal, only if it's a good deal for america. >> may i answer one thing about what nigel farage said, which he's a terrific floellow, but t real question is not what he suggested. the real question is how the british government survives with the louts they continue to put in as prime minister. stuart: louts? >> they are absolutely a slow-moving, slow-witted -- stuart: boris johnson? >> yes, my dear friend. he's a slow-witted fellow. a year to do it? i don't think -- stuart: that may have been a year to -- >> a european year. but we have to deal with 365 days. move it. show a little verve, a little leadership. the entire country is going back to sleep. stuart: you have dismissed the prime minister of great britain as a lout.
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now refer to xi jinping. >> i think he's a great chinese citizen, a man who is a representative symbol, powerful and i think certainly in his communist determination, he is, the president said just last week, the enemy. what am i to call him, a friend? today, this is a very quick-moving, see, everybody is moving here. the problem is they are still ste stealing billions of dollars a year in intellectual property and technology. they are still running deficits that have cut trillions of dollars from our economic growth in this country. they are still competing with the american worker, the middle class, the american dream, and brother, it is going to take more than some sort of sweet-smelling little document that you can call a trade deal to obviate all of that because that is now the challenge. stuart: xi jinping is right up against the wall here. >> poor baby.
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stuart: he is. they are hiking tariffs. >> why would anyone care whether or not xi jinping is in charge? he's the guy who has frustrated this country, he is absolutely a millstone around the necks of developing countries throughout asia. he's had horrific policies. stuart: yes. but -- >> by the way, look at the problems china itself has. stuart: surely the man is under great pressure. >> who cares? stuart: i don't care. i don't care. but when it comes to doing a deal, we do care about his position. >> i don't care about a deal at all unless he hits every one of the points i have just said. stuart: you are not going to get a deal. there will be no deal with china. because they are not going to give up intellectual property rights. >> intellectual property rights? the right to steal? stuart: thieving. >> then would why you want to do a deal with them at all? they already reneged on a deal. stuart: a short-term deal. >> short-term? so he doesn't have time to renege on it? stuart: no, no, an interim deal.
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>> interim -- stuart: they buy hundreds of billions of stuff from our farmers, looks good for the 2020 election, we lay off tariffs a little bit. >> are you kidding me? that's expedient, opportunistic nonsense. no way in the world you can do a short-term deal with thieves and naves and right now they are both. stuart: okay. that's the lou dobbs we like, he came in early just for this. >> i started about 4:00 this morning. stuart: no, you did not. >> no, i did not. stuart: you want to say anything about the iran thing here? >> i think it's absolutely amazing the theatrics sitting there in france, you know, the hug, the hug. that was priceless. next, the ayatollah should show up. at least get a high five. stuart: he was asked, the president was asked will you
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meet rou hapresident rouhani wi weeks. he gave no answer. i don't think the president will do that. >> they would have such a good time together. stuart: sarcasm is a low form of wit. >> as you know, i can go low. stuart: yes, sir. you can. i have known you for 40 years. i know that. now, look, no impact on the market whatsoever. >> none. it shows the allowance of the american investor. stuart: what do you mean by that? >> i mean whoever follows this blather in france, it is pure just hot air, frankly. good intentions. but it is nothing concrete, nothing that would move a dime in the international markets. stuart: mr. dobbs, we do appreciate you getting up so early. >> i know you do. as you said earlier, sarcasm is the lowest form of wit. stuart: i will be watching tonight. >> thank you so much. stuart: see if you can hold your
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fire. >> i will try to muster a little something. stuart: thanks very much for being here. appreciate it. thank you. david nicholas, president of nicholas wealth management, is with us. you say the sky is not falling. we are looking good. is that what you're saying? >> absolutely, stuart. overall for the markets, markets are trading at about 17 times forward earnings, so you know, it's not at a discount but it's certainly not overpriced. i think the trade war overall, it's affecting the global economy more than it is here at home. i was looking this morning, you know, in ten years, chinese gdp will actually surpass that of the u.s. 15 years ago, the u.s. economy was six times greater than china. so i think what we're looking at is i agree with you, stuart, i think all we're going to get if we get it is a china light deal before the elections but we're talking about fundamental transformation of the global order. that's what's at stake here with this deal. so you know, i think markets, we are going to see volatility but
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the global economy needs a trade deal more than our economy does. stuart: i think the global economy needs multiple trade deals. the global economy wants the deal with japan. we want to have a deal with the brits after they have gotten out of the european union. we want to have talks with the germans about car tariffs. we want to see usmca go through at some point. we want to have at least a relationship with china that's relatively calm, whether we get a deal or not. but what's happened at this g7 summit seems to me to be we are lining up our allies against rogue trader china. that's how i see it. i see that as very positive because the president has clearly made quite a lot of progress here. what say you? >> absolutely. i think this has been brilliantly maneuvered by the president. the media got on the president last week, saying that he was the chosen one for taking on china. but he's right. i mean, the government has bullied u.s. companies, they
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have stolen i.p., you know, this is something that i think if the u.s. which i think we're doing, can create these relationships with other nations, our dependence on china becomes less and less. i think china is starting to see that. i think nations around the world are starting to see that. so i think our administration has done as best a job as they can taking on a powerhouse like china who has dominated global growth in the last 20 years, so i think we have set our allies in place. i think we are going to get a small deal with china going into the end of the year. i think president trump needs this going into the elections but i agree with you, we are aligning i think perfectly in regards to trade going forward. stuart: david nicholas, thank you very much indeed for joining us on a very busy day. we appreciate it, sir. thank you. by the way, when that press conference started, first, it was our president with emanuel macron. when that started the dow was up about 125 points at that point. ashley: yep. stuart: president macron left to do his own press conference. president trump stayed behind. and the market was up and down
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and now after that press conference, we are up 206 points. ashley: what's interesting is the ten-year/two-year is inverted. two-year paying more than the ten-year which is interesting, right? stuart: the dow should be down but it's not. it's back up again. look, there's a lot been made of this inversion story. far more important is any progress on trade, whether it's with europe, japan and certainly with china. deirdre: i also think the inversion has to last more than a few hours. ashley: or minutes. deirdre: for us . clear signal from certain amount of investors in the bond market. i thought the press conference would move the market. i thought we would see sharp gyrations. it has been relatively positive. ashley: it didn't lose any ground, let's put it that way. stuart: the president didn't make what some might call outrageous statements. he was restrained all the way through. it was entertaining. ashley: always. always. stuart: he praised every foreign
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leader. didn't have a harsh word for anybody. ashley: iran has tremendous potential. president xi of china is a great man and a great negotiator. strong leader. there were praise for everyone. >> one interesting thing i feel, it was weakness china had why they come to the table, president trump said the supply chain issue, once the u.s. companies move a supply out of china, let's say to vietnam, if there is a deal done, not like the u.s. companies go back into china to flip the switch again. i do think there is acceptance at least on the chinese side, you know what? maybe we have play ball a little bit. this is serious. president alluded to 3 million jobs lost in china. i saw the yuan at an 11-year low. this is serious for the chinese as well. >> that's a good point. clearly xi xinping is under enormous pressure. >> you made a good point, stuart. stuart: i would say more
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pressure than our president. ashley: by far. stuart: according to the president china lost 3 million jobs since the trade fight began. we have the hong kong problem. all morning we're running video of hong kong police with guns pointed at demonstrators. we know one shot was fired. ashley: in the the air. a warning shot. stuart: that is a huge problem for xi xinping in his own backyard. you have the decline of their economy. you have got one problem after another. ashley: who cries uncle first? >> we tend to talk about china monolithic terms. there are many voices in communist party. even if xi xinping wants to make a deal, there are plenty of people that want to replace him or put arrows -- stuart: i wonder if he had problems with the politburo at home. they could well be split. not operating from a firm place. ladies and gentlemen, we appreciate you being with us throughout a interesting day.
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ash, deirdre, good to have you. quick note, during the news conference we played a sound effect over president macron t was a technical error. we apologize to our viewers and to president macron. our time is up. connell in for neil today. connell: has been very interesting today. welcome everybody to "cavuto: coast to coast," i'm connell mcshane filling in once again for neil. president trump said the chinese were sincere coming to table but can we really trust the chinese? president trump said he would under the right circumstances would be willing to meet iran. what would those circumstances look like as well? there is hong kong. the government warning after great danger following the weekend protests and a violent turn that was taken there. we'll have the latest whe

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