tv After the Bell FOX Business October 11, 2019 4:00pm-5:01pm EDT
december. >> hard for me to have different perspective. it is hard parties to get this resolved. [closing bell rings] if we can get to some sort of compromise get back investors. liz: bill studebaker. we have happy investors. big news on word of a trade deal. melissa: wild fluctuations in the final minutes of trading. all three major averages ending in the green. off session highs we saw minutes ago. as president trump says the u.s. and china have come to a very substantial phase one deal. white house officials adding there is still more work to do. questions whether the december 15th tariffs will go into effect or not. we heard conflicting reports. we'll get it straight from the horse's mouth as it were. the dow is up 317 points.
it was up 517 point early in the session. i'm melissa francis. connell: he always say happy friday. i'm connell mcshane. both s&p 500 and dow ending up more than 1%. look at apple. it is in record territory for the first time this year, $236.21. president trump's meeting going on with china's vice premier at oval office. once that wraps, we'll bring any comment from that. maybe additional comment from the president as he leaves the white house. we're all over it. >> fox business team coverage. deirdre bolton at the white house. grady trimble on the ground in chicago. deirdre, you're where all the action is. reporter: exciting here. tons of correspondent running in and out as you can imagine. i want to highlight the question of vocabularily. we heard president trump talk about a substantial phase one deal.
notice the world deal. a friend of mine who speaks mandarin, that the chinese press is transpiring what is transpiring here, as a pause, a pause in the trade war. not necessarily a deal. so just a difference perhaps of vocabularily. one worth pointing out all the same. from what we understand, from phase one, which will be written in the next three to five weeks. so this is not immediate by any stretch of the imagination. but the two sides, china and the u.s., reaching some sort of understanding on ip, on financial services and on the purchase of between 40 and $50 billion from china of u.s. agricultural products. we also heard from the treasury secretary steve mnuchin who was also in the oval office at this debriefing. saying that he has reached between the u.s. and china an agreement on foreign exchange and on currency and financial services, which he says they are almost in complete agreement right this second right now. so we did talk a little bit
earlier about you who the fact that the chinese agencies have put out this word that if a u.s. financial company wants to open on the mainland, as of january 1st, 2020, that american company will not be forced to partner in sort of jv, joint venture with a local chinese company. that is as we know, how the i.p. theft happened. so the fact that the chinese acknowledged that as well is seen as huge progress. quick note here of course. as we have been discussing, the tariffs. that were scheduled to go into place on tuesday. this coming tuesday will not happen. so they stay at the 25% level. they do not go up to the 30% level. but the december 15th tariffs at $160 billion worth of tariffs on chinese goods still up in the air according to u.s. trade rep robert lighthizer. back to you guys in the studio. melissa: thank you for that. the dow ending up for the third day in a row. we lost a lot of ground into the
close there, gerri. that was a wild ride. what happened? reporter: that was a wild ride. let me tell you all day long traders down here have been telling me, gerri, doesn't matter what kind of deal we get, we don't care, we want a piece of paper. what they got the president said it was a deal. the chinese said it's a pause in the trade war. what does that mean? i think you see that replayed in the dows 319 point close here. we came back about 180 point from the highs of the day. i have to tell you though, we do have dow winners. dow, caterpillar, 3m, industrial materials, energy, those are the three sectors trading higher. that also the tale of the tape which is that it was about trade today. so it could be this was buy on the rumor. so you saw the dow trade as high as nearly 500 points up. then sell on the news. that could be what is going on here. but i do think this is a reassessment what we really get?
will it be really meaningful? people are pouring through the comments and numbers, trying to get a sense of this. all day long people were fascinated, riveted by the headlines. at one point the main chinese trade rep, got up, left the table for five minutes. the s&p five hupp -- 500 sold off 15 points. i think we'll have more follow through as wees specially start to think about, this is plan one. what comes next? two, three, as we push on into this, how long will it take? we'll start thinking about those kind of issues. melissa, back to you. >> gerri, thank you for that. connell: let's bring it all to the market panel. ken oakley, and we're also joined by deon rabowen. almost selling on news is a predictable market reaction. up 500, down to 320 i don't know
if we read too much into that. that is what happened into the close. the bigger picture the president says we have a substantial phase one deal. the chinese apparently are saying, we have a pause in the trade war. what is your takeaway. what do we know so far? >> i don't know a whole lot so far, we're waiting to hear more. the big question what does the phase one trade deal mean. we know the october 15th tariffs will be pulled back. really what the market want is all the tariffs pulled back. we've seen the damage done from the trade war, from the tariffs, from both sides. the market want to see those come off. trade getting back to where it was. we have got that. $60 billion from the fed. got stock buybacks up 27% from last year. market is getting everything it wants. the only thing it really want to see some progress, some movement on getting all the tariffs taken off. we can go to the moon. connell: could and back, right?
ted, let me try to bring you into the room. deion said we're no inside the room. we aren't. blake burman is, our reporter. we saw deirdre bolton on the north lawn. blake is inside of the room. i know he just told us he asked a question in the room. i think it's a very good question. i think its of the president. it may have been of steve mnuchin. he said, mr. president, is this what you envisioned what you talked about what had happened? we'll see playback of this i would think in a little while but the president said to blake. you know what, it is phase one? china opened up financial services. that is a tremendous thing. then he went on to say he got ip. a lot of agreement on that. more of that will be in phase two. i get the put the question, ted, from what you know, is this what you envisioned as a face one? >> well i think, connell what happens is it becomes somewhat after bandaid as far as i can
see. i think heavier part will have to be later on. the administration they needed good news. they got news from this for sure. but i don't know. i think the jury is out on that. if you looked at volume, it was only half what it normally is. it wasn't what it quite looked like it was. connell: that's fair deion, my question whether this fades one, whatever you want to call it or pause, whether this speeds up the timetable looking at a more comprehensive deal, whether it slows down and both sides can use this to buy themselves some time and push things out past the election? how do you rethat timetable. >> you saw buy the rumor sell the news, this could have been everything you wanted. phase one deal means all the tariffs will come out or the recent three rounds of tariff will come off. got a deal on ip. there is a lot thrown around the networks.
people were talking about this and that. once we found out this will not be in there, that will not be this could be. you saw a selloff, the market want some kind of deal. it wants the tariffs to stop being accelerated. the back and forth to cool down. looks like we got that. this is definitely good news. hard to find bad news this with especially the announcement from the fed, $60 billion a month until we decide to stop. melissa: deon i want to make sure the audience understands we're hearing from what going on inside the room and hear the intonation and when we play the tape, and get it in. that is different way people take down notes in a room, versus what everybody is talking about versus how things are actually said. that could be a different impression. we saw some conflicting things coming out. how much did you read into the fact we had a head fake where all the reports were, the
chinese delegation is leaving. they cut the trip short. they're leaving, getting on the plane. no, wait, no, they're still here? made it feel like both sides as much as they're trying to protest really want to get something done. do you agree with that or no? >> absolutely. this is a trade deal both sides need to get done. you've seen the numbers. china seeing numbers in the u.s. manufacture something taking a dive. manufacture something moving in a lower direction for the manufacturing numbers. good reason for both sides to get something done. especially with president trump impeachment scandal over his head or the impeachment inquiry. hong kong situation and both sides want to get this done and move on to other issues. this is weighing on the economy and weighing heavily. i heard economists and fund managers saying this is good on the neck of the economy. if you get the boot off. we can sky and take off.
we can get is investment and cap-ex going. melissa: yeah. >> people want this taken care of one way or another. i don't think the market really cares what kind of a deal. they want some deal to get the tariffs taken off. melissa: ted, wouldn't you say this is the number one issue for markets, for the economy? there are some things going on right now. whether it's impeachment. whether it's fighting. or even the election or near term. this is really what matters. do you agree with that? >> i do agree with it. there is some sort of a myopic magnetic attraction to this whole thing. they zero in every day on it. they're either really disappointed or really excited. and every time they think something is happening, it has been a long time since one thing like you're talking about had a big impact daily on the marketplace. i think they keep looking at it. some days are exciting like today. you never know monday, they
could go right back. melissa: this is the driver without question? >> yeah. melissa: deon, do you agree with that? there are huge things going on. turkey's move into syria, reaction to that, different political stories it is almost too much to take. on this channel we come back to it every day. this moves the markets the most. do you agree with that? >> absolutely. there is no question. the question whether it is a good thing or a bad thing. i wrote this week in the "axios" markets letter, from a economist at a deutsche bank securities, if you look at fundamentals, market is completely divorced from the fundamentals. growth in the u.s. is trending down. expectations in the third and fourth quarter is trending down but the stock market keeps going up. we hope if we get some kind of a deal, that will take the boot off the leg of the economy and get that ceo confidence back and
that will allow the market to take off. this definitely is the big story in the market. whether that is fundamentally sound or not doesn't really matter. that is driving purchases because stock investors want it to happen. melissa: ted, deon, thank you for that. connell: u.s. china business council senior government director joins us with her perspective on all of this. you heard from ted and dion, at least in part what they're saying, your perspective couched from the u.s. side, phase one of a china deal? >> i think ted and dion offered a lot of good analysis. from our members perspective, this is a positive step forward. it is a huge relieve to a lot of people to have tariffs pending next week going up to 30%, to have those taken off the table for the time-being. and significant purchases for farmers that is a huge relief for farmers. they have been really hurting. consumers are certainly going to be a lot happer about this.
businesses are a lot happier. what is doesn't do, based on details we don't have yet it, doesn't fully relief uncertainty. you will still see companies holding back on future investments an sort of waiting to see what happens before they move forward with planning. that affects employment. so i hope that at the next big inflection point in mid-november, that the presidents will meet on the sidelines of apec and truly, be able to cement more progress. connell: that big meeting in chile will be a chance for two principals, xi xinping and donald trump a chance to get together face-to-face. ed, details as we know it. you mentioned no tariffs next week is a big deal. no decision made from what robert lighthizer apparently said in the oval office on the detariffs. the president made comments. we should have play back in a few minutes. the other thing, the meeting
between liu he. the president was asked about huawei. what do you make about putting issue like that off? he was asked about huawei being blacklisted. he said we'll talk about that one later. what do you make of the way that is being handled? >> just because he hasn't announced anything about huawei doesn't mean there hasn't been some sort of progress between u.s. and china on huawei. it just means it it is being dealt with separate from trade negotiations. this is appropriate. this is supposed to be separate from national security. there are a lot of people on the hill don't want to see any perception of a negotiation where national security is being compromised for the sake of a trade deal. connell: let me go back to the first point on uncertainty, you said that businesses even what we learned here.
is blake ready, guys at the white house? melissa: yes he is. connell: blake burman back on camera. take it away. reporter: you're about to hear from the president momentarily. let me set the scene from the ovals office. he described a trade deal from the united states and china which will be broken up in phases. a phase one that still needs to be as he put it papered. needs to be written down which he says could take place three, four, five weeks, which that whole process getting it on paper. then there will be a a phase two after that. which would have to be negotiated. the president also says potentially they might need a phase three. from what the president outlined and we didn't get very many specifics, what he outlined seems like a comprehensive deal at least from some of the big picture items. the president saying that financial services is going to be a big winner and part of phase one.
that there will be massive amounts of ag buys to the tune what he projected could be 40 to $50 billion. he said that i.p. theft will be covered as well. some of that will be in phase one. some of that will be in phase two. forced transfer technology as well. some of that in phase one. some of that in phase two. the president seems to suggest in this big winners would be ag and financials services with that market being broken up. foreign and currency exchange is in the deal as well the president said. i asked him, well, how can you assure the american people that what you have agreed to will eventually be implemented as there still needs to be a month or so to actually get this thing quote-unquote papered? the president said to me think it is a possibility they don't end up getting to the finish line with it but not his expectation at this time. you will hear towards the back end of this tape, connell, some pretty interesting comment from
the president he says this is not just about a trade deal. he says this is also about peace. the president making the case that tensions between the united states and china ad not been the best at one point. the president said they have planes, we have planes. they have ships, we have shins. the president said this is more than just a trade deal. he expands on that. other issues, the tariffs that were expected to go in place on tuesday will not go into iaea effect, increase of 25% on $350 billion worth of goods. the second batch of december is still tbd. my read from being in the oval office, by which the president ping-ponged back and forth between secretary mnuchin, robert lighthizer. my read that is kind of a buffer. that decision about the next
batch of tariffs on december 15th hasn't been made. seems they're giving some sort of a little bit of a leeway to potentially impose sanctions or impose tariffs, rather should this not break up. another component, connell, cut me off when you get the two minute i understand. another component is apec conference in chile in about, what is today, lost track, october 11th. about five weeks time. that is kind after target day, when potentially papering, getting all details down and fleshed out could be signed by the u.s. and china down apeck in chile. whether that is signed by robert lighthizer, steve mnuchin or president trump signing that with xi as well. either way to step back for a second. this is what the president describes the very first words, one of the first words you will
hear from him, as a substantial deal. has multiple issues what the president and his team have been talking about. the exact details? we don't know. one sheeter. i will leave you for this, what is interesting, president has been talking about, he want as big deal. he was asked, what about phases? why are you doing faces. this is just too complicated and important they have to take it piece by piece. melissa: when you were saying the apec conference date in chile was target for paper, that is phase one? >> the president said it will take three, four, five weeks to get this down on paper. connell: we're getting tape. melissa: let's listen to the president. thanks, blake. >> yep. >> hold this for china. there is nothing bigger than what we're doing with china. i think it is important that
these are questions that are asked. as you know we have the vice premier of china, one of the most respected men in all the world. we have great respect and great friendship with him and we've come to a substantial phase one deal. i will go through some of the points. then i will ask the vice prepare mere to say a few words, any comments he may have. we come to a deal pretty much subject to getting it written. it will take probably three weeks, four weeks, five weeks. as you know, we're going to be in chile together at the big summit. maybe it will be then or maybe it will be sometime around then. weave come to a deal on intellectual property, financial services, a tremendous deal for
the farmers. a purchase of from 40 to $50 billion worth of agricultural products. to show you how big that is, that would be 2 1/2, three times what china had purchased at its highest point thus far. so, they were purchasing 16 or 17 billion at the highest point. that will brought up 40 billion to 50 billion. i suggest farmers have to go immediately buy more land and get bigger tractors. they will be available at john deere and a lot of other great distributors. we're taking the purchase of agricultural products from 40 to 50 billion. meaning in that neighborhood from 40 to 50 approximately billion and what they have been doing now is about 8 billion right now. right now it's eight. the other thing i will say over the last two weeks a lot of
purchases have started going back to our farmers. and you've been doing a lot of business with us, which we appreciate very much. but it really started a few weeks ago. but they intend to go up ultimately once the agreement is signed from 40 to 50 billion. that really from, that was from a base of probably 16 billion. right now it is eight billion. the 8 billion was up from eight billion, because they had been purchasing eight billion the last couple weeks. we have the agricultural structural issues. we have some incredible progress on the structure and structural issues. bob, perhaps you could discuss that, please, on agriculture. explain the importance of these structural issues that we've solved. >> i would say probably at least as important as the purchases is the fact that we've corrected a variety of sps, what we call,
final sanitary issues that we corrected. biotechnology issues and it will be, it will be much easier now for american farmers to be able to ship to china and we've made some corrections on our side to, that will help the chinese side. >> that's been completed and pretty much done? >> that's correct. >> another big issue that we've come to conclusion on is currency foreign exchange, and steve, you want to explain that please? >> we had very good discussions with governor ye, the head of the people's bank of china, their central bank. we also had extensive discussions on financial services, opening up their markets to our financial services firms. so we have pretty much almost a complete agreement on both those issues. and as you know, mr. president, currency has been a very big concern of yours since the campaign and we have a, an agreement around transparency
into the foreign exchange markets and free markets so we're very pleased with that. >> we also made very good progress on technology transfer. we'll put some of technology transfer in phase one. phase two will start negotiations conclusions immediately after phase one and we papered it. phase one should happen pretty quickly you have intellectual property. we have an agreement on intellectual property. financial services, the banks and all of the financial services companies will be very, very happy with what we've been able to get. and i think china will be very paper because they will be served very well by these great institutions being able to go into china. and it is going to be a tremendous then for banks and for financial service companies. agricultural structural issues
tremendous for the farmers. as steve said, that is almost as good as, i disagree with him, going from 8 billion to 16 billion which was their all-time high to 40 or 50 billion. we'll be up to 40 or $50 billion of agricultural purchases which means the farmers are going to have to work a lot of over time to produce that much. that is the largest order in the history of agriculture by far, by 2 1/2 times. and technology transfer, we'll have some technology transfer in the agreement but technology transfer will largely be done here and also in phase two. so we're going to start negotiating phase two after phase one is completed and signed much there may be a phase three or we may get it done in phase two. you will either have two phases or three phases. we're very happy wit. we have great respect for china.
great respect for president xi and i want to just tell you i watched the 70th anniversary in great detail. it was an incredible event and congratulations on the 70th, everyone. that was really something, very amazing to watch. mr. lighthizer has done a terrific job. all of my time has done a fantastic job. the vice premier, i want to thank you very much for being here with your team. you're very tough negotiators. congratulations but it is something that we both realized from the beginning is very important not only for china, not only the u.s. but also for the world and every time there is a little bad news the market would go down incredibly. every time tbit of good news tht would go up incredibly. yet other news that was also very big the market just didn't really care. they just seemed to care about the deal with the usa and china
and that's okay with me. so we've had a tremendous, really negotiation. very complex negotiation. but something that is going to be great for both countries. and mr. vice premiere, would you like to say something? >> [inaudible]. [speaking in native tongue] >> translator: firstly on behalf of the chinese government we would like to extend our thanks to president trump for your congratulatory message to the 70th anniversary of the founding of the peoples republic of china. [speaking in native tongue]
>> translator: we very much agree that to get to the china-u.s. economic relationship right it's something that is good for china, for the united states and for the whole world. and we are making a lot of progress towards a positive direction. [speaking in native tongue] >> translator: over the recent days i have had very good communication with both ambassador lighthizer and secretary mnuchin an, mr. president, as you just mentioned we have made substantial progress in many fields. we are happy about it. we'll continue to make efforts. [speaking in native tongue] >> translator: thank you for
this opportunity to me to speak up. all my colleagues are happy about it. >> thank you very much. it's a great honor. i think that the currency, foreign exchange treatment that we made will be, of tremendous benefit in terms of the magnitude of it, in terms of the simplicity what we're able to do. it will make a very complicated process much simpler. i think that in itself i see as something that we've all been working for. yes, please? >> [inaudible] >> well, thank you very much. could i see that? >> of course. >> thank you very much. that is very nice, thank you very much. >> [inaudible]
>> yes. this is for guys like john, that are not good with chinese. we'll have that magnified so fast your head will spin. it is a tremendous message. thank you very much. and i have read this. i appreciate it very much. this is from president xi and we knew that we were going to have a very successful phase one. it took us a long time to get here. it is something that is going to be great for china and great for the usa. we appreciate it very much. please congratulate president xi. thank you very much. >> thank you. [reporters shouting questions] reporter: just going to clarify, the vice premier has asked and
the president approved while we go through a process of documenting this, we will not be implementing the increase of tariffs that were scheduled to go in place from 25 to 30%. reporter: [inaudible]. >> that's correct. that's correct. >> including the other ones. reporter: mr. president are we closer to the end of -- [inaudible] >> i think we're very close. i think this is a very important phase. a lot of things are here. agriculture will be completed, when we bring it up to $50 billion i project it is going to be the number. i don't know there is a question whether or not our farmers can produce that much. think they can. they are literally, i said it jokingly i mean it, they will have to buy more land, which is okay. it would be a good time to own land in iowa, nebraska, other great states. so they're very happy about it. but we're taking it from
8 billion, which it is now, there was about two or three billion. they got down pretty low. if you take the highest it ever was 16 billion, and we're bringing that to 50 billion, so we're going from 16 to 50. so anywhere between 40 and 50. that will start very soon. they have actually already started purchases. we started purchasing a lot from the farmers. we just got messages from the midwest. >> [inaudible] s. >> 20 million tons. tremendous amount of soybeans. that was over the last couple weeks. we got word of that. you know, we got word. we noticed it. it goes quickly. we see a price go up a little bit, right? it is incredible the way the market works but yes. >> [inaudible].
>> that's right. that's right. [reporters shouting questions] reporter: [inaudible] >> we're working enforcement right now. that is largely agreed to. that is one of the things in the agreement, we have an enforcement provision, they're working out the final aspects of that enforcement position. i think that is something, bob, you want to say something about that? >> sure. so we'll have a very elaborate consultation process. we have a escalation in various areas so difficulties can be resolved. both parties have allocated or have assigned various people created a structure under it and we're down to the final details what will happen if there is not a resolution. that is kind of the final issue we're putting together but both sides agree, it absolutely has to have a workable dispute settlement mechanism. we're very close to that.
reporter: -- u.s. china relations right now what kind -- u.s. and china can work together? >> i think they're great. i think the relationship in certain ways may be better than it ever has been. we've been through a very tough negotiation. there has never been a negotiation like this. in all fairness i give china tremendous credit because for 25 or 30 years, they have done very well with the u.s. and now we're doing something jointly. we're doing it in a fair manner. i give china credit for what they have done over the last 30 years, tremendous credit. i don't blame china. i blame the people representing our country. now we have a deal i think ultimately will be just fantastic for china and fantastic for the united states. [reporters shouting questions] reporter: can you clarify is this an actual deal or progress toward -- >> no, subject to get everything papered. we have agreed in principle to
just about everything i mentioned, different points. now we have to get it papered. i don't think it will be a problem getting it papered. china wants it badly. we want it also. we should be able to get that down over the next four weeks. we're going to be in chile in five weeks. so we'll see in terms of signing when it hams. we'll do a formal signing with president xi and myself. but this is just something that's very exciting. i'm very excited actually. we cover a lot more territory than agriculture. i'm very excited for the farmer because there has never been a deal of this magnitude for the american farmer. [report earths shouting questions ] >> bob, you want to talk about huawei? reporter: [inaudible]. >> i'm sorry the question is? in this agreement, we're not dealing specifically with huawei. it is not part of this agreement. that's a separate process.
reporter: mr. president -- [inaudible] >> we're going to discuss where's hunter. where is hunter, by the way? whatever happened to him? we'll discuss where is hunter, when i get out, i will stop at the helicopter. right now, in respect to china and to the vice premier we'll only ask questions -- reporter: [inaudible] >> john? reporter: mr. president can you assure the you not brought up joe biden during these negotiations? >> i have not brought up with joe biden. china can do whatever they want with respect to the bidens. china can do whatever they want with respect to 1 1/2 billion dollars going to somebody. that is up to china. but we do have to look into corruption but, no, it has not been brought up. reporter: [inaudible]. three, four, five weeks, won't fall apart as it is being
papered? >> that can happen. anything can happen. i don't think it will. we know each other very well. we've been negotiating a long time. there is possibility they're unable to get papered. i've been doing this for a long time. the vice premier has been doing it for a long time and many other deals for many, many years both of us. his people are great professionals and so am i. i think likelihood of falling apart is not so good. steve what do you say? >> i think we have a fundamental understanding on the key issues. we've gone through a significant amount of paper but there is more work to do. we will not sign an agreement unless we get and get and tell the president this is on paper. the vice premier has to go back to do some work with his team. but we made a lot of progress over the last two days. >> and most of this is also known by the people in china, by president xi. he has been following it very
closely. [reporters shouting questions] reporter: working together a year-and-a-half now. will you comment on the progress -- [inaudible] >> well i think, are you from china? >> yes, chinese news service. >> i think people of china have to be very proud of your team. they are unrelenting. i say that in a positive way but they're unrelenting. they're tough, they're smart. and they have negotitated a great deal. the people of china should be very proud of this team, starting with the vice premier, a very extraordinary man. we've got to know each other very well. everybody on my team knows your team. they have handled themselves very well. reporter: [inaudible]. >> so the tariffs on the increase from 25% to 30%, that will be suspended. we'll be paying 25, but we're not increasing it to 30.
then you might want to mention the additional tariff? >> additional tariffs -- as many of you know, the second half of december, that is scheduled to go into effect on december the 15th and the president has not made a final decision on that but there is plenty of time to make that decision. and that is certainly part of this process that the chinese are working their way through. so the first one has been suspended. the second one is subject to the president making a final decision but the way this timing works out, that will be well in advance of that date. >> we'll be making -- [reporters shouting questions] >> say it? reporter: [inaudible]. >> students? no, no, no. no. we're going to be very good to chinese student. nope. i heard this question many times before, including from our own security people.
we want all the people that want to come over from china. we have the greatest university system in the world. we're going to keep it that way. one of the reasons it is great, we have a lot of students from china. we're not going to make it tough. we'll make it like for everybody else. we're going to make it, i think that is important. i think, steve, i think it is very important, bob. our universities are available. the world comes in. they use our universities. we have the greatest system in the world and china will not be treated any differently. i think it is important for you to say that to the people of china. our system is opened. people get in based on merit. we have incredible talent coming in from china. they occupy a big space in our universities and we want to keep it that way. okay? there were false rumors that we would close the schools to china. that is so false.
it is just false. reporter: [inaudible]. >> say it? reporter: [inaudible] >> mr. president you've been clear in the directive all along through the trade negotiations on your view on the universities. reporter: are you going to do anything to reassure the student? >> yeah. i can give them my word. i want them coming here. we want the greatest talent in the world coming to our great universities. harvard, yale, princeton, the great wharton school of finance. all of these great schools we want them coming here. that is what we have. that is one of the reasons we have a greatism is. there have been discussions about that. not by me, i ended them very quickly. i want you to know i end those discussions very quickly. [reporters shouting questions] reporter: -- currency manipulation? >> we'll be making a decision on
that, evaluating it. i will comment assuming we close the agreement, we have the assurances that will be a big step in the right direction for our evaluation. [reporters shouting questions] reporter: [inaudible] >> we do. we're doing a lot of business with chinese companies. we do have to be security companies an certain companies we have to be careful with, we have to pay very close attention. we're doing tremendous business with china and chinese businesses. it's tailed off. we tailed it off. we purposely started tailing it off. it will build up again, i think to a much bigger extent than before. reporter: when you talk about a free trade deal with china -- [inaudible] >> this is phase one. it's a big part of it. the farmers, the intellectual property, a lot of, a lot of
areas are covered here that frankly are in great shape. property, financial service is going to be a massive boon to the banks and credit card companies and all of these companies, including ownership interests. before you had to do certain things that made it very difficult for banks and institutions to really go into china. china's really been opened up now for the financial services, big banks and credit card companies. other types of financial services. so that is a tremendous thing. i think we have complete agreement on that. intellectual property, a lot of agreement but we'll have some of that included in phase two. agriculture should be done. i don't think the farmers can handle anymore than what they're getting. don't forget we signed a big deal with japan. that was a very big deal. a lot of that had to do with agriculture also. so the farmers are doing well. currency, foreign exchange,
we're all set on that. that we've been able to do. not only through simplification, importance of it, very important technology transfers. we'll have some technology transfers here and some in phase two. we may be able to conclude it in phase two but it might be phase two, phase three. okay? reporter: doing a phase one, as recently as early next week you wanted one big deal? >> because it is such a big deal and covers such big territory, because i think doing it in sections and phases is much better. don't forget we covered fully in terms of agricultural, even in terms of agricultural structural issues. in terms of $50 billion of agriculture, so that will be covered in its entirety.
currency, foreign exchange covered in entirety. financials services will be covered pretty much in its entirety. banks and lending institutions, all institutions are covered. some of technology transfers. a large part of intellectual property will be covered. so i think it actually works out to be a very neat package. now we can focus on phase two. reporter: [inaudible]. >> whatever it is. reporter: what at one point would you raise tariffs? >> we'll see. only at point of good faith, bad faith. i think we have a lot of faith. reporter: [inaudible] >> what we're doing, we're going right away getting this papered right now. it is already partially papered. much of this has been pretty much completed from the standpoint of paper. we think it will take four weeks, five weeks, something like that. now we happen to be together in chile. so that could be a point or maybe not.
president xi will be there. i will be there for the big summit. reporter: [inaudible]. >> i think we got to know each earth other a lot better. don't forget there has been a lot of back and forth. we thought we had a deal, perhaps they didn't. it didn't work out that way. this deal is bigger deal than the last deal, relatively speaking. we're talking about big parts with financial services and agriculture. when we talk about $50 billion in agriculture. we never had that in mind for the first deal. we were thinking about 20. 16 to $20 billion. now we're talking about $50 billion. this is actually a much bigger deal. it's a big chunk of it. it's a much bigger deal than we had in mind. certainly in terms, i would say, steve, financial services is bigger and more complete.
intellectual property will be in both faces of the deal. currency, for enexchange we didn't discuss that much in the the last deal. but we did had this deal, a lot of things have happened in the course of the last year. this is actually when you add it up will be a more important deal, a bigger deal and more precise. reporter: currency agreed last spring as well. >> now we have currency, currency and foreign exchange is included. foreign exchange aspect of is much more complete than it would have been under the other system. don't forget a lot of things happened with currency and foreign exchange we weren't talking about a year ago. yes, from china? reporter: [inaudible] >> we're going to find that out. that will be up to the vice premier and to president xi. so we'll find that out. reporter: [inaudible]
>> well the united states has been doing very well. china, i think this will be tremendously positive. this will be a tremendous thing for china. we've been doing well and i think we'll do better. we've been doing really well. we've been leading the world in many aspects of what we're talking about. i think we'll do even better. i think china will do tremendously well with this deal. this is a great deal for china. it's a great deal for us. reporter: 450 billion is an buell figure? >> you want to define that, please? >> will scale up to a annual figure. reporter: annual figure of 40, to 50 billion? >> yes. within the second year. >> over less than two years. reporter: [inaudible] >> we discussed hong kong. i think great progress has been made by china hong kong.
i've been watching, i actually told the vice premier, it has toned down a lot from the initial days of a number of months ago when i saw a lot of people and i see far fewer now. we were discussing it, i think that will take care of itself. i actually think this deal is a great deal for the people of hong kong to see what happened. i think is a very positive thing for hong kong but it really has, it's, escalation, really has de-escalated a lot from the beginning and we were discussing this. reporter: [inaudible]. >> we'll be looking at the blacklist and we'll be making a determination as to which companies would be on that list. reporter: mr. president, if the -- [inaudible] do you still think the federal reserve needs to cut rates? >> i do, i do. i think the federal reserve
should cut rates regardless of this deal. we're higher than other nations. germany is loaning money and when it has to be paid back, they get paid, okay? it is ridiculous. and i think that the federal reserve should cut-rate, regardless of how good this is, we have a great economy but we have a federal reserve that is not in step with the rest of the world. so i think they ought to get in step. and if they were in step, we would, regardless of the china deal, the china deal is much more important than the interest rates this has to do with more than trade this has to do with world peace. this has to do with getting along. this has to do with the rest of the world. this isn't just a deal on trade. this has to do with a friction and a lot of bad things happening in the world. so this is far more important than the federal reserve and interest rates. the federal reserve should cut interest rates, absolutely. reporter: [inaudible].
>> i think it helped me because yesterday we had the biggest crowd. we broke a stadium record. we broke the record in minnesota. nobody has ever seen anything like that. you saw it. you understand it too. my poll numbers are going way up. the impeachment is a hoax. we didn't discuss it. i would tell him it's a hoax, done by people who are losing, they want to try to use it to win an election. i don't think it will happen. i don't think china will believe it will happen. if they did, they would rather deal with "sleepy" joe biden, who is doing badly, he will never make it. if whoever emerges from the other side they may be better off waiting. they know when i win the deal gets even tougher. the deal getting even tougher. they expect i will win. otherwise they wouldn't sign the deal. next? reporter: [inaudible]. >> i do like tariffs.
reporter: what is your explanation again about december? >> i think that we're going to have a deal that's a great deal, that is beyond tariffs. this is a very deal that is a very important deal for china. very important deal for the world. very important deal for the united states. i think this is a deal that is beyond tariffs. i really mean that i think that world peace, there was a lot of friction between the united states and china. and now it's a love-fest. that's a good thing. but that is good for china and good for us but it is good for the world. the vice premier said the same thing. he said it better than anybody could have said it. this is a great thing for the world. he didn't say china or us, he said this is a great thing for the world. he is absolutely right. perhaps you would like to comment on that? [speaking in native tongue] >> the whole world is watching. >> yes, the whole world is watching. >> it is amazing.
>> it provide peace an prosperity and development for the whole world. this is very, very important. >> said peace an prosperity for the whole world. so it is i don't know a trade deal. it really is. you know, talk was getting tough. rhetoric was getting tough. we have ships and they have ships and we have planes and they have planes. and you know, bad things can happen, stupid things can happen but this is a great, a great thing that's taken place. we have a very good bonded relationship. and i have very little doubt that we'll be able to get this thing finalized out. it is not overly complex. we will start phase two. this is important deal for a lot of reasons. thank you very much. i hear a helicopter. i'm going down to louisiana. we have a totally soldout crowd in louisiana. hopefully the governor of louisiana who is not doing a, he
is not doing a very good job in louisiana, hopefully he won't get 50%. we'll have a runoff, you have nice new republican governor of louisiana. i hope, a lot of you will join us. are you joining us john? you joining us to louisiana? reporter: [inaudible] >> did you watch last night? did you enjoy it. heart heart. -- reporter: >> a lot of people enjoyed it, john. >> thank you. john. >> we'll talk about that later. >> thank you press. we're leaving now. thank you. police, thank -- press, thank y. thank you, press, we're leaving. [inaudible]. melissa: that was president trump obviously in the oval
office. we run a few things. tuesday not happening on tariffs. december are still to be determined. not just a trade deal. this is about peace. we have ships, they have ships, that sort of thing. bigger than being about trade and money. connell: the last comment or question from the media before they were ushered out of oval office about huawei. the president said we'll deal with that later. steve forbes joins us in new york with his reaction to this phase one of a trade deal. boy, how does this line up for you, steve? better than you expected, about right, you want to know more, what is your take? >> obviously we have to learn more, very fact they're doing this in phases, trying to do it in pieces instead of trying to get a grand deal at once is probably a good thing. the markets certainly like it. the key thing can they get that thing finally signed? if so the quicker they can do it the better. the fact they are the, the president would go public the way he did, and detail in which
he did about 40, 50 billion in agriculture, market access for financial companies, obviously they think they were further along than last may when they thought they had a deal and it blew up. if this thing blows up it will be extremely serious. the chinese, i don't think would have let this go as far as it did. it would be a massive humiliation for both sides. so something will get done. one of the things to look out for, they talked a lot about ag. i think you will see eventually a deal on natural gas, china buying liquified natural gas from the united states. melissa: no, that makes a lot of sense. chinese reports were they were walking away or they weren't leaving i don't know if that is the fake walkout. steve, you know something about deals, did you get >> well when you get that kind of pessimism then you know
probably they're going to pull a rabbit out of the hat and the president is making his statements a few days ago and china threatening to do all of these nasty things, not nasty, but saying nothing much is going to happen and the vice premier does not have the authority to do a deal. connell: one of the things we've talked about a lot, steve over the last year and a half or the methods versus the final goal you've been critical at times of the methods would you be willing to say tonight that the tariffs worked or at least served a purpose? >> i would say the initial tariffs worked a purpose, but i think if we had done as we did with huawei and some other things earlier, and made it very clear we would take severe retaliatory action against specific companies and specific industries beings we might have had a deal earlier, but the key thing is now, we'll get back to the history, but the key thing now is can they get this ball over the line? and then the next thing to watch
out for, are we going to have tariffs on autos and auto import s from europe, if we avoid that, and u.s. mcaxe gets through congress which i think it will, by golly, it's going to be very good for the market and you'll start to see investment go forward. right now even though we have this phase i of china businesses aren't going to open the faucets on investment until they really believe this is for real. the markets will try to anticipate it, but you're not going to make massive business investments of tens of billions of hundreds of billions of dollars unless you firmly know what's rules of the road are so this is good, and people want to see real print. melissa: absolutely and they say it's going to take a couple weeks to paper. to me that doesn't seem outrageous. deals like this do take time, does it seem, does it make you more dubious? >> anyone whose been with a merger knows that trying to do a deal all of the details that go into it but the proof will be in the pudding. connell: right. >> they both, i think, want a
deal certainly before year-end, not just a phase i but where businesses know what the rules of the road are and more and more areas and they can move forward. connell: steve thanks as always have a great weekend what a friday as we wrap up with some news, thanks for joining us and have a great weekend all of you out there. melissa: absolutely dow up 319 bulls & bears starts right now. david: a trade truce is on, president trump just announcing that china and the united states have come to a very substantial phase i deal. good evening everybody. i'm david asman. thanks for joining us this is bulls & bears joining me on the panel adam lashinsky, christina partsinevelos, heather zimaronga , and gary b. smith. the dow soaring more than 500 points today before ending off session highs as details trickle down, about the president's meeting with china's vice premier, lee hu. both countries coming to an agreement on intellectual property, financial services, agricultural goods and the