tv The Intelligence Report With Trish Regan FOX Business August 25, 2015 2:00pm-3:01pm EDT
"the intelligence report". trish: hey. dagen: you have governor pataki and carly fiorina. trish: we have big day, and really big market. thank you so much, dagen. welcome, everyone, to "the intelligence report." what a difference 24 hours makes. absolutely postively insane week, come on heels of volatile market. it is all over the place. trimming loss as bit here. nonetheless up 2:45. some recovery. amid news that china's central bank cut interest rates to support the world's largest, second largest economy. actually i believe in december 2014. overtook the united states of america. not on per capita basis but on overall basis to become the largest economy in the world. exactly what does this mean. china is out there, lowering rates, it depresses yuan their currency, on one hand, all pay a little less for christmas toy
this is year. and for other imported goods. on other hand, it means it may be more entices for manufacturers to manufacture things there which takes jobs away from us. other problem of course, that we owe china $1.3 trillion in debt. so, when their currency gets weaker ours effectively gets stronger, which means our bill keeps going up. since when did china dictate our markets? jason rotman joining, managing partner at lido island advisors. we have a chief investment at charles schwab. ashley webster on floor of new york stock exchange. adam shapiro and charlie gasparino is with us. we have big crew as we watch a rally, 240 points. liz ann, a lot of people are nervous. should they be? >> sure. when you see market action like this is very disconcerting investors. i'm not sure people should play
short-term trading game. extremes of today don't tell the fundamental story and extremes today either. we have macro forces that have been with us for some time. what happened you saw a lot of internal deterioration in the market. you had breadth deteriorating. a lot of money gone into smaller and smaller asset classes. you're seeing some unwinding of that. it is tough environment. trish: ashley webster on floor of stock exchange. what are traders telling you whether or not they think worst is behind us? can we all breathe a sigh of relief. saying the market is paring some losses from yesterday? >> that is the biggs question. certainly a lot quieter than it was yesterday. yes we're rallying 250 points. it doesn't really feel like it. not very reassured some traders are saying. this rally is somewhat unconvincing. futures are pointing to 600-point gain before opening bell rang.
that did not materialize of the we've been in the same range. not very reassured this to point, many issues out there that the headwinds that these markets are affected by. trish: jason rotman, of course everybody is saying thank goodness, china cut. but, in overall scheme of things, what does that mean for the u.s.? >> i almost believed, trish, interestingly enough, china is essentially raising rates for us. as you alluded to very intelligently, in opening dialogue, that means the u.s. dollar whether fed raises rates or not. that is not the best thing for u.s. corporations because we've seen the u.s. ceos kind of complain about how a strong u.s. dollar is negatively affecting their earnings. china is hurting us left and right. i think at end of the day, i do want to echo ray of bridgewater, saying the fed may surprise
everybody, do 180 and add more stimulus because these are dire situations believe it or not. they actually truly are. trish: let's not forget when you depress a currency, hey, we've done it here in the u.s., that is exactly what janet yellen and ben bernanke did last half dozen years, when you lower rates you cause currency to weaken. we saw early in this process that the dollar was weak itself. china is now out there weakening its currency. so comparatively everything else is that much more expensive which means, our bills to china could go up. donald trump is making big issue on campaign trail. hear him last night with bill o'reilly. >> funny money. they devalue their currency constantly in order to take our jobs and lots of other countries jobs frankly. they devalue point to where they
want to take even more money out, even more jobs out, increase and all of sudden they have a big fat beautiful balloon popping right now taking with us us. trish: they devalued and by weakening that currency it also creates an asset bubble of sorts there in china. charlie gasparino came out with very interesting column on markets and trump today in "new york post." let me share a bit with you. he writes as well as continued lackluster economic growth it could certainly get worse, dramatically worse just in time for the 2016 presidential election as economy becomes even more speculative, trumps chances of becoming president grow. charlie, what do you mean by that? >> my point is, voters often take chances on candidates when they feel there are real problems out there. and you know, i mean, logic would dictate in time like this you go for the trusted hand,
right? maybe hillary clinton been there. trish: trusted hand, interesting choices of words. >> tried and true politician. same thing like jeb bush, ran a big state. voters take chances. take chances on barack obama, one-term u.s. senator last time. during 2008 financial crisis. took a chance on ronron, -- ronald reagan, speaking heterodoxy. >> he spoke to americans. he spoke about values. >> but was speaking about supply side economic, voodoo economics. people called it. they thought that was against mainstream economic theory. he got elected. we lucked out with reagan. didn't quite luck out with
president obama. if things get really bad here, ray dalio run as large hedge fund which one of your guests brought up, this china thing is foreshadowing a real problem with the global economy and u.s. economy. trish: i hear that from a lot of key investors. >> trump comes in to start talking about protectionism, starts talking about walls, feeding fires of people who most people who are scared, can't come in and win. trish: that is when it matters. >> you got a note from goldman sachs this morning. they're very bullish on u.s. economy. >> that is goldman. >> that's a very good point. trish: a bit at stake. >> u.s. economy, yes. global economy is slowing down. especially economies that export commodities to china for production. that's a yes. but once again, take a look at percent of companies in the s&p 500 with revenue that is generated in china. it is 3% of the revenue. it is not a huge amount.
our economy is -- trish: is this, is this market really that reliant on china? >>hat is where i think he is wrong. trish: worry not that reliant on china. >> are they a big trading partner? yes. do they matter? yes. do they matter for the global economy? yes. is that be all, end all as donald is trying to make it? no. there is a way, just so you know, liz ann can speak to this, there is a way, contagion, chinese economies affect other economies that affect us. trish: in other words when commodity prices get as weak as they have been getting, they affect commodity companies, many of which are located globally, a lot in latin america, concern about companies paying back sovereign debt. could trigger a worldwide crisis. that is what people fear. liz ann, people fearing what janet yellen will do come september. given the panicked selloff that we saw yesterday, do you think
this basically leaves janet and company, on hold for interest rates? >> more likely than before. i want to go back, if you would let me for a second to the china situation. i'm not a apologist for china. i deal in facts and this tag line, they constantly devalue by trump, since their stated devaluation which, really i think was more for the purpose of having their currency become a member of the imf special drawing rights, the currency has devalued by few percentage points, but that is after the currency appreciated against the dollar for years to tune of 30%. trish: how many years, not that many years, liz ann. historically they good keeping their currency lower than ours. >> it is pegged to ours in a range. range of renminbi to the dollar is 25 to 30%. they needed to correct that i'm not apologist for china but i think purpose was not specifically to hurt the united
states. trish: they're trying to help themselves of course. >> they want to try -- trish: right? we kept rates low of the we have lowered rates. we have done qe1, 2, numerous rounds of money printing in an attempt to our economy. we devalued effectively our own currency. nonetheless, when china is doing it, given delicate place that we're all in and realization, jason that we have, you know what? they can affect us. their markets can have big effect on us. it's a little nerve-wracking for many people. >> it is. i think you are seeing knee-jerk reactions here obviously to the downside. conversely you saw a knee-jerk reaction up side when china cut rates for fifth time since november. to speak on honest note here,
china has a long way to go from where they are to interest rate policy like the u.s. did in 2008. face it, this is china's 2008 right here. what will the next few years will look like? if you think china will continue to lower interest rates, that actually may be a very good thing for the u.s. market, for the dow, for the s&p, oil prices may go higher which would -- >> you know what china will do? >> that may not be the worst thing. >> you know what china will do? they have 3 trillion in reserves? they will not borrow. they will use it to stimulate economist. build more ghost cities. they will inflate their bubble even bigger. they will start buying up more commodities. that is what china will do? >> that could very well be the case. if that helps to increase oil prices. that is good for s&p. we have to get through this tumultuous time until we hear from the fed in three weeks. >> this is something for liz ann. the market reacted on downside
much more violently than the upside. why do you think that is? >> look at just technicals of the market. when we came into this corrective phase, the market really seen a lot of interior deterioration. you saw internals break down. breadth was terrible. there was a lot of distribution and names and sectors already well into correction territory. that was a bit of a warning sign. what we're seeing so far in this pattern, notwithstanding crazy bouts of volatility and halts yesterday i think function of mechanics of the market that are new this time, i would look for is reversal of that. i think it is natural for market with crescendo low, calm down, have relief rallies and have quieter test of lows, that tends to happen with less fanfare. that is more important to look like. i look to see if you see reverse what preceded this correction. look for what is called accumulation. look for breath having improved.
that may give you a sense we're truly finding that floor. too soon to address that. trish: people are on edge, they wait to see what happened with janet yellen. we talked about the taper tantrum in the past. this seems to be that. we are worried about china and that is legitimate concern. >> break it down for what the u.s. investor has to worry about, instead of getting them distracted with a million things. you have to look at the u.s. economy. 2% for the market. not talking about you know r underemployed male, if you're working or full time or part time. if you're looking in the market, look at u.s. economy. are corporate earnings being affected? will they get better. will the economy remain on 2%
gdp growth. if that is the case, then, just ride this out. but we don't know. it is just a matter of watching that number. that is one thing to look at. trish: corporate earnings are not necessarily what they used to be. corporate earnings have been influenced by all financial engineering. >> agreed. stocks are by some measures expensive right now. i would just say, if the fundamentals are radically changed because of what is going on in china our economy, then you will have to rebalance your portfolio eventually. trish: we'll continue this conversation about the markets and about china. george pataki is here. former governor of new york. you know what? donald trump is going after him saying he was the worst governor new york ever had! but governor pataki is firing back. carly fiorina will tell us -- >> worst governor? trish: what to do -- >> donald thinks he is worse than spitzer? trish: see you back here in two.
trish: we have rally on our hands. not quite what it was earlier today. up as much as 400 in change. at least it is not yesterday. what a wild day that was. anyway, we've seen a little bit of recovery, because china came out and cut interest rates. they slashed them, to help flood their market with more currency. effectively makes yuan cheaper, cheaper than the dollar. the problem with all of this of course, guys, we owe them dollars, not renminbi or yuan. guess, what folks? our tab, it keeps getting bigger and bigger. bigger in relation to where their currency is. and if that is not all here, you take into the fact if we want to sell our goods in china, our
goods get hit with tariffs. it makes our goods even more expensive. china is also stealing our intellectual property. they're hacking into our computers. presidential candidate carly fiorina, telling me this is the time to strike back, watch this. >> pride over the last several years to engineer a soft landing for their economy and it appears they have not succeeded in doing so. frankly i think now is the time for us to put pressure on china. trish: donald trump is pledging to do exact same. former new york governor george pataki and presidential candidate joins me here on set. governor, always good to see you. >> good to see you, trish. trish: how would you tackle china? >> we should attack china by making thing here in the united states instead of importing them. we have the highest tax on corporations and manufacturing. i would have the lowest tax. let's make things in america again. create jobs here. bring the $2 trillion our
companies have sitting offshore back to invest in america. we should be growing this economy twice as fast as we are. trish: makes total sense. absolutely, no reason to leave all that money overseas. overseas economies benefiting from it. let me ask you about in the china case, it is so cheap for them to manufacture and send goods here, especially now. lower their rates go, cheaper currency is, cheaper their goods are. so americans, they want cheap stuff, right? we love going to walmart and -- >> of course we love cheap stuff. of course their stuff might get cheaper. i don't think necessarily is a bad thing. not that china is doing a better job than we are. we're doing a worse job than any other developed country in the world. we have economic climate between the tax structure and regulatory structure people move jobs offshore. whole inversion thing i'm sure you follow, american companies buying foreign companies for one reason only, to pay lower foreign taxes instead of american taxes.
we don't have to put up a wall. first and second largest economies in the world will not disengage but we can outcompete them. trish: improve our corporate situation. >> lower costs. >> what about meantime, you still got china out there. >> yeah. trish: they're still manufacturing very cheaply. do you fight back? do you say, you know what guys? if you're going to sell american stuff in china you can't slap tariffs on it if we're not doing -- >> they shouldn't slap tariffs on it. but another thing we should be doing is pushing a trans-pacific partnership. if we don't have to deal with so much with china. let's deal more with south korea and japan and vietnam and philippines and malaysia. getting that agreement through, assuming it's a good agreement, that is ultimately negotiated will strengthen both the economic and political ties with asian countries, not china. strengthen america. develop better ties with non-chinese economies over there. make things here.
let the chinese do what they do. they're not going to -- trish: would you add tariffs for chinese goods coming into the u.s.? >> no. i think we should get them to lower theirs, not to raise ours. but on the other hand, with trade, if they start dumping things here, if they're using government support to have artificially low prices, then we have the right to retaliate and we should. trish: what about their currency? would you say, guys, can't keep depressing it? >> tell you something, we've been manipulating our currency. we had essentially zero interest rates at the fed for seven years. why did we do that? we did it to weaken the american currency. europe and central bank have lowered their interest rates, lowered their currency. japan has been doing it for 20 years. now all of sudden the japan lowers yuan by 1.19% because they float it. it will have short-term consequences. let's strengthen america. strengthen our relationship with the rest of the world.
make things again. give american worker and entrepreneur a chance to compete fairly and we'll grow our economist. we'll not have to worry about it. trish: governor, he has come out swinging against you saying pretty terrible things. >> who is that? trish: donald trump that is. >> i consider it a compliment. trish: he is calling you the worst governor in new york. what do you say in new york? >> why did he support my and say so many great things i've done. by the way how many millions did he save because i cut taxes by more than other 49 states combined. trish: you have a lot of businesses here. work directly with him. >> i didn't work directly with his businesses but i dealt with them. we always got along fine. being added to the list insulted by donald trump is kind of a badge of honor. whether it is immigrants or war heroes or p.o.w.s, megyn kelly, me, most of the other candidates, this is just ridiculous. trish: governor, stay with us. in addition to tweets about jeb bush and his immigration policy last night, donald trump
tweeted out some personal attacks about fox news's megyn kelly who you were talking about there. in response to those attacks, our boss, fox news chairman and ceo roger ailes has issued this statement. donald trump surprised and unprovoked attack on megyn kelly during her show last night is as unacceptable as it is disturbing. megyn kelly represents the very best of american journalism. all of us at fox news channel reject crude and irresponsible attempts to suggest otherwise. i could not be more proud of megyn for her journalism and class in the face of all of mr. trump's verbal assaults. her questioning of mr. trump at the debate was tough but fair. and i fully support her as she continues to ask challenging probing questions all presidential candidates find difficult to answer.
donald trump rarely apologizes but in this case he should. we are doing our job, much less allowed ourselves to be bullied by anyone. we're certainly not going to start now. all of our journalists will continue to report in the fair and balanced way that has made fox news channel the number one news network in the industry. i will have more with governor pataki. we're talking immigration. we have not just a problem with mexico but also a problem with chinese immigrants, people coming here just to have kids so they can be american citizens right after this break. ♪ can a business have a mind?
his proposal is unrealistic. it will cost hundreds of billions of dollars. it will violent people's civil liberties. create friction with our third largest trading partner that is not necessary, i think he wrong about this. trish: bush saying if donald wants to learn about illegal immigration, he should read bush's book, immigration wars. it's not just mexico, news that china is going to cut rates, we're talking about the immigration issue we have with china. here's a startling statistic for you. chinese women are coming to the united states of america to give birth so their children will have american citizenship. in fact, in a four year time period, the number of chinese women coming and giving birth on on our soil has nearly tripled. and you know what? that's not all. more startling here, a growing number of wealthy chinese women are hiring american women to use american women's bodies to
have their children born on american soil. something that really does suggest our immigration policy needs an overhaul. former new york governor george pataki is back with me here, and do you agree? what do we do about that in the idea people come here, have a child or worse, put an embryo in an american woman so she can have that child on american soil. >> it's totally wrong. first, let me start with jeb bush's comment, he was saying how expensive and difficult donald trump's plan would be. i don't think that's far enough. donald trump's plan is nuts. trish: nuts? >> we're going to take a ten-year-old kid, a girl in the fifth grade born in america, lived here her whole life. speaks fluent english, has never been in the country her parents came from. are police going to drag her out of the classroom? trish: do you think he knows that logistically it would be
pretty next to impossible? >> no. i think like most of his solution it's superficial, it makes no sense but it's a good sound bite. sadly, i fear he actually believes it. and not just does trump believe, it but too many of my fellow republicans seek a nomination have not rejected this ridiculous idea. >> i think people feel angry that the country is in a tough enough spot, economy is in a tough spot, jobs are hard to come by, and the idea that there's people here benefitting from the system that didn't come here as they should. now look, i'm a product of immigrants, you are as well. we all are. that's part of what this country is. nonetheless, our families came here legally, they did it the right way, and i think a lot of americans say hey, you know, as long as it's legal, fine, but they don't like the idea of people doing this in underhanded, illegal way. >> i totally agree with that.
and we have to control our borders. we have to make sure people only can come here legally. not just the borders but overstaying visas. we have to have a penalty for those who came illegally. trish: what do you do about anchor baby, not just mexicans but chinese as i pointed out. >> the idea that people come here to give birth to a child is wrong, and we should not allow that to happen, period. trish: then you get into the 14th amendment. if the child is born on our soil. >> we have the right to control our borders. we have the right to control who comes. trish: what do you do? you give a pregnancy test to every woman in the country? >> we could have legislation that makes it plain you cannot come here simply for that purpose and allow that to happen. but we do, as you said in commentary, we need to have a comprehensive overhaul of the immigration law starting with controlling borders, airports, controlling visa policies and making sure people come here legally.
trish: you make a lot of sense, governor, a lot of sense, but with we look at your polling numbers, can we pull those up for folks. you're still struggling there. how long do you stay in this? and at this point, why stay in it if you're not in the higher echelon. >> the reason i stay in is to win. i honestly believe i can lead this country well. and i don't think america has an inherent problem other than our government. we don't do enough globally to protect our security. we don't do enough to allow our economy to grow and create the jobs. it's a failing of government. when it's a failing of government, the solution is to change that government, i can do that. i did it in a deep blue state with conservative policies with a democratic assembly. the poll numbers are what they are right now. i wish they were higher, i'm a realist. but who cares? if you believe in the ability to lead the country. if you believe that those at the top are irresponsible and floating ideas that make no
sense, and if you believe in the need to change the direction of this country and don't make the race, shame you on. i'm out there and intend to stick it out. trish: passion, good to have you here as always. all right, everyone, continuing to watch this market as we look at a dow up 250 points right now. one presidential candidate who knows wall street pretty well, former ceo of h-p carly fiorina joins me on a conversation of the markets, china and her candidacy, right after this.
. trish: okay, again, a quick market check as we watch a rally under way, up 224 points amount lot of green on the screen today, quite a different story than yesterday, in reaction to the chinese, what this does is flood their economy with more money. we saw it happen over the united states of america, over the last six years, we kept our rates at zero. they are slashing rates hoping it will pump more money into the system and encourage people to take on more credit. the danger in all of that as donald trump alluded to bill o'reilly last night, you can create an asset bubble, something we worry about in the u.s. as well. i want to get back to all the discussion about immigration with mexico and with china. a very important issue in this election cycle. you heard me talking to governor pataki about it. he said we need to do something
to change people from coming here, especially when they're coming here just to have babies on american soil, and there by get the anchor baby, though, he didn't use the term. i did talk to carly fiorina about all this. i asked her stance, asked her whether she would be a better candidate than donald trump, who we all know has been pretty vocal when it comes to immigration, here's what she said. >> i have a very different resume than mr. trump. i started as a secretary. eventually i would go onto lead the largest technology company in the world. i have cut bureaucracies down to size, i have done business all over the world, in over 140 countries for decades. it's a very different business resume, a very different experience, they know more world leaders on the stage today than anyone running with the possible exception of hillary clinton, though i didn't do photo-ops, i had substantive meetings about charity or policy.
>> would you have ever, ever considered, did you ever do this, send e-mails about private company business, sensitive information or potentially sensitive information, did you send it through a private server? would you have ever considered it? >> no, of course i wouldn't consider. that of course i wouldn't. all of my communications were conducted over h-p systems. and as secretary of state, mrs. clinton surely knew that she would be engaged in sensitive communications. she surely knew that there were rules against doing precisely what she did. so either she was extraordinarily careless, which does not speak well of her, or she knew precisely what she was doing, trying to hide her communications from prying eyes and lying about her server and about her e-mails. trish: let me turn to hedge funds which have benefitted tremendously from the
accommodative fed and the market that we have seen. donald trump is coming out saying it's not fair, he would change the tax policy of the hedge funds in terms of them being taxed income as opposed to investment because, you know, they've gotten away with a whole lot. what's your take on that would? you go after hedge funds and the tax structure there? >> you know, i don't think going after hedge funds is answer to our economic problems. if you check the record, i've been saying since 2008 that the way we tax hedge funds ultimately provides a windfall for them. fundamentally we need a total rewrite of our tax code. we need to take a 73,000 page tax code chock-full of deductions and special accommodation, that is so complex and so uncompetitive now that we are driving businesses away. we need to lower every rate, close every loophole and get 73,000 pages down to three. trish: immigration, i want to
touch on this with you, because it's become just an explosive issue for donald trump, on the campaign trail. what is your reaction to his term anchor babies? >> for 25 years our border has been insecure. politicians and others have been talking about it and yet it's never been secured. we got to secure the border. it takes money, man power and technology, it's not rocket science, and then we have to fix the legal immigration system because the legal immigration system is contributing to this problem. when we hand out thousands of border crossing cards and never check and see if people come home at the end of the day, we're creating a problem. we don't have an employer verification system that works, we're creating a problem. i don't think it's helpful to call anybody names and i object when obama does it, when trump does it, when anyone else does it. what's helpful is to quit talking about this and put someone in the white house who actually will get done.
trish: all right, well, you can watch more politics here tonight, former congressman ron paul joins kennedy to discuss the latest on the campaign trail and his favorite topic, the fed. don't miss the conversation at 8:00 p.m. eastern here on fox business. more on the markets right after this. rk. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money. it's a brighter day in detroit. people can see better when they're out doing their tasks, young people are moving back in town,
the kids are feeling safer while they walk to school. and folks are making investments and the community is moving forward. 40% of the lights were out, but they're not out for long.they're coming back. technology empowers us it pushes us to go further. special olympics has almost five million athletes in 170 countries. the microsoft cloud allows us to immediately be able to access information, wherever we are. information for an athlete's medical care, or information to track their personal best. with microsoft cloud, we save millions of man hours, and that's time that we can invest in our athletes and changing the world. . trish: we got the markets hanging in there. right now up 253, a pretty significant rally on the street.
this amid news that china's central bank is cutting interest rates. now that's a big deal because effectively, it could pump more money into the system, encourage people to take on more risk in china. it also has the negative consequence perhaps for all of us of depreciating currency which makes our debt to them even bigger in comparison. 1.3 trillion and still counting. americans stepping up purchases of new homes in july with sales surging in the northeast. the commerce department says new home sales rose nearly 5.5% last month after sliding in june. we're going to continue covering this rally as we watch the dow powering higher. we're back with more of "the intelligence report" right after this.
. trish: we're erasing much of yesterday's losses. joining me with reaction, the president of graylock capital management and peter cheer along with liz claman on the floor of the nyse ahead of her show, "countdown to the closing bell." how are traders feeling today? >> they're feeling okay, it's a totally different psychology of buying today than yesterday. yesterday was more frantic. today it is a different picture here. more orderly, but at the
moment, we've cut in half most of the gains that we saw earlier today. remember the high of the section for the dow, 441 points. right now up about 270. a lot calmer here, however, they're all saying that the action is going to ramp up in the final bell. trish: might see it. seen a 20-point gain in the last few minutes. the fed and the threat of higher interest rates come september, you also got china and all the worries associated with china. when you look at the equation, what concerns you most? >> interesting, peter was by my office last week and we were talking specifically about the fed, and we agree that not having hiked up to now is a big psychological barrier about hiking or not hiking in september. trish: people don't know what it's going to mean, if you move a quarter point what does it do to the psychology of the markets.
6+ years we've had free money. >> they have to raise, people are going to sell stocks on the back of it, there's going to be fear. we have to get over it. trish: i don't think they're going to do it now. i think that 1089 decline might have spooked members of the fomc. >> might have. my only hope is somewhere saying this is our fault. we have created a market that has no volatility. we've caused people to become too complacent, it's our responsibility to raise rates and get that out of the system. trish: we did hear janet yellen just say something similar to that quite recently. she was concerned we might see frothiness in equities. we had alan greenspan on this program last week saying he's worried about an asset bubble, and said when rates go up, it's not good for stocks. not good? but i think we should be able to handle it at this point. we've had this threat lurking on the horizon for so long.
should it surprise anyone? >> if you're sucking up half the bandwidth by whether they're going to hike or not 25 basis points, there's something wrong. i agree with peter, should have gotten this out of the way 12 months ago. >> once we hike, that will clear the way for us to hit new highs. one of the thing that hurts the market, people say does this mean the fed is going to hike? once they've hiked and we start getting a rally, people won't have to say that. trish: breathe a sigh of relief if that happens. i'm not so sure it will come in september. liz at the top of the hour, everyone, we're looking at a more than 300-point gain. i'll see you right back here in two. ♪
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. trish: okay, we are up nearly 300 on the dow. joining me is the president of graylock capital management and peter, seems both of you are more worried about the fed than china. what do you think we can predict in september? >> i am hopeful they will have a rate high, i don't think we get it. we've got jackson hole coming up, there will be a lot of speakers to get the message out. i'm hopeful they're going to stick to the plan and say listen, focus on the u.s. economy. our lack of hiking has caused china due to the actions. our lack of hike has caused froth in the market that came disastrously in the last few weeks. >> first of all, this is such a communicative fed to the point where it's tmi, janet yellen, but we probably will hear some stuff and they may try and test the markets more, if they do so
there at jackson hole, more volatility? >> clearly, i mean my concern is we're talking about 25 basis points here, and i would agree with you. trish: like nothing? >> probably reacting to the market movement as a reason to either hike or not hike. this has become a -- trish: what the heck are they doing? come on! they are the governors of the federal reserve. why are they watching the markets so carefully. >> 25 basis points is going to create a market meltdown, there is something wrong with the structure of the market. trish: or something wrong with the fed having that much influence on the structure of the market. >> or people ended up looking at the fed this much over a relatively incidental move. >> right, go back to the greenspan days, very few people knew who greenspan was. and the fed is all-encompassing over the whole country. bizarre unelected officials have this much pow or the markets. get off the zero, work it through.
the markets will figure it out. if it creates an opportunity, more to it. trish: i am a journalist, i can get and disseminate to all of you, the better. they give the market so much information that it makes me long for a day when they didn't do that. because people would actually be valuing things with a buy, sell, yin-yang factor at play, i don't think they're doing it now. >> let's be fair, the move yesterday was in reaction to china. we're not worrying so much about the 25 basis points, and to some extent you got to worry about the people's central bank in china and the moves they're making and easing versus our tightening, and you feel like you're dealing with -- trish: because the u.s. dollar is going to go way, way, way up, high and away, which makes it harder to sell things overseas. great to see you guys. thank you so much for coming in. a market up 300 and liz is going to take you right into the close. see you right back here tomorrow, everyone.
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. liz: good afternoon, everybody. i'm liz claman, live from the floor of the new york stock exchange. where today, the u.s. markets are definitely recovering from yesterday's brutal hostile, volatile, and historic session. what a gyrating journey the last 36 hours have been, particularly on the floor where traders have whiplash from watching all the action. the industrial average for the dow jones opened monday and a dramatic plummet happened off the bat, dropping more than a thousand points before closing down 588 points to. put a fine point on that for you, it turned out to be a paper loss of close to $1 trillion. a paper loss for the loss of about $980 billion to 1 trillion. today a totally different story as you can see from the ticker