tv After the Bell FOX Business November 20, 2018 4:00pm-5:00pm EST
optimistic about this economy. liz: you've got about six seconds, give us your outlook. >> we think that it's going to get positive from here. we kind of found where we were, 20 days ago and we're positive going forward. liz: we'll take an optimistic tone at the end and there is the much-awaited bell. dow tumbles more than 600 points and the lows close down 539 wow take it away after the bell. connell: wall street getting locked again this tech sell-off we've been talking about continues big time today. we also had president trump just leaving the white house a little while ago, when he did he spoke out on a variety of issues, that are in the news including the murder of jamaal jamal khashoggi now we wanted to see how the markets close we will bring you the president's comments, however, in full, momentarily a lot to do on a busy day good to be with you i'm connell mcshane. >> hi, everybody i'm cheryl casone in for melissa francis,
this is after the bell, and the dow closes and down 553 points, after dropping more than 600 points at session lows the s&p 500 falling into correction territory earlier in the day, with of course the tech heavy nasdac ending down more than 100 points, all three major averages erasing 2018 gains finishing today in negative territory for the year, but we've got some folks to help us out with all of this. phil flynn is watching the big drop in oil from the cm e. we do start with mr. ashley webster on the floor of the new york stock exchange with what was another rough day. ash? ashley: you are absolutely right , cheryl. you know, traditionally thanksgiving is weak, it's pretty positive historically for the markets 2018 out the window another rough day look at the dow up 552 points, yes, we were down more than 601 points but maybe you could say we came back just a little bit, but down more than 2% on the day. tech stocks again, taking it on
the chin, i want to look at apple if we can. apple, it's down what 9% in just the last two sessions, after 4.75% down to 176.98 in bear territory been a tough go for apple concerned about slowing demand for the iphone, goldman sachs just the latest brokerage firm to drop that price target on apple and look at the other tech stocks microsoft down as well taking it down almost 3%, facebook though, hung in there, and started off lower came back on the day at 132 up half a percent, google also up but boy what a day trade stocks also getting hit as we worried about china and i know phil flynn will tell you all about the oil market which also helped to depress the market overall today guys. connell: that was really some drop thank you, ashley let's go to our market panel, gary kaminsky here from capital management where he's president also fox news contributor and joined by adam johnson the bullseye brief author and gary,
you're quick to remind me sometimes when we're looking for lows in the market we do see a low, but it doesn't necessarily mean that it's the low. what do we see today? >> well, the worst thing that happened today is the nasdac and nasdac 100 took out the lows of about four weeks ago, and from even nasdac and nasdac 100 have always been the leading indices to follow, they are the risk areas when markets go up, and you see what you were saying and when you're seeing apple down 10 today, amazon down like 400 points it really tells you everything you need to know. we are in a bear, market there's more time and price to come the dow will hold the best better than everything else because of how the big market cap and the liquidity but i suspect the pain is not over yet and it's definitely forecasting slow down s to come. connell: more to come. we saw and we see there, adam, apple's decline which has been really something to behold here not just today but from the highs and we did see to ashley
webster's point a little bit of buying going on with facebook. do you take anything away from that action in tech? >> sure matter of fact connell i was one of the guys buying facebook earlier this morning and google was also up and i also bought salesforce.com which is the leader driving big data, artificial intelligence, and you know, i hear what gary is saying , you hate to see some of these lows taken out on the nasdac but the fact is we're back to flat on the year. it's not that ugly. more than half the companies in the s&p 500 are already down 20% , so i would argue, rather than arguing about whether there is a bear market just recognize that sort of internally, it's already happening, maybe its already happened and that's why i'm actually buying. connell: so you were a buyer of facebook. gary before we move on tell adam why he's wrong, please? >> i just think all these, i think all of these stocks have more to go. typically in bear markets you're going to get the leading stocks of the prior bull down anywhere from 40% to 50% some much worse and i just think you've got to
be careful. this whole thing about buying because an up day, i don't think it works. i think the whole complexion of the market has changed at this point in time. look i hope i'm wrong. i hope adam is right. >> well if you're looking for opportunity big news we're quickly approaching black friday retail stocks taking a big hit let's take a look at these guys the national retail federation says consumers will spend 4.1% more during the winter holidays than last year. could the shopping season give a much needed boost to retail all these stocks that are pressured they had a miss and this is kind of a rough day for those retail names but in particular if you're a target big box name do you think that's a better move? >> well target actually had pretty decent results when you think about it. the same-store sales were up 5.1 %. okay that wasn't the 5.3 people thought but guess what. it's still above 5% and they said the fourth quarter is going to be the same. if you look at the surveys for the national retail federation we're actually expecting to see
about 30 to $35 more of spending per person this year and that's largely a function of tax cuts so i think right now what we're seeing is retail stocks selling up just because there is this cloud overhanging the market. everyone is so sure that there's going to be a recession next year and everyone wants to get ahead and sell, i think that's really looking at it the wrong way. this economy is a lot stronger than people are giving it credit for. >> if that's the case then, gary if we don't worry too much about the retailers in 2019 in particular or for this last of course month of the year, a lot of these companies went out ahead of the tariffs, and really loaded up on merchandise and so they're not going to get that price pressure now they get hit with it next year. does that make you worry? >> well i worry about excessive inventory if we don't have a good holiday and look, i think with oil prices crashing, with interest rates back i think the 10 year back near three, that's going to help things over the holiday, but i am pretty darn sure, everything is forecasting slowdown, just
remember, germany which is the engine of europe just announced a contracting quarter, japan announced a contracting quarter and their markets topped out way in advance so for me i'm more worried about what happens for stock exchange and again something i've been saying for years still a big overhang of massive debt and deficits and the republicans did nothing about them when they had a chance to hopefully save the day they raised spending and that's overhanging, corporate debt is overhanging, and i'm keeping fingers crossed that things turn out for the best but the markets are speaking loud and clear. connell: let's talk more about that crash in oil prices that gary referenced. today alone down more than 6% on the crude oil price, lowest close we've had in more than a year. you see working in some of the electronic after-hours trading, down even more, phil flynn out in chicago. what's the takeway from today? >> i think a lot what gary is saying. right now, the oil price is signaling the potential slowdown in demand and we've seen that really because the
market was taking its queue from the stock market. you talk about the stock market giving up all their gains for the year today the oil prices did that a day just yesterday, so i mean, or this week, so at the end of the day, what we're doing is we're resetting the clock back to a year ago, when oil prices were this low. so the thing is just how much of this is real, you know, and how much of this is perception, and i think a lot of it is perception right now. i mean, if you look at the big picture when it comes to oil inventories, there's still very very tight. you know, they might get a little less tight with saudi arabia we'll see. connell: reality versus perception what a market phil thanks, cheryl? >> watching oil, watching the stock market and watching trade tensions which are also weighing of course on investors minds today. we're going to look ahead to president trump's meeting with chinese president xi at the g20 and the president's economic director larry kudlow did give insight on what we could expect earlier. listen. >> he believes that china would
like to have a deal but he is also told me on a number of occasions, any deal, between the two countries, has got to be an american interest, without any question, and its got to include ip theft, its got to include changes in ownership, its got to stop the force trends through technology, its got to go to zero tariffs. you're not going to get a deal unless it suits american interest. that's a key point that president trump is making. >> gary, adam, back here to react and adam i would argue at the same time though that the chinese are reacting and there has been a retaliatory effect, based on these tariffs which again, were back into effect in september and there's more to come by the end of the year. >> well i would argue actually that what we saw at apac last week with vice president pence started going after president xi was really a good cop bad cop. what he's really doing, i think, and it's not just because i'm
along alibaba, which i am but he's laying the ground work for mr. trump to am could in on the white horse and say okay, president xi, you're a great man let's do a deal. you know, president trump is someone who likes the limelight. he likes doing deals and getting credit for it. he's not here to see this thing faulter. i've been saying that we really need two words, framework and flexibility, if we can get framework for a deal coming out of the g20, and we can get flexibility from the fed on policy that's very strong. >> ip theft, certainly, gary has been on the mind of many companies and tech executives for years and years but you still have somebody like nvidia for example, who has a huge market to sell into when it comes to china. there are a lot of companies that will be put in harms way, if we don't get something out of the g20, between the two countries. >> well, we are already getting a lot of companies talking about they're not able to plan as well for next year, capital spending has been coming down, and i'll just repeat it for the
thousandth time, tariffs are a tax on the economy. i don't care what larry kudlow or navarro or the president says it is a negative not a good thing and i think it's an overhang and also a head wind as things move forward. if they get things done, if they're able to get china on the table and move half way, i will give the president a standing ovation, but as of right now, all evidence in, china doesn't give a who know what about what we have to say right now, g20 may change it and hopefully it does. >> i want pictures of that. connell: the standing ovation. we'll talk about planning for next year, a lot of people were looking at this goldman sachs note today, sounding the alarm, to some extent, projecting economic growth will slow down, significantly, during the second half of next year, but here is what the aforementioned larry kudlow had to say about all of that. >> my colleague, kevin hastert at the cea had choice words for
goldman sachs and their partisan forecast. 4% under obama, our plan with trump wouldn't work but i'm such a nice guy i'm not going to go there. connell: very nice of larry to hold back in his interview with stuart varney but gary you take this first and we'll go to adam. the idea here to the earlier point on trade, that goldman was saying at least in part if it's in its note, if we put those new round of tariffs, in other words we go from 10% to 25%, on the chinese, that is something that will cut into growth and corporate profits in a pretty big way next year. >> oh, heck yes, and let me add into goldman sachs what they said in a non-partisan fashion. chemicals, industrials, autos, hotels, travel, i can give you housing and housing-related. all trading at new yearly low some at multi-yearly lows. they're telling me the economy won't slow down the second half of the year. it's in the midst of slowing
down right now, and i am telling you, you can put this down on a sheet of paper, we're going to have a slowdown in gdp the first quarter if not now, and the markets telling us the markets are very good forecast of the shape of things to come and these all these areas at new yearly lows is meaningful. connell: you want to take the other side of that adam as well? or are you not with goldman are you? >> i'm certainly not which by the way, gary might make a nice -- wait a minute but no i'm certainly not on that side of the trade. fine. gdp was 4.2 in the second quarter we know in the third quarter it slowed to 3.5 that's fine and very different from gdp going negative. you know if you look at the recession since 1970 and i'm talking about 1975, 85, 02, 01 and 08 very different set of circumstances employment was ugly, inflation was ugly, valuation was ugly, we don't have any of that now. fine, what we're seeing in this
market is some of the money coming off the table, the s&p is only flat on the year, we're not down, we're just taking some chips off the table, the economy is stronger and people are thinking and it's going to go farther than most believe, i'm with larry kudlow on this one. connell: when he says what people are thinking he means you gary. we've got to wrap this up for today it's a good discussion both sides which we like, fair and balanced action. >> happy thanksgiving to you connell and charles. connell: even adam right. >> we do have a lot more coming up. president trump just took off from joint base andrews, he's making his way to mar-a-lago for thanksgiving, but not before speaking to reporters, and making some major news at the white house. we've got the breaking headlines and the president's full remarks , coming up next. (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh.
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>> cheryl: breaking news president trump speaking to reporters at the white house before leaving for mar-a-lago. we wanted to check the markets for today but now let's listen to the president's comments in full. president trump: we're going to the southern white house, we have a lot of work we are going to be doing in florida, we had great some really great election results, as you know, and georgia just came in and that was a big success, florida was a tremendous success with both the governor, ron desantis he will be a great governor and senator rick scott, and as you know, ohio was a great victory, we had a lot of great victories so we're very happy about that. we put out a statement on saudi arabia which i guess most of you have seen and we'll see how that all works out. it's a very complex situation, it's a shame, but it is what it
is. because it's america first, to me. it's all about america first. we're not going to give up hundreds of billions of dollars in orders and let russia, china and everybody else have them. it's all about for me very simple. it's america first, saudi arabia if we broke with them, i think that your oil prices would go through the roof. i've kept them down, they've helped keep them down. right now we have low oil prices or relatively i'd like to see it go down even lower, but i think that it's a very simple equation for me. i'm about make america great again, and i'm about america first. >> [overlapping speakers] reporter: are you basically telling us, mr. president [inaudible]? president trump: that what? no i'm not saying that at all. if you look at iran, just take a look at iran, and you look at what they're doing they are a terrorist nation, right now, although i must tell you they
are a lot better than they were when i took office, when i took office, they were heading in a very very bad direction and at some point, things very positive , frankly could happen with iran but we also need a counterbalance and israel needs help also. if we abandon saudi arabia it would be a terrible mistake. >> [overlapping speakers] president trump: i really can't understand what you're saying, i'm sorry. reporter: the washington post in a statement put out a statement said that you're putting your personal interest, your commercial interest -- president trump: well just so you understand, i don't make deals with saudi arabia, i don't have money from saudi arabia, i have nothing to do with saudi arabia, i couldn't care less and i will tell you and as most of you know, being president has cost me a fortune and that's okay with me. i knew that a long time ago, but
being president has cost me a fortune, a tremendous fortune like you've never seen before, but some day, i'll tell you what that is, but and i do that a long time ago because i don't do deals, all i do have focus on this country, and making great deals for this country. i don't focus on making great deals for myself, because i don't care any more, so saudi arabia has nothing to do with me what does have to do with me is putting america first. wait, wait, wait. they're buying hundreds of billions of dollars worth of things from this country. if i say we don't want to take your business, if i say we're going to cut it off, they will get the equipment, military equipment and other things from russia and china. russia and china would be very very happy, because right now, we're doing very well against china, we're doing very well against everybody including russia, and i'm going to keep it that way and i'm not going to tell the country that spending hundreds of billions of dollars
that has helped do one thing very importantly, keep oil prices down, so that they're not going to 100 and $150 a barrel. right now we have oil prices in great shape. i'm not going to destroy the world economy and i'm not going to destroy the economy for our country by being foolish with saudi arabia. so i think the statement, wait a minute, i think the statement was pretty obvious, what i said. it's about america first. yes. >> [overlapping speakers] president trump: say it again? reporter: why was it appropriate for your daughter's personal e-mail -- president trump: just so you understand early on and for a little period of time, ivanka did some e-mails. they weren't classified like hillary clinton. they weren't deleted like hillary clinton who deleted 33, she wasn't doing anything to hide her e-mails. i looked at it just very briefly
today, and the presidential records, they're all in presidential records there was no hiding. there was no deleting like hillary clinton did. there was no service in the basement like hillary clinton had. you're talking about a whole different, you're talking about all fake news, so what i ivanka did is all in the presidential records, everything is there. there was no deletion, there was no nothing. what it is is a false story. hillary clinton deleted 33,000 e-mails. she had a server in the basement that's the real story. >> reporter: the fact that the policy has been put on hold. president trump: which policy? reporter: your asylum policy. president trump: i'll put in a major complaint because you can't win if you rush a case in the ninth circuit and i think it's a disgrace when people file every case gets filed in the ninth circuit because they know that's not law.
that's not what this country stands for. every case that gets filed in the ninth circuit, we get beaten and then we end up having to go to the supreme court like the travel ban and we won. the ninth circuit, we're going to have to look at that, because every case, no matter where it is, they file it, practically, i mean, practically, for all intense and purposes, they file it in what's called the ninth circuit. this was an obama judge and i'll tell you what. it's not going to happen like this any more. everybody that wants to sue the united states, they file their case in the ninth circuit and it means that automatic loss, no matter what you do, no matter how good your case is, and the ninth circuit is really something that we have to take a look at because it's not fair. people should not be allowed to immediately run to this very friendly circuit and file their case and you people know better
than anybody what's happening. it's a disgrace. in my opinion, it's a disgrace, what happens with the ninth circuit. we will win that case, in the supreme court of the united states. reporter: is he a hero and when [inaudible]? president trump: go ahead i can't hear your question. your voice is not -- i don't know. >> [overlapping speakers] president trump: well they're all finished the written answers are finished. the lawyers have them i don't know. they will. the written answers to the witch hunt that's been going on forever, no collusion, no nothing they've been finished, they finished them yesterday and the lawyers have them and i assume they'll turn them in today or soon.
regulatory are reporter: are you afraid to go to a war zone? president trump: i'm going to a war zone. what? the sanctions on iran are very strong, very powerful, they are sanctions i think that have had a tremendous impact, more sanctions are going on, we have a lot of tremendous support, and iran is not the same country it was when i became president. it's a much different country. hopefully at some point we'll be able to make a fair deal and help iran and help the people of iran. >> reporter: do you really believe the dems -- >> [overlapping speakers] president trump: well i know that his daughter works for facebook which i just found out today and if you look at what facebook has been doing they have some real explaining to do, how they're so democrat oriented all of them but i hear schumer's daughter works for facebook and i was very surprised and disappointed to learn that because nobody knew that until now, yeah, go ahead.
reporter: is julian asange still free? president trump: i don't into anything about him, i really don't know much about him. i don't. go ahead. reporter: [inaudible] president trump: i want pakistan to help us. we're no longer paying 1.3 billion to pakistan. we're paying them nothing because that's what they've done to help us, nothing and i cut those payments off a long time ago, we're not paying pakistan any money, because they're not helping us at all and we'll see where it all goes. i hope to have a good relationship with pakistan but right now, we're paying pakistan nothing. i cut them off. they were getting $1.3 billion a year. they're not getting anything now . reporter: [inaudible] president trump: oh, don't worry about the thanksgiving holiday. these are tough people and they've done a great job.
you're so worried about the thanksgiving holiday for them. they are so proud to be representing our country, on the border, where if you look at what's happening, mexico, the people from tijuana, are saying wow, these are tough people, they're fighting us, they're in fist fights all over the place. these are tough people that are coming in, now, i understand they have 500 people that have been designated as let's put it in a nice word, criminals, and these are the people that are coming in, no. you don't have people coming in. the order today is not that we can get around that very easily. what i do say ninth circuit is very unfair when everybody files their case in the ninth circuit they file it for a reason. as far as the troops they are proud to be on the border, they are proud to be defending our nation, and we're not letting people in. it's called catch and detain. it's not called catch and release like it has been for many years. for many years, they called it catch and release.
they don't call it that any more and our soldiers are doing an incredible job and if you look at the walls that they're building and if you look at all of the barricades they're putting up they've done a great job. reporter: do you have any reaction for domestic violence? president trump: no i wish them the best of luck. i wish them the best of luck. reporter: what about the market? usually is larry kudlow that we aren't headed into a recession? president trump: no i think we're doing great as a country we're doing great. our unemployment is at a record low. you look at all of the different statistics i think your tech stocks have problems but that'll come back but no, i think we're going to do very well. i'd like to see the fed with a lower interest rate. i think the rates too high. i think we have much more of a fed problem than a problem with anyone else, we're doing very well with china. china wants to make a deal very badly. they might not say that to you, but they want to make it very badly. i have another $250 billion worth of tariffs to put on if we don't make a deal and believe me
, i'll be putting them on, because china's been ripping off our country, for many many years , and they don't rip us off with me. we made a great deal with canada we made a great deal with mexico , i appreciate the help that mexico is giving us at the border. you see that people are not coming through. all of the fist fights and the fighting that you see are done on the mexico side. they're not coming in here, but i appreciate what mexico is doing. they can do more, but i appreciate what they're doing. reporter: [inaudible] president trump: well they were preserved the lawyer told me they were all preserved historically they're all preserved. they didn't make a determination and it's just like i said, i think maybe he did, maybe he didn't, they did not make that assessment. the cia has looked at it studied
it a lot. they have nothing definitive and the fact is maybe he did, maybe he didn't, if you look at iran what they've done they've been a bad actor you look at what's happening in syria with hundreds of thousands of people killed, we are with saudi arabia. we're staying with saudi arabia, and by the way just so everybody , i have no business whatsoever with saudi arabia. couldn't care less. reporter: [inaudible] president trump: no this is about america first, they're paying us $400 billion plus to purchase and invest in our country probably the biggest amount ever paid to the united states and this is over a long period of time and it means hundreds of thousands of jobs, billions of dollars of investment and product, and if you think that i'm going to let russia have that money, or those things, if you think i'm going
to let china make the military equipment, hey, china and russia would love to make $100 billion worth of military equipment from saudi arabia and we have the contracts, they wanted those contracts, that would be a big fat beautiful gift to russia and to china. they're not going to get that gift just so you understand. it's about make america great again, it's about america first. we're going to stay with saudi arabia. the other thing, saudi arabia is probably the second biggest oil producer. they've worked with us very well we've kept oil prices down. if you want to see oil prices go to $150 a barrel, like by the way, russia would love to see that, all you have to do is break up our relationship with saudi arabia. reporter: will emeet with the saudi arabia crown prince in argentina? president trump: i don't know that he's going to be there but if he is i will.
reporter: [inaudible] president trump: so cindy highsmith is a spectacular woman. she's a great senator. she came in, she's done a fantastic job in a short period of time. she made a statement which i know that she feels very badly about it, and it was just sort of said she's a tremendous woman , and it's a shame that she has to go through this. i think she's going to do very well. i really believe she's going to do very well. i've gotten to know her well. she's the person that loves the people of mississippi. she loves the people of this country. she's going to be a great senator. i'm going to do two events in mississippi on monday. i'm doing one near let's see i'm doing one near jackson, i'm doing one in the gulf coast, and we're going to do one in tupulo, so we might do three, but i think tupulo is definite and gulfport is definite.
cindy is a tremendous woman who truly loves the people of mississippi and our country, and i think she's going to win. reporter: [inaudible] president trump: ivanka can handle herself. these are all in the historical records there was no deletion whatsoever, unlike hillary clinton who deleted 33,000 e-mails, unlike hillary clinton who had a server in the basement , ivanka didn't. this was just early on, when she came in, and these calls were not classified, unlike hillary clinton's calls which were classified, and it's all fake news. reporter: the holiday pardon? president trump: i love the pardons for the turkey. i haven't thought of it. reporter: [inaudible] president
trump: no i think what asad has done is horrible. i mean really horrible. reporter: question about the recent online polls. will you feel obviously i can assume, who do you think deserves to be second place? president trump: it's called person of the year, right? reporter: yes. president trump: no longer man of the year right? reporter: yes. president trump: i don't know. that's up to time magazine. i've been there before. i can't imagine anybody else other than trump. can you imagine anybody other than trump? ha? have a good time, everybody. thank you. connell: on that note, that was president trump earlier this afternoon, on the south lawn of the white house, before leaving for thanksgiving holiday break in mar-a-lago, in palm beach, and there's a lot to talk about there lot to react to there cheryl and i adjoined by james freeman, wall street journal assistant editorial editor and
michael o' hanlin, foreign policy senior fellow, good to see you both i'm going to start with issues certainly on trade. i'm sure that would be of interest to our viewers i'll start though with saudi arabia because that, michael, is the news of the day and the president coming out there, and saying that it's america first for me, in terms of possibly punishing the saudis for the killing of jamal khashoggi. he says i'm not going to destroy the world economy by acting foolish at saudi arabia as you might suspect he's already being criticized by a number of prominent democrats for those comments but what's your take on how the president handles the situation? >> well i wouldn't say things the way president trump does but i understand why he winds up in the policy space that he arrives at which is basically to say that we're not going to break the relationship with saudi arabia or even fundamentally change it over this issue. the u.s. saudi relationship has had a lot of challenges over the years, not least 15 out of the 19 hijackers coming from there that wasn't saudi policy to hijack the jets on 9/11, but it certainly was a result of a lot
of saudi policies that we don't like, so we've been through even worse. that's not to say that the saudi s should get or that they should get a blank check and i would have preferred to hear more reflective warnings from president trump towards the saudis. they're going to have to improve their human rights record and also not trust their judgment on the war in yemen and a few other things as much, but we're also going to recognize we have a policy and a strategy of mutual dependency. i think that kind of language i would have preferred to the sort of denial or half-denial approach president trump takes but again i don't disagree with his nuanced bottom line which is that we can't really rupture the relationship over this one tragedy, however horrible it has been. >> it is interesting because some of the democratic criticism james was referring to the likes of senator mark warner of this was a bush administration or clinton administration or obama administration there would be a far different reaction and the saudis wouldn't essentially get away with it the way that he
sees president trump letting them get away with it but maybe michael is on to something that the bottom line is different than the way you arrive at the bottom line. my question is what do the saudi s do next? oil is way down today again, and you wonder, do they still cut production even with the president coming out and basically saying hey, we've not let you away with this but we let you go here, but we like to see these oil prices as low as they are is essentially what he's saying. >> yeah, i would think that his message of support might encourage them to keep drilling. i also think they maybe are under some pressure now to show that there's something to this modernization drive other than a pr campaign. we've seen some signs that the crown prince there wants to pull that country into the 21st century, but between this event reporters on our news side reporting torture of women in saudi prisons, detained for political reasons, we had the
roundup of the crown prince's opponents within the country recently, so big question mark on whether the proclaimed modernization is happening. >> cheryl: michael staying on this really quick can saudi the issue of course is and i thought it was interesting he was asked if he was at the g20 and he said that he would, so it sounds to me like the president is very open to continuing this relationship which frankly let's be honest here, means that we've got to stay on the side of the saudis because our main target is still iran. >> i think that's right in terms of how president trump sees it. i would prefer that again, there be a little different more nuanced messaging and a little firmer messaging so president trump could have said he would meet with mbs, but he would have said i've got concerns i need to express to him if we do meet starting with the war in yemen, where we've all learned, partly from the jamal khashoggi tragedy that the saudi state is making some mistakes these days and mistake of judgment and of
morality and that leads us to conclude that this yemen war in particular needs to be rethought and we've been facilitating what they've been doing it hasn't worked it's time to be a little firmer and i will deliver that message to mbs if i see him. >> cheryl: we'll see what mbs 's future. >> bottom line but a firmer tougher message. >> cheryl: really quick, before i let you go james i do want to ask you about he was very harsh when talking about the ninth circuit. he took a jab at the ninth circuit earlier today when he was pardoning the turkeys but again this is a court that has been very anti-trump if you will in particular they've blocked whether it's trying to end daca they blocked things at the border, the wall, you name it and but why did he, he got very passionate about that james do you think he's looking ahead to 2020 wondering if immigration is the thing he's going to run on when he comes back in two years? >> well i would say also beyond the politics and i think you make a fair point, he's not the first person to scratch his head wondering about a ninth circuit decision. this has been really the source
of a lot of bizarre left-leaning decisions over a number of years , and we saw with the earlier travel case, the supreme court ended upsiding with the president. i think that it's likely over time that he will prevail if his goal is to see the u.s. immigration laws enforced. connell: we said there was a lot to unpack i think we maybe got to about a quarter of it that's the way it always is it seems that president trump, good to see you and james freeman, thanks as always. >> cheryl: because the fed should obviously be lowering rate. connell: there's that, china trade as well slapping the tariffs on if they don't comply. >> cheryl: well speaking of the fed and the markets another sell-off on wall street today, but president trump's economic approval ratings, ticking higher what moves can the white house take to ensure this number continues to go up from here.
connell: we know there was another selloff on wall street come another 530 to the downside in the dow today. but how about this, president trump's approval rating and it comes to handling the economy hit a new high. 53% from a gallup poll well above the 45% average approval rating from the president to obama. lanny chen joins us to talk about that from the hoover institution. always good to see you. i guess the question is, we always talk in markets about lagging indicators versus leading indicators and what that will look like asked her if the economy is slowing down. >> right. a lot of this is a function of the performance of the economy. right now the performance is very good notwithstanding the selloff today as you noted. we see high consumer confidence. people feel good about the trajectory economy. fundamentally we are seeing for the first time in a long time higher wages, very, very healthy labor market and for these reasons people feel good.
cheryl: on the question of whether were headed for recession in a political context, i think president trump and his advisers may look at that because one of the ways to look at it is to say if i cut a deal with china on trade, do something positive from a market perspective at least on trade, that might help my rating on how i handled the economy and make me more likely to get reelected. what do you think? >> a number things in the president's control. i think a lot of people are growing increasingly optimistic we'll get some kind of free market of the g20 meeting with president xi a president trump get together soon. the second issue is there's other things they could do to demonstrate an adherence to wind to boost the economy even more in 2019 whether that's a tax cut, infrastructure policy appeared a number of things the administration could do. it does no good for the president and senior advisers to worry about when the recession will be here in the public to
comment on it. when the recession comes from ability with it when it does. there's so many things they could do from a policy perspective. cheryl: seems that the president from his comments a moment ago is just hoping the fed doesn't raise interest rates too fast. he seems ready to blame the federal reserve for this whole thing. >> the federal reserve needs to take a close look. whether they go four times or two times next year the fed does need to look carefully at those question. cheryl: that does matter for the president. lanhee chen, always good to see you. we appreciate it. >> brushing off recession fears, why president trump's top economic adviser says the economy is the main with no slowdown in sight. that is next.
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cheryl: all right, a big market selloff today. is this a sign of things to come for the economy? well, not according to larry kudlow. >> i acknowledge there is a stockmarket collection correction and i do like to see people move money anytime. these things happen they come and go. the psychology of stocks has gone down a bit. the economy is roaring. cheryl: is the economy still roaring? kristen tate, great to see you. that's a great question here. you think is is kind of pointing to in the soundbite that the economy and the stock market are not in sync and it's really the economy is just fine despite what was on the markets today. >> is certainly doing well right now. looking ahead there's too many variables to accurately predict where the economy is going to be one or two years out ahead of 2020.
economic growth will depend on a number fact there is a whether or not the fed decides to keep raising interest rates and whether china buckles under tariff pressure. there's a lot of people who are saying economic growth will slow in the coming years. if that's true it's going to make it a lot harder for the gop to point a to point to tax cuts as a major accomplishment ahead of 2020. the cbo was predicting that gdp growth is going too slow to 2.4% next year and one point x% a year after that. of course that's a huge decline from the four-point 2% road we saw earlier this year. cheryl: talking about a possible slowdown the second half of next year. your point about something president trump can hang his hat on in 2020. it doesn't look like it's going to be immigration considering the different roadblocks that he sat along the way for that. at the same time if it is the economy and there is a slowdown in the market starts to pull back, we would i think need tax cuts to point out to get him
something strong. does he have a chance to get anything like that through? >> i think the chances of that are pretty slim. you make a great point. all these republicans in the midterm campaign were running on the economy, on tax cuts. if trump can brag about the economy, what can you brag about? he's really going to need one more significant when between now and 2020. i've got to tell you i tell you i have a lot of tram supporters in my family. they're not talking about the economy. they're all talking about immigration. immigration will probably be a bigger issue in 2020 than 2016. americans are watching caravans headed to her southern border and wondering why we don't have a wall near trump is that he's willing to shut down the government to get funding for the wall. a lot can happen between now and 2020 but i'm not optimistic about tax cut to plano. cheryl: to your point if you got a democratic-controlled house, the immigration story, really
quick, is there anything that can make an hitter to win for both sides? and i'm thinking about infrastructure. that's the one talking point that could push through for both sides. >> yes. i mean from the democrats know they have to work with trump and some things but democrats can have success leading into 2020 so the goodies he thinks unlike infrastructure you mention. nobody's against infrastructure spending. these are relatively easy things to get done that make for good talking points. in terms of something big with the economy or immigration or health care reform, i'm just not optimistic i don't see any real progress there. tree into his infrastructure easy? yes. cheap nail. good to see you. connell: we have to pay for all this? we talked about apple earlier and how much pressure it's been on today in for a number of days really. they closed about a bear market territory in today's session.
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connell: so apple may be having a rough time of it to put it mildly. gearing up for a mild symptom of the for a mild symptom of the world largest smartphone maker by volume offering a major trade for 10 year anniversary flagship phones next year from a "wall street journal" report we brought hillary bonding to talk about. what's it all about, hillary? >> hey, connell. seems i'm hoping to go head-to-head with apple over its own version of it can't anniversary smartphone device. celebrating its 10 year anniversary in the smartphone maker is reportedly ready to roll out three versions of what is being called the galaxy as time. according to "the wall street journal," dating its galaxy a full tech makeover including 5g networks is, bigger screens and more cameras and similar to apple's 10 year anniversary
device, sam's son is planning an entirely separate standout model to hit the shelves that would be 5g enabled and "the wall street journal" reports its internally code-named beyond acts. the trio of new galaxy 10 devices will just miss the holiday shopping season this year. reports expect the three to debut in february next year, but the 5g phone, beyond acts is on track for a spring release according to reports and apparently has an even larger screen six by seven inches diagonally. dix campus, to front facing her aunt absolving mode and further pictures. i reached out to sam's son and they say they won't comment on rumors or speculation about this report. the price point is also a mystery that will have consumer appetite for a super sophisticated device with a potentially bigger price tag. smartphone sales have been on a several year decline, but they aren't allowed. apple reportedly slashed their
product orders for some of their newer phones that just came out. connell: hilleary von amped up salty mode. while we are thinking people, thank you cheryl for staying up late. we will see you there. 5:00 a.m. "bulls & bears" comes right now. >> hi, everybody. thanks for joining us. i am david asman. joining me on the panel today we've got the a-team, gary b. smith, steve lee and chris morris is with us. we have art laffer titled trump annan makes inside the america. first plan to revive our economy. our market needs revising. the dow plunging 551 points today dragged down by a tech wreck. the dow and s&p completely erasing their 28 teen and here's