and i believe that china's investment standout is the china pakistan economic toreador more commonly known as the seat next project is going to use its teeth and it currently represents 20 percent of the economy i think it's a very important project for both the countries especially pakistan considering the fact that it has a big influence on the pakistan's. very there if those figures are accurate 20 percent of the economy one might understand why they're hesitant to speak out. no i mean certainly there are a number of countries that are beholden to china and the chinese government does buy silence through its investments whether through the bottom road initiative the large infrastructure project or through other kind of the kinds of investments but what was particularly surprising is there were several members of the organization of islamic cooperation wealthy countries like saudi arabia the united arab emirates behind qatar and others that you know similarly were were silent they don't they don't rely on chinese investments they're not beholden to china in the same way as poor cou

that has to do with china. i prefer the term competition of systems none of us has an interest in a real clash when but definitely in a global situation where we have. the established western democracies on the one hand on the other hand we have a rise of authoritarian systems. led by china and that is part of the conflict that is playing out that that is part of why the us is getting involvedd on a high level because- the us and china have this trade and everything else wall going on. so more trouble for she can ping something that donald trump obviously enjoys but it's also something that concerns us in europe because in hong kong we say we see the play book. that china is using to handle dissent and cold for democracy and that is a much much broader question how is a more of a clash sure a competition and i prefer the words of the term they call existing because okay system. should be co existed in what china doesn't want is that this be between the what the two systems that one system is challenging the mot

china beginning of october. that's coming up yeah i don't believe they're going to be have a very very bad image in the international press when the pira is marching to hong kong ok so china plays a very long game though the communist party in beijing. if we look at the past if we look at what's happened in tibet what happened at yemen square the internment of the weak corps i mean beijing is not adverse to reverting to force at the end of the day it could have would be because hong kong has nothing legal framework this is a part of a not a system the legal frame with sess the peary could be sent to hong kong if the c.e.o. of the leader of hong kong officially a speeching to do that about of not sink caroline as the leader of the city is going to do that ok well how is the west responded there's been a mixed response french and german leaders have called for dialogue about the situation the u.s. congress has condemned china's heavy handed police response president trump has called on the chinese president to exe

but china continues to grow. china is on the move. because it's a one party authoritarian state they can make moves. they have levers, that we don't have. ashley: very quickly, robert. no one wins? it's a standoff with minor agreements here and there? >> a long-term contentious relationship. this isn't about deals. it is about relations with china. those are likely to be poor, perhaps for several decades. this is a historical structural adjustment. ashley: very good, we'll leave it right there. robert daley. thanks for joining juice joining joining -- joining us liz ann donalders. give us reaction to the new territory with chinese devaluing currency. talk to us about the realities that happen as a result of that? what do the dominoes look like? >> it's a important. a lot of people are comparing to china did with the currency in 2015 and 2018. a little more purposeful for china 2015. i think this is more market driven, they have incentive even if they want the devaluation to have it happen in more of calm way. they probably want to try

is it china? and is it going to force them to change track or, actually, is this rebounding and hurting americans worse? >> well, there's a lot in there. let me unpack some of it. first of all, or even president trump himself doesn't believe explicitly that china is fully paying the cost of these tariffs because you'll recall that he recently suspended the implementation of the tariffs so that u.s. consumers wouldn't be whacked too hard around the holiday time. so it's widely understood that tariffs are paid by the company that imports those goods. they then try to push those costs forward to consumers. now, you asked some other questions in there, what were they? gerry: who's being hurt more, the chinese finish. >> right. gerry: chinese businesses are being hurt, presumably, because their goods are more expensive and suffering competitive disadvantage. >> right. i think the key there is your basic premise is correct. the key this is that we import over four times more from china than they import

happened again the china sort of years ago is was complete different from the china today because china always says it's now a responsible big nation the international word and they're going to use force because in the international conflict china always says we want peaceful means to solve the problem they can be that china says we now have a problem my home becky art i just make my soldier i said by soldier to give it clear that it's no problem or this is not under than the ball and not the outcome and is china's going to celebrate 60 years funding of the people's republic china beginning of october. that's coming up yeah i don't believe they're going to be have a very very bad image in the international press when the pira is marching to hong kong ok so china plays a very long game though the communist party in beijing. if we look at the past if we look at what's happened in tibet what happened in tiananmen square the internment of the weak oars i mean beijing is not adverse to reverting to force at the end of the day it could and would because hong kong has nothing legal framework t

in china and it shows how. true it probably an ideology there we go muslim minority in northwest china they are being monitored very closely the region is like a testing ground for total states available police officers can lock into what's called the integrated joint operation perform the program collect extensive personal data and flags individuals who appear potentially dangerous the organization should. when rights watch analyzed the program on its surface most of this information looks like standard fare for police but as we dig deeper into the hour we can see that ordinary routine regal behavior is being treated by authorities as suspect the data gathered citizens is shockingly comprehensive includes information ranging from religious affiliations and driver's licenses to employment records it even gathers data on residential energy consumption movement patterns of filmed by the ever present surveillance cameras if something appears out of the ordinary consequences can be devastating for example it's help

embassy in china so he knows the china story quite well. he is a graduate of yale university and a former fellow. the short washington with his wife and they have three children. i'm going to turn over to him, he is reported around the world, asia, middle europe and middle east. i'll turn it over to him to make opening observations about the book and then open it up to q&a. thank you very much jim. >> thanks so much well of you for taking time out of aut busy sunny friday. i appreciate having you here as well. and thank you to peter for inviting me he was one of the first people to read a manuscript of the book early on and he did not throw back in my face or turn up or embarrass me. i thought i was probably okay moving forward. and he was kind enough to write one of the blurbs on the back of the book. >> i wanted to start how i came to write this book. what my intention is alsohioo te process that recognizes the shadow, and connecting the dots on a number of fronts on which both russia and china to surpass the u.s. and these were friends o

do to win the tech war with china? >> i think we are at a point where this relationship is going to be rethought quite a bit. >> peter thiel gives maria his take when "wall street" returns. ♪ ♪ hi surfer dude, what's up? i see you looking at me. take those earbuds out of your ears, and come talk to me. i'm the big see. what is the big see? i'm here to tell you about skin cancer. hello! did you know your risk for melanoma doubles if you've had more than 5 sunburns? no. no. listen, mirrors don't lie. and more than 2 people die from skin cancer every hour. oh man. that's terrible. if we see something new, changing or unusual, that could be skin cancer. is there skin cancer on me right now? i'm not a dermatologist, but do you know who is? who? your dermatologist! come closer. that tiny spot on your nose could be the end of you. you guys checking yourselves out in the mirror right now- that could be skin cancer. the good news is, if you catch it early enough, you can be a-ok. you gotta get checked, girl! do i? yes! ever

gemini that's a competition surely it's competition and i think china china and russia are both open to a partnership with the u.s. they're not anti the u.s. but they want their own there their own vision and they have a i think shared geo political economic development vision for the world not just for central asia but and i think they're working that closely together and i think other countries realize that they respect them as well so i think there's a dangerous path for the u.s. to go and i think we need some policy shake up to realize that. both these leaders are pragmatic they realize the u.s. very influential and i think they want to work with the u.s. . ok well jill i mean i think the problem is not one versus the other well that's what it gets down to in washington and i mean again in washington wants a gemini ok i see that russia and china visa be the. i'd say it's one at the very least peaceful coexistence but going back to you know what would jim is saying and i mean it it's either one way or the other that is not going to work now because china and russia did collectivel

and china soon. the question is whether the wheels are falling off or whether we are just going to continue to be an at new status quo. >> the president tweeted we don't need china and would be better off without them. is he right? >> well, he's certainly right that the united states would be better off if we didn't have confrontation with the world's second largest economy that doesn't agree with a free market system so in that regard it would be better if we didn't have that competitor, didn't have a major state capital economy. but given that china is there and they are the size they are and they do have the system they do, the two largest economies in the world need to trade. and while we certainly would much rather if they adhere to our rules and stopped stealing our intellectual property, the fact that trump tweets that american companies need to start making plan to get out of china's not in any way feasible for the foreseeable future. >> ian, president heading to the g7 gathering this weekend

can impose on china. china already faces significant u.s. tariffs. >> what we are seeing is really a message from the pboc, ok, cooldown folks. the yuan has suddenly not become a one way bet. we have seen a shot across the bow to people who became overexcited yesterday. >> the stock market bounce back today on the feeling that maybe this is recoverable after all. but it is really hard to see how that happened. when people get dug again. it becomes a really personal competition between xi and trump. neither man wants to back down and lose face. trade should not be personalized that way. i am afraid that is what is happening. >> central banks taking center stage today. the r.b.i. cut rate by 35 basis points. in new zealand, the kiwi has tanked after the rbn zed announced a larger than expected rate cut. 15 basis points. >> the messages central bank's are willing to go big. it is a global trend. we have st. louis fed president james bullard saying there's no reason to pile on rate cuts. but markets do not seem to be buying that. traders are pri

do to win the tech war with china? >> i think we are at a point where this relationship is going to be rethought quite a bit. >> peter thiel gives maria his take when "wall street" returns. ♪ ♪ there's a company that's talked to even more real people than me: jd power. 448,134 to be exact. they answered 410 questions in 8 categories about vehicle quality. and when they were done, chevy earned more j.d. power quality awards across cars, trucks and suvs than any other brand over the last four years. so on behalf of chevrolet, i want to say "thank you, real people." you're welcome. we're gonna need a bigger room. sleep number 360 smart bed.st sale of the year on the can it help keep us asleep? yes, it senses your movements and automatically adjusts to keep you both comfortable. save 50% on the sleep number 360 limited edition smart bed. plus 0% interest for 24 months on all beds. only for a limited time. all right brad, once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an in

and china may not. to be the same again you guys have filters like many in a state the president won comfortably in 2016 brian sampson is generally in favor of trump's approach on trade with china as the months passed though his confidence is wavering politicians in general love to use a problem to your vote so i'm like him trying to solve problems check the boxes move on i hope that's what happens now but i'm not sure. the president of the american farm bureau federation described the trade war as a body blow to thousands of farmers trade not aid is a familiar refrain here but without a resolution the us is farming states may be facing a different landscape head on to gallacher al-jazeera ames iowa the us attorney general has ordered the removal of the warden at the new york jail where financer jeffrey epstein was found dead 2 prison guards have been put on leave after his apparent suicide following a previous attack at the justice department has condemned serious irregularities epstein awaiting trial

col impose on china but china faces u.s. tariffs. blook berg is pointing out china does president meet the three categories ta do determine whether a country is a manipulator. and china has been stepping in to step in rather to lead et too appreciate it. and they have put out a statement that they are more tolerant. other commentary from the we won't see a depreciation in assets. but certainlyly in what it means in china's economy, sources may gain but risks and risks for those corporations that hold u.s. dominated debt. >> and let's bring you into this conversation. what do you make of that and the announcement? >> what we are seeing today is a message, cool down, folks. yes, we are going the allow it to align it in market forces. what we have seen today is a shout across the bows. for the first meages is the bills. they do it from time to time. they issue bills in the hong kong market. and helps to race short-term interest rates. the amount they are doing, three and 12 months isn't enough to change the direction but changes the liq

and china. a world flowing with oil and the prospects for slowing global demand outweighing the latest reports that iran has seized yet another oil tanker in the persian gulf region. if you look at prices, they did rise intra day for u.s. based wti crude, after they said gen scape estimated a drop in the oil prices at the oklahoma storage hub. it comes from weekly oil data from the american petroleum institute that comes out tomorrow afternoon, 4:30 eastern time, and then the official u.s. inventory oil data wednesday morning. but for now, prices are definitely skewed towards oversupply and weakening demand concerns versus anything that can happen geopolitically for the middle east, at least for now. back over to you >> thank you very much, dom. with the dow down 840 points or thereabouts, let's check back in with bob pisani at the new york stock exchange >> tyler, the key point here is the whole market is essentially down 1.5% to 3.5%. it's true that some sectors are down a little bit more let'

and china. paul: indeed. for more on that, let's get to our next guest, a longtime advisor to china's leaders and multinational corporations. he received china's highest award from president xi jinping last year. he is also the author of "how hinese leaders think." in this environment of escalating trade and potentially currency wars and diplomacy by tweed, how will china's leaders be inking right now? >> they are in it for the long haul. unfortunately, this has gone way beyond trade. it is technology, currency. it is somewhat paranoid thinking in both places as we see nationalism rising. the temperature of nationalism is always negative on rational approaches. the economy of both countries are affected, as is the world. one hopes that rational voices will prevail. we have unfortunately in both countries -- media has become somewhat shrill. puttingresident trump additional tariffs, putting china in a very awkward position. the irony is that we were very close to a deal of until may. both sides said about 90%

was in the wrong china ignored the ruling. in the philippines critics have pounced on to territory for being seen to turn a blind eye to china's development in return for trade but when a chinese vessel rammed a fishing boat in june leaving 22 filipino fishermen dead. could not ignore public anger any longer. joining us is richard hadari an author of the rise of do territory and also more recently the indo-pacific trump china and the new struggle for global mastery so very well placed to explain some things to us a tell us richard to what extent is domestic pressure influencing to territories actions on this trip. yeah i mean the president's very popular in terms of his overall approval ratings but on the issue of foreign policy and his followers who are china that's where we see a lot of problems there's pushback from his own top generals including its defense secretary and national security adviser opening busy to raise concerns about that there should be espionage we didn't see lots of chinese illegal workers and citizens i

and china. obviously china is on much weaker footing, if you will, from an economic standpoint than the u.s. so the timing of taking china on now is certainly there. and i think it is exactly as you said, the u.s. is beginning to think about, talk about themselves, the long game, if you will. you listen to some of the advisors to the president who say, you know, this is not about what the stock market is going to do over the next months, even six months or more. this is about taking on china now so that 10, 20, 50 years from now, we don't find ourselves having to be much more aggressive in terms of keeping china check. and so i think that, you know, this is what has come together. the time is now. because of this president. because of the relative strength of the economies in the two countries, to actually, to take this fight on. and that is what the president is doing. ashley: courtney, very quickly i want to ask you another question i herd what you said earlier, nothing has worked at all when

to china right now. tariffs on their cars would certainly help them, especially if they are trying to ramp up sales of the model three. they are building a plant in china and supposed to have it up and running in the second half. the problem with tesla is they are always behind in getting production up and running. to play inriffs came december, it would certainly hurt them. definitely hurts the german automakers. in u.s.e a lot of suvs plants, exports been to china. ford is growing in china with the lincoln brand, and that is a worry for them. while there will be a plant running in 2020, they would feel some pain. general motors does not send much over there, but all of the automakers face this underlying risk, they rely on china for sales. the market and the economy are already pretty weak. if this trade war to hurt the economy, it does affect a pretty important market, regardless of where they build the vehicles. amanda: give us context on how automakers are doing separately from this? ,here is alread

relations with china? >> chris, i'm not going to speculate because that's not the outcome we're hoping for. the outcome we're hoping for is a peaceful outcome. i think you know, there was a deal with the uk when hong kong was transferred over. we'd expect china to meet that deal, and it's something we hope they respect the laws and they respect what's going on there but president trump is hoping there will be a humane solution there. >> chris: so you were saying well chairman xi is not an enemy of the country but you didn't say the same about fed chairman powell. >> well i really wanted to first comment on president xi, on powell i think i don't think it was a literal comment that he's an enemy but again you know my position on the fed is that i don't make specific comments about the fed. i meet with chairman powell weekly, and as my role as treasury secretary i don't comment specifically on the fed. chris: but this does bring up the bigger question which i do want you to address which is for americans, wh

labeling china a currency manipulator china saying the u.s. is deliberately putting international order in disarray. >>> and how the market turmoil could complicate the picture for the federal reserve. we have that story and the stories that matter most to your money straight ahead it's tuesday, august 6, 2019 "squawk box" begins right now. >>> live from new york where business never sleeps, this is "squawk box. >>> good morning welcome to "squawk box" on cnbc. we're live at the nasdaq market site i'm melissa lee along with andrew ross sorkin joe and becky are off. we have two guest hosts sitting in tom farley current chairman and ceo of fire point and we have shark tank's kevin o'leary the dow coming off a 767 point drop yesterday it was the seventh worth point drop of all time last night president trump's administration responded with the treasury departmen

and china over trade. of course china did allow the yuan to fall to an

at an impromptu news conference at the g-7, quote, china called wanting to make a deal. >> china called last night, our top trade people, and said let's get back to the table. so we'll be getting back to the table, and i think they want to do something. they've been hurt very badly, but they understand this is the right thing to do, and i have great respect for them. this is a very positive development for the world. >> the president also addressing a trade deal with japan and the surprise appearance of iran's foreign minister at the g-7. for the very latest now we bring in senior diplomatic editor nic robertson at the g-7 in southern france. so much going on this morning where you are. >> reporter: it is, and quite a surprise from the president this morning to hear that he's had these calls from china saying that they are ready to get back to the table. of course this is a validation, an apparent validation. we haven't heard from the chinese yet. the president will feel that he is, what he's been telling the other readeleaders, you may hav go through some economic pain but his way is t

-china dispute? >> the hong kong situation further complicates the trade talks because this is where the misunderstanding comes and also the lack of trust. and that to some extent makes it difficult to get an official agreement and with the waslopments, the position always to keep these very strong agreements private, and now increasingly we have seen much more public statements that will lead to people changing their assumptions. view withto get your the families that are most concerned about preservation, and also this search for yield. where do they feel comfortable? what are they looking at in particular? if you think about italy, irrespective of the trade war development, global manufacturing data increases and we could see more weakness in the global economy. the real question is whether supply chain disruption could add further complications to this. i think the preservation of wealth, they seem to realize that gold marries a high allocation. >> is it too late? carrying a yield with negative r

china will not tolerate violent protests, the china daily said. their priority is to punish criminals and restore order. the luckiest 500 people on earth, u.s. stocks plunged amid escalating trade tensions. 21 members of the bloomberg billionaires index each lost $1 billion or more. jeff bezos dropped the most shedding two $.4 billion. he is still worth $110 billion. global news 24 hours a day on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. anna and matt. much, innks very london with your first word news. delivering the goods. deutsche post list the lower end of its profit forecast despite slowing growth. we will talk to the cfo next. bloomberg radio is live on your mobile device or on dab digital radio if you are in the london area. to an end. this is bloomberg. ♪ anna: welcome back to the european open. 7:45 a.m. in london. leave pictures coming in from beijing. we're looking at these live pictures of the hong kong macau affairs office. some of the most recent hea

it is all about china and china's response, overnight to the u.s. this was regarded very positively, traders loved it. you see the dow up 1.24%. what traders say, they believe the trade companies. companies that do a lot of business internationally, particularly in china, been bidding up companies. company like apple, bringing up, doing very well indeed. why else is apple higher today? we're expecting new iphone event to happen on september 10th in cupertino in apple park headquarters. speculation is three new iphone models. successors to the iphone. sx max. we're looking forward to. you're seeing pictures right here. this is the walk up to the oscars, kristina. everybody is speculating what we'll get exactly. a third camera on back of some phones. it is everybody weighing in on who will be the next movie, best script, amazing. we'll see that on the 10th. we'll get all the details. by the way the invitation was very attractive. a lot of people talking about that. back to you. kristina: thank you, gerri. fast wire charger in the box, third camera, al

china mobile. the key is when you think about many of the companies, i noticed you mentioned huawei, many of them are vm ware customers and not targeted by this. so to the extent we can serve those customers, serve those partners, there is an opportunity for us to play in the cloud computing growth in china in a positive way. >> very early stage. >> very early stage. i think there is as much an opportunity for an or other private clouds to be successful in china. >> if this problem continues and lingers, do you see companies maybe not yours perhaps, but others and i'm thinking about apple, increasingly looking into services and being less reliant on the hardware side, do you see other companies starting to slowly pivot to a different alternative that is less dependent on china? >> i think i can't give advice to every company, certainly the hardware economies, ones who are sourcing materials, an dha think about what they're -- my advice is, listen, first, make sure you diversify geographical base of

china sea. also offshore jig gambling will be in focus. we will have a preview coming up. this is bloomberg. ♪ rishaad: we are back. this is a look at the business flash headlines. malcolm resorts delaying a $1.2 billion u.s. dollar deal. it is after an inquiry of the australian company. it is on hold. 60 business days after the completion of the process. the delays have slowed to the biggest shareholder. they tried to quit the company after a series of setbacks. david: caesars is dropping its pursuit of a license for a casino in japan saying it will we towards current business style with el dorado dessert -- resorts. having the potential to the largest gaming market. -- it is keen on tokyo-based, the bay area, and potential dove element. -- development. rishaad: corporate market smashed expectations. beating the forecast. same-store sales around the world fell 3%, twice as bad as analysts projected. it had fallen since the street protests began in june. david: high energy giants -- yvonne: hi

they need sop -- some help. >> you have factories leave china, china because of all threats and all it tried to do with the united states, what has happened is factories decide, look, we've got to leave because they can't price in the uncertainty of the trade war, so this is tarnish china, manufacturers are leaving and that's because of president trump's policies of pushing the countries, factories out of china. heather: trade deal that he managed to accomplish with japan. >> yes, that's really important, you also have canada and mÉxico, usmca, you know, china used to be our number one trade partner in the first half of this year, china fell to 3 behind mÉxico and canada. heather: interesting. >> that's important and in addition to all of this you've got brexit, you've got a uk-u.s. trade deal, that's also going to help sure up our position, people say trump did not create -- did not get our allies on board, well, he's getting our allies on board, you japan, canada, mÉxico, uk, god know who is else. heather: managed to do something that no other president has been able to do and tha

it costs china. what has happened is a lot of countries are moving out of china so they can avoid -- china has -- this is their worst year in 27 years according to yesterday's "wall street journal." i don't want that, but when my people came home they said we're talking, we have another meeting in early september. i said that's fine. but in the meantime until such time as this we'll be taxing them, and we're getting very good numbers from the border. the 21,000 soldiers supplied by mexico, and i want to thank mexico. they are doing a great job. the numbers are way down at the border. reporter: [indiscernible] pres. trump: i think it's very much under control. very much under control. reporter: [indiscernible] pres. trump: let me ask you a question. right. sure. sure. what would you say when china for the last 20 years has been taking hundreds of billions of dollars out of our country and we had a president that would never do anything -- a number of presidents that never would do anything about it. w

drove china. now that relationship goes both ways if you have something in china, it can afebt tfect the rest of e world also other asian countries, other countries vying for that trade for those exports are going to be inclined to weaken their currencies as well this isn't just about the -- this is potentially the beginning of a broader reduction in exchange rates to all the countries that are competing for that trade so mainly in asia, and that pushes up the dollar and if the dollar goes up, people worry how that affects profitability of u.s. multinationals which affects our broader stock market >> i understand what you told us and what i'm looking at, you did reduce your equity exposure. why dismissive if you will, rebecca, of the fed? and the power of a power put it seems silly to ask this now, in the midst of a six-day sell-off, there is the fed and they were going to be there and they may be there again. why dismiss of what they could possibly do? >> i think the fed has a lot of power here i

oh that's already been decided is 2047 when china resumes control of hong kong until then the chinese people or the people of hong kong rather want democracy the way i'm hearing you is that gerry that's non-negotiable yeah because for us we don't believe what we're trying to ease the extension a fun country to a system we don't want to believe that by. it will become just another city of china we want to have an extension we want to have the 2 system for africa ok the 2 system forever let's take a listen now to some of the protesters and what they have to say about their hopes their fears and their dreams from go. the more we come out to protest the more people will be arrested but we still will not leave until we get what we want. the. dream is a more you know it's a moral heart no it's a rock for the north the north pole for the spoils he cares but we've been receiving we call for the call to do this we can put on more but if we use these points composed of overseas it was never before for we shared the same values as us and you that we fight for democracy we fight for justice and s

his china going to do that today -- is china going to do that today? they are sticking to their guns. they will not save the world this time around. tom: where do you want to be on the yield curve? are you looking at tens or 30's? are you interested in the credit space? >> the front part of the yield curve in the u.s. feels like the safest place right now. if you want to take the other side of that, you will see less volatility. you will see further rate cuts coming through. we are thinking 50 base points at the next move. we are on a trajectory to zero here. you will start to see a steepening if they see an acceleration in rate cuts. credit markets, the front part of high-yield looks like a nice place to be. credit spread is such -- is so valuable today. if central banks can get their act together, credit will become even more valuable. the standout asset for us, chinese bonds. they have not kept up with the u.s. rally. they are around that 3% level while the u.s. is down around 1.5%. if we do happen to get to the slow down phase, we will have to play

china has lost control. the chinese economy is much worse shape than it has been in a very, very long time. there are signs of political discord there is nothing that we can say with certainty but things are happening in beijing that normally wouldn't happen in a period of stability. connell: in the mainland, not just hong kong? >> the mainland itself. when you put all of that together, there is a sense, i think, that the chinese really do believe they have got to calm the situation with the united states. they have got all these multiple crises. i this xi xinping is believing he can can't deal with them at the same time. he wants to shuffle the united states off to the side for a moment and sort of deal with the other things he has got to deal with. connell: timing can be a real tricky thing. we talk to you about your hard time, coming collapse of china was written in 2001. a million good points in that book. all of them would come to fruition we're coming to 2019, china has not collapsed, you know what i m

imports from china. we will see what happens from here certainly that will be a major blow to the farming and ak a agriculture community that has borne the cost of the trade war. and a key issue for president trump going into the 2020 election and a few weeks ago the department of agriculture rolled out the $16 billion aid program. the agriculture secretary produced that at the time. there were no plans for additional aid of that but if china closes this market to u.s. producers all together, it could be a different story. >> incredible. thank you very much. we were at session lows a moment ago, dow nearly 770 points and 10-year, 1.74% rick santelli, we were over 2% four, five days ago? >> yeah, 2.07 was in the cards officer 30 basis points of a drop in a matter of days as you look at the chart from early july, you can see what kelly is referring to. we popped up to 174. 173 yield is close to the three-year low and that represented down an even dozen basis points but let's look at the epicenter. the cumu

>> well, china's been the dprout driver of oil for 15, 20 years now so anything that goes bad with china is is going to exacerbate concerns that were significant about demand and the fact we have too much supply so the other extraordinary thing we've seen here is the situation in the middle east extremely tense, but oil can't get out of bed because there's so much capacity and so much u.s. production growth capacity is going to sit there in saudi, middle east. what we have to also get rid of is some of this u.s. production growth that's b probably going to take lower. >> we're going to hear from chevron, now 2%. also from exxon tomorrow, but today, one of the better names in the sector, down huge what is that telling you b about everybody else >> well we're hoping to hear from chevron we'll see. no it was a shock they're a highly regarded company. good play on the perm yum and management have just misjudged how to manage market expectations it was a shock at results last night. the market was shocked at what has been b a premium stock so the issue was that highly regard aed therefore it'

does not need china, saying quote, we do not need china. frankly would be far better off without them. the u.s. chamber of commerce chiming into the tweets, they share the president's frustration but encourage him to continue constructive talks between the two countries. trump demanding that u.s. companies move out of china, relocate manufacturing here in the saying our great american companies are hereby ordered to immediately start looking for an alternative to china. but the national retail federation is saying that a u.s. exodus from china would be not only unrealistic, but costly, it could take years to move supply chains out of the country. the president also calling for carriers like fedex, ups, the u.s. postal service to screen their shipments for illegal fentanyl being funneled from china here into the u.s. fedex and ups responding to this saying they follow all protocols and security measures to make sure i will is lit products do not make their way into their shipments. the president does not seem bothered by the ma market move o

companies to be manufacturing in china. he wants them to move elsewhere, preferably back to the united states and the reaction to this is first of all, i think, business communities are trying to take a step back, play it cool, but it is an indication that this is an issue that's heating up and they're staerrti to get a little bit nervous. the problem with president trump's call for companies to exit china is that it takes a lot of effort and a lot of time and manpower to reload into a different area. there are a lot of products made in china that they aren't really made in such quantity and the scale that these businesses need anywhere else, and so that's a concern. additionally, legally, there are some questions about how this would be enforced. trump referenced an act from 1977 which would apply to future companies and future investment in china but not necessarily the ones that are there now. i think they are questioning how it would be enforced there as well. >> it was interesting to hear larry kudlow trying to spin it

china, we can't just make an even with china. we have to make a much better deal with china, because they have an unfair playing field, and i am turning it around. we are getting 25% of $250 billion. now we will be getting 10% of probably close to $350 billion. that is a lot of money. china has to do a lot of things to turn it around, but you will be seeing -- it goes on september 1. frankly, if they don't do them, i can increase it substantially. if i wanted to, i could increase it to a much higher number. >> [indiscernible] president trump: well, it is in a process right now. i know the case right now. it is a very sad situation. it is heartbreaking, but that is in a process, so i will not get involved in the process. as you know, they will be making a final decision over the next 10 days, so i will not interfere with the process. >> [indiscernible] president trump: we have been moving it down. we have been moving it down from syria. we defeated the isis caliphate and we have 100% of that. we have 2500 prisoners. europe is goin

told me that actually china man kind of bowling so cricket and china are correlated for a long time and cricket was played for the 1st time on chinese soil way back in 1058 when in shanghai. a thesis from the dr then dr h.m.s. highflyer a ship from the u.k. that landed there the dock there and there was a high level so cricket has a long history but 150 years later the gentleman scheme is still stands where it all began so quick it hasn't got its launch pad yet. though i mean it's being played quite radically but. for a long time cricket is still trying to or stick it sneak out in china because other sports especially the olympic sports have kind of a predominantly. popular in china and where it has to you know that's it for the time being you're you do say if they can a back seat but from the as you sort out of port of the roughly 80000 people who are playing the sport in china of them about half are women why is it so popular amongst women. yes as you mentioned the figure 80000 people are really getting china at this at this point of time but i must tell you most of them have been

china is paying for it. china's manipulating their currency. i think our tariffs are working out really well. people don't understand that yet. at the same time, china had the worst year probably anywhere from 30 to 50 years. their worst year. they want to make a deal. reporter: [inaudible] pres. trump: no, i am not happy with jay powell. i don't think he's doing a good job at all. i don't think he is much of a chessplayer. i have got him. so, you know, that's what i have. that's what i have, what can i tell you? he is not much of a chessplayer. reporter: [inaudible] pres. trump: i am going to see prime minister abe. i look forward to it. he is a great gentleman. he is a great friend of mine. reporter: [inaudible] pres. trump: we are going to see what happens. president moon is also a good friend of mine. we will see what happens with south korea. reporter: [inaudible] by doing further missile tests? pres. trump: no, i don't think so. i think we have a good relationship. we will see what happens. that could always change. kim jong-un has been p

cdc, china cdc, china fda, u.s. fda, can help the collaborations -- influence of surveillance that that they brings, signing an agreement for capacity, then chinese putting in more than $400 million into building these labs all over the country, more than 500 at capacity, providing data and sharing the data for both countries. see, what isen we the target? that is some of the data used for international organizations. term, if we want to address the fentanyl issues, i -- theirengage china leaders are very sensitive to international opinions, and they want to be part of the global governance. framed as at as synthetic drug problem. yesterday i saw a report saying opiates, thehe illegal opiate production, is actually in africa. tramadol. certainly we are all focusing on fentanyl but there are larger epidemics out there. bringing china in as an active player, that coalition i think will be the fastest way to get their attention and bring their priorities so it can change their policy. >> and i appreciate all of that. c

thing worse for the united states than a strong china is a weak china and if china were to slip into some sort of recession 2% growth or less because of this on going trade war, that has reverberations around the world. that will affect europe and this other trading partner but the united states, as well. yes, the u.s. economy looks fine now. consumer strong, unemployment is low but that can change. i mean, you don't go into a recession from a trough. you go in from a peak and we are at peak numbers in a lot of different areas. this is just going to make matters worse down the road. >> and again, trying to work to turn this tape around but the president reiterating what he said. he's willing to talk to china. there have been conversations before. what do you know about the state of those conversations, the state of the dialogue negotiations between the united states and china in light of this massive escalation we saw on both sides today? >> look, certainly you and i are not sitting in the room but, you know, from where we are sitting, i don't see temperatures cooling in any respect.

it cost china. now, what has happened is a lot of companies are moving out of china so they can avoid, and china's had had a rough 20... this is their worst year in 27 years, according to yesterday's wall streetjournal. i don't want that, but when my people came home, they said we're talking, we have another meeting in early september. i said that's fine, but in the meantime, until such time as there's a deal, we'll be taxing them. for more on this, i spoke to our north america correspondent chris buckler. he wants to push ahead with this in order to be tough, to try and push a deal. but the reality is, after another week of talks in shanghai that really split up without any progress, there is a sense that this is now becoming once again a trade battle in which both economies could be hurt. you heard president trump there say that as far as he was concerned, china would be paying, but actually it is american companies and therefore american customers who ultimately pay for these tariffs that are imp

stupidly lost trillions of dollars to china. we don't need china. we would be far better off without them. president blasting the country for stealing from the u.s. for decades. he is now ordering companies to do business somewhere else. the president tweeting this. our great american companies are hereby ordered to immediate start looking for an alternative to china. the president continuing his crackdown on china over illegal fentanyl being funneled into the u.s. ordering companies like fedex, ups, amazon, and the u.s. postal service to root out illegal fentanyl being sent through their services. trump saying this, they need to search for and refuse any fentanyl delivers. the president also said president xi of china promised to stop the drug flow but did not follow through on that. so, while president trump continues to unload on china he is also promising retribution for the retaliatory tariffs. but his tray advisor, peter navarro struck a different tune on fox business earlier today saying that despite china's retaliatory tariffs they are still