CHERYL: DURING THE COMMERCIAL BREAK, WANT TO LET YOU KNOW WE ARE COVERING THIS BREAKING NEWS ON THIS FRIDAY AFTERNOON SELLOFF. WE ARE GOING TO BLOW OUT OUR BREAKS. NO MORE COMMERCIALS. WE WILL TAKE YOU RIGHT TO THE CLOSE OF TRADING AT 4:00 P.M. EASTERN TIME. WE ARE JUST OFF OF SESSION LOWS MOMENTS AGO WHILE WE WERE IN OUR LAST COMMERCIAL THAT WE’RE TAKING. THE DOW IS DOWN MORE THAN 600 POINTS. S&P IS DOWN 71 AND CHANGE. THAT’S A LOSS OF NEARLY 2.5%. THE NASDAQ AGAIN, REALLY THE PRESSURE IS HEAVILY ON THE NASDAQ. A LOT OF THE TECH COMPANIES, THINK ABOUT APPLE, THINK ABOUT ALL THE CHIP MAKERS, CHINA IS THE STORY. THE PRESIDENT ORDERED, QUOTE, ORDERED U.S. COMPANIES TO ABANDON CHINA. THE FED CHAIRMAN JEROME POWELL SAID THE FED WOULD ACT APPROPRIATELY TO SUSTAIN THE ECONOMY. HE WARNED ABOUT GLOBAL GROWTH CONCERNS, HE WARNED ABOUT, YES, TRADE UNCERTAINTY THIS MORNING. HERE’S A LOOK AT THE FED FUNDS FUTURES RIGHT NOW. THIS IS THE BET, IF YOU WILL, TRADERS ARE MAKING, WHETHER OR NOT WE ARE GOING TO GET A RATE CUT. MAYBE IT’S A QUARTER POINT, MAYBE IT’S A HALF POINT. RIGHT NOW CHARNG RIGHT NOW CHANCG RIGHT NOW CHANCE OF A RATE CUT FOR THE SEPTEMBER MEETING, A QUARTER POINT, 100% CHANCE. 100% CHANCE WE WILL GET A CUT FOR THE SEPTEMBER MEETING. ALL OF THIS DEPENDS ON WHAT THE FED DECIDES TO DO. THEY ARE ALWAYS DATA DEPENDENT. WANT TO SHOW YOU THE YIELD CURVE. WE HAVE BEEN WATCHING THIS. THE INVERSION OF THE YIELD CURVE WHICH IS THE TWO AND TEN-YEAR, IF YOU SEE THIS HAPPENING AND HEAR THIS HAPPENING, IT MEANS THERE’S A FEELING IN THE BOND MARKET THAT THERE’S A RECESSION COMING. IT’S AN INDICATOR, IT’S A WARNING. IT’S NOT A GUARANTEE. BUT IT’S CERTAINLY SOMETHING YOU WANT TO KIND OF WATCH, OBVIOUSLY. LET’S BRING IN THE FORMER INTERNATIONAL MONETARY FUND CHIEF ECONOMIST MAURICE OXFELD LIVE FROM JACKSON HOLE, WYOMING. WE ALSO HAVE ANDY BRENNER. GENTLEMEN, GREAT TO HAVE YOU BOTH HERE. MAURICE, YOU’RE ON THE GROUND. I DO WANT TO ASK YOU, HOW WERE THE PRESIDENT’S TWEETS, IN PARTICULAR THE LAST ONE, AIMED DIRECTLY AT JAY POWELL, SAYING HE’S AN ENEMY OF THE COUNTRY, THE MARKET, HOW IS THAT PERCEIVED THERE?>>WELL, YOU KNOW, I CAN GIVE YOU MY REACTION. THERE ARE A NUMBER OF ISSUES IN THE WORLD ECONOMY NOW BUT THE BIGGEST FACTOR DEPRESSING GROWTH EVERYWHERE IS THE PRESIDENT’S TRADE WAR. I THINK THE PRESIDENT IS EAGER TO JUICE THE ECONOMY GOING INTO THE ELECTION. THE TRADE WAR IS WORKING IN THE OTHER DIRECTION SO HE’S LINING UP A RANGE OF SCAPEGOATS INCLUDING THE FED MOST PROMINENTLY BUT ALSO CHINA, EUROPE, YOU IN THE MEDIA. CHERYL: YEAH. WELL, WE HAVE A LOT TO COVER, OBVIOUSLY, AND THE CHINESE CERTAINLY TOOK A HUGE SWIPE AT THE UNITED STATES THIS MORNING, BUT JAY POWELL’S IN A TOUGH SPOT HERE. HE’S GOT CRITICISM COMING FROM THE PRESIDENT. THAT’S ONE THING HE’S GOT TO DEAL WITH. ALSO, HE’S GOT TO MAKE THIS A DATA-DEPENDENT CUT IN THE MEETING IN SEPTEMBER. WHAT I THOUGHT WAS INTERESTING, HERE’S THE QUOTE, THERE ARE HOWEVER NO RECENT PRECEDENTS TO GUIDE ANY POLICY RESPONSE TO THE CURRENT SITUATION. WHAT DO YOU MAKE OF THAT PARTICULAR LINE FROM POWELL THIS MORNING?>>WELL, WE HAVE NEVER HAD THIS KIND OF SITUATION BEFORE WHERE TRADE IS SO PROMINENTLY AFFECTING THE GLOBAL, THE WORLD’S ECONOMIES. I THINK, THOUGH, THAT THIS KIND OF HELPED POWELL TODAY BECAUSE HE’S ALREADY SAID HE’S LOOKING TO DO WHAT IS APPROPRIATE AND HE’S AWARE OF SIGNIFICANT RISKS ON THE HORIZON, YET HE’S GOT ALL KINDS OF FED BANK GOVERNORS WHO HAVE SAID THEY DON’T WANT TO EASE AT ALL. NOW ALL OF A SUDDEN, YOU’VE GOT STOCKS DOWN 600 POINTS, S&P DOWN 71, REAL FEAR OUT THERE BECAUSE OF WHAT CHINA DID THIS MORNING. WE THINK CHINA WAS TRYING TO SEND THE PRESIDENT A MESSAGE GOING INTO THE G7, BUT IT’S HAD MORE OF AN EFFECT THAN THAT AND IT’S ACTUALLY HELPED POWELL BECAUSE I THINK IT’S GOING TO ENABLE HIM TO GET THE FED GOVERNORS WHO REALLY DO NOT WANT TO EASE AT ALL, GET THEM IN SYNC FOR A 25 BASIS POINT CUT IN NOVEMBER. CHERYL: SIMILAR COMMENTS FROM NEIL KASHKARI EARLIER THIS WEEK. THAT KIND OF MOVES THE NEEDLE FORWARD FOR A BIGGER RATE CUT. HOW LIKELY IS IT WE GET A HALF A POINT? I ASK YOU THAT, I THINK THE NUMBERS MATTER, BECAUSE AT SOME POINT THE BANK’S NOT GOING TO LEAVE ITSELF ENOUGH ROOM IN CASE WE HAVE A REAL GLOBAL RECESSION AND THERE IS TALK ABOUT THESE CENTRAL BANKS AROUND THE WORLD MAKING THESE STEEP CUTS. YOU HAVE NEGATIVE RATES IN EUROPE. YOU CAN ONLY GO SO FAR.>>YEAH. I THINK THAT ENCAPSULATES THE CONFLICT WITHIN THE FEDERAL OPEN MARKET COMMITTEE. THERE ARE THOSE WHO WOULD LIKE A STRONG PREEMPTIVE CUT TO AVOID GETTING TOO CLOSE TO THE ZERO INTEREST RATE POINT. THERE ARE OTHERS WHO WOULD PREFER TO WAIT UNTIL THEY SEE THE WHITES OF A SLOWDOWN’S EYES. CHAIR POWELL AND HIS SPEECH, HE REFERRED TO A NUMBER OF RISK FACTORS THEY ARE MONITORING. THE CLOSELY RELATED FACTORS OF MUTED INFLATION, TRADE WAR AND SLOW GLOBAL GROWTH AND ALSO REFERRED TO RISK MANAGEMENT BY THE FED. I THINK HE’S LEAVING THE DOOR WIDE OPEN TO MORE CUTS THIS YEAR, PERHAPS A FRONT-LOADED CUT IN SEPTEMBER, AND CERTAINLY IF THE KIND OF TURBULENCE WE ARE SEEING TODAY CONTINUES, WE WILL SEE IT IN THE ECONOMIC NUMBERS AND THAT WILL JUSTIFY SOMETHING AGGRESSIVE. CHERYL: WE ARE GOING TO BE GETTING A REVISION ON Q2 GDP, THAT WILL ACTUALLY BE NEXT WEEK, NEXT THURSDAY, I BELIEVE. IF WE SEE MORE PRESSURE ON GROWTH, AND AGAIN, IF YOU SEE EMPLOYMENT AND INFLATION WHICH OF COURSE ARE THE FED’S ACTUAL MANDATES, NOT REACTING TO POLITICS OR TRADE, THAT COULD REALLY BE A GAME CHANGER, NOT JUST FOR THE COMMITTEE BUT FOR THE MARKETS.>>YEAH. THE WAY I SEE IT IS THERE’S NO RECESSION ON THE HORIZON FOR THE U.S. ECONOMY. CONSUMER GROWTH CONTINUES TO BE VERY STRONG. IT’S 70% OF GDP SO WE’RE NOT GOING INTO A RECESSION. EUROPE, ON THE OTHER HAND, IS ALREADY IN CRISIS AND WITH THESE TWEETS TODAY GOING BACK AND FORTH, I’M JUST AFRAID ABOUT WHAT THE ECB IS GOING TO DO ON SEPTEMBER 12th AND WHAT WE MAY DO TO FOLLOW THEM ON SEPTEMBER 18th. IT COULD REALLY BE AN UGLY SEPTEMBER. CHERYL: YOU KNOW WHAT, MAURICE, HE BRINGS UP A REALLY GOOD POINT. G7 IS THIS WEEKEND. THE PRESIDENT IS GETTING ON A PLANE ABOUT 10:00 P.M. EASTERN TIME HEADING OVER THERE. THIS IS GOING TO MAKE FOR AN INTERESTING 48 HOURS. IT COULD BE REALLY A CRITICAL 48 HOURS FOR THE MARKETS, NOT JUST WHAT’S HAPPENING IN THE G7 BUT ALSO WHAT’S HAPPENING IN HONG KONG. WE ARE NOW AT 11 STRAIGHT WEEKS OF PROTESTS THERE.>>WELL, LOOK, THERE’S HONG KONG, THERE’S THE POSSIBILITY OF A NO-DEAL BREXIT AND THAT WILL BE SOMETHING DISCUSSED AT THE G7. THERE’S THE TRADE CONFLICT PEOPLE AREN’T FOCUSING ON BETWEEN KOREA AND JAPAN WHICH IS REGIONALLY QUITE IMPORTANT. THERE’S A LOT IN THE MIX HERE. AND YOU KNOW, THESE G20, G7 MEETINGS HAVE BEEN FEATURING A LOT OF DISCORD IN THE PAST. LOOK, WE KIND OF HAVE FOCUSED ON CHINA HERE IN TERMS OF THE TRADE CONFLICT BUT DON’T FORGET, THE PRESIDENT HAS THREATENED OTHER TARIFFS ON EUROPEAN CARS. SO THAT COULD COME UP ALSO. I THINK IT WOULD ADD TO THE KIND OF TERROR WE ARE SEEING OUT IN THE MARKET. CHERYL: MAURICE, YOU LOOK NICE AND RELAXED.

100 thoughts on “Dow plunges after Trump tells US firms to sever ties with China”

  1. I hope some economists could mathematically create a system by which these markets can be prevented from influencing and manipulating the markets whimsically

  2. Communist China is the single most dangerous enemy  of human freedom, democracy and western civilization even above Islamic jihad!

  3. The Globalists Fed….The Whole World Reserve Are At Zero Rate Or Negative Rate…Why U.S. Fed Rate Still At 1.5 ???? Powell Is Purposely Keep America Rate At A Disadvantages Rate…To Drive Down Our Economy….Enemy Of America

  4. The company I retired from shut its China factory down over a year ago. China has been stealing company's manufacturing technology for years. Our industry can't afford to stay in China. America will win this trade war. Obama allowed China to operate like a thief. But stupid consumers blame TRUMP because demacrat politicians tell the idiots one lie after another. Demacrats let China steal billions of dallors every year. why? Because China paid Obama to ignore this.

  5. so what…what goes down, will ALWAYS go up! Do people actually know that investors make money when the market goes up, and when it goes down.

  6. America was founded on can do people and until the 20th century we were undeniably the leader of the world. It was during the Clinton years that America transferred our technology and selling American soil for money. Look at Al Gore and his business dealings with China. Then All other presidents followed suit like the blind leading the blind expect a blind person would have intense other senses. Commonsense has left our government a long time ago. Now we have a president who is willing to be criticized, called names, and meets opposition on both sides of the aisle. I am glad we have a president that is willing to fight for us no matter how hard it is to take a stand.

  7. The President is a moron and doesn’t really have a clue WTF he is doing. One thing he forgets about with his stupid trade war is all the Chinese investment here, which because of his stupidity is starting to dry up. We’re talking billion&billions&billions of dollars, all the way from university students (who contribute billions just on there own to our economy) to tourists, and big investments. The President is an idiot.

  8. Ha ha Ha WAIT !!…. TELL US BUSINESSES NOT TO DO BUSINESS WITH CHINA Hold on now you can only Do That if The GOVERNMENT CONTROLLED THOSE BUSINESSES WAIT isn't that socialism PUT A SPIN ON THAT FOX NEWS YOU IDIOTS THIS IS WHAT YOUR PROMOTING LOL

  9. I am willing to pay more for made in the USA. If you are a US company and want to sell here you make something here. America first!

  10. The Fed, in its own way, was just asking Betos question, which is of course was, WTF ? The same question, the world is asking?

  11. China sells junk. EU and the other G7 should also drop the trade with China. They are trying to play the economy/trade market and also trying to boost socialism

  12. Finally a President with courage buying China only helps China buying American helps Americans only the rich prefer China cheap goods high profits

  13. We have been in a trade deficit for years losing tons of money overseas. Imagine if other presidents would’ve stood up to China how well the US economy would be doing today. That trickles down to our paychecks and taxes and effects each one of us directly. Do your homework

  14. If the three previous presidents had done their job and didn’t cater to China but looked out for the interests of the USA we wouldn’t be in this predicament !

  15. America better tighten their belt…it is going to get worse before it gets better……China is looking at the other party and hoping they will win by 2020 and the position they are looking at is beyond 2020 as in the new President will be somebody new……and if China is looking at the MSM…..and whomever is talking with them….they might actually believe crashing the economy….as somebody is calling for….might be the only thing that can remove Trump from office and trade will be back to status quo…..LOL….."Becareful of what you wish for, you might actually get it."….LOL……

  16. China is criminal, we don't need them at all. Europe is socialist and stupid, they can cut taxes which will both stimulate their economy and increase tax revenues.

  17. Trump filed bankruptcy 4 times in his businesses and I hope that he is not trying to do the same with the American economy. The President is a moron.

  18. They need to build a wall between trump supporters and their cousins and Mexico is not going to pay for it. You gullible inbreds

  19. American manufacturers relies on cheap labor for profits and cheaper materials to reduce cost of the final products. Companies have already started moving their manufacturing to other countries to avoid tariffs.

  20. If the US loses this battle with China then the US will have conceded it's position as the leader of the free world. Do not depend on European support, except for Britain, as there has always been an anti American bias amongst the leftist there, including the very days when their next meal was dependent on the US.

  21. The market will be fine. They always overreact and then the media promotes the fear factor for the drama and ratings. Consumer confidence is still high and people are spending. Employment is at record levels and wages are going up. I'm not worried about this. Trump is doing the right thing with China and if he could move the supply chain away from them it would be a win for the American people.

  22. China has been enslaving it's people in their factories. Stealing US tech without consequence
    All kinds of other human rights violations. Where is the UN on this stuff. At least the US has some sense about them.

  23. DEMS are pushing for SOCIALIST / COMMUNIST so they must be COLLUDING or better said…..CONSPIRING with CHINA……INVESTIGATE ALL THE HATERS IN CONGRESS!

  24. I am so proud of the president for working so hard for America we should cut ties with China they are a communist country and a threat to America keep fighting mr. President for the US God be with you…!!🇺🇸

  25. Trump's Tarriff War is Personal War on China .
    Continued Support for Trump leading Economy into Hardship and Hard Landing.
    Trump has no Economic Sense.
    Only Nonsense.

  26. Severing ties with China is an absurd idea. Our country is being run by imbeciles. I can't believe Trump and people like Larry Kudlow are considered the adults in the room.

  27. President Trump said that Chinese exporters need to pay these tariffs. Is his economics taught by P.E. teacher? It is the United States that has forced China to increase taxes, rather than China’s initiative to increase taxes.

  28. MSM has been talking up a recession so people will quit spending money and cause one. Companies are running scared because they will be caught with their pants down supporting China. Trump's long game with China will win. Company short game with China will lose. China is sinking fast and they are trying to save themselves, if the stock market reacts to every move they will lose as China drowns. If the investors would quit over reacting they would have bigger gains, they are idiots.

  29. More of the same b.s…

    Who is this program geared towards? People without a clue…

    Fed should have cut rates, and as much as I wouldn't want to admit it Trump was absolutely right on the Fed screwing this up from the start in 2016/17

    It's called competition and your first guest is clearly inept on that point.

    Last, wake me up when the Dow drops below 20k so I can make some more $$, because everyone freaking out over this clearly are the ones w/o a clue as to what to be doing right now…

    The Bankers are screwing Americans right now, and y'all are doing a horrible job reporting on the truth of the matter.

  30. I'm glad I don't depend on China, and glad that we have had warning to leave. Those with loved ones in China, or those that are US citizens need to vacate. Companies in China need to transfer production to other countries, preferably out of Asia. To wait may be a disaster, as in a communist country, everything belongs to the government. When a physical confrontation begins, the US needs to seize Chinese assetsas they will have already seized US assets in China.

  31. Uh oh, the stock market is down! Submit to Red China!

    It won't be so bad being a serf in a world run by the People's Liberation Army. Really!

  32. Light bulbs are only mass produced in China!!!
    Think about that before the orange clown and his goldigger cuts off his nose to spite his face!!!
    If we cut off china the usa will go dark so you better buy wax and oil lanterns the price of candles and oil will skyrocket!!!

  33. Short-term pain, long-term gain on China. Lower interest rates is good for the working class, increased consumption. Tariffs bringing jobs to USA and ally countries, supply chains are being withdrawn from China. More tariffs next month, China will suffer dearly for its arrogance and world bullying.

  34. Great job Mr President we have a President to stand against big American business in China, bring business back to America, stop buy goods from China.

  35. China is like cheap narcotics for US and Europe, so much dependency there for all kinds of goods, many of which are produced in China by AMERICAN and EUROPEAN companies. It’s like these American and European “renegades” operating in China, are working against the American labor market back home, taking their jobs. Let’s bring American companies and American technology, quality, and work ethics, back home to US.

  36. China want the negotiation, usa want to bully China, told the whole world, trade war is easy to win. China still warn usa donot paly this game will damage both………………….. Fox people must review the whole story first.

  37. This dumbass promotes hate with every breath he takes I don't understand how any decent human being thinks that his dumbass has enough sense to make America great ever,! I wish for peace and love and Trump to go away !!!!!!!!!!!!!!!

  38. Who asked the Chinese to make the iPhone for $25, so that they could sell in back in the US for $800 making 100% profit on the deal?

  39. Courage. It’s going to be a long haul. Let’s hunker down and rachet it up to 50%. We should all rearrange our supply chain

  40. China does not produce goods !
    China only produce bads !
    Just about everything they supply is junk. Cell phones, computers, TV's, and other tech stuff must be easy to make, seems like the only stuff they can make any good. Just imagine if all that tech stuff was made in the USA Canada and Japan. I'm sure it would be much better.

  41. 美国人:妈的,血汗工厂造反了,被老子打了竟然敢还手。我们需要换一个奴隶了。

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