Transcripts For FBC Mornings With Maria Bartiromo 20240714

Dagen a big show this morning everybody. Of course well be covering the weekend shootings in el paso, texas and dayton, ohio. And the political call even the nationwide call for something to change. Joining the conversation this morning, barons associate editor, jack howell, lee carter and mitch rochell. Welcome, all. So much to cover. So much to cover. I dont even know where to begin today. Dagen a somber morning for this nation, most certainly. Lets start with trade and whats going on in the market. So our top story, trade tensions, Global Futures and markets around the world, u. S. China trade talks at a standstill and possibly taking a step back. The chinese yuan taking a step back, many see it as a response to President Trumps planned tariffs and a sign that any trade agreement is on hold. China hitting American Farmers, asking china asked state owned companies in that nation to stop importing american agricultural products. This is according to bloomberg news. China denying the accusation. What is the reaction to this selloff, the collapse in the yuan, helping to offset any tariffs put on chinese goods because, again it offsets the 10 or 2 a 5 25 tariff thats e introduced. Bilateral trade between the u. S. And china is off 14 yeartodate. Clearly, their economy is suffering. That move is a Counter Measure to the tariffs. Theyve been doing it for a year now and its clearly sending shock waves through Global Markets because baked into i think all equity markets was this notion that something would get resolved with china, even if it was symbolic. I think right now the markets saying all bets are off. Thats why traders are taking risk off and going towards safe assets like u. S. Treasury. Dagen theres a story in the wall street journal, that trump ordered the chinese tariffs over objections of advisors, that he was ignoring the adds vice of some of advice of some the people in his cabinet or ad vicars and doing this kind of on the fly. Does that add to uncertainty here, that were dealing with a well, maybe this is not a news alert but an unpredictable president. What . Hold on a second. Yeah, its the expectations versus the reality. So these new tariffs, financially theyre not the biggest deal. They might cost 1 of s p 500 earnings which in the context of not having much Earnings Growth right now, i guess its kind of a lot. But we thought that there was a truce and the conversations were ongoing and the market had priced that in. Now what we have is the possibility youre talking about the currency, is china going to retaliate, are we going to retaliate, is this going to go on and on and on. I think the average american gets what were trying to do but they dont know how big this is going to get. Dagen speaking of average folks, we talk a lot about the high level impact of the trade turmoil. We took to the streets and asked everyday folks how their lives would change if the latest tariff threat goes into effect. So listen to this. All the cost of living is going to go up. And if people are still making the same amount of money and they have to buy the same things at a higher rate, then its not really sustainable. Im sure its going to impact a lot of people that cant afford to buy these type of clothes and items on a daily basis. Sure, its going of to impact everybody. I look if its made in the United States and i will support anything the president says. I dont see any need for these tariffs. All these deficits that hes claiming are wildly blown out of proportion. The trade war is hurting the farmers. Seems like nonsense to me. Dagen lee, this is what you do for a living. What has your research shown . Again, folks are very, very up on the real world impact and they had some very informed views on whats going on. Theres no question, when people know that when its going to impact their bottom line, theyre going to know that its going to hurt and i think people know that this uncertainty hurts them. And so to the extent that individuals are out there concerned, i think that it is about what does this mean for our pocketbooks, what does this mean for my grocery bills, what does this mean overall. I think people are looking at this and saying this is slightly different. Trump used tariff as a bargaining tool for a while. They said i would never want to play a game of chicken with the president because he will go right to the edge. This seemed less like a game of chicken, more of an impulsive response. I think were in a bit of a different boat. I think people are right to be concerned about what that means for the markets, what that means for their pocketbooks and their bills. It will be interesting to see what this means with other trade alliances, what may happen for china and russia and other places like that. I think theres a lot to be concerned about. Dagen the longterm Investment Decisions made by corporations, that is one of the biggest issues because, again, its not just youve seen a pullback in Business Investment. That was in the Second Quarter. Youve seen factory orders weak month after month this year. And then you have the businesses could eventually decide to start laying people off. This is my favorite quote from last week. Uncertainty is the enemy of longterm Investment Decisions. Who is to guess what the trade policy environment will be. This is from one of this president of titan steel. We were sitting here a year ago talking about the same topic and that underscores the uncertain at this moment Business Owners cannot uncertainty. Business owners cannot make decisions when they dont know what the future holds. We just came out of tax reform. Finally they think they understood something and then we got hit with trade uncertainties. Thats why Business Investment is gone. Dagen lets take a look at bitcoin, climbing above 11,000 as markets feel the trade tension. You know what is the biggest lets take a look at the 10 year treasury yield and what that is doing this morning. Mitch, where was it this morning . Can we show the 10 year treasury yield . Again, you want to talk about a flight to safety. It was at 1 point it was one, seven,. Dagen below seven, eight. How much longer is this going to last . Are americans feeling the benefit of the lower Mortgage Rates. Absolutely not. Were already down to a level where the next increment lower doesnt matter. Theres no one out there looking at a piece of business they want to do at a 4 Interest Rate and say im going to hold off for three and three quarters right now. The stimulative effect is gone. We have negative yielding bonds across europe, thats going to make our currency lower. Bitcoin, buying treasuries thats a flight to safety. Buying bitcoin, to me, thats a flight to nonsense. Dagen thank you. Im so glad youre here this morning. I dont have to say it. I wonder how you feel, jack. Dagen you have an article really quickly in barons titled the retail reckoning has only just begun. You write now is not the time for patience with companies showing poor results while talking about a turnaround. Think of this as a opposite of a bank stress test. Stores that are currently struggling under sunny skies could collapse during the next rain or before it. Gymboree, payless, shoe source, theyre not the only he retailers to file for bankruptcy protection this year and certainly will not be the last. Which other ones are you looking at, do you think . There are companies out there that are in difficult shape financially. I dont want to talk about companies having a liquid at this strain or Something Like that, that becomes a self reinforcing thing if i say it on tv. We can look at retailers that dont have sales growth, arent getting it done right now. This is not retail armegedon. Retail sales could increase 3. 5 this year. The American Consumer is pretty strong, unemployment low, Consumer Confidence high, were overstored in america. We have 23 square feet of store space for each person in the country. Theyve got four in the u. K. We built too many malls. We built too many stores. Well have to go through a decade of closing stores. But the Retail Business is still going to people will buy online. Consumers will still be strong. Ill give you a sound bite that went in your business. Were overbuilt and underdemolished for retail in the United States. Dagen this is not just chains like that. Barneys for example is struggling because they have again, its about real estate. They signed a terrible lease and the cost just leasing the store on madison avenue will its crushing. When i see a jc penney, look, i love jc penney, thats where my mom bought my school and Church Clothes when i was a kid. Why do we need jc penney in a world where we have too Many Department stores many people arent going to malls for that store. Dagen final word from you, lee, on confidence in this environment. I think an interesting thing is the confidence stayed extremely strong despite all this uncertainty. So i think when you look at the American Consumer, theyre feeling good about their pocketbooks, about the future and i think its going to be fascinating to see which of the democrats is going to be the one thats going to emerge because thats going to have so much to do with how people are going to react because i think that the democrats in many cases, especially the more progressive ones, are trying to convince us all that the economy isnt working. Its working for the wealthy and working for companies, not working for everyman. I dont think thats the way people out there are seeing it today. I think people are feeling really got bowe about it. Dagen they need to write better talk about about people feeling uncertainty. I watched bill maher over the weekend. Congressman jeffreys was on. Sounds like he was reading from the talking points that everybody was reading onair. You cant tell somebody that feels good that they dont feel good. Dagen exactly. El paso texas left in shock, this nation left in shock after the deadly mass shooting at a walmart saturday morning. Jonathan serey is there this morning with the latest on if investigatioon theinvestigation. Reporter the alleged gunman is held without bond, charged with capital murder in connection to the deaths of 20 people who lost their lives at the walmart. Federal authorities are investigating whether the defendant authored an antiimmigrant online post as they consider domestic terrorism and hate crime charges. The fbi is interviewing acquaintances of the defendant in the dallas area. So through those interviews were putting the investigation together to be able to determine if he was part of group or working with other individuals that were planning any future attacks. At this point we dont have any credible intelligence saying theres anything going on in the future. Reporter a video posted on facebook shows the inside of the walmart when saturdays gunfire broke out. You can see someone hiding under a shelf as you hear shots being fired. Over the weekend, el pasos county sheriff wrote about the shooting on his personal Facebook Page, Richard Wiles rights this man came here to kill hispanics. Im outraged and you should be too. This entire nation should be outraged. In this day and age, were confronted with people who will kill another for the sole reason of the color of their skin. Last night, beto orourke who used to represent el paso in congress joined hundreds of residents for a silent march and vigil in honor of the victims. We bore the absolute wors wof it in a community for the last 10 years which averaged 18 murders a year, for the entire year, we saw 20 people gunned down in one day. Reporter President Trump is expected to issue a statement on the recent violence across the country from the white house. Thats scheduled at 10 00 this morning. Back to you. Dagen john than, thank you for that jonathan, thank you for that. And just hours after the attack in el paso, nine people shot and killed, dozens more wounded, in dayton, ohio. It happened around 1 00 a. M. Sunday morning in the downtown area of dayton. Police say officers took down the gunman within about 30 seconds of him firing his first shot. Dayton police chief richard biel on twitter saying this. We dont have the answer as to why and probably wont for some time. This will be long and tedious investigation. Well be right back. Dagen hong kongs leader speaking out as more violent protests hit the city, disrupting travel in and out of the area. Cheryl the Pro Democracy Movement is holding a general strike today which is causing more than 200 Flight Cancellations there and major traffic disruptions. In her first Public Comment in two weeks, hong kongs chief executive carrie lamb said the city is becoming dangerous and unstable. Such extensive disruptions in the name of certain demands or uncooperative movements have seriously undermined hong kongs law and order. Cheryl well, lamb maintains that she has no plans to resign. Well, iran seized another foreign oil tanker in the persian gulf. The country said its revolutionary guard seized the iraqi ship accused of Smuggling Oil and detained seven crew members there. This is two weeks after they seized a british flagged oil tanker in the strait of hormuz. Sales of Huawei Smartphones are jump in china thanks to a, quote, patriotic buying spree. This is according to a Market Research firm. Sales surging by nearly a third in the Second Quarter, despite a u. S. Blacklist on the company. Speaking of phones, Chinese State media reports huawei is testing a smartphone that has its own operating system. It could go on sale by the end of the year. We should add that smartphones from huawei around the world are picking up in popularity and its because of the cost. Theyre cheap, very cheap phones. Dagen and for that low, low cost, you basically trade your. Cherylyoursecurity, your nationy for cheap gear from huawei. Thank you so much, cheryl. The whole patriotic push in china, so far in apples Earnings Report last week, apple wasnt that hardt hi hardhit a but the question is, is there more pain to come for apple in china. The options are a so south korean phone or american phone, maybe theres a marketing push to drive sales domestically. To the point you made, they are much, much cheaper and around the world theyre ubiquitous. In some cases, theyre half the price of the things were Walking Around with. Dagen i bought an apple iphone over the weekend, figure get ahead of the tariffs. No, im just joking. [ laughter ] dagen i dropped the mull monte on that one. The full monte. Whats interesting is the disinformation campaigns that the government or whomever in china will start about american companies. There are a number of american and Foreign Companies in china that experienced that in the past. Theres no question. Theyre very good and very disciplined around that. Theyll rally around the same message which is very important to get it out there for them, dangerous for us. Dagen ill get your thoughts coming up. Thank you. Shipping wars, ups and fed ex ready to deliver packages seven days a week. Weekend workers might have an issue. Details, ahead. Bring your own bottle, one airport nixing sales of certain water container contain cont. Stay with us. vo the hamsters, run hopelessly in their cage. Content on their endless quest, to nowhere. But perhaps this year, a more exhilarating endeavor awaits. Defy the laws of human nature,at the summer of audi sales event. Get exceptional offers now. Oh, come on. Flo dont worry. Youre covered. dramatic music and youre saving money, because you bundled home and auto. Sarah, get in the house. Were all here for you. All all day, all night. dramatic music great job speaking calmly and clearly everyone. Thats how you put a customer at ease. Hey, did anyone else hear weird voices while they were in the corn . No. No. Me either. Whispering voice jamie. What . Fun fact 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. 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Some people looking at 1. 6 as where this yield is headed as there is a global flight to safety and, again, Government Debt overseas has a negative Interest Rate on it, much of it even across europe. What does that mean . That means in order to loan money to a government, you have to pay them. You dont get paid for lending money to, say, the likes of germany. Lets look at america right now and headlines across the u. S. The denver of post reporting crews responding to flash flooding on Lake Christine fire burn scar near besalt. Evacuations starting. A heavy storm reeking havoc, mud slides closing roads, cars trapped. Travel in the area is restricted. Crews working to clear the area and rescue drivers. So far, no reports of injury. The star tribune writing targets newest Incubator Program focuses on generation z entrepreneurs. The entrepreneurs selected from a pool of 400 applicants to be part of the retailers Incubator Program aimed at young Business People aiming to do good for the world and the planet. The minneapolis based retailer gave each of their companies 10,000 and had its executives teach a program where the startup founders learn about things like negotiating, branding, and pitching. Sounds like mitch and lee. [ laughter ] dagen and the San Francisco chronicle says no fly zone, sfo bans sale of plastic water bottles. Buying a plastic water bottle on the way to a flight will not be possible starting august 20th. The new rule will apply to restaurants, cafes and vending machines in the airport. Flavored water is exempt. Fliers can buy refillable aluminum or glass bottles if they dont bring their own. Okay. The wisdom of carrying a giant, heavy glass or aluminum bottle on an airplane. San fran bans straws too. Water fountains are the only option. You like that program about target . I love that. Listen, anything that teaches life skills to people. No question. Thats what we need. Dagen businesses too. Coming up, were keeping a close eye on a selloff at the open this morning. China trade turmoil dragging down the market gauges in the us. We have another big week of earnings on tap. And packages seven days a week, ups and fed ex stepping up deliveries but not weekend pay. Why the workers will be feeling the pinch. Thats ahead. Were changing whats possible every single day. , but what does changing whats possible mean anyway . Well. If you run a business, it means a lot. For starters, we provide you with Financing Options for your customers. That way, you can help them buy the things they love instantly and pay over time. And that turns them into serious fans. Hang on, theres more. Want Customer Insights . Weve got those, too. We use data to show you what your shoppers have already bought so we can tell you what they might consider buying next. 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So 10 more on the 300 billion in addition imports into the u. S. , a 10 tariff here, well, the currency falls there and that offsets the tariff on the goods imported. Get that . So u. S. Futures extending losses from last week, 323 point loss on the dow futures right now. The s p and nasdaq lower as well pointing to sharp declines at the open. Last week the s p and nasdaq suffered their worst weeks of the year following the escalation in trade tensions with china. And this is also hitting markets around the globe. In europe, we have red across the board as all the markets are down more than 1 . The hardest hit being england and french markets, down nearly 2 . In asia overnight, there were steep losses there as well triggered by trade fears and continued protests in hon hong. The hang seng is down nearly 3 , the hardest hit of the four major asian markets. Capital one data heist, the shocking new details that are coming out and the warnings that appear to have been ignored. Instagram by facebook, the social media giant branding its other popular app. We take a look at whether this is a smart move amid facebooks privacy scandal. Plus, Package Delivery wars, finding out what ups and fed ex are doing to make sunday deliveries work for their bottom line. Our top story this half hour, u. S. China trade doubts, futures pointing to a steep decline this morning as uncertainty between the u. S. And china rises. The chinese yuan plummeting to a point not seen in more than a decade, a move many see as a response to President Trumps planned tariffs and a sign any trade agreement between washington and beijing is on hold. Joining us now wealth portfolio manager, michael lee. Good morning, michael. What do you make of this . Is it shortlived this Market Reaction or are we in store for a very ugly august . Well, i can tell you that every single selloff from a trade fear or trade spat has been a great buying opportunity over the last 18 months or so. I see this as no different. These tariffs that we put on china have had little effect on the u. S. Economy. And the effect theyre having on the other side is not so much their daytoday economy, its moving the supply chain offshore, its stemming the flow of direct Foreign Investments into their country and china is in a real structural issue and devaluing the currency is only add gas to the fire. They need foreign currency. They are 15 of the worlds economy, yet less than 1 of International Swift transactions are settled in their local currency. By del valuing their currency, there will be more capital flight out of that country so its only going to make it worse. When supply chain and manufacturing decisions are made on investments into china, if you decide to go to vietnam or south america or even in the u. S. , thats a 10 or 15 year decision that cant be easily reversed. You tell me now if youre a fortune 500 company and thinking about investing in china to have a Global Supply chain out of there, are you going to pick somewhere else or china right now . Thats the real point of the tariffs. We havent seen any impact from these tariffs on the consumer in the u. S. You guys were talking about this earlier. Consumer sentiment, consumer comfort, consumer feelings, all year 20 years highs. Touching back on the tariff part of it, weve seen some softness in Manufacturing Survey data but we added 16,000 new manufacturing jobs last month. I say the selloffs and the spats are a great time to buy stocks, particularly with the 10 year treasury at 175 and dividend yield in the s p 500 at 18 a 5. We know the answers to the tests. Weve seen it before. Its time to get in the markets. I feel like this one feels a little bit different when the president has been threatening tariffs, it seemed to be more of a negotiating strategy, like game of chicken and usually worked out for us. This feels different. This feels like failed conversations, there was a standoff and hes gone against advice and hes done it. This feels different. You dont see it that way . No. Every time it happened were in unshare unchartered territory. Now, we have the wind at our sails. The u. S. Consumer is 70 of the gdp. The data is the great oft and strongest since y2k, essentially, i think we can keep going and we can keep stepping pressure up and china devaluing their currency, it may be a temporary fix to try to get a better negotiating tactic. If they do this, this will make it worse for them. Dagen let me push back on that to lees point. Lets talk about Business Investment. Business investment fell a seasonally adjusted 8 10 of 1 in the Second Quarter. Job growth has been softening. Factory activity has fallen. The factory sector slowed for four straight months ending with july. Again, that uncertainty is hard to quantify but ive been talking about it literally since the trade war started and if it impacts job growth, if it impacts investment in the United States, that is going to be ugly. Im going to pile onto that. The reason why the fed lowered rates was to not stimulate the economy to jacks point through the consumer, its really through business. Right. So if Business Investment is off, what caused the selloff was the feds action on wednesday, not necessarily trumps tweet about tariffs. So the thing that concerns me, im with dagen, is Business Investment just seems like its waning. This doesnt help. The con argument was Business Investment was so much substantially higher in 2017 and 2018 that maybe were due for a slight pullback. And again, maybe job growth has slowed a little bit but wage growth, year over year i think were up 3. 2 . Dagen which is lower than it was in february. In february. But prior to the 12 months prior, from 2017 to 2018, were up 2. 8 . Dagen the fastest rate in a decade, roughly. Were in really, really good shape. The consumer, that fuels our economy, the savings rate is up close to 8 . Were having all this spending, have all this confidence, a robust labor market and the savings rate is double what it was going into the crisis. The strong consumer, the manufacturing is not so hot, theres not a lot of Earnings Growth. You say this is a buying opportunity for stocks. I dont know that youre wrong. With stocks looking pretty fully priced here, where does that next leg up from the market come . Does it come because bond yields are so low that well push it up to 18 times earnings or will we have a resumption of Earnings Growth in a future quarter. Couple good points there. Earnings not looking so good this year. Looking better next year. Well see how it plays out. I would say earnings are secondary to macro sentiment and with the consumer booming and Interest Rate as ultra lows, weve seen this before. Weve had periods with low rates where earnings havent looked that great and stocks have done well because theres nowhere else to go. You have the rest of the world going to negative Interest Rates. I think this story has been played out on multiple fronts. You have a Clear Pathway in front of you as to whats going to happen next. Dagen its another big week for earnings. Disney, cvs, uber and lyft among those on tap to report. What are you watching for this week . What is going to be the big tell, just to your point, s p 500 earnings are still expected to slip 6 10 of 1 . 77 of companies in the s p reported and earnings are up 2. 7 i mean 77 , yeah, have reported, 74 have beaten eps. With the companies you mentioned, disney, everyone is waiting for november when they launch the streaming service. Cvs, everybody is waiting to see if theres expansion of the medical services. Tyson, its not on the top of everyones mind, thats quarter to quarter with earnings. Im waiting to see if they make a move into meatless burgers, like beyond burger. Beyond chicken. Whatever it is. Tyson talked about getting into that business. Im waiting to see if they talk that up in their earnings call. Im looking for material misses to the downside, something a that would change the overall thesis that the economy is doing good. If were roughly in line, you have ultra low expectations and wall street is literally perfect at setting expectations really, really low and just beating them and saying look how good i am, so i think were going to get more of that this quarter and then some acceleration in the end of this year and into next year. Dagen to dean johnson on twitter who is watching the program who called me a doom sayer, no, im not a doom sayer. The market last week, worst week for the broad market this year. Futures this morning, down, bad. Thats not doom sayer. Thats fact. Thank you so much, dean. [ laughter ] dagen i just wanted to say that. Again, consumer is awesome. Business investment 70 of the economy. 70 of the economy. Dagen a little shaky. Thats fair and thats balanced and thats mike lee. Thank you so much. Hsbc planning to slash thousands of jobs. Cheryl has details. Cheryl thats right. Hsbc said it could cut more than 4,000 jobs. Also they announced ceo john flynn is being replaced after just 18 months leading the bank. Hsbcs global commercial banking head will serve at the interim chief, hsbc releasing Second Quarter earnings. They posted a rise in their profit. Fed ex and amazon are gearing up to deliver packages on sundays. The wall street journal reports the companies are going to have to pay sunday drivers less compared to those who work monday to saturday. They say the lower paid workforce the best way the companies can turn a profit and compete against amazon and i should say im talking about fed ex and ups. They will both roll out the expanded schedule in january after the Holiday Shopping season. Then there is this. King tut getting a makeover. Egypt has begun the first ever restoration of king tuts golden coffin. Officials say the work will take at least eight months. A british archeologist discovered the tomb back in 1922. It will be on display as part of the new Egyptian Museum scheduled to open next year. As i send it back to you, i will sing the Steve Martin King tut song in my head. Dagen any day is a good day if steve martinis part of it. Thanks so much. New details on the capital one data heist, warnings before the hack. They might have been ignored. Details ahead. Plus, app by facebook, the social media giant looking to rebrand to help with transparency. That story is ahead. 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Side effects include nausea, diarrhea, vomiting, belly pain and decreased appetite, which lead to dehydration and may worsen kidney problems. I have it within me to lower my a1c. Ask your doctor about trulicity. Fun fact 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. You can get your Interest Rate right by locking in a fixed low rate today. And you can get your money right. With sofi. Check your rate in 2 minutes or less. Get a nofee personal loan up to 100k. Dagen welcome back. We have a major selloff in the making to start the new week, a 326 point loss on the dow futures. Steep declines on the s p and nasdaq as well, losses of more than 1 on all three major market gauges, a rush to safety. You see the yield on the 10 year, money pouring into bonds. Bond buying going on. The yield on the 10 year treasury falling below 1. 8 as investors rush for safety. And rush out of stocks. Amid multiple privacy and content scandals, facebook is changing the way it brands its apps, all in the name of transparency. Deirdre bolton has all the details on this one. What did you make of it. Deirdre good morning. Good morning. Facebook saying im going to read it, we want to be clear about the products and the services that are part of facebook. We know for the past two years this company has had pr disaster after pr disaster, cambridge analytical, the runup to the 2016 u. S. President ial election. So the idea now is facebook is facing an investigation by the u. S. Ftc as to whether or not facebook has made acquisitions with the goal of squashing competition. Facebook is basically trying to take a step in the right direction, be more transparent. The trick is going to be for people who enjoy using instagram, whoe enjoy using whats app because its not branded as facebook and facebook guys have when you go on the apps by facebook, from facebook. Theyre saying young people wont want to use it anymore because they think of facebook as their grandparents way to show pictures of cats, dogs and grandchildren and it becomes less cool. Thats something for investors to keep in mind. For all of facebooks problems, yeartodate, by far the best he performing fang stock, up 44 yeartodate. Apple is up 29. 5 . Facebooks stock is doing he ververywell. Dagen what do you make of it, jack . They say its about accountability. I think it might be about pride. The core of facebooks property isnt where the growth is, its in instagram. You want your name attached to that so people see youre not this square deirdre the ones that are working, do you drag those down . Everybody keeps saying theyre going to turn away from facebook. It is not at all reflected everyone is full of beans. Theyre going to facebook more and more and its other various properties. The numbers show that. I think its interesting. Is it going to lift facebook by being associated with those . People dont understand its instagram and whats app. Does facebook get elevated by being associated with them. Thats what theyre hoping. I dont think teenagers love the facebook brand. They dont. They may not post on instagram but they get a a lot of information on instagram. They find out whats going on and theyre influenced by influencers. Yes, thats very true. Which is part of the value proposition. I dont think putting the facebook name on it will change it. Dagen theyre testing getting rid of the likes. I read an article over the weekend that influencers are losing their beans about because it wont to the public, you wont be able to see oh, how many people liked this post from one of the that will change the competition between kardashians. Dagen i just always like bringing this up. Facebook bought instagram in 2012 for 1 billion. I know. Dagen thats like pocket change. It was worth 20 times 24 months later. Dagen thats like subway money for facebook. Thank you so much. Coming up, the capital one data breach, we take a look at how the alleged hacker was able to sale so much data from the cloud, accessing millions of peoples information. The warning signs ignored, next. Introducing the allnew chevy silverado. With fifty industryfirsts. Its the strongest, most advanced silverado ever. Hey i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Dagen Paige Thompson, the woman who allegedly pulled off one of the largest ever bank data breaches, appeared to have exploited a vulnerability in the cloud that Security Experts have warned about for years. Joining us now, morning anchor for fox News Headlines 24 7 on sirius fm115 brett larson. Not a phishing scam surprisingly, just found a hole in the cloud services. I think this will probably in time become a bigger story because so much of what we do today, whether we know it or not, is cloudbased. Our email is in the cloud. Our photos are in the cloud. A lot of personal data is stored in the cloud if you use drop box or google drive. So the fact that this hacker, this Paige Thompson was able to find this security hole and get in without actually she didnt go into a capital one, she didnt flip somebody a thumb drive or email an economic testify a scam to say an executive a scam to say click here. Amazon is saying this is on you, our services are perfectly safe, capital one is saying no. If youre a capital one customer, you may want to log in and check and make sure your stuff is safe. Hackings happen so much now that i think no matter what, whether it is your bank or your credit card or your equifax data that was breached, have you to be a savvy consumer and have you to Pay Attention to log into your bank account once a week, make sure the charges on your credit card are things that you did. Because we really dont know anymore who has our stuff and what theyre doing with it. Dagen is capital one offering all customers free Identity Theft oversight for a year, which is something that we often see . I havent seen that. I have a capital one account which i probably shouldnt admit on the air because now Everybody Knows where i bank, but i havent seen an email about it from capital one. It may not have affected me. Dagen have you gotten an email saying our data was breached. I didnt get that i did get it from the equifax. Everybody got that. It was 116 billion people. Dagen nothing to see here. Nothing to worry about except well give you protection for the next year. Dagen how do you think the response has been . I thought it was not good at all. I do have a piece on fox business. The only thing i think they did well was somewhere in the middle of it the ceo apologized for what happened. It was not a strong response at all. You need to be in front of these things of you need to the moment you hear about it, you should be front and center, telling every single customer you have whether or not it affected them, saying were aware of the situation, were working with security people, bringing in an outside firm to investigate our security practices, these are our best practices. Thats only way to do it. Dagen brett larson, thank you. Every morning brett, fox News Headlines, 24 7, sirius xm 115. Were closely watching markets, a global selloff in the making. Take a look at the u. S. Futures. Plus, teslas super charged offer, that is straight ahead. We all feel, we all love, we all cry. Its part of being human. Sonoma county declared a homeless emergency in 2018. You have to know the individuals youre serving to understand their needs. Working with ibm watson we can bring together data spread across dozens of departments. That gives us a fuller view of the people we serve. 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Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Dagen good morning. Im dagen mcdowell, in for Maria Bartiromo. Its monday, august 5th. Your top stories 7 00 a. M. Eastern. Global markets selling off on china trade turmoil. China devaluing its currency to the lowest level in more than a decade in a move to take on President Trumps additional tariff threat. U. S. Futures extending losses from last week, pointing to a steep selloff at the open, a 336 point loss on the dow futures, s p and nasdaq futures sharply lower as well. The s p 500 and nasdaq last week suffering the worst week of the year following an escalation in trade tensions with china. These worries also hitting markets around the world. In europe, we have red across the board. The ftse 100 in england and the cac in france, now down more than 2 . In asia overnight, steep loss as well. The biggest loser there, the hang seng in hong kong losing nearly 3 . Some of that was in relation to the protests there and basically gridlock, a stand still in transportation in the region. In china, the currency, the yuan dropping to the lowest level in more than a decade. It fell below the critical level, 7 yuan to the dollar. This could be chinas answer to the latest tariff threat. Again, you cheapen the currency, it offsets the 10 tariff on deck on that 300 billion of additional imports into the u. S. You get that . Ill explain it more. Plus, the country in mourning, two Mass Shootings in a matter of hours. 29 people gunned down in total. President trump just tweeting this. We cannot let those killed in el paso, texas and dayton, ohio die in vain. Likewise to those seriously wounded. We can never forget them and those many who came before them. Republicans and democrats must come together and get strong background checks, perhaps marrying this legislation with desperately needed i immigratin reform. We must having good, if not great come out of these two tragic events. President trump is expected to make comments later this morning, about 10 00 a. M. Eastern time. It will be fascinating to watch what happens in terms of Gun Legislation in the days and weeks and months ahead. All of that and so much more coming up this morning. With me all morning long, jack howe, lee carter and pwc partner mitch rochell. Welcome one and all. Our guest is already at the desk, on deck. So lets move on to this fine gentleman. Our top story this hour, trade fears tearing into Global Markets, futures lower. China retaliating against new u. S. Tariff threat, devaluing the yuan to the lowest level in more than a decade. Its taking aim at American Farmers. Theres a report out that says chinas asking state owned companies to stop importing u. S. Agricultural products, l signaling a trade truce may be far out of reach. Joining me now, former wall street Journal Editorial Board member and trumponomics coauthor, stephen moore. What do you make of the Market Reaction . Is it an overreaction to the 10 tariff threat on the 300 billion in additional goods that we import from china in. Its an overreaction. Look, im not in favor of these tariffs but youre talking about a 10 tariff on 300 billion, thats a 30 billion tax. The market lost a trillion dollars in value. This is an overreaction. I want to make a point about something you just said about the fact that the chinese are devaluing the yuan which is a retaliation. Theres a big dispute now about who is actually paying the cost of these tariffs. Some people say its all borne by American Consumers. Others say the white house saying its borne by the chinese. When youve got the chinese devaluing their currency, as a result of this, what that means is the chinese are paying the cost of this. Because theyre devaluing their currency as a way to offset the tariffs which means that the chinese are bearing the huge impact of this. Now, im not saying American Consumers arent paying a cost. They are. But this idea that American Consumers are bearing all the cost is flatly wrong. Goldman sachs had a report out, americas bearing the whole burden. If that were the case, why would the chinese care if we impose tariffs. Dagen when we use the word cost, the president often brags about the money that our treasury is collecting. Sure, yeah. Dagen that dollar, the 25 tariff on the initial tranche of goods, that dollar is paid, actually paid to the treasury. No, no, no, dagen, wrong. A kim things. First of all, if the chinese dagen who is paying the money . The chinese are. Theyre devaluing their corn civil that means their currency. That means theyre selling this stuff at a cheaper cost. Who is bearing the burden of that, the chinese producers are. If china if they could just raise their prices by 10 or 25 , they would just do it. Right. So some of the cost of this is being borne by the chinese. Im not defending the tariffs. Dagen people who import goods into the United States are paying those tariffs to the Treasury Department. Thats true. Dagen thats the only point im trying to make is when the president brags about the money the Treasury Department is collecting, it is importers into the United States that are not if the chinese cut their cost by 10 . In other words, if they cut their price by 10 to alleviate the demand impact of the tariff, in fact the American Consumer is paying the same price. Dagen im talking about the explain who is paying the money into the Treasury Department. The consumer is. But my point is, look, if something from china costs 2, right, and the chinese basically are now selling it at 1. 80 dagen i get that. When the president is bragging down the taxes collected by the Treasury Department, somebody is actually paying that and who is it . Its the consumer, its the business who imported it. No, no, no, the business lowers its prices, then tech any l cal technical mat. Dagen as a technical matter, who is writing the check to the Treasury Department. Its either the consumer or heres the bigger point. I think theres a strong chance that were going to get a deal with china before the end of this year. A lot of whats going on now, and this is why i think the market is overreacting, is this kind of theatrics thats going on, both sides digging in and its like the similarity of you ask a woman to marry her. She could say no, no, no. All have you to toys get her to all have you to do is get her to say yes once. Dagen you ask me enough, you look desperate enough, ill never marry you. Thats a danger ming i wan t. Theres a story in the wall street journal that President Trump ignored most of his advisors on this additional 10 tariff threat. That mnuchin and lighthizer went to china and it was a short meeting. I wanted a assurances the chinese would buy more agricultural goods so he could talk to people in ohio about that. And he walked into the room according to the wall street journal and said tariffs and everybody in the room including kudlow, Mick Mulvaney and bolton opposed it, except Peter Navarro. Its unnerving to businesses, thats my only point. Theyre the job creators and the ones investing less, at least in the Second Quarter. I think a couple things. First of all, it does show that Peter Navarro has a lot of impact with this president. All of the others opposed the additional tariff. It shows that trump is frustrated with the chinese right now. Theres no doubt that theyre backtracking from deals they put on the table. The chinese are kind of flexing their muscle her here and retaliating against the trump tariffs. Thats why youre seeing the market collapse a bit because theres a worry this is going in the wrong direction. Now china is saying were not not only were not going to buy more of your agricultural products, were going to buy fewer of them. You say the march he get is overreacting. Up until now, the market has been fine. The talks in china, the economys been fine. What if the stock market starts sliding and keeps sliding, whats your sense of how closely the white house is watching that and will adjust their tactics. They absolutely do watch the market. Its a great question. I think navarro and the president , i think theyre surprised by this big market selloff. I dont think they expected it. And so its a great point. On the other hand, lets face it. Chinas getting hurt a lot here too. This is the kind of pain threshold issue. How much pain will china take. Yes, this has hurt the u. S. But its hurting china i think more. To the point i made a little earlier, bilateral trade is up 14 yeartodate. So theres pain going all the way around. Its down 14 . Right, down 14 . I think the markets trying to send the administration a message, saying we dont like this. They try to send the fed a message on wednesday saying we dont like this. And were going to see if the market has influence over the administration. What you said is true, bilateral trade between china and the u. S. Is down 14 . This has actually had a positive impact with trade on other doneecountries. I dont want to sound like an apoll gist for trump. I dont like the tariffs. I think they were a mistake. You do have Companies Moving out of china into other countries to avoid the tariff. Thats hurting the chinese economy a lot. Dagen i want to ask lee this before we go. We have to move on. But lee, the president noticed that you had an entire part of the population who had been ignored and lied to by corporations and politicians for decades about the damage that the free trade with china and, again it was not free, basically wiped out a middle class across the midwest and throughout the south. He reached out to them and said im going to do something about it. But do they have the patience to withstand what is an increasingly difficult trade fight with china going into next year, if it does weaken the economy, do they have the patience and the wherewithal to stand by the man they voted for in 2016. Ive been surprised that they do. Ive been surprised in talking to farmers out there, who have been hurt by this and theyre saying no, this is what we have to do, its time we take a stand. In the end, its going to be worth it. The question is, how long and so i think were still seeing them stand firm with the president. Is it going to be through next year . I think so. Dagen consumer is still very strong. I a agree with that. I think trump won the election because theres a hard line with china. He said that from the moment he came down the escalator, were going to get tough with china. If the economy falters because of the trade war, then his ace in the hole, the Strong Economy puts him in a tougher position. Dagen right. These people you heard it here first. Were going to have a deal before the end of the year. Dagen is it going to be a good one where it gets tough on intellectual property. Not a great deal. Dagen intellectual property . Hopefully. Dagen steve moore. Thank you so much. We move on to el paso, texas. Reeling after the deadly mass shooting at a walmart on saturday. Jonathan seare is there with the latest. Reporter the alleged gunman is held without bond, charged with capital murder for 20 deaths in connection with saturdays shooting at the walmart that you see behind me. Federal authorities are investigating whether the defendant authored an antiimmigrant online post as they consider domestic terrorism and hate crime charges. A video posted on facebook shows the inside of the walmart when the gunfire broke out. You can see someone hiding under a shelf as you hear the shots being fired. Over the weekend, El Paso Countys sheriff Richard Wiles wrote about the shooting on his personal Facebook Page. He writes el paso will never be the same because a racist came to our city to try and make a point. It didnt work, though, because the backlash of the community as we hold national, state and local politicians accountable will be the only point that will be made. El pasos mayor issued a local disaster activation, to help el paso respond to the immediate needs of the crisis as well as its longterm recovery which will include treating Mental Health issues affecting both survivors and first responders. Last night democratic president ial candidate beto orourke who used to represent el paso in congress joined hundreds of residents for a silent march and vigil in honor of the the victims. And as you well know, but it bears repeating so the rest of the world knows this, he was not from el paso, texas. He was from half a state away, bringing that fear, bringing that anger, bringing that hatred and bringing that racism. Reporter President Trump authorized the lowering of flags to half staff on federal government buildings, tweeting the flags at the white house will be lowered today through thursday, august 8. Melania and i are praying for all those impacted by this unspeakable act of evil and based on a later tweet that came out this morning, it appears that the president is going to be calling for stronger background checks. The president making a statement at 10 00 eastern time this morning. Dagen jonathan, thank you for that report. Jonathan seare in el paso. Hours after that attack in el paso, less than 24 hours later, nine people were shot and killed, dozens more wounded in dayton, ohio. It happened around 1 00 a. M. Sunday morning in a popular downtown area. This new video shows people running from the shots while officers rushed toward the chaos. Police say they took the gunman down within about 30 seconds of him firing his first shot. Daytons police chief saying this. We dont have the answer as to why and probably wont for some time. This will be a long and tedious investigation. Well be right back. vo the ant mindlessly marches on. Carrying up to 50 times its body weight. It never questions the tasks at hand. But this year, theres a more thrilling path to follow. father kids. Change of plans vo defy the laws of human nature. At the summer of audi sales event get exceptional offers now fun fact 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. You can get your Interest Rate right by locking in a fixed low rate today. And you can get your money right. With sofi. Check your rate in 2 minutes or less. Get a nofee personal loan up to 100k. Dagen take a look at the market sell the making, a 356 point loss on the dow futures, the s p and nasdaq 100 futures sharply lower as well. All down more than 1 . But the s p and nasdaq coming off the worst week this year. Another red week in the making. Meantime, t Senate Majority leader Mitch Mcconnell suffering a fractured shoulder. Cheryl casone has the details. Cheryl the 77yearold senator was injured yesterday after he tripped and fell on the outside patio of his louisville home. A spokesperson said he is recovering at home. He was released from the hospital after being treated. The Senate Republican leader returned to kentucky last week for the senates five week recess. Looks likes hes got a little bit of time to recover. Fox business parent, fox corp. , is buying a majority stake in credible labs, valued at 265 million. Credible is a marketplace for Consumer Lending information, used to basically shop for mortgages and school loans and this gives fox a 67 stake in the San Francisco based company which at this point is listed on the australian market. Well, teslas looking to boost sales of its new model s and its x vehicles. They will offer free unlimited charging at the super charger stations if youve seen them. This is not the first time tesla used free charging to attract buyers. Theyre aiming at putting Drivers Behind the wheel of some of the more expensive models. Tesla lost more than 400 million in the latest quarterly reports. Tesla is down about 2 andahalf percent in the premarket. I remember being in a brook when condo where the home was sold with a tesla and a charging station. So you kind of need one at home i think to drive one of these. Dagen or one in your garage. In the commercial break, jack said i love a tesla story. [ laughter ] the world cant get enough tesla. It doesnt have enough places to charge teslas. Electric cars are the future but theyre not the near term future. Its going to take a long time before we have that kind of infrastructure. I tell you, a stock we wrote about recently in borgwarner, its really beaten up because theyre perceived as being tied to the combustion engines. Really, i think hybrid cars are the cars of the 2020. I think thats where the fastest growth. Its not the prius. Its hybrid technology to give better gas mileage and hold us over until we get to electric cars. Dagen amen. I drive i did drive a plugin gas electric hybrid. Trade tensions hitting markets, stocks selling off this morning as the u. S. And china take a step back in negotiations. Take a look. And real estate in focus, low unemployment, Mortgage Rates should help the housing malaise. Why they are not. Ahead. And. Thats your basic threepoint turn. [ scoffs ] if you say so. Im sorry . What teach here isnt telling you is that snapshot rewards safe drivers with discounts on car insurance. What . Or maybe he didnt know. [ chuckles ] im done with this class. Youre not even enrolled in this class. I know. Im supposed to be in ceramics. Do you know room 303. Oh. Thank you. Yeah. Good luck, everybody. Oh. Thank you. Yeah. Theres a company thats talked than me jd power. People 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. Youre welcome. Were gonna need a bigger room. Hey i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Dagen welcome back. Take a look at the markets this morning. Losses across the board, 381 point loss on the dow futures, asia and europe seeing declines as well amid growing trade tensions and the new tariff threat from President Trump on chinese imported goods. Joining me now is Northern Trust wealth chief investment officer, katie nickson. What do you make of the selloff we saw last week, particularly the end of last week and whats in the making this morning . It was really the one, two punch last week for the market. We got the disappointing fed announcement on wednesday, soon followed by the escalation of the trade conflict with china. So i think the market is reacting in a rash l nai rationf way. This is happening in the context of a slowing global economy. The risk is the actions may be sluggish or patient fed along with escalation of the conflict might tip the scales towards a real slowdown in the global economy. What turns the market around . Were still in the middle of earnings season. Doesnt look like earnings season is going to yield any big surprises but what could be a catalyst to turn the market around . Right now, this is all over the world right now. Earnings season turned out to be pretty decent relative to low expectations that we had coming in. Youre right, this is a slow period right now. Were not going to know until september whats going to go on with u. S. And china. We wont hear from the ecb until september. Theres a lot of hope that the fed will come through again in september. Also, were in this period of the summer where we have we can have really volatile days because there are volume issues. I think what turns it around is when we do get to september, we have very adamant Central Banks, theyre going to be there to support easy financial conditions. And then i think we need to have progress on the trade front. This is happening in the midst of a vast slowdown across europe and china. Were seeing a manufacturing slowdown in the u. S. Thank reference we have an extremely thank heavens we have an extremely strong consumer. To the extent the manufacturing slowdown leech intuses into the service economy, we may have problems. Dagen we get the nonmanufacturing numbers out today, later this morning. I want to point out in terms of the fed kind of fouling up last week, with the 10 year treasury, with the yield falling this morning versus the three month, so the inverted yield curve where the 10 year is lower than the three year the three month treasury, its the widest inversion since 2007. So that would seem to indicate the Federal Reserve is going to have to cut Interest Rates again and in short order. The fed seems to be very behind the curve at this point. Our expectation is that were going to get another couple rate cuts this year, two rate cuts this year in addition to the one we got last week. And then probably a couple next year. As we do see the economy slowing down, we dont see inflation as a problem. If you look at the u. S. Yield curve, look at the german yield curve, across germany the yields were negative through the whole tenor. Dagen mr. No ones is more prepared than mitch has that written down on his folder right there. Its negative i wanted evidence of that. Dagen i wanted to give you credit. Do we have enough dry powder right now lets Say Something goes really wrong. Rates are really low. Weve got fiscal stimulus, a trillion dollar deficit were running, do we have enough dry powder to handle a bad situation if one comes up. What i learned over the last couple years is dont doubt the ability of Central Banks to get creative in tough times. Conventional tools are pretty much running their course, i wouldnt count out some creative monetary policy. 50 shades of stimulus. [ laughter ] dagen i will add, though, that it looks like that spending package came just in time, that the timing of it was, well, kind of very prescient. Good to see you katie. Tragedy in texas, the federal government treating the mass shooting in el paso as a domestic act of terror, the legal case against the suspect, next. Dont miss your golden opportunity to experience our most advanced Safety Technology on our full line vehicles. Now at the lexus golden opportunity sales event. Lease the 2019 es 350 for 379 a month for 36 months and well make your first month payment. Experience amazing. Liberty mutual customizes your car insurance, hmm. Exactly. So you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty dagen welcome back. Im dagen mcdowell, in for Maria Bartiromo. Its monday, august 5th. Your top stories at 7 30 a. M. Eastern. China trade turmoil, were seeing that in the selloff in the futures this morning fueled by the trade fears. Chinas currency dropping to its lowest level in more than a deck decade in what could be beijings answer to President Trumps latest tariff threat. That currency falls and it offsets any tariff put on chinese imports into the United States. U. S. Futures extending last weeks losses at 356 points on the dow futures at the moment. The s p 500, nasdaq suffering their worst week of the year last week following the escalation in trade tensions with china. Trade also hitting markets around the world. In europe, we have red across the board, losses north of 2 . 2 in england and france. In asia, steep loss as well triggered by trade fears and continued protests in hong kong. Here at home, to our top story this half hour, the country reeling following two deadly Mass Shootings in less than 24 hours this weekend. Federal authorities investigating the massacre that killed 20 people at a crowded el paso, Texas Walmart as domestic terrorism prosecutors say theyll file capital murder charges against the alleged gunman. President trump set to address the nation later this morning, condemning the deadly shootings in texas and ohio. I want to extend our condolences to the people of el paso, texas and dayton, ohio. I spoke to members of congress about whatever we can do. This has been going on for years, for years and years in our country and we have to get get it stopped. Hate has no place in our country. And were going to take care of it. Dagen joining me now, fox news senior judicial analyst, judge andrew napolitano. Judge, good to see you. Good morning. Dagen lets start with the case in el paso and the move to treat this as domestic terror. What does that mean in terms of the case and the punishment this murderer could face . It wouldnt mean any difference with respect to the punishment because techs as hase Death Penalty and texas uses it and this is the case of capital murder which texas would charge him with. The texas state prosecution would be an easier one to prove. They dont have to get into his mindset and what motivated him. The federal case, which is based upon targeting people because of hatred of a characteristic of birth, gender, age, race, place of origin, in this case probably place of origin, would require the government to prove that. If the government cant prove that, then it doesnt have a case. However, having said that, when a single act or series of connected acts here, all these shootings implicate the violation of a state law and violation of a federal law at the same time, and both jurisdictions want to prosecute, the feds usually big foot the state and take the prosecution first. So if the feds take the prosecution first and they can prove hate and he is convicted and he is sentenced to death, would it make any sense to have the state prosecution take place and of course vice versa. As i said earlier, the state one is easier to prove because you just have to prove the elements of the crime, you dont have to prove what was going on in his head. Dagen democrats, again, immediately calling for more gun control measures as some of the 2020 on the campaign trail are partially blaming the president for this weekends Mass Shootings. Maria bartiromo spoke with tim ryan yesterday on sunday morning futures. Weve got to do something. Im calling on the president and the congress to come back into session. Lets get back to work in washington, do the background check bill that we passed out of the house. Weve got to ban assault weapons. Dagen President Trump actually tweeted earlier, calling for stronger background checks, hes proposing its tied to Immigration Reform. Its hard to tell but what do you think happens on any changes to the gun law as they exist today . Because i think the president s referring to a bill i think thats already been passed in the house that would close the gun show loopholes in terms of enforcing universal background checks. That seems to be what hes talking about. The right to keep and bear arms is a fundamental lib effort. Thats not me. Thats the Supreme Court of the United States. The framers enshrined it as a fundamental liberty so those of us who obey the law wont lose our right to protect ourselves because there are those willing to disobey the law. If someones willing to disabow youdisobeyyour right to live, dk theyll obey federal gun laws. Background checks are only as good as what goes into them. Ive been the subject of background checks for various reasons, to purchase a gun, to become a judge. Ive seen the background checks. Some are checking a computer, were you ever arrested . Well, no. Were you ever committed to a Mental Institution . No. Did you ever have a weapon taken away from you against your will . No. Those are the basic things they look for. These two guy as i understand it, one of them said crazy things in school and was suspended for it and actually kicked out of the school, this stuff doesnt show up on a background check. Dagen i will point out that in the Charleston Mother Emanuel Church shooting, the murderer in that case was neve should nevern you allowed to buy a gun and it was a foulup in the background check process that allowed him to buy a gun. He was a convicted felon it was a drug conviction. He should never have been allowed to buy the gun. It was missed in the background check because of an error. The government is under a lot of pressure to do something. We dont need more laws. We need enforcement of the laws that we already have. And we need respect for the fundamental rights of those of us who dont break the law to exercise those rights. Im worried that the president , who has been a fierce defender of the right to keep and bear arms, might compromise in the face of these awful tragedies. The tragedies are caused by atmosphere of hate and a belief that acting out the hate is doing the right thing. This is a pre verse way of thinking. If you read this characters manifesto, he claimed he was going to prevent an invasion of texas by hispanics. Have we heard that before . I mean, this type of language, this type of rhetoric is what fuels the crazies among us to think that they can do the right thing, when in reality, what theyre doing is the opposite of the right thing. Theyre taking innocent human life. Look, walmart dagen the suspect wrote in the manifesto that his views predate trump, seems to anticipate the political debate. But his views predate trump. Walmart can do what it wants on private property. When walmart bans to keep and bear arms on its property the people are like fish in a barrel when theyre shot at. They cant shoot back. Dagen i want to cover a couple quick things. I know were always short on time because theres always so much to discuss, particularly on a day like today. Number one, ivanka trump tweet yesterday congress should enact red flag laws, slash extreme Risk Protection orders in every state and increase resources dedicated to Mental Health support. Ive done a lot of research on these red flag laws. Theyre also called gun violence restraining orders. They allow a Family Member or loved one to get a Domestic Violence protection order to prevent an individual who is a threat to another person or him or herself from acquiring a weapon. Florida a adopted one of these laws after the parkland shooting. Is this a path that you think well see . Lindsey graham talked about trying to review these laws. These are state laws, not federal laws and they basically would allow a examly member Family Member to say to the police i think so and so is dangerous and you ought to take the gun away. Then they take the gun away and so and so has to prove theyre not dangerous. Thats wrong. That turns lawful process on its head. Its the obligation of the person who says theyre dangerous to prove the case, not the owner of the gun to prove they have the right to own it. Dagen it would go in front of a judge. I understand that. When the law is written so that the burden of proof is on the gun owner to keep the gun rather than on the person complaining to have the government take it away, that is an inversion of due process. Dagen let me raise this. There is a what is essentially a jail thats in Central Virginia and its for sex offender who have already served their criminal penalties, theyve already served the time handed down in a criminal conviction. But they are held on civil orders from a court and they are held in many cases in person una Mental Health official and a judge deems them fit to go to society. I know you will think thats a constitutional violation. If thats not a step too far, why isnt it keeping guns away from people who are a threat to society. Because the Supreme Court expressly ruled that the right to keep and bear arms is a fundamental liberty, meaning the government has to prove the case to take it away. Youre the only person i know that could compare those two awful situations, a person so moved by a sexual aggression that even after they served their time in jail, they still have to stay in jail, its profoundly unconstitutional. Dagen it is but they invested millions of dollars to keep these people behind bars civilly, after they served their time in prison, and again, we can talk about that but ill say this. This is the front page of the New York Times today, ban weapons of war. This is a i would say this is an editorial, this is a conservative news i would say a conservative Editorial Board but again, is the tide turning . You know, we shouldnt change laws that affect fundamental liberty because of these tragedies. I know the left wants to do that. I know the people running against the president all want to do that. And theyre going to use this as an opportunity to try and do it. But when we change the laws in respect to tragedy, we eventually harm the right of honest, innocent, lawabiding people to protect themselves. Dagen when people always talk about drivers licenses, but the right to bear arms is constitutional. There you go. Did i change your mind . Dagen we had a great conversation. Judge andrew napolitano. Im just here asking the questions, getting smart answers. Coming up, Housing Market in focus, low unemployment and low Mortgage Rates should make for a real estate boom. Why not . Plus, tom bradys payday, the patriots quarterback contract extension after his recordsetting sixth super bowl win. The numbers, next. Were changing whats possible every single day. , but what does changing whats possible mean anyway . Well. If you run a business, it means a lot. For starters, we provide you with Financing Options for your customers. That way, you can help them buy the things they love instantly and pay over time. And that turns them into serious fans. Hang on, theres more. Want Customer Insights . Weve got those, too. We use data to show you what your shoppers have already bought so we can tell you what they might consider buying next. And you can offer them the perfect products. That ceo gets it. From adding unique capabilities to your companys apps to bringing you loyalty programs, our financial and Tech Solutions are changing whats possible in all sorts of ways. So, how can we change whats possible for you . Dagen we have a major selloff in the making. The blue chips down 330 points in futures trading, steep losses for the s p and nasdaq as well. Big money, no whammies. Tom brady is set to be getting a raise one day after his 42nd spiri42birthday. Jared max on the stunning numbers. Jared he celebrated his birthday with news of an 8 million raise for this season and a lot more after. Six time super bowl champion reportedly agreed to a two Year Contract extension worth 70 million. Brady will earn 23 million this year, 30 million next season, and when hes 44, brady would be set to earn 32 million. The final year of his contract. Hes the sixth highest paid quarterback in the nfl. For the second year in a row, Chase Elliott outraced martin truex junior. It was deja vu for chase. He started at the poll and it turned into a two car race for more than half of the the 220 plus miles. Hes the first repeat winner at the glen in seven years. Look at these two go, dagen. Dagen heres what im going to say. Chase elliott is the son of nascar great bill elliott. And so bills nickname, because i always have to say it i is awesome bill from dawsonville. Theyre from dawsonville, georgia. I think thats one of the greatest nicknames in the history of professional sports. What do you think of the brady contract . . Jared i think its great. If youre a kid today, you would assume who is the highest paid quarterback . Ii think its great that brady gets that money. Because now people will be getting more money. Dagen how many days before the first game of the nfl season. Jared weve got 28 days or so. Dagen you should know that down to the second. Jared i was busy learning other numbers. I wanted to know how many Miles Per Hour truex was behinds chase. Dagen people should try to go to that race. Jared max, his sports reports on fox News Headlines, 24 7, sirius xm 115. Coming up, real estate in focus, record low unemployment and Mortgage Rates many we look at why they are not helping the Housing Market, next. Hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Dagen real estate in focus, low mortgage and unemployment rates should be the farm la for a thrive formula for a thriving Housing Market. The on t sit is actually happening. Many americans are having a hard time buying a home. Joining me right now is real estate owner rogers heely. What is happening here, roger . Well, i mean, first of all, its not having a negative effect on the Real Estate Market. Its got people talking again. Something that people dont mention is the time of year they go and decrease rates. Obviously, the job market is continuing to thrive. People are still really happy in america. But the wages have not caught up yet with the prices of these properties and on top of that, something that never gets mentioned are the cycles of leases. People normally renew leases in march, april, may and june. So if rates are lowered in august or late july, theyve kind of missed the boat. So its not necessarily a bad thing. It gets people talking. But a quarter point dip is not going to change the Real Estate Market and get everybody off the couch and ready to make a move. Good morning, mitch rochell. We observed that it seems like the i want to rent versus buy is somewhat secular as opposed to cyclical. What you were talking about seems cyclical. Seems as though its secular, we just dont want to own a home, were happy to rent. Is that something youre observing as well . Its still the american dream. Something i started talking about a couple years ago, the rule of real estate used to be location. Thats what used to be everybody wanted, they wanted to be in the urban core. Now its shifted to affordability. You see places on the outskirts, three or four layers away, those places have thrived, especially right now with Interest Rates. People dont want to rent. There are statistics that say people are renewing leases more than they ever have before which means theyre not popping to another rental, maybe theyll stay locked in and save money. I think everybody wants to own their own property. Commercial real estate as well. But its still tough right now to save money with the cost of real estate being so high. Dagen lee . Rogers, i have a question. Do you think any of the slowdown in real estate has to do with peoples inability to write off taxes the same way they used to. Again, the slowdown, its late summer. And this always happens in late summer, this happens in midwinter. People right now are focusing on preparing for their taxes, preparing for kids to go back to school. They spent a lot of money on summer vacations. July is probably the busiest month of the year for people getting out of town for more than seven or 10 days. This is a conversation we have every year. At the end of the day, the market is stable. Its not as busy as it is in a traditional spring market. Dagen thank you, sir. Come back soon. Thank you, have a good day. Byebye. Dagen still ahead, trade hitting the market, u. S. China trade taking a major step back. Details, next hour, on mornings with maria. vo the hamsters, run hopelessly in their cage. Content on their endless quest, to nowhere. But perhaps this year, a more exhilarating endeavor awaits. Defy the laws of human nature,at the summer of audi sales event. Get exceptional offers now. Dear tech, lets talk. We have a pretty good relationship. Youve done a lot of good for the world. But i feel like you have the potential to do so much more. Can we build ai without bias . How do we bake security into everything we do . We need tech that helps people understand each other. 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For our 100 years weve been answering the questions of today to meet the energy needs of tomorrow. Southern company Global Markets, selloff on china trade turmoil weve a 341point loss on dow futures u. S. Futures extending losses from last week, pointing to a selloff at the open. Last week s p and nasdaq suffering worst week of the year. In trade tensions with china trade also hit market around the globe in europe red across the board loss north of 2 england asia overnight as well, in china yuan lowest level more than a decade what would did he beijings answer to President Trumps latest tariff threat 10 tariff on 300 billion dollars in imports here if currency in china falls offsets the impact it would have, on trade. U. S. China trade in focus global selloff coming off President Trumps to impose 10 tariff on another 300 billion dollars in chinese goods, that would include smartphones clothing toys, many starting to think that the trade battle is nowhere near an end, and could be intensifying we look at where the trade talks could go from here if kurns is becoming the i latest battlefield, shares of advanced microdevices intel nvidia losses there almost 4 on amd and nvidia, the country mourning. Two Mass Shootings in hours over the weekend, 29 people murdered, President Trump calling for republicans and democrats to come together, and get strong on background checks. We will discuss that as the morning wears on, here to break it all down with me associate editor at barrons, Lee Carter Pwc partner Mitch Roschelle welcome one and all steve moore i should point out was on before author of patrolmannomi n trumpnomics thinks a deal done by the end of the year somewhating but the lynchpin here is in recent escalation seem or Sticking Point was buying more agricultural goods but President Trump wanted assurances bob lightest light mnuchin treasury secretary in china chinese were going to do more they couldnt give him that with certainty he said in one word in a meeting with white house advisers, other than navarro, tariffs, to surprise of investors. Soybean imports i think one of the Sticking Points in the conversation but it is no surprise some of the states that export on soybeans to china are also swing states in or Battle Ground states if you will. I think china is hip to our Electoral College map a little bit smarter than maybe giving credit for. I think the fed put is kaput you dont get the automatic stock jump you used to get there might be a trump put i dont know how strong if we see declines i think more incentive to find a deal to china i dont know if that gets us back on track i think the white house is watching carefully. President trump being unpredictable maybe works in china negotiations but caught investors off guard catching business off guard. This happened over and over and over again when it will comes to tariffs everybody thinks conventional wisdom nobody would do this he continuously does that, and it throes us offkilter feels different than other seems more like retaliatory measure than going to being strategy we will see. Dagen a report out the Chinese Government ordered any Government Agencies to stop buying our comriblg goods in u. S. Chinas top economic planner said on state media cctv on monday the u. S. Accusations the country didnt stop buying American Farm products are untrue what to make of this u. S. Research strategy in asia u. S. Alliance foeshl White House National security adviser cooper is here pull the that in perspective here. Just as you said the president seems to have overruled most of his advisors gone with tariffs i think the real question is what is the path forward, is there a deal, are the chinese really willing to come back to the table . If you look at markets, and certainly the reaction in beijing overnight, i think the answer might be no. Devaluing renminbi, is a big sign in my view chinese in for long haul that is what we are trying to show. How much damage could that do the devaluation of that currency real drop in stayed with United States no longer number one trading partner with u. S. How much damage has that done to the chinese economy will do . Well an effort to prop up the economy see if they can get at least a couple more months solid growth, we never know whether any of the Growth Numbers in china are real. But i think you have to think that that is sign that they are under some pressure but also that they are trying to stay strong as for the long term this doesnt seem like a move china would be making if there was going to be making a deal next month or two. Good morning Mitch Roschelle one of the things that is driving their currency down or manipulated as reported they are also printing money tostep stimulate the economy how long can they continual to do that how donning can they continue to devalue currency whether as direct result of stimulus, or to retaliate how long can that go on. No one really knows the answer to that the other question that is related how long can United States keep doing this how long can Trump Administration keep using tariffs as a tool, when does concern about 2020 Campaign Kick in . And force the president to come back to the table and make a deal . And when one of those two sides is going to bend first . That is real question in my view. Jack you have a question. Who i keep hearing u. S. Holds a strong hand and you can look at the s consumer side of the economy here certainly that looks solid. But i mean do you agree with i think of china as a country that has this relatively new middle class, right they dont have rich history or economic power that we have here and i wonder i heard a lot of americans that are kind of hanging on right now paying bills, who has weaker hand in negotiations, who can hang on for longer . I think it looks like chinese are being hurt more in short term certainly if you look at stock market shift. But the real kwi i think whether Chinese Communist party feels it is under pressure because delivered decades of doubledigit Economic Growth now that growth is slowing, first 7 now 6 , whether the triz are going to do more damage is the rally question. But i think on u. S. Side the real debate is going to be as we get closer to 2020 does the president need to make a deal to make sure that he can get reelected or is he willing to go to the mat with tariffs. I think the president right promised to get tough on china he didnt and that is what he has done here, everybody is in some ways benefits the president the more people are taken off guard by the way he is doing things, because because that was his that is what he said he was going to do o nobody else would ever do it i think he looks like fighter for American People whether deal is done by 2020 i am not sure that is going to have impact, one thing i am looking at though is now china making deals with russia, you know they have approved deals with wheat and soy imports is that going to make a deal less likely . A great question, i think weve seen the chinese pushing out the trying to find other markets. I dont know that they are going to be about incredibly successful trying to supplant u. S. Market but i think at the end of the day one has to wonder whether chinese can bear all this pressure and for how long. But now that were talking about this last 300 billion dollars, of goods, these really start to get into a lot of Consumer Products that americans are also going to feel more directly. And so i think the chinese are probably hoping that maybe the Trump Administration will hold back before it actually puts tariffs on in september. Dagen quickly we discussed last week but the idea that the 10 additional tariffs was somehow pushed by an individual in the white house to force the Federal Reserve to cut Interest Rates again that just seems like lunacy again this is not something that the fed can fix. And might be a great deal more damaging to u. S. He examine consumers u. S. Economy something another quarter point cut by Federal Reserve wont offset not by any stretch. That wouldnt make a lot of sense to me either, i think the other question is you know, are we going to get big deal . Probably not out of china anymore, right . Were looking at small deal, one that is largely focused on agricultural purchases Energy Purchases by china not going to talk about underlying concerns that have been biggest issues for most white house advisors intellectual Property Market access, those are off the table what is this additional pressure really going to do i think that is tough question for those in the white house supporting it. Good to see you. Thank you so much for being here. Moving on to el paso the country, after a deadly mass shooting in walmart over the weekend. Jonathan with this very latest on that investigation. Reporter the gunman being if he would without bond, charged with capital murder in connection with death of 20 people, who lost their lives in the walmart you see behind me, meanwhile, Federal Reserve investigators are looking into whether the defendant offered an antii grant online post as they considered domestic terrorism hate crime charges fbi interviewing aacquaikwa aacquaintances in dallas other. To be able to determine if he was part of a group or working with other individuals that were planning in future attacks at this point we dont have any about. Statement about future. The inside of the walmart when saturdays gunfire broke out you can see one hiding under the shelve as shots are being fired in El Paso County sheriff wrote on personal Facebook Page about shooting this man came here to kill hispanic i am outraged you should be to a this entire nation should be outraged in this day and age with serious issues we face we are still fronted with people will kill another for soul reason of color of skin, last night beto orourke used to represent el paso in congress joined hundreds for a final march vigil in honor of the victims. We know the solutions, universal background checks close every single loophole and end to sale of assault weapons in United States of america. Responding to shootings in texas ohio President Trump tweeted this morning republicans and democrats must come together, and get strong background checks, perhaps mar yooig this legislation with desperately need Immigration Reform back to you. Thank you for that in el paso, it was two shootings in less than 24 hours, over the weekend. Nine additional people shot and killed, dozens more wounded in dayton ohio. It happened 1 00 a. M. Sunday morning in, a particular area in downtown dayton this, video shows people running from the shots as officers rush toward chaos. Police say satisfiers took down the gun moon within 30 seconds. Of him firing the first shot. Still, 29 at least 29 dead, 53 injured, in those two shootings. Over the weekend. Well be right back. 900 acres. 48 bales. All before lunch, which we caught last saturday. We earn our scars. We wear our work ethic. We work until the works done. And when it is, a few hours of shuteye to rest up for tomorrow, the day well finally get something done. [ soft piano music playing ] mm, uh, what do you do for fun . Not this. Oh, what am i into . Mostly progressives name your price tool. Helps people find Coverage Options based on their budget. Flo has it, i want it, its a whole thing, and shes right there. Yeah, shes my ride. This dates lame. He has pics of you on his phone. Theyre very tasteful. Dagen hour and 14 minutes away from the opening bell stocks to open sharply lower on trade sanctions with china nasdaq on pace for longest losing streak since november 2016 nasdaq and s p both suffering worst week last week of the year so far President Trump just tweeting on china, china dropped the price of their currency to almost historic low, it is called currency manipulation, are you listening Federal Reserve . This is a major violation which will greatly weaken china over time. I want to get Mitch Roschelles Quick Reaction to this again this does seem to be a renewed a focus on the Federal Reserve what it did last week it the president wants a lower dollar. Is one of the things. And somebody wrote me this morning andy brenner on the network, frequently, the u. S. Could intervene by using the Exchange Stabilization fund if they want lower dollar fund has lnl about 95 billion dollars to use dicht warfed we could reach out to allies to do a coordinated effort everybody has their own kind of country interests, or i think to have you raise the question is President Trump if he is really this upset, is he is going to target china and try and fire jay powell later again they investigated when they could get rid of him or not. If you weaken dollar you import inflation, and then, that becomes something that the Federal Reserve then has to respond to, so i just think currency should not be manipulated at all. Respond raising Interest Rates. Correct. Which is not. Which is not what he wants let free markets behave lake free markets fight one fight like trade fight do it leave fed out of it. Dagen steve forbes says do not again you want a strong dollar policy. Dont wish for wake dollar. Exactly hong kong leader speaking out as more protests hit city late evident affecting travel in and out of the city. Cheryl so the Pro Democracy Movement holding a sen strike more than 200 Flight Cancellations so far major traffic disruptions, comments in two weeks hong kong chief of staff said the city is becoming more dangerous and unstable. Such offensive destruction in the name of uncooperated movement has seriously undermined hong kongs law and odd. Maintains no plans to resign. A lot riding on plans to expanded jeep brand the company with an reportedly add larger h electrified lineups, and plugin hybrids according to journal, reported record quarterly offering profit gets jaels from jeep brand. Then there is this is a lot to signing about pop star on highest grossing tour of all time that is according to poll starr the tour grossed 736. 7 Million Dollars that beat out reprieve record holder u2 took in 734. 4 million 35. 4 million in 2011 sheeran started tour march 16, 2017 finishing up august 26, 893 days but u2 not knocked off top spot impressive. Dagen thank you for that i am not the biggest ed sheeran fan. I am nottet. Dagen imp usable wrong about everything but right about following if you are in the south social media in texas go see lyle lovett banned wednesday night in North Carolina board of supervisor affidavit thursday see them you will never see better musical show period my advice. I love it. I doto. Whole band, come on people. Iran seizing a tanker carrying smuggled fuel geopolitical kwn firms out the wade by trade. China treats against new u. S. Tariffs, devaluing that currency to offset that 10 tariff on deck we to look at stocks most impacted with just an hour and 10 minutes before the opening bell. Stay with us. Hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. And my side super soft . Be firm . With the sleep number 360 smart bed you can both. Adjust your comfort with your sleep number setting. So, can it help us fall asleep faster . Yes, by gently warming your feet. But can it help keep me asleep . Absolutely, it intelligently senses your movements and automatically adjusts to keep you both effortlessly comfortable. Will it help me keep up with him . Yup. So, you can really promise better sleep . Not promise. Prove. And now, save up to 600 on select sleep number 360 smart beds. Plus no interest until january 2022 on all smart beds. Only for a limited time. Saying illegalitirevolutionary seized another tanker, tensions between u. S. And iran boiling out. Andy what about the direction of oil on these trienensions. Ignoring the tensions even though third tanker iran seized still sitting in iranian waters but as oil market is being weighed down by all the tariffs and trade wars that we see are happening around the world. Gas prices like favorable here good news for consumer, what i wonder is is that because people expect a further softening in the World Economy to is it good news or bad news we see gas prices precinct reasonable here . So that well, the gasoline prices are reflective of oil market weighed down number one by increasing supplies from u. S. , and number two from revised downward growth forecasts due to the economies around the world good news for consumer here but really indicative more of you know slowing Economic Growth, especially overseas. Good morning Mitch Roschelle one of the things that i am curious about, is talk about geopolitical risks around the world, and economies slowing down. How about the opec countries snemz how are those economies faring . They do need i higher prices no doubt people look at saudi arabia and say they need over 70 dollars a barrel in order to balance their budgets, but what weve seen is opec nonopec producers have been cutting production, and they really have not been able to get the oil price up. Imagine what the price of oil would be if iranian exports rishd reciprocated to the market or sanctions on venezuela listed probably seeing numbers below 50 dollars a barrel here i think opec nonopec producers have to grit their teeth and wait for demand around the world, to soak up oversupply. Turning to oil earnings andy exxon chevron reporting Solid Earnings last week analysts due to lower prices can you explain that . Well sure, i mean what they are doing making up their profits in volume so we see company like exxon who has been significantly increasing their production out of the Permian Basin as well as chevron earnings going up in spite of these lower oil prices, and integrated dwangz over independents if you look at oil pat of with independently producers, they are really feeling the strain of lower prices, and higher operating costs. I have one quick question so if you watch the democratic debate all of the candidates have some form of a Climate Change policy a green deal or new deal whatever you want to call it you have joe biden talking about doing away with fossil fuel at what point do we start seeing a reaction in maybe the oil stocks the price of crude oil what would that again if that is really the goal you are going to have people in this country paying, 8, 10 dollars for gallon of gasoline. The consumer really demands affordable incredible that concludes gasoline diesel electricity. So if they see the alternative going up in price, that really causes a damper on enthusiasm for alternative fuel what consumer has been fortunate to see a world oversupply fossil fuel. Look at california a tradeoff gasoline prices average dollar a gallon higher than the rest of the country tradeoff is we want clean air, and we are willing to pay more for those fossil fuels, in exchange for a more Renewable Energy when it means solar, wind or electric vehicles. We use gas because it is plentiful, and cheap, andlifts people out of poverty gets them to job with giving 8 to 10 dollar gallon gasoline. Trade fears tearing into markets we eye selloff at open china ramps up attacks begins new u. S. Tariffs what is at stake, the stocks most impacted with an hour to go before the opening bell. This was me before liberty mutucustomized my car insurance, so i only pay for what i need. And this is me now any physical changes to this mans appearance are purely coincidental. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Most people think a button is just a button. That a speaker is just a speaker. Or that the journey cant be the destination. Most people havent driven a lincoln. Discover the lincoln approach to craftsmanship at the lincoln summer invitation. Right now, get 0 apr on all 2019 lincoln vehicles plus no payments for up to 90 days. Only at your lincoln dealer. For Maria Bartiromo monday, august 5 top stories 8 30 a. M. Eastern Global Markets selloff on china trade turmoil in china, it is currency yuan dropping to lowest level more than a decade President Trump calling it currency manipulation a major violation that will greatly weaken china over time what is weak this morning certainly u. S. Futures, extending losses from last week workweek week, for s p and nasdaq nasdaq on pace for longest losing streak since about november 2016. Tech stocks taking a hard hit, shares of micron technology, Applied Materials and Microchip Technology seeing steep losses in premarket trading. Trade also hitting stocks around the globe, in europe we have red across the board a loss north of 2 on ftse 100 in england, it was even worse in some asian markets where hang seng, and kospi in south korea lost more than 2 1 2 . Top story this half an hour u. S. China trade tensions hitting market President Trump, is speaking out blake burman live at the white house, with more blake. Reporter hi, dagen good morning a spokesperson for peoples bank of china blaming latest tariff threat from President Trump as reason china suddenly decided to devalue currency yuan breaking below 7 per dollar level for the first time in more than a decade from may, 2008 here when what that spokesperson said earlier affected by yun lat rallyism trade pro textism measures imposition of tariff changes in china renminbi depressured against u. S. Dollar but renminbi continues to be stable strong against a basket of kurns thyou currency President Trump said china dropped prize currency almost low call you currency manipulation are you listening Federal Reserve president asked said a major violation will greatly weaken china, over time. Meantime this morning at the white house, President Trump will also address the two Mass Shootings from over the weekend. In which 29 dialed el paso, texas dayton ohio this morning the president trying to tie epidemic of Mass Shootings to Immigration Reform tweeting republicans democrats must come together get strong background checks, perhaps marrying this legislation with desperately need Immigration Reform the president in part or pointing the finger at the media. Dagen. Dagen thank you so much. Good to see you blake. Thank you for that live report. From the white house, joining me now former White House Deputy brad brake han to cover it all brad what do you make start with the trade fight because clearly there is a great deal of fallout in not just u. S. Market but the global stock market, china devaluing currency trying to offset the coming 10 additional tariffs on 300 billion dollars in imports into u. S. , what happens here . Because, gairn, the the wall street journal reporting that the president defied virtually everyone in white house other than Peter Navarro just said tariffs with mnuchin and lighthizer came back from china last week. The president is right we not allow china to continue not only in trade war with United States, remember they started this, by taxing our goods stealing our technology, and intellectual property right to stand up to china also right current motive is currency manipulation not new to china they have been doing this for decades now just doing it brazenly now it is up to the world to come, to our defense, because it is also affecting their economies as well. I am looking to brin france, germany italy, and others. To start not only vocalizeing their concern about china but doing something about it. We cannot let china do this. It is going to cost china longterm problems and goal now is to keep the dollar strong. Dagen i want to bring you in here lee, again no one should be surprised by the president s stouf stance with china, the one thing tough stance with china one of the unique hallmarks of this presidency he literally goes through Campaign Promises and checks them off, even moving embassy in israel to jerusalem one by one not giving this up fight. He had five signature policies running for president , and number one was getting tough on china, he had the wall he had he has gone through each one of them this is one that he will not back down from no matter what experts advisers tell him goes harder that have been i think anybody expects we should not be surprised we continue outstanding are he is not following advice being tough, i think interesting to see if it is going to work with a weve scene in the past we get afraid something changes there is a shift how lock before china responds may be the way they want them is to it going to have patrolman back before september recession of tariffs i am not so sure that it is not but scary to see he is doing exactly what he said he was going to do. Brad he has to get he run for reelection next year, and you have an economy in some ways softening not talking about stock market but Business Investment in the Second Quarter factory activity, job growth is looking a little soft. So what say you . He has got to wrap this up. Best time to chacon take on china from position of strength thank god we have a good economy in order to do that President Trump is looking long term china thinks 10, 50, 100 years you on road we are consumed but new cycle 24 hours the president is right doing the right thing he said he was going to do it, and i have every confidence that the United States economy will continue to be strong i think china made a huge miscalculation, xi is president for live xi is going to wait out donald trump as long as he can, hoping that he does you have not get reelected but as donald trump warned president xi, you know if he is reelected going to be a long next four years, so you better deal with him now, were not going to deal he from weakness, President Trump is dealing from strength. You said president wants a strong dollar but when he is tweeting are you reasoning Federal Reserve, sound like he wants lower rates weaker dollar when i pulled back the lens i look around the world, i feel of negative rates in europe looks to me like every rich country in the world has gotten beyond means on its fiscal spending everyone taking on debt now everyone is truly to weaponize kurns in race to the bottom doesnt the president want to respond taking our dollar lower i think the fed made their move last week i dont see any action by them, in regard to what china just did i think the markets need to play out. And we should not automatically have a kneejerk reaction to what china has done, lets see how this plays out, but on the other hand, i think the president has to continue to put the pressure on tariffs. And as long as we can move from a position of strengthen and good economy, china has more to lose than we do. Dagen i want to move to something more serious. Obviously,. Brad with the two shootings one in el paso one in dayton, ohio over weekend to say the least 29 dead 63 jurisdiction in mass murders shootings the president tweeted seem to go tie teeming to tie more intensive background checks with Immigration Reform seems i think the president should stick to Mental Health because i think that that is become a huge issue, in america. Access affordability availability of Mental Health. Single alone gunman take out dozens on the other hand in chicago multiple people taking out hundreds of people over the year in places like chicago. I would say less on immigration with regard to the violence and more on Mental Health preventing criminals from getting instruments of death. If you have been adjudicated by court menly i cant mentally incompetent you are not supposed to be able to buy a gun one of the protections as talking about earlier people slipped through cracks number number one number two a large lift in terms of being found by a court mentally unfit to possess a weapon, iveive tweeted over weekend congress should enact red flag laws extreme Risk Protection orders in every state increase resources as i said dedicating to Mental Health support with red flags like Domestic Violence restraining orders aimed at people from possessing a weapon gives live ability to take a weapon away from someone the orders that are tan out by say feminine members loved ones, does this ivanka have fathers ear does ivanka trump have president s area do you think this is something we Pay Attention to. There is no doubt, the first daughter is Senior Adviser to president has president s ear but Common Sense Solutions like red flags are important as we have seen in shootings people failed to connect dots, dots there to be seen nobody did anything perhaps they didnt know they could do anything i think Mental Health has to be a priority in this country. It is it is long since been stigmatized those days should be over the brain organ like hart we give people with heart attack so much compassion what about people who have mental issues should be given same compassion help as we give those who have other ailments thank you so much for that. Coming up sharp selloff markets under pressure this morning china ramping up attacks against new u. S. Tariffs Stuart Varney breaks down what is at stake for truth next. But perhaps this year, a more exhilarating endeavor awaits. Defy the laws of human nature,at the summer of audi sales event. Get exceptional offers now. On a scale of one to five . 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Dagen is trade he tensions escalating prompting what could be adrawn out dispute between two economic super powers, joining me now the host of Varney Company Stuart Varney. Mr. Varney what say you i would have to agree with that, this is an escalation it is now a currency war and very hard to see a quick resolution to this. Both sides if i put it like this if either side backed down and blinked in this confrontation, both sides would lose credibility that is last thing you want to do in tense negotiating situation what youve got a currency war all kinds of negative fallout. For a start youve got this flight to safety not necessarily a huge negative but a real mark of whats going on in the world, the flight to safety to u. S. Treasury bonds as you have been reporting dagen pushed yield all the way down to 1. 78 flight to safety of gold, at of year high, even bitcoin has beendrawn into this now what, it is 11,700 bucks a coin up 700 dollars day youve got flight to safety this trade fight shows no sign of being backing down at any point in the future right now, we are in middle of a currency war that is the way i see it. Dagen can i pose the question to you. Please. Dagen the president definitely seems fixated on Federal Reserve, and wanting lower Interest Rates he wants a weaker dollar, as we get into this currency fight. Is that what do you make of that where does that go from here. I wonder is it possible for the Federal Reserve to intervene in the chinese currency market not the markets in china but the market for chinas currency the yuan i dont know whether Federal Reserve would or would do that. But isnt that something of an option that the jay powell might want to even look at . This is a currency war does Federal Reserve have a roll in it . I dont know. But i am sure o it is going to be under consideration. I made you talk about Federal Reserve and currency. Not easy. I know i love it when you do it because again you make it so easy for all of us to understand. Lets not get carried away. You know i adoreu. The yield curve so that preceded every recession since world war ii just saying that since 2007 i think can i tell a secret stuart got to work even before i did this morning, because that is how much he loves this job. Stop. It how much he loves his viewers. And you will see stuart in less than 10 minutes, 9 00 a. M. Every weekday 9 00 a. M. To noon even thank you, mr. Varney Varney Company. Trade fears tearing into market live to New York Stock Exchange for look at stocks most affected with 40 minutes before the opening bell. Hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. 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Stocks in focus dow, caterpillar 3 me boeing sensitive to china we watch closely tech stocks lower premarket as well nasdaq set to fall for 6th straight day longest losing streak almost three years watch the amd intel micron Applied Materials, of course, apple, gold highest since may 2013, bitcoin a huge jump, and currency play finally cars. Com down almost 30 board ended a Strategic Review no bids after reports from activist investor. Jackie deangelis New York Stock Exchange still ahead final thoughts from this allstar panel. Stay with us. Kevin, meet your father. Kevin Kevin Kevin Kevin Kevin Kevin Kevin Kevin Kevin Kevin trusted advice for life. Kevin, hows your mom . Life well planned. See what a Raymond James Financial Advisor can do for you. Dear tech, lets talk. We have a pretty good relationship. Youve done a lot of good for the world. But i feel like you have the potential to do so much more. Can we build ai without bias . How do we bake security into everything we do . 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Only a week ago, i was saying 2 on bonds, you might not love it but it might be the best youll see for some time. You might not get that today. I dont know what you will find out there but if you are looking to raise a little cash and you can find some out there, 1. 5 , 1. 75 , look at all the negative yields in europe. Thats where were heading. We are going lower and lower. Lock it in while you can. Hes right. I want to remind everybody, this market selloff started with the fed and continued with the china trade, and just to bring those two together, what we dont want is inflation and that would cause the fed to raise rates. So doing something to manipulate our krenscurrency probably not d idea. Dagen we need some powder at this point. 9 of 10 americans are for stronger background checks. 7 in 10 want stronger gun control laws. Only 14 of americans are confident the governments going to do anything about it. Congress, its time. Surprise us and do something the people want. Dagen you think it can get done . I dont know. I dont see any indication that any of the politicians are willing to work across the aisle right now, especially in an election year. Im concerned. Dagen on both sides of the aisle, demonization comes first. Thats a problem because again, you alienate those people you need to come together with you. Thank you so much, lee, jack, mitch. Mr. Varney, take it away. Stuart thank you, dagen. Good morning to you. Good morning, everyone. Financial turmoil worldwide as china starts a currency war. Overnight, china dropped the value of its currency to an 11year low. That is their counter to the president s tariff threat. It is an escalation. It is financial confrontation. President trump calling it currency manipulation. Do not underestimate the impact of the continuing problems in hong kong and chaos in hong kong. The place was virtually shut down over the weekend. This is president xis backyard. The instability poses a threat to his authority in the rest of china. Its part of the trade talks. Now look at this. A selloff on wall street this moay