Swing up to 50 points. This is going to be a bit of a wild roller coaster this morning. We are anticipating more comments coming from the president as he continues to have these meetings at the g7. This can be very far, wide ranging and a lot of things can get comment on youll see the futures potentially move around on all of this. The nasdaq is up by 82 points. S p up by 20 coming after a big down day on the markets on friday when the dow was down by 623 points that pushed the major average down for four weeks in a row and you are looking at august being a month where well see declines very likely. The only other month we have seen declines is the month of may. Ten year looks like 1. 49 . The two year 1. 45 obviously these markets keying off everything thats happening out of the g7, too lets get right to aimen javers in france at what has been a wild and memorable meeting aimen, good luck wrapping this all up for us. Reporter yeah, absolutely, becky. Let me start with the comments the president made about france talking about china making optimistic comments about the state of negotiations. Here is what the president had to say china called last night, our top trade people, and said lets get back to the table. So well be getting back to the table. I think they want to do something. They have been hurt very badly they understand this is the right thing to do. I have Great Respect for it. I have Great Respect for it. This is a very positive development for the world. Reporter so the president saying its a very positive development for the world and the chinese side called the u. S. Side to go back to the table last night we have been pushing u. S. Officials traveling with the president in france for more detail on what exactly transpired last night. Stephanie grisham emailed me saying she has nothing further to add other than what the president said so thats what we got on that for now and it comes after a weekend in which the president sparked a little bit of confusion when he was asked if he had any second thoughts about the china trade war. The president appeared to respond in the affirmative to that over the course of the weekend saying i have second thoughts about everything. Of course i do but then almost immediately after that white house aides went out to spin those comments and said, no, no, no the president is not saying he has second thoughts about the china trade war. The president is not weakening he regrets he wasnt even tougher. Other officials including larry kudlow suggesting the president misheard that question they spent a good 12 hours or so over the weekend trying to sort of get their arms around that situation. Finally where the white house landed is that the president is not backing down on the trade war with china he regrets not having raised the tariffs higher well see the president a few more times here through the course of the day. So be nimble because we will see a few more of those. Some has been very spontaneous during the course of this g7 we dont know exactly when well see the president throughout the course of the day, guys. All right thank you. Were you over there for your weekend, right you bet reporter yeah, thats right. Wasnt really a weekend for you, was it . Reporter it was a working weekend, but were here at the beach. Its lovely. Cant complain. Lifes a beach. Asian markets tumbled overnight closing sharply lower before trumps comments we saw big drop in china us yuan overnight falling to its weakest level since february of 2008 and that got scary on friday because it looked like totally this was going to be the answer tit for tat that we have going back late yesterday last night i was looking at the futures down over 300 yeah. Then they paired that to 100 this morning next thing you know i dont know that we have any answers out of any of this this will be more of the same for a while. And its were all what are we off the highs, santoli, 3 to 4 . The point moves are big. Got a lot of press and Everything Else. 145 on the tenyear. The bond market didnt really respond too much the way the equity futures did the way to read it to me the market was down over 2 on friday because of the signals out of the president , okay, well have an open ended escalation here perhaps and were not really looking for the opportunity. I dont think the good news is theres no deal priced its not as if we have to unwind sentiment was already negative people are positioned cautiously i dont think you necessarily have to bleed the market that much in order to account for where we are right now, but its very telling the way the market responded this morning because the signal from the president is just like, lets just put a brake on this idea that i just want to push, push, push if we really took a step back, wouldnt we have said ill bet we never get to im going to 40 on everything right. Im pulling all the u. S. Companies out of china that probably was never going to happen well, maybe not just to say it publicly its a negotiating style. Wouldnt you think that that gets walked back businesses were looking how to get out of china from the very getgo as soon as you knew this potential was coming. Theyve been looking for ways to get out. Saying were going to unwind 30 years of integration with china in attempts to do business there is not necessarily something that takes it off the markets plate. Or finally you know, start to balance out some of the inequities of the past 30 years that weve just been sort of taking. Sure. Just because of it was an important relationship the yield curve if we dont care anymore. Whats a couple bases points is the latest. Do we not care or is it just simmering there. We dont know. You know whats funny its inverted again. Remember every tick of the chinese currency above 7 was considered to be crucial and then the market kind of fine, this is where we are we can reset for this level as long as it doesnt reset its similar with the yield curve. Well talk european markets have been trading lower, but even there pushed higher after President Trump said that china wants to get back to the negotiating table. We might be closer than we ever were paul, i think just looking at some of your comments, theres a lot of noise, but you feel like if an investor made some decisions recently about longterm longterm plans and fundamentals you should stick with these absolutely. Nobody made any money on the tweets its too hard to do. Fundamentals are good. Earnings are going to Grow Consumer is in good shape. Stick with your Financial Plan and dont try to trade on day to day tweets youll get chopped up. That sounds like it came very naturally for you to say that, but with the yield curve and with so much that something is slowing here were staring at a real slow down i just read that again how investors should prepare how these financial whatever they are services they got to churn out this content everyday and it drives me nuts because they hang it on nothing half the time but are corporations now looking at how to react to a huge slow down globally . I dont think so. We have slowed so the u. S. Particularly the biggest economy in the world, were not really slowing anymore. Last year 3 youth were at 2 we have slowed corporations are responding. Big thing is uncertainty theyre responding to the uncertainty of the tariff blizzard of tweets, but the reality is as long as consumption holds up, companies have to make things. Were seeing a big gap between consumption and production right now. That gap if it holds up and consumer holds up, companies have to start producing again and see Industrial Production rise again and things will be okay. We certainly didnt see it in walmart or target results. Ryan, what are your viewing . Joe, very similar lets get some good news here. S p is down four weeks in a row. Thats the bad news. Good news, ten years since the bull market started s p has been down five weeks only once in 2011 future returns after down four weeks in a row not surprisingly really strong one month to three months out but you know, i want to tell you something, 15 years ago today was my first date with my wife anyone been in a 15year relationship will tell you theres ups and downs. Lets look at this bull market up 30 almost from the december 24th lows, up 20 for the year, best start since 97 here comes august. Here comes september troublesome months the most s p has pulled back is 7 the average year pull backs back 10 . We had two separate 5 corrections. Yes these scary headlines and 3 drops on one tweet aggravate everyone, but the bigger perspective of things, things are positive leading Economic Indicators are strong the consumer is still strong housing stocks 52 week highs you dont see that ahead of a recession. We can have a slow down and volatility this upward trend is still good in your opinion. Its not just the tweets. Its the ten year. Can you explain that 145 op the ten year. Truly fascinating everyone expected a higher ten year and everyone has been wrong. The short end has been inverted the belly of the curve is flirting with inversion. The long end its not broke the recent lows it had this summer nowhere near inversion you need that long end to also invert yes, the yield curve is concern. Our opinion is the market saying hey here comes rate cuts we think thats the case. Thats getting pretty volatile there, too. Theres other stuff out there the editor of the global times in china, the editor in chief is saying based on what i know chinese and u. S. Top negotiators didnt hold phone talks in recent days. Two sides have been keeping contact at a technical level it doesnt have the significance that President Trump suggested china wont cave to u. S. Pressure that may explain some of the pullback weve seen in the futures since then, too. Were still up 250. We were up 350 plus. It doesnt matter crucially if there was a phone call or high level phone call. Its the messaging that, okay, were looking to continue this process. Right they were talks scheduled for next month any way its also hard to see how things have gotten that much easier how theres a deal thats going to be at hand. Without a doubt keep in mind the bounce in the futures gets us back to noon friday because 600 points on the dow higher at 10 30 a. M. When all this got going. Right between now and november 20th of next year im certain there will be some type of this is the greatest deal weve ever gotten whether its codified into china law or whatever. China at this point might be when you hear, already, better off without china . They would not be better off with the United States. No. It would be more painful for them you think we get a deal between now and then because President Trump wont be able to have some sort of victory . Both sides. They have hong kong. At this point they have both been willing to cut off their nose despite their face. Im not saying its an effort shattering deal. Tensions ratcheted down. You dont think so, san tolly . I just think that every time we had one of those cases made, i think the mistake that wall street professionals have made is assuming that rational outcome for both sides is to come together. And thats been proven wrong successively pretty much every round of this. Yes, its very logical to say that why wouldnt you want to have some kind of progress to show and just sort of break this cycle of mutual pain i dont know how to handicap this. Stay the course you figure something will get done, dont you . Stuff will get done its maybe rational to play this game right now but also rational to not let it get too far out of hand this is posturing. This is position. Its reigning in some of the rhetoric we heard last week. Exactly the fact whether there was a phone call or not, that doesnt agree. He positioned positively it wasnt like they called me and i hung up. It was they called me and i wanted to talk to them i think that matters and theres no its a no win to let this explode but its a win to posture and try to get the upper hand. Do you think it was a coincidence that the president ratcheted down some of the talk. He saying nice things about president xi after insulting xi more than he ever could by saying he was like jay powell. Thats throwing some shade, saying im as mad as you i forgot about that. Im as mad as you as much an enemy perhaps. Thank you, paul thank you, ryan. Well see you around thanks. When we come back, another big story thats rattled the markets. Tension rising in hong kong as demonstrations turned violent and Police Responded with water cannons. They aimed the weapons at the protesters were going to take you there live. Right now as we head to a break, lets take a look at the biggest premarket winners and losers with the dow. Apple was the big loser because of concerns of the trade talks is now the biggest winner up by about 1. 8 you should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Welcome back, everybody. Tensions rising in hong kong demonstrations turned violent over the weekend as police used live ammunition and water cannons. Nbcs Janis Mackey Frayer joins us right now with more on this front. What can you tell us reporter it was a serious escalation over a weekend that started with a miles long human chain and then ended with molotov cocktails and gunfire. Today police were defending the six officers who drew their pistols. This seems to be the new routine now. It seems like the protests no matter how peacefully or quietly it starts or unfolds ends like this in these clashes between protesters and police. Were in a situation now where each side is obviously testing the other to see how far theyre willing to go. It presents a dilemma. The other question is at what point does china intervene Chinese State media today is using its heaviest language yet in talking about these protests in saying that its now hong kongs government responsibility to stop, quote, rioters and that this is now in the eyes of china a Color Revolution before they were saying that it only had characteristics of a revolution now they are declaring it to be one. Remember, in chinas eyes, its the u. S. , uk and oir foreign governments that are behind this accusing them of meddling. So there are a lot of ways that china can exert its force here beyond the Para Military forces they know are staged about 17 miles down the road from here. There will be more arrests there were dozens over the course of the weekend. The youngest last week was 12. Of course well see more pressure on multinational corporations and businesses who are dependent on the mainland to make sure theyre towing the party line janice, thank you very much Janis Mackey Frayer of nbc. Coming up, well get back to our big story President Trump saying china is ready to get back to the negotiating table. Dow up higher after his comments reaction from the ceo of Boston Consulting Group is next whos dog is this . Its my special friend, antonio. His luxurious fur calms my nerves when im worried about moving into our new apartment. Why dont we just ask geico for help with renters insurance . I didnt know geico helps with renters insurance. Yeah, and we could save a bunch too. Antonio fetch computer antonio . Ill get it. Get to know geico and see how much you could save on renters insurance. Is it to carry cargo. Greatness of an suv . Or to carry on a legacy . Its show of strength. Or its sign of intelligence . In crossing harsh terrain. Or breaking new ground . This is the time to get an exceptional offer on the mercedes of your midsummer dreams at the mercedesbenz summer event, going on now. Lease the gla 250 suv for just 329 a month with credit toward your first months payment at the mercedesbenz summer event. Mercedesbenz. The best or nothing. Our top story, President Trump says china called and is ready to come back to the negotiating table. President trumps message to American Companies to start looking for alternatives to china. Joining us with more on this is rich lesser the ceo of the Boston Consulting Group and member of the business round table or the brt you guys dont have delusions like youre in camelot or something, right no. We sit in a room theres no king really . Theres for sure no king. You show everybody is equal it is possible for the president to declare some type of emergency and say get the hell out of china, right i dont know. I think thats what the lawyers and the politicians will have to sort through, but it certainly raises great concerns. Theres no question when he says that it causes a reaction on friday. Do you think its a negotiating ploy was it said for chinas benefit . Well see when it first started a year ago or when ever people assumed this was all about negotiations, its gone on quite a long time. You see the uncertainty playing through and plays through how Business Leaders view it and how they think about investment. What impact is it having to this point i think we have to separate shortterm and longterm shortterm we have two concerns. One is if the tariffs really play through, then we really are talking something ekwif tent to a tax effect Consumer Behavior which has been the strength propelling the economy is a factor we see investment already not at the level we like it to be and the longer this uncertainty plays through the more were seeing for most companies. You can bet if theres a huge amount of uncertainty for something as big as the relationship with china, that will play through. Thats the shortterm. Then you have two longer term effects. One is really the comments strongly made on friday encouraging decoupling of the Global Economy china is the second biggest economy of the world, growing fast decoupling cannot serve either the global or the u. S. In the longterm. Second the implications of how china views this in the longterm. If you dont know where the u. S. Is coming from or trustworthy partner, it encourages you the invest faster that the u. S. Has been so focussed on negotiating on clients of boston consulting at this point elevated this to a level where youre work for them is really focussed on this or is it a background issue . I think for most compan