Raytheon, chevron and phillips chemical putting pen to paper just a few moments after that meeting with the emir, inking deals with qatari businesses, but do those deals negate the harsh truth that qatar is one of the few countries that will not cut its diplomatic ties with iran . We are about to get an answer to that in just a moment. While the president strikes deals with qatar, china trade talks lurching forward, kind of in fits and starts, but some u. S. Companies are still terrified that tariffs could derail profits. Jeff flock is live in milwaukee with that company on your screen, one company desperate for an exemption to keep the trains running. Theres a new billionaire running for president on the democratic side. Tom steyer, best known for his Environmental Activism and also this push to impeach President Trump, but will voters buy into a billionaire who says hes running against corporate greed . How did he become a billionaire . A former adviser to president obama and former chief of ubs of america, he knows both sides of the story and hes here with his assessment on tom steyer. A mixed picture on wall street. With the nasdaq up 34 because tech is really leading the nasdaq higher, materials and telecoms keeping the dow and s p a bit under water ahead of critical testimony by the Federal Reserve chair in less than 24 hours. We are going to take you live to cleveland, one of my Favorite Places on planet earth ahead of tonights allstar game. Our countdown closer gives us his triple play defensive stocks and charlie breaks it live from sun valley, idaho. Big story hes got. Less than an hour to the closing bell. Lets start the claman countdown. Liz we have this news that just is breaking in the past hour or two on u. S. china tariffs. U. S. Trade representative Robert Lighthizer and treasury secretary Steven Mnuchin just got off the phone with chinese vice premier liu he. Officials say both sides are continuing negotiations to resolve outstanding trade issues, but we really didnt give any detail so again, thats why i said fits and starts. Lets look at the impact on the markets. You know, not really anything too dramatic. You could argue that everybodys waiting on Federal Reserve chair Jerome Powells speech to congress tomorrow. Its a twoday kind of q a opportunity, first with the senate, then the house. Used to be called Humphrey Hawkins testimony. We are middling around. The Dow Jones Industrials down 56. S p about flat as a pancake and the nasdaq is climbing 35. Lets talk about networking equipment giant cisco systems. Both a nasdaq and dow stock. Its buying optical component maker for 2. 8 billion. Let me give you the optics of the deal. Cisco, which is up about a quarter of a percent right now, is paying 70 in cash for each acacia share. Right now, thats at 64. 94, even with a gain of 35 right now. So when cisco says you know what, we will offer you a 46 premium to mondays close, investors really seem to think that that, for the moment, is the right price. Cisco says this transaction will allow it to build its switching, routing and Optical Networking portfolio, maybe even 5g. Cisco is really kind of the company that might want to very much take on chinas huawei. This deal will apparently close in the second half of ciscos fiscal 2020. Other optical makers are getting a nice bump here on this. Supplied opto electronics, moving higher, anywhere from slightly higher to 13 gains. And a lot of eyeballs on a screen these past four days. We are talking about netflix. The megahit Stranger Things broke the record for netflix. The streaming giant saying that 40. 7 million households watched the third season of the scifi show since its release on july 4th. Right now, we do have netflix up 1 or 4 but at 380. 19, youve got cowan citing Stranger Things as the reason netflix is sort of the boss of the living room at the moment. What a year its been. Year to date the stock is up 41 . Good stuff. Im waiting. No, nobody tweet me on what happened. Dustin. Hes so cute. Lets get to boeing. Now worere watching it. Look how choppy its been. Look around 1 00 p. M. Thats when President Trump threw out the name at the very end of a presser, where he said oh, by the way, were about to have a big announcement in boeing. It was almost like a tossaway. Immediately you see the spike, then it fell and fell even more, now we have boeing up half a percent, widely held stock right now despite reporting a 37 drop in deliveries due to, of course, the grounding of its max jets. The stock popped after President Trump and the emir of qatar discussed the incoming order for the airplane maker. Then a few minutes later, listen to this. Today a very large transaction, youre going to be invited to the signing. Its a transaction that will be purchasing a lot of boeing jets and a lot of money spent in our country. That means a lot of jobs. Liz so then the signing ceremony, a flurry of signings, where the president put pen to paper basically flanked by a lot of the ceos involved. Qatar airways purchasing five boeing 777 freighters. That order was announced at the Paris Air Show but executives of other companies such as chevron, ge, gulfstream and raytheon, also on hand to sign billions of dollars in deals with the middle eastern nation. Lets bring in dick cheneys former National Security adviser, john hannah. You know, john, what struck some of us here was that were we just watching at our National Security takes a back seat to business deals because its important to know that qatar refuses to cut diplomatic ties with iran. So could you interpret for us as a former National Security adviser, what you saw unfolding here . Well, thanks, liz. Listen, this is a deeply important but also deeply problematic relationship that weve had for a long time with qatar, who has played a dual game with us. On the one hand, it hosts the largest American Military base in the middle east. Absolutely strategically crucial. We are allowed to do almost anything we want in various conflict zones from afghanistan to iraq to potentially an iran contingency out of qatar. The qataris pay for almost everything. On the other hand, as you have mentioned, the relationship with iran, the fact that qatar is the worlds foremost sponsor of the muslim brotherhood, that they own the aljazeera tv station that just constantly incites hatred for the United States and israel throughout the arab world. Its a deep problem. Liz it does get vicious on one end, and yet as you say, weve got 10,000 american troops right there. Could that end up, im trying to think like President Trump, the businessman, could that end up being a bargaining chip meaning it actually wasnt even President Trump but the former air force commander who suggested in an oped today that the president could demand that qatar either cut ties with iran or we close our air base. Listen, i think everything needs to be on the table. I think the u. S. Should be much tougher with the qataris regarding their malign activities against u. S. Interests in the region but ive got to tell you that i worked for the Bush Administration during the iraq war. They were awful, their involvement with al qaeda was really hurting and actually getting u. S. Troops killed in iraq, and we tried to march up that hill of threatening the air base if they didnt fly right, and we never got there because the military value of that base is enormous to our troops who are in harms way. They have a degree of flexibility to conduct lethal operations anywhere in the middle east from that base that nowhere else in the middle east yet provides us. Liz okay. Well, from a business standpoint, because i dont like what you just said i mean, i understand what you just said but it is disturbing that they were not helpful to us and yet we need it so we would be cutting off or nose to spite our face but whether its General Electric medical, striker, boston scientific, st. Jude, these are American Companies that have still legally been allowed to do business or there are so many others itching to do business with irans 81 Million People, second largest country in the middle east, do the europeans also want to do this but they want to do it without inflaming americas anger . Listen, i think all Foreign Companies are looking at that Iranian Market and desperate to get in there, and i think thats the case. But nobodys going to be able to do anything so long as these crushing u. S. Sanctions are in place. Even if their governments wanted to do business with iran, their companies are voting with their feet, voting on their bottom lines. If its a choice between iran and the United States, thats no choice at all for these companies. They go with the United States. Liz i just want to quickly, because we are running out of time, india, get to india, because the president today kind of dropped a brand new trade grenade on india, saying enough, already, you just raised tariffs on u. S. Goods that come into that country. You know, i thought we had a Good Relationship with india, yet now it appears that we have an unfair trade landscape there . This escalation in trade tensions with india, we have got negotiators going next week. The president undoubtedly wants as much leverage as he can going into that. The question always with the president , as has been the case with other european and asian allies, is do you want to be picking all these fights at once or would you rather be rallying everybody to the major challenge that we have strategically with china and its undermining American Security and prosperity across the globe. Thats the big question the administration faces. Liz john, thank you very much for your perspective. We appreciate it. John hannah. All right. From dealings at the white house to testimony on capitol hill, weve got to wait another 19 hours for what is expected to be the defining market event this week. Thats when Federal Reserve chairman Jerome Powell kicks off his twoday testimony before congress. Why is this so significant, considering he spoke to a group today . Because it will be his first public remarks since the trade ceasefire and the latest jobs report which was rather strong. While criticism from the white house has rained down on jay powell in recent weeks, just this morning, National EconomicCouncil Director larry kudlow bestowed little bit of sunshine on the chairman saying powells job was quote, safe at the present time. Okay. At the present time . Boy, did kudlow leave that open to interpretation because it could all change tomorrow if powell says something during his speech or even during the q a session after that that displeases someone at the white house. What might that be . To our floor show traders. John corpina, what will, could, jay powell say that could once again raise the ire of President Trump . You know, i think the message that we heard before from the fed that they act alone, that theyre not going to be influenced by the white house, and if they Say Something thats contradictory to what we heard coming out of the white house, i think that might spark that conversation, that criticism. Lets just also be clear. President trump has made it, you know, very very clear from the beginning that no one who works in the government is safe. At any given point, we have seen that revolving door at the white house continually turn around. So i think this message of hes safe for now, that comes out of the white house, is something we have heard over time. This is just to kind of spark some criticism. Liz yeah. Phil, the perception by the fed funds futures traders, the guys who bet on the odds that we will see a rate cut at the end of this month when the fed meets, have diminished dramatically. We just showed it. First it was 93 but as soon as we got the jobs number, it fell to 7 because do you really want to use one of the arrows in your quiver when you need to save them for really difficult times . Yeah. I mean, thats the big debate that traders are looking at. That hits home, why this testimony is so important. Thats what traders have to find out. Has the recent jobs numbers changed his view on cutting Interest Rates . Is he still concerned about the u. S. china trade war . All of that is going to come into play. I know the one thing he should come out and say, he should come out and say i dont care what donald trump says, thats not my job, right . He should declare fed independence. He probably will. But the last time i saw him talk about that, where he said listen, you know, im scheduled to serve so many years and i plan on filling it out, it seemed like he was getting that pressure from the trump administration. He has to go beyond that and say listen, the president can say whatever he wants, ive got a job to do and my job is as i see it, just potentially cut rates at the next meeting as long as were moving in this direction. Liz well, i dont venture to guess what members of congress will ask, but i will say this. Somebodys going to say will you cut rates at the end of this month. It will be really interesting. I think both of you, its going to be big. John, phil, good to see you both. Thank you so much. All right. Investors are ripping down the postit notes, with the closing bell ringing in 45 minutes. 3m stands for Minnesota Mining and manufacturing, is the biggest drag on the dow at this hour after rbc downgraded the maker of sticky paper pads and scotch tape to sector perform from outperform. Rbc also lowered its price target from 207 down to 176 a share. Still below that at 165 right now. Aside from pressures on its auto and electronics businesses, perhaps a bit more worrisome is the concern related to ongoing litigation regarding 3ms role in water contamination from a toxic chemical which was shown up across the nation from alabama to minnesota. Shares are already down 11 so far this year. Up next, the trump tariff train barreling into companies both big and small. Jeff flock is riding the train in milwaukee with one allamerican business hoping it wont be the next to get derailed. 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Awesome. Ill pass. Billions and billions of dollars in tariffs are coming in and chinas paying for it, not our people. Liz but as neil cavuto so often gently says, to clarify, it is our people, americans, who pay the tariffs on chinese materials coming into the u. S. As American Companies have been trying to absorb as much of the cost as possible, without hiking their own prices for their customers, the president consistently warns there could be more tariffs coming down the track if china does not meaningfully change their ways. So what do bicycles, cell phones, microwaves and yes, model trains have in common . They are all among the items included in the additional 300 billion worth of tariffs being threatened against china. Maybe the upcoming ones, right . Well, leading companies are already clamoring to head that off at the pass and desperate and ask for exemptions for their products. Is there some relief . The office of the u. S. Trade representative today announced exemptions for 110 items, some of them on your screen here. On the first round of 34 billion in tariffs. Take a look at some of these. Everything from heat exchangers, thats the first item on the list, to humistats. Jeff flock is at walthers, a milwaukeebased manufacturer distributor of model trains and model train parts. Tell us, are they looking for an exemption ahead of this, jeff . Reporter oh, you betcha. Youre looking at main street middle america. I tell you, if youre into model trains, you know walthers. This is a company four generations of family. Can you see the other camera . Look at that. Liz yeah, we see it. Looks great. Reporter fascinating. Model trains are big and a lot of the pieces, this company has been making trains for decades, a lot of the pieces come from china. I have the president of the company, fourth generation president of the company. Is there any way around this . If you dont get an exemption, what happens . If we dont get an exemption from the list of tariffs, we will have to raise prices which we do believe will depress demand. Reporter number one, the president says as liz pointed out, china is paying the tariffs. Actually, you would be paying the tariffs. Yes. We would receive a 25 additional import duty and that really has to be passed along. Our merchants cant support that. Reporter some people say if you can afford to buy these trains, you can aff