, Gary Kaltbaum and well the president is firing off this tweet, china dropped the price of their currency to an almost historic low, its called currency manipulation. Are you listening, Federal Reserve . This is a major violation, which will greatly weaken china over time. Wall street not liking that tweet at all today, but how much of a beating could markets take . What do you think . Look, i think they can go lower. Look weve had a good year already. Markets were up in the 20s. They were due, and theres some issues out there that have to be addressed. I ask myself questions every day why is the 30 year bond germany trading negatively. Why . Aways the economy there is sink ing and if germany is sink ing europe is. Same with japan. I think Economic Growth is slowing down and the market sees it and what happened on thursday with the pivot from the president really donald trump trick and i must tell you the dow is down about 1,450 points since, apple is down 115 billion of wealth since, and markets around the globe trillions so i suspect theres more time and price, but i also suspect were going to get the fed talking in the next day or two, either saying were definitely going to lower rates in the next meeting or they may lower rates in between because they address markets before they address the economy. There have been two things to garys point that have been driving the market. One is how the trade talks with china have been going and secondly what the fed outlook is it was not at all surprising to me that when the fed actually came through with a quarter point cut, that actually markets traded off because thats very typical of wall streets reactions. Now, markets are banking in three more quarter percent rate cuts, in the remainder of the year. I think thats probably a little bit optimistic, but look, what we all know and gary im surprised you didnt mention this is that President Trump can turn around this market tomorrow , by being optimistic about trade agreement with china this thing has been going back and forth. I think what happened today is that actually people got really negative about these two sides coming together for a whole host of reasons, and unless that pessimism breaks i agree with gary. I think it could go lower. Yeah, look this is also a case so whats going on right now david speak english. Externality. Its like a storm that comes out of nowhere. Its not because corporate earnings have been weak. Theyve been way more up beat than most analysts expected a few months ago in terms of the s p 500 so this is not the time to really head for the exits given that there isnt a real deterioration of what markets often trade on which is the underlying strength of the companies that theyre made up of. The more astonishing today is how low Interest Rates sank to a 1. 75 on the 10 year treasury. That is, thats some serious selloff in a world that people thought Interest Rates were going to creep higher with inflation but i think for stocks right now and whats the fundamentals of these Companies Break down, you know, this is not a market that is on the surge of a collapse although its definitely due for correction. David what does it look like from bermuda i wonder . It looks crazy were right in the middle between brexit and a trade war in the United States so were in the middle of those in bermuda, but look, i agree with that the markets trade on fundamental, the economy, but you have these externalities as zach mentioned, nobody can handicap what happens in this trade war, weve talked about this every month, that a trade deal is coming. I just dont think its coming and you add to that brexit which there has been every type of prediction from europes going back to the dark ages to all the way to europe is going to be perfectly fine and good. Nobody knows how to handicap this and add to that whats going on, and iran just seized another tanker and whats going on in india when they dropped out of article 370 now pakistan said theres no peaceful resolution is possible, theres a lot of things going on in the world right now. Thankfully the u. S. Economy is doing very good. David thats right no other place to go. Its about the only place to invest right now. David exactly although gary you mentioned the fact that december weve come up since december its true but at one point we were down 21, 712 on the dow, wed have to drop about 4,000 points in order to get there again. Is that where were going again . Im not there. I just think we go lower and what i do is every night i scan 1,500 stocks, 200 sectors, every country. Things are pretty much breaking down here and id say shorter term, were a bit oversold. People got real pessimistic today on all my measurements so maybe we bounce but i think well go lower and i think were going to have a situation of what i call the president who cried wolf. Too many times over the last year, weve talked about it, where we hear trouble and the president says everything is great again and then we hear trouble that everything is great again and i think markets are getting a little winded to that especially when we come out of the g20 and theres not going to be any more tariffs and markets are all well and good and acting fine again, and now we get it again, so if the president comes out tomorrow, which by the way i think could happen and say oh, i just spoke to xi from china and were back on track and not going to do the tariff i think the market rallies but im not so sure its going to be that big a deal because its worried about the next time. I think it still will be a big deal, gary but i want to pushback a little bit on johns comment that trade negotiations have not been going back and forth. In fact over the last year china has made any number of concessions which led to optimism that they were ready, they were going to back off on that. They were going to allow a lot of Financial Services companies into china. They actually did make some moves that were pretty encouraging and then in may, it all broke down. I think what we saw thursday was President Trump just really being angry and frustrated, that the chinese are simply holding their ground, and i think that hong kong is a big deal here. I think that xi cannot afford to be looking weak internally in terms of how hong kong is striking back at beijings authority and also in terms of its negotiations with the u. S. I think thats part of the problem and gary, to your point, as we all know, he could make an announcement tomorrow and i think it still would move markets. Liz i respect your opinion but i do disagree with you. I dont think you can name one thing that china has done that theyve actually followed through on. Credit Card Companies then, for example. Chain is just killing it. They are building out the soybean infrastructure out of brazil. We buildout our farmers to 28 billion. Theyre saying the right things but not doing anything. I think china is just killing the clock seeing whats going on in the u. S. And the problem is president xi overestimated his hand, and President Trump has overestimated his hand, that the chinese economy is deteriorating and this does not lend itself to an off ramp where we can get out of the trade war. David were going to talk more about china coming up but i just want to ask zach. We have been in a bull market for a record period of time. Im just wondering are we entering into a bear market right now. Thats a 20 drop from the high over 52week period. Right but you reference what went on at the end of 2018. David that was a mess. Which went into bear market territory for the nasdac and a major correction so if you look at the past year you had a really strong seven months into 2019 but a terrible last end to 2018. Its been a relatively flat market for more than a year almost coincidental by the way with whats gone on in terms of the trade war. Theres been money to be made, but also money to be lost. I think were more in a pause where a lot of these political issues which none of us know the outcome of. It doesnt particularly look good right now, are going to have a huge bearing but there is one other factor to keep in mind which is in a world where theres a lot of money that looking for yield or looking for a return with Interest Rates this low and economies this bad the u. S. Markets still end up looking very attractive even with all of this noise. David compared to negative Interest Rate anything positive is good and were a little above positive. Good to see you gang, weve got more coming up 31 people have tragically lost their lives as a result of two separate Mass Shootings this weekend, but could at least one of them have been stopped if weve been more closely monitoring internet hate sites. Cybersecurity expert morgan wrig ht talks with us about this, coming next. Hey, who are you . Oh, hey jeff, im a car thief. What . im here to steal your car because, well, thats my job. What . What . . What . laughing what . . What . what . [crash] what . haha, it happens. And if youve got cutrate car insurance, paying for this could feel like getting robbed twice. So get allstate. And be better protected from mayhem. Like me. David as the country reals following two Mass Shootings this Weekend Police are looking for a motive and focusing on the el paso shooter socalled manifesto, and specifically, on that fringe form on which the manifesto was first posted. Now this is the third mass shooter to post on that site, before attacking the shooters at the Christ Church new zealand mosque shootings, and the california synagogue shootings also posted there. Joining us is cybersecurity expert morgan wright, to tell us more about what could if anything had been done. Now morgan cloud flares that is the site that hosted it and they shut down the forum for now, but what more could be done to regulate these smaller sites that are out there . Yeah, david this is the question that is going to take, its not a technical question. This is a political question and a policy question. As fast as you take it down, Something Else will pop up and itll become the site for that. You take that site down it on the internet why because the internet is open and available to everybody. What weve got to get back to doing is saying is there a way through either one using intelligence and information that you develop these shooters like in parkland remember tips were received on the parkland shooter it just got lost and wasnt delivered so how do we use Artificial Intelligence, and do this in realtime but its going to be very tough. Do you know why because people then quit posting and wait until afterwards and post it so david this is probably one of the toughest questions ive seen my friends in Law Enforcement intelligence handle and theres no easy answer to this. I wonder rather than thinking about this in terms of censoring or precensoring speech other than approximate threats, im not sure we would want to empower any Regulatory Agency to be able to take stuff down even if its a hateful expression of a manifesto. We have a long tradition in the United States of defending speech that we find abhorent and i dont nowhere you would even draw the line unless its very clearly someone saying im going to do x and people are going to die. We do not protect that kind of speech but how would you draw the line . I think you hit upon a great question and this is where we start looking at Artificial Intelligence and a common set of indicators that says look we have a terrorist watch list and the money and antimoney laundering and lists of where if you do certain things you get on there. So if we get to the point and the fbi actually is in the process of releasing a proposal to do exactly that how do we get realtime or near realtime information on social media so we can look at it for terrorism and crimes in progress but i agree the last thing we want is some agency telling you what the to say as opposed to what you said is criminal now lets respond to that as quickly as we can. So morgan what really is criminal is an actual threat. If people gather together and threaten some group or some institution, that is something you can go to jail for, i believe, isnt it time for maybe the regulators or the legislators to come up with laws that make the internet sort of comparable in terms of Law Enforcement legality because that seems to be missing. I spent 18 years in Law Enforcement did a lot of work with the intelligence community. It would be great if things came with a red flashing light that said im about to commit a crime and here is what im going to do this is fundamentally a policy question once you figure out the policy how do we use technology to accelerate the implementation of that policy but i agree its got to be a law. Its got to be a regulation not a whim of a company of a facebook of a twitter or youtube that arbitrarily decides whats free speech or not. Thats a government responsibility. Morgan, the whole day today, morgan we were hearing one side say video games bad, the other side said video games doesnt cause anything. All i know is ive watched a couple of my godsons play some games i could not believe what i was seeing. Where do you come down on that, and where do you think government comes down on that and where do you think government is going to go headed with that . Look when i first started in Law Enforcement, in 1982 date myself, the worst kind of games online little airplane games and i played those, you know the duck game you shoot the duck, mike tyson boxing. Weve come far to where its so realistic weve desensitized an entire generation of people saying shooting something pulling the trigger theres less effect to that. If hollywood wants to make a statement quit being in movies then that glorify violence or the killing of people and have these stars quit taking roles and start making other movies but the reason they do it its unfortunate why because it still sells. Morgan thank you for joining us. One thing that local Law Enforcement officials have said before weve heard on this show is that the last mile is missing right now. You dont have the information to the local precincts that you have from the fbi and from the Central Intelligence agency. How do you address that and is that as important as what weve heard from certain Law Enforcement officials . It absolutely is. Ill tell you the chief in dayton has been a long time friend of mine he and i sat on the Community Police committee and hes got one of the best relationships with the community that you could find anywhere and that last mile, its what sir robert peel said when he invented the London Metropolitan police. The police are the public and the public are the police. Were all in this together. That last mile isnt about technology its about policy and community and being a common the and working together and when theres something out of whack in your community its having the Law Enforcement to report that knowing they will use it judiciously and correctly. We dont want this to be an over arching censorship and 1984 thing but weve got to do a better job of sharing information between the public and police to identify these threats sooner rather than later david i wish we could convince hollywood were all in it together, morgan youre the best thank you very much for being here. Appreciate it. You bet, david. David trade tensions ratcheted up as the president slams china foreman in you lating its currency and now a new threat from china against u. S. Agriculture and our farmers in general. A live report from the white house, coming next. 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Exactly, david a gut punch for farmers in the United States the commerce and industry spokesperson in china confirms the china will no longer