Heres the jargon, the yield curve inversion. This is fed day and a very big day. In advance of the official word on rates, stocks have been all over the place this morning, up and down, moment to moment. Right now we are looking like a loss of maybe 112 points for the dow and down 45 on the nasdaq. This is whats hitting the market, china. China says it will impose 5 to 10 tariffs on 75 billion worth of u. S. Goods. That is obviously a negative for china trade. Its escalation and therefore, bad for the market. Elsewhere, later today, the president leaves for france for the g7 summit. Interest rates and trade will surely come up there. They are gearing up for more big protests in hong kong. Were on it. And just wait until you hear what larry kudlow says about tax cuts. Lets get going. Varney company is about to begin. Weve negotiated with them, weve tried to move the football. They have backed away and we have taken measures through all of that time, weve had a very strong economy, weve had a very strong stock market because the market looks at the data and understands that even though this relationship is very important to get right, the actual amount of money thats being tariffed is not material in terms of macro growth. Stuart all right. That was obviously Peter Navarro on this network earlier. I think he was downplaying this mornings imposition or threat of imposition of tariffs by china. The market did react to that. Stocks went down right after chinas announcement. We are still down about 100 points for the dow with 28 minutes to go before the market opens. Market watcher Rebecca Walser is with us. This is tariff confrontation, right, its an escalation in the trade fight and thats why the markets down. Have i got it right . Absolutely right. Obviously busy morning before the market even opens. This should have been expected. We knew china was not happy with trump escalating on the last 300 billion obviously before september, then december, now pulling stuff back, so this is a retaliatory, you know, play pure and simple. Stuart look, i was hoping for a shortterm intermediate modest deal but i dont think we are going to get it. Instead we have confrontation and the market is down. Stay there. More from you in just a moment. I want to get to hong kong, where the protests continue. They are ongoing as we speak. Susan li joins us by phone. Susan, tell us about what we are seeing on the screen, a human chain of freedom. Susan its incredible. Yes, this human chain with p protesters literally arm in arm across a huge territory of hong kong. Think about all the thousands of lakefront or harbor front there, also here on the central side as well where the buildings are, the downtown portion of the city and all the way up to the new territories. They climbed up lion rock, a popular climbing destination. They call it the hong kong way. Here in hong kong, they are targeting just over 20 miles. They hit that mark 40 minutes ago and more people are continuing to join. They were expected to end the movement at around 9 00 p. M. But i dont see anyone going away any time soon. They are still chanting here looking for their freedom. They are asking for the freedoms we all enjoy in the u. S. Stuart susan li in the middle of it with some extraordinary scenes ongoing in hong kong. The human chain of freedom. That may be clear here, that is not affecting our stock market at this point. It is a backdrop to our market and a backdrop to the g7 meeting thats coming up. Yes, were down, but were down because of largely chinas imposition of tariffs september 1st. They have threatened to do that. The really big financial story of the day is frankly fed chair powell, speaking in about an hour. Back to Rebecca Walser. Heres what i think, for what its worth. I think the feds going to cut rates sharply and fast. Now, my question is, if that does not happen, what do you think happens to the market . Well, obviously the market is down. We were hoping to snap our little losing streak there for a little bit and thats not going to happen with this announcement this morning. So we are looking now even more closely at powells sentiments at 10 00 a. M. From jackson hole and we want to see that i am frankly looking to see is he finally going to be more dovish instead of being so cryptic. I think hes had a lot of cryptic messages and is not very clear and we need clarity, like you said earlier. We absolutely do. We are looking for the fed to back up President Trumps trade war with china because this is a war we must win. Stuart so you think that maybe powell will be influenced a little by the imposition of tariffs by china which they have just threatened to do . Yes. Stuart you think this latest tariff imposition, you think that will affect jay powells speech today . Its a little bit the last minute so hes going to have to adjust some sentiment but i think he is just facing mounting pressure. Obviously a lot of pressure from the administration and the trade war does have an effect. Even though we do see from the minutes that got released this week disagreements and breaks in between the Federal Reserve governors themselves, this is actually something that he just cant avoid. So we are looking for him. You say you are expecting him to be very decisive and show that he will be supportive of the Trump Administration and these policies so lets see. Lets hope that happens. Stuart lets not get carried away. Fed chairs are rarely decisive. You have to read the tea leaves. Quickly, the president just tweeted this. I will show it to you. Now the fed can show their stuff. Okay. Very short, sharp, to the point. In other words ashley one last message. Stuart one last message to mr. Powell, thats right. Back to you, rebecca. The president just tweeted that. Hes applying heavy pressure to the fed. I got it. Well see if the fed bends to that pressure or acknowledges it. Heres what im expecting as well, as maybe rate cuts. Im expecting that the market will be, the computers, the algorithms will kick in as they go through his speech and look at key words. I think the market will gyrate as to how those algorithms interpret those key words. What do you say . I think you are exactly right. We just have to keep in mind this speech was prewritten before this announcement came out this morning, so its not going to have the ability to be adjusted completely for this mornings events, so lets hope that we dont have an overreaction by the market, if its not going to get the dovish were really looking for indications that hes going to be supportive of future rate cuts and helping the administration continue on this mission. Stuart rebecca, thanks very much for taking time out on a very busy day. We appreciate it. Thank you, stu. Stuart staying on the economy. Listen to what larry kudlow said on this network yesterday about more tax cuts. Roll it. So to clarify again on the tax question, theres no reason why we shouldnt be and in fact, we are, developing again tax cuts 2. 0, we are Touching Base with all the key people in the administration who would drive additional tax relief and create additional tax incentives for middle class folks, for blue collar workers, for small businesses. Additional incentives. Additional tax cuts. And you might see that during the campaign. Stuart okay. Additional tax cuts, maybe surfacing during the campaign primarily for the middle class. Jason johnson is with us, former adviser to ted cruzs president ial campaign. Why are we talking about tax cuts when the economy at this moment is doing pretty well . You bet, stuart. Thanks for having me. Very simple. Political context. As we know, the number one threat to the president s reelection is a recession, and its not so much that one may occur. Any time something happens, voters understand things are going to happen, including recession. The question is who do the voters blame. We know democrats right now are cheering for a recession. We know that with regard to the last tax cuts, democrats have claimed all of those benefits went only to the top 1 . Payroll taxes are a very different matter. This could be a very, very good strategic move for the president going into a reelection, putting nancy pelosi and the democrats in a box, forcing them to say no to payroll tax cuts which without question disproportionately impact working class blue collar voters in this country. If they say no, which they likely will, because remember, they want a recession simply so that they can beat the president , then hes able to shift the terms of the debate and place some of the blame at the feet of the democrats. Stuart you expressed yourself in a very succinct, clear fashion. We appreciate that. Thanks for coming by. We do appreciate your input. Thank you. Thank you, sir. Stuart next case. Massive fires burning right now in the amazon rain forest. Getting political. Frances president macron calling on countries around the world to respond. You can bet hes going to talk to President Trump about that when they meet in europe this weekend. Climate will come up. The far left crying foul after the Democrat National committee kills plans for a primary debate just on Climate Change. Theyre not going to do it. The left does not like that. Were on it. We are less than an hour until Jerome Powells big speech. That will hit the market, it will affect the market, it will move it, guaranteed. Where is the market right now . Down 119 points for the dow industrials, down about 50 for the nasdaq. We will report this for you. David koch has died. He was a billionaire and a big republican donor. Koch stepped down from his post at Koch Industries last year, citing health issues. David koch was 79 years old. Do, read earnings reports, looked at chart patterns. Ive even built my own historic trading model. And youre still not sure if you want to make the trade . Exactly. Sounds like a case of analysis paralysis. Is there a cure . Td ameritrades trade desk. They can help gut check your strategies and answer all your toughest questions. Sounds perfect. See, your stress level was here and i got you down to here, ive done my job. Call for a strategy gut check with td ameritrade. Content on their endless quest, to nowhere. S, run hopelessly in their cage. 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. Stuart not that far away from the big speech by Federal Reserve chair powell. That will affect the market. Whats hitting the market right now is chinas announcement that they will impose tariffs 5 to 10 on 75 billion worth of u. S. Goods come september 1st. That hurts the market. Wheres that yield curve . Is it inverted or not . Im squinting. The twoyear is 1. 596 and the tenyear is 1. 594 . Therefore there is a very slight inversion. That doesnt help the market either. Couple retailers reporting, lower profit, lower sales at foot locker. They are taking it on the chin, down 10 . Sales falling short of these expectations at the gap and they are down 5. 5 . Now this. Nationwide effort to crack down on robocalls. Dont you love it . Is it going to work . Ashley we heard this before. You nearly threw your phone away yesterday when you had a robocall in the middle of the show. They never stop. What they are going to try and do, not only is the Large Telecom companies, but also the state attorneys general in every state to try and stop these calls getting on to the network in the first place. Not an easy thing to do. They are going to try and do it, promising to work to prevent these things from happening. Theres a big fly in the ointment. It does not include internetbased telecom carriers. A lot of these calls are now being generated through the internet. So its just a giant game of whackamole. Every time you think you linked this call to this area over here, you whack it, it comes back up over here. They are working on it, trying to do it. Whether to perhaps hold the carriers accountable, start fining them, but finding the source of these robocalls is extremely difficult. Theyre working. Theyre trying. Stuart we are very glad to hear that. Lets hope they can do it this time. I wont throw my phone away. Something very, very important. He plays for the boston celtics. Hes a forward. Enis cantor, a Turkish National who has been publicly critical of Prime Minister erdogan. Hes not allowed to visit his home country. Theres even an International Arrest warrant out for him. He joins us now in new york. Welcome to the program. Whats your problem with Prime Minister erdogan . I think, you know, turkey could have been the bridge of modernism and the west. Just because of the regime is in power to abuse human rights and theres no democracy and theres no freedom, freedom of speech, in turkey. Stuart you just said this publicly. You are publicly critical of turkeys leader, therefore, you cant go home . I cannot go home. They revoked my passport. People are asking me where are you from . I dont know what to say to them. Because i dont know where im from. They dont want me to be in my country. Last time i was in my country was 2015. Stuart all those years ago. It was really hard to come here with my family now because they pressure my family in turkey. Stuart you cant go to canada . I cannot leave america because they put my name on he put my name on interpol. Thats why if i leave america, outside of america, i can be arrested. Stuart your youth clinic was shut down because of threats . Because of Turkish Embassy came to the mosque and literally bullied American Mosque and said if you guys do a basketball camp with me, you guys are not allowed in turkey. Stuart President Trump often steps in to help people like you who are frozen out of society because of your complaints about human rights. Have you appealed to the president . Or the administration . If hes watching, i would love to meet him. I think people are asking what can be done. Im meeting with a lot of senators and congressmen and i think if america puts sanctions in turkey because erdogan is taking turkey in a very difficult direction. I think if america put sanctions in turkey, i think this is going to solve the problem. Stuart have you done well in america . Im trying to. Im trying to. I play for the boston celtics. Im trying to. Stuart look, we really appreciate you being on the program today. I appreciate it. Stuart we hope that something can be done for you. I will just pray for my country. Thank you so much. Stuart thank you very much. Appreciate it. Look at futures, please. The market is affected by china announcing an increasing tariff on 75 billion worth of our goods. Jerome powell speaks at the top of the coming hour. Thats whats going on in finance. Back in a moment. Theres a company thats talked to even more real people than me jd power. 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. 2,000 fence posts. 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. the day well finally from the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. And the best lte everywhere else. Xfinity mobile is a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Click, call or visit a store today. Stuart the share price of overstock. Com, look at it, up 8 yesterday after the chief executive Patrick Byrne resigned. He stepped down after disclosing a romance with an accused russian agent, maria butina. Byrne said former fbi agent peter strzok directed him to continue the relationship and share information with the department of justice. Byrne said he left because he does not want to be a distraction to the company. Premarket this morning, down 2 . Back to that news we told you about at the top of the hour. David koch has passed away at the age of 79. Jackie deangelis with us now. You have some statements from his family . Jackie good morning. Thats right, stuart. He was 79, advanced prostate cancer. He had a grim diagnosis. His brother, charles, issued a statement. I will read you part of that, quote, while this is a very sad day for us all, i want you to know david was proud of the extraordinary work you have all done to make Koch Industries the Successful Company that it is today. He will be greatly missed but never forgotten. He is leaving behind his wife, julia, three children. Julia also issued a statement. While we mourn the loss of our hero, we remember his iconic laughter, insatiable curiosity and gentle heart, his story of childhood adventures enlivened our family dinners, his sensitive heart had him shed a tear at the beauty of his daughters ballet and beam with pride when his son beat him at chess. We will miss the fifth link in our family. Stuart he was extremely wealthy. Jackie very wealthy man. Stuart i always thought libertarian causes. Jackie he had flphilanthropy causes but was a political activist as well. His views seem to shift as the years went on. He definitely made sure that he shared his wealth in that regard. Stuart thank you, appreciate it. Thank you. Back to the markets. Heres how we are going to open in about 4 50. Down about 122 points. Remember, this is fed day. The market right now is reacting not to the fed but to china. It may be imposing additional tariffs on American Products. Thats a negative. Dow is down 100. Back in a moment. 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