Here. Good to see you. Payne Capital Management president , ryan payne and fox business deirdre bolton. Good morning. Happy monday. Here we are ready to go. Dagen ive got cooler head, what i wrote down on my folder as i watched comments about a Angela Merkel and President Trump about the trade situation. Last week we saw the dow sell off, more than 600 points as more and more investor were worried about the u. S. And china not to be able to be on the same page in some sort of way, create a framework. Now with these comments, seems like indicating a higher open, thats all that investors care about. Business owners are thinking how will i adjust to this, whats coming. Any bright spot, green on the screens, there we go. Dagen exactly. Also this morning, American Enterprise institute u. S. Research strategy in asia, he heads it, zach cooper on china trade. Roger williams is here to talk tariffs and trade. Former u. S. Secretary of commerce, former kellogg ceo, Carlos Gutierrez on the g7 summit and all things trade. And u. S. Citizenship and Immigration Services acting director, ken cucinneli. Breaking news this morning, President Trump says china wants to come back to the negotiating table, sparking a rally in the futures. Heres what President Trump just said. We think things are happening with china, you probably read the breaking news a little while ago that they want to make a deal. They just came out and they want calm and thats a great thing, frankly. China called last night, the top trade people, and said lets get back to the table. So well be getting back to the table and i think they want to do something. Theyve been hurt very badly. They understand this is the right thing to do. I have Great Respect for them. I have Great Respect. This is a very positive development for the world. Well see what happens. But i think were going to make a deal. Dagen this coming after the market selloff on President Trump announcing plans for heightened tariffs on chinese goods. Lets break all this down. The heightened tariffs were announced after the market closed on friday. And so the futures were way down and just in the sitdown with Angela Merkel, President Trump said some things like were in a much better position now in terms of the trade negotiations than at any time during the negotiations, he used words like stronger, there could be a possible delay in tariffs. Theres much to make of what this is and hes also responding to what the chinese the man overseeing the chinese trade negotiations, there was a comment overnight about basically cooler heads prevailing. Deirdre. I think for market sentiment, this is what matters, right. So the cooler heads prevail, that is the right thing you wrote on your card this morning. Dagen my folder. Thats really going to be the theme. This what is investors are focused on. Of course, we saw this back and forth, this titfortat, the president tweeting those four tweets on friday which such pressure on the markets, one of which is if you have a business in china, you need to move it out. That just really sunk because even though we know these businesses, american businesses with a presence in asia, that have factories in china, it is still not the flip of a switch. 18 months is the soonest you can move something out, five years is more normal. Even if companies have been preparing for that, it just doesnt happen overnight. So if we can have a less contentious tone as we saw this weekend between the u. S. And china, all systems go. No, no, i agree. If anything, its just about certainty right now. And the economys doing so, so well and seems like one tweet can derail the markets, depending on the day. Were at a point where we should be numb on tweets. Dagen at one point the president tweeted out who is doing more harm to the u. S. Economy, jay powell, fed chair, or xijinping. That set up a kind of tone which is why we saw fridays selloff as we did. This is the trump market. Its volatile. It hadnt been that volatile this year and then friday, that drop of over 400 points, i actually have friends who are Trading Options much more often now because of this volatility. They call it the trump trade. So the last few weeks i have friends who have really been getting into this. But thats them. Theyre making some money off this. Ton whole, people want certainty. As you said, the market wants certainty and can we get it . I mean, chinese say, hey, we want to have calmer heads prevail. Thats what theyre saying now. Who knows what theyre going to be saying and what trumps going to be saying later today. Theyre trying to ride this out, just in case the president has said the chinese would love to have somebody else sitting in the white house, not President Trump. President xijinping, we know hes there for life. We have elections every four years. So i do think there is a long game strategy that the chinese have been trying to play thinking maybe 2020 there will be an administration thats a little bit easier or different to negotiate around. But ryan, you mentioned it as well. I think for investors theres confusion where the u. S. Economy looks great f you look at our unemployment, if you look at wage growth. Theres so many things to recommend the u. S. Economy but we have seen weakening indications from asia and from europe. But then if were fighting with china that dagen more than anything ive been watching manufacturing and the attitude of manufacturers in the last week. We got a reading, the ihs market index on Manufacturing Activity in the u. S. , japan, germany and eurozone, dropping. The first contraction in u. S. Manufacturing since 2009. So that was so despite the strength in the consumer and all these retailers, you still have that as kind of your big worry spot. The only thing i would say about that is a very small number that it contracted by. Were foremost, we are a Service Based economy and thats really key here. At the end of the day its really what service is doing. I think the numbers about the manufacturing, probably amplified more than they should. At the end of the day, service is what really matters. Thats whats been really strong throughout, no matter whats going on with manufacturing or trade. Everybody talks about manufacturing. Donald trump talks about manufacturing all the time. He wants to bring more of it back. But of course, that would our products are going to cost more if theyre all going to be made here rather than in china. So people are sort of forgetting about how the tariffs affect different industries, different people. Obviously, consumers are the ones hardest hit. Dagen theres some method to the retaliation from china, obviously attacking areas that are trump strongholds. Thats a wonderful point. Dagen like the retaliatory tariff increases that china announced on friday go after imports of luxury vehicles. Well, those are jobs in south carolina. Its bmw, its jobs in the south. Its mercedes buenz. Also ohio and michigan. We know President Trump barely eeked out a win in michigan. Michigan is a key state. Its 25 on cars, 5 on all auto parts, extremely strategic. And the soybeans really hurts iowa, such an important state in our political context. We have between 17 and 19 billion worth of soybean exports on average during the past five years. So targeting that particular crop was extremely strategic as well. I mean, china knows what theyre doing, so do we. Its very well matched. Dagen the president announced a preliminary deal, a trade agreement with japan, saying the two countries have okayed a deal worth billions of dollars. Robert lighthizer says the deal focuses on the agriculture industry and digital trade. I think it goes to show you that most countries are coming to the table here. We saw that with canada and mexico. I think it shows that there are deals happening even though we dont have one with china yet. Thats probably a good indicator that at some point we will get something with china as well. It comes down to with china specifically, china needs it economically speaking. Theyre very dependent on the us. Trump needs it politically speaking. It paves the way toward at some point i think well see a deal. Although our relationship with japan is very different than our relationship with china. Its much friendlier. Theres more at stake in china in terms of intellectual property theft. Will they make a deal without that . I dont know how the chinese economy really survives without it, though. Its 4 of chinas gdp china needs us a a lot. We dont talk about that enough in the news. I think thats one of the reasons whats going on with beijing, with hong kong, theres a lot of pressure in china. Its not just on the u. S. , who has a he very strong consumer. Thats probably why theyre willing to come to the table. Dagen but there is clear and present danger, though, if china weakens dramatically and the world weakens, so goes the u. S. Potentially. Certainly, you had the twoyear yield closing above the 10 year yield for the first time the bond market is sending out distressing signals. We had five or six days just in august alone and were not finished where the nasdaq fell more than 1 . And it was slightly less for the dow. I think four and five for the s p 500. Theres been so much volatility this month. Worries about the bond market, the yield curve, the inverted yield curve and worries about trade. Dagen the headline this morning is messages of calm from leo haa and also President Trump on getting a deal done with china, with the u. S. , of coming bag to the table back to the table. Were in a much better position now, better than any time during the negotiations, said President Trump when he was sitting alongside Angela Merkel. We reversed a deficit in the markets, we were down hundreds of points in the stock futures on the dow, now weve got 179 point gain on the dow futures. Those are your headlines. And yes, these markets move on just a few words out of our president. But thats why youve got to keep it tuned in because the president is sitting down next in a bilateral meeting with indias Prime Minister. We will bring you in comments if they come because you never know. You never know what the president might say. Coming up, hong kong protests turn violent, dozens arrested as demonstrators clash with police over the weekend. The very latest. And a judge decides whether Johnson Johnson is responsible for the oklahoma opioid crisis. That is next. Stay with us. Can i get some help. Watch his head. Im so happy. 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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. Dagen brazil calling on the military to fight devastating wildfires in the amazon rain forest. Cheryl casone has the details. Cheryl. Cheryl good morning, dagen. Billan war planes are dumping thousands of gallons of water on the amazon rain forest, trying to put you ou out the raging fie of several military operation thats have been authorized after facing global criticism. He promised to send 44,000 troops. The Associated Press says only a few hundred have been deployed there and its unclear what the troops are doing to fight those flames. A landmark ruling expected today in norman, oklahoma. A judge will decide whether Johnson Johnson will be held responsible for the states Opioid Epidemic that Officials Say led to more than 6,000 deaths over anotherly 20 years. A rulings against j j could mean big payouts in similar cases across the country. It could really shake up the industry. Shares of j j are higher in the premarket. Now to tesla. They are reacting to the u. S. China tariff situation. The company says its going to raise prices in china, this coming friday, and thats earlier than planned. They may do so again in december if more tariffs go into effect. Tesla currently importing all the cars it sells in china and had to adjust prices several times over the past year due to the tariff war that were seeing. Shares of tesla are higher in the premarket but, again, with everything related to china and the United States, this could change. One tweet could change everything or an agreement with the chinese. We shall see. Dagen absolutely, we shall see. Thank you so much, cheryl. We were talking about the automakers. Again, there is a direct impact on jobs potentially here in the United States of the back and forth of the additional chinese tariffs. The idea is to hurt the american companies. So just to clarify in the sense of if youre in china and you want to buy a car, a u. S. Made car, youre going to pay more than 25 . Its a 25 tax on that car if you are a manufacturing in china and youre buying u. S. Auto parts. Youre going to pay at least 5 more for each of those parts. The idea is really to hurt our manufacturers, to hurt people in the Auto Industry here so that we feel it and President Trump feels it and very much in the midwest as we mentioned. He eeked out that gain in michigan. He needs to win michigan for 2020. Its interesting. With the farmers as trump always says, hes helping them out. He had that aid package. Would he do the same thing for auto workers and how would we afford it . I dont see that happening. But its a good question. He definitely wants to make that political pain go away. Dagen there was an idea floated that the money coming into the Treasury Department from the tariffs that weve slapped on imports from china would somehow be redirected to the middle class and to potentially those harmed by the tariffs. But i we shall see. The farmers, some of the subsidies have gone there that have come from the tariffs. He actually is doing that. Dagen with the farmers but who else gets a little help, shall we say. Coming up, talking trade, more of it. Futures are showing a rally at the open. Its been a complete reversal in the futures. Again, the markets were closed when President Trump announced these tariff increases on chinese imports, above what we were already charging or planning to charge or slap onto imports into the u. S. We were going to get a negative reaction until we got positive comments from the vice premier in china and then President Trump about cooler heads, about negotiations, about phone calls. President trump looking to get these trade talks back on track with china. We are watching everything. Were waiting on his bilateral meeting with indian Prime Minister, narendra modi. Well bring it to you live. Plus, breaking bad is back, coming to netflix, six years after the hit series ended. We take a look later this hour. What it all comes down to. Is that i havent got it all figured out just yet. Because ive got one hand in my pocket. And the other one is giving a peace sign. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Dagen welcome back. Futures reversing losses after President Trump says china wants to restart trade talks. This follows fridays Big Stock Market declines. President trump saying china wants a deal of after chinas vice premier lieu lie liahe calr negligencnegotiations. You have to be careful and step back from market like what we saw on friday. You had the chart up early, up 5 since the initial tariffs were announced which given the growth we had last year and how good the economy is, we would like to see it a little more. We were told this would be the end of the world and any sort of trade war or trade confrontation by the Trump Administration would be the end of it and we would spiral into a global recession. Kind of like we were told if he was elected. All of these things, it would be better to have peaceful resolution but the problems that were foretold by the experts are not coming into fruition. Dagen in terms of data, were going to get durable goods orders out later this morning, busy, busy week, personal income and spending later in the week, what are you watching that other people might not be paying attention to . In terms of indicators about maybe the health of the u. S. Economy and the consumer. So a great one, which has been a fantastic leading indicator, is the chicago fed financial conditions index. And none of that is showing signs of contraction. Every other recession weve had that. Last week the conference boards index