Three categories. Despite tariffs and trade uncertainty business is still optimistic about the outlook. Not a whole lot of evidence of inflation in this report, which is interesting in light what we see of feds inflation page. In new york, manufacturers say input prices at a moderate pace. Selling prices flattened out. Reports of impact of pricing as it relates to tariffs were a bit mixed. Respondents feel like it will take a couple month to shake out to see the evidence there. Now i should note that this report does come before the president decided to enact a new tranche of tariffs on chinese imports that mostly target consumers. So take that as you may but bottom line here manufacturers continue to take it in the chin due to trade uncertainty but the Services Sector right now appears to remain intact. Back to you. Deirdre jennifer, thanks so much. Jennifer schoenberger there. President trump speaking moments ago on the trade tensions with china. The president says china wants to make a deal and that our economic advantage will translate towards supporting our farmers. Edward lawrence has the latest. Edward, what is the president saying about the link between tariffs which we know corporations and citizens pay, and farmers . Reporter the president saying he is going to make the farmers whole basically. He put out 28 million, billion dollars over the past two years to help farmers become whole. The president very clear that chinas economic slowdown will be what draws them to the table to make a trade deal. The president also very clear that he approved the visit to beijing by two u. S. Senators. That trip is now concluded. Now senator steve daines from montana and senator david perdue from georgia made the trip to beijing. They will brief the president when they get back. They met with chinas top negotiator liu he. President wants to make sure that the china hears that us is speaking to with one voice when it comes to a trade deal. They are having a supply chain that is absolutely fractured an broken which is very bad for them. They have lost 3 million jobs. The jobs are moving to vietnam and other places including the United States by the way. Some people are making the product here. Reporter the president saying that senators already told him that china would like to make a deal. The president though saying he is not going to make any deal because of chinas economy. I knew about the meeting. I approved of the meeting. All they did is say we really have bipartisan support. If you look at it and the support is very serious so were not playing games and that was the message that was given by senator perdue and senator daines and it was given very strongly. Reporter the trade talks also playing a big deal in whats going on in hong kong right now. Both china and the United States dont want to upset the lines of communication that have been established. Protesters seem to have won the first round in hong kong with china of the administrator for hong kong says she is removing the amendment that extradites suspects to the maine mainland. This is weeks before the celebration of the 70th anniversary of the for china. The u. S. And china have a lot of balls in the air now, deirdre. Deirdre they certainly do. Stocks moving higher on withdrawal of that controversial bill in hong kong. Some stratgifts say the bill is positive for Investor Sentiment since they feared the protest could hinder any progress in u. S. China trade talks. Gary kaltbaum is here, the president of kaltbaum capital management, a Fox News Contributor as well. David nicholas is here as well. The president of nicholas wealth management. On a scale of one to 10, how important is it for the u. S. Investor, this gesture from hong kongs leadership to its people . I will give it a five but it moves us closer to getting some sort of a deal i will move it up to 7 or 8 but i think this is just the start. For this, this is freight for the people of hong kong because this bad boy has been going the wrong way. Im still leery of china. I think theyre determined to take things over 28 years before they were supposed to. So keeping fingers crossed. For me though, the big 10 out of 10, our Central Banks going to lower rates . Im at a halfpoint this month. I suspect they will go down to 1 fed funds as were down to 1. 46 on the 10year. Amazingly the 30 year is at 1. 9 and change. I think that helps markets. Im not so sure it helps the economy because rates are already very low. Deirdre gary i want to come back to the fed and where you see rates going in a minute. I want to bring david in on a somewhat related theme that the u. S. And china dont have a meeting state to discuss trade. China filed a complaint against the u. S. With the wto. How is the u. S. China trade war affecting your investing . There are two sides to this coin, right . It is good for the hong kong people, globally this gets resolved but also i dont think china could come to a trade deal with the issue going on in hong kong. I think this looks bad on mainland china. I actually think they couldnt make a deal with this going on. Now that this could behind them. This may embolden china, give them some cover to come from a position of strength. I think there is another side to this we have to look at as well. This may prolong, now that this is behind us, prolong some of the trade talks we were hoping to get some resolution. For investors i think headline risk is key. This may embolden china. If that does, it could be bad for markets. Deirdre gary, getting back to your point where you see rates, at historic lows, former fed president bill dudley writing a oped style piece, explaining a another piece he had written before but talking about not enabling President Trump. What is your take on the first piece, if you like and the if you like the explanation piece that followed the first piece . He went after the president because the president is going after the fed. When he got some serious pushback for getting political, he is trying to just, bring it back a little bit. Look, there is a fight going on right now. The president says that the fed is independent. Then he rips them to shreds. The fed who is behind the curve, big time, the fed should be a halfpoint lower, a week ago, not in a couple weeks from now. I get what the president is doing, but i dont want him to do it, because i think you can cause chaos when the president says one thing and maybe the fed is thinking another thing but leave no doubt the most important part of the equation, i have to repeat this, easy money is here to stay, easier money to come. Not just here. You have maniacs in europe have negative rates. They will go more negative. They have printed trillions. They will print more trillions. They are not alone. There will be other countries doing the same. Deirdre gary, let me ask you for the u. S. , weve been following europe, to your point it is so exaggerated at this point you actually loan, in germans case you loan the German Government money, you pay for that right to loan. Amazing. Deirdre it is pretty crazy idea but let me ask you this but what do you say when people argue with you that the fed shouldnt cut . That the u. S. Economy is in great stead, that some powder should be kept dry . I just think the market is a lot smarter than everything. When you have the 10year down at 1. 46 and fed funds at 2 , youre just behind the curve, simple as that. Fed funds should always be below the 10year. It has been throughout history. That is why you will see a half point cut here real soon. I repeat, with rates so low, i dont think a fed cut helps the economy t could help markets though. The markets and the wealth effect have been a big help to the economy for 10 years. I cant argue that point. Deirdre david, are you in agreement on 50 basis points lower . I think well see 25 basis points. Again deirdre for september . I dont think, yeah for september 25 basis points. I dont think the economy need as rate cut but i do think we need a rate cut when it comes to currency. I think global trade, with lowering Interest Rates i think that helpses us, when nations have floating rate currencies we somewhat have to play in that field. Yeah i think it helps us globally with trade but i dont think it will be a big impact to the u. S. Economy. Deirdre i thank you both, gary, david. Sure to join gary he is on bulls bears this evening 5 00 p. M. Eastern time right here on fox business. After leaving total devastation in parts of the bahamas Hurricane Dorian is sideswiping floridas coast. We will update you where it could make landfall in the u. S. But first democrats are slamming the pentagon decision to divert billions of dollars to pay for the border wall. Senator schumer calling it a slap in the face to our military. President Trump Holding firm that we need help at the border. This is the best way to do it. Well bring you both sides of the argument when we come back. 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 get something done. My body is truly powerful. I have the power to lower my blood sugar and a1c. Because i can still make my own insulin. And trulicity activates my body to release it like its supposed to. Trulicity is for people with type 2 diabetes. Its not insulin. I take it once a week. It starts acting in my body from the first dose. Trulicity isnt for people with type 1 diabetes or diabetic ketoacidosis. Dont take trulicity if youre allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2. Stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, or severe stomach pain. Serious side effects may include pancreatitis. Taking trulicity with a sulfonylurea or insulin increases low blood sugar risk. 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. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. The wall is being built. It is going up rapidly. I guess most of you have been able to see it. Were building very large sections of wall. When you have thousands of people trying to rush our country i think that is National Security. When you have drugs pouring into our country i view that as National Security. Deirdre President Trump defending the pentagons move to divert more than 3 billion to pay for the border wall. Former state Department Senior advisor Christian Whiton with me now. Christian, great to have you on this topic and a few others in advance, thank you. So is building a physical wall the best use of that money to support National Security . I have seen very powerful arguments saying money should have gone for more staff at the border . No, i think the wall is really critical at this point. Staffs are important, but when you look at sheer numbers were dealing with, over 75,000 illegal entrant per month, not per year, per months, that is the ones we catch or turn themselves in, clearly a physical border, this sort of makes common sense would decrease the number or increase the ability of staff to do things this is something that is directly related to National Security. I think before we were spending money in iraq, syria, afghanistan which are places we spend billions every year. We ought to focus defending our own borders. Deirdre you mentioned the middle east. I want to play a clip for you from our air previously and then discuss it. Here we go. Inning that keeps iran from getting a Nuclear Weapon is in our best interests. The deal was working. It was not a deal i was especially fond of when it was signed. I thought the sundown provisions were too soon. Was it a mistake for president to rip it up. Im not willing to say that. Deirdre james mattis with that interview with neil. I think moderate mattis, was wrong on this one. The deal was not working. Basically it was bribing iran, giving in to nuclear blackmail so they would delay building a nuclear bomb until after the obama administration. They still had all the centrifuges to enrich uranium. They have Nuclear Plants that produce nuclear waste, including plutonium 239 that can be used in a plutonium on after reprocessing. All the mechanisms were left in place. We have ended the appeasement, put iran on notice, you cant do business with us until you abandon the program. Deirdre speaking of drawing some lines that cannot be negotiated through, part of the conversation that neil had with general mattis was about russia and neil really pressing the general to say, do you applaud or do you support or give favor in any respect to putin and the generals answer was no. That he thinks that putin does not have one kind thought towards the u. S. I am sure you are in agreement of that but what does that make when the president , for example, says, okay, maybe russia should be allowed back in the g7 to make a g8 or any other comments that imply kind of a reproach meant . This all goes into realistic view of russia, yes, they see the u. S. As an important, as a crucial adversary. Incidentally they may see china that light too in some respects. In or the respects they may want to partner with china. Putin deserve as nod grudgingly. He played a hand very well against a feckless west. He proved nato is increasingly obsolete. We have to be on guard with russia. We have to work with poland in the balticss which are most at risk. Russia inevitably always interferes with our politics, make sure theyre ineffective doing so. We need diplomacy with russia. If we dont, well push them into the arms of the chinese. With very to have priorities. China needs to be a much higher priority than russia because china is a greater risk. Okay. That is a interesting point of view. Were always glad to talk to you, christian. Thank you so much. Thank you. Deirdre nra slamming walmart for what it says is caving to quote, antigun elites. The Worlds Largest retailer announcing it is ending the sales of handgun ammunition. Well discuss the role of private companies versus politicians in addressing societys issues. Keep it right here. 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. I need all the breaks as athat i can get. Or, at liberty butchemel. Cut. Liberty mu. Line . Cut. Liberty mutual customizes your Car Insurance so you only pay for what you need. Cut. Liberty m. Am i allowed to riff . What if i come out of the water . Liberty biberty. Cut. Well dub it. Liberty mutual customizes your Car Insurance so you only pay for what you need. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Deirdre kroger joining walmart changing it is instore gun policy asking customers to refrain openly carrying in stores even though that is legal. Walmart led the way yesterday. Also banning assault rifleses and handgun ammo sales in the wake of two Mass Shootings in texas. The nra equating decisions of these two companies caving in to socalled, im quoting them here, antigun elites. Fox news contributor Deneen Borelli is here the thanks so much for coming in. Thank you. Deirdre are ceos right in making these kinds of decisions, lets say pr decisions for their companies where legislators, politicians, have not . I think what the ceos are doing are caving to to the political pressure from outside influences. A lot of situations ceos are liberal. They are big liberal advocates that anything democrat politicians are supporting. Right now it is more gun control. What they are doing in my view, theyre alienating their customers, alienating potential customers. Let the market decide, let the market demand what Consumers Want to buy or not. Deirdre to be honest im not sure either of those ceos are liberal versus conservative. I know dicks sporting made that decision, actually said to the point, we have seen an effect on our bottom line, but one of the guns the parkland shooter used was purchased legally in dicks. He was very public even though that particular gun was not used at the high school he felt personally responsible. He said he couldnt sleep at night unless he made changes but youre saying this is more Pressure Versus something where youre just saying that the ceos are dragging their companies to match their personal absolutely. Weve seen it with this. Weve seen it with the restrooms with target. We see it with a number of issues that are societal coming up on a regular basis. When youre looking at lawabiding citizens, they are not the problem. The problem is criminalling gets their hands on gun and people mentally unstable getting their hands on guns. What the store is doing, theyre alienating their consumers. They are making it hard for people who are lawabiding citizens to carry. I own a firearm. Me and my husband each own guns. Were responsible. Were trained. If you want to carry you have that right. If you dont want to own a firearm, you have a choice but theyre infringing on our Second Amendment rights. Deirdre the conversation takes another tone when you see these Mass Shootings. That is one thing. I grew up in pennsylvania. I have tons of friends who hunt, who fish. That is part of the culture. I honestly dont think anyone has a problem for guns with self procession or guns for sport. The conversation turned