AND TALK ABOUT THIS.
LIZ: STOCKS BOUNCING BACK.
THE TRUMP ADMINISTRATION LABELED
IT A CURRENCY MANIPULATOR.
LARRY KUDLOW HE HE SEES NO
RECESSION DESPITE MORGAN STANLEY
WARNING THERE COULD BE A
RECESSION AFTER THE ELECTION.
>> THIS IS A TRANSFORMATIVE
PRESIDENT WHO IS GOING MANY
PLACES WHERE FORMER PRESIDENTS
IN BOTH PARTIES HAVE FEARED TO
TREAD.
HE'S DETERMINED.
HE'S REBUILDING THE AMERICAN
ECONOMY WHICH IS VERY STRONG.
AND I THINK PART OF THAT HAS TO
BE TRADE.
AND I AM CERTAIN HE'S GOING TO
STAY ON TRACK.
HE SAID HIMSELF WE WOULD LIKE TO
NEGOTIATE.
WE ARE PLANNING FOR THE CHINESE
TO COME HERE NEXT MONTH.
IF THERE IS A GOOD -- HE MAY
RECONSIDER SOME THINGS.
BUT HE'S ALSO SAID THERE IS NO
GOOD DEAL, NO PROGRESS.
SO HE'LL RECONSIDER SOME THINGS
ON THE OTHER SIDE.
>> JOINING ME NOW.
HERITAGE FOUNDATION CHIEF
ECONOMIST.
STEVEN MOORE, GREAT TO SEE YOU,
STEVE.
CHINA IS NOT BUDGING TO DESPITE
TARIFFS.
WHAT IS THE DEAL THE PRESIDENT
WOULD ACCEPT?
THIS HAS TO COME TO AN END
SOMEHOW.
>> THE PROBLEM THE LAST WEEK IS
THE HARDLINERS HAVE TAKEN A HARD
TIME IN BEIJING AND THEY ARE
RETRACTING SOME OF THE DEAL PUT
ON THE TABLE FROM A MONTH OR TWO
AGO.
THAT IS EXTREMELY FRUSTRATED
THIS PRESIDENT AS HAS THE TRADE
NEGOTIATORS.
IT'S HARD TO DEAL WITH A COUNTRY
THAT ONE DAY SAYS ONE THING AND
THE NEXT DAY THEY DO THE
OPPOSITE.
THE TRADE WAR IS HURTING US, BUT
IT'S HURTING CHINA EVEN MORE.
CHINA IS GETTING CRUSHED BY THE
TRADE WAR.
THE POLITICIANS DON'T ALWAYS DO
WHAT'S BEST FOR THEIR OWN
PEOPLE.
IT'S NOT GOING TO BE A GLIDE
PATH TO A DEAL.
IT'S GOING TO BE THIS CONFUSION
AND RAIN CORIOUS RHETORIC UNTIL
DAMAGE, YOU WAGE AND SAY WE GOT
A DEAL.
I THINK THAT DEAL WON'T BE A
GREAT DEAL.
THEY WILL HAVE TO MAKE SOME
CONCESSIONS CLEARLY ON THE
INTELLECTUAL PROPERTY ISSUE
WHICH I TALKED TO THE PRESIDENT
ABOUT.
HE TALKED ABOUT THE THEFT OF OUR
TECHNOLOGY.
BUT ALSO THEY ARE GOING TO HAVE
TO BAY MORE OF OUR BASE.
>> NO REASONABLE PERSON WOULD
THINK IT'S OKAY THAT ANY COMPANY
WOULD HAVE TO SHOW ITS GOOD TO A
GOVERNMENT IN ORDER TO OPERATE
THERE.
IT'S WRONG.
BUT AS YOU POINT OUT.
CONSUMERS AND BUSINESSES SAY END
THIS NOW.
GDP GROWTH IS DOWN TO 2%.
THE PRESIDENT DOES NOT WANT TO
UNDERCUT HIS ECONOMIC BOOST FROM
TAX AND DEREGULATION WITH THIS
ONGOING FIGHT WITH CHINA.
WHAT WOULD THE DEAL LOOK LIKE.
>> NOT ONLY IS IT WRONG WITH
CHINA IS DOING, IT'S ILLEGAL.
>> WHAT DEAL WOULD THE PRESIDENT
ACCEPT?
>> I CAN'T SPEAK FOR THE
PRESIDENT ON THIS.
BUT LOOKING FORWARD, I THINK
WHAT YOU WILL SEE IS A DEAL
WHERE CHINA DOES AGREE TO BUY
MORE OF OUR MANUFACTURED GOODS
AND AGRICULTURAL PRODUCTS WHICH
ARE THE BEST IN THE WORLD AND
CHEAPEST IN THE WORLD.
THEN YOU GET SOME AGREEMENT ON
INTELLECTUAL PROPERTY.
I TALKED TO OUR NEGOTIATORS.
THE CHINESE DON'T ADMIT THEY ARE
STEALING INTELLECTUAL PROPERTY.
LIZ: THAT'S THE THING, THE
PSYCHOLOGICAL MIND SET THEY
HAVE.
EVERYTHING THEY DO THEY THINK IS
OKAY BECAUSE IT SERVED A GREATER
GOOD.
THE DOW DID LOSE TWO MONTHS
WORTH OF GAIN.
CURRENCY WARS CAN LEAD TO
UNEXPECTED MARKET CARNAGE.
CHUCK SCHUMER BEGGED TRUMP IN
2017, PLEASE LIST CHINA AS A
CURRENCY MANIPULATOR.
>> NO COUNTRY IN THE HISTORY OF
THE WORLD HAS EVER GOTTEN RICH
BY DEPRECIATING THEIR CURRENCY.
THAT'S WHAT CHINA HAS BEEN DOING
AND NOW THEY WANT TO DO IT
AGAIN.
LOOK, I THINK THE DEAL WILL BE,
THEY WILL HAVE TO BUY MORE
PRODUCT AND LOWER THEIR TRADE
DEFICIT WE HAVE WITH THEM.
THAT'S ONLY GOING TO BE THE
FIRST STEP IN A MULT PELT.
THIS CONFLICT WITH CHINA IS
GOING TO GO ON FOR YEARS AND
YEARS .NOT DECADE.
WHAT I WOULD ADVISE TRUMP, GET
THE BEST DEAL YOU CAN FROM
BEIJING.
ONCE YOU GET A DEAL --
LIZ: THE PRESIDENT COULD
POSSIBLY HELP THE U.S.
MANUFACTURERS SET UP THEIR
GLOBAL SPRY CHAINS ELSEWHERE --
SUPPLY CHAINS ELSEWHERE IN ASIA.
>> THEY ALREADY ARE.
I WILL SAY THIS, I THINK THERE
WILL BE A DEAL DONE BEFORE THE
END OF THE YEAR.
IT WON'T BE A GREAT DEAL, BUT IT
WILL MOVE THE BALL IN THE RIGHT
DIRECTION.
YOU GET THAT DEAL DONE AND THE
STOCK MARKET IS GOING RIGHT BACK
UP.
THE MARKET HAS OVERREACTED TO