>> TAKE CARE, CATCH CONNELL
ALL DAY, ACTUALLY FOR THE NEXT
FEW DAYS IN IOWA.
RHETORIC OVER TRUMP TARIFFS
HEADING UP OVER THE WEEKEND
WITH CANADA PRIME MINISTER
PRESIDENT MOVE AN
INTELLECTUALITY LARRY KUDLOW
SAYING WE MUST PUT AMERICA
FIRST.
>> I THINK HE ITSELF
OVERREACTING I DON'T WANT TO
GET IN THE MIDDLE OF THAT AS A
FRIEND AND ALLY UNITED STATES
NOBODY DENIES THAT WE HAVE TO
PROTECT OURSELVES.
>>.
DAGEN: LARRY KUDLOW SAID THIS
IS LIKE A FAMILY SQUABBLE A
FEUD MORE ABOUT TIFF OVER
TARIFFS, JACK McINTYRE, TO BE
CLEAR FRIDAY TODAY, THERE IS
NO WORRY SHOWING UP IN THE
STOCK MARKET HERE AT HOME.
>> THAT IS CORRECT, BECAUSE WE
TO ME U.S. ECONOMY IS GOING
WELL STRONG EMPLOYMENT REPORT,
LIKE THE RISK FROM STRAYED
STANDPOINT IS IT GOING TO
ESCALATE I THINK MARKETS
KEYING OFF KUDLOW AND MNUCHIN
VERSUS NAVARRO LIGHTHIZER SO
LONG AS THE CASE I THINK THE
EQUITY MARKET WILL DO OKAY.
>> JACK ONE OF THE INTERESTING
THINGS KEVIN KELLEY HERE ONE
INTERESTING THING A THEME FOR
THE MARKETS THE RISING RATE
ENVIRONMENT WE HAVE TOUCHED
3.1510-YEAR TREASURY INTRA
3.1510-YEAR TREASURY INTR
3.1510-YEAR TREASURY I DR
3.1510-YEAR TREASURY I DID
3.1510-YEAR TREASURY I DIDN'
3.1510-YEAR TREASURY I DIDN'T
WANT INTRADAY BASE WHAT IS
YOUR WORRIES FOR FIXED INCOME
ARE THEY GOING TO BE
EXACERBATED GIVEN TRADE TALKS
WHAT IS HAPPENING WITH
BALLOONING DEFICIT WITH -- AS
WELL AS BUNCH OF OTHER --
CENTRAL THINGS LIKE ARE GOING
TO BE HAPPENING THE NEXT
DECADE WHERE WE HAVE TO ISSUE
TONS OF DEBT?
>> YEAH, THAT IS A GREAT
POINT.
YOU KNOW THE BACK END OF THAT,
ABOUT THE -- BUDGET DEFICIT
INCREASING TRADE DEFICIT, THEY
ULTIMATE THAT SHOULD BE WEAKER
OR DRIVE U.S. DOLLAR LOWER, TO
ME IS PART OF THE SOLUTION
WOULD HELP MAY BE ALLEVIATE
TRADE SENSATION IN THERE.
>> I THINK SOME NOT WORRIED
FROM FIXED INCOME INVESTOR
STANDPOINT I DON'T SEE A LOT
OF INFLATION PRESSURES
BUILDING AS FED IS GOING TO GO
SLOW I THINK KIND OF GIVEN AS
YOU ROAD MAP SO YIELDS ARE
GOING TO DRIFT HIGHER, BUT NOT
TO THE POINT WHERE IT IS GOING
TO DERAIL THE U.S. ECONOMY.
>> THERE IS A FRONT-PAGE STORY
IN THE "THE WALL STREET
JOURNAL," TODAY, TALKING ABOUT
GLOBAL ECONOMIC THE GROWTH
STORY GLOBALLY, THE FADING.
DIMMING MARKETS OPTIMISM THE
HEADLINE GLOBAL MANUFACTURING
INDEX THERE NINE-MONTH LOW
BALTIC DRY INDEX, MEASURE OF
SHIPPING COSTS DOWN 22% SINCE
PEAK LAST MONTH, COPPER
PRICES, ALSO DOWN, CAN THE
U.S. KEEP GROWING AT A CLIP
THAT ATLANTA FED THINKS THIS
QUARTER IS GOING TO BE 4.8%
GROWTH WHICH IS EXTRAORDINARY
CAN WE KEEP GROWING AT THAT
UNDERSTOOD KIND OF PAYS IF THE
REST OF THE WORLD IS SHOWING.
>> I AM NOT SURE WE ARE GOING
TO PRINT 4% IN THE U.S. BUT SO
I THINK -- IF YOU LOOK AT
CHINA, AND U.S. COMBINE THOSE
THOSE ARE TWO BIG OBVIOUSLY
ECONOMIES DATA IS STILL COMING
IN BETTER THAN EXPECTED THAT
IS WHY I TAKE THE OTHER SIDE
OF THAT ARTICLE BECAUSE I
THINK GLOBAL ECONOMY STILL ON
SOLID FOOTING YET Q1 WAS SORT
OF A LITTLE BIT SLOWER I
SUSPECT WE MANY SEE A LITTLE
UPTICK IN GROWTH I DON'T SEE
GLOBAL INVENTORY OVERHANGING
THE KEY IS CORPORATE SECTOR
CAPEX I SUSPECT WILL WE WILL
SEE A KAEX CYCLE TYING IN
TRADE SENSATIONS CREATES
UNCERTAINTY IN A BUSINESS
COMMUNITY, AND IF IT
ACCELERATES CORPORATE MIGHT
NOT BUILD UP CAPEX TO DEGREE
THEY WOULD ABSENT TRADE
SENSATIONS I THIS I THE GLOBAL
VERY SOLID FOOTING.
>> A SURVEY FROM NATIONAL
ASSOCIATION OF BUSINESS
ECONOMICS SHOWS MANY WORRIED
ABOUT A RECESSION, BY 2020
YOUR TAKE ON THAT REPORT?
AGAIN, WE'RE AMERICAN NINE
YEARS INTO THIS EXPANSION.
THAT WOULD BE THAT WOULD BE --
A RECESSION BY 2020 WOULD BE
EXPANSION OF 12 YEARS WHAT IS
YOUR TAKE AGAIN TO INTRODUCE
THE WORRY OF TARIFFS WHAT THAT
WILL DO TO BUSINESS YOU KNOW
PRICES, AND BUSINESS ACTIVITY
HERE IN THE U.S.
>> RIGHT, SO I DON'T THINK
EXPANSION HAS TO DIE OF OLD
AGE, THE ONE CHARACTERISTIC AS
YOU POINTED OUT LONG A PRETTY
SLOW EXPANSION, SO IT IS NOT
STRONG BUT IT IS LONG.
BUT YOU ARE RIGHT, THERE IS
RISK FROM ON THE TRADE
STANDPOINT, CLEARLY, IF THIS
SCLAITS
SCLAIT
ESCALATES INTO TRADE WAR
BRINGS THE NEXT RECESSION IF I
AM RIGHT ABOUT CAPEX KIND OF
COMING TO THE FOREFRONT -- AND
INFLATION NOT GETTING OUT OF
HAND, BECAUSE YOU KNOW THE FED
OBVIOUSLY ENDS UPENDING A LOT
OF EXPANSIONS AND IF INFLATION
REMAINS TAME THE FED WON'T DO
THIS TIME AROUND.
SO IT IS A POSSIBILITY.
IT IS YOU KNOW 18 MONTHS AWAY,
BUT I DON'T THINK IT HAS TO