TODAY.
THANK YOU VERY MUCH.
>>> WE HAVE 20 MINUTES LEFT
BEFORE THE TRADING SESSION
CLOSES, ONE OF THE WORST
PERFORMERS ON THE DOW, DOWN
2.5% IS GOLDMAN SACHS.
CHARLIE GASPARINO ON THAT AND
THIS CRAZY MARKET DAY.
>> WE'LL GET INTO THE MARKETS
IN A MINUTE.
UPDATE ON LLOYD BLANKFEIN, THE
CEO OF GOLDMAN SACHS.
BROUGHT GOLDMAN BACK FROM THE
BRINK OF DISASTER IN THE 1980s,
WIDELY CREDITED WITH THAT.
HE IS LIKELY TO LEAVE AT THE
END OF THE YEAR, AND DAVID
SOLOMON IS GOING TO BE HIS
REPLACEMENT.
WE'RE GETTING A DIFFERENT FEEL
FROM PEOPLE INSIDE GOLDMAN.
NOT TELLING YOU THE JOURNAL IS
WRONG.
THERE'S A GOOD CHANCE BLANKFEIN
IS GOING TO STAY CLOSE TO 2019.
THIS IS THE WAY THE RATIONALE
HIM STAYING THROUGH NEXT YEAR.
IT IS IMPORTANT AND I'LL TELL
YOU WHY IN A MINUTE.
MIGHT GIVE UP THE CHAIRMANSHIP
OF GOLDMAN, MAY GIVE THE CEO
JOB TO DAVID SOLOMON THIS YEAR
AND STAY NEXT YEAR AS A
CHAIRMAN.
WHY IS 2019 A BIG THING FOR
LLOYD BLANKFEIN?
THAT'S GOLDMAN'S 200-YEAR
ANNIVERSARY.
LIZ: GOLDMAN IS CLIMBING IN THE
WAKE OF WHAT YOU JUST SAID.
>> THERE'S A REASON FOR THAT.
HE WAS A GOOD CEO.
LIZ: HE IS A GOOD CEO.
>> HE'S STILL THE CEO.
HE MAY STAY WITH THE COMPANY AS
CHAIRMAN THROUGH NEXT YEAR.
MAY RELINQUISH THE CEO JOB.
THERE IS A POSSIBILITY THEY DO
IT IN STAGES.
HE WANTS TO STAY.
THIS IS A BIG THING FOR HIM.
GOLDMAN'S 150-YEAR ANNIVERSARY.
I DON'T THINK THE COMPANY IS
JUST GOING TO BLOW HIM OUT JUST
FOR NOTHING.
THIS IS A GUY, IF IT WASN'T FOR
BLANKFEIN AND SOME EXTENT GARY
COHN WHO WERE AT THE HELM IN
2008, THIS COMPANY MIGHT NOT BE
AROUND.
LIZ: LOOK AT THIS, WE ARE 200
POINTS OFF THE LOWS OF THE
SESSION.
>> IS THAT BECAUSE OF ME?
LIZ: ALL BECAUSE OF YOU,
CHARLIE.
>> I SHOULD SAY, GOLDMAN SACHS
SPOKESMAN HAD NO COMMENT.
[ LAUGHTER ]
>> ON THAT!
>> I GOT IT FROM SOURCES CLOSE
TO THE FIRM, AT THE FIRM.
LIZ: WE'RE STILL DOWN 588
POINTS.
THIS IS ALL TRADE, ISN'T IT?
>> YES.
LIZ: SUNDAY NIGHT THE CHINESE
CAME OUT.
>> THERE'S A SPRINKLING OF
POWELL HERE.
LIZ: JEROME POWELL.
>> THE FED CHAIR INDICATED,
THAT'S WHAT TRADERS TOLD ME
TODAY, I DID A CHANNEL CHECK.
STOCKS STARTED TRADING OFF LIKE
IT WAS LIKE THEY ADDED ANOTHER
200, 150 TO THE DOWNDRAFT,
AFTER HE SPOKE, AND THERE WAS
INDICATIONS OF MORE RATE HIKES.
LIZ: HERE'S WHAT HE SAID.
GROWTH IS PICKING UP.
THAT'S FROM YELLEN.
STEADY INCOME RISING.
HOUSEHOLD WEALTH IS IMPROVING.
YELLEN.
ONLY MODERATE WAGE GROWTH.
YELLEN SAID THAT.
GRADUAL AND PATIENT MOVES ON
INTEREST RATES.
SAID NOTHING ABOUT FOUR FOR THE
YEAR HIKES OR FIVE.
>> DID HE SAY THREE?
LIZ: I DIDN'T LISTEN TO THE
WHOLE THING.
HE SAID BE VERY PATIENT AND
GRADUAL.
THOSE ARE JANET YELLEN'S WORDS.
HE DIDN'T SAY ANYTHING ABOUT
LIBOR, WHICH HAS BECOME A
PROBLEM.
THE OVERNIGHT INTEREST RATE
THAT BANKS CHARGE EACH OTHER.
THAT'S A WORRY.
>> IS THE MARKET COMING BACK ON
ME?
LIZ: IT'S ALL YOU, DARLING.
HE'S A LEGEND IN HIS OWN MIND.
WHERE IS CARLY SIMON?
>> MOST OF THIS IS TRADE, AND,
YOU KNOW, GOLDMAN IS SPIKING A
LITTLE, THAT'S SO BIZARRE.
A LOT OF THIS IS TRADE RELATED,
I THINK, YOU KNOW -- YOU KNOW
JEFF FLOCK DID A GREAT REPORT
EARLIER TODAY.
HE SHOWED THE IMPACT OF WHAT A
TRADE WAR WOULD BE FOR U.S.
FARMERS AND SHOWED HOGS, PIGS
RUNNING AROUND AND THE FARMER
SAYING WE IMPORT A LOT OF THIS
STUFF TO CHINA AND THEY'RE
ALREADY SQUEEZING US.
UNLESS TRUMP REALLY BELIEVES
THAT TARIFFS MAKE PORK GREAT
AGAIN OR SOMETHING LIKE THAT,
THIS IS NOT GOOD ECONOMICS.
LIZ: SO ONE OF THE THINGS THAT
THE CHINESE SAID THEY'RE GOING
TO ADD ANOTHER 25% TARIFF ONTO
WOULD BE U.S. CARS BEING
IMPORTED TO CHINA.
THERE ARE ALREADY TARIFFS THAT
WOULD EQUAL 50% ON A U.S. CAR
COMING INTO CHINA.
WAIT.
NOW THE PRESIDENT APPARENTLY IS
CONSIDERING HELPING THE U.S.
AUTO INDUSTRY BY FORCING --
THIS IS SO IRONIC, FORCING
ENVIRONMENTAL RULES ON IMPORTS
THAT ARE COMING FROM FOREIGN
COUNTRIES ON CARS.
WELL, HE'S RELAXING THEM, EPA
EMBATTLED SCOTT PRUITT RELAXING
ON THE U.S. CARS BUT SAYS YOU
HAVE TO BE ENVIRONMENTALLY
PROTECTIVE ON FOREIGN CARS.
>> THIS IS A SLIPPERY SLOPE.
THE CHINESE DO BAD STUFF, WE
SHOULDN'T TRUST THEM AND THEY
WANT TO WIN AN ECONOMIC WAR, WE
GET THAT.
WE SHOULD TAKE MEASURES.
LIZ: THEY STEAL OUR IDEAS.
>> THEY STEAL OUR STUFF.
WE PLAYED ROUGH WITH OTHER
PLACES OVER THE YEARS.
WE'RE NOT A CHARITY HERE.
SO LET'S BE REAL CLEAR HERE.
WE'RE HERE AND HAVE TO GUARD
AGAINST.
THAT LIZ, TWO CEOs, I REPORTED
THIS EARLIER TODAY.
I'M NOT GOING TO SAY WHO THEY
ARE.
YOU WILL KNOW WHO THEY ARE,
MAJOR CEOs, WENT TO TRUMP AND
SAID THIS, TIT-FOR-TAT TRADE
WARS NEVER ARE GOOD.
THIS COULD ESCALATE.
LIZ: ESTABLISHMENT, OLD SCHOOL
GUYS.
THAT'S WHAT TRUMP WOULD SAY.
>> THEY'RE RICHER THAN HE IS.
THEY ARE.
I KNOW THIS.
AND RUN MAJOR COMPANIES.
HE'S NEVER RUN A MAJOR COMPANY.
WHAT THEY'RE SAYING IS -- THE
TRUMP ADMINISTRATION ISN'T A
MAJOR COMPANY.
YOU GO FOR TIT-FOR-TAT TRADE
WAR, YOU'RE GOING TO LOSE.
DO A COMPREHENSIVE TRADE AGENDA
WHERE WE GO AFTER THEM.
IT'S LIKE AN UNTHOUGHT-OUT
PLAN, YOU DO ONE, THEY DO ONE,
THEY HIT US, WE HIT THEM BACK.
IT ISN'T LIKE THE GODFATHER
WHERE WE TAKE ONE OF THEIRS, WE