COMPLICATED SITUATION.
>> Sandra: THE STOCK MARKET
SURGING TO NEW HIGHS, NOT THE
CASE THIS MORNING, SECOND TO
LAST TRADING DAY OF THE YEAR, UP
ABOUT 120 POINTS BUT WILL THE
RECENT STOCK MARKET RALLY HOLED
UP IN THE NEW YEAR?
AND HOW WILL PRESIDENT TRUMP
ECONOMIC POLICIES IMPACT THE
UPCOMING PRESIDENTIAL ELECTION.
THERE HE IS, A HEADLINER THIS
MORNING.
PETER NAVARRO JOINING US AT WORK
THIS MORNING.
>> HOWDY FROM THE SWAMP.
>> Sandra: MARKETS DOWN TODAY,
STOCK MARKET DOWN A LITTLE BIT
TODAY BUT IT HAD BEEN A
RECORD-BREAKING YEAR FOR THE
U.S. STOCK MARKET.
DOES IT CONTINUE IN 2020?
>> THE ROARING 2020s, I
PREDICT CLOSER TO 3% IN REAL GDP
GROWTH, THAT IS VERY ROBUST.
I AM LOOKING AT 32,000 ON THE
DOW BY YEARS END AND BACK IN
JULY, PREDICTED 30,000 ON THE
DOW, USMCA GOT PASSED AND THE
FED LOWERED INTEREST RATES
CLOSING IN ON THAT.
WHAT'S DRIVING THIS ECONOMY IS
IF YOU LOOK AT HOW ECONOMIES
GROW, ITS CONSUMPTION,
INVESTMENT, GOVERNMENT SPENDING,
AND EXPORTS.
VERY CONFIDENT, EMPLOYED RISING
WAGES AND COME ON THAT'S GOING
TO GO IN 2020.
WE'VE GOT EXPORTS NOW, FIVE
TRADE DEALS THIS PRESIDENT HAS
NEGOTIATED THAT ARE GOING TO
COME IN FULL FORCE AND 2020 WITH
JAPAN, SOUTH KOREA, CANADA,
MEXICO, AND CHINA.
CHECK THAT BOX.
>> Sandra: CHECK WHAT BOX?
WE ARE TOLD PHASE ONE, CHINA
TRADE DEAL IS DONE.
>> STRONG EXPORTS.
WE WILL HAVE A SIGNING ON THAT
WITHIN THE NEXT WEEK OR SO, JUST
WAITING FOR THE TRANSLATION.
SO THOSE ARE GOING TO BE GREAT,
THE SLEEPER IN TERMS OF GROWTH
IS THIS NDA AND AUTHORIZATIONS
BILL THAT CONGRESS PASSED TWO
WEEKS AGO.
IS HUGE BECAUSE WHAT IT DOES IS
PUT A FLOOR IN FOR A REALLY
STRONG FISCAL STIMULUS AND ALSO
STRENGTHEN OUR DEFENSE
INDUSTRIAL BASE, SO THAT'S ALL
GOOD.
AND WITH OUR TERROR POLICIES AND
THE STRONGEST ECONOMY IN THE
WORLD, GOING TO BE ATTRACTING A
LOT OF INVESTMENT HERE BUILDING
AND AUTO PLANTS AND STEEL PLANT
PLANTS.
2020 IS GOING TO BE GREAT,
BASICALLY LOW UNEMPLOYMENT,
RISING WAGES AND HAPPY NEW YEAR.
>> Eric: WHEN YOU HAVE ATTACKS
FROM THE DEMOCRATIC CANDIDATES
ON THE CAMPAIGN TRAIL THAT
AMERICANS FEEL IT?
>> THERE WAS A GREAT ARTICLE IN
YESTERDAY'S "WASHINGTON POST" ON
THE FRONT PAGE ABOUT THE RISE OF
AMERICAN POPULISM UNDER
DONALD J. TRUMP AND HOW THE
REPUBLICAN PARTY UNDER
PRESIDENT TRUMP HAS BECOME THE
PARTY OF AMERICANS WORKING CLASS
AND THE PROBLEM I'M SEEING THE
DEMOCRATS HAVE, THEY'VE GOT NO
ANSWER FOR THAT.
THEIR VERSION OF POPULISM IS
BASICALLY ROB FROM THE MIDDLE
CLASS AND GIVE HEALTH CARE TO
ILLEGAL IMMIGRANTS.
THEY'VE GOT NOTHING.
>> Sandra: WHAT THEY ARE
REFERENCING AND IT DOES SHOW UP
IN POLLING, OUR OWN FOX NEWS
POLL INCOME ARE YOU BETTER OFF
THAN YOU WERE FOUR YEARS AGO,
THOSE THAT ANSWERED BETTER, 34%.
WORSE, 3%.
41% FEEL THE SAME.
THEY MAKE THE POINT OF
COUNTERING REPUBLICANS THAT THIS
IS THE BEST ECONOMY EVERY FOUR
AMERICANS THAT SOME JUST AREN'T
FEELING THE BENEFITS OF THIS
ROBUST ECONOMY.
TO THAT, YOU SAY WHAT?
>> FIRST OF ALL,
"WALL STREET JOURNAL" FRONT PAGE
ARTICLE, IT WAS HARD FOR THEM TO
PRINT IT.
WORKERS WAGES RISING A LOT
FASTER THAN MANAGERS WAGES.
THAT SHOULD BE THE MAIN STREAM
JOURNAL TALKING THERE.
IT'S BETTER TO LOOK RIGHT AT
THESE POLLS WHICH ARE A SMALL
SAMPLE, LOOK AT THE GENERAL
GAUGES OF OPTIMISM.
SMALL BUSINESS OPTIMISM AT
REGULAR LEVELS, CONSUMER
CONFIDENCE IS REALLY HIGH.
PEOPLE ARE FEELING REALLY GOOD
AND I'M SO PLEASED THAT THE
PEOPLE WHO ARE BENEFITING THE
MOST FROM THE TRUMP ECONOMY ARE
THE REAL NOBILITY, THE PEOPLE
WHO WORK WITH THE BLUE-COLLAR
WORKERS IN THE LOWER END OF THE
INCOME DISTRIBUTION.
IT'S GREAT, OVER 500,000
MANUFACTURING JOBS GRADED BY THE
PRESIDENT.
MEDIAN HOUSEHOLD INCOME RECORD
HIGH AT $63,000.
HIT FLAT LINE FROM BUSH TO
OBAMA.
>> Sandra: NO DOUBT THERE ARE
SOME SOLID ECONOMIC INDICATORS
OUT THERE AND ONE OF THEM IS THE
STOCK MARKET AND THE PRESIDENT
DOES REFERENCE THAT A LOT, HERE
IS THE PERFORMANCE SINCE THE
PRESIDENT WAS INAUGURATED, GONE
UP 33%, THE BROADER GAUGE OF THE
U.S. STOCK MARKET UP 29% AND
NASDAQ WHICH IS TECHNOLOGY HEAVY
UP 41%.
HERE'S THE POINT THAT
"THE WASHINGTON POST" IS MAKING
AND I WANT TO GET YOUR REACTION
TO THAT, SHATTERED G.O.P.
ECONOMICS REACHED ITS
CULMINATION IN 2019.
FROM TRADE TO SPENDING FOR THE
FEDERAL RESERVE TO PAY FOR
PARENTAL LEAVE.
HAS EMBRACED APOLOGIES CHANGES
THAT ARE HISTORICALLY MORE IN
LINE WITH THE APPROACH OF
DEMOCRATS.
ESTABLISHING A FORCEFUL RULE FOR
GOVERNMENT AND SETTING THE TERMS
OF THE ECONOMY.
THEN A REPUBLICAN.
WHAT WAS YOUR RESPONSE TO THAT?
>> DONALD J. TRUMP HAS LED THE
REPUBLICAN PARTY BECOME THE
PARTY OF THE WORKING CLASS AND
IT'S A BEAUTIFUL THING.
THIS PRESIDENT REPRESENTS
MAINSTREAM AND HE IS DOING IT
BEAUTIFULLY AND THERE IS NO
CULMINATION IN 2019, THERE IS A
CONTINUATION IN 2020 OF HIS
POLICIES.
I THINK THE HISTORY BOOKS WILL
SHOW YOU THE BEST PRESIDENT ON
THE ECONOMY IN MODERN HISTORY
AND HE STILL GOT A YEAR TO GO IN
HIS FIRST TERM.
>> Sandra: GOING TO BE A BIG
QUESTION ON WHETHER OR NOT THEY
CAN LAST.
A LOT OF WALL STREET ANALYSTS
OUT THERE RIGHT NOW.
LET'S ASK ABOUT THE TRADE DEAL
BECAUSE IT HAS BEEN THE BIG
UNCERTAINTY OF 2019.
YOU JUST SAID YOU'RE WAITING ON
THE TRANSLATION FOR PHASE ONE,
SO THE CHINESE DELEGATION TO
COME OVER AND SIGN THAT.
WHAT CAN YOU TELL US THIS
MORNING EXACTLY IS HAPPENING
THIS WEEK AND WHAT WILL HAPPEN,
WHAT ARE WE WATCHING?
>> WHEN YOU SAY THE TRADE DEAL,
TO ME THAT IS USMCA BECAUSE IT'S
TWICE THE TRADE AND FIVE TIMES
THE EXPORTS.
THAT ONE IS WAITING NOW FOR THE
SENATE TO SIGN AND GET MOVING
LET'S GOING TO BE A BEAUTIFUL
THING.
ALL WE'VE BEEN WAITING FOR IS TO
TRANSLATE THE ENGLISH VERSION
INTO THE CHINESE VERSION.
AS SOON AS THAT IS DONE, THERE
ARE REPORTS THAT THE CHINESE
NEGOTIATOR WILL COME OVER AND
SIGN, BUT THAT'S A DONE DEAL,
BUT THAT ONE IN THE BANK.
WHAT'S IMPORTANT HERE IS TO SEE
THE TRUMP TRADE POLICY BROADLY
CONSTRUED AS JAPAN, SOUTH KOREA,
CANADA, MEXICO, CHINA BANKING IN
202020 LOOKING AT GREAT BRITAIN,
VIETNAM, EUROPE, OTHER COUNTRIES
WE ARE GOING TO ENGAGE IN IN A
WAY THAT'S GOING TO DEFEND
AMERICAN WORKERS, NOT TREAT
AMERICA LIKE A PIGGY BANK.
>> Eric: DO YOU THINK THEY
WILL PULL A FAST ONE LIKE THEY
WERE JUST DOING LAST TIME WITH
THAT TRANSLATION?
>> THIS WHAT IS BANK.
>> Sandra: WHEN WILL WE SEE
THE DETAILS OF THAT?
>> IT WOULD HAVE BEEN OUT RIGHT
AWAY, BUT BASICALLY YOU NEED TO
GET IT TRANSLATED INTO THE
CHINESE, DOUBLE CHECKS OF BOTH
VERSIONS MATCH.
IT'S A DEAL IF YOU DON'T KNOW
WHAT IT IS, YOU'VE GOT
INTELLECTUAL PROPERTY THEFT IN
DETAIL FROM THE MAY AGREEMENT,
GOT A GOOD START ON FORCED
TECHNOLOGY TRANSFER, GOOD
LANGUAGE ON CURRENCY
MANIPULATION WHICH IS A BIG
DEAL, YOU'VE GOT ACCESS,
FINANCIAL MARKET ACCESS IN CHINA
FOR BANKS AND INSURANCE
COMPANIES, AND THAT'S A GOOD --
THAT'S A PRETTY GOOD PHASE ONE.
>> Sandra: IS THE DELEGATION
COMING TO THE WHITE HOUSE THIS
WEEK TO SIGN THAT?
>> I'M GOING TO DIVERT TO
INVESTORS OR MY HOUSE AROUND
THAT BECAUSE AFTER ALL THEY ARE
THE ARCHITECTS OF THIS PHASE ONE
DEAL.
>> Sandra: SO THERE ARE
REPORTS THAT IS HAPPENING.
>> NEVER BELIEVE REPORTS ON
ANONYMOUS SOURCES, YOU WILL BE
RIGHT.
>> Sandra: THAT WAS THE
MORNING POST THAT REPORTED THAT.
FINAL QUESTION ON TARIFFS, IS
THIS A CONCERN FOR THE ECONOMY
IN A MARKET GOING FORWARD,
WRITES THAT TARIFFS HAVE BEEN A
DRAG ON EMPLOYMENT AND HAVE
FAILED TO INCREASE OUTPUT.
DO YOU SHARE IN THOSE CONCERNS
AND THE NEW YEAR?
>> NOT AT ALL.
THE TRUMP TERRACE ARE WORKING
BEAUTIFULLY TO DEFEND AMERICAN
WORKERS AND CREATE AMERICAN
PROSPERITY.
I DON'T USUALLY SAY THIS ON AIR
BUT I DO HAVE A PhD IN
ECONOMICS FROM HARVARD, I DID
READ THAT STUDY AND IT IS BASED
ON AN ANALYSIS USING WHAT'S
CALLED DUMMY VARIABLES, IT'S A
BEAUTIFUL DOUBLE ENTENDRE THERE
WHEN YOU LOOK AT THAT STUDY.
I AM WAITING FOR THAT STUDY TO
SHOW THAT GERMAN JAY POWELL
RAISING RATES TO FAR TOO FAST
COST US A POINT OF GROWTH IN
2019.
THAT'S A STUDY I LIKE TO READ.
>> Eric: PhD TUTORIAL LIVE
ON THE AIR ON THE
FOX NEWS CHANNEL.
>> Sandra: TO FINISH, YOU SAID
THE STOCK MARKET RALLY IS NOT
READY, DALLAS AT 28.5 RIGHT NOW.
>> MY TRACK RECORD IS GOOD HERE.
THE DAY AFTER THE ELECTION, I
SAID DOWN 25,000 IN THE FIRST
TERM, GOT THERE.
I SAID IN JULY NOW 30,000 WE GOT
USMCA AND INTEREST RATE CUT, I
THINK WE'RE GOING TO GET THERE
IN THE EARLY PART OF THE YEAR
AND I'M THINKING 32,000 BY THE
END OF THE YEAR AND WITH THE
NASDAQ OUTPERFORMING THE DOW AS
WELL AS THE DOW IS DOING, TECH
IS ON FIRE.