MINIMUM GO LONGER THAN THOUGHT
TO BE THE CASE.
THE DOW IS DOWN ABOUT 259
POINTS.
LET'S GET THE READ FROM MARKET
WATCHER, HEATHER ZUMARRIAGA, JIM
LECAMP, JACK OTTER AND MY
COLLEAGUE AND "MAKING MONEY"
HOST CHARLES PAYNE.
CHARLES, I IMAGINE THE CHINA
THING IS A WORRY FOR THE
TIME-BEING BUT ARE YOU WORRIED
THIS DRAGS ON LONGER?
>> WE HAVE HARD DEADLINES.
AT SOME POINT THE TRUMP
ADMINISTRATION WILL HAVE TO TAKE
ACTION ON THESE PROMISES.
WE'RE TALKING $150 BILLION WORTH
OF ADDITIONAL TARIFFS ON SOME OF
THESE ITEMS.
ONE NEWS ITEM NO ONE TALKED
ABOUT YESTERDAY, ARM HOLDINGS,
SEMICONDUCTOR COMPANY, LARGEST
IN THE UK, RECENTLY BOUGHT BY
SOFTBANK WAS FORCED TO GIVE
THEIR CHINESE JOINT VENTURE
PARTNER 51% OF THE COMPANY
YESTERDAY, FORCED.
A COMPANY SOLD FOR $33 BILLION.
A TECHNOLOGY GIANT WAS FORCED TO
DO THIS IT UNDERSCORES WHAT THIS
IS ALL ABOUT.
IT IS NOT JUST ABOUT THE
IMBALANCE IN TRADE.
NEIL: YOU THINK IT IS
ENVIRONMENT AND WHATEVER RULES
ARE ON THE BOOKS NOW?
>> THEY WERE FORCES TO DO THIS.
ALL THE TECHNOLOGY THEY EVER
CREATED ULTIMATELY ENDS UP IN
THE HANDS OF CHINESE COMPETITORS
BUT THE CHINESE GOVERNMENT.
NEIL: JIM, WHAT IS GOING ON
HERE?
THERE ARE SEPARATE ISSUES WHO
WILL TALK WHEN AND HOW MANY
QUESTIONS AND HOW INVOLVED THEY
CAN BE BUT I WOULD IMAGINE THE
CHINA THING AS WELL, A DOUBLE
EXCUSE TO STAND BACK, RIGHT?
>> NOBODY REALLY CARES ABOUT THE
STRIPPER NEWS OR, WHAT HE PAID
TO A STRIPPER.
WHAT PEOPLE CARE ABOUT --
NEIL: COULD YOU STOP THAT FOR A
SECOND.
THAT I'M LEADING ON THE FLOOR,
BUT I WILL NOT LEAD WITH A
STRIPPER STORY ANYMORE.
>> BUT AT THE END OF THE DAY
YOU'RE WORRIED ABOUT VARIOUS
THINGS IN THE MARKET.
IT USED TO BE INFLATION.
IT USED TO BE THE TREASURY OR
YIELD CURVE.
PREDOMINANTLY RIGHT NOW IT IS
ABSOLUTELY THE TRADE TENSION.
NOT ONLY WOULD THAT IMPACT THE
U.S., IMPACT CHINA, IT WOULD
IMPACT GLOBAL TRADE.
YOU WOULD HAVE OTHER LOSERS LIKE
KOREA AND TAIWAN.
SO IT DESTROYS A BIG NARRATIVE
OF THIS BULL MARKET THAT WE'VE
HAD WHICH HAS BEEN GLOBAL GROWTH
AND U.S. GROWTH AND LOOK WHAT IT
IS ALREADY DOING TO U.S.
COMPANIES WITH THE SOYBEAN, WITH
THE CHINESE NOT BUYING SOYBEANS.
THAT IS A BIG MOVE.
THAT IS A BIG SABRE-RATTLING BY
CHINA IMPOSING 25% TARIFF ON
SOYBEANS.
SO THERE IS A LOT GOING ON THAT
WE ARE CONCERNED ABOUT IN THE
MARKET.
WE'RE NOT WORRIED ABOUT STORMY
DANIELS, ALTHOUGH WE MIGHT BE
WORRIED ABOUT OBSTRUCTION OF
JUSTICE.
I THINK FOR TODAY IT IS TRADE
WARS.
FOR TOMORROW THESE OTHER THINGS
NEIL: BY THE WAY YOU WERE
MENTIONING THE SOYBEAN THING,
THERE WERE REPORTS, BEGAN OUT IN
ASIA, WHERE THE CHINESE HAVE
APPARENTLY STOPPED BUYING
AMERICAN SOYBEANS ALL TOGETHER.
AGAIN THERE IS NO WAY TO PROVE
THAT.
I MEAN ANECDOTAL REPORTS
CERTAINLY GIVEN THE FALLOFF IN
SOYBEAN PRICES THAT WOULD SEEM
TO --
>> THERE IS A LITTLE BIT SLEIGHT
OF HAND OF THAT, THE SEASONAL
WAY THEY CAN ORDER THEIR
SOYBEANS.
MAKE NO MISTAKE, THEY NEED OUR
SOYBEANS.
MAKE NO MISTAKE OUR SOYBEAN
FARMERS NEED TO SELL TO CHINA.
IT IS A GOOD DUAL RELATIONSHIP.
THEY CAN STAGGER THE WAY THEY
BUY SOYBEANS AROUND THE WORLD
BASED ON WHO PLANTS IT AND
HARVEST WHEN.
ULTIMATELY THEY WILL HAVE TO BUY
U.S. SOYBEANS OR THEY WILL HAVE
A REAL PROBLEM THERE.
>> IF YOU'RE SAYING WE LEAD WITH
SOYBEANS OVER STORMY DANIELS
THAT IS A DICEY ONE.
JACK, ALREADY IF WE'RE GETTING
INTO FIGHTING POSITIONS THE
CHINESE, THE PRESIDENT IS
SENDING HIS ENTIRE ECONOMIC
SUPER ACTION HEROES HERE.
IT KIND OF DOES HAVE A FEELING
YEAH, WE'RE HERE.
CHINA SAYS, YEAH, WE SEE YOU
HERE BUT YOU'RE NOT GOING TO GET
WHAT YOU THINK YOU'RE GOING TO
GET.
>> FIRST OF ALL THIS IS WHY
YOU'RE THE ANCHOR AND HE'S NOT.
NEIL: THANK YOU.
EMPLOYEE WITH THE COSMETIC
STUFF.
>> HERE IS WHAT I SAY, I AS YOU
KNOW AM NOT A FAN OF THE TRUMP
TACTICS AND I AM A FAN OF FREE
TRADE BUT ALL OF THAT SAID, I'M
NOT WORRIED YET BECAUSE LOOK,
WHAT YOU DO --
NEIL: BECAUSE THE CHINESE DON'T
PRACTICE IT.
>> YOU'RE ABSOLUTELY RIGHT.
YOU'RE ABSOLUTELY RIGHT.
NEIL: THE PRESIDENT'S
ALTERNATIVE STRATEGY MIGHT
ENTHRALL THE ENTHUSIASTS BUT HE
IS ABSOLUTELY RIGHT --
>> TACTICALLY, NOT
STRATEGICALLY.
THE KEY POUND YOU UNDERPROMISE
AND OVERDELIVER.
SO EVERY ONE IS TALKING TOUGH
RIGHT NOW.
AND IF THIS WERE CONVENTIONAL
THING, THEY WOULD BE REALLY
DOWNPLAYING IT AND COME OUT WITH
A GOOD DEAL.
WE MAY VERY WELL SOLVE THIS
PROBLEM AND SOMETIMES I'VE BEEN
PROVEN WRONG.
DONALD TRUMP'S BLUSTER APPEARS
TO BE DOING GOOD WITH THE
NORTH KOREA, SOUTH KOREA THING.
MAYBE IT WILL WORK HERE.
NEIL: CHARLES, YOU WERE THE
FIRST TO SEE THAT POSSIBILITY.
I WANT TO GO TO HEATHER
ZUMARRIAGA ON THIS, WHETHER IT
FEEDS DOUBT.
YOU DON'T LIKE TO SEE THIS
MUSHROOM INTO SOMETHING BUT IT
COULD WITH REPORTS THAT CHINESE
STOPPED BUYING SOYBEANS.
THEY MIGHT GET A SLAP FROM THE
UNITED STATES, PARTICULARLY
TELECOM EQUIPMENT-MAKERS, I
BELIEVE I LEFT THAT OUT, SELLING
THAT STUFF HERE IN THE UNITED
STATES THAT COULD HAVE A BIG
EFFECT HERE BECAUSE IT COULD
LIFT THE PRICES OF A LOT OF
TELECOM-RELATED EQUIPMENT IN THE
UNITED STATES.
THAT'S SOMETHING CONSUMERS WOULD
FEEL FAST.
>> YOU'RE RIGHT, THEY WOULD BUT
I THINK IT IS A MORE SURGICAL
APPROACH THAT THEY ARE OPEN TO
TAKING, THE U.S. TRADE TEAM, IN
TERMS OF HOW DO WE PUN FISH
CHINA FOR THEFT OR STEALING
INTELLECTUAL PROPERTY.
THE EXAMPLE OF FORCED ISSUE THAT
HAPPENED THAT CHARLES MENTIONED
AND THAT'S WHAT THEY'RE GOING
AFTER RIGHT NOW.
MORE SURGICAL APPROACH ON HIGH
TARIFFS ON PERHAPS TECHNOLOGY
PRODUCTS COMING OUT OF CHINA,
THAT WOULD BE BETTER THAN JUST
BLANKET TARIFFS ACROSS THE
BOARD.
SO THEY'RE SITTING DOWN AT THE
NEGOTIATING TABLE TODAY.
THEY WILL WRAP UP TOMORROW,
TOMORROW AFTERNOON, TOMORROW
NIGHT.
THAT WILL HAVE AN IMPACT ON THE
MARKETS THAT IS IT WHY THE
MARKETS ARE DOWN TODAY AS WELL
AS SOME INFLATION MOVES AND I
THINK THESE TARIFFS WILL PUT
FURTHER PRESSURE ON PRICES AS
YOU MENTIONED.
SO THAT IS WHY WE HAVE THIS, THE
MARKETS DON'T KNOW WHICH WAY TO
MOVE AND CHINA IS GOING TO MOVE
THE MARKETS.
NEIL: WE COULD SEE A LOT
DIFFERENT, CHARLES REMIND ME OF
THIS, LOOKING NOON EASTERN TIME
COULD BE VERY DIFFERENT BY
4:00 P.M.
>> SURE.
NEIL: I ACKNOWLEDGE THAT.
CHARLES, THE NEXT STEP IF IT
LINGERS ON AND IF IT GETS NASTY,
THESE THINGS TEND TO, AT LEAST
IN THE PAST, THERE IS SORT OF
LIKE A MOMENT THE AMERICAN
PEOPLE WILL HAVE TO BE REMINDED
OR TOLD OR ASSUAGED, THERE WILL
BE A BIT PAINFUL BUT IT IS TO
MAKE A BIGGER POINT.
HOW WILL THAT GO DOWN?
>> WELL I THINK HE, PRESIDENT
TRUMP HAS BEGUN TO DO THAT.
FOR THE LAST THREE OR FOUR WEEKS
I SAY HE SHOULD DO IT BETTER,
MORE FORCEFULLY.
DURING THE CAMPAIGN, WHEN HE
STARTED TALKING ABOUT THIS KIND
OF STUFF AS HE WAS RUNNING FOR
PRESIDENT, I PUT OUT IN SOCIAL
MEDIA OFTEN, ARE YOU PREPARED
FOR, POTENTIAL TRUMP VOTERS PAY
MORE.
99.9% SAID YES.
NEIL: REALLY?
I THROW IT OUT THERE AND NOTHING
TO HAPPEN.
>> I'M SAYING WHEN I ASK THE
QUESTION NOW, 99.9% SAY YES.
NEIL: I DON'T BUY THAT.
DO YOU WANT TO BE THIN?
9 9.9% SAY YES.
>> I TALK ABOUT WHEN AMERICANS
BOUGHT WAR BONDS IN
WORLD WAR II.
THEY DIDN'T DO IT BECAUSE OF
PAYOFF.
BECAUSE THEY --
NEIL: YOU MAKE THAT PATRIOTIC
CONNECTION.
>> PRESIDENT HAS TO MAKE SURE HE
DOES THAT HE CAN'T JUST DO IT IN
THE TWEETS.
NEIL: GO AHEAD.
>> INTERESTING THAT YOU
MENTIONED BONDS, THE CHINESE ARE
A LARGE BUYER OF OUR BONDS AND
THERE ARE THINGS ALREADY COMING
INTO PLAY LIKE STRONG DOLLAR AND
WEAKENING THAT YOU WANT.
NEIL: MAYBE THEY WILL PIE -- BUY
PATRIOT BONDS.
>> WHAT THE TRUMP ADMINISTRATION
NEED TO DO STOP TARGETING A
SPECIFIC DOLLAR AMOUNT, WE WANT
OUR TRADE BALANCE TO BE X
INSTEAD OF WHY.
GET VERY SPECIFIC ON THINGS THEY
CAN CHANGE AND THINGS THAT WE
WANT, NOT THIS BLANKET, LET'S
BEAT THEM BY 10 POINTS.