Dow plunges after Trump tells US firms to sever ties with China

Dow plunges after Trump tells US firms to sever ties with China


CHERYL: DURING THE COMMERCIAL BREAK, WANT TO LET YOU KNOW WE ARE COVERING THIS BREAKING NEWS ON THIS FRIDAY AFTERNOON SELLOFF. WE ARE GOING TO BLOW OUT OUR BREAKS. NO MORE COMMERCIALS. WE WILL TAKE YOU RIGHT TO THE CLOSE OF TRADING AT 4:00 P.M. EASTERN TIME. WE ARE JUST OFF OF SESSION LOWS MOMENTS AGO WHILE WE WERE IN OUR LAST COMMERCIAL THAT WE’RE TAKING. THE DOW IS DOWN MORE THAN 600 POINTS. S&P IS DOWN 71 AND CHANGE. THAT’S A LOSS OF NEARLY 2.5%. THE NASDAQ AGAIN, REALLY THE PRESSURE IS HEAVILY ON THE NASDAQ. A LOT OF THE TECH COMPANIES, THINK ABOUT APPLE, THINK ABOUT ALL THE CHIP MAKERS, CHINA IS THE STORY. THE PRESIDENT ORDERED, QUOTE, ORDERED U.S. COMPANIES TO ABANDON CHINA. THE FED CHAIRMAN JEROME POWELL SAID THE FED WOULD ACT APPROPRIATELY TO SUSTAIN THE ECONOMY. HE WARNED ABOUT GLOBAL GROWTH CONCERNS, HE WARNED ABOUT, YES, TRADE UNCERTAINTY THIS MORNING. HERE’S A LOOK AT THE FED FUNDS FUTURES RIGHT NOW. THIS IS THE BET, IF YOU WILL, TRADERS ARE MAKING, WHETHER OR NOT WE ARE GOING TO GET A RATE CUT. MAYBE IT’S A QUARTER POINT, MAYBE IT’S A HALF POINT. RIGHT NOW CHARNG RIGHT NOW CHANCG RIGHT NOW CHANCE OF A RATE CUT FOR THE SEPTEMBER MEETING, A QUARTER POINT, 100% CHANCE. 100% CHANCE WE WILL GET A CUT FOR THE SEPTEMBER MEETING. ALL OF THIS DEPENDS ON WHAT THE FED DECIDES TO DO. THEY ARE ALWAYS DATA DEPENDENT. WANT TO SHOW YOU THE YIELD CURVE. WE HAVE BEEN WATCHING THIS. THE INVERSION OF THE YIELD CURVE WHICH IS THE TWO AND TEN-YEAR, IF YOU SEE THIS HAPPENING AND HEAR THIS HAPPENING, IT MEANS THERE’S A FEELING IN THE BOND MARKET THAT THERE’S A RECESSION COMING. IT’S AN INDICATOR, IT’S A WARNING. IT’S NOT A GUARANTEE. BUT IT’S CERTAINLY SOMETHING YOU WANT TO KIND OF WATCH, OBVIOUSLY. LET’S BRING IN THE FORMER INTERNATIONAL MONETARY FUND CHIEF ECONOMIST MAURICE OXFELD LIVE FROM JACKSON HOLE, WYOMING. WE ALSO HAVE ANDY BRENNER. GENTLEMEN, GREAT TO HAVE YOU BOTH HERE. MAURICE, YOU’RE ON THE GROUND. I DO WANT TO ASK YOU, HOW WERE THE PRESIDENT’S TWEETS, IN PARTICULAR THE LAST ONE, AIMED DIRECTLY AT JAY POWELL, SAYING HE’S AN ENEMY OF THE COUNTRY, THE MARKET, HOW IS THAT PERCEIVED THERE?>>WELL, YOU KNOW, I CAN GIVE YOU MY REACTION. THERE ARE A NUMBER OF ISSUES IN THE WORLD ECONOMY NOW BUT THE BIGGEST FACTOR DEPRESSING GROWTH EVERYWHERE IS THE PRESIDENT’S TRADE WAR. I THINK THE PRESIDENT IS EAGER TO JUICE THE ECONOMY GOING INTO THE ELECTION. THE TRADE WAR IS WORKING IN THE OTHER DIRECTION SO HE’S LINING UP A RANGE OF SCAPEGOATS INCLUDING THE FED MOST PROMINENTLY BUT ALSO CHINA, EUROPE, YOU IN THE MEDIA. CHERYL: YEAH. WELL, WE HAVE A LOT TO COVER, OBVIOUSLY, AND THE CHINESE CERTAINLY TOOK A HUGE SWIPE AT THE UNITED STATES THIS MORNING, BUT JAY POWELL’S IN A TOUGH SPOT HERE. HE’S GOT CRITICISM COMING FROM THE PRESIDENT. THAT’S ONE THING HE’S GOT TO DEAL WITH. ALSO, HE’S GOT TO MAKE THIS A DATA-DEPENDENT CUT IN THE MEETING IN SEPTEMBER. WHAT I THOUGHT WAS INTERESTING, HERE’S THE QUOTE, THERE ARE HOWEVER NO RECENT PRECEDENTS TO GUIDE ANY POLICY RESPONSE TO THE CURRENT SITUATION. WHAT DO YOU MAKE OF THAT PARTICULAR LINE FROM POWELL THIS MORNING?>>WELL, WE HAVE NEVER HAD THIS KIND OF SITUATION BEFORE WHERE TRADE IS SO PROMINENTLY AFFECTING THE GLOBAL, THE WORLD’S ECONOMIES. I THINK, THOUGH, THAT THIS KIND OF HELPED POWELL TODAY BECAUSE HE’S ALREADY SAID HE’S LOOKING TO DO WHAT IS APPROPRIATE AND HE’S AWARE OF SIGNIFICANT RISKS ON THE HORIZON, YET HE’S GOT ALL KINDS OF FED BANK GOVERNORS WHO HAVE SAID THEY DON’T WANT TO EASE AT ALL. NOW ALL OF A SUDDEN, YOU’VE GOT STOCKS DOWN 600 POINTS, S&P DOWN 71, REAL FEAR OUT THERE BECAUSE OF WHAT CHINA DID THIS MORNING. WE THINK CHINA WAS TRYING TO SEND THE PRESIDENT A MESSAGE GOING INTO THE G7, BUT IT’S HAD MORE OF AN EFFECT THAN THAT AND IT’S ACTUALLY HELPED POWELL BECAUSE I THINK IT’S GOING TO ENABLE HIM TO GET THE FED GOVERNORS WHO REALLY DO NOT WANT TO EASE AT ALL, GET THEM IN SYNC FOR A 25 BASIS POINT CUT IN NOVEMBER. CHERYL: SIMILAR COMMENTS FROM NEIL KASHKARI EARLIER THIS WEEK. THAT KIND OF MOVES THE NEEDLE FORWARD FOR A BIGGER RATE CUT. HOW LIKELY IS IT WE GET A HALF A POINT? I ASK YOU THAT, I THINK THE NUMBERS MATTER, BECAUSE AT SOME POINT THE BANK’S NOT GOING TO LEAVE ITSELF ENOUGH ROOM IN CASE WE HAVE A REAL GLOBAL RECESSION AND THERE IS TALK ABOUT THESE CENTRAL BANKS AROUND THE WORLD MAKING THESE STEEP CUTS. YOU HAVE NEGATIVE RATES IN EUROPE. YOU CAN ONLY GO SO FAR.>>YEAH. I THINK THAT ENCAPSULATES THE CONFLICT WITHIN THE FEDERAL OPEN MARKET COMMITTEE. THERE ARE THOSE WHO WOULD LIKE A STRONG PREEMPTIVE CUT TO AVOID GETTING TOO CLOSE TO THE ZERO INTEREST RATE POINT. THERE ARE OTHERS WHO WOULD PREFER TO WAIT UNTIL THEY SEE THE WHITES OF A SLOWDOWN’S EYES. CHAIR POWELL AND HIS SPEECH, HE REFERRED TO A NUMBER OF RISK FACTORS THEY ARE MONITORING. THE CLOSELY RELATED FACTORS OF MUTED INFLATION, TRADE WAR AND SLOW GLOBAL GROWTH AND ALSO REFERRED TO RISK MANAGEMENT BY THE FED. I THINK HE’S LEAVING THE DOOR WIDE OPEN TO MORE CUTS THIS YEAR, PERHAPS A FRONT-LOADED CUT IN SEPTEMBER, AND CERTAINLY IF THE KIND OF TURBULENCE WE ARE SEEING TODAY CONTINUES, WE WILL SEE IT IN THE ECONOMIC NUMBERS AND THAT WILL JUSTIFY SOMETHING AGGRESSIVE. CHERYL: WE ARE GOING TO BE GETTING A REVISION ON Q2 GDP, THAT WILL ACTUALLY BE NEXT WEEK, NEXT THURSDAY, I BELIEVE. IF WE SEE MORE PRESSURE ON GROWTH, AND AGAIN, IF YOU SEE EMPLOYMENT AND INFLATION WHICH OF COURSE ARE THE FED’S ACTUAL MANDATES, NOT REACTING TO POLITICS OR TRADE, THAT COULD REALLY BE A GAME CHANGER, NOT JUST FOR THE COMMITTEE BUT FOR THE MARKETS.>>YEAH. THE WAY I SEE IT IS THERE’S NO RECESSION ON THE HORIZON FOR THE U.S. ECONOMY. CONSUMER GROWTH CONTINUES TO BE VERY STRONG. IT’S 70% OF GDP SO WE’RE NOT GOING INTO A RECESSION. EUROPE, ON THE OTHER HAND, IS ALREADY IN CRISIS AND WITH THESE TWEETS TODAY GOING BACK AND FORTH, I’M JUST AFRAID ABOUT WHAT THE ECB IS GOING TO DO ON SEPTEMBER 12th AND WHAT WE MAY DO TO FOLLOW THEM ON SEPTEMBER 18th. IT COULD REALLY BE AN UGLY SEPTEMBER. CHERYL: YOU KNOW WHAT, MAURICE, HE BRINGS UP A REALLY GOOD POINT. G7 IS THIS WEEKEND. THE PRESIDENT IS GETTING ON A PLANE ABOUT 10:00 P.M. EASTERN TIME HEADING OVER THERE. THIS IS GOING TO MAKE FOR AN INTERESTING 48 HOURS. IT COULD BE REALLY A CRITICAL 48 HOURS FOR THE MARKETS, NOT JUST WHAT’S HAPPENING IN THE G7 BUT ALSO WHAT’S HAPPENING IN HONG KONG. WE ARE NOW AT 11 STRAIGHT WEEKS OF PROTESTS THERE.>>WELL, LOOK, THERE’S HONG KONG, THERE’S THE POSSIBILITY OF A NO-DEAL BREXIT AND THAT WILL BE SOMETHING DISCUSSED AT THE G7. THERE’S THE TRADE CONFLICT PEOPLE AREN’T FOCUSING ON BETWEEN KOREA AND JAPAN WHICH IS REGIONALLY QUITE IMPORTANT. THERE’S A LOT IN THE MIX HERE. AND YOU KNOW, THESE G20, G7 MEETINGS HAVE BEEN FEATURING A LOT OF DISCORD IN THE PAST. LOOK, WE KIND OF HAVE FOCUSED ON CHINA HERE IN TERMS OF THE TRADE CONFLICT BUT DON’T FORGET, THE PRESIDENT HAS THREATENED OTHER TARIFFS ON EUROPEAN CARS. SO THAT COULD COME UP ALSO. I THINK IT WOULD ADD TO THE KIND OF TERROR WE ARE SEEING OUT IN THE MARKET. CHERYL: MAURICE, YOU LOOK NICE AND RELAXED.

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100 thoughts on “Dow plunges after Trump tells US firms to sever ties with China”

  • Isse Mexfincano says:

    There is no recession on the horizon says that blind ignorant dude… the US has been in recession for 2 Q’s already…

  • what have we lost with this?? shelves full of China made junk…I support this…it is better than US getting cheated and on hind tit in everything we do we these countries…..

  • 11 AM on Friday, stocks plummet for apparently absolutely no reason. North Korean missiles and Iranian Guard nor involved, just Trump's tweets. Goes to show that Trump has absolutely no regard for the lives of Americans, the Chinese were far more decent, put their news early in the morning to allow the markets to absorb the impact.

  • Trump will ruin America, just like he bankrupted/ruin 6 of his failed businesses. Trump is the worst Russian style dictator this country has ever had.

  • Yes 2020 election is coming so Globlist are going to hurt economy, vanguard has 5 trillion dollars so they can afford to stick it to America ! And fed of course.

  • screw the markets.  The market is still far higher than 2016. China is a trade cold, what's  going on in the market is the fever and sweats that beat the cold and put us on a healthier path. This has been needed for decades. China has been trying to dominate trade for years. With illegal trade practices,  bullying tactics to lesser countries  and the luring of world wide  manufacturers  with the promise of cheap labor. After a while with all your money going to them and non of theirs coming in, well, they own you . Think about that all you idiots out there who are crying , and think about China's behavior  in the world markets over the 25 years.

  • The President already said it: If you're not happy here, you can leave. You’re free to leave if you want. If you want to leave, you can leave now.

  • Tell the truth–DOW (30 stocks) plunges, because profit-takers, most of whom are machine-based algorithms, acted.
    Correction has already begun.

  • Candidate Trump told us he would start a trade war if China continues to cheat. Thank you president Trump for keeping your promise. Our country’s long term future needs a strong industrial base.

  • Trump is obviously incompetent and dangerous, a demented narcissist who is sailing the ship of state, and everyone, except his deluded base, knows it.

  • Michael & Paulette says:

    If we are ever going to deal with China and their corruption in trade, we have to do it now. So far, no one else has had the courage to do it.

  • I see lots of bla, bla, bla. I can't believe people actually believe Trump. Trumpers want to believe that someone else is to blame. Trump started the fight thinking he is the chosen one. Americans are still waiting for a cheaper and better healthcare, better infrastructure and a fantastic education. The Trumpers are to blame they voted for bankrupt Trump.

  • I think that FOX business commentators need to go down to farmland and explain to the farmers that there is no recession. American farmers need to know this because they are already in a recession and almost bankrupt.
    Yes "BANKRUPT " Trump bankrupt the farmers and then he gave them 16 billion dollars that was added to the national debt. Not only that starting sep first China has stopped the purchase of American farmer products. See China doesn't only sell Chinese products to America it also buys American products. You dummies.

  • This is to all the Trumpers out there. Trump told you that China dumps and fills America with China products. What he did not tell you is that China is also a customer of the U.S. yes China also buys American you dummies.

  • Do you know why is so difficult for Trump to win the Tariff war to China, because China also bought AMERICAN products. So, if America puts a tariff on China, China puts a tariff on America.
    It's all the Trumpers fault they voted for bankrupt Trump. Mr. Expert on everything.

  • It shows that the fed is actively making the usa economy head to a recession, they have always been doing this, since day one they crestr economic unrest and they are the reason why the world hasn't progressed as a species, they won't let people have any more money. Without money nothing can be dome on a megaprojects level, such as space exploration and mining and 5th generation tech advances, all because of central banks looking at there job as a absentee landlord just collecting rent and not actually investing into the countries of the world. Just saying

  • QuickDraw Mcgraw says:

    It's about time.Why are we trading with the enemy anyway? Oh yeah, large multinational companies love slave labor. Get rid of the Fed they are the root of all evil.

  • China is the biggest CHEATER and THIEF in the world. I hope trump puts 25% tariffs on everything that comes from China for my kids and grand kids sake. America 1st, NOT COMMUNIST CHINA!!!

  • let the "jones"drop to nothing….we dont need China ! tax 'em high . we need a war with China…a red flag event will do it. does China have weapons of mass destruction ??

  • Till it hit's 10,000 or12,000 it's a planned slump paid for by the money Folks!!! We the people have you figured out, You Folks are the loosers.

  • Trades war is eventually will happen even if Trump wasn't President. Better now then later when we still have a chance. We funded, built companies, share knowledge and introduce them to the free trade market hoping they would abandon Communism. WRONG, They wanted to conquer the world.

  • We were so stupid to have our biggest enemy making our goods. It's suicide to feed the hand that bites you. Bill Clinton made China a world threat with his NAFTA scheme.

  • Estebahn Goldman says:

    The investment in Construction to build manufacturing back in United States . China is threaten every one around it with war over South China Sea .

  • Is this going to have an impact on Ivanka’s clothing line as well?
    What about Melania’s jewelry line? Will they be held accountable for products manufactured in China and in other various overseas facilities?
    What about bringing those jobs here? This is an excellent leadership opportunity for the first family if they are willing to take that leap.
    A sort of “putting their money where their mouth is” gesture.

  • We need to place most of the blame where it belongs: America’s corrupt “government.” The “Government” Taxed and Regulated all the Manufactures out of America.

  • This Maurice Obstfeld can barely hide his arrogance and dislike of Trump. You don't have to be a fan of Trump to find this guy a fool. He was a complete failure at the IMF and couldn't avoid the failure of the EU which is his home base of smarmy bureaucrat.
    BTW, who names their kid Maurice – he was probably traumatized for years on the school yard which explains his cognitive decline

  • Nothing funnier watching 20 million Walmart-dependent Trump voters blaming China for exporting the goods US manufacturers hired them to make cheap and ship back. 😂 And they just gave these US companies tax cuts! Talk about the chickens coming home to roost for Reaganomics.

  • VIVA La TRUMP AND ALL HIS POLICIES AND STANCES AGAINST A ROTTEN, CORRUPTED, THIEVING, COMMIE CHINESE GOVERNMENT ALL THEIR ATROCITIES AGAINST AMERICA TRE PAST THIRTY YEARS! THANK GOD IN HEAVEN FOR A REAL LEADER UNAFRAID TO TACKLE DIRTY RED DRAGON BULLY, UNLIKE: BUSH 1, CLINTON, BUSH 2, AND HEUSSEIN O'BUMMER! TRUMP NOW, TOMORROW, AND TRUMP FOREVER! B TRUMP 2020………………AND WAY BEYOND, THE GREAT TIMES ARE HERE, AGAIN!

  • This Great News if you want to buy Shares Wait and see how cheap they going to get first. Microsoft shares could be a real bargain soon.

  • Mr. Miami Cuddles says:

    too many benefits CONGRESS gave them. this is how Article 1 Section 8 works. Congress is making a fortune by giving tax cuts to corps that produce overseas. cut those subsidies if they don't come back.

  • One out of 7 white people in America are millionares. 1 out of fifty african Americans. Wow one out of seven white people are going to hell and one out of fifty black people will go to hell. Im telli ng you God is watching and judging so enjoy hell

  • You know your world is failed when you lose your SSDi benefits do to some Coward at there office getting thear feelings hurt .

  • Yes manufactures need to leave China, they take advantage of the U S and coming back to the US will help real Americans to go to work and improve their lives and our Country

  • Before this happened I was on here telling people they can make it look like it drops when they want to make the public get in an up roor then they magically make it better. I saw another video pointing all of that out. The pot stock is what you should invest in oh not many people have money to begin with.

  • bluchocolate123 says:

    Asustained and gradual global alliance against China would have been much more effective.
    Once trump imposes tarrifs on all Chinese goods and the market adjusts to the new equilibrium he will have no more cards to play.
    He needs to be very careful not to paint the US into a corner.

  • Justin Donaton says:

    Now its time to create AMERICAN GOVERNMENT FUNDED and owned USA Manufacturing Companies. Enough baby siting other countries, MADE IN U.S.A

  • I don't think the general acceptance of this issue was the response that main stream media had hoped to propagate. xD) This is a step in the right direction and will lend to a stronger US economy in the future – not to mention, put China in check, while simultaneously helping the US to build strong new partnerships abroad.

    TLDR; China needs to sit the F down!

  • DeMeaning Plebny says:

    Oh please. A 500+ point drop in 1987, when the market was at 2700, was a crash. A 500+ point drop at these levels is spit.

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