there is a significant loss we are much obliged to you. >> thank you very much. so far he hasn't responded. you know the threat that's on the table. if the chinese dare consider a response to the $200 billion of additional tariffs. he will up at another $200 billion so what we hear is this idea that he is not happy and he plans to fight back in the west. if someone hits you on the left cheek you turn the other cheek. he has not indicated how or exactly or how he would punch back.

i tend to straddle between the lines on this. specifically for this. it's anyone's guess how it all ends up. the president has indicated they have a lot more to lose than we do. the asian market tumbles far more than our own. but it is sort of something that is getting caught up in the world wide worldwide mix here. as a technology selloff that stewart alluded to here. the notion earlier that the administration was going to seek to limit if not for bid chinese investment. something of the treasury secretary said it was not the case. that is the report that's out there. it was not argued for hours. and now all the senate's fake news. i think sometimes things get to be fake news if they are disturbing.

and on the other side of this. the repercussion for some big tariffs that could be applied to a lot of european vehicles that make their way to this country. what is real and not fake is a very factual selloff we have. based on the idea that this is spreading. or fears that it could. is it. i'm not surprised. we have talked about it for a few weeks. unintended consequences they say. and they just came out with another tweet saying is not just china as any other country we will restrict investments in our technology. that is the worst of all. it's not truthful. all they're talking about is limiting or stopping the free flow of capital. the engine of growth.

we can quickly catch up really. especially in technology off of those words. the european union. how bad is this can get. if you're in the market for a car. there will be deals always. they have to sell vehicles. the average vehicles being sold and now we're dipping down. and ways to get rid of these vehicles. but one of the things you said is very interesting. as electric vehicles are part of that technology push.

it improves all investments here in the u.s. that's from a hong kong company. we are can get to get some investment from china. that could and bringing vehicles back and forth whether built here are built in germany or somewhere in the eu. that may be a washout and tariff. all along from the beginning we had been bullied and we been giving the bully our lunch money all along. now what they're trying to do. a long way from that. the technology stock selling off here.

they can no longer invest in them. we will sort out what's fake what's real. every sector it was always problematic. what do you look at. what worries you. that leading groups in the market are now turning down simple as that. half the market was already in trouble when they can quote amazon. i get in trouble. it will be about a hundred million dollars hit for them. instead if you're over there because of the outcome of these tariffs. this changes the playing field. and you have to remember every company.

in this case with harley they decided to eat the $2,200 for extra on the motorcycle because they don't think they can sell them at that price. that is a huge problem for business. they now had to prepare and plan all over again. that's why see market uncertainty. you don't know what's coming next out of this administration or chain who by the weight doesn't have elections anymore. they don't have to worry. they are playing big dog right now. i do not think they're going to lie down. it wasn't accidental or coincidental. here they're everywhere. and just see what happens. you have these powerful german

auto concerns. where are all crashing. we could drop the tariffs. you can have a global economy. then you have to worry about companies who just opened a brand-new plate. and the goal is to build an f-16 here. there can be a tariff in place. it's going to hurt the plant here. it will be less workers that will build vehicles and other countries. we want to build here. we want to sell globally. it is that the tariffs will go away keeping you on top of this mixed read.

when we were getting these reports at the administration. there was an over obsession on that. and a future that have not been mentioned prior. and then the treasury secretary comes out and tries to clarify quoting here from this tweet. it doesn't exist or know the subject very well. no offense mister secretary. what was fake is that it will go beyond china. someone is lying. the media is reporting at first it looked like china, you are saying that it's fake news. either way the fallout as you can see is severe. that is not fake its line. just outright lying. small business administrator under president bush would agree i think they are playing

with fire. and i think it risks inflaming markets the world over. this problem has existed until a long time. it was talking about the same thing and the trade imbalance. in the intellectual property theft. it wasn't level playing field. we've just seen as problems exacerbated. china is a long-term player. are you for this move. they will have to realize. it's one thing to stop goods from getting there. that the sector in any country or individual could find appealing. i can understand if it's a very sensitive area.

this is a technology in the aggregate. they are sitting shooting themselves in the foot. especially when we're talking about artificial intelligence. and one of the concerns that we had is we need to make sure that we are dealing with someone that respects our intellectual property. we don't want people even the europeans to consider investing in our technology. it's closing off a lot of potential buyers. we are still of the strongest market in the world. there can make decisions based on their self interests. you have to be able to invest. i totally agree. we need to have fair trade.

and maybe some of these countries to their knees here. the fact that they don't sound like they are biting and that could change. to your point they haven't responded. and that's a hopeful development here. i see as a positive sign. the chinese don't usually go this public and you also know this. they are already having tons of conversations behind the scenes. that is not happening in a vacuum. in the trade work with two into dependent now. you don't think the president is just fly by the seat of his pants. it looks more like badness to me. i do agree with the trade war. and i don't agreed with

tariffs. at the same time, what we've been doing for years has not been working and we need to have a change. especially for small businesses. we have now extended this. that hurts our companies. >> we still need investment from around the world. and we are investing around the world but we just want to make sure that when we do invest in when they invest a mutually beneficial situation. not one site is getting the better deal. do you think someone will blink. we need the chinese for a lot of things. not only our trade but what we are trained to do in north korea. they buy a lot of our bonds. we are going to be interdependent for a long time. we have to start playing chess.

in china is not going to let this escalate to a place where they are going to be heard. i don't think they will stop doing this always good seen you my friend. i just try to put this in perspective. i'm just a simple country and financial anchor. it's something that is not jiving because we are getting mixed signals over at the white house. at first saying we were going to limit it to the goods that were already outlined. the chinese come back to say we might respond to that the threat of that is enough to up the ante once again. in the course of that we have extended that in this to investing in an entire sector and by the way the sector does produce the bull market.

have the strongest market. of any new president. it largely because of this latest trade staff. but we have essentially told the world don't invest here in that sector. it was fake news and a light to say that that was the administration and the clarification was something like this. we weren't just trying to screw china. i want you to think about that. that's not fake news. that is really screwed up news we are down 418 points. more after this. what's a gig of data?

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click, call or visit a store today. he was getting very nasty with me. and now the tao tenure with the technologies. maybe you are the one who is incoherent. don't question the coherence of the administration. you are just you're just jealous and by the way you sound stupid.

i should point out that here is what is stupid. we are now saying the treasury secretary comes out with a comment. just trying to calm markets presumably. they are not limited to the chinese. we want the chinese to stop investing in technology. into clarify that we don't want to limit it to china. this will apply to a lot of other countries that are interested in buying our technology stocks. this is about fake news addressing the idea that no one now can invest in our technology sector going from goods and intangible items. two are very system of capitalism. it has made us the envy of the world.

and then he has the job to say everything else is fake news we followed the numbers appear. it is changing your position for the numbers that are being produced and responding to that news because you are very worried about the market reaction. what you're saying. that's not us america. the former republican. can a black while. this really stupid. when this administration has slapped excessive regulations. back to the united states

getting to a trillion dollars off of the fence we now had this confusion and it really does come from for taking us to the cleaners and we want china help with north korea. we are playing with two different arena. we have we've a bilateral approach. and we have a wider ring. >> and you are quite right. they have he is doing it. and maybe there is a method to this. but he must know that in so doing this with the market reaction. he envisioned.

and is costing him. big time. and the big sellout. i think that the president has changed that. for those of us that are used to more traditional approaches. your confuse. i am not clear. and i just wonder if he knows or appreciates the degree to which they trade. he has a very serious repercussions. i think you are right in terms

of describing the conclusion -- confusion that is out there. at a time when the president and congress need to be talking about how we respond to the wayfarer decision of the supreme court so that we actually protect the engine of economic job creation. we are very fight fair-minded fella. others as well. do you immediately i hope i

can get my writing mind wrapped around the strategy. i think there is a strategy there and a battle with the chinese they are they are forcing these on towards the relationships where the only way we can do business over there as if chinese companies own 51% and these are companies that are fed by the state. it's an uneven playing field. the president is trying to play this out. people say someone is playing checkers and chess. i think this president's plane chinese is plain chinese checkers. five competitors on the board and they play off of one

another. and that in fact creates confusion in the markets don't like confusion. i'm hoping there will be some victories and that will bring. i don't see it. you could be right. you're always good have on. i'm not the only one waiting for some clarity. it's going to move a lot of production out of the u.s. we don't like what's going on.

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>> i'm getting some very nasty e-mails. >> you probably think this show is about you. alright harley davison all right harley davison is moving some production out of the u.s. in response for that. they have more on that. the president responded by getting angry about them getting jobs overseas. as can be hard for them to get angry at harley-davidson because it is his steel and aluminum tariffs. and then the retaliation by europe has taken the tariffs on a motorcycle made here in the u.s. and shipped to

europe. from 6% to 31%. that's a 21% increase additional terror. what has that done to the price of a bike in europe. jacked it up by over $2,000. there's no way it can actually raise prices that much and continue to sell bikes. and the regulatory filing today. it will bear significant impacts from these tariffs in the company estimates the incremental cost and the remainder of 2018 to be what they do. to address to shift production for the eu from the u.s. to its international facilities to avoid the tariffs. that means more jobs in just outside of milwaukee which is where they make harleys in the u.s. and shift that overseas

to thailand, brazil australia, this is the reality. the unintended consequences. excellent reporting as always. jeff flock. then there is a whole sector of technology of course. if you want to be fair about it. the length of the bull market. really interrupted today with reports that the president wants them to stop investing. we met everyone else also. but not just china. we also had deidre. she does her homework. that is not the best thing to

do to argue. to chase your buyers away. then all of the headlines that we've seen about the tariffs. this will actually move the needle. whether it is for better or worse right now the investors hate it. they had been nasdaq on track for the third day down. it seems like it is making investors very anxious. this is clearly muscular with the significant groups with arrow space. china is really just saying we don't want to keep manufacturing the world t-shirts and cheap toys. u.s. here not allowed to have all of the intellectual fast-forward products. you cannot dictate how work in a run our economy we have talked about this interchangeable and connectedness. they all get at least half their products and components in components from china and apple has sold for the past three years has sold more

iphones in china than in the u.s. what have they done for this administration. we have seen in the past someone can see something. and then everything comes down. >> it will eventually be this. this is pretty typical like trump playbook stuff. take an outrageous position and make a big splash at it and see what you get at it. like were getting a pretty beat not market because of this position. if it means like everyone turned against him i can see that.

on that part of the deal. one of the other things i'm trying to get. this notion that it's one thing to target a country's products is another thing to target their investors. and where that money goes. this is what you are same. i think going back to china only there are people who say clearly china's deals with the intellectual property per year for the rest of the world especially because all of the stocks that you just mentioned are among the most traded and held whether it's pension funds and pension funds that serve teachers. all of the stocks that you just mentioned have been a big

winners. you could argue that they had thought that on the notion that they will be resistant to any of these things. with the chinese are there. at the certain point that is what has happened in the past. things calmed down and in the present gets whatever he wants. he basically defers to that. there were a lot of headlines back and forth. and then behind closed doors there was a compromise made. it was fairly watery as it deals go. i actually don't know that

that is possible with china. the allies i had have all of the decades of positive political and business relationships. and even north korea. here we punch back. there's also another quote coming from his office. china is not going to yield to outside pressure. i think we're also getting reports of china very slowly walking that way. sitting on a desk somewhere. they just want you to say that. this just in. investors don't like it.

we are separating kids from our parents. why not do separate ice from the government funding. the number of democrats. i understand the people's frustration with the current. they are hard-working. all of this about defunding. we need to deport people from the nine states there are bad people in this country. i think it's all really misguided. a world without you guys. that is a pretty dangerous world whether you are for how we handle things at the border or not. who takes her place.

even if they got rid of it. someone also take the place. it would be like a guardsman role. something similar to that. i just wanted to get bad guys off the street. if no one in the obama ministration ever thought about that it would be silly to get that. the big thing we have going for us right now. they have to try to deal with that in the interim.

the border patrol have been doing the job very well. and then that meg gratian is illegal migration. so it will happen then. 50,000 a month sneaking in. what were behind those things. as a slight increase over last year. if you look at 2000 they were crazy in 2000. 1.5million arrest. families traveling together. the other problem is they are all creating an asylum. so the backlogs had formed. and then had to end up releasing people to wait for that hearing. the frustration that you must of been felt is that you could recommend this uncertain number of people have to go. they are handed over to local authorities.

the problem was just compounded. what does ice do in the meantime. there is not much you can do. i think it just comes with the territory. the folks there are kind of used to it by now. thank you for doing it yours. the former acting director. not an easy job. no matter what you do it doesn't seem to be enough. i also have a chance to recently speak to the at the tsa. they told me that another sign this account is going gangbusters.

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trillion dollar economy. hey adam. this is a note from morgan stanley and their economist over there. they said the $350 billion because of the u.s. initiative trade branch of the military and call it space of force. our conversation as with various actors current and retired in the u.s. government. they overwhelmingly indicate that we will see significant development. there are roughly 20 companies. one hundred others that they are monitoring. there is analog devices.

you can see those stocks right now. taking a hit. this is the kind of thing they're talking about. take ticket one week further i guess. some people said i'm a space cadet, so perhaps. all writs the tsa administrator said things are looking pretty good for the economy which could be pretty bad. how's it looking. it's can be a really busy summer. it really already has been. with about 2.5 million passengers going through a screening checkpoints. is busy. that is the sign of a good

economy. he is there to brace you. 47million americans. traveling this fourth of july. it says great things about the u.s. economy. better than any survey you could possibly think about computer consumer confidence. when you really want to know how the economy is doing. you look at gasoline demand. that is the best indicator i have ever seen. a lot of times you could measure the u.s. economy in miles per gallon because that really tells you how people feel. gasoline prices even though they've come down over the last two weeks. substantially higher than they were a year ago. it's not this. the numbers are actually there.

really concerned about the trade war. they see that their job prospects are going up. get into those at big gaps. drive across the country and see america. and that is a sign that there can spend a lot of money on the way. they look at recent gasoline numbers. they sent --dash spent a record gasoline number. if you can imagine you're actually a holiday. a lot of people expand the

holiday. you get a five day holiday. they came back in the middle of the week. at a level at which. there is no magic number. it really depends on the overlying economy and what's driving gasoline prices higher. this year for the great economy. if you get into a situation where there is a major disruption because of a war. that is when it hurts to the consumer. more more people hitting the open road. and spending more money and businesses.

this is a little bit outside your normal purview. china they just won't be turning the other cheek. what he make of that. the market as is rattled by that. and that global gasoline demand. we've already seen this and they may have the demand that's in a pullback just a little bit. with the trade war in the headline. the u.s. economy is doing very strong. if you look at it. it looks like president trump is actually winning the trade work right now. they are running out of things to do to counteract the trump measures. in fact there is a report that the chinese government thinks

they are in over their head. and even the president of china has been giving some criticism. that may be acting too abruptly with the president trump. i think because of that were to see china come back to the negotiating table once again. and some of those are being in the marketplace. they had been overblown. they haven't responded to bill's point. certainly the $200 billion that they are promising. it is safe to say that harley-davidson is not waiting around. they will move some production out of the u.s. and gm will be making chevy blazers now in mexico. all because of this.

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neil: all right, still keeping an eye on almost all 11 sectors. charlie brady, i think i'm right that that this is across-the-board selloff with talk that the trade talk is escalating here. so for the chinese have not responded in kind. they could do nasty things about all this, but it's not as if they are responding tit-for-tat. one hopeful development in the eyes of some that maybe cooler heads prevailed. you've heard that expression a great deal. the administration has confused the market. thinking at first it's called for the chinese to be allowed to

invest in technology stocks would be the chinese and later on they clarify it is not just the chinese. it could be others as well. maybe other european countries or gets confusing, but lake bourbon is here to sort it all out. what is going on? >> i'll try my best beard stories in "the wall street journal" and bloomberg saved that at some point this week according to the article is the deals were still a bit fuzzy even by the articles on admission that they would be an announcement from the trump administration that there would be a curve on the ability of chinese are companies that have a heavy chinese ownership to be able to buy companies they deal with pretty significant technology. the treasury secretary steve mnuchin pumped the brakes on all about. he put out a trade to raise the following. on behalf of the president bloomberg and wsj are fake news. the leaker either doesn't exist

or know the subject very well. statements will be out not specific to china, but to all countries trying to steal our technology. the whole concept of placing curves on investment restrictions of the late two technology really heated up within the last five days or so when peter navarro who aligns directly with the president as it relates to china and how to tackle china and trade appears on "mornings with maria" and throughout the possibility that this could be coming. listen here to peter navarro from last wednesday on the network. watch. >> the investment restrictions with the treasury department. the purpose of those would be to prevent china from coming in the silicon valley, paying a very high premium. to be clear, these are not businesspeople. they don't come in to generate cash for investors. the game is to pay a high premium and use those companies for strategic purposes.

>> navarra says it was proposed to the president. and now mnuchin essay and i speak on behalf of the president. pump the brakes a little bit as it relates to those two stories. by the way, the story that relates to harley david ben. i'm sure you've been following that over the last hour or so. when the administration eventually puts out a statement or starts getting pressed on this. expect part of variants are to be that they feel the terrorists from the european union as it relates to the retaliatory measures of steel and aluminum are illegal. >> amazing. thank you very much for clarifying a lot of that. mean while, and the new york stock exchange with some of the losers getting hit by all of this. hey, nicole. reporter: hi, neil. the losers are easy to find today to see the dow jones industrial average down 372 points. has been down 446. the nikkei was down three

quarters of 1%. the hong kong's hang seng 1.2% and in singapore you solve we did see the shanghai composite index lowest since 2016 in the hong kong's hang seng at the lowest level since 2017. some of these are the wrong issues pertaining to cash reserve. we are seeing selling around the globe and trade worries have been front and center as they notice the dallas down 1.5% here. the s&p and nasdaq. this story today is really technology in particular appeared to .5% loss as we look at some of these selling off facebook, apple, amazon of more than 3%. apple%. apple down two by 1%. apple has now turned negative for the month of june despite some comments from analysts about new products and higher price targets. microsoft netflix down six-point 3%. the worst day in two years for netflix as you see that selling. microsoft has turned into the red in all of this plans to bar

some of those chinese companies. maybe others from investing in our technology right here at home. back to you. trade your thank you very, very much. the approach seems to be given a double-barreled wallet to the markets. dennis gartman, "wall street journal" reporting. what you make of all of this? >> the market really doesn't like it. the concern is that the white house is almost waking up in a different world every single morning and that appears to be what it is like you're the market wants to trade the market economy. we have 20% earnings growth that will come out this next quarter. we have the highest earning asserts estimates in 25 years and all the trading right now is how it appears coming out of the white house, which is not what the market wants to trade on. tree into shelby.

>> the comment blake referred to was really interesting and i wonder if it's in response to china coming out and say that the u.s. wants to hit us, we will strike right back. china won't necessarily slap as many terrorists as we can on them. they do have a lot of leverage in terms of delayed licenses, ramping up inspections. it is very clear the trump administration wants to go after the key initiatives made in china 2025. china wants to be able to compete with the u.s. in areas that information technology, aerospace, pharmaceuticals, robotics. it appears as though the trump administration wants to pump the brakes on not because as we've heard time and time again for the trump administration thinks china is stealing u.s. technology in various ways. it is unclear at this point after the comment from secretary mnuchin that this should be a rule subject to china. it begs the question who also be subject to this.

stealing our technology. neil: i fully agree with you. dennis, let's say it does extend beyond china or even limited china. that's a huge pool of potential investors and proven investors who abandon a sector of the market that has been the most aggressive and rewarding part of it appeared when you make of it? >> the comment from secretary mnuchin i thought was supposed to be a nullifying comments come as something to make us feel better. i thought it was terribly damaging. it is not a question. so now we are in a circumstance where the psychology has changed. not a question about that. the psychology has changed dramatically. yes there's no question the fundamentals of the u.s. economy are very strong. i trade only for my own account and i must tell you i came in short and i've added to the short positions in the last 20 minutes. this is a dangerous period of time and you have to be less

involved in the stock market anywhere. this could get ugly. >> when you say short, what do you mean ugly? >> we are under the 50 day moving average right now about to take out the 100 day moving average. i keep a little average of 10 of the major stock markets around the world. it made its peak in late january. we have the chinese stock market down 20% and we are now negative on the year. this is getting to be something beyond a mere technical correction. this could get very serious on the downside. hopefully the white house will stand down. hopefully we will see cooler heads prevail and not go down a slippery slope of trade protection, but i have my doubts. neil: you know, in the past we've seen the markets rebound from the throes of a selling fit on a belief that aims to stabilize and history will bear itself out again and many of dennis' fears will not be

realized. they used a guess as the latest sign that the chinese have not responded with tariffs that the road or heightened the new tariffs of their own. they talked that they are not actually doing it. what you think? >> attorneys have been very measured. with 50 billion, 34 billion july july 6th. the chinese banks right now are easing regulatory pressure starting july 5th. a very measured response. they are thinking the same thing investors are thinking that this hopefully is negotiating tactic. i agree, if this were not negotiating tax can we know for certain is that happening. the market down a couple thousand points of these as we are fighting the world here. we are not just going after china. we are alienating our neighbors, the e.u. this is not america first. i am rooting for my own country. this is isolationism. this is not to me.

>> we are alienating a lot of our companies. harley david king has done a lot of production outside the u.s. and gm is making the blazers south of the border in mexico could not exclusively because of the terror thing but i suspect we are going to hear more of this sort of thing as companies race for the possibility this gets worse. >> right. a lot of companies and investors are frustrated because the white house is sending mixed messages about why we feel the need to penalize china and go after some of these particular type investments. one thing the trump administration is using is the power to crack down on these investment because of national security. that is in deep contrast to president trump's move on zte where he wants to tell zte, even though republicans in congress come intelligence officials and everyone says zte is a national security concern. generally there is a lot of confusion and frustration good

why is it okay to go after some companies and investments but not okay to go after others. generally what we are seeing our companies during their hands in the air and say we can plan around this. too much uncertainty and we will take our business and manufacturing elsewhere. neil: they have options. i'm wondering when you were talking about the short of it, i wonder where you are putting your money. do you like cash, the utility stocks. what you do? >> i own a few commodity companies, but on balance i'm going to be short in the market. probably for the average investor out there being less involved, and going to cash is not such a bad idea. cash at times can be a wonderful investment. you don't have to be 100% invested at this point. neil: you've made this money in the market and done well. just mimicking the nasdaq 100 what have you. would you tell them to sell?

would you tell them to collect and take your money and profits? >> meal, and being less long as the proper course of action. if you're smart enough to read options against which you have and put under what you owned. again, i don't think holding some cash is such a bad idea. b. 100% invested at this point would be an ill advised and unsavory decision. neil: what you think about? >> i agree. i think the economy is strong in the u.s. market is still the best place to be. i think this is a bravado. these guys bumper or chess. i think they will back off. the dominus in the past. the e.u. as a whole have problems in france. china has just entered into an official bear market. tons of problems with defaults and bankruptcies her. the u.s. is still the place to be. this is a bravado, hope it is. neil: need i remind you this is a professional wrestling.

but i will say this, that when people get each one thumping his chest, someone is going to regret that. >> sometimes is not bravado. president trump threatened to pull out of tpp and he did it. it wasn't just a threat. bumping the chest is one thing if it's used as a negotiating tactic, but when the president does follow through on things his detractors would call crazy, it shows he actually is -- >> it doesn't mean he's any less crazy. he's still doing stuff. >> i think people think you might just be bumping his chest and sometimes he's not. >> the point here is his base loves this. his base loves america first and he listens to his base than i think therein lies the problem. neil: i want to thank you very, very much. see how this all sorts. the white house trying to make it clear that whatever spending

limitations we are putting on the chinese, that it was going to include others. in that update on what was fake caused a very real selloff that got worse or is about is what happens when you start pointing fingers and saying they are just reporting horrible stuff about you. it is not lies. it is real. it is not exaggerated. more after this. ♪

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>> if you see anybody from that cabinet in a restaurant, at a gasoline station -- [inaudible] [cheers and applause] if you think you ain't seen nothing yet. we are going to win this battle on our side. the children for the side of what is right. neil: a few phone calls. we have not heard back yet, but i don't think it's a left or right thing here. we are following that and so is

the president who tweeted this on congresswoman maxine waters comments. congresswoman maxine waters is an extraordinarily low i.q. person, as was nancy pelosi the face of the democratic party. she has called for harm that make america great again movement. be careful what you wish for, max. the street strategies partner and national review columnist. this is getting crazy. it is getting really crazy. >> it is. i think i was very good of maxine waters to say. it is certainly not what michelle obama said at the democratic convention in 2016 when she said that although, we go high. that is i think what democrats should truly be listening to. michelle obama is not in the white house and she will be promoting her book, but that's

really a strong message. it is true that democrats went through this back in 2010 in the summer of 2900 were pushing for health care and had to deal with a lot of harassment at town halls. the thing is that needs to end. neil: i don't remember any cabinet officials and chased out of restaurants. >> yeah, i don't remember that either. i do think it has gone too far. the point about sarah huckabee standers been kicked out of the restaurant in lexington virginia i don't think was the right call either. the owner of the restaurant -- >> it is a growing long list. being chased out of a restaurant in ourselves, being, you know right outside her home in washington. i could go on to talk about many others. pam bondi with mr. rogers showing up about things. but they keep happening.

i am wondering where this goes because it is now jumped the shark so to speak. >> people fall of maxine waters. she's a progressive leader. in 1990 she first came to congress. i commissioned an op-ed on raising taxes on the rich. she insisted the headline be at this for 28 years and the party has moved than it used to be 28 years ago. i think sometimes she is a double agent for donald trump because this will drive voters to the polls like hillary clinton's disparagement of trump voters at the basket of deplorable drove them to the polls and 2016. neil: what happens when you have the life elijah cummings saying that going after standers here was going one step too far and she should've been allowed to stay at the restaurant. you could see how this could

easily escalate. a fox news personality shows up at a restaurant. and then you show up at a restaurant. >> i've been called a fascist at a restaurant. of course. neil: my point is how do you stop it? it's hard to dial that back. >> i think people lose an election after such tactics. neil: or not that's the trick. aaron, what you think? >> you are hearing from several leading democrats who are saying this is not the right way to make change. in fact, david axelrod who famously ran both the obama campaign is that his chief strategist of this is the right answer. you do need to see some leadership on this. i think there's a lot of different threads on this. one of the things interesting for your viewers to know is that companies are now deciding to take a stand. this is a small restaurant in lexington, virginia that did this. you see companies on a broader

scale start to take bigger stands on social issues and trying to push forward some things. we're starting to see a bifurcation of business and how that goes is interesting. the restaurant in lexington virginia might see an increase in their clientele that they're going to lose customers along the way. bigger businesses are facing that, too. where that goes and what business looks like in america going forward. neil: i don't know. i look at it as we are citing in targeting people because of their political affiliation or who they associate with are who they work for. how is that any different from targeting in the past based on their race? it's not a good name. no. we should look at it from the other side. chick-fil-a was pummeled in castigated viciously because of its chairman's views on gay marriage a few years ago. what if chick-fil-a had decided, just one store decided people

who call us names, people who protest outside a restaurant, we are not going to serve them. just imagine what would happen. neil: with the issue of the day. both sides we can calm down about this. take a chill pill. then there's the immigration over which no one is taking a chill pill. in fact, no one is doing anything to make sure it is less of a failed. more after this. ♪ ♪ keep your insights from prying eyes, so they won't be used by anyone but you.

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neil: i am telling you, and this is escalating. you don't have to be on the right or left to say wait a minute, everyone's got to bring it down, calm down. >> the borders a job with dignity. we treat people with respect. or regions go out there every single day and say these illegal immigrants that come across these kids better abandoned by

their parents. we saved the kid abandoned by the smugglers. >> zero-tolerance for adults, but when it comes with a mother who has a child, let's look at that very differently. there's ways we can use this instead of a blanket approach. there's ways we can attract that by exposing order. >> the president has reached out time and time again to the democrats to negotiate on taxes, obamacare time and time again. every time schumer and policy have rebuffed him. neil: always the other party. when they have more in common than you think i miss immigration issue, in fact they have a lot of similar proposals to do that. dividing lines tend to be about daca and the wall. the house to vote in a separate measure the probably one enjoyed congressional support. hope springs eternal, let's get republican congressman on that

in his own measure to address some of the migrant family separation. thanks for taking the time. as the separate from your own measures, sir? >> you know, what this is a circumstance that you're really describing i think quite well and that is a lot in the administrative procedures and even though courts prove the forest agreement do not really give us guidance when you've got 60,000 people at one time and you've got 83% of some 12,000 children that are without parents. it is a huge topic not only for wrath to take at one time, but really for us to understand how we are going to house this many people and what we are going to do. the president's stand of how we are going to ensure that we do not encourage this behavior is the key where we've got to go now. what we've got to do is to solve

this problem through passing a bill in congress and giving it to the president's desk for approval. protect the country and keep the circumstances from happening. neil: how do you do that then? >> h.r. 6204 family first act, which actually updates for the president, the administration how we think congress should pass a bill to handle the circumstance at hand. judges, more judges, but we have to use the circumstance we are ready now. we are going to change h.r. 6204. the standard for the judges make a determination in the asylum request. we have to take this to a standard that we are better able to understand it and quit making america the magnet. drain to the immediate cause would be more judges making

faster decisions. >> we've got to take the caseload in back it up. we've got to do with the circumstance, but we've got to do with long-term issues and that is the congress needs to do this week and i hope we'll do that. the president has to recognize and understand to give him the help he needs and the american people. >> he doesn't seem to be with some of the stuff you mentioned. he wants to deport a lot of folks first, ask questions later. i think some of the overtures made our mistake. sounds like you are pushing upstream here. >> i'll tell you i'm pushing with ideas that i hope the administration and the president would grasp onto. we actually have to gain control before we fixed the circumstance. right now we are behind the eight ball with 60,000 people. neil: know, a lot of your ideas to give you very sound and rational. we live in anything but times.

if the strategy now is the kind of go to how we had it before, families are expected to either stay here or get kicked out of here. is that the goal did that happen? now in the meantime the question is beyond their parents. then we've got to decide what side of the border these folks are in error process. we want them in mexico. mexicans say no company should be in the united states. what happened? >> they should be back in any country they are from to go to the conflict that is fair. not present themselves to be arrested to make these claims. once again, we will update the standard of evidence for asylum in a needs to change greatly. we've got to work through the backlog we have and we are authorizing judges to give the president help with a new set of laws that will make the standard

more applicable to real circumstance where we determine who is actually here under the asylum case versus who is here because they picked up the child and just came into the country. neil: not everything you want, but kind of everything we need. that's a good way of looking at this rather than never one walking into their position. >> we've got to come up with good ideas giving the president circumstances and the administration's the ability to stop the next wave of people. neil: you've got to stand behind him. >> i think the president given a chance will understand that we are not vague concrete. we are sure to actually help him in the circumstance. neil: thank you very much. good seeing you. the dow down 355. although i've got a think trade is the bulk of this as we moved in and out of this 200 day average.

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neil: you know, susan lee was on this. a lot of folks were not so-called flattening yield. i guess the argument is, worrisome levels. >> so is the stock selloff under way. they are selling out of stock and running into treasuries. as they do that, that means the yields on the ten-year note note are going down today, which is causing the spreader difference including the two-year bond is

narrowing. we are closing in on another other than year low. issuing ever closer to the redline down to zero. not a good sign. going below zero means the curve and birds. a bad sign for the economy in an inverted curve has preceded the last seven recessions and that includes back to 2008. but again, it is not unusual for a narrowing yield curve in this type of cycle we are and where you have a long recovery and the fed is hiking interest rates usually pushes up the two-year often causing this narrowing spread as well. but we have a yield curve at prices like banks or other institutions and then they landed out long-term. here's the good news. mortgage rates are usually pay enough yields of the 10 year and if it going down, that means your mortgages may not be rising as quickly.

we should point out today we are looking at the lowest 10 year yield since may of this year. three months back. >> incredible. suzanne, thank you very much. you are working a very long day. >> i should get paid more. thank you, susan. chief economist can pick up all of this. it is an interesting development the last seven recessions. of course we have this phenomenon in the past, but not always for a recession. would he think of that? >> it's always nerve-racking when you get in the yield curve. i developed a new way to forecast recessions using the inverted yield curve and also economic indicators. both of them tell you in a recession is coming. what i've done is combine both of those indicators as far back as the data onto your treasuries and 10 year treasuries and i find 100% forecasting track

record in terms of forecasting recession on average about 11 months before recession starts. right now the index of leading economic indicators has not had three monthly decline. it is getting tighter and right now as we speak, and has a 35 asis threat but the tenure hovering at 288. it is getting awfully close. if the kids were in the minivan, we would say we are on the destination but we are not there yet. neil: that is a good analogy. presuming 11 months away given ms. from a recession or at least a slowdown. >> yes. we don't have both of those indicators telling us a recession is coming. and by the way, you need both with the forecasting tracking record. in any event, when you do get on the yield curve by itself without looking at the other indicator, technically means the

recession comes about 18.3 months into the future. i'm not as worried, but if you want to be a stickler and look at the futures curve, it is already pretty flat suggesting things are getting a little bit dicey. i would rather focus on the traditional measure of the inversion of the yield curve and that hasn't happened yet. neil: let talk about more media like trade war escalating with the financial markets now. technology, what do you make of it? how real a threat is this to what has been a pretty giving market? >> i think it is a little concerning. i don't think we are at a critical juncture yet. but when i hear the chairman of the federal reserve saying there is already some anecdotal evidence that is starting to influence capital expenditures and certainly job hiring, this is still the soft data which everybody likes to look at,

they're realizing soft data impacts the overall economy which is a much longer lag than the harder data. if this really spreads out in so far as the federal reserve telling us so far showing that there is a little nervousness out there. but if this were to spread out a little bit and yes, this could be sowing the seeds for a potential slowdown in real serious issues moving forward. we are still in the early innings. by the way come you can't rule out the fact that are still away from early july when the next batch of terrorists will be imposed. we formulated truth between now and then. all these things we are worried about somewhat premature in nature. >> anthony chan, thank you very much. jpmorgan chief economist. good seeing you. ronald reagan got involved in

terrorist as well. a lot of folks didn't realize that. he later regretted it. set up was a mistake to have pursued the japanese at the time. ed rollins was there. up to th. the gig-speed network from comcast business gives you more. with speeds up to 20 times faster than the average. that means powering more devices, more video conferencing, and more downloads in seconds, not minutes. get fast internet and add phone and tv for only $34.90 more per month. comcast is building america's largest gig-speed network to give small businesses more. call 1-800-501-6000 today.

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neil: you know, in the middle of the trade worked interesting to see we've never been on a brink like this. actually we were. brink is too strong a term. ronald reagan did get tough with the japanese over this issue that they were dumping tips on our market. i had to learn that wasn't chocolate chips. it chips. as computer chips. a whole different worth the time. the president we are told later regretted it. they were better ways to handle this and it actually alienated our two countries for a while and he didn't like that. the reagan campaign manager on all of that. it wasn't keen on the move that he took. >> is pretty much a free trader. the chips were so important not to say having that account and he knew a lot about the tech industry. they were clearly dumping it. he knew he had to resolve it. reagan always had an ability and the thought process to sit down

to my point of view, we can find a common ground. when that doesn't happen you take other means. we can at least discuss what it is unique in what it is you want. here is what it is i need. you begin with a different dialog then you have today where you are part of the problem. a lack of clarity in what it is we are trying to do here and why are we doing it. neil: we were actually trying to narrow the trade. the issue was the japanese were truly dumping on our market and putting archives at a disadvantage. he just wanted that. even without you're going to have to. >> that's an important issue. the other thing he did is changed to a consistent policy. the motorcycles were being flooded, the kawasaki's and what have you. we at harley-davidson and they were about to go out of business. and so he worked very hard to

keep jobs again and why shouldn't americans be able to make motorcycles and ride motorcycles and this is the beginning of the honda, kawasaki, the whole nine yards. he really save harley-davidson and basically challenge them to go out and buy better than they make. neil: when they did. you mention harley-davidson and that is the company now going to move a lot of production outside the u.s. so, as you and i brought up before, trade were sometimes produce their own unintended consequences. where do you think this is? >> the problem is the other side has been through lots of wars. the chinese are very tough. and so, the idea that you now sit down and make a better deal is changed. once you start this coming better be prepared to stay the long haul. neil: what is the long haul?

you're not under the opinion the president are hurting more than we are and they need us more than we do. >> i argue we spent a lot of time. they are a proud people and uniquely as important as their businesses not like general motors often makes a decision. and apparently what happened in washington. everything is government and the corporate world. they are all in this together. i am not sure we are all in this together. there's lots of different. neil: blasé fair party we fair party would have to get used to some different rules here. maybe to your point of works out. maybe it doesn't. i wonder when you go back to ronald reagan, he always wanted to come across even if he got the better chip with tip o'neill the speaker that looks like you want something as well. he didn't want to humiliate anyone for things down even with gorbachev.

>> there is a toughness to reagan. reagan never, ever was mean. never disrespectful to anyone in all the time i was around him. neil: that was at each legislative arena. >> bring danny ronk zukowski over here and let them have a problem. even the whole dialogue of him and tip o'neill, that he respected the position and he basically respected the members who came on the other side and supported this. >> euros here in a different time and we live in a more fractured world and now they've been forced out of restaurants. there is sanders you heard about this over the weekend. did that even come close to happening when ronald reagan was in office? >> different times. he was not treated well by the media. he was not treated well. he was the most secure man i've

ever known in politics and i've been around a lot of people. he said to me one time, i was never a good actor. i never had a big starring role. he would talk about criticism. every time i made a i got criticized. and so it was never a question of yours had a sense of who he was and what he wanted to do for the country and that was very, very important. >> the numbers are picking up a little bit. what do you think about his handling of all the treatment? >> i think he's very determined. he's not going to go off on this issue. >> but is not consistent. >> part of it is he doesn't have the kind of experience in international trade by hotels and let happy that some of these businesses have had. neil: you think is not considering what he wants. >> that is kind of the divided group inside with different viewpoints and to a certain

extent, they've n h enough debate, the gun has gone off. we are now in it. neil: apparently there's more actions on this. >> we at finding of facts. at the end of the day, every president has threw for big decisions we have to make everyday in reagan reagan had a great ability to make decisions. i think in the case that this president is kind of hard to figure out what he wants and what decisions he's making. to a certain extent if the game is to go forward, then certainly he will articulate it. the big problem is you can always tell what is happening. there's so many mixed messages, and so many factions. we have north korea. we had tax policy. we have immigration here that is just every single day. there's no consistency. no two days in a row he had a great tax plan. now he's pushing immigration. two weeks ago was north korea. i think if there is any weakness

they are, it is a communication weakness. neil: and he listened to you, ronald reagan. >> no, absolutely not. [inaudible] neil: galbraith. thank you very, very much. ed rollins from a different back then. we too early to tell. we will have more after this. ... they appear out of nowhere.

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neil: all right, outside the white house, awaiting the

arrival of the king and queen of jordan, they're big shots so they get to come through the south lawn entrance the one for super uber dignitaries i'm told, anyway 324 points down on the dow maybe the king and queen with change things now to queen trish regan. trish: i'll take it thank you so much neil cavuto. breaking right now, everyone we're off on the dow 330, pretty big losses here, and it's in part because the president is doubling down on his america first trade policies which would put more pressure on china which has everybody very worried right now. we're going to talk all about that. we may hear more on these trade policies actually from the president himself this hour he's sitting down with the king of jordan who as you just heard neil say gets to go through that fancy entrance on the south lawn it's all happening this hour, i'm trish trish regan welcome to the intelligence report.