progress. ashley: bargaining chip? stuart: we'll walk away. i'm not suggesting that has happened or will happen. but you never know. we'll see how the market closes. down 300 right now. neil, it is yours. neil: how would you like to be huawei though? they hired a new pr firm today to handle all this mess that should go well. thank you very much, my friend. we're looking at that and the prospects of a trade deal with china might have been pushed off the main rails because of this kerfuffle. we're on top of that and weakening economic data, 32nd day of government shut down in this country with no hope in the near term that changing anytime soon. we're getting used to flight delays. people not being able to close on sba, small business administration loans. to call on fha-related loans because of a shutdown. we're getting used to big ipos that have to park themselves for a while because the

securities & exchange commission canned get the paperwork done because they're technically closed. we're focusing on those developments. we're getting the read from mitch mcconnell set to bring a plan to the senate floor hopes will get 60 votes. that might be an uphill battle here. would include the president's idea of getting funding for the wall also revisiting daca, something he rejected year-and-a-half ago. let's get the read, i think he is ready, fox news capitol hill producer chad pergram. what is going on? >> you talk to republicans on capitol hill think they can get to 60. all 53 republicans get together in the senate and you have to get a coalition of seven democrats. you might see doug jones, democrat from alabama, joe manchin from west virginia. you might wonder about democratic supports from outside of washington, d.c., virginia, maryland, do they have federal workers to get 60 votes. they have to go through two

rounds of 60, to get the bill on the floor, cut off debate down the road. if this goes through, i talked to one house republican earlier today, they were skeptical you could get a coalition of 30 or 40 democrats together, sort of like the reagan democrats, bo weevils and gypsy moths remember those terms from the 1980s to come together but at the end of the day is this about nancy pelosi and what she is able to weather in the caucus. if you get it through the senate, there would be pressure put on the house of representatives whether or not that could get nancy pelosi to the table, it remains to be seen, neil. neil: talking about the bo weevil day, 30, 40 odd moderate democrats who would be key in passing ronald reagan legislation. are there moderate groups there? are they hiding? where are they in both parties? >> blue dogs, moderate democrats is lot bigger than the ranks couple years ago. they really dwindled.

there is a lot of conversation about the liberals who have been elected, alexandria ocasio-cortez, rashida tlaib, so forth, the reason the democrats have control of house, a lot of moderate democrats won in battleground districts. you saw it in virginia, saw it in new hampshire, saw it in maine, you saw it up and down the board. that is one. reasons the democrats have control of the house. look at the group that went down to the talk to president last thursday. you had a group of problem solvers caucus of moderate republicans and democrats so they might be willing to talk. the other buzz up on capitol hill that has taken fire in the past couple hours, whether or not a week from today the president will journey to capitol hill to deliver the state of the union address. we understand there was a request made. there was supposed to be a walk-through last week, they made the request the administration did, it is in nancy pelosi's court. i spoke to one senior source up here late last night, said we are quote, standing by to stand by.

here's the one metric you have to look for to see whether or not the president is actually going to have this speech. it requires a joint concurrent resolution to pass both the house and senate. that is what you do when you're going to have a joint session of congress to have the president come up here, to use the house chamber for those purposes, have the house and senate convene in the same spot. that is usually fait accompli. not very sexy. nobody pays any attention. i made several phone calls to in fact it happened? i wasn't sure, usually this thing nobody pays attention to. if that happens, you can guarranty that the president is going to come. but there is so much pressure right now, especially among liberal democrats not to have the president come. if you do it in the senate, rand paul, republican senator from kentucky floated this idea, have him speak in the senate chamber. that requires a simple senate resolution, guess what, that is subject to two rounds of 60. unless nancy pelosi relents it

is a good possibility that president trump will not go to capitol hill to speak a week from today. neil: can he go to another venue? >> he can go to any venue i wants. you have to approve the concurrent resolution in the house or the joint resolution in the house and senate or else the gig is up. neil: chad pergram, senior capitol cap hill producer keeping eye on. we're looking like a lot of financial issues are driving this, international trade players, benefit from a trade deal. dupont, caterpillar, johnson & johnson, boeing, to an extent american express, ibm, microsoft, they're all the ones feeling the pressure right now. possibilities of a trade deal that widely ballyhooeded might be imperilled with huawei back and forth keeping representatives of that phone concern, that telecom giant in the united states for

questioning. there is not just one but possibly others involved. we should say what is rattling these guys is a slowdown. black and decker is plunging, leading to gloomier outlook. warning a downturn is not over yet. weakening number, china confirming what j&j forecast, things will slow down a bit, not recessionary, not super serious, not the rate we've been going. let's get the read from gartman letter and publisher, dennis gartman. "usa today" congressional reporter eliza collins and reporter joe durand. joe, your sense about slowdown fears that seem to be building, complicated by a trade deal that could be unraveling. what do you think? >> i think it is quite likely that what we're battling right now, closing at 1 1/2% current gdp growth or 3%. any hint slowing closer to 2% is going to be problematic for the

markets. we have had a nice recovery. we're up 14% from the lows. not unusual to give some back after such a strong recovery. what we're trying to do is find our sea legs. i think it is uncertain whether we're closer to six or seven is% earnings growth or closer to four or 5%, maybe 3% and it is uncertain, i think the more global you are, the more risk you have on being on lower end of the spectrum. small caps doing quite well. doing better in the pullbacks as well. i think again it's a push or pull right now. clearly global markets are slowing. emerging markets, most of the western world other than the u.s. appears to be slowing. we appear to be doing something a little different. you know. neil: eliza, on that issue, kevin hassett, white house economic advisor was on our air this morning talking up the possibility when this year is finally tabulated we'll have averaged 3% growth which a lot

of people dismiss which is proof that the world might have problems but we do not. and that will save the day. i know you're not a market analyst but that is the wind the president and republicans are always arguing is at their back. is it? >> we'll have to see. it doesn't help we're going into the second month of a government shutdown but republicans are certainly hoping the economy stays strong. the president wants to be reelected in 2020. his strongest arguement is a strong economy. that helped him, you could argue, gain senate seats and keep down losses although they did lose a lot in the house. but certainly a poor economy is not where you want to be going into 2020 re-election with a tougher senate map and democrats holding on to seats in the house. neil: you know i'm just wondering, dennis, when you look at the overall big high in the skyview of this economy and everything else, battles over shutdown, how long it will drag

on, notwithstanding whether or not we come closer to a trade deal with the chinese or not what dictates your market strategy? >> first of all i trade only for my own account. i put my money where my mouth is when i write. dictate what is going on in monetary policy first. what is the fed doing? i'm worried about the fed continuing to allow the adjusted monetary base to roll off. that bothers me somewhat. i watch the volume that is traded in market. on upside i turned bullish couple weeks ago, bought the market, liked it but i was very concern as the market was going higher, volume was consistently declining that bothers me. volume should follow the trend. as volume was going up, volume was falling. news out of china very discon kerting. i have taken defensive postures in the last half hour. neil: what are defensive postures for you? what do you do? >> i buy derivatives.

buy sds. by sh. by the negative, bearish etfs listed on new york stock exchange. neil: you had your, hedge right? >> i hedge a little bit. i haven't moved any long positions but hedged them up a great deal over the course of the last five hours. neil: when you say you only trade for your own account, sort of poo-poo it, you have gdp of most latin american countries. i will leave it at that that is a little bit of a understatement. the market ignored or run up long after it, as long as the government shut down stocks shot up. all major averages up double digits, i'm wondering, i know other factors are at play here but it is counterintuitive, is it not? >> it is because again it wasn't material but we're now reaching a point where it is going to start to matter. so i think we are now, if the state of the union doesn't happen, that will be the kind of

seminal event we'll say, we better start paying attention because you can kind of make it work for a month but after two months of not having those federal employees coming to eat at your lunch shop or buying goods at your store, it will start to bite in a way that has ripple effects that will not be able to be ignored. 20 basis points. neil: the real issue, eliza, when it goes beyond the federal workers, tough as it has been for them, looking at second non-check on friday, when all the ancillary businesses, mortgage industry depending on fha-backed loans, small business administration, small business loans cannot be issued everything sort of ground to a halt as this goes on and on, to say nothing of longer lines at airports. i think the pain in the neck factor is what could decide this? >> right and i think that is what we're really watching right now polling showed americans are blaming the president more than

they're blaming democrats and certainly more than they're blaming republicans but if that public opinion shifts, the larger, sort of outlying that this affects, that is who we need to watch, and that is when you might see democrats, so far they really said they're not going to negotiate. neil: yesterday, did they look at that over the weekend and since? he is at least trying to find some middle ground or people increasingly getting mad at both parties? >> i think people are getting increasingly mad at both parties i think what the president did he expanded what he was willing to accept. democrats promptly dismissed that. neil: right. >> there was something that the president didn't say on saturday part of this bill that will make it even harder for democrats to get on board which would make it so that people coming in trying to apply for asylum status in the u.s. are supposed to do that in hair home countries instead at the u.s. something democrats are not happy with. it would make some moderate republicans uncomfortable. so i think it is not a serious

offer from the white house that they really think democrats can get on board with but he is expanding what he is willing to accept. you can say he hasn't completely dug in his heels. neil: dennis, speaking to you guys, jcpenney, both shares are down 5% the company is struggling to become a sears, bankrupt, former grand behemoth in retail. is this a potential indictment of the consumer, maybe he or she is slowing down? do you play that into your market strategy? >> oh, absolutely. all data, all hard data is originally anecdotal, and anecdotal evidence is abundantly clear. if you talk to restaurateurs ask them business in last five days, seeing material decline in usage. this will continue. it will get worse. it is embarrassing to have the president and congress doing what they're doing, putting the consumer at risk. if this goes another week or two

the impact upon the economy will be material, not just not just modest it has been thus far. this could get serious. watch the anecdotal evidence as it comes out. it becomes the hard data later. neil: if you can get the data. if you can get the data. thank you, guys, very much. the dow down almost 300 points. not rush to quality or safety in the treasury markets i hasten to add here but the latest drama what they thought was going to be a good thing might not be. that the chinese and rumors we were going to get a trade deal or at least the framework of one might not materialize especially as we're trading insults with each other. even if we do, there is more pronounced slowdown. the imf releasing a report in davos saying you think it is cold outside? this global economic impact report is even colder. we have much more after this. did you know with vanishing deductible,

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? do we live in a moral world that allows billionaires? is that a moral outcome? >> no, it is not. it is not. a system that allows billionaires to exist when there are parts of alabama where people are still getting ring worm because they don't have access to public health is wrong

neil: and the hits keep on coming. alexandria ocasio-cortez saying billionaire status itself is immoral. the system that allows them to thrive by extension that is immoral. doesn't capitalist pig hedge fund manager jonathan hoenig realize it now? he turned over his entire check to the united states government to correct that. your thoughts. >> there would never be enough. there is never big enough sacrifice. 70%, 80%, 90%? we cannot leftists aoc have monopoly on morality. neil: when she has a symbol, aoc, think i that is something -- to be fair she is saying that 70% rate would kick in at 10 million which is two weeks of work for you. so what are you complaining about? >> the neil the point is, 70% isn't the issue. doesn't matter if it is 5%. morality is really the issue here. what is moral, a society allows

for billionaires isn't moral. what's moral is that society that allows people to be free, to pursue their interests, to keep what they earn. what's moral is society that treats people as end unto themselves, not means to an end for someone in wyoming with ring worm or whatever she was talking about. the a society protects people right to their own life. that is making america very unique. hatred for billionaires, keep in mind billionaires became billionaires became they create it, earn it. this hatred for billionaires is european and anti-american and so recent in our history. very disappointing. neil: we look at her, see her election of representative of passion for the party and where it is going but the real reason the democrats took over the house, 40 new entrants, 32 were described as moderate, some cases conservative t wasn't thrust forward by the extreme left, but having said that, she has hit a nerve with people,

more about setting up the tone and tenor for 2020. then how should republicans respond? >> well, they need to make the exact same moral argument aoc is making. they need to say, look, billionaires, we should be applauding the billionaires. we should be thanking the billionaires, neil. how did you become a billionaire? bill gates, mark zuckerberg, larry ellison, create values that millions and millions of people gravitate towards, betters their lives. that is how you become a millionaire or billionaire in america. by creating, by producing. aoc exemplifies this, hatred of success because of success. hatred of the good for being the good. they need to counter, you didn't build that meme with larry ellison, bill gates, did build that, they deserve it. their success is everyone's success. neil: you're right quite, you have to give her this, she is being looing to raise taxes on the rich and all, raise corporate taxes as well, by the

way so does incoming house budget chief, but there is a feeling here that look, i can't just offer medicare for all or free college for all with at least finding a way to pay for it. what we know, we crunched numbers here, this is not going to go do that, even if you tax the wealthy at 100%, leaving that aside, her message is the system is unfair. even so far announced presidential candidates are saying, not everyone is benefited from this boom that is going on. how do republicans answer that? >> well, right now, neil they answer it exactly the wrong way. they say, oh, yeah, medicare for all, great idea but we couldn't afford it. they give in to her basic socialist premise. we're all in it together. that i am my brother's keeper. even the president i think to his discredit makes the point that oh, don't worry, everyone will be covered in our system. that is simply not american capitalism, neil. capitalism is a system. it is only moral system that leaves you free. that says no, you're not here to

sacrifice yourself for the greater good, for your neighbor. if you earn a billion dollars, it is not because you stole it. because you provided that value. if they want to win, if republicans have to win, return to that basic principle. you did earn it. it is yours and you're not a cog in the wheel or chum for the greater good. that is the idea of the american premise they need to embrace. neil: very well-put, young man. i will put you down as maybe on congresswoman cortez. good way to describe capitalism, whether you like it or not, that is well-done. the issue in 2020 what will resonate with the american people. to "axios" reporter. elena, this is populist appeal, if you don't mind my mixing those word, that a lot of people feel they're getting the shorter end of the stick and the rich are enjoying this boom. we are record number of billionaires, record number of millionaires. they're making all the money, i'm not. people like the congresswoman

and some of these other who are talking about higher taxes can correct that. what do you think? >> i think that as we look at alexandria ocasio-cortez as well as a lot of new democratic members, a lot of outspoken ones are progressive and radical and discussing things like saying the system is moral, important thing to note they're only a small fraction of the party. i don't think the new members are -- neil: they can take over, i don't want to jump on you there. i remember emergence as george mcgovern for the party nominee in 1972, when you could argue democrats had a shot possibly taking richard nixon down. obviously water gate did that a couple years later. they went so hard left, it was easy fare for the republicans to say, you want this chris syness running the country? >> that is exactly what republicans are doing now. they're seizing on people like alexandria ocasio-cortez or

rashida tlaib made the impeachment remarks, trying to use that politically because it is helpful for republicans this is something speaker pelosi and other democratic leadership pointed to as showing warning signs, be careful on this pause such radical language could be politically damaging. neil: but it is passion. that is where the passion is. the passion of the party in '72 with democrats was certainly around george mcgovern. >> right. neil: we forget that. that sometimes that is something that is palpable but it doesn't close the deal for you. >> it doesn't and i recently reported on a story where i reached out to all of the new, the 64 of them, house democrats, and there were only six of them currently support impeachment. not to totally change the conversation. if we talk about this more progressive a bit moderateally left language, i think impeachment is the embodiment of that, only six of them said they currently support it. everyone else fell in line with

leadership. i do agree, she is one of the most popular. we had a survey in "axios" she is such as favorable, more favorable than senator chuck schumer. she is in line with speaker pelosi. alexandria ocasio-cortez is having this big star power and it is showing that people really like her. a lot of democrats really favor her. neil: absolutely. >> they are outspoken, they are getting a lot of the attention but it is important to note they are not really representative of the democratic party as a whole. neil: we'll watch out as democrats sort this out. they're not all in that camp of 70% top rate. but a lot are in camp of going after corporations, the rich, hiking their tax. >> right. neil: it will be a battle for the soul of the party, often is, either party. thank you very much alaina, good talking to. >> you you as well, neil. neil: you could be stuck on a plane stranded in ice and snow. wouldn't you find something like this a little taxing?

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>> europe has a negative growth and the united states is going to have a negative growth environment. i don't mean absolute negative. i mean slowing of growth in material way, close to between zero and 2% over the next 18 months. we are going to be in a slower growth environment. that affects capital flows. neil: that was famous world investor ray donnelly, talking to our maria bartiromo in davos. saying this isn't looking too ideal. no matter what we do we can't get out of that way, that is a problem. charlie gasparino is not in davos. we're happy to have him here. with a message a lot of these guys are saying, brace yourself. >> by the way that is one of the few places that didn't throw me out. neil: that you knew of.

sometimes we go there, we don't know whether you knew where you were. >> sometimes they wouldn't really announce they're throwing me out. they would just throw me out. it was great. neil: nothing like sun valley. >> no, no. listen, davos, just so you know, it is very 30,000 feet. they are focused on the world economy. no matter what people that watch this network or some people watch this network believe, we are not an island, okay? the united states is not fortress america. we are affected by global events. if you do trade and tariff wars, that will have an impact on the economy. what dalioo is saying, a lot of people are saying, if the world economy goes into the you know whatter next couple months we're be affected. neil: this notion that we would be hated for all the cash that couldn't find a home -- >> it will impact us. the fact is, the tariffs, that

trump put on, the fact he is not part of tpp, the fact he is more isolationist on trade will exacerbate the global slow down will hurt us more. they will go tit-for-tat. anybody that says that will not happen, doesn't understand economics 101. neil: people always salivated talks are promising. they will continue talking. if you're dealing with a slow down and it is pronounced slow down, believe me the imf could be wrong on a lot of these forecast, they often are, could affect what bang for the buck you get on china trade deal. >> if they give us some concessions it doesn't make that much of a difference t might make a little bit after difference because we're not in an absolute trade war with them but that will not make much of a difference. that is the negative side.

the positive side is okay, they better be right about this, you get this out of the white house, mick mulvaney, larry kudlow, kevin hassett, steve enough, mnuchin is over there and kudlow is not. neil: i didn't think anyone from the administration could go. >> i thought he is going. neil: i like it better when it is just the corporate business heavyweights, the politicians like macron is not there, merkel not there, i think you get a better read of the makeup of the world without politics when these guys are not there. >> i don't know, that place, unlike the milkin conference, that is a very hands on, granular conference where -- this place is 30,000 feet. you know, just -- neil: all big names, they're all there. they have pretty big names. >> they have a lot of fun swinging swiss miss. the point -- neil: you ran into swiss miss a couple years ago. >> i did. very cute lady. neil: sure. >> the point i'm trying to make -- neil: to a man and woman they're all saying this.

they're worried. >> this is what mick mulvaney would say, what larry kudlow would say, we just cut corporate taxes a lot. we'll get some bang for the buck out of that, so we're going to be okay because of our deregulation and tax cuts. neil: we'll be more than okay. kevin hassett is on earlier this morning, i feel better when he is on because he is always smiling. >> he does have a permanent smile. neil: that we'll grow 3%. that is pretty nice clip. >> that is if, if things happen according to them. obviously if we grow 1%, the problem that the administration has is that the deficits are going to widen out because they cut taxes. then that is going to get if we get in the slow growth mode, democrats whoever runs -- neil: you look who is in the race ace, "the washington post" went through up to 30 plus to could be legitimate -- >> i saw that. >> we focus on congresswoman cortez that she is representative of that, to a man or woman they all share, more government and higher taxes, not

just up to 70%. even the house budget chief coming in is talking about raising the corporate tax up to 28%. a lot is greasing the skid for 2020. how do you think the message will be received? >> i tell you from the wall street donors who i deal with, there is a lot of democratic wall street donors, believe it or not barack obama was able to become president because he had seed money from wall street early on. a guy that worked at blackstone, has his own shop, forming core, brought in dick fuld and larry fink from blackstone and they assembled a team that gave him money. the problem with the guys and gals running right now, exempt for biden, no one, they're so far left, they're even far left than obama. the core wall street guys believe they can deal with obama. neil: i don't think this party today could nominate a bill clinton. >> i don't think so. here is the one thing, wall street guys i talked to,

they're holding out for joe biden. neil: is that right? >> yes. they are not going to open their checkbook until they hear what he is going to do. if he goes -- neil: by the way if you raise a lot of money, all the donations we learned from barack obama, that can open the way. >> remember he had seed money from wall street to start. it created the infrastructure so they can go out, man the phone banks. neil: first to get it online and do that. that was pretty impressive. >> i know that. neil: you're a hater. >> listen what i'm saying. he was own hi able to do that because he had seed money from the rich fat cats. neil: i don't buy that. he had a lot of -- >> from wall street. neil: i think you're reinventing history. >> larry fink, blackstone, dick fuld from lehman. gary cohn from goldman who went to work for trump was one of the first obama supporters. neil: scored more small donations than any other combined. >> you need infrastructure. neil: barack obama. >> they developed the infrastructure. neil: not, telling you make noise on that level, why it

works -- you're off the to races. >> you need a infrastructure. if you don't have that baseline from wall street and financial community, it is hard to -- neil: start small. i don't think you did. you started small. >> thought big. i was with you from the beginning. right? >> right, right. we shall see thank you my friend, very, very much. meantime we're focusing on this market. we're down about 297 points. a lot has to go back to the slowdown concern charlie is raising and other people are raising at davos. another factor is at play, the on going government shut down. you heard from a couple analysts from this show. now it is starting to register. i doesn't know the magic of now, but maybe imperiled state of the union address or whatever. the offer we have still stands, that the president could deliver it hire or in the olive garden, thad's steakhouse. >> i favor tad's. neil: different venue ideas. more after this.

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neil: all right. dow down almost 300 points right now. it is all about trade. again trade threats, going after the huawei cfo again. if this sounds familiar, we're playing an old record, you have to bear us because it is spinning again and this one is spinning into a lot of trouble for this trade deal. edward lawrence here to connect the dots. hey, edward. reporter: this could complicate things. u.s. trade negotiators looking forward to the midlevel ministers come here. meeting here with trade representative robert lighthizer and treasury secretary steve mnuchin. today a spokesperson from the chinese foreign ministry implied the extradition of the huawei cfo could affect trade talks next week, quote, we strongly urge the u.s. side to immediately correct the mistake, withdraw the's order for meng wanzhou, and not a make a formal request to the canadian side.

she went on to say that the u.s. is abusing the extradition treaty that it has with canada. now all of this will be in the context of what happens with the strength of the u.s. economy. the answer for the white house economic advisors is excellent growth, that would be boosted in china comes through with a deal. >> as example we get a good deal with china, that is positive last year when there was a lot of uncertainty about china. fourth quarter will be 3% that's right. reporter: talk with china is getting tougher as we get closer to the date as they formally submit requests for the huawei cfo. that is june 30th. that is the same day for the minister meetings at u.s. they believe that extradition request will come through. neil: maybe they will recommend or go slow on this whole thing,

we'll get ate better idea on that shortly. meanwhile, stuck on a plane with nowhere to go, that is something we're going to follow. meantime former consultant to the office of the u.s. trade representative on this whole china thing. i did want to get your sense about how far this goes? because right now seems like we had the trade deal getting closer and closer. i think there was a belief in china neither ourselves or the canadians would intervene or try to cause any disruption with any huawei official, let alone the cfo, and now just the opposite. what do you make of it? >> well i actually think the huawei situation is the kind of sideshow. i think we, i understand how it happened. i think there wasn't a lot of planning but now that we're into it i think the united states has got to follow due process. i don't think we should be seen as this as vendetta against her

but after all there is evidence that she lied to banks in terms of covering up the dealings with iran. i'm opposed to the president intervening in a judicial process. whatever i think about the original decision to go ahead and indict her. neil: you don't think that would cause more after fury if we did take such a move? >> i agree. my point is, i think you have talked about the trade deal. i think those are separate issues. i understand why the chinese are putting them together. chinese don't care one way or another about due process. we should. while the administration may have made a mistake in terms of the timing earlier they think they have a case and it should go through the u.s. courts. neil: if we are going to, you know, ignore their kind of no so subtle strong-arming on this issue, which seems to be, look, this trade deal could be

imperiled if you keep doing this, do you think they would just freeze on the talks, not do a trade deal? would it be that blatant? >> well, look, it is not clear, as i say, this is a side issue. not clear to me they were going to do a trade deal anyway. my worries actually are, that the president is under such pressure either both in his personal, the near-term for him personally and also because of the things you've been talking about already because the idea that u.s. economy as well as the world economy may be slowing down, that we will actually reduce the pressure on china for the basic structural changes that we need. i think mnuchin and some degree kudlow's happy talk about the fact that they will buy billions and billions of dollars from us is really a sideshow. we're not still getting at most important things, the most important problems we have with them. neil: you know, claude, you know the chinese far better than i, but i do know this much, they

lie a lot, exaggerate numbers, exaggerate economic performance, they exaggerate a lot of stuff. so i'm wondering since they hoodwinked presidents going far back to bush senior, to his son, bill clinton, barack obama, maybe again with this president, how do we trust and verify stuff with them because saying you're going to eradicate the deficit in five or six years sounds good but you have to make good. >> you're not going to eradicate the deficit in five or six years. this is the kind of populist economic ignorance trump keeps coming forward with. i think his advisors kevin hassetts of the world know that would not happen, but if it happened it would happen in terms of domestic changes in policy here i don't see coming but i do think the basic issues that we have with china are the ones that should be on the table. we should not be deflected from chinese promises just to buy more soybeans or buy more wheat.

what will they do about the great firewall, keeping google, facebook, our companies and other international companies out? what will they do about the cybersecurity law which allows them to enter source codes for high-tech electronic companies? what will they do about closed sectors that do not allow foreign corporations, not just u.s. corporations but others to invest in china? what will they do about intellectual property theft? you talked about lying. xi xinping personally promised obama in 2015 that the chinese would no longer conduct economic espionage. they then turn over to their companies. we know now that was a flat lie. neil: many more to go with that. >> lighthizer, lighthizer is correct when he says that we've got to have, see that this is enforceable and we want you could, keep coming back to you on weekly or monthly basis, i have to jump on you. hard break comes whether we chat or not, my friend.

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>> welcome back to "cavuto: coast to coast." i'm gerri willis on floor of new york stock exchange. big disappointment with housing

sales well below market expectations of 5.2 million and 6.4% of november levels. sales down 10.3% from year ago levels. home building trading lower, hovnanian, pulte, lennar, d.r. horton and beazer. 21 s&p real estate index stocks are trading lower. higher interest rates, high prices seen as biggest culprits here. none of the country's four regions with a gain in sales activity. speaking to fox business described the downdraft as surprising. one of larger month to month declines, adding this quote it, could also due to people's perceptions that the economy is facing headwinds. stock market is volatile. that could have spooked some buyers. median sales prices were up 2.9%, to 253,600. vin -- inventories rising from

2.7 months to 3.2 months. back to you neil. neil: a flight stranded in canada. deirdre bolton with more. >> this is brutal. the newark hong kong flight the worst travel nightmare ever experienced. 250 passengers left newark, new jersey. had to make an emergency landing in canada instead of going through to hong kong. passengers stuck in a cold airplane on a canadian airfield for 12 hours. united said, passengers couldn't get off the plane because they couldn't legally get off in country without clearing customs. there were no officials working when the plane landed landed ind at 9:30 p.m. local time on saturday. one of the plane's doors, frozen by bitter subzero cold wouldn't shut that created another complication. "the wall street journal" reports that even at one point the captain got on the loud speaker, said, send ceo an email right now. tell him how mad you are.

he gave the ceo's email address. passengers describe freezing while kept waiting. united spokesperson said a sick passenger had required the emergency landing in canada. the return to newark was not an option. united also says it is reviewing the incident. i did call the company. i got in contact via email with media relations. they confirmed all the details above. also added, upon arrival customers received reimbursement, hotel accomodations and meals. we apologize to the customers because of experience. our captain and crew did anything possible. neil, delta had an experience like that, but was able to land in alaska. became less complicated. neil. neil: incredible. we'll have more after this. the dow down 291.

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confirmed officially yesterday they had their slowest growth in 30 years, three decades, but the -- sorry? neil: go ahead, i'm sorry. we have audio issues. >> that's okay. imf came out and downgraded global growth outlook for the year, global growth estimates second time in three months. obviously officially now the truth we are expecting a global slowdown to an extent. neil: all right. when you expect a global slow down though, the argument that helps the united states in the past, rebecca, we benefit because they're doing so poorly. cash finds a way to go to us, but there is a limit to that, isn't it? >> there is. what is really happening here, neil. i'm not saying i'm happy about it but i'm sort of happy that china is now sort of seeing the impact of the u.s. trade, you know, talks, what trump has been doing on their economy because i feel like they didn't take him very seriously at first.

i don't want to say i'm happy about it. obviously i'm not. i want the global economy to do well. we have symbiotic relationship with china to a extent but their made in china 2020 is an issue and we think this is impact from what president trump is done. neil: we're trying to make sure the get back the connection with jack mcintyre. i wonder what do you make of the chinese ability to make good whatever trade commitments they make to the united states? >> well, that is a tough one. you know, i would expect tough deal, a nut to crack so far. and so, the fact that they have been so slow to negotiate a real, true, solution would indicate that whatever they are willing to whatever they are willing to give up and they are actually willing to come to the table with, hopefully they will ask stick to it and honor it. we just have to be really cognizant. they want to move their economy

from a low-wage, low producing to a sophisticated manufacturing engineering like in america and that is a threat to our american way of life because it will supply our chief goods. i think they are taking this seriously enough for taking so long. neil: i apologize for the problems. jack, a lot of people are very worried that today is signaling, maybe the imf forecast, on these big money managers that we've got some speed runs along the way. despite the rapid strong start of the year, the best since 1987, we've got him. >> you're absolutely right. the s&p is up 14% off its lows for late december. that is a year move. that is a good year move. it's discounted a lot of good news and i don't think there's as much good news as their son,

you know, trade negotiations between u.s. and china moving the ball forward. that is slowing growth. i don't think equity should be off to the races. we're going to get our volatility. the global economy is slowing down. the u.s. economy is not an island. when they slow down, the u.s. was down as well. so it is a recipe for mobile title equity markets. trade to have you played? would you do? >> i like some things that'll our first encounter violence at the u.s. treasury. the u.s. dollar is going to be gained as the u.s. economy slows down. i think there's some opportunities overseas running symbian as a defensive position in the portfolio. again, u.s. equities offer value. just not here. you will build to buyer them at lower more attractive prices.

neil: rebecca, does that shut down have impact on you? the market performance with the s&p, a good deal of that cover the shutdown. in other words, stocks and averages a double digit as the government has been shut down. when you think of that? >> i don't think we had think we had much a concern until the new year started. people give the government a break and that it's okay were all taking holidays at the end of the year, but since the beginning of january and since the session started the people will take them more seriously. i think what we're seeing now is the economy, global economy yesterday. as it drags on 30 days now the longest ever, we should expect to see some growth, especially as the irs and tax return season starts happening and i know they said it not going to have an impact, but if they don't get their refund when they're used to, what will that do for the

floor sales and people get their those kinds of things. neil: is that moving the needle for you? whether the president can give a speech or you've heard it all. >> yeah, so we've kind of moved beyond the noise and i agree it's starting to hit the candidate aspect, hit the u.s. economy. will make our jobs a little harder because the economic data will not be claimed. it will be skewed by the slowdown. hopefully it doesn't sort of keep the fed's room remaining on pause, which i think they will. neil: that could be the silver lining in that. i want to thank you both very much. i apologize for the problems at the outset there. let's go to the former cbo terror of course he's been through maybe a couple of shutdowns in his day. this one is very problematic and i don't know if the recipe is there to end anytime soon. a lot of people are worrying about spreading its tentacles to

loans and delayed ipos and way beyond the 800,000 federal workers who are impacted to say nothing about a government contract tears. what do you think? >> i think you've got that right. direct impacts are typically very short in duration and relatively minor. what we see now is something that has dragged on longer than many people expect it and it pretty now. the kind the nuts and bolts of the economy don't take about very much. faa certifies flight to hawaii for examples. no because they're on furlough. it's starting to interfere with normal business decisions and not impacted going to get larger. right now we are something that half a percentage point in an economy that was flowing anyway and it's going to get larger from now. there are two big things coming up that i think the shutdown is important for. these bad politics made people wonder what happens when we get

to the debt limit? are we going to get passed by without a big distraction? what happens when we have a fiscal flood scenario with a snap at to the cops that are hundreds of billions of dollars lower than they need to be. the real impact in the politics here is on future decisions that might have to be negotiated. neil: obviously republicans have been pouncing on the notion that the shutdown one that caused me more than the cost of the wall the president wanted sometime next week. i might be off by a day or two. what did you make of that argument? it is what it is i'm a bloody thing? >> it's apples to oranges. we've got a construction cost for border security the president wants in some larger economic fallout from the shutdown. what it tells you is the politics here are sufficiently toxic, holding the economy hostage with an okay for both sides. quite frankly that was an important moment over the weekend when the president

offered to move slightly and said i've just been about, yes or no, it was some things you want worsen things i want to get my funding. that's normally how these things get resolved. you broaden out the issues under consideration and find a way for both sides to get something. neil: yeah, good luck on that front. the u.s. senate majority leader mitch mcconnell says the senate will vote on the president's proposal to the government shutdown to your point that was the one that included funding for daca, the children here through no fault of their run in this legal limbo as well as the $5.6 billion it doesn't have to be a while. is that enough you think? obviously a senate vote comes out. you need 60 votes for that scene a center-right democratic votes. you think you get that. >> i haven't seen seven or eight democrats raising their hand. it doesn't look like enough at the moment.

but we don't know and can't knows what's going on behind the scenes. has there been a counteroffer saying that not okay, but we can probably do with x,y and z. that's the healthy negotiation that's been missing and if this started up now that's good. neil: you mentioned kevin hassett a little bit earlier. economic adviser to the president who is still saying that this will all work out. whatever you loose in the and the gdp, pretty much you and i have chatted in the past like a hurricane. people getting back to the job. he is still confident when the numbers are in the last year we will have achieved 3% growth. higher than most thought, but it could flow from there. what do you think? >> i think that's exactly right. if you look at what we know about the fourth quarter, we've come in fourth quarter of 2018 euro for your 3.1%. that's my number at the moment. that's a fantastic year.

i'm a bit puzzled by the extreme pessimism that those are going into a recession. we will slow down and we will slow more rapidly because of the shutdown. the real issue for me is confidence. the capital expenditure plans and i worry about general consumer confidence dropping so sharply between december and january. the household sector has been the bulwark of the economy. there's some things worth keeping an eye on. >> grow quickly, remembering your friend, john mccain, how would he have handled a shot down? >> i think he would have done it only as a last resort. he felt quite strongly that we have an obligation to get past the differences of the type and serve the larger american public. the shutdown is not serving the larger american public.

it's the last thing john mccain would've wanted to have happen. neil: i remember ripping ted cruz. though who knows. i just wondered what your insight was i'm not. >> he would have been less than happy. neil: i like that. he might frame not a different way. thank you very, very much. they do have ideas about higher tax is, but the one that's getting all the attention is the one from a new york congresswoman with the top rate is 70%. will they crash the numbers are not? after this. so lionel, what does being able to trade 24/5 mean to you? well, it means i can trade after the market closes. it's true. so all...

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neil: stocks down, bonsai. right now we are down about 390 points. the yield on a 10 year note. moving a little bit lower. that's what happens when the price goes that. on an interesting footnote, around 2.5% we have less than a quarter% between money committed to that and money committed for 10 years. that is kind of file. not all the time. it's when they flip that you've got an economy that slip

servers. with this help or hurt in such an environment. a 70% tax rate to hear those espousing including a certain congresswoman in new york city that's just what we need. be careful what you wish for because they could pay not the kind of dividends you want. "the wall street journal" editorial board member, speechwriter to president bush. she is saying that, you know, this would apply only to income over $10 million, so what's the big deal that the rich should be able and happy to pay it. >> i say look at his absurd economically. no one really believes they would bring in more revenues, contribute to a better america. this is about punishing the rich. i give her credit for this. she says what a lot of democrats feel. neil: i absolutely agree with

you. >> i also give her credit for years i've been trying to find out when people say the rich need to pay their fair share and you ask, what is their fair share? usually the answer is more than it's never defined. now we are learning at 70%. neil: the old line, what you make? give us that. there was the day we have a 70%. very few people pay day, so they will heal hear back from democrats that not everyone will pay that. so everyone calm down. but i do see a trend that goes beyond that. coming in, talking about raising the corporate tax, maybe target the wealthy. that definitely in the mindset of people taking over in the house is a push to raise taxes because they are making a lot of

promises on spending. >> the promises on spending, no matter how high it is, you want to go further. you and i live in the people's republic of new jersey and we know what it is like they are. the governor is like looking through the south for quarter is like a housewife is desperate to buy. >> raise taxes. >> driving people out. people talk about the old days, it was such a less competitive world then. a lot of the world was reeling from world war ii. we have a lot of competitors per capital. what people say when they say 70% is the government will allocate this money better than the private sector. where is this money going to go if the people keep it? where is it going to go if it goes down to the federal

government. >> i just wish both parties were more creative coming up with ways to address the underlying spending as there are ways to take those revenues. so republican of those doing it now under donald trump. that is the other problem if you come to the conclusion or you have to raise taxes without looking at the underlying cost of government itself and why it's going up at such a rapid rate and unsustainably. >> absolutely. entitlements are the biggest part of that. that spending was not touched by budgets every year. the other thing we need to talk about, what is said to help a person of poor, working-class from the wealthy. what they really need and this is republicans should look at is what are the things holding people back? a lot of times it's an excessive government. requiring licenses to do inflict

terror breeding. we should be encouraging people and a lot of other jobs and opportunity in expanding the economy that are not necessarily getting the job at google. there's a lot of other ways to make money and a lot of obstacles for people like that. it's hard to run a small business if you're a tradesman there's a lot of things we can do to create more opportunity for people to rise up the ladder. >> a certain tenor and tone none of the presidential rising democratic party to know where their chips are falling. thank you very much. always appreciated. if you're wondering why we have a down graph, thanks be this "financial times" story circulating now that the u.s. is turned on china's offer to perpetrate trade talks. the "financial times" briefed on the negotiations that the u.s. has sort of said go slow.

that they are making progress on important issues, but they highlighted the difficulty in the "financial times" that washington and beijing will reach an agreement by march 1st. in other words, those are expecting something imminent and quick and substantial. no, no, no. the dow down 386 points. more after this. you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

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learn all you can... to help protect yourself from another dvt or pe. talk to your doctor about xarelto®. neil: all right, still keeping on top of what could be disappointing news for china's trade deal. we'll get to that in a second. though we are following fox con is considering moving its iphone production to india. susan emily has more and not. >> hey there, neil. the u.s. trying china trade work. some of its production over to india. the journal quoting people

familiar same bed it will include an india project for senior executives including fox con billionaire after the chinese new year which takes place next month. india looking more attractive because the ongoing trade war and it might also help apple grab a bigger share of the market as where it has a tiny sliver at this point of 1% of the market. reuters reporting a possible fox con investment last month saying they will invest $350 million to create 26,000 jobs and expand the line so they can possibly assemble our funds in the future. foxconn has planned an india for the likes of the chinese smartphone name. apple iphone's already been put together as well. the older successes by another company. india could actually help assemble the older iphone

asked models, which could then be pulled back into the market, but this is important without the 20% import tariffs on china stumbled iphone speeds told into the market. foxconn has considered moving to vietnam as well. china recently they know that it no longer a manufacturing place. as for apple they had to lower their sales guidance for the first time in 15 years because they aren't selling as many iphone in china as they want day. we did get in contact with foxconn. they are not commenting on a client or any products. >> thank you very much. now to the story that was rally in the market a little bit. the "financial times" reporting the united states is turning down his preparatory talks with lower ranking trade ministers ahead of the big one with the top ranking u.s. cabinet

officials in this country because they do not feel the chinese are making adequate measures to deal with that sort of thing and spying on companies rattle the market that yesterday, with the close on the martin luther king holiday had been hoping the announcement would be made. market watchers just thought on this. the just is don't hold your breath for a trade deal. >> i don't disagree with that. i think it's a mess. eventually we will come to a conclusion to this because china needs the u.s. more than the u.s. needs china and i tank the u.s. will win in this trade to. neil: what were arguing about is something the chinese don't want included in the talks. we have said they steal our technology. technology transfers, every company that sent up in china more or less six poses that

spreadsheet and how bad it. we wanted some safety and conditions put in place that would stop that from happening. it doesn't happen, so we are not going to go beyond us. we are not even going to talk to your vice ministers or whatever the level is before that. how bad can diskette? >> it could get really bad. but again, china will lose in this argument and the u.s. will win because china needs the u.s. more than the u.s. needs china. i think it will eventually get worked out. i think that's what the rally had worked out. the three-day selling climax that ended on december 24th. the market should rally back to 2600, 2650. overshot potentially favorable trade news. we are sticking with our

short-term cautionary stance right here in the market will pull back. neil: we've had a very strong january thus far. the market starts the year it has a good year. this is the strongest start of the year today notwithstanding since 1987. what do you think of how this year could sort itself out? >> i did a conference call with ned davis this morning. he thinks that yet -- he thinks the market sink so low sometimes here in the first half of the year and i do not disagree with that. >> to shut down. does that come into play in our 302nd day. doesn't look like we'll have this resolved anytime soon. cooler heads could her veil. voting on what the president offers democrats later this week in the senate. your thoughts on that and the market impact.

>> well, dipped in d.c. and i've never seen d.c. stood on its head the way house over the past two years. i don't think there's going to be a short-term solution to this. both sides look pretty dug into me. eventually that will get resolved and the economy is so good. earnings are still good. i would pay more attention to the december load indicator than the january barometer in the december indicator says closing in december is violated in the first quarter of this year, watch out. that was by my friend bhushan hooper. neil: when i look at interest rate going down in a tenure, for example most up. i am realizing that the gap between short and longer term rates is getting narrow again. doesn't always pretend problems, but it catches my attention. does it catch yours? >> i think people are looking

not the wrong inversion i should say. in my 48 years in this business, and it's always been the 90 day key bill versus the 30 year treasury bond. not the twos, tends. exactly. i don't think it's going to invert. >> when it's this mirror we pay a lot of attention even to overnight and money in a 10 year note that the fools game to be obsessing about that? >> i think it is. whenever one is asking the same question it's typically the wrong question, neil. neil: that such a good point i'm not going to add to it. good seeing you again. you call me down a little bit. in the meantime, the french are ending google. in fact, the highest they can find a company. but they are not done in either for that matter is europe. we will ask lane after this.

neil: when it comes to operations abroad and now under the new european data privacy law. hillary vaughn has more on this. >> this is the biggest sign for any company under this new data regulation gdp are. it could've been an even bigger fine. under the rules, regulators can find a company up to 4% of its global annual revenue which is $109 billion for google in 2017. french regulators are finding 56.8 million u.s. dollars because the search engine giant didn't light users consent before grabbing data they use for targeted ads under the new roles they follow strict data protection, which means companies have to explain to users how their data is

collected, how with being used and get permission to do it. google reacting in a statement same people expect high standards of trent errancy. we're deeply committed to consent requirements of the g dpr. studying the decision to determine. it is kind of crimes compared to what also got pulled in a day. is this just the start of a larger crackdown in the e.u. and regulators today that they are forced to these laws. >> thank you very much. blake burman right now on what has been happening with these ongoing trade talks joining us right after the break. the initial reaction was the administration wasn't going to need these coming to town to prepare for the high-level ministers talking to ambassador like kaiser and larry kudlow and

steve mnuchin. whether those talks are posed on in the talks at the big guys are still on. a lot of back-and-forth on this and hit the market hard when that looked like they were getting to rail. reuters is picking up blake burman making phone calls with the administration on this. after this. numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story. t. rowe price. invest with confidence. shouldn't mean going back to the doctoro just for a shot.

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neil: i think the group was to have a trade deal, do we not have a trade deal because were getting mixed out of the white house as to whether something might have fallen apart on the planned trade talks. certainly the end of this month, but some pre-talks were scheduled this week to blake burman with the latest from the white house. >> everyone we talked to at the white house with all these trade talks points us to one very important thing. at the end of the month, seven, eight days scheduled to be a meeting between treasury secretary steve mnuchin, robert lighthizer and their counterparts in china. that is still very much on. i'm slowly nothing as we stand

here at 1:45 this afternoon regarding that has changed. key players tell us that is the meeting about most crucial importance going forward short of anything happening between now and then. that meeting at the end of the month very much on and it's crucially important. there was a report a little while ago that a lower level planning meeting had been canceled. keep in mind with that there are communications all the time between the united states and china. what may or may not have been canceled was some sort of planned talks between them and was that never on the books. we are hearing both sides of that. but again, the important thing is the highest of levels or till very much a full go. we asked the white house for a response to all of this and here is what lindsay walters for the white house told us just a little while ago. preparation for high-level talks

with vice premier at the end of the month. to sort of step act big picture here again, the highest meetings taking place at the end of the month. what might have transpired underneath that we are hearing sort of different sides to this. the bottom line is the stuff that really matters at the top is though going forward. neil: talks are still going on. between mnuchin, lighthizer and leo. i know you want to be a fly on that wall. thank you very much for clarifying that. excepting that says maybe just a clarification that the talks are the lawn, even though we might increase our demands going into them. look at the read from the hill editor the hill editor-in-chief bob cusack. i'd be remiss if i didn't get

your take on this. we are getting different vibes as to whether these talks are promising or not. what are you hearing? >> i'm talking to people on wall street. the media coverage has been too positive that they're not as close as they say. you know that there is an incentive for both sides to get a visa. china's economy is struggling. trump is already thinking about 2020 in the markets are jittery now. what better way to calm the markets then get a deal. it is going to be tricky. in the next couple months i'll have some progress. there's a lot of skepticism out there. neil: the "financial times" at the beginning we wanted to make sure they knew in the lower-level representative come, the ones who get to meet the president and all of that, and you know, technology transfers,

stealing our secrets more to the point. the chinese say that's not going on so we don't see a point in talking about it. we wanted that on the table along with all this other stuff and ultimately the chinese acquiesced to that. i guess we could talk about it. what has it been? >> that's a big if. they're going to have to have some things on the table and some things not on the table at all. >> they'd have to admit to something they been lying about for decades. >> and obama struck a deal he said listen, and in paraphrasing here, they're not going to be good guys. the deal doesn't change to the iranians are. it's a different situation with china but there are some things they have denied doing and they are not going to stop denying it. >> was the latest -- don't mind my switching gears to the government shutdown. who's getting the blame? the president does have some democrats on defense here,

specially with mitch mcconnell pushing to get a senate vote on his plan to include the wall funding, the whole thing. but democrats might be feeling the heat right now. what is your sense? >> at a transplant is a step towards a deal. i don't think it's going to happen anytime soon. republicans for too long have been playing defense. the party that says no all the time loses in public pinion. trump changes dynamic by offering a deal that democrats and trump agreed to and fell apart last year. i think he's changed on that. now has he gotten any democrat like joe manchin. very interesting, but at least the skip something in smart to go bigger. they can get a small deal. they've got to go big. it's going to take another week to iron this out. now the democrats, a little bit playing defense they've got to

propose something now. neil: bob cusack, they need 60 votes for that. we shall see. thank you, my friend. you got it all out of the park. when he hears politicians talking about tax cuts and breaks and even tax hikes, and he had set out. he takes out a little trusty calculator and at that than see something. what he saw in kamala harasses plan is maxed. -- next even push us further? it could, if we took the time to listen. the most inspiring minds, the most compelling stories. download audible and listen for a change.

>> go to settle your differences are just the teachers poised to win their first strike in 30 years after being out for six days. union leaders reaching what calls for better benefits and higher pay based over what looks like five years if i am reading this "l.a. times" update correctly. it looks like the teachers strike there is about to end and it has widespread union support. we'll keep you did. meanwhile, in kamala harasses announcing yesterday she wants to be the first african-american woman to take over the white house in part of her plan addressed on martin luther king day is the idea that everybody gets a tax cut all the way up to the middle class. details about bulls and bears host david asman has been punching some of the numbers

he's seen. >> first of all it's wrong to call it a tax cut. it's a spending plan. essentially universal income. everybody deserves a basic amount of money from the government. single people making under $50,000 a year would get $250 a month from $3000 a year. families making less than $100,000 would get double that. $500 a month. they call it an income tax credit. you get a check from the government every month. it would add up to $3 trillion in expenses in terms of growing the debt we are to have appeared to $22 trillion debt. 3 trillion more over tenure. , but it is a spending plan. one thing the democrats don't seem to gab is how tax cuts work as incentives to grow the private sector. they're interested in growing

the public sector and this is another are spending plan. neil: she's been critical of donald trump that skewed heavily to the rich. she wanted something that heavily skewed, but does she have any tax hikes else anywhere? >> tax hikes are getting rid of the trump tax cuts. even then, the folks who have done the number crunching have found even if you take away the tax cuts. whether it is kamala harris come i don't mean to dump on democrats, or ocasio-cortez talking about a 70% 90% marginal tax rate, they don't do the . if they ever got in a position where these things would actually be in the form of a bill, then the congressional budget office would have to do the number crunching.

we would all be faced with the details. those who have done it beforehand these things don't make sense. neil: one thing that doesn't make sense to me, republicans or democrats, they are critical of about tax cuts or greaters alexandria ocasio-cortez raise taxes well to do. addressing underlying problem. entitle spending. the two parties have more in common on addressing these ills. >> or not addressing them. neil: or not addressing them. they agreed we have to have reform so the idea is money, money and not so much the money going out. >> there was proposal years ago, the balanced budget amendment t got so far, remember the supreme court said it was unconstitutional for a whole lost reasons we won't go into here. at least they made an effort. now they're not making an effort. you hook at the clock as we're

watching the stock market go down on china worries. look at the debt clock making its way up to 22 trillion. it will pass by that quickly. nobody talks about it anymore, there it is, the dirty secret not so little at all. it just keeps betting bigger and near democrats nor republicans are doing anything about it. neil: i always thought we were looking at your paycheck. >> yeah, right. neil: is it your sense, the kamala harris thing, one of the things we schalked about, at that end of society they will spend that money. that will good the economy. >> right. neil: richer folks don't. they don't spend, lower income people, middle income people would. so hers, i don't know if she made this argument would not be a debt-buster. >> there again we have evidence because it has been tried before. not only by democrats by the way but by republicans.

remember george bush had the program where he essentially gave people money that was supposed to stimulate the economy, in terms of giving the people to buy. they didn't spend the check. neil: glorified rebates. >> exactly. a lot of people used it. some paid off the credit card bills. other people banked it. it just had a blip in terms of making any influence on the gdp the only thing that affects the gdp in a big way as we've seen, is investment, in workers, in corporations have done since the corporate tax cuts. with all the big money coming in and making investments that really does stimulate the economy in terms of the productive side of the economy, not the consumer. everybody always says, the consumption is 70% of the economy but what really makes a difference is the productive side of the economy. how are you going to stimulate that? that is what makes the gdp grow. neil: yeah. >> it is talking about production. neil: that will be the battle royale, the message for 2020. thank you, david, very, very

much. >> thank you. neil: look forward to see you later. and hand off to my buddy charles payne. very clear that taxes are front and center in this upcoming race. charles: absolutely, neil. golly we touched every topic in the market and we're halfway through. will take it from here. appreciate it. neil: you got it. charles: i'm charles payne. this is making money. stocks are down unmyriad of pressures. we began with global growth concerns and mixed signals on china about a potential deal. aoc, she is at it again, the world allowing for billionaires, particularly capitalism is immoral. we'll get reaction from herman cain. deal he compromised to reopen the government, many say it is doa. we have developments in the last hour, maybe, that is not true. both side are fired up. impact of the shutdown