effect september 1 if that happens who knows where we go from there, but certainly, trade tensions are a major problem for the markets right now. melissa: down 767 that is not the low of the session. bulls & bears starts right now. david: market mayhem is the trade rift when china reaches a boiling point take a look the dow plunging more than 960 points at session lows before closing down more than 767 points all three major indices down about 3%, their worst daily loss for the year, the major sell-off coming after he just ended the worst week for stocks this year, all of this as china is now accused of weaponizing its currency, devaluing its juan and sending it to an 11 year low against the dollar. the president blasting the move more on where things go from here, welcome everybody this is bulls & bears, thanks for joining us i'm david: joining me on the panel, jeff:, liz peek

, gary kaltbaum and well the president is firing off this tweet, china dropped the price of their currency to an almost historic low, it's called currency manipulation. are you listening, federal reserve? this is a major violation, which will greatly weaken china over time. wall street not liking that tweet at all today, but how much of a beating could markets take? what do you think? >> look, i think they can go lower. look we've had a good year already. markets were up in the 20s. they were due, and there's some issues out there that have to be addressed. i ask myself questions every day why is the 30 year bond germany trading negatively. why? aways the economy there is sink ing and if germany is sink ing europe is. same with japan. i think economic growth is slowing down and the market sees it and what happened on thursday with the pivot from the president really donald trump trick and i must tell you the

dow is down about 1,450 points since, apple is down $115 billion of wealth since, and markets around the globe trillions so i suspect there's more time and price, but i also suspect we're going to get the fed talking in the next day or two, either saying we're definitely going to lower rates in the next meeting or they may lower rates in between because they address markets before they address the economy. >> there have been two things to gary's point that have been driving the market. one is how the trade talks with china have been going and secondly what the fed outlook is it was not at all surprising to me that when the fed actually came through with a quarter point cut, that actually markets traded off because that's very typical of wall street's reactions. now, markets are banking in three more quarter percent rate cuts, in the remainder of the year. i think that's probably a little bit optimistic, but look, what we all know and gary i'm surprised you didn't mention this is that president trump can

turn around this market tomorrow , by being optimistic about trade agreement with china this thing has been going back and forth. i think what happened today is that actually people got really negative about these two sides coming together for a whole host of reasons, and unless that pessimism breaks i agree with gary. i think it could go lower. >> yeah, look this is also a case so what's going on right now -- david: speak english. >> externality. it's like a storm that comes out of nowhere. it's not because corporate earnings have been weak. they've been way more up beat than most analysts expected a few months ago in terms of the s&p 500 so this is not the time to really head for the exits given that there isn't a real deterioration of what markets often trade on which is the underlying strength of the companies that they're made up of. the more astonishing today is how low interest rates sank to a

1.75 on the 10 year treasury. that is, that's some serious sell-off in a world that people thought interest rates were going to creep higher with inflation but i think for stocks right now and what's the fundamentals of these companies break down, you know, this is not a market that is on the surge of a collapse although it's definitely due for correction. david: what does it look like from bermuda i wonder? >> it looks crazy we're right in the middle between brexit and a trade war in the united states so we're in the middle of those in bermuda, but look, i agree with that the markets trade on fundamental, the economy, but you have these externalities as zach mentioned, nobody can handicap what happens in this trade war, we've talked about this every month, that a trade deal is coming. i just don't think it's coming and you add to that brexit which there has been every type of

prediction from europe's going back to the dark ages to all the way to europe is going to be perfectly fine and good. nobody knows how to handicap this and add to that what's going on, and iran just seized another tanker and what's going on in india when they dropped out of article 370 now pakistan said there's no peaceful resolution is possible, there's a lot of things going on in the world right now. thankfully the u.s. economy is doing very good. david: that's right no other place to go. >> it's about the only place to invest right now. david: exactly although gary you mentioned the fact that december we've come up since december it's true but at one point we were down 21, 712 on the dow, we'd have to drop about 4,000 points in order to get there again. is that where we're going again? >> i'm not there. i just think we go lower and what i do is every night i scan 1,500 stocks, 200 sectors, every country. things are pretty much breaking

down here and i'd say shorter term, we're a bit oversold. people got real pessimistic today on all my measurements so maybe we bounce but i think we'll go lower and i think we're going to have a situation of what i call the president who cried wolf. too many times over the last year, we've talked about it, where we hear trouble and the president says everything is great again and then we hear trouble that everything is great again and i think markets are getting a little winded to that especially when we come out of the g20 and there's not going to be any more tariffs and markets are all well and good and acting fine again, and now we get it again, so if the president comes out tomorrow, which by the way i think could happen and say oh, i just spoke to xi from china and we're back on track and not going to do the tariff i think the market rallies but i'm not so sure it's going to be that big a deal because it's worried about the next time. >> i think it still will be a big deal, gary but i want to pushback a little bit on john's comment that trade negotiations

have not been going back and forth. in fact over the last year china has made any number of concessions which led to optimism that they were ready, they were going to back off on that. they were going to allow a lot of financial services companies into china. they actually did make some moves that were pretty encouraging and then in may, it all broke down. i think what we saw thursday was president trump just really being angry and frustrated, that the chinese are simply holding their ground, and i think that hong kong is a big deal here. i think that xi cannot afford to be looking weak internally in terms of how hong kong is striking back at beijing's authority and also in terms of its negotiations with the u.s.. i think that's part of the problem and gary, to your point, as we all know, he could make an announcement tomorrow and i think it still would move markets. >> liz i respect your opinion but i do disagree with you. i don't think you can name one thing that china has done that

they've actually followed through on. >> credit card companies then, for example. >> chain is just killing it. they are building out the soybean infrastructure out of brazil. we build-out our farmers to $28 billion. they're saying the right things but not doing anything. i think china is just killing the clock seeing what's going on in the u.s. and the problem is president xi overestimated his hand, and president trump has overestimated his hand, that the chinese economy is deteriorating and this does not lend itself to an off ramp where we can get out of the trade war. david: we're going to talk more about china coming up but i just want to ask zach. we have been in a bull market for a record period of time. i'm just wondering are we entering into a bear market right now. that's a 20% drop from the high over 52-week period. >> right but you reference what went on at the end of 2018. david: that was a mess. >> which went into bear market territory for the nasdac and a

major correction so if you look at the past year you had a really strong seven months into 2019 but a terrible last end to 2018. its been a relatively flat market for more than a year almost coincidental by the way with what's gone on in terms of the trade war. there's been money to be made, but also money to be lost. i think we're more in a pause where a lot of these political issues which none of us know the outcome of. it doesn't particularly look good right now, are going to have a huge bearing but there is one other factor to keep in mind which is in a world where there's a lot of money that looking for yield or looking for a return with interest rates this low and economies this bad the u.s. markets still end up looking very attractive even with all of this noise. david: compared to negative interest rate anything positive is good and we're a little above positive. good to see you gang, we've got more coming up 31 people have tragically lost their lives as a result of two separate mass shootings this weekend, but could at least one of them have been stopped if we've been more closely monitoring internet hate

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david: as the country reals following two mass shootings this weekend police are looking for a motive and focusing on the el paso shooter so-called manifesto, and specifically, on that fringe form on which the manifesto was first posted. now this is the third mass shooter to post on that site, before attacking the shooters at the christ church new zealand mosque shootings, and the california synagogue shootings also posted there. joining us is cybersecurity expert morgan wright, to tell us more about what could if anything had been done. now morgan cloud flares that is the site that hosted it and they shut down the forum for now, but what more could be done to regulate these smaller sites that are out there? >> yeah, david this is the

question that is going to take, it's not a technical question. this is a political question and a policy question. as fast as you take it down, something else will pop up and it'll become the site for that. you take that site down it on the internet why because the internet is open and available to everybody. what we've got to get back to doing is saying is there a way through either one using intelligence and information that you develop these shooters like in parkland remember tips were received on the parkland shooter it just got lost and wasn't delivered so how do we use artificial intelligence, and do this in realtime but it's going to be very tough. do you know why because people then quit posting and wait until afterwards and post it so david this is probably one of the toughest questions i've seen my friends in law enforcement intelligence handle and there's no easy answer to this. >> i wonder rather than thinking about this in terms of censoring or pre-censoring speech other than approximate threats, i'm not sure we would want to empower any regulatory agency to be able to take stuff down even if it's a hateful

expression of a manifesto. we have a long tradition in the united states of defending speech that we find abhorent and i don't nowhere you would even draw the line unless it's very clearly someone saying i'm going to do x and people are going to die. we do not protect that kind of speech but how would you draw the line? >> i think you hit upon a great question and this is where we start looking at artificial intelligence and a common set of indicators that says look we have a terrorist watch list and the money and anti-money laundering and lists of where if you do certain things you get on there. so if we get to the point and the fbi actually is in the process of releasing a proposal to do exactly that how do we get realtime or near realtime information on social media so we can look at it for terrorism and crimes in progress but i agree the last thing we want is some agency telling you what the to say as opposed to what you said is criminal now let's respond to that as quickly as we can. >> so morgan what really is criminal is an actual threat. if people gather together and threaten some group or some

institution, that is something you can go to jail for, i believe, isn't it time for maybe the regulators or the legislators to come up with laws that make the internet sort of comparable in terms of law enforcement legality because that seems to be missing. i spent 18 years in law enforcement did a lot of work with the intelligence community . it would be great if things came with a red flashing light that said i'm about to commit a crime and here is what i'm going to do this is fundamentally a policy question once you figure out the policy how do we use technology to accelerate the implementation of that policy but i agree its got to be a law. its got to be a regulation not a whim of a company of a facebook of a twitter or youtube that arbitrarily decides what's free speech or not. that's a government responsibility. >> morgan, the whole day today, morgan we were hearing one side say video games bad, the other side said video games doesn't cause anything. all i know is i've watched a couple of my godsons play some games i could not believe what i was seeing. where do you come down on that,

and where do you think government comes down on that and where do you think government is going to go headed with that? >> look when i first started in law enforcement, in 1982 date myself, the worst kind of games online little airplane games and i played those, you know the duck game you shoot the duck, mike tyson boxing. we've come far to where it's so realistic we've desensitized an entire generation of people saying shooting something pulling the trigger there's less effect to that. if hollywood wants to make a statement quit being in movies then that glorify violence or the killing of people and have these stars quit taking roles and start making other movies but the reason they do it it's unfortunate why because it still sells. >> morgan thank you for joining us. one thing that local law enforcement officials have said before we've heard on this show is that the last mile is missing right now. you don't have the information to the local precincts that you have from the fbi and from the central intelligence agency. how do you address that and is that as important as what we've

heard from certain law enforcement officials? >> it absolutely is. i'll tell you the chief in dayton has been a long time friend of mine he and i sat on the community police committee and he's got one of the best relationships with the community that you could find anywhere and that last mile, it's what sir robert peel said when he invented the london metropolitan police. the police are the public and the public are the police. we're all in this together. that last mile isn't about technology it's about policy and community and being a common the and working together and when there's something out of whack in your community it's having the law enforcement to report that knowing they will use it judiciously and correctly. we don't want this to be an over arching censorship and 1984 thing but we've got to do a better job of sharing information between the public and police to identify these threats sooner rather than later david: i wish we could convince hollywood we're all in it together, morgan you're the best thank you very much for being here. appreciate it. >> you bet, david. david: trade tensions ratcheted up as the president slams china

foreman in you lating its currency and now a new threat from china against u.s. agriculture and our farmers in general. a live report from the white house, coming next. with sofi, get your credit cards right- by consolidating your credit card debt into one monthly payment. and get your interest rate right. so you can save big.

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china, agriculture specific. that plan now may be suspended. this comes as president donald trump believes that the chinese are allowing their currency to be devalued. he's calling country a currency manipulate or on twitter today. each of the four tweets the president made used the term " manipulation" for china handl ing its currency. this has money headed for safe harbors and the bond market dragged the dow down and this also has retailers very concerned and associations concerned. in fact the association of american apparel and footwear says they feel pinched in the middle. >> we can't deal with this. we have no way to deal with this , and we honestly feel like we're pawns in an international chess game and we're going to get hurt and it's going to hurt the economy and now it's showing up in the market, so we hope that the president will see the light of day and stay away from the consumer, because he's headed in our direction.

>> at the last face to face talks between the chinese and u.s. delegations, sources tell us from china that the u.s. , the chinese will not add back in any of the concessions the u.s. says that they deleted from the agreement. those sources the chinese sources also telling us that china will not change their laws , based on a trade deal, and there are signs now that china's pulling back, the tone on both sides have now hardened, and that is at the heart of what's drawing or pulling down the market today more than 760 points, david? david: edward thank you very much so how far is china willing to push this trade fight with the u.s. and what's our next move for details, trade advisor for the department of agriculture joining us now. it gets you really under your skin when you hear them going specifically out after our farmers. they've been through so much already now. what is the next move for either side, tom? >> well look coming out of the g20 summit several weeks ago i was on liz claman's show and i

said i think we have the farmers were the winners at the g20 and we're going to chip away at a deal and xi and his people had promised president trump that they would start ramping up purchasing agricultural commoditieses well something happened between now and when steven mnuchin and ambassador lighthizer went to shanghai last week. what that is we'll never know completely, but i think, yes, sir? >> i'm sorry i didn't mean to interrupt you, sir. thank you very much for joining us on the show. i grew up in farm country in west texas. farmers want to farm. they don't want aid. you know very well, sir. we've already billed them out $28 billion and if this trade war continues and i understand president xi backtracked on that he's done that several times, sir, as i think everybody knows. we're going to have to build-out our farmers again next year. are we notaries being a significant risk of doing long term structural damage to our farms by extending this trade

war? >> well look i think nobody knows that better than the president. he's also possibly walking a tight rope of risking his election. look, if you're from texas that whole part of the country was red and went for trump. they bought into the president's policies, but the question is how long can they withstand los ing probably their major overseas export market, especially for soybeans, corn, sorgum and some of those products so yes, they've been patient. they've been happy and they love the president's message and they are in his pocket so to speak or in his corner for the upcoming election but the question becomes how long are they going to patiently stay there, and the president's walking a tight line right now. >> i think there is a real question of without any sense of an end game, and without any sense of this is not going to get worse before it gets better, why wouldn't one place any faith in what the president is doing?

it seems to be many of these have come from us first. whatever has gone on on the other side, and you know, it would be extraordinary if the chinese government did not respond to 10% tariffs or 25% tariffs. there's never been a country in the history of the world that's faced with a public assault, does not get its back up. it just doesn't happen. >> is that a question? >> no president, no question, no president in the past 25-30 years has taken on china and trade, okay? we've all known how china has operated, almost 50% of the major corporations stayed on enterprises. china controls all the banks. china is a currency manipulate or this is no surprise. xi didn't want to hear it publicly today in four tweets but what the president is saying , we've all known. look a lot of us grew up in the post-world war ii baby boomer era when the stuff the only

products on the market were japanese toys and they were terrible. japan has come a long way. well now china is the driving economy. so look, and this is something i wanted to say today is the most important thing to xi is saving face, and respect and honor within the communist party and amongst his people. he doesn't have to face election in two years the way president trump does. he's like a king. he could be like prince charles, he could be king for life. >> tom not to interrupt you but question for you. he does have to face consumers. he does have to face the chinese wrath in case the economy really torpedos there. what is the effect on consumers of shifting all their demand to brazil and other sources which are, i think, higher cost, and devaluing the currency which also makes everything more expensive in china. isn't that going to be some dragon their economy? >> it'll be a dragon their economy but he controls all the

media and communications. >> sure but they aren't incens able of that. >> well they are to a certain if you've been to china you can't get out on the internet. there's only one newspaper you can read. you really can't find out what is, i think, the lynch pin in this and he's got to be very careful is what's going to happen in hong kong. he never played the cards going on in hong kong. 3 million out of 7 million people, and they demonstrated again this week in hundreds of thousands of people. he's lost face in hong kong, and now a weak, you know, whatever she is, presiding officer, so if that blows up he's in trouble. david: well tom you're setting up our next segment for us and we thank you for being here because we're going to be talking about hong kong, great to see you, tom. thank you very much for being here. appreciate it. police as tom just mentioned cracking down on protests in hong kong, which demonstrators halting the city's air, train, and car travel, and claudia rose tte covered hong kong for

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david: hong kong paralyzed police clashing with demonstrators firing tear gas in crowded streets protests leading to over 200 flight cancellations , roadblocks, major subway delays all of this as china is warning the u.s. to stay out of what they call their business. here now is claudia rosette, she lived in and covered hong kong

for the wall street journal and she's now foreign policy fellow at the independent women's forum claudia thank you for joining us you were actually at the massacre back in 1989. does president xi go that far in hong kong, what do you think? >> i wouldn't rule it out. i think he would prefer to do something less spectacular on camera but i wouldn't rule out any brutality on the part of china at this stage. >> claudia this is gary kaltbaum. i've been to hong kong many times it's a magnificent city, great people. they've been living under something called one country, two systems. that was supposed to last to 2047, where china basically is on the side and then in 2047 what seems like they're not even hiding themselves any more. it feels like this is going to get worse before it potentially gets better. are you in that same camp? >> oh, yeah. china has already been squeezing the life out of the freedoms of

hong kong for years and this year has been absolutely outrageous. it's overwhelming. >> claudia question it's liz peek. thank you for joining us tonight how do you see the crowds in the streets of hong kong compared to where maybe i'm wrong, but seem very young, student-centric et cetera. what is the difference or what are the parallels here in terms of whose actually out there protesting? >> actually in both cases, it went way beyond students. it went beyond that, it was everybody that was why the government felt so threatened and in hong kong it's the same thing. the students are the most sort of interesting on camera, but i was there quite recently and you seen everybody, there are grandmothers out there, people with their kids in strollers, young people, old people, middle age, the republic demonstration by civil servants. this is actually a society in hong kong that it's an incredible defiance of china's

tyranny. >> claudia, i think you compare this to totally speculative. there's a huge difference from the perspective of beijing of millions of protesters gathering in the forbidden city right next to the center of government in china in beijing, and protests in hong kong which has had multiple stages of protest over the past 10-20 years this one being particularly acute, but not the only time, so i think we should back off the comparisons at least until they're a little more evident. >> i wouldn't say that because i think china is, it is not going to let this to its tyranny stand. they have insulted the chinese flag. i think is the reason and china 's trying to do something, hong kong's people are fighting back and they see this as their last stance for freedom and it's

a city full of freedom-loving people is what it was built on basically and i think if it comes for a showdown, and i do think that's coming, china may go ahead and kill people. they're not shy about doing that and i think you're seeing other times right now that china's prepared to take a hit over this , so one more thing. they paid a much lower price than the world than we like to think, and my guess is that xi-jinping might take an immediate hit but the world would still move on so i wouldn't rule it out at all and i would speak up now to say that we must warn china not to do that. >> claudia they paid a very low price, but they paid almost zero price for the province where they detained up to a million muslims. china has just gotten away with this. they don't have diplomacy, it certainly doesn't seem like it, and if that is the case, which it sounds like i think that you agree with that, what happens in

hong kong? >> it's going to be brutal and we don't know whether it will be the people, whether it will be via the police have already been stirring up a lot of violence on their own account who have been using pretty hard tactics, we don't know whether it will come through a round of risks which could also become horrible friction and further uprising but china will do something. china is celebrating its 70th anniversary as a communist state on october 1 and almost certainly they want everything cleaned up and quieted, so i would worry greatly about the length that xi-jinping will go to and remember, he's taken a much more brutal turn inside china itself, in recent years, since he took power. david: but claudia just to put a fine point on your experience for those who didn't read her dispatches, you were there in the square.

you saw people, students getting shot. nobody knows what happened better than you do; however, hong kong has an open window to the rest of the world. it's probably better covered than any particular city in asia right now. if they come out with that kind of brutality, there is going to be a price to pay. they are now in the world trade organization, for example, and if you combine that with their currency manipulation they could get kicked out of the wto. >> they could, but my concern is that after that that wasn't what the world did to china. sanctions were briefly -- david: well china wasn't in the wto in 89. >> it had most favored nation regulated trading status with the u.s. that was not removed. they just carried right on. >> yeah, don't look for a backbone from bureaucrats that's the bottom line. zach we have to leave it alt that. meanwhile, could a recession be

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bill maher spoke into my goodness gracious. david: the fact that he doesn't give a dam about the rest of the country he thinks it would be great if it got rid of trump. >> oh, he's such a cute man. look i've heard that before. i've heard it plenty of times and look, they get away with it. it does not matter and it's unfortunate, because if we go into a recession, all heck does break loose so i think there's a chance we will go into recession , we're way overdue, the fed has been pushing on a string, i think and more importantly, economies around the globe are really heading south in some of our numbers are starting to look a little suspect so watching closely. david: but zach i want you to chime in on this and listen first to what maria bartiromo said about the comments of bill maher. let's play the tape. >> he really should be ashamed of himself. recessions can really hurt. to say "bring on the recession" shows a complete not caring for

the rest of the country while he's sitting in his post making millions, making jokes, on television. not everybody has your situation david: what do you make of that , zach? >> look i think whether or not bill maher is making a comment that people find objectionable is much less important than whether or not we are heading into a recession in 2020 based on a trade war and other fundamentals globally that are weighing on growth. the one thing i would say that that though is economic growth is 2%, 2.5% in the united states or 1% in germany. we're not what we were in in most of the latter part of the 20th century where you had 3, 4, 5% economic growth and a recession of 2-3%. recessions now and our economic growth cycle are much more modest. it doesn't mean it's a good thing or that it's to be wanted. it's that the depth in which we're likely to shrink is a much more modest one than it was for much of the 20th century.

>> you think it's okay to hope for a recession as long as it's a tiny little recession? i completely refuse that. >> no, i said i don't think it matters what bill maher says. i think it matters or not we're heading into a recession and my point is we should be talking about what's going on in terms of the fundamentals of the economy and not some diversion about what ones talk show host and what another talk show host says in response. >> still the reality is that leftist politicians across this country are hoping for a recession when chuck schumer weighs in and says yeah, we really need to be tough with china, i actually suspect this because he thinks that the may hurt our economic growth. you can't tell me that democrats are not basically hoping that between now and 2020 the economy doesn't cool off, because otherwise trump is re-elected in a landslide. >> but you're talking about the greater good here. i don't want to give bill maher an excuse here. bill maher is a very talented guy. i disagree with him about

wishing for a recession but what he's saying is trump is such a threat to the world that a recession should be worth it and also starting a trade war with china building out our farmers losing the contract for the foreseeable future because it is the greater good. i don't agree with what mr. mahe r said, i understand the sentiment behind it but i don't think we're going into a recession. we have wage growth, full employment, we are a long way from going into a recession. i hope this trade war doesn't get us there but right now it doesn't look imminent. david: let's hope your right. meanwhile it's not just wets it individuals in the northeast now notable financial firms are seeking warmer weather, lower taxes as well. coming up could one florida county become the next financial capital of the usa? hmm. exactly. liberty mutual customizes your car insurance, so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection.

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david: fox business.com reporting more than 70 financial services companies have relocated from the northeast of the united states, to palm beach county, florida within the last three years, now palm beach county has a 5.5% corporate tax rate but there's no corporate tax on limited partnerships and florida has a zero tax on personal income. as a result, many firms, primarily from new york, boston, and connecticut are making the move, while those locations of course are heavily impacted by the $10,000 cap on state and local tax deductions but they have higher taxes so could southern florida be america's new financial capitol? >> well wealth management firms are moving to palm beach because that's where their clients are moving and following the money and it doesn't come as any great surprise. there is a huge exodus of people from new york, from connecticut as you mentioned, new jersey, the wealthy people don't like the fact that they're getting

completely hammered, not only by higher and higher taxes locally but by the lack of deductions so this doesn't surprise me and by the way, alliance bernstein moved to nashville that's a really big financial firm. david: no income taxes in tennessee. >> basically businesses with people, as their employees. they don't need manufacturing or whatever. they can go wherever they want. >> so when you're saying the mayor of new york city says we're going to tax the hell out of the wealthy that people will tend to move. look i'm here in florida. i used to live in palm beach county i get it. i live here in east orlando and buildings are going up left and right, companies are moving here from every which way and it's all the same. people, business, capital and risk will flow to where it's treated best and that's exactly what is going on here and i must tell you, some of these politicians in the northeast, they are just taunting people to leave because it seems there is never a tax hike, they will not

do and never a tax cut they will like and you see the results. >> gary, the great state down there, you look at the capitol of austin, texas where so many companies are moving to not only do you have the wonderful football team the texas long horns, but you also have no state income tax, and your schools are fully funded your police are fully funded and you don't have to pay a tax that's going to a bunch of politicians who can't balance the budget. that's what the alternative is right now in new york and california. nothing against those states, but people want to go like you say, gary where they are rewarded and where they get services they're not having to pay all of the tax dollars for. >> yeah, i wouldn't count the obituary of new york as a financial center just yet, new york has grown inflation over the past five years. it remains an incredibly vital hub for these services. really hard to recreate that, definitely examples of people moving out because they want to pay less taxes but there are a

lot of examples of people moving in. that doesn't mean these other places aren't going to thrive. it's a big country there are a lot of needs and a lot of different inclinations, but we aren't seeing a reversal of new york as a financial hub. >> but these politicians do nobody any favors. i am telling you i'm moving up there only because my kids are there and i'm doing the numbers on my whole life. david: be prepared. >> i can not believe the difference in what it is between florida. it is almost, well it is obscene but if you listen my kids come first, so see you. david: and there is an exodus out of connecticut. i remember when connecticut had a zero income tax rate and now they top out at 7%, they have a corporate rate of 9%. people are leaving in droves and moving to florida, so capital knows how to move and they do it when taxes get too high. mean tile the market is taking a massive beating today dropping more than 760 points, will we see a comeback tomorrow?

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oh, and happy birthday... or retirement... in advance. david: we have breaking news treasury department designating china as a currency manipulate or. what this means, first step really in taking their case, united states to the wto, making perhaps china as an end result getting ticked out -- kicked out of the wto, how would that afix markets tomorrow. >> the word escalation comes to mind, market is down 1500 since thursday, it is bounce, but all this, i think this bad news, we'll go tit-for-tat, back and forth that will weigh on things, i think there is more time and price to go before we hit a decent level. >> i agree, escalation is the

problem. where do we go from here? i think that market right now will find a bottom, i hope this does. u.s. is about only place to invest in the world right now, as trade happened around 20 stlean o13or 15, dividend stocke defacto bond. and i hope that the floor gets put under. >> i'm not sure if gary orr someone else -- or if it was someone else saying it was ultimate explanation for why equity continue to do well, it is the only game in town. i think people will look at this as a opportunity. david: zach. >> look. the currency manipulation thing it a name-calling. carries no actual action other than, the beginning of a long negotiation. you know it is a thumb and but does carry weight the way that tariffs do or china not buying u.s. agricultural exports, that

matters this less so. so. david: 5 seconds. >> if we lower rates, they of call us currency manipulate ors too. david: good last point, see you next time. elizabeth: markets now braces for president trump to potentially retaliate after china threatens and cheapened currency to cheapen cost of its products, we bring you could what becoming next, a hot pro and conwall stree, kooteninche t debate, cyber pros think it was china, china was retaliating, potentially trying to hack to u.s. electric utillt utillties - utilities. the latest on the two mass shootings that shocked