s. we like the banks. [closing bell rings] we think people way overdoing the negative. everything closing to the downside. first day of september ends in a sour note. there is always tomorrow on "the claman countdown." connell: trade tensions, weak economic data we had dragging on major averages. the dow settling in more than 280 points to the downside. we were down 420 plus earlier in the session. look at it that way. melissa: better than it was, i guess. connell: good to be back with you. i'm connell mcshane. melissa: i'm melissa francis. this is "after the bell." s&p 500, nasdaq, also ending in negative territory today. plus the east coast is on high alert, waiting for hurricane dorian to make its next move. unless of americans under mandatory evacuation orders from florida to the carolinas. how residents are preparing for an unpredictable storm. fox business team coverage.

gerri willis on the floor of the new york stock exchange. hillary vaughn is in d.c. with the latest on trade. blake burman is live at the white house. hillary, first to you. reporter: melissa, the u.s. and china still have not set a date for what is supposed to be a refresh on trade negotiations that are scheduled for sometime this month. even the president insists that the negotiations are going well, there have been a few hiccups in their communication between the two countries. first the president went forward with a new round of tariffs against chinese i imports on sunday, denying china's plea to delay them. china now in response says they will file a lawsuit against the u.s. through the world trade organization. a spokesperson for the chinese commerce ministry says the trade fight violates china's quote, legitimate rights and interests, saying in a statement we urge the u.s. to stop abusing the concept of national security. it is deliberate smearing accusations against china and oppression against chinese

companies. the president saying china cannot afford to delay a deal much longer. if they try to hold out on the hope that a new administration would be softer on trade, there will be consequences, tweeting this morning quote, think what happens to china when i win. deal would get much tougher. in the meantime china's supply chain will crumble, businesses, jobs and money will be gone. a u.s. delegation today led by senator steve daines and david per did you met with liu he. they met with him in order to have substantive conversations not just on trade negotiations but also on security concerns between the two countries but it is important to note, melissa, this is not considered a step forward in trade negotiations because this coalition of senators is not formally part of trade negotiations. this happened separately apart from the white house and their

on going discussions between the two countries. melissa. melissa: a lot to keep track of, hillary. thank you. boeing one of the biggest drags on the dow today. let's go to gerri willis with all the details. gerri? reporter: boeing has been a big drag on the dow, down significantly all day long. why are they falling? more worries about the 737 max jet. in fact international regulators are starting to express concerns they are not buying this idea that the max will be ready by early this fall. so we're waiting and seeing but this is a very big and important issue for boeing's bottom line. meanwhile google, "washington post" reporting more than half of u.s. state attorney generals are readying an investigation into google for potential antitrust regulations. we're expecting details of this by september 9th. but as you know stand in line, get ready, because there is a lot of people who want to contest google on the basis of antitrust. this, from california. lyft, uber, both of those stocks

hitting fresh lows today as california ready as bill to reclassify workers. google and uber like to say that they are contract workers. but the state wants to say they're actually employees. it has been a long running debate for two companies and state regulators. you can see those stocks down pretty handily, what has been a tough day for the markets. back to you, melissa. melissa: thank you. connell: bring in our market panel. veronica daguerre host of "the wall street journal," wealthy women's podcast and liz peek, fox news columnist and fox news contributor. hillary vaughn was going through the back and forth with china on trade. the other thing we saw was weakness in manufacturing, contraction as a matter of fact in the manufacturing side of the economy. how concerned should we be about that as we look into the slowdown fears? >> that is concerning.

weakness in manufacturing. we're hearing more about job loss. when we hear about job loss, that means people will start pulling back on their spending. consumer is underpinning of this market, of this economy. if we start seeing a retrenchment there, especially more of these tariffs come online, that could really put this economy in a tough place. connell: that is a conversation liz, we've had it on the show back and forth seems almost like on a daily basis. are you getting closer to the point where you start to have the concerns that veronica outlines? all right we're worried overseas, to wore ied about manufacturing here and eventually we're worried about the american consumer? what do you say? >> this is sort of a slow boil. we had any number of indications over the last four or five months that the manufacturing sector is slowing down. i'm encouraged by a report out of isi, economist group, very highly thought of. the company surveys hooked up this week. they're seeing no sign of

backing off of hiring. that will be a really important key to what impact all of this has has on our economy. as we all know the consumer is driving things. if hiring and wages continue to look very strong, unless you get something that really dents consumer confidence, you know i think the consumer is still in pretty good shape. so i don't -- growth is slowing because of manufacturing but is not zero. i think that is the important thing for the market right now. melissa: good analysis. as the trade war continues chinese tech company huawei is now accusing the united states of cyberattacks on its networks. even saying the u.s. is instructing law enforcement to quote, menace with its employees. although the company did not provide specific examples to back up the accusations. veronica, what do you think of this? do you think there is any truth to these allegations or what do you make? >> this is the latest back and forth in the tit-for-tat, right? there is not a whole lot of

specifics in the press release as you mentioned. what is interesting about this, huawei seems to be doing good no matter what, right? they reported they signed 50 new contracts across the globe for their 5g technology. their smartphone sales are up. if you're an investor in that company. you're feeling pretty good, despite all this company being in the middle of the trade war. melissa: liz, some allegations they say, officials were pretending to be huawei employees in order to drum up charges against the company. i mean, in the past i would have said this sounds insane but we've seen so many crazy things from our government in the past few years. >> i watch far too many cop shows. that is kind of thing they do some of the time. i have no idea of the legitimacy of these claims. this is a company clearly in the cross-hairs to the american government as a number of chinese technology companies are because there is no question they steal our information, they steal our data, they steal our intellectual property. that is exactly the heart of

this enormous thumping thing we call our trade war if we will pursue trying to back china into a corner, stopping this kind of behavior, huawei is on the front lines so. who knows what our government has been doing to to try to corner them. i'm not at all surprised by charges. there are not any details available yet. melissa: we'll see. liz, veronica, thank you. connell: move on to oil in the red. second straight session down more than 2% on the trading day. trader scott shellady joins us from the floor in chicago. what did you see today, scott? >> the bogeyman got best of everybody today, after we saw manufacturing numbers. obviously still in the middle of this trade war. we didn't back off the tariffs. there was a little bit of buoyancy on friday thinking we might delay them. we set oil price trading lower. depending what you read, slow down with the economy because of tariffs will cost us anywhere,

.3 to .5 off our gdp. the average american worker be $1000 for the year. this negates the them, the market took that on board being away three weeks or three days, started to get out of their stuff. that is really what i saw as far as oil. connell: you thought for some people maybe it was three weeks, scott right? what is the next big thing or next big move, if you had to guess? >> we'll have to see more reads on the economy. i agree with liz about the consumer doing really well. if we see cracks show through, unemployment numbers or wages or average hourly earnings, that is all those types of things are getting more and more important. here is what i don't like. i don't like what the bond market is telling me. i don't like what the copper market is telling me. i'm smelling deflation. we need to fix stuff up. interesting to see the jobs numbers, what does to the rate cut we may get. connell: wage component of it on friday morning. we'll be watching.

scott, good to see you as always, scott shellady. melissa. melissa: white house is monitoring hurricane dorian we await the 5:00 p.m. hurricane update. blake burman with more details? reporter: this has been a focal point for president trump, monitoring ongoing developments for hurricane dorian off the east coast. the president is being updated not only with the storm bath, what could look like next few days but also preparation efforts taking place at points up and down the east coast. right now the president is scheduled to be meeting with the newly installed defense secretary mark esper and we're learning what role the pentagon could be playing in all of this as it relates to dorian. the pentagon says today, some 5,000 national guard, 2500 active duty forces are standing by ready to assist in the relief efforts. general terrance o'shaughnessy who heads up northern command also told reporters, warships

recently dispatched to the atlantic for drills, could potentially be used for hurricane disaster relief but right now, melissa, the u.s. is not planning on using those warships for those efforts. back to you. melissa: blake, thank you. connell: breaking coverage of dorian will continue throughout the hour. millions of people along the east coast bracing for the dangerous winds and life-threatening storm surge that might come along with this hurricane as it gets closer and close into florida. we're on the ground in cocoa beach with the latest coming up. melissa: plus while the attention is focused on dorian, another tropical storm is threatening mexico. more on what hurricane watchers are calling a triple threat. it is coming up. connell: that time of year. new details on a horrifying disaster scene. 34 people are presumed dead after a boat caught fire, bursting into flames, trapping dozens below deck. latest on investigation and recovery efforts ahead.

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if it's connected, it's protected. call, click, or visit a store today. melissa: devastation in the bahamas. at least five people are confirmed dead after hurricane dorian pummeled the islands for nearly two full days, stalling over the region as a category 4 storm. walls of war trapping people on rooftops, completely wiping out tens of thousands of homes. this is according to red cross

officials. the prime minister calling the damage, quote, unprecedented and extensive, as the storms take aim at the east coast. connell: more on the hurricane now. it does threaten florida. the broader united states up and down the east coast and finally moving away from the bahamas. at this point we have states of emergency in effect from florida all the way north, i believe as far as virginia. let's get to fox news correspondent jeff paul in cocoa beach florida with how things are. how are things today, jeff? reporter: connell, first time for several days we've been out here in cocoa beach we're starting to feel outer bands of hurricane dorian. it started to rain a few minutes ago. the wind picked up. if you look at the cocoa beach pier, the waves are powerful, getting bigger only seems by the minute. if you look to the right of here, if you were out here a hour ago, normal beach day. people were checking out the

waves. it has been cleared out. we the police don't want anyone on the beach. we're on a walkway, able to bring the broadcast from where we are. if you take a drive throughout town, you notice people are listening to the warnings. they have for several days. homes are boarded up. shutters are in front of businesses. this has been going on for days and days. if you talk to anybody here in town lived through other hurricanes, they're getting sort of a little frustrated. they just want the storm to come through, to bring whatever it is going to bring. >> so annoying. i'm really upset, because my husband is out of work. everything settles down. the entire county is shut off. that is very frustrating. reporter: "earth" thing you see driving around town, a lot of utility trucks, power trucks staged out here for a few days. getting ready to handle anything the storm should bring, if the power goes out, if there are downed power lines. they want to make sure they get the power restored, roads back

open as quickly as possible. there is supposed to be the impacts from the storm, expecting not only wind gusts but a lot of rain but storm surge from the ocean, maybe up to seven feet. many communities are pushed up to the beach. they will watch that very closely. connell. connell: jeff paul, on the beach in cocoa beach for us. melissa. melissa: here to tell us more what is happening on the ground we're joined by russ owen, the mayor of new smyrna beach, which is in florida. thanks for joining us. what are conditions like where you are? >> thanks very much for reporting for this on our community. we're about 50 miles north of the correspondent that just spoke, very similar conditions. we've been watching, waiting anticipating now for days but now it is reality and conditions are starting to worsen. the waves are really starting to kick up. the wind is starting to kick up. and biggest concern at this point, if the track holds and stays off the coast a bit,

biggest concern is probably not so much binned but the storm surge and flooding, already dealing with the king tide. already dealing with that. so the flooding is one of our primary concerns at this point. melissa: there is a misconception i think, maybe a lot of other parts in the u.s., that you guys have really dodged a bullet. in some senses maybe you have, but looking where our reporters have been where they were standing next to a seawall, then you could see it. now the seawall is not visible any longer. and the water looks really violent. what does that surge and the flooding mean for your community? >> yeah you know you're spot on. in many ways we have absolutely dodged a bullet. of course our thoughts and concern are with the bahamas. we'll experience nothing like what they have if this holds the current course but there is certainly still will be damages. will be impacts to the community from that flooding. now, luckily we won't maybe have some of that wind damage but the

flood damage can be just as severe, if not more severe. tends to be a little more coastal. the wind field can be broader and go further inland. hopefully some of the damage will be localized. of course flood damage is very catastrophic. you know, severe losses, complete losses to businesses and homes that are right along the river, depending where the coast, how high that surge goes. melissa: what message do you have to anybody who might be watching in your own community, then to the rest of the country, what is going on, what do you want to tell us? >> you know, it is interesting, i could repeat a lot of the same points that have been repeated staying safe, taking this and future storms seriously. those are all great points but one thing, this is my first time going through this as an elected official, not the first time as a floridian, many, many storms, one thing i would say, it has been fascinating to watch the sense of community that has come out in this storm and, we forget

about all the other factors around it. we really become one. i'm hopeful we can continue that as a community and spread that and, you know, keep that positivity going. that is what it is about. this reminds us of that. we have way more in common to fight for than against each other. melissa: that's very true. you also said you yourself been through some storms and we were looking at pictures of the size of this storm from space, wait, can you imagine what is happening to those poor folks in freeport and some of the islands in the bahamas where this enormous storm has been sitting over the top of them for so long. what are your thoughts for those folks? >> absolutely, our heart breaks for them. i sat through storms nothing like that, but having just sat through, i think it was matthew

a couple years ago. we stayed for that. rode it out. it was overnight, so you couldn't see what was happening but you could hear the winds howling and heard trees cracking. i lived through that in a short time, not near that intensity. absolutely our heart breaks. our hope is, talking locally, if we dodged this like we think we may, all those supplies, all those resources that we have in place, start shifting as much as possible down to the bahamas. they will need it. it is life-changing, absolutely life-changing. melissa: thanks for coming on. we appreciate your thoughts. good luck to you. >> thank you. connell: very good perspective. our coverage for this storm will continue. as the hour continues, dangerous wind and rain already hitting parts of florida with hurricane dorian marching towards the state. that is not it though. you see the track on the screen. it is georgia. then it is the carolinas the next few days. maybe even further north than than.

we'll keep tracking it. completely different story, but a important one, british parliament is back in session, and a bill is trying to avoid a no-deal brexit. they are trying to force boris johnson's hand. we're live in london with the latest, next. just another reminder of the value you'll find at fidelity. open an account today. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

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melissa: a crucial debate is underway in the uk as lawmakers attempt to block boris johnson for a no-deal brexit after his party lost the majority. andy kellogg live in london with late-breaking details. amy? reporter: i will do my best to make it clear, melissa. we're waiting to see if mps can wrest control of the brexit process from the prime minister's hands. effectively they say they are doing this because they want to prevent a no-deal brexit happening october 31st. there are lots of concerns what that could mean for the economy

here and other matters. now if boris johnson's march towards a no-deal or a brexit in any event, the march towards brexit in some way blocked he has indicated there will be no choice, melissa, but to call new elections. now, one of his mps actually switched sides today, right in the middle of his address to the parliament. others have said they will vote to block no deal. he has vowed to chuck those people out of the conservative party effectively ending careers. the one clear defection today, cost johnson working majority in the government. he claims brussels will only give them a better divorce deal if they fear britain is ready to walk away october 31st. parliament blocking no deal or getting further extension of the brexit deadline against johnson's will would only thwart his negotiating strategy. opposition leader jeremy corbin would have a chance winning

election. he is conservative's a nightmare his views are far to the left of past labour leaders like tony blair and brown. >> we want a deal to get down, the best way, mr. speaker to get a deal is support the government tonight. reporter: so, melissa, it has been a week of high drama. that led to confusion you alluded to. this is divided country right now generally over the issue of brexit but you have opponents of boris johnson crying constitutional outrage. that he shortened parliament's session in the runup to brexit. you have his allies tonight accusing the others who are trying to block boris johnson of constitutional irregularities. in the next hour or so, a lot more will be clear. but there are any number of scenarios that could come out of this tonight. the most dramatic really would be new elections in the united

kingdom next month, melissa. melissa: wow. amy, we'll keep an eye on it. thank you. connell: here with his own reaction, analysis, james freeman of "the wall street journal," fox contributor. james, if you talk about this forever, but to amy's point if you get a snap election now which is the latest wrinkle in this whole thing a couple weeks before the brexit deadline, the funny things about elections sometimes it is tough to predict who wins them. not necessarily bad news for boris johnson. what is your take? >> he is looking pretty good in polling. the hope if he wins, this is a few days before the sort of final deal is cut with the eu and he can get what the uk wants, certainly makes sense that his willingness to leave is going to inspire the eu to put their best offer on the table. president trump could probably help him as well. our president has talked about how he want as new trade deal with the uk if they leave. right now if he put on the table a zero tariff offer, he would

probably strengthen boris johnson's hand, also calm some investors in the u.s. who are concerned about our own president's trade position. connell: that would -- that is two birds with one stone situation what you're suggesting. >> it would be. connell: would help with china, what you're saying. >> yeah. connell: do you think it will happen? >> it should happen. we heard president trump earlier said he wants zero tariffs wherever he can get them. that was not the last g7 meeting but a previous one. last week he talked about having a really good deal with britain. they're having the same situation we are. manufacturing data is soft over there. connell: yep. >> investors are concerned. i think it would be a great signal on both ends for the president to say, let's do zero tariffs. have a model free trade deal with the uk. if they leave, then, even if they don't, president said lower barriers with the eu. connell: might help markets. i wonder what it would do for

boris johnson politically? he does seem, how significant was it, the way i should ask, technically he would lose his majority today? he doesn't get kicked out of power or anything like, that how big of a deal he is losing pow or support, some of it in his own party. >> it is not a stampede out of his party. it was one high-profile member in particular. so i'm not sure it has any big short-term impact of of course this does get complicated because to get a snap election, if he wants to follow through on that threat, i believe he would need a vote there as well. so, a lot of, a lot of moving pieces there. but i think if he has got a zero tariff deal from the u.s. on the table, and he has got a realistic, maybe more than they had previously threat that he really will leave at the end of october without a deal, i think that does force the eu to put their best offer on the table. connell: so the the ball may actually be in president trump's court to some degree if you're

right about that we'll see you later in the hour on a different subject. james freeman. melissa: inching closer to the east coast. we're live in the fox weather center tracking hurricane dorian's path, as coastal towns prepare for the worst. connell: serving for answers following the deadly boat fire off the coast of california. what officials are saying about the horrific accident. melissa: chaos, confusion at newark airport. video of passengers are running after a false threat cleared terminal a. a panicked worker yelled evacuate, hitting the alarm, leading many to believe there was an active shooter. passengers left bags behind and ran out on to the tarmac. the airport determined there was no threat and rescreened passengers and employees. can you imagine? wow, scary. ♪ all before lunch, which we caught last saturday.

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oh, and happy birthday... or retirement... in advance. you're smart,eat you already knew that. but it's also great for finding the perfect used car. you'll see what a fair price is and you can connect with a truecar certified dealer. now you're even smarter. this is truecar. connell: back to dorian, millions of americans bracing for dangerous winds and possibility of life-threatening storm surge. the hurricane approaching, doing so dangerously close to the florida coast. rick reichmuth still tracking from the weather center. you've been telling us about the turn. we got the turn. how close as it moves north? >> it will make the closest impact with land somewhere towards carol chinas. florida will be fine. i want to point this map out to you, connell. one week away from statistical peek of hurricane season. we have five different systems

in the atlantic we're watching. things are becoming active. only one in the short term towards mainland u.s. is right here with dorian. we knew it would move. we knew it would stall and make a right-hand turn. we couldn't exactly get that fixed where the turn happened. that stall and turn happened across the bahamas. images out of bahamas last 24 hours are devastating. had this moved farther off towards the east for the stall, it would be devastating across parts of south florida. we can be thankful for us, it made the turn a little bit earlier. that it will stay off the close of florida. we'll keep our prayers for the folks in the bahamas. in unimaginable situation. this storm pulls off to the northwest. florida impact will be across cape canaveral, overnight tonight. by tomorrow morning, maybe around the daytona beach area. we'll see winds in 60 mile-an-hour range.

maybe towards hurricane force. it will push storm surge up through north florida, through georgia. by thursday morning we'll have very close impact towards the charleston area. probably hurricane-force winds. hurricane warnings are in effect right now. look at the center of this, according to one model we have, which is pretty reliable, most of the model breaking it towards the north carolina coastline. that means significant rain along the coast, significant storm surge, a lot of damage at least to coastal areas of the carolinas. when we talk about flooding, you see red there, this is couple days out for north carolina, with moderate risk. this is elevated risk for flooding across the parts of the carolinas. 10 inches of rain falling in a short period of time. florida, however, throughout the night, tomorrow, storm winds and storm surge but spared the worst what it could have been in florida. connell: could have been a lot

worse. thank you, rick reichmuth. melissa. melissa: response teams will soon spring into action to help communities hurt by hurricane dorian. jaeb wood, rubicon ceo. your group specializes getting into action, helping people in the aftermath of these situations. we had a mayor on from a local town in florida who was saying they have been spared a lot of the damage but they have so many resources together where they are, they were hoping a way to get some resources to the bahamas. how do you deal with that kind of problem afterwards when you tried to scramble stuff to a certain location, that is not who needs to help? >> that is a great question and we're dealing with it right now. we have a small team on the ground in the bahamas trying to figure out that exact logistical solution. we're facing kind of a nightmare confluence of circumstances. you have a small island. airports are undo. ports are closed. the situation is very fluid.

we were also staging in teams in florida, expecting landfall along the eastern coast of florida. we had route clearance teams. we had recon teams prestage. now we're chasing a storm up the coast towards the carolinas, trying to position our resources. melissa: tell me, what are you hearing from your team in the bahamas? we, even within the news field, we're having a hard time getting very much video from nassau is one thing but when you look at the islands really getting crushed whether freeport or abacos there is not information coming out of there. what are you hearing? >> there is not. our team will reach abacos tomorrow. we'll hoping to have better ground truth by midday tomorrow. we're seeing same thing you are. we are scraping all open source intelligence out there, whether satellite imagery, twitter videos, pieced together, a complete picture what is happening. let's be honest, it is really

bad. nobody has a full picture of just how bad it is. melissa: how does it compare in those, the place that has been right in the eye of the storm there for the past 48 hours, the little that you're seeing, how does it compare to what you've seen in the past? >> team rubicon responded to nearly 400 disasters over the last 10 years. we've literally seen the worst of the worst. this appears to be very bad. we did extensive work in puerto rico after hurricane maria. that was again an aging infrastructure problem, loss of power, large medical need. you know this looks like it is going to at least rank up there, perhaps surpass it. you know, disasters are, they're inherently bad. there is confusion, there is chaos, there is danger, there is unknown risks. to use the phrase, there are all the unknown unknowns that we have to navigate through. melissa: you said your team will get to abacos tomorrow. how are they getting there?

>> we are currently planning on taking helicopters in. i say that with a somewhat of a grin because, the situation is very dynamic. it could change in the next 12 hours. melissa: i have no doubt. jake, thank you for what you guys do. you're always there in these storms and you know we really appreciate it. everybody here wants to help. we don't know how. you guys are out there doing it. thank you. >> thank you for having me on. connell: do great work. a power move and a warning out of beijing. officials are threatening new measures to combat protests over in hong kong. so what happens next? james freeman is back from the "wall street journal" after this break. by consolidating your credit card debt into one monthly payment. and get your interest rate right. so you can save big. get a no-fee personal loan up to $100k. you wouldn't accept from any one else. why accept it from your allergy pills?

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connell: walmart taking action today. the company announcing it will reduce its gun and ammunition sales. this is month after more than 20 people were killed in a mass shooting that took place at a walmart store in el paso, texas. walmart will stop selling handgun ammunition as well as handguns themselves in the state of alaska. that is the only state where walmart currently sells handguns. they ask that customers no longer openly carry guns in stores in states that allow open carry. the nra out with a statement blasting the decision as quote, shameful. melissa: raising the stakes,

china declare it being has legal authority to declare a state emergency in hong kong if unrest continues jonathan hunt is live in hong kong with the latest. jonathan? reporter: good early wednesday morning to you from hong kong. thousands of protesters gathered again on tuesday in hong kong's park not far from where i'm standing. the second day running they gathered there. part of a general strike, another show of defiance to hong kong leadership and chinese government. beleaguered chief executive carrie lam, tried to walk back leaked comment recorded at a private lunch, she said she would quit if she could. today she said that was a hypothetical discussion. >> i have never tender ad resignation to the central people's government. i have not contemplated to

discuss resignation. reporter: now the chinese government repeatedly said it will step in if it feels hong kong authorities and ms. lam are losing control. the clashes between police and protesters, which made the streets of hong kong echo to sound of tear gas canisters and rubber bullets being fired, beijing exercised its right to impose emergency rule. >> translator: the central government will not allow the chaos in hong kong to continue indefinitely. if the situation in hong kong deteriorates further, bams uncontrollable by the sar government and turmoil threatens the sovereignty and security of the country, the central government will not sit idly by. reporter: last week, of course, china sent military vehicles

troops across the border into hong kong. the chinese authorities said that was routine rotation. a diplomatic source i spoke to today, melissa, acknowledged a rowcation would imply, a certain number of troops comes in hong kong, a certain number of troops goes back out to china. that has not happened yet. that source said obviously if it does not happen in the next few days, then it is very clear that china is bolstering, rather than rotating its forces here in hong kong. melissa? melissa: jonathan hunt, thank you for that report. back with james freeman on the story. misuse of term rotation, if we don't see troops coming out. emphasis china decided to make we can declare a state of emergency, saying again a sign they're ready to move in if what

do you think? >> a very bad sign it is disturbing. it is outrageous for this cost to claim it has rights or authorities over people of hong kong. nobody elected it. certainly people in hong kong never elected it. don't want it this would be a violation. this whole controversy from the start has been communist government attempt to violate a long-standing agreement that the people of hong kong don't have the live under the injustice on the chinese main land. it is disturbing up to the u.s. and every other country in the world to reject the whole idea that beijing has, has the right and should be treating hong kong this way. connell: now either way, no matter how this is resolved or

not resolved in the long term, do we see large-scale defections in hong kong? it's a center for free markets open commerce the like? to your point it is a long way from year 2019 to year 2047. the idea seems get progressive i worse seems to be on the table here. are things moving in that direction already? >> i'm hoping leadership in beijing will think about issue you just raised. value of hong kong as a financial center. the economic impact not just turning the chinese government into a pariah but destroying the asian financial system. you see people wanting to get their money out. this is not time people think about hiring investing in

hong kong. connell: right. >> i would hope some consideration factor in before the communist regime making a horrible mistake. connell: going on for 13 weeks i believe. james, thanks for all the time. james freeman. >> thanks, connell. melissa: devastation in california, following have you seen the story about the deadly boat fire? we're live in santa barbara after the break with the latest details from this really tragic disaster. ♪ thanks to you, we will. aw, stop. this is why voya helps reach today's goals... ...all while helping you to and through retirement. um, you guys are just going for a week, right? ... voya. helping you to and through retirement.

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melissa: new details in the deadly boat fire off the coast of southern california. 34 people are presumed dead as the coast guard calls off the search and rescue operation. fox news' william la jeunesse is live in santa barbara with the latest. boy this is a tough story, william. reporter: melissa we expected to hear today about the cause, the origin, the ignition source for this fire and secondly how did

it happen? someone to connect the dots if you will? well that didn't happen and the sheriff did not tell us that at today's news conference instead waiting until doing formal interviews with the five surviv ing crew. he did say, however, that an explosion did not cause the fire, but one started the fire blocked the escape hatch and the main exit leading to the deck, essentially trapping all 34 victims below deck. >> we'll only be faced with the ability to know that we recovered them and they will rely on us to do everything in our power to find out what happened aboard that vessel, and the last moments. reporter: the conception is a wooden boat commissioned in 198e -bunked with curtains for privacy and a small leading to the main deck to get out but with the panic that could have been very difficult, they say. the boat passed inspection in

august, with a fire control system on board, extinguishers and a small detector, confirming the coast guard, but there was also gas o lenore for a eventual rate or, propane for the stove and oxygen for the scuba tanks all extremely flammable. dive teams did search for victims today but the search for survivors is over. >> our hope is that we will be able to penetrate the wreckage today, stabilize the vessel, penetrate the wreckage, conduct an investigation, search it and then recover any remains. reporter: so the coroner right now is collecting dna from the families to help identify the victims, many are so badly burned and also melissa at this point in time they're using the passenger manifest, the list to try to contact the families, 30 so far meaning there are still four families out there who don't know their loved one has likely passed. melissa? melissa: that is horrible devastating news, william, wow thank you for covering this

story i know it's not easy. connell: just the worst some of these stories the last few days not only that but we thank you for joining us today and every day we'll see you back here tomorrow. melissa: bulls & bears starts right now. david: hunkerings down as hurricane door january inches closer to the east coast, killing at least five people, there, and live reports from the bahamas and the florida coast, plus the latest on the path of the storm from the fox news weather center, all that is coming up. but up here first, stocks taking a dive today as another round of tariffs kicks in on chinese goods and now, new data showing the manufacturing sector dropped last month for the first time in three years due in large part to concerns over trade uncertainty. amid all of this, the head of the largest federation of unions in america say