>> i wonder if wilbur ross is surprised by the market reaction, stephanie, or if wilbur ross is sayingis surprised by the market reaction because that's what the white house wants him to say. >> so what you just said to me right there is, he's lying because that's what the white house wants him to do. >> listen, with mr. ross, i'm sure you've interviewed him many times in your career, i've interviewed him, i've always found him to be a genuine guy. however i do agree with your thing about how could he be surprised. peter navarro saying the same thing the other day, that the markets seemed to be overreacting and they were surprised. our former colleague larry kudlow is in the white house at the nec taking over for gary cohn. he will be somewhat of a countervailing force in terms of proponent of trade to the peter navarros of the world. it was surprising to hear mr. ross say he was surprised. you know, stephanie, as well, here's the thing. this is a market that many people say -- i don't want to call it priced to perfection, but it's risen nicely over the years. this is one of those mark

as is wilbur ross. we should remind you, the trade deficit has only grown since president trump has been in office. let's hop into the back. the time machine to last month. the president famously declared on twitter, trade wars are good and easy to win. let's look at how good this sucker is going. overnight, china announced a $50 billion worth of tariffs on american goods. it shows a targeted effort to hurt trump country. here are just a few of the sectors hit with 15% or 25% tariffs. first up, soybeans. it is our second biggest export to china. eight of the ten soybean producing states voted for president trump in 2016. car exports. top ten u.s. export to china. midwestern states were the key to the president's election victory. and beef exports, all part of china continuing to hit u.s. agriculture. this is all in response to a list released by u.s. trade representatives, listing 1,300 chinese exports, worth about $50 billion on their side. massive target, electronics. it'd hit one of china's biggest e

wilbur ross says they're negotiating behind the scenes. i've talked to people in the white house saying there's no noeks going on. >> you make the point too. and as we pull up that graphic again i want to bring that back up of what this is about. soybeans, you foe what states those are, steph. these are states that voted in large part, whether you look at the numbers right here, in large part for donald trump. the top taken soybean producing states are trump country states. this has got to get the president's attention one might imagine. >> you'd think. here's the thing though, no one win as war. the president himself says trade wars are good and easy. wilbur ross says even shooting wars end in negotiations. but, you know what happens in those wars? bloodshed and death and we can avoid that. >> stephanie ruhle thunk for your perspective. we'll see you back with ally velshi later in the hour. >>> we want to check in with what's happening in the white house. we are admonishing what nikki haley is saying. we'll bring you the latest knews and

wilbur ross joins us next. latest with futures down 600 points dow looking lower by more than 500. "squawk box" will be right back. >>> good morning from foggy new york welcome back to "squawk box" here on cnbc we are live at the nasdaq market site in times square among the stories front and center this morning, the main one is the plunging stock market futures. take a look at what's happening across the major averages. dow set to open lower by 500 points. >> 400. >> down 480. that's an improvement. we'll see what happens after our interview with mr. secretary coming up in a couple of secretaries here that reverses yesterday's gains and then some. this all happened after china announced new tariffs on u.s. products they had a press conference a couple of hours ago. we'll have more on the trade battle in a moment yesterday the u.s. put out its list of products that will be putting tariffs on china all of this as kayla tausche was reporting depending on how talks go over the next six weeks or so still, a lot of c

paul: wilbur ross says the u.s.ill exempt some allies from the steel and aluminum tariffs, but not all. the announcement on tuesday. betty: north korea will allow observers to see the decommissioning of its nuclear sites. washington said it must be a reversible. paul: hello from sydney where it is fast 8:00 a.m. i am paul allen. we are two hours away from the open of asia's first market open. betty: it is 6:00 in new york. all the action on wall street playing into the asia-pacific trading day, and it will be a busy week. we have been hit with lots of news over the weekend including the sprint t-mobile deal finally billion.one, $26.5 expecting the shares of those companies to move as we move in monday trading in the u.s. but also of course lots of eyes on the 3% yield for the 10 year. we have inflation data, fed meeting, refunding announcement, all of that going to affect where the yields go. quickly how we ended trade friday, in the u.s., the dow moving, pretty much a mixed session. the s&p also closing slightly hi

the bounce in sentiment continues in european time as well >>> wilbur ross told cnbc he expects trade talks to take place between america and china. >> even shooting wars end with negotiations.. shooting wars end with negotiations it wouldn't be surprising at all if the net outcome of all this is some sort of a negotiation. whether that happens by may or it happens at some other time, that's another whole question. >> happy to say that jonathan fendi from t.s. lombard joins us on the show this morning what's interesting is almost everyone has said the mick econc impact of these tariff also be negligible despite yesterday is this all just a bit of political posturing in order to get both sides to the table and start adult discussions? >> that's what one hopes it is we had the big bang opening, if you'd like, which had an inevitable effect on markets the speed of china's reaction and the way it was very much targeted in political terms in the united states at states where trump -- midwest where midterms may have an effect on the administration, that showed that china was ready for this.

and it's for that reason that we are deeply honored that commerce secretary wilbur ross is with us today. secretary ross is not only an extraordinarily accomplished businessman with degrees from yale and harvard, and a record of generating jobs and prosperity of more than 100 companies, he's not just a universally acclaimed expert, having been named by bloomberg market as one of the 50 most influential people in global finance, yes, he is even far more than that. and he not only serves as the trump administration principal voice for business, job growth and economic opportunity, he is a staunch lifelong believer in the undeniable truth that inspires our work here at the heritage foundation every day. that is, with freedom and opportunity, people everywhere can rise up from poverty and be empowered to live healthy, productive, and fulfilling lives. i can therefore think of no better guest to speak at this special occasion that our dear friend at the heritage foundation, secretary ross. they do so much for joining us today. [applause] >> thank you, kay, for the very kind introduction. it r

the question is whether you believe a former tv presenter and wilbur ross really do have the view of america's position. mark: at least for today, people want to believe it. it's worth noting that china and hong kong are both closed today on holiday. so were only seeing a partial reaction but what were seeing it is pretty good. of course investors want to believe that the two countries do want to sit down and talk to each other. it's much better than just throwing accusations and different tariffs around. clever to hit at areas where it politically would really hurt donald trump supporters and would hurt other republican leaders as well. so it's a pretty shrewd, from china and hopefully it will lead to sitting around the negotiating table which would be much better for financial markets. i guess that's the answer to the next question in terms of what happens next. do expect negotiation between china and the u.s. to result here? markets are trying -- trying to adjust to the new paradigm where it might be about the art of the deal, but it's pretty stressful getting there. mark: absolut

wilbur ross will be joining him as long as light heiser.t comes amid tensions in china saying it is quite prepared to defend its interests. mr. mnuchin: i'm looking forward to very frank discussions on the trade issues and continue those discussions. and see if we can reach a mutual solution. the good news is, president trump and president xi, since mar-a-lago, they've been talking about the trade imbalance. acknowledge that the objective is to have a more balanced trading relationship. the presidents have a close relationship. i'm going over there was a large economic team to see what we can get. chinesee: if i were the and listening to that team, it will be you, u.s. trade representative peter navarro -- mr. mnuchin: and larry kudlow and secretary ross. stephanie: should i be listening to you preparing for these conversations or peter navarro? is that a united front? you should be listening to all of us. we have a terrific economic team and we meet almost daily on these issues. we meet with the president regularly. it is good to have dive

arrived for the first state dinner the trump administration including members of the cabinet like wilbur rossnger, david rubenstein and the ambassador to france and one of the only doma credit politicians invited to tonight state dinner. no other democratic house or senate lawmaker was invited. we saw some republican lawmakers speaker of the house paul ryan, the majority leader kevin mccarthy also attending. we are waiting for the president and the first lady to come out of the white house from the front steps of the white house which is known as the north portico. they will coming out of those doors. there will be the color guard and others in attendance there. as they wait for the french president and his wife brigitte macron to come up in their car. they will get out and meet the president and first lady for the traditional picture and then they will make their way back into the white house for a brief visit before they descend the grand staircase and mingle with their guests to kick off tonight's festivities. a few more guests are trickling in. let's watch. [inaudible conversations] [inau

he thinks about the tariffs and potential trade wars but at the same time you are hearing from wilbur ross and peter navarro it is nothing to do about nothing. and tempest in a teapot and 1% of the economy. what are we to believe because it looks like this is the early stage of a trade war. >> you bring up good points. look at market reaction today and it will tell you how investors are looking at this. we had a steep drop in the morning. more than 500 points but then to the afternoon you erase the gains an the market is acting very emotionally to the headlines out there. actually investors are up beat. they are looking forward to good earning starting next week and looking forward to companies saying they are receiving the impact of the tax benefit as well. so when they look at this, there is a little bit por of a concern that it becomes an all-out trade war versus what is actually happening right now. and you could see this in the volatility of the market. investors get nervous when they see things like this because over the course of the year it could escalate and that is the problem he

trade secretary wilbur ross said he would like to reach a trade agreement with china soon and the president's economic adviser larry kudlow questioned whether the announced terrorist whatever take effect stock markets in the united states europe and asia posted gains on the news. earlier i asked the german economic institute who would have to back down first for this dispute it . well with difficulty. i think to donald trump and his and administration know try to maneuver themselves into a negotiation position with china on this topic go for an intellectual property property rights and threatening terrorists is one of the options to negotiate this and might this have just been the right strategy here i mean because there haven't been other countries that have been lamenting china's trade practices and the theft of intellectual property so is it could this be the right way to go this strong and aggressive position well i think diplomacy would be of use the better because if you threaten something and nothing happens you have to fulfill your threat in order to be credible so this threatens the

bloomberg, wilbur ross declined to identify which nations would be spared.said in now so we made right before tomorrow's deadline. he on friday nations have been to negotiate. joins us from the conference at 1:30 p.m. u.k. time. rudd has resigned accusations she misled parliament. she was the pro-european voice in the government and was the counterpoint to horse johnson. north korea's kim jong-un is turning on the charm, adding pressure on the u.s. president to ease sanctions against his country even before it made significant concessions. south korean president's spokesman says that tim fans -- kim plans to invite foreign journalists to witness the shutdown of a nuclear test site in may, that came shortly after kim pledged complete denuclearization. denmark said it will consider boosting subsidies for electric vehicles. the government is on fire for a tax policy that is put customers off dying green vehicles. danish sales of nonpolluting vehicles fell from 5000 and 2015 to us than 700 last year. the government will now reconsider the scheme. >> we have a ta

to wilbur ross' point, they been saying don't worry about this, but then they keep adding items to aof things we shouldn't worry about and when people keep telling me don't worry about it, don't worry about it, i worry about it. >> i did too. the talk gets louder, more sand in the sandbox gets thrown and it's like oh no, no big deal, we were just kidding about that last overture. i agree. the direction is not good. i do appreciate jeff's onions by going in and picking off stocks at these lows. don't forget sports fans, the s&p 500 was about 60 points lower overnight than it is right now. maybe we are holding these lows. we've tested these key levels in the market three or four times in some cases, so that's good. i look at this and i think who's really holding the cards. you have china imports of over a hundred billion dollars so that's kind of a big deal and we look at their situation as to how much they're bringing in of our stuff. they are trading with taiwan and japan. and i know, you've been right through a lot of these market swings but the chinese will capitulate. whether that

industrial technology, transport and medical products joining us first on cnbc commerce secretary wilbur ross mr. secretary, it's great to have you on this morning to talk about some of these issues we've had people on, wilbur, that say still a skirmish. if we call it a war, that's not really appropriate yet it hasn't gotten to that point these are skirmishes will it eventually end up being a full scale, if you will, war >> let's put it into perspective, joe this 50 billion that they're talking about amounts to about 3/10 of a percent of our gdp. so it's hardly a life threatening activity it's relatively proportionate to the tariffs that we put on based on the intellectual property, but i think the more important thing is the tone of the president's tweet earlier this morning. as you know, he's said in the tweet, and i agree, when you're 500 billion down, this isn't a war you can lose if it gets to be a war we have had a big problem with trade deficit for a long, long time several presidents got us into this big deficit this is the president who's going to get us out of it. he's determined to

economists hitting out on the theory of the trade case criticism comes after commerce secretary wilbur rossterated on "squawk box" that trade deficits are a big negative for the u.s. economy >> we have had a big problem with trade deficit for a long, long time. several presidents got us into this big deficit this is the president who is going to get us out of it. he is determined to go forward and this response should not have surprised anyone. the response to the 232 tariffs was quite proportionate. >> here's the economic problem for the administration as growth increases, trade deficits increase. the administration wants growth, has been somewhat successful achieving that as growth rises, so does the trade deficit. this is the current account. those are buckets of gdp growth. at 2 to 3% gdp growth, trade deficit is 3.6 and grows more when we are 3 to 4% growth moody's economist explains why this happens >> you have bigger trade deficits when the economy is strong because we're buying everything, buying everything we produce and everything everyone else produces. you have big trade deficit

chelsea can score goals in other ways but to do it without wilbur ross was really bad, then there was a goal here and chelsea were very good at times. but we stuck at it, honey and then got something out of it. celtic are just one win away from the scottish premiership title. they beat hamilton 2—1 at new douglas park and are 13 points clear of rangers in the table. celtic made a bright start and took the lead with less than three minutes played through callum mcgregor. but hamilton equalised against the run of play when rakish bingham was played through on goal. with hamilton reduced to ten men in the second half, leigh griffiths came off the bench and scored the winner for the champions elect. they'll clinch their seventh title in a row with one more win from their remaining five matches. sebastian vettel held off the challenge of valtteri bottas to make it back to back grand prix wins with victory in bahrain. lewis hamilton, who started down in ninth made it onto the podium in third. here's nick parrott. to bea to be a world champion and you need to keep your cool. stranded dining

wilbur ross and try to convince him to extend those exemptions if it doesn't work she has announced that the response by the european union will be threefold first of all retaliate with exactly the same measures that the u.s. are imposing secondly target specific u.s. products for example motorcycles where it really hurts and the third one is to complain at the world trade organization and. that reaction you know if this all comes to pos is it does the entire european union all of its government support that strategy. all governments safe to say think it's a bad idea to have those terrorists that's why again you had medical michael on may the prime ministers and chancellor so the leaders of the u.k. germany and france urged the u.s. administration not to impose them but the measures on the measures what to do once they are imposed or how to avoid them they are effectively not necessarily in agreement especially france and germany the reason for this is that germany is responsible for a large majority of the those high trade imbalances between the us and the e.u. they have most to lose al

extensions expire this tuesday and wilbur ross said an announcement would be made before that. have been asked to accept import quotas. to the sold information same academic who obtained facebook users data and passed it onto cambridge analytica. alexander cohen was given a to a five-month timeframe. twitter says they have removed cambridge analytical as an advertisers but offered no other details. rudd has resigned amid claims she misled parliament over targets for removing illegal immigrants. critics have been calling for her to step down. theresa may has accepted her resignation. she was pro-european in the government and was counterpoint to poorest johnson. -- boris johnson. france and a ron say they will work together to preserve the nuclear deal even if the u.s. walks away. they spoke for more than an hour on sunday and agreed to protect the 2015 accord. the truck administration faces a may 12 deadline and the president has indicated he may withdraw. irant says they have -- says they have no interest in renegotiating. global news 24 hours a day, powered by more than 2700

is wilbur ross correct in that assessment?i think the number one thing that americans individually want to know right now is, one, is this action going to lead to higher prices for things that i like to buy like shoes and ipads? and two, is this going to tank the economy? is this going to lead to recession and i'm going to lose my job? at least at the stage the economic consensus seems to be no, not yet. first of all, this is just a proposed list. by the sound of it, larry kudlow, even ross in the interview said this is a track to negotiation as well. we don't know what could come of that and what's going to happen in between, but i think it's important to remember that that is proposed list. as you mentioned before, the trump administration has really tried to ratchet up the rhetoric and will it lead to action, we're not sure yet. >> someone else out there says this would totally wipe out any gains that the tax bill would have given to voters, american workers. jonathan lemire and sarah mcgregor, thank you very much. >>> how

would be affected by this, i don't think the president -- or some of his advisors, lighthizer, wilbur ross and others, realize their base is much affected by propane, whiskey, cornflour, beef, a lot of things we get from china. >> yes, china cheats and they are a behemoth. yes, amazon is a behemoth and they've cut themselves a good deal with the postal service. but the lower prices amazon gives you like the lower prices china gives you are what makes the lives of millions and millions of americans better. they may impact small numbers of people that deal with trade. as you know, is that a small number of jobs get lost and a lot of people get a smaller benefit than that. so if you're one of the people who lost their jobs, it is a catastrophe. if you're the rest of country, you think, this cheap stuff is good but you don't feel it as strongly as the people who lost their jobs. >> the politics of trade. we're going to see a lot more of that, john harwood. >> you bet. >> thank you so much. >>> coming up, the russia investigation. president remains in robert mueller's sights. exclusive reportin

trade wars and tariffs or whatever you want to say when you say your main point man, kudlow or wilbur ross and say don't worry about it so much, the markets try to calm down they're looking for and want to know why we got a turn around here not clear when the tariffs will commence and there is hopes for negotiations there is still a lot of damage being done we are having multiple compression occurring in big industrial and technology names. how many days in a row do i put on boeing? that's 50 points in the dow jones industrial average they're off of their lows. john deere gets about 10% of its revenue over in china. we have other big industrial names that just started breaking even today 3-m gets about 10% of its revenues from china and chevron of 11% or 12% and still down despite the rally we are seeing. then we have some companies you may not think about, for example, take a look at visa, visa is showing positive but was negative all throughout the day. visa gets 10% of its revenues over in china. >> the bottom line is market moves on every gyration of tariffs and trade war issues on fri

wilbur ross said there was no expectation of this, and he comes from wall street.that china has a checklist of what to do the second u.s. took out tariffs . david: their word news reports last week that they had prepared them already. whippyt was a very session yesterday. at one point, the dow moved to 700 points. now s&p futures up by about 11 points. it is a broadly stronger dollar story. trade war settles down, and we're heading into jobs friday. yields up by about one basis point. but a selloff over in europe after weaker pmi's. .1% and also got caught up in the trade war and a big risk off but stable now. pay attention to these -- monsanto, second-quarter net sales missed the lowest estimate, coming in at just over $5 billion. share, also a missed estimates. interesting to say that they are looking to close the merger with bayer. they are optimistic from that. i have not read anything it on china and potential trade wars. it will be interesting to see the longer-term effects. david: the market suggests there will be more volatility than normal. a lot is going

echoing the words of commerce secretary wilbur ross.ee you both >> thank you we continue to get some new details on yesterday's shooting at youtube's headquarters. good morning aditi. >> reporter: good morning, carl. i spoke with the police chief not too long ago he recounted the terrifying shooting and the suspect is a 38-year-old nasim aghdam her family reported her missing on the 31st and she re-appeared yesterday morning early in the morning in mountain view in her car. the police say stars any motive is concerned it appears she was a disgruntled youtube user and aghdam also expressed on her personal website anger towards the company. she believed youtube filters her videos to reduce her views, police believe that's what prompted her to come to youtube's headquarters and fire off a 9mm in a lunch campus. police arrived two minutes after that first 911 call. hundreds of officers swarmed, many rushing into the billing as employees were fleeing the police chief says it may prime many companies to rethink or beef up their security. >> t

wilbur ross, the commerce secretary, weighed in on that . >> china needs to import very, very large amountsf lng, and from their point of view, it would be very logical to import more of it from us then for no reason other than to diversify their sources of supply. but it would also have the side effect of reducing the deficit. alix: and if you take a look at where we are, the u.s. is boosting its oil exports to china. we are now at about $1 billion. jeff, is this a realistic conversation to be having? jeff: commodities represent a very small portion of the trade deficit with the united states, for the united states outside of petroleum. petroleum is actually getting smaller. let's look at it in terms of the u.s., right now it is the second-largest oil exporter in the world when you think of product. i do not want to say we are not there, but we have a large deficit. in terms of thinking about china and the impact there, the growth rate on lng, we are 54% this winter. we have seen a big increase in demand, but a lot of that was eather driven because it was really cold in china. going forwar

that's according to wilbur ross e.u., dicated that the to have ave been asked -- where opposed to does it stand as far as steal tariffs?inum >> secretary ross mentioned over weekend in order for countries to gain exemptions to tariffs, they have to quotas ertain import which is a difficult possession e.u.the , as you know, german chancellor angela mercuriell and french prime minister went to negotiate an agreement with washington. that does not appear to have gone as well as the e.u. helped.ve nna: when i was last in brussels with you, they have ust been announced, the tariffs. remember the belgium its rship with a gun to head. from the e.u., what is the to be?n likely exactly right, german mentioned that they would like to bring back the -- more importantly, the european commission which handles trade policy for the e.u. has indicated that they talksot be bringing those back up. commission's an trade commissioner has said that threefold to t u.s. tariffs. retaliation.ng the u.s. has already put thather a list of products they will target from the u.s. those include things like harley

. >> when xi jinping went to mar-a-lago in the spring, he charged wilbur ross with working on opening up trade between the two countries. >> right. >> we know how that turned out. joining us now, our dear friend john harwood, former u.s. trade representative michael froman, and austin goolsbee, chairman of president obama's chairman of economic advisers. he's been in the seat larry kudlow is in today. michael, you first. these tariffs are a jump from tuesday's, but we need to make this clear, the tariffs are not yet put in place. at this point, it's just talk. do you take this talk seriously? >> well, i think it is just talk right now, but it is serious. it's like two armies lining up on on opposite sides of a valley looking at each other. you see what the damage will be. so far, they've been minor skirmishes. it's not an issue of whether it is $50 billion or $300 billion. it is the question you raised a moment ago. what is it the u.s. wants out of china? have we laid it out clearly? do we have a process for getting there? increasing your leverage by announcing the possibility of impo

we all saw some members of the president's cabinet treasury secretary along with his wife wilbur rosstrump's cabinet john bolton who is hoping to be part of the president's cabinet and former cabinet members like former secretary of state henry kissinger and other societal notables all attending tonight's state dinner. krista marshall has been with us giving us the inside scoop of what's happening what we see and what we don't see. we are waiting for the traditional toast. >> guest: its part the formality. the dinner usually starts off with a welcome by the host and then a thank you by the dignitary. the president will begin by raising his glass in honor of president brigitte macron and mrs. brigitte macron and a few words. the friendship of our country and the coming together of those bilateral relationships and trying to make it stronger. then-president macron will reciprocate and thank him for the great honor. >> host: is there something that they are supposed to drink when they toast each other? or at least when they raised the glass? >> guest: it is brought out by one of the whit

donald it's me the tiny voice in the back in your head and wow, look at your secretary of commerce wilbur rosst you would get to work with the coolest people if you were president, but look who is in your cabinet. a very small man hovering around the age of 112 who does not know how to lower a microphone. [ laughter ] it looks like his eyeballs are giving a speech, and if his eyeballs were giving a speech i bet they'd say, "somebody get us out of this old ass head." no one is watching this right now saying, "oh, i wish i could switch places with donald trump, and hang out with wilbur ross, and mike pence." look what you've done with your life. you used to roll with porn stars, and now you're with boresville and snoresville. sad. ♪ [ cheers and applause ] >> seth: he is the host of "all in with chris hayes" on msnbc. our friend, chris hayes is back on the show tonight. [ cheers and applause ] how exciting is that? they are the co-creators of "billions" on showtime. brian koppelman, and david levien are here tonight. [ cheers and applause ] very fun evening planned. before we get to all that, pr

commerce secretary wilbur ross declined to identify which nations would be spared for the tariffs.e said the announced will be made right before tomorrow's deadline. indicated on friday the nations have been asked to accept import quotas in return for carefree access. terrorists -- four tariffs-free access. u.k. home secretary amber riley has resigned after claims she misled parliament on targets were moving illegal immigrants. prime minister theresa may has accepted her resignation. she was a counterpoint to brexiteers boris johnson and marco goes. kim jong-un is turning on the charm ahead of his summit with donald trump, adding pressure on the u.s. president to ease sanctions against his country you before it's made any significant concessions. korean president's spokesman says kim plans to invite foreign journalist witnessed the shutdown of north korea's main nuclear weapons test site. that came surely after kim pledged complete denuclearization at a meeting with moon on friday. denmark says it will consider boosting subsidies for electric vehicles after a germanic and embarrass

wilbur ross and navarro views are also president trump's views. >> larry kudlow's are not. that's why it's just the latest hostage video out of the trump white house. as you have people who sort of sell their principles or their values to stamp their resume with the white house position and then they're forced to go on television and contradict their own personal intellectual topics. he thinks repealing nafta -- >> his positions probably have not changed -- >> kudlow is a -- when he says trump is a fair trader right now in that clip, that's not believable. >> that's right. >> one trump has never been is a fair trader. >> that's right. >> donald trump on nafta when he said to "the wall street journal" i'm a nationalist and a globalist. it's the incoherrance inside donald trump -- >> i feel better kudlow is there so maybe he might listen to kudlow. kudlow is a very brilliant man. i've known kudlow for a long time. >> for sure, except for the fact that larry kudlow went on the -- was in the driveway and said there are companies who don't abide by the rules. i'm not saying amaz

yeah, secretary of commerce wilbur ross with his wife hillary. et a couple of drinks in him, and he's like, woo. >> but the real stars arrived earlier in the day in the form of the white chapeau worn by the first lady. it got quite a reaction on social media with comparison to looks by the olivia pope on "scandal" and beyonce. >> and the first lady says bette midler and diane keaton. >> i like that. it's working for her. i i don't own me ♪ >>> number three there. >> takin' over the world. >> it is. it's one of the hottest online streaming games around. drake is a big fan. he's spent many an entire night battling it out on fortnite. game where many have played and you can earn thousands, maybe more. >> you can earn money playing the game, but now colleges are helping gamers cash in further offering thousands. one school is offering thousands in scholarships. take a look. >> reporter: it's the international video game phenomenon drawing in over 150 million players worldwide. fortnite. and if your kids aren't playing it, they're probably watching it.

wilbur ross reiterated on cnbc the administration's view.are a negative for the u.s. economy. >> we have had a big problem with trade deficit for a long, long time. this is the president who is going to get us out of it. he's determined to go forward and this response should really not have surprised anyone. >> here is the trouble for the administration as growth increases trade deficits increase. the more growth, the more u.s. consumers import from french wines to german cars to chinese electronics. when the economy contracts imports fall that's the negative number on the left when gdp has averaged zero since the year 2000. look what happens when growth is greater than 4%. imports grow because we have more money and we like stuff from overseas. we buy everything here and then we buy everything over there that's what mark zandy says from moody's. >> you have bigger trade deficits because we are buying everything we produce and everything everyone else produces you get big trade deficits when the economy is strong. >> when president trump cam

and quoti commerce secretary wilbur ross on cnbc where he suctested that thesens are all headed for negotiations. >> i think it's very difficult to put a specific time denomination on negotiations that are as complex as rthese. orter: the people's daily posted a commentary bragging that china's tariffs, which target many agriculturalav products hit trump where it hurts and said bay gin's quick counter-attack hasaught the u.s. administration off guard. the china dily also ran a editorial saying china can't be coacced. theround of this is that president xi jinping and the communist party have been portraying themselves as a defend of chinese interests against the west. that's the image they are selling to the public in the state media and they can't be seen as backing down.g accordino the official state media that doesn't mean that the cor isn't open. according to thna daily today, if the trump administration is open for negotiations then it's time for ptrump to give the useless tariff weapon. for "nightly business report," i'm eunice eun in beijing. >>> china's proposed tariffs a rtain to impact

commerce secretary wilbur ross has also suggested that trade dispute would ultimately end in negotiations. we're going to hear more from the chinese side when president xi jinping gives an address at business forum tomorrow. he's expected to present himself as an international states man, a defender of globalization and also his speech i expected to be friendly and about economic liberalization. at the same time, most observers believe that president xi jinping won't want to prent mself or china as one that is giving in to u.s. pressure. r "nightly business report," i'm unit yoon in beijing. >>> as china a the u.s. go back and forth, regional economies and local are trying to figure out just how much financial pain they may have to endur if the threat of tariffs turns into a reality. brian sullivan reports tonight from charles ton, south carolina. >> reporter: the difficulty in talking about tradects that it im every segment of the economy. in fact, 26% of the american economy at some point comes through a u.s. seaport. like this giant containership behind us probably carrying $1 billion

wins that battle the protectionist around trump people like peter navarro the commerce secretary wilbur ross or is it those who question whether tariffs are going to. earth to us which is in private larry kudlow stephen manager of the treasury secretary or do they somehow find some compromise between those two rather different positions andrew and the young china has formally challenge the u.s. is tariff decision at the world trade organization what do you make of that response by china and why are we potentially going to see a lengthy legal battle here well of course. main contract tack is that the united states is throwing away all the all the rules over the beauty of it and china has been as storms a supporter of the deputy oh from which it benefits and that actually the first thing that john of dance is to challenge the american action under the rules now at this stage of the game i think is a game of chicken at a photo time being so the trauma administration is raising all the stakes against china's retaliatory measures trum administration seems to be doubling down on that the bones but

me as america has said what it's said and china has retaliated, already you're hearing secretary wilbur rossnd others saying, calm down. even after shooting wars you end up with negotiations. after a trade war we've got to see whether we can deal with this. because ultimately there will be a lot of losers, not many winners, if this becomes a real trade war. >> exactly. everybody says this will affect the global economy and boomerang back onto the very american workers that president trump says he's trying to help. so can i just puttoou both at this stage beforee drill do into syria and the back and forth on that, president trump not only talks about america first, but corey, he's talked about being a disrupter. at least he did in the run-up to the victory. and his -- steve bannon talked about it. but what do you think in these last more than 12 months -- has there been too much chaos? too much disruption? >> yeah, i think probably so. i think the president seems to believe that setting all of the boats rocking is invariably to our advantage. and i think that's probably not true. and it's esp

the commerce secretary wilbur ross has said some allies will be spared but not all. shinzo abe has pleaded japan's case while president macron and chancellor merkel made separate requests for the e.u. while in washington last week. north and south korea take their first steps toward a new relationship today, dismantling a banks and speakers in probe over recent years. the move was announced at the end of last week's historic takes between president moon and kim jong un. seoul is also calling for a three way summit with the north nd the u.s. in june or july. well, most markets are closed for the may 1 labor day holiday including key markets that usually trade in hong kong. mainland china, south korea, as well as singapore shattered as well. it is looking like a muted session given the fact we have the shut markets across the region. looking at new zealand this is what we're seeing so far when session. o the kiwi pretty much unchanged. a little down with the kiwi stocks, u.s. dollar extending those gains in the overnight session. trading in australia starting in about

trade secretary wilbur ross said he would like to reach a trade agreement which is trying to soon and the president's economic advisor larry kudlow question whether he announced tariffs would ever take a falcons are that's rather well for more let's cross over to frankfurt and our markets man only bart's really a sigh of relief among european investors as well. that's surely the case i don't think anybody was reckoning with such a quick relaxation of the tensions between the united states and china perhaps they were rattled by the market reactions but at least it's satisfying the nerves or it's easing the nerves of the people here in the market and. it's surprising that it is as it is that's shown by the extent of the recovery of the shares the dax here making good almost two percent and jumping over twelve thousand points lots of shares gaining quite well a potential mover of markets today the annual shareholders meeting of carmaker dime lower what will be on the agenda there. are pretty well everything when you take the share price shareholders are dissatisfied with that despite the

trade secretary wilbur ross said he would like to reach a trade agreement with china soon and the president's economic adviser larry kudlow questioned whether the amounts terrors will ever take effect. now for more on this i'm joined by york matters he is the head of the research unit of international economics at the german economic institute in cologne. you're going what will it take for this dispute to end who will give in first here what do you think. well that difficult to judge my thing to donald trump administration now try to maneuver themselves into a negotiation position with china on this topic go for an intellectual property troposphere rights and threatening terrorists is one of the options to negotiate this and might this have just been the right strategy here i mean because there haven't been other countries that have been lamenting china's trade practices and the theft of intellectual property so is good this be the right way to go this strong and aggressive position well i think diplomacy would be of the better because if you threaten something and nothing happens you have to