navarro has been on the opposite side of larry kudlow and steve mnuchin on questions of trade. as steve pointed out, it is really quite remarkable that in the white house there was a discussion of maneuvering let's say to use a less loaded word. maneuvering the value of the dollar lower certainly runs contrary to what has typically been american policy but with a wink >> so starting but not ending. so look for more rhetoric about possibly pursuing this depending on how the fed meeting next week goes. >> and larry kudlow pointing out that what the president really objects to is other countries that they themselves may be manipulating their currencies. >> and we might pursue measures there. thanks for watching "power lunch. >> "closing bell" starts right now. >>> welcome to "closing bell." i'm michael santoli. i'm here at the coca-cola post coke actually the best performer in the dow today and for this week broader mpicture is more mixed. s&p 500 and nasdaq both on track for all-time record highs as we get into the final hour of trading. we'll break it all down. >> and i'm sara e

i think larry kudlow will help alleviate a lot of the concerns. of course selling information or services into, but you have to go to the commerce department in order to get that license in as long as it's not national security, that will alleviate some concerns. but the president gave up a lot undoing them but i think overall the market will appreciate what is going on here and i do think the president is moving in the rejection. integrate combination with the progress with china. if you're openly going to get adela north korea it's going to have to involve the chinese. they're going to have to be involved in that decision print. >> the deal to lift at least part of the band on selling goods to the chinese telecom huawei, huge giant telecommunication company in the chinese very upset when they banned all sales of u.s. technology to them. that apparently was the price that the president had to pay to get the chinese to resume the talks. too high of a price? >> maybe. when she open the door it is hard to closer. there is a very fine line even the t

larry kudlow said thatjerome powell's job was safe at the moment. the trump administration's trade disputes with several asian countries, not the least china, have been a major focus for investors. earlier, the charge d'affaires of the us affairs in singapore, tommy washington intent on developing economic cooperation in the region. —— told me that washington was intent. we have a long-standing commitment to this part of the world. the us is the largest investor in asean, more than we do . —— in the .—— in the rest of . —— in the rest of asia. we have been here for over two centuries and we are committed to this region. with the free and open indo pacific strategy that this administration has developed it has an economic and business component. but many investors are confused about the economic pivot of president trump. he talks about trade imbalance and 110w he talks about trade imbalance and now you continue to have this trade dispute with china and japan and india. what is really the focus of president trump? the purpose of this i

larry kudlow >> when we come back, it is larry kudlow time. he will be live. we have an interview with the national economic council director coming up in just a few minutes. from cnbc's capital exchange event in washington, d.c., all of kudlow's latest thoughts on d , rks d e fsmaetanth feafter a quick break. "squawk box" will be right back. . >>> we were waiting comments in a few minutes from director larry kudlow he'll join kelly evans at the capital exchange event in washington, d.c. we'll bring you live coverage when the conversation begins you're taking a live look at the stage. ahead of that joined by two guests to talk about the state of the economy and what to expect when fed chair jay powell testifies before congress this week and more, seth hanlon, a senior fellow for the center of american progress and alex is a fellow at the american enterprise institute seth, start off with you, trump's attacks on the fed, they are corrosive in what way? i mean, larry kudlow has come out and said the fed will do what the fed is going to do. the president has his

gerry: i am back with larry kudlow. we talked about the reasonably good growth that you see despite headwind of particular interest rate. another headwind is the currency. the dollar has been rising since the beginning of 2018 quite strongly. talk about 10 or 11 percent against the trade basket of currencies increases cost the price of u.s. exports, it lowers the cost of imports into the us. is the dollar to strong? >> the way i look at it, the dollar has been quite steady. i think year to date it is up a little less than two percent. the dollar today on the trade business i'm using the indexes about where was when president trump took office. so i think you've had a pretty steady dollar. i think it's a very good thing indeed. we like a dependable, reliable dollar and i want to add, that there has been some loose talk about currency intervention. and the president himself decided this past week that there would be no currency intervention. he wants a steady dollar. he wants a dollar that is the world currency. but the p

speaking of the gdp and fed, we'll talk to larry kudlow in the next hour. do not miss what larry has to say about all of this. futures continue to look pretty good impressive gap up expected for both twitter and starbucks more "squawk on the street" from the nyse straight ahead. fifty years ago, humanity went to a place it had never been. a place without rivals, hostilities, or cultural differences. "the eagle has landed" that place wasn't 240,000 miles away, "one small step for man" for a few moments, it was right here at home, "one giant leap for mankind" over 4,000 people from ibm helped apollo 11 get us there, today, we are ready to take the next giant leap, wherever it may lead. is it to carry cargo...he or to carry on a legacy?? its show of strength... or its sign of intelligence? in crossing harsh terrain... or breaking new ground? this is the time to get an exceptional offer on the mercedes of your midsummer dreams at the mercedes-benz summer event, going on now. lease the gla 250 suv for just $329 a month at the mercedes-benz summer event. mercedes

gerry: larry kudlow is my guest. larry, i've known you for a while. used to be -- $22 trillion total federal debt, trillion dollar debt as far as the eye can see.have you had an epiphany? >> actually, at the risk of pushing back slightly, i've always been a spending hawk. limited government hawk. i've never felt the deficits were the issue. i think if you want to get rid of deficits, which is a noble cause, you need to grow the economy rapidly and try to limit the scope of government it is sort of been my philosophy in general. >> you going economy you sing earlier at a reasonable pace in last two years. the deficit keeps going up. it is not using and that the deficit or the debt is it? >> left, revenues are coming in, i'm looking forward to more. i like what i see in the economy and nominal gdp and so forth. in terms of the budget deal i think is what you're driving at, so our estimates are about 4 and a half percent. the deficit in scherie and 20 would be about four and half percent gdp. everybody likes to see it lower. i would like to see less spen

kudlow. david: i will. >> about how the tariffs are working. but they have really tremendously destroyed these farmers' trade relationships that -- david: i wouldn't say destroyed. i don't think they are irreperable. >> 90% down in terms of soybeans exports is pretty big. david: no doubt. >> the president can come up with tariffs but the point that should be made is trade is always a win-win relationship. the president has said time and time again we are being taken advantage of by china, these soybean farmers certainly wouldn't say that. they have built profitable careers by selling to china and tariffs have disrupted that tremendously. susan: biggest cultural export to china, that has tripled in the last two decades and because of these trade tariffs, you know, the u.s. has now ceded their market share, it's down to 31% of global soybean -- david: we have switched with brazil in terms of who has more dominance in china. stay right there. we'll be right back. quick check of the big board. the dow is now down 124 points. >>> we have been showin

lawrence kudlow of the white house. this is bloomberg. ♪ ♪ we celebrate our history, our people, and the heroes who proudly defend our flag, the brave men and women of the united states military. together we are part of one of the greatest stories ever told, the story of america. tom: absolutely extraordinary. i can't convey the level of up or over this event. i will tell you one common theme --t was out there in this ug hugely polarizing moment. everybody was dazzled by the fly over the jets, the airplanes, the stealth bombers. that was the one thing that put everybody on the same page on a rainy for the july in washington. nejra: there were stunning celebrations to watch, but this is an unusual set of celebrations. paradeving the military is not completely usual, right? tom: i can't convey the polarization here. some of it was deemed by those successful, some less successful. a stunning image of the stealth bomber in the sky. it got huge play in america. kind ofly wonder what precedent it set. right now in new yor

some question as to whether powell and company really have your back or not >> then you have larry kudlow talking about he's probably safe i mean, i don't know how much you buy. or is that a negative that he gives excellent coaching in the sporting world >> everything is great >> everything is great now you're out of here i tell you what, that wouldn't be shocking to me. i don't know if that is shocking to anybody on the desk it wouldn't be shocking to me. i think that is the focus right now. trump has gotten out there and talking about trade and he is talking he wants to reenergize the talks and right now we're focused and we shifted back over and now it's on powell and it's on the fed >> how much will they give us tomorrow >> i would say quite a bit i think what occurs tomorrow -- we talked about this back in june and all of a sudden here we are in july and this becomes a subject matter in terms are they willing to go against what the president will like or willing to cut if they cut, will it be, you know, 0.25 or .5. >> don't fight the fed, don't fight the tape s&p may be overbought. y

larry kudlow weighs in on the fed and american economy >> mexican made autos streaming across the border at a report rate what it means for trump's trade war, and going public in three, two, one virgin galactic's ipo set for blast-off. is this a game changing moment for the race to space? "power lunch" starts right now >> welcome to "power lunch." i'm scott wapner stocks down again. investors gearing up for chairman powell tomorrow the s&p 500 on pace for a third straight day of declines the nasdaq trying to snap a two-day losing streak. industrials the worst performing sector following a downgrade of 3m, and for more on all of this and what is sending the dow lower today, let's go to bob pisani at the new york stock exchange >> an important thing, scotty, here is we're down three days in a row, and this is not so much i would call searching for direction as i would say that we really need to figure out where the market is going. we're waiting for news, essentially here we're waiting to see if the fed really decides they needed to cut rates aggressively, we really need to see if there is

from ere is what top economic adviser larry kudlow said on the question before. >> jay spowell's job safe? >> yes, i believe it is. i will say that there is no effort to remove him. i will say that unequirecally. at thent time, yes, he's safe. >> reporter: there was a in nite attempt by congress the federal reserve act passed originally in 1913 to give the fed independence by making it difficult though not impossible for presidents to fire chairman and governors once in office. the idea, kp the politicians from pumping up the economy throughet my policy for political purpos . it wwritten, the heyday of central bank independence lies behind us. in aorld of rising populism, esw interest r and bloated central bank balance sheets, independent monety policy looks outdated. kudlow said he believes in fed independence, but -- >> that word "independent" rate from an they o another planet. the fed reports to acongress,nd that's in the --n i the constitution, and the fed is appointed, or the governors are appointed by the president. so i thi that in a day-to-day sense certainly they're indepen

joe: that was bloomberg's jonathan ferro speaking with larry kudlow earlier today. joining us for more on today's jobs report, martha gimble, research director at the indeed hiring lab, and international team of economists. martha, thank you for joining us. your take.rious larry kudlow doesn't believe the phillips curve relationship exists between unemployment and wages. it feels like a lot of economists are coming around to that view. when you look at the data out there including today's wage numbers, is there a case that it is just not that simple? martha: i think there's been a lot of discussion about the phillips curve over the last two years and in some ways it is a similar story. we've had so much room to grow. we are still waiting for wage growth to pick up again. we saw a lot of fiscal stimulus last year and that helped accelerate wages. we are seeing that starting to be withdrawn and that wages are starting to hold steady. romaine: do we need to see that wage growth completely across the spectrum? if you go into some of the ,ndustries that have lagged those

fed chairman jay powell testifies tomorrow on the hill and kudlow with our kelly evans at the capital exchange event this morning making a ton of news. >> closing the deal. ibm's $34 billion acquisition of red hat has closed both ceos will be with us in just a moment. >> as we said, pepsi beats the street, strong snack and beverage sales backs the 2019 forecast hugh johnston will join us straight ahead. >>> futures lower ahead of tomorrow's capitol hill testimony by fed chair powell. moments ago at the capital exchange event in washington, larry kudlow offered his views on the fed to our kelly evans. take a listen. >> price signals suggest as they have all year going back to last autumn that last policy move in december was unnecessary and i think they could take it back. price level stability, steady dollar, is what the fed should aim for in my view >> among the things he said, defended a rate cut this month, said no effort to remove powell at the president time. mnuchin, lighthizer may go to china. >> larry is the happy warrior in this era everything he said made me feel better, mad

i was surprised t hear larry kudlow say just get three for one. >> kudlow also said it's a miracle the economy has done what its done with the fed that keeps raising rates and tightening. so when you look at it like that , also, apple, maybe as the president said, could announce a deal to produce their product in the state of texas, right here in the united states. connell: yeah and of course the china talks getting underway in shanghai. expectations are relatively low anyway thanks for joining us. >> thank you for having me. connell: we'll watch at 5:00 every weekday morning and bulls and bear starts right now. david: what a way to start the weekend, take a look at this brand new record close for the s&p 500 this is the 13th record this year, and the nasdac also ending in a new high for the ten th time this year, that is a good thing. meanwhile, markets are driven higher by a solid gdp report today the economy surging by 2.1 % in the second quarter though that was stronger than expected the president said moments ago it could have been much higher. listen. president trump: the federal

that is about as much detail as we got from larry kudlow. sort of an of the picture saying these talks will continue, whatever they do continue, sort of in the short, soon coming there, theyfrom have a lot of work to do, but they were testing this as optimistic saying this is -- they were casting this as optimistic, saying this is maybe bullish for investors. that kudlow -- they sort of switched roles. these are guys who have differing views on trade. warningtruck a bit more by saying that we still have core issues to deal with, intellectual property, nontariff barriers, transfers of technologies. he is saying we are moving in the right direction and have taken steps to cool things down with china. china now has to take steps also, but this is a road ahead will. interesting that navarro was so optimistic during the trade talks given that he was nowhere around during that g-20 meeting. but he was very bullish on the stock market. take a listen. >> i'm here today to tell you we .ill get to 30,000 on the dow we cut interest rates and move forwa

what is your response to comments from kudlow? >> sure, and look, i agree, i love larry kudlow. the guy is fantastic, but you know, he has a job, a boss, a client. he is out the -- party line of current administration, i think you are right regardless of political party of person in oval office in moment those of us in senate and house have an abgation tab-- obligation to lok long-term, and beyond party politics this say problem, and we're fooling ourselves if we say it is not. guy: it does not come close to dealing with long-term obligation, to something happier, your book, tell us about your new book. >> i wrote "our lost declaration" i want to help reconnect american people to principles underlying founding of our great country, we don't fly union jack and we don't sing god save the queen, this was accepacceptance of the human so, the. it tells stories of american revolution that were underlying declaration of independence. guy: you have these historical anecdotes in the book, you say forgotten stories, people may be wondering, history buffs it is interesting, but what is the

i think we will get more clarity once they start filtering through these applications which, as kudlow said, are more voluminous than expected. emily: major moves in the chip industry. mark, you have been reporting on apple's interest to purchase a ship unit from intel. news is applest is in discussions with intel to acquire its modem team. modem are the chips inside of phones that connected to the data, so you can use it not on wi-fi. it is arguably the most important part of any phone, many tablets, smart watch. havewould require apple to -- would allow apple to have more engineers which would jumpstart their efforts to build a modem for new iphones and basically cut qualcomm and other suppliers out of the equation for that really key device. , tom giles,gurman jenny leonard, thank you all. . snapchat's growth accelerated in the second quarter. details on the latest earnings report, next. this is bloomberg. ♪ emily: robin hood markets has posed a new round of funding that values the company at seven $6 billion. robin hood became popular with millennials for allowing people to trade

and he says that there is room to take back that december rate increase we'll talk with larry kudlow about all that coming up >>> also, sir richard branson making a big and soon to be public bet on sending lots of folks into outer space can putting john q. public into orbit be a money maker >> plus, there's a wall street dog fight over chewy, and then instagram wanting to help you be less snarky and mean we have very snarky and mean people on rapid fire as we get ready for the exchange for this day. speaking of which, dom chu is here to bring us up to date on the day's market action. >> am i supposed to be snarky, mean, or both? >> you be the snarky one >> i'll be the snarky one. a little snark so far in the markets today. not a whole bunch. a bit of a mixed picture the dow industrials off their worst levels of the day, but still off by about 90 points one third of 1% of the downside here just about flat. we recovered quite a bit in the s&p 500, but the nasdaq is, as you can see here, the check mark goes up the one third of 1% nasdaq composite the dow industrials, 3m is 28 points of

listen to what advisor larry kudlow had to say. larry: with respect to the additional licenses where there are no national security implications, they have applied, and all they ask is we speed up the application process, and of course we agreed. emily: do we know any more about how that meeting went, the meeting between the white house and tech companies? jenny: what we know is that the president showed up. it was just supposed to be larry kudlow and steven mnuchin, and the president dropped in, talked to the executives, heard the case they have made to wilbur ross before. he agreed to speed up the process. interestingly, we heard today from wilbur ross that it is not a piece of cake to go through a bunch of exclusion requests or license requests and hand them out. he was kind of walking back a little bit the optimism we heard coming out of the meeting from larry kudlow and yesterday, the white house spokesman. the president agreed to speed to that -- it up. it is not that easy. the readout is that it was a positive meeting. it wa

we will ask larry kudlow. he's at the top of our 11:00 hour this morning. >>> president trump holding a made in america showcase at the white house, highlighting all the products made right here in america. you will see it live. >>> and new orleans dodged a bullet from barry, but the storm still has dumped a lot of rain on the city. we have a report from the city coming up for you. "varney & company" just getting started. hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands? dto experiencer gthrilling performance. now, at the lexus golden opportunity sales event. get 0.9% apr for 60 months on all 2019 models. experience amazing at your lexus dealer. in an emergency, who do you want by your side? a new proposal in congress want

we asked larry kudlow this as well. >> the fed meets next week, big meeting, widely expected cut rates, really question maybe is whether it's a quarter point or half point cut. what would you like to see? >> well i will say the market is expecting three 25 basis point rate cuts between now and year-end. that's the market, okay? my own personal view and the fed is independent and i'm not going to preach, they're going to do what they do and so forth, i would just say the sooner the better. >> chris it's pretty much baked in we'll get one next week, but with 2% gdp in the second quarter are we still going to get three before the end of this year? >> well that's going to be the big question right? is the fed data-dependent, that keeps coming back, or are they seeing something again trying to get ahead of something that nobody else sees right now, because when you're at a 50 year low unemployment and record high stock market prices, earnings are good, earnings came out good , why do we really need this cut? so i think that's the problem but they cut too much it could spook the market actua

larry kudlow says that for now, these discussions will be by phone. his optimism over a trade you have not stopped president trump deal has not stopped president trump from loving accusations against china and vyingu -- le accusations against china and the eu. nejra: we talked to mark mobius about what he thinks about merck and see -- currency tuition. -- currency manipulation. joining us now is luca paolini from pictet asset management. how high a risk do you see the threat of currency manipulation globally? luca: i don't think this is the main issue. since the global financial crisis, almost every government used to slip into get out of -- used this to get out of inflate -- deflation. i think it is pretty much about politics more than substance. course --l, guess, of yes, of course the rhetoric sometimes does not match with one on with the treasury department. i have mark mobius, -- had mark mobius, who says he thinks the chinese may have used the currency as a weapon. do you think the slight strengthening, do you think they have held off letting it

kudlow says he still believes they can get to 4%. there are many skeptics especially when you look at revised q4 over q4 number, just 2.5% last year. neil: what they're saying it is the fed's fault, not theirs? >> federal reserve, an anchor wrapped around our neck. seven rate hikes under the president. president obama had rate hikes. -- cuts. we had rate hikes. neil: we have some, i say the camera adds 50-pound. they see me in person, they say no, it doesn't. thank you very much. good to know that is the latest excuse de jure. new record for the nasdaq, briefly. google contributing to that right now. announcing obviously better than expected numbers, also on earnings, revenue front, buying back $25 billion worth of its own stock. but it is, one of the few tech giants doing really, really well today. a lot of the tech indians carrying us into this record territory here. alphabet, parent of google doing very, very well. up better than 10% of the pricey issue up better than $118 a share. jackie deangelis and much more. >> camera adds 10

the president's top economics kudlow, terry -- larry praised congresswoman alexandria causey accord has. they appear to find common ground. he said, you are right. the phillips card -- phillips curve trade-off does not exist anymore. that is news breaking. she got it right. he confirmed the phillips curve is dead. the fed is going to lower interest rates because we are growing rapidly without any inflation. i look forward to supply-side discussions. >> larry kudlow also tried to diffuse work -- tried to diffuse rumors the president wants to replace fed chair jerome powell. unemployment ratings have fallen to a new low. an employment rate among people eligible for benefits held at 1.2%. global news, 24 hours a day, on air and on tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. ♪ life from bloomberg world headquarters in new york, i'm shery ahn. alix: live in toronto, i am amber. but them to bloomberg markets. we are joined by our bloomberg and vmm and bloomberg audiences. hear the stories we are fol

-- to solve the trade war, according to larry kudlow. we spoke to mark mobius. >> the currency weapon has been on the table for some time. as you know, the chinese have used this weapon. it's interesting that maybe in preparation for this next meeting, the chinese about their currency to get stronger against the u.s. dollar. >> deutsche bank's overhaul plan could reportedly cost as much as 5 billion euros. the financial times is reporting it could tip the german lender into a loss this year. the strategy may be unveiled as soon as this week. and familiar face is leaving the race to replace christine lagarde at the imf. 2-to-1arney is at odds to get the position. global news 24 hours a day and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am sebastian salek and this is bloomberg. francine? francine: thank you so much. breaking news on oil. i don't know whether it is having a direct impact on the price of oil. saudi and kuwait making a breakthrough in the neutral zone oil talks. this

larry kudlow and others say usmca could be pushed to the fall. i don't want to see that but it may happen. charles: what happened to chewing bubble gum an getting important things done. >> when they have 84 investigations into everything to do with president trump, his finances, going over the entire mueller investigation, et cetera there is not much time left for other business. frankly for the american people. that is an issue. charles: it should be an issue. liz, have a great weekend. >> you too, charles. charles: we're awaiting president trump. he will speak in wisconsin any moment. we'll bring it to you when it happens. before the president headed to milwaukee he gave strong words of support, drum roll to nancy pelosi. why president trump is coming to the speaker's defense next. welcome to the place where people go to learn about their medicare options... before they're on medicare. come on in. you're turning 65 soon? yep. and you're retiring at 67? that's the plan! well, you've come to the right place. it's also a great time to learn about

but that doesn't mean that they shouldn't listen to advice from their elders >> trump and kudlow both in their 70s, j powell in his 60s bob, as a market participant what do your clients make of president trump just hammering powell over and over again, but then larry kudlow coming out today and saying he's safe >> let's start with the kudlow comments i think that larry said it right. there are checks and balances in our system the fed is appointed by the president but then they report to congress. i love that listen to your elders you could reads it different ways i listen to my elders, they have wisdom from time to time sometimes they have wisdom, sometimes they don't i think that's how the fed would proceed. meanwhile the president loves to bash the drum on the feds as often as they can. i hope they stay independent in their minds. >> do you think they are independent. >> no. i would say every day it gets worse. he would have to be inhuman not to feel the effects of what's going on inside him. the president made it clear, he's jealous of countries that can press the button on moneta

you wonder how i knew ♪ ♪ about your plans to make me blue ♪ >> stephen: wallace continued to drag kudlow kicking and screaming into reality. >> how long is president trump prepared to wage this trade war with china, which clearly has cost to the american economy and consumers and businesses? >> well, i don't know. i mean, can i substitute trade negotiation for trade war? >> stephen: no, you can't. nice try, though. i know why you want to change it, because it makes it seem less dangerous. there's a reason why no one went to see: "avengers: infinity negotiation." ( laughter ) now, ultimately, kudlow did admit that americans will pay for the tariffs, but this morning, trump disagreed, tweeting, "their is no reason for the u.s. consumer to pay the tariffs, which take effect on china today." and there is no reason to use that "their" in that there sentence. and, again, it's not-- ( cheers and applause ) and, again, it's not true. we pay. maybe that's a good thing. maybe it is a bad thing, i don't know. i understand economics as well as donald trump does. i bet if i tried i could lose $10 bil

, larry kudlow is soft peddling this. he says there is no need for speed, although secretary of treasury mnuchin and the trade chief robert lighthizer have spoken to chinese officials, no firm plans for a meeting in person. that will come at a date to be determined. the biggest thing is china has basically laid down the law, that theviews known commerce ministry officials said if the two sides are to reach a deal, or impose tariffs, must remove, and that is a hard line for the u.s. to cross. lighthizer and some of the other trade hawks in the administration want to see the tariffs continue on china as a key element of enforcement, once any deal is reached. don't know whether to say it is a blind alley, but there is a long way to go. i think president trump would like to see a deal. been cheerleading the stock market as it has made new hires, and that is tied up with china and the u.s. making progress, so that is one factor pushing towards a deal, very hard talks still to happen, i think paul:. ,loomberg washington editor

. >> and certainly this morning larry kudlow comes out on the white house lawn and says basically there have been seven interest rate hikes we had to deal with, it has been a headwind for us. it has been much harder than it would otherwise be to get a 2.1% gdp print in the face of those interest rate hikes. he said, with respect to mr. powell, not a fan. >> no, that's right. i think the president's going to continue to drop to the fed, but let's be clear as far as fed independence go. it is not new. presidents have been doing this to the fed for decades and decades. i think the fed is going to do what they're going to do regardless of what the president says i think they will focus on ecb, you have the race to the bottom. they have to keep pace unless they want the dollar to go crazy. they will point to inflation if you look at unit labor cost for example, productivity has gone up, unit labor costs have come down. typically it leads core inflation. i think you will see moving into the second half of the year is inflation continue to miss the fed's target and it gives him additional cove

kudlow: there was headway last winter and spring, and then it stopped. hopefully we can pick up where we left off but i don't know that yet. our team, ambassador lighthizer, secretary mnuchin are exploring all of that. discussions today went constructively. too soon for details. shery: when it comes to secretary mnuchin and ambassador lighthizer, they seem to be two opposing views within the trump administration. who has the president's ear at the moment? the dubs or the hocks? dr. moore: i think the hawks at the moment. the president continues to say he loves chaos. he loves to have diverse opinions coming his way and he makes the opinions. it comes down the trade representative and the secretary, the president makes it clear that he accepts all of those positions in making certain decisions and how he will play this trade game. paul: our last guest earlier this hour, anna han of wells fargo, was very optimistic on a trade resolution, seeing one by the end of the year. you have been involved in this process before. you have negotiated trade deals with j

larry kudlow is speaking right now, making comments on this. i'm not sure if we can listen in to what he is saying. if we can, that would be fantastic. here we go. last year to 2.5%. one, does this show that tax cuts or maybe not as excess will and the economy -- successful and the economy not as hot as the administration has been saying, and second, do you still believe gdp for 2019 will hit 3% or above? >> i like what we see for the second half, because as we cross over to the third quarter, we are almost to july, pretty big numbers in retail sales. that continues the consumer boom . as far as the business side, very strong increases in what durablel core capex, goods excluding aircraft. i like that, and i think we are in pretty good shape for the second half of the year. regarding the first part, look -- in terms of the historic revisions, we are at 2.7% or 2017 and 2018, and that is a bit lower than 3%, i get that. on the other hand, the prior administration, their performance was 1.9% annually, so we are running 40%, 42% above that trend l

larry kudlow on several morning shows tried to clarify. i watched all of it and i couldn't make heads nor tails of it. he doesn't know what the president gave xi jichk ping and he put his own teams on it. what we're seeing here is the president focusing on the optics. that's not to say the optics are nothing, but the optics are clearly not everything. what we, again, see is the president giving concessions. concessions are to be given if we get something in return, but basically what we're seeing is bad negotiating and, you know, we can always hold out hope that in the end this will turn out to be a great deal. i still hold out that hope. indications are that deal making is not going well. >> common thread is optics. >> no surprise there, but look at some of these optics of president trump with these leaders of countries where at best democracy is questionable. listen to some of what he said about his relationships with these world leaders. >> crown prince of saudi arabia, friend of mine, he sent me a very beautiful birthday card. >> we ha

kudlow is looking for the chinese to buy agriculture. the chinese want to see technology sales to huawei start again. china want huawei to be removed from the blacklist all together. that is something the u.s. is unwilling to do so far. signs are showing further weakness in the chinese economy where our economy here in the u.s. shows fundamentally being strong. also reports that roughly 50 companies are moving out of china, or considering to move out of china with their supply chains, moving to other countries. we heard that from federal reserve chairman jerome powell and treasury secretary steve mnuchin. we're talking about big companies like apple, dell. also other companies like skechers. back to you, connell. connell: let's talk about this with foxnews.com columnist liz peek and kaltbaum capital management president gary kaltbaum, both fox news contributors. we had a jump in the market when the news came out this afternoon. i don't know by the fact that these guys are heading to shanghai next week makes it more likely we'll get any d

the president's top economic adviser larry kudlow discusses strength of economy. >> consumers were the hero, they had explosive economic growth, i guess better than 4% at an annual rate. we had an inventory correction, which took a point off that probably bodes very well for the second half. we're seeing core cap orders really starting to steam up in may and june that's great. also retail sales in may and june, that's good. >> for more let me bring in craigical lan. mike is chief economist at jp morgan our own steve liesman is here as well look, 4.3%, phenomenal confirmed by so much of corporate america in earnings today as well. are people saying that's sustainable? >> i think the way to think about all of this quarter is as a rebounder or reaction to last quarter. there are so many categories where there's been this reversal on the downside inventories, investment, and net trade all reversed from negatives -- strong positives in the first quarter to negatives in the second quarter and the counterbalance to that, the reason why we have this stronger growth was the consumer who went fr

still strong, we could have a china deal and you can catch jerry baker's full interview with larry kudlow by the way tonight on wall street journal at large at 9:30 p.m. eastern time, it's only here on fox business. meanwhile you'll get $1,000 just for being born and it doesn't end there. 2020 candidate and senator corey booker, proposing a massive government handout, to tackle wealth and equality as he sees it. details, coming next. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. we're the tenney's and we're usaa members for life. call usaa to start saving on insurance today. and we're usaa members for life. as a doctor, i agree with cdc guidance. i recommend topical pain relievers first... like salonpas patch large. it's powerful, fda-approved to relieve moderate pain, yet non-addictive and gentle on the body. salonpas. it's good medicine. hisamitsu. we're changing what's possible every single day., and if you run a business, that m

the president actually asked kudlow and those guys and the treasury department and those guys, steve mnuchin runs the treasury, now mark calabria who runs fha, those are all the players involved in the reform of fannie and freddie which is part of the government since the financial crisis, and we have been taking all their profits, okay. so they're looking like how do we get rid of this from being part of the government where it can affect the government in the future if they blow up, what we do know is this. we are getting this from people close to the treasury department. the privatization notion is not going to happen. they don't believe -- liz: really. >> they don't believe these two agencies can exist as private companies. the stock is going down on this. why is that? because listen, these are companies that would not exist without the government. if you put it out there as a private company, the chances of fannie and freddie being able to borrow cheaply, buy mortgages from banks and then sell those mortgages, it's not going to happen because they borrow cheaply precisely becaus

still strong, we could have a china deal and you can catch jerry baker's full interview with larry kudlow by the way tonight on wall street journal at large at 9:30 p.m. eastern time, it's only here on fox business. meanwhile you'll get $1,000 just for being born and it doesn't end there. 2020 candidate and senator corey booker, proposing a massive government handout, to tackle wealth and equality as he sees it. details, coming next. my insurance rates are probably gonna double. but dad, you've got allstate. with accident forgiveness they guarantee your rates won't go up just because of an accident. smart kid. indeed. are you in good hands? with tough food, your dentures may slip and fall. fixodent ultra-max hold gives you the strongest hold ever to lock your dentures. so now you can eat tough food without worry. fixodent and forget it. join us for a walk? i'd love to, but my legs and feet are so tired and achy. walter, you need revitive ! it's the circulation booster! it really got me moving. i use my revitive every day! to relieve my aching legs and feet. it's so easy.... drug free....

larry kudlow, i'm sure he is familiar with it. don't miss that conversation at 2:30 p.m. london time. this is bloomberg. ♪ hey! i'm bill slowsky jr., i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. nejra: bloomberg learns that deutsche's u.s. cuts will stretch far beyond equity and rate divisions. you investors get set for today's job number. and a slowdown at samsung. operating income plunges at the world's biggest mobile phone and chipmaker. welcome to "bloomberg: surveillance." let's get a check on

selina: type white house economic adviser larry kudlow says he expects u.s.-china trade talks to be back on set soon, while the first have not had face-to-face negotiations since may come although officials have resumed talks on the phone. xi jinping have agreed to provide contact with a medical g20 meeting last week. the u.s. had held off on imposing extra tariffs for the time being. on thelow: they are phone, the leaders, senior sides, on both investor lighthizer, secretary mnuchin for the usa, they have been on the phone, they will be on the phone this coming week. i think a face-to-face meeting is in the cards. i do not want to get ahead of that story. selena: five people were arrested a small group of protesters clash with police in hong kong late on sunday night. earlier, tens of thousands marched against the government's controversial extradition bill. they moved to the city's new high-speed well with china. the chief executive terry lam suspended the bill, but protesters want it withdrawn. a landslide victory over jeremy hunt in the race to be the nex

here's kudlow yesterday talking about what we should expect on friday, cnbc. take a listen. >> yeah. >> i wouldn't expect any grand deal. i think talking to our negotiators, they're going to kind of reset the stage and, hopefully, go back to where the talks left off last may. leland: hopefully go back to where the talks left off last may is not exactly an optimistic we're going to really twist the chinese arms, and they're going to capitulate. >> well, what's going on is that the chinese, the beijing government is just impossible to deal with. they keep going back on deals. one day -- leland: but that was president trump's wholesales pitch. he said i can make these people deal with me. i'm the great negotiator. >> well, right. and i'm glad he's doing in the. look, i'm a free trade guy. you've known me for a long time, but i do believe he's doing the right thing in getting tough with china. i've been saying i do think they are going to get a deal by the end of the week. these tariffs are really hurting the chinese economy. their economy's slowed down, is so i'm