Transcript for Stocks plunge after China tech executive arrested
And. And welcome to the Greek Fairmont Devin Dwyer drummer political director Rick Klein Catherine folders are White House reporter great to have you with us. On this Thursday as we now say a final farewell to our president 41 former president George Herbert Walker Bush. Making his way right now the casket and family on board a train like picture of the train 4141. Rumbling across Texas through what looks to be some rain showers there. There was a family funeral service this morning in Houston. Now on their way to the bush library you can see in this live picture people turning out some really stunning images of people paying their final respects. Across the state of Texas today a thousand people earlier today at their per service. At the episcopal church of the families episcopal church in Houston. And Rick some interest in history here before we move on then in your student debit a very few presidential funeral trains. In American history in this is one of them only eight times has this happened Abe Lincoln was the first. The tradition going back to Lincoln it is it's such a throwback you think it would have happened more particularly in the nineteenth century but I think there's something so point. And essentially American about the images that we're seeing their of the training people turning them a turning out we remember famous images like RFK's funeral casket. Move moving in 1968. But it feels like a throwback couple week as well as were remembering any air a man who represented an error that could not feel further from the current era and politics of someway feels like an appropriate conclusion is as rain rumbles through Texas very well. Send and that can lead engine there 4141. Name emblazoned in the colors of Air Force One the blue in the white as it makes its way it will arrive well just in a couple hours time at the bush library in College Station, Texas. The former president's final resting place will be a part private. Family ceremony there is he's interred next to his wife of 73 years Barbara. Pierce bush much more on the bush commemoration a little bit later in the show what won a leadoff Alison big breaking news. Happening on on the markets right now let's take a live look at what's going nine. On Wall Street right now the Dow as in the few minutes ago was down. Over 400 points looks to be making a little bit of a comeback here are in the 200 range. But this on the heels of Tuesday's loss of 800 points. I swear about a thousand points so far this week let's bring in our chief business correspondent. Our Rebecca Jarvis Rebecca were all watching our 401 k's with a great anxiety it's the holidays. How concerned we need to be right now give us some context about this situation. Short so DeVon a lot of this comes back to what's happening right now. With China and US Chinese trade relations and to put into context especially what's happened in the last 24 hours. This CF followed while way which is one of the largest Smartphone makers in the world. Was. Arrested overnight. Well wait a Chinese company one of the largest companies in China. And the question now is in this delicate conversation. That the United States has banned up hard with China. Really for or for many months now but frankly coming out of the G-20 summit president trumps meeting. With China's president G. It looks like coming out of that meeting the White House was extremely optimistic about a deal we had a ninety day tier of truce on the table. But in the last 2448. Hours between this arrest as well as some of the additional. Information that we been getting from the White House Brinkley in the form a president Trump's own tweets. It's starting to look like that deal might be. Less likely and as a result of that you've seen the market. Really reacts that's why we Saudi hundred point sell off. Earlier in the week and today where we're seeing a bit of a sell off I would point go to the fact. Things have been coming back they're still about thirty minutes left in the trading session today and one of the things that's happening in the backdrop of this entire conversation. Is a question around the US economy itself. How is the US economy going to do next year and if you look at most of the forecasts in the projections. Things are really strong right now overall if you look at the numbers the unemployment rate near a fifty year low you have wages rising the holiday you brought it up at the beginning of the segment DeVon. Holiday sales figures have been coming in strong but the question is. Is this is good is it cats now part of you know you might call it optimism in the market right now I wouldn't necessarily clarified is that but the fact of the matter is. It it was looking a lot more dire earlier in the session in part of the reason. That the market is down a little bit less right now some might say is because we're getting a jobs report tomorrow from the bureau of labor as we do. Every month and this one will look back on the month of November. And by most accounts most forecasts expect that to be a relatively strong jobs report so. Wall Street investors they don't want to go into a report like that that might come out extremely positive. They wouldn't want to go into that extremely short. Because back can be really dangerous for that men and their positions but if you think about it from the standpoint of your own retirement savings or nest day where we are right now. Basically. Is that. 2018 is a wash that all of that early optimism that started the year as far as the stock market is concerned and we saw. Many days of ups and a number of record highs over the course of the year. Most of that is now gotten because of the activity that we've seen over the last three months in the market. And basically where that 401K whether retirement account is today is where was at the end of 2017 Batman. So you've you've you've sort of boosts in our spirits here are some ways of popping and about the strength of the economy and the despite the losses you're talking about. And here you're sort of giving in giving advice and good financial planner to stick it out what caused a hostile not but I thank you and ask you figure her back I was sort of stunned coming out here just glanced. On Twitter saw a headline in Bloomberg obviously the business. Business and news outlet in that there have mind that they just posted they said it's the worst time to make money in markets since 1972. I sort of a starting isn't do you do you agree with that. Well well. I mean I have to I didn't see the exact articles that have to look and see why they're saying that but I think that the point here is as follows. This year. There have Ben these high flying stocks that it took us at the beginning of the year all of these tech companies the apples the Amazon's than Netflix is the Facebook's of the world. They were the high flyers they were flying high last year this year they were these top performers. And then all of a sudden something changed. And part of that again has to do with China these are all multi national companies. They they make some or I should say most tech companies are multinational most most American companies in the S&P 500. Our major multinational companies and they make some of their money. From China and that Vick trade dispute. The more prolonged it becomes the higher cost it has on those businesses it also creates uncertainty for those businesses going in to 2019 when they think about how they're spending their money and where they're investing. When it's not clear whether there will or will not be tariffs on the table whether there will or will not be it under an agreement. It makes it very difficult for companies to plan the other thing that's happening in the backdrop here. Is that interest rates are rising. And we've now been in this environment of rock bottom interest rates for the last ten years so you could go out and get a thirty year fixed rate mortgage. If you have really good credit. For 3% well that's just not possible anymore as interest rates go up in the Fed. Has signaled that it will continue to hike interest rates. Going into next year and that just means that the cost of borrowing becomes more expensive and as the cost of borrowing becomes more expensive. Businesses spend less money and consumers spend less money and something that's really key for anybody who's watching this right now to think about is. Even if you don't have any money in the stock market. You yourself are a very important part of what's happening in the US economy right now because as an American consumer. We are spending our behavior. Actually dictates about 70%. Of our overall economic growth meaning. How we behave if we choose to buy a car or a house or we choose to shopping this holiday season or were not being fiscally responsible personally. That has a major impact on growth ahead two and one of the questions they is as more and more people watch this market even if they don't have money and it. Does seeing. The Dow dropped create a sense of last confidence and will that then translate into next year spending less money. Hence less per. Aren't a lot to think about reflect. I'm this day as we also look at our 401 k.s and let's take another live look at the Dow before we let you go it's down now about tobacco and it was down almost 500 points earlier it's coming back up that's a good sign. After the 800 point loss on Tuesday so we will hope for even a rosier picture tomorrow's chief business correspondent Rebecca Jarvis that you so much Rebecca for. Your words of wisdom and guys you know just. Does this issue of China is all the sudden reared its head at the end of the year the president has been in a dance with trying to wreck. Since he became president. But it's sort of came to a head after the G-20 summit now it's really spooked markets and it's interesting because the president said very little publicly this week we specialist time remembering George H. W. Bush and he was there at the at the at the funeral service yesterday. But he Dick where he has commented it it seems to jolt the markets and his optimism earlier in the week he called self tariff man at the beginning of the week it seemed to have had an impact in the markets the president is not really tweeting much about the stock market. Gyrations of the last couple of days that sort of played off in the background and clearly a lot of investors and a lot of money managers and watching. I want to bring in someone now who is an informal outside advisor to president trump on China somebody the president has called probably the leading authority on China its Michael Pillsbury. I joins us now here in Washington Michael thank you so much. Opt for being on your senior fellow at the Hudson Institute obviously all it'll served in the first Bush Administration you are. Well regarded as an expert on China familiar with their games they give us your take on. What the markets are trying to interpret right now the mixed signals coming from this White House where do we stand in the truce. That was announced just a few days ago in Argentina. Do Israel. I think Israel and much more optimistic than the market obviously. There is no surprise and the risks of miss mom. Chinese Foreign Ministry is just ask for an explanation and her immediate release of sort of a contradictory to demands. That are. In some sense asking to go the reason why she's Harrison's very legitimate. But I think this is a. Do you think wrong. Do you think that arrest of of that executive that Rebecca Jarvis is as times but do you think that's an accident. Simply a coincidence that this is happening at a time when when the president is doing the stance on tariffs or do you think this is part of a coordinated strategy. By the trump administration to pinch the Chinese boat with tariffs and also some other tactics with us. Shoes legal evidence is going to be presented tomorrow at the bail hearing in Vancouver. The more. Important point obviously is there is a drug administration's strategy to put pressure on China. So that the United States is not lose its technological lead in the world is pretty serious President Obama started it with the indictment of the five hackers you call. Who are hacking into question house and other companies stealing trade secrets. There's a strong desire to stop says the Chinese consenting to these talks. And agreeing to the ninety day what they call them the roadmap. It's really very positive news the relationship between president Sheehan president as what's crucial. They both if you civilly for he's each other the Chinese side has been saying for several months now that trump is smartest president we've ever dealt with. So I'm a remain optimistic about the grand strategy working. Michael Ellsbury is reclined here the president called himself a tariff man. Earlier in the week what does that mean to you and what does the message have to be to investors or consumers. About the possibility even the likelihood now inevitability. Of big tariffs really taxes. Being imposed on goods and services. Well I think the issue is how much pressure to put on China that actually works so they can make calculations of the effects the terrorists will have various levels of terrorists. But those what those terrorists will mean in terms of Chinese growth rate. Chinese losses you know they have a system of about 100 national champions. A national champions means a company that supported by subsidies. Chinese intelligence service will steal forest and bringing trade secrets. These national champions are what's at stake. And the Chinese don't like the tariffs because it affects these national champions in fact frankly the American side has said. These tariffs so far are punitive. They're not designed to protect American. Companies or industries and so was going to happen next. As the talks unfold over the next ninety days president trump could in fact increased pressure he can ask ambassador life Kaiser to start hearings. Public hearings are required by law for care support laws. For another round of terrorists much higher covering much anymore products on the other hand to be positive. If the talks go well the whole point is to have a cease fire. To reduce the tariffs and both sides have been say interval zero tariffs and zero trade barriers as the ultimate goal here so. I don't understand this. This kind of fainthearted ness of so many people in the stock. The social let me ask you Michael and about go back into the truce that you have so much optimism in that ought to ninety days part one of the terms the White House I was in Argentina. With the white house on this one they said in a statement that. President she agreed. To some unspecified amount the agriculture us agriculture imports auto imports. From the United States is part of this deal did you have any better sense of what the specifics are there or did did the US gives it significant concession from turning here. There's two important points one is president trump has promised to give a press conference. He's delayed it out of respect for President Bush's funeral arrangements. The other point is that the two sides have different versions in public. What they're saying happened at the dinner and this is very understandable on the Chinese side. There is a power struggle going on over there president she has had a number of people removed. He obviously wants to explain this and some substance as you might say sell it to his home front. And not just caught flat footed. With his political enemies criticizing him for making to link to get sessions and saw this. President comes explanation. And then president cheese further exploration when he gets home. I think you're gonna home things down considerably. How can it be an agreement if there's no paper to support it and both sides are talking totally differently about it. Good question. That's the whole point of putting ambassador light highs are in charge. Trying to seek a detailed agreement. That we'll have verification it will be specific this is what ambassador life Kaiser and his team at the US trade creditors and in his office specializes in. And he was a genius with his negotiations with the Japanese. In the eighties under President Reagan. So that's the whole point now we have these vague descriptions on both sides what they've agreed to. And bass and Anheuser is gonna produce a written legal document that will be report. And we know you'll be there all along the way Michael Pillsbury the Hudson Institute we hope you'll come back here and help us interpret that document what it. Planter and grant her says that comes out but thank you so much for coming on ABC news Lyle like flavors Indo Chinese. Okay. Very good that's more of that more than 9000 thank you very much sir I appreciate it great to have him here meanwhile guys moving on shift is is shifting gears ordered a major. I headline just a little while ago lose ABC news confirming and and matching. That the president is likely to name Katherine folders you've done this reporting. A new attorney general. Replacing the acting attorney Jerome that would occur in Tulsa it is a right. William Barr also an as bill Barr he's though former attorney general under George. I'm HW bush and what we're hearing from our sources is that. President has told advisors that he intends to nominate and we are expecting this to happen next week but as you know he can change his mind. But a loner and we're seeing picture here Bill Maher he's the guy in the lap sitting their in the Oval Office with the first President Bush served 91 to 93 Cynthia Scott knows the job he's done it. He does and I think as we were all discussing early area also has mildly am criticized. Special counsel Robert Mueller is probably remember when Jeff Sessions let's forced out nearly a month ago the main reason and the president. Never drop in this with sessions was because he recused himself from that probe so he's. Bar has the told the New York Times are there is more basis to investigate Hillary Clinton over example for the uranium. One Dielman to investigate trump for a possible ties to Russia had some in the president house to have an actor. He seemed to go bar seems to be there are pretty eminently confirmable figure he is in Washington circles scene is a serious person. But also sort of his cap to rescind a spouse is the president's views on some of these controversial investigation. Yeah he's also wrote an op Ed defending the president said the decision to fire James Cawley saying that it was very defensible based on the facts that were there. Of course call me will be testifying before house Republicans behind closed doors just just stopped tomorrow but I think you're exactly right this is a lot of different direction and then Matthew Whitaker the current. Acting attorney general would be and we've seen the stories and come out in the time that he's been serving in that job over the last month. That would have been a real struggle and there are a lot of kill Republicans W very comfortable particularly in this week of remembers Ron George H. W. Bush to reach back into the past to find someone. That that definitely knows what he be doing that job. And so if Joseph Barr is nominated and if bill bill Barr is Coastr confirmation hearings before the Mueller probe is completed he would oversee. The Muller investigation guys let's turn to that there is. There are some big developments coming tomorrow in the Mahler investigation which could give us a lot information Catherine we expect the Mueller team to do some court filings. They could reveal to us the direction of the investigation in just how cooperative. Some of president trumps former associates and where it's. We learn about his former personal attorney Michael Cohen who has been cooperating with Muller for I believe over seven thee hours so. His sentencing them now. Is two may have to submit that Moeller and prosecutors in New York by 5 PM tomorrow so that. Indeed tell the level of cooperation. On what it Cohen has been discussing the special counsel someone. That the president's the says that he now wants is a former attorney to go to prison for this but the other big thing is the president's former campaign manager. Campaign chairman Paul in a fort. I'm he was revealed that day was a cooperating witness those talks broke down. And Mueller says that he's lied about multiple topics so. The attorneys from an a for a claim that they don't know those lines of those lines haven't been dean killed to them. But tomorrow the special counsel but says those in their filing that they will lay out everything that may have. Tried as you said Rick it on it and top of that. Former BI director James Cawley will be up on Capitol Hill for one last hurrah with Republicans yeah elites and interest thing a split screen view because because combing we know is had lots of stories to tell he's been negotiating try to get this information out as publicly as possible his decision to comply with this mean it's it's it talk to house Republicans as they look to reach into the past of course what their interest that around James Toney. Is the handling of the Clinton investigation. Not the things around trump so maybe a little bit of a smoke screen we'll see how it develops. Something tells me that Muller has the opportunity to speak a little more loudly than even coherent and Republicans hearing tomorrow just of these court. Alex it's a lot to chew on tomorrow on the mall Mueller investigation we'll have a queries you're at a briefing room at 3:30 eastern time meanwhile congress. Trying to wrap up some business before they transition to the new congress in January in guys one of the biggest things obviously is funding the government. Through the end of the year in its when he nineteen they officially bought themselves some time today the senate approving the short term fix. But they still have the sticking point of the wall Rick it's going to be pretty epic on Tuesday when. The Democrats Nancy Pelosi Chuck Schumer had to the White House to meet with president from. Without any Republican since this going to be the dams and him. Talking Nancy their president in critically Nancy Pelosi the presumed next house speaker when the Democrats take control in January is saying that she does not want to see. Doc recipients tied in any way the so called dreamers stay tied in any way to wall funny says those are separate issues while that's a big. The line in the sand for her to draw right now because the president has made clear that he thinks there's a deal to be had that brings them both in. They he believes he was close to a deal with Chuck Schumer on the on the senate democratic side before Nancy Pelosi is now saying look that is not the that is not how we're going into this so. If all the talking now is is wall funny you can't imagine Democrats giving a lot of help to Republicans now and they're gonna mean a stronger position come down. And let's listen to Nancy pushy she held a press conference today before leaving town for the weekend. Here's what she had to say about that possible deal. Two different subject. What they're worth as what we want in this negotiation. I think. Can I can say and wouldn't be a surprise anybody feel like she just go in and say what they and it's December. The time we lost now and another weakening. For a legitimate purpose but nonetheless we're getting closer. Two win this seal or. Expires and puts extending it for two weeks and and and that two weeks we have to within a two week I would meaningfully be out. The latest possible and then within two weeks we had before us all of the factors all of C. Issues that we need to to make its decision. Down to how much for president trump except for his wall. Democrats want to give them as little as possible. White House wants five billion dollars where is that sweet spot going to be in the White House didn't I talked to some officials lest they don't they don't to be preparing for shut down. No they're not and say whether there's a sense that Indians have the same as the ball's really in the president's court now and even. Republicans who event as talking to up on the hill say the same you know this is really between the president and Chuck Schumer renowned detective Nancy so we'll see less and comes out of a meeting. Epic there really any kind of negotiations going on around this from a have a query here in a briefing room. I think so much for joining us they were in and today. With another look back at some of the images and sounds. This and poignant moments of the day here is as the country continues remember George Herbert Walker Bush. And we'll leave you with that from some of the ceremonies today down in Texas we'll see you tomorrow. I think he's. And he's funny. He's straightforward he's all business were working. Then beat around the bush laud them cyclone pavlik to decision. And they he's Anderson result. George Bush isn't just a president who promoted. The ethic of service long before was back. He's a citizen's life as embodied that at. And I want to thank my dad. The most decent man I have ever known. My life I have been amazed that a gentle soul. You'd be so strong. Bad. I am proud to be your son.
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