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what was the White House trying to accomplish here with this news that came about right after my mad dash at 9:30 okay I think it was a genuine olive branch something it allows the Chinese government to save face start buying some American hag products he stuck it to them right after this with of course of Tweety you know what they they need to buy some pork they desperately need it because of a kind of a particular kind of swine flu it's proving very difficult to eradicate you can check that with so lettuce they know all these things second it gives the companies that we're about to get slapped with the 10% tariff more time to move their manufacturing from China literally to anywhere else Vietnam India it doesn't matter as long as it's not China ABC anybody but China third and perhaps most important it gives President Trump cover to strong-arm our man Fed chief Jay pal he's not really our man I'm not just kidding my head into cutting interest rates more aggressively tariffs are inflationary we just got a Consumer Price Index this very morning it was a little too hot for pal 0.3% even as real average hourly earnings decreased by 0.1 percent over the month of July no one talked about that number I thought it was staggering they wages decrease so much for inflate wage inflation well be 10 percent tariff on all sorts of goods would have pushed consumer prices up even higher now Trump can use this the way to show pal or great power browbeat pal that there's no real inflation which will give the Fed more leeway to cut rates look for some tweet saying that probably tomorrow put it all together and you know what you got you got a vicious short squeeze where everything that was hated is now loved and everything it was love there's now this light that I said I didn't say hated there because the stocks that benefit from the stay of execution were big enough to help lift the whole sp500 now I got to tell you I think he could get worse for the Bears before it gets better China now needs to contend with a slowing economy and these militant protests in Hong Kong that have now shut down the airport for two days in row you know what I have a hard time imagining a scenario where all this ends peacefully I think China may need to send in to PLA that's the People's Liberation Army and if that happens they'll be fighting a two-pronged war a trade war with us and a real war in Hong Kong in that case I'm betting the Chinese won't give in at least on agriculture and do some there's ample opportunity here seeing as there are a bunch of calls scheduled between both sides now I'm always telling you that the hardliners the Trump administration have more influence on trade policy I would see this as a big loss for them although it is a loss see these tariffs are only delayed until December they're not cancelled if China refuses to come to the table though end up going into effect as far as the hardliners are concerned that's almost inevitable because they don't believe the Chinese are willing to make any concessions at all I disagree but who am I just a TV guy let's go back to the original premise coming in today's session the Bears expected the assault on the tenure to continue with the yield heading toward 1.5 percent a ridiculous instead because of the stay of execution on new terrorists the yield of the tenure actually went up and all the traders have been keying off the bond market and they use this algorithmically they had no choice but the buy stocks or cover stocks if they were short the bottom line the next time you're terrified that everything is falling apart and the stock market's about to roll over remember that we have a pro stock market president who's willing to take action to turn around the averages maybe that's unfair to the Bears but it's fabulous for the Bulls which more than likely includes you judge cnbc.com you
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