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  • >> Sandra: FOX NEWS ALERT ON

  • >> Sandra: FOX NEWS ALERT ON

  • THIS TUESDAY MORNING, ON THE

  • HOLIDAY WEEKEND AS OUR ECONOMY

  • REOPENS ALONG WITH MANY OTHER

  • COUNTRIES.

  • THE MARKETS ARE UP BIG THIS

  • MORNING ON POSITIVE NEWS OVER

  • VACCINES.

  • THE DOW IS UP 675 POINTS SO IT

  • LOOKS LIKE THINGS ARE TURNING A

  • CORNER, AT LEAST FOR NOW.

  • "THE WALL STREET JOURNAL"

  • FEATURING THIS HEADLINE THIS

  • MORNING FOR ECONOMY, THIS

  • SHUTDOWN MAY BE OVER.

  • HOTEL BOOKINGS AND THERE ARE

  • SIGNS THE ECONOMY IS COMING BACK

  • TO LIFE.

  • LARRY, GOOD MORNING AND WELCOME.

  • IT FEELS SO GOOD TO BE ABLE TO

  • TALK POSITIVELY ABOUT THE

  • REOPENING OF THE COUNTRY, THE

  • STOCK MARKET IS RISING.

  • THE S&P 500 BACK ABOVE 3,000

  • SINCE MARCH 5TH WE HAVE NOT BEEN

  • ABOVE THAT LEVEL.

  • I HAVE NOT ASKED TO PREDICT

  • WHERE THE STOCK MARKET IS GOING

  • BECAUSE I KNOW THE ANSWER.

  • BUT HAS THE ECONOMY HIT BOTTOM

  • AMID THE PANDEMIC?

  • >> I THINK IT'S POSSIBLE.

  • I MEAN I THINK YOU ARE IN A

  • TURNING ZONE PHASE AND AS WE'VE

  • SAID TIME AND AGAIN, THE

  • SECOND QUARTER IS GOING TO BE A

  • ROUGH QUARTER.

  • IT'S A PANDEMIC CONTRACTION.

  • LOTS OF HARDSHIP ON THE

  • UNEMPLOYMENT CLAIMS AND A LOT OF

  • HEARTBREAK THERE.

  • BUT THESE SIGNS, AND I THINK THE

  • MARKET IS A RALLYING ON SIGNS,

  • THESE SIGNS ARE SHOWING A LOT

  • MORE GLIMMERS OF HOPE AND GROWTH

  • AND ASSIGN SEEM TO BE MOUNTING.

  • THE CONSUMER CONFIDENCE NUMBER,

  • THE NUMBER WAS UP A BIT WHICH

  • WAS GOOD BUT IN SIX MONTHS THEY

  • HAD THE SIX-MONTH EXPECTATION

  • COMPONENT AND THAT'S WHERE YOU

  • SEE A BIG TAKEOFF AND CONSUMER

  • CONFIDENCE.

  • I THINK FOLKS SEE THAT THE VIRUS

  • FIRST OF ALL IS FLATTENING ON

  • ITS WAY DOWN AND THEY SEE

  • BUSINESS OPENING, THEY

  • THEMSELVES FEEL LIKE GOING OUT

  • AND SPENDING AND THESE ARE ALL

  • VERY POSITIVE DEVELOPMENTS THAT

  • WILL SHOW UP IN THE DATA,

  • PERHAPS IN JULY OR AUGUST.

  • THE THIRD QUARTER COULD BE THE

  • FASTEST GROWING QUARTER IN U.S.

  • HISTORY AND THE WHOLE

  • SECOND HALF IS GOING TO BE VERY

  • STRONG AS WE REOPEN THE ECONOMY

  • AND AS AMERICANS COME BACK TO

  • RECOVERY.

  • THIS IS A TRANSITION TO

  • RECOVERY, AND AS THE PRESIDENT

  • SAID, TRANSITION TO GREATNESS.

  • >> Ed: LARRY YOU ARE LOOKING

  • AT POSITIVE HOPEFUL SIGNS, AND

  • YOU HAVE SOME WE HAVE SLOW

  • WALKING ON REOPENING PARTS OF

  • THE ECONOMY PERHAPS TO HURT HIM

  • POLITICALLY.

  • THE WALL STREET EDITORIAL

  • JOURNAL, THE BLUE STATE LOCKDOWN

  • BLUES COME THE SLOW REOPENING

  • LIBERAL STATES WILL HURT THE

  • RECOVERY AND THEY SAY

  • CALIFORNIA, NEW YORK AND

  • NEW JERSEY MAKE UP 30% OF THE

  • ECONOMIES OF THEIR BUSINESS

  • CARNAGE WILL AFFECT FARMERS,

  • MEAT PROCESSORS, TRUCKERS,

  • MANUFACTURERS AND SUPPLIERS

  • NATIONWIDE.

  • WHAT'S YOUR MESSAGE TO SOME OF

  • THE STATES LIKE CALIFORNIA THAT

  • ARE MOVING SO SLOWLY?

  • >> THESE ARE STATE DECISIONS AND

  • GOVERNOR DECISIONS.

  • THE PRESIDENT HAD SAID I WOULD

  • LIKE TO SEE THE REOPENING.

  • I WANT TO SEE THE BUSINESSES

  • REOPEN AND THEN THE JOB NUMBERS

  • ARE GOING TO COME IN MUCH, MUCH

  • BETTER.

  • BUT IT'S GOT TO BE DONE SAFELY.

  • IT HAS TO BE DONE SAFELY.

  • I CAN'T MAKE THAT JUDGMENT, I

  • WILL LET THE PRESIDENT MAKE THAT

  • JUDGMENT, AND HE HAS A

  • BIRD'S-EYE VIEW PERHAPS THAN I

  • DO.

  • BUT I THINK THOSE GOVERNORS KNOW

  • THAT FOLKS WANT TO GO BACK TO

  • WORK AND FOLKS WANT TO RESTART

  • THEIR BUSINESSES.

  • THERE ARE TINY SIGNS EVEN IN

  • SOME OF THOSE STATES OF THE

  • REOPENING.

  • SO WE WILL SEE, IT'S GOT TO BE

  • DONE SAFELY AND YOU HAVE TO HAVE

  • THE SOCIAL DISTANCING, YOU HAVE

  • TO HAVE THE TESTING AND SO FORTH

  • AND NOBODY DISAGREES WITH THAT.

  • I LIKE TO SEE IT FAST BUT IT'S

  • GOT TO BE SAFE.

  • YOU KNOW, PEOPLE -- WE BELIEVE

  • IN PERSONAL FREEDOM.

  • A LOT OF PEOPLE WANT TO EXERCISE

  • THEIR PERSONAL FREEDOM AND TO

  • GET OUT THERE AND START SHOPPING

  • AND RUNNING THEIR SMALL

  • BUSINESSES AGAIN.

  • SO WE WILL SEE.

  • THE POINT IS AT THE MARGIN, WE

  • WILL BE MAKING VERY GOOD

  • PROGRESS AND WE HAVE THESE

  • GLIMMERS OF HOPE, WE HAVE THESE

  • GREEN SHOOTS.

  • TEN YEARS AGO I USED TO CALL

  • THEM MUSTARD SEEDS THAT WILL

  • GROW UP INTO A MAJOR RECOVERY.

  • I THINK THE SAME THING IS

  • HAPPENING NOW ONLY ON A LARGER

  • SCALE.

  • >> Sandra: BUT ONLY YOU AS AN

  • ECONOMIST TO THE PRESIDENT HAVE

  • BEEN PLANNING THE UNKNOWN AND

  • THE UNCERTAINTIES.

  • AND SHE DOESN'T THINK THAT THE

  • U.S. STOCK MARKET IS TOO

  • OPTIMISTIC AT THIS POINT, AND

  • WHAT HE FEARS IS THE

  • VULNERABILITY IS CONSIDERING OUR

  • SKY-HIGH UNEMPLOYMENT RIGHT NOW

  • BECAUSE OF THE PANDEMIC, THE

  • UNCERTAINTY OVER THE VACCINE AND

  • A SECOND POSSIBLE WAVE OF THE

  • CORONAVIRUS.

  • WHAT DO YOU BELIEVE ARE THOSE

  • HIDDEN VULNERABILITIES FOR OUR

  • ECONOMY?

  • >> YOU KNOW, YOU TALK TO OUR

  • HEALTH EXPERTS AND THEY WILL

  • SAY, WE KNOW SO MUCH MORE AND WE

  • HAVE SO MUCH MORE EXPERIENCE

  • NOW.

  • LET'S ALSO GO, WE ARE REALLY

  • DOING LIGHTNING SPEED THE FIRST

  • OF ALL ON THE DEVELOPER TO

  • VACCINES AND THE DEVELOPER TO

  • THERAPIES AND MEDICINES WHICH I

  • THINK ARE VERY IMPORTANT.

  • I THINK PEOPLE WOULD BE HAPPY OR

  • EVEN TO KNOW THAT IF THEY GET

  • THE VIRUS, THERE IS A MEDICINE

  • AND A THERAPY THAT THEY COULD

  • TAKE TO DEAL WITH IT RIGHT AWAY.

  • THE SCIENTISTS AND THE BIOTECH

  • COMPANIES, THE PRESIDENT HAS

  • ALWAYS STRESSED THE PRIVATE

  • SECTOR COMPONENT AND THAT'S PART

  • OF THE BRILLIANCE OF HIS

  • ECONOMIC THINKING.

  • THEY ARE PROBABLY GOING TO

  • PROVIDE THERAPIES VERY SOON, AND

  • REGARDING VACCINES, IT TAKES A

  • LITTLE LONGER BUT AGAIN WE HAVE

  • DEREGULATED SO WE ARE MOVING AT

  • WARP SPEED ON THAT AS WELL.

  • LOOK.

  • I CAN'T DOUSE EVERY RISK, I

  • CAN'T SAY THIS WON'T HAPPEN OR

  • THAT WON'T HAPPEN BUT ALL I'M

  • SAYING IS WE ARE GIVING OUR BEST

  • SHOT AND EVENTS ARE MOVING

  • RAPIDLY IN THE RIGHT DIRECTION.

  • THAT'S THE ABSOLUTE KEY POINTS.

  • >> Ed: LARRY ON THE QUESTION

  • OF MORE STIMULUS FOR THIS

  • ECONOMY, WE HAVE ALREADY DONE A

  • LOT AND IT, YOU WANT TO SEE THE

  • MONEY WASHED THROUGH THE SYSTEM

  • INSTEAD OF SPENDING AND, IT'S A

  • $450 PER WEEK BACK TO WORK BONUS

  • FOR PEOPLE.

  • WHAT HE'S TRYING TO GET AT AS

  • YOU KNOW BETTER THAN ANYONE, AND

  • THEY ARE GETTING MORE MONEY ON

  • UNEMPLOYMENT THAN THEY WOULD IF

  • THEY GO BACK TO WORK.

  • IT IS THE BACK TO WORK BONUS THE

  • SEED OF SOMETHING DOWN THE ROAD

  • THAT YOU MIGHT GET BEHIND?

  • >> IT MAY WELL BE, IT'S

  • SOMETHING THAT WE ARE LOOKING AT

  • VERY CAREFULLY.

  • SENATOR PORTMAN HAS A GOOD IDEA

  • AND HE UNDERSTANDS INCENTIVES

  • AND DISINCENTIVES.

  • THE TROUBLE WITH THE $600 PLUS

  • UP AND MAYBE WE NEEDED IT AND

  • THAT EMERGENCY.

  • TO COME BUT FRANKLY IT'S A MAJOR

  • DISINCENTIVE TO GO BACK TO WORK

  • AND WE DON'T WANT THAT, SO WE

  • ARE LOOKING AT THAT.

  • I THINK THE BASIC POINT IS

  • CORRECT.

  • I WOULD ALSO ADD THAT THE

  • PRESIDENT IS A FIRM SUPPORTER OF

  • THE PAYROLL TAX HOLIDAY AND

  • THAT'S AN INCENTIVE, BECAUSE IT

  • WOULD INCREASE HALF THE INCOME.

  • ALREADY WE HAVE DONE IT ON THE

  • BUSINESS SIDE.

  • THAT HAS BEEN SOME COMBINATION.

  • I FRANKLY DO NOT BELIEVE THE

  • $600 PLUS UP WILL SURVIVE THE

  • NEXT ROUND OF TALKS BUT I THINK

  • WE WILL HAVE SUBSTITUTES TO DEAL

  • WITH THAT ISSUE.

  • >> Sandra: AT THE NUMBERS

  • BEFORE THIS PANDEMIC HIT, IT WAS

  • WATCHING WITH CHINA.

  • CAN YOU UPDATE US THIS MORNING

  • ON WHERE THINGS STAND?

  • >> ABSOLUTELY.

  • THE TRADE DEAL IS INTACT AND OUR

  • LEADERS HAVE BEEN IN

  • CONVERSATION WITH VICE-PREMIER.

  • AT THE TRADE DEAL IS INTACT FOR

  • THE MOMENT OR SO THE CHINESE

  • SAY.

  • SO THAT'S OKAY.

  • AND WE WILL SEE WHETHER THEY

  • HAVE IMPLEMENTED ON THE SCHEDULE

  • OR NOT.

  • HOWEVER THERE IS A NUMBER OF

  • ISSUES WHERE CHINA HAS DONE VERY

  • BADLY.

  • VERY, VERY BADLY.

  • NONTRANSPARENCY HAS BEEN PUTTING

  • IT MILDLY, THEY BASICALLY

  • CONCEALED FACTS AND

  • INFORMATION'S ABOUT THE ORIGIN

  • OF THE CORONAVIRUS THAT HAS HAD

  • GLOBAL IMPLICATIONS WHICH HAVE

  • MADE IT WORSE.

  • THEY HAVE SENT THEM TO HELP, AND

  • CHINA FOR A LONG TIME WOULDN'T

  • LET US DO THAT SO WE LOST A

  • TREMENDOUS GROUND WHICH IS VERY

  • UNFORTUNATE.

  • BUT THEY ARE DOING RIGHT NOW IN

  • HONG KONG IS TAKING OVER