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  • STOCKS CLOSING LOWER,

  • SLIPPING FROM ALL-TIME HIGHS.

  • JOE: "WHAT'D YOU MISS?"

  • THE TAKE ON THE

  • ELECTION, FISCAL STIMULUS, AND

  • THE FED'S NEXT MOVE.

  • WAYS IN ON MAGNUS

  • THE ECONOMY AND TRADE AFTER THE

  • BREXIT VOTE.

  • WASHINGTONPDATE FROM

  • , GOING DARK IN COLORADO AND

  • PENNSYLVANIA.

  • SCARLET: WE BEGIN WITH MARKET

  • MINUTES.

  • STOCKS RETREATING FROM RECORD

  • HIGHS.

  • HOUSING STARTS BEAT ESTIMATES,

  • , BUT ITER THAN EXPECTED

  • IS THE COMMENTARY FROM FED

  • OFFICIALS THAT MAY HAVE CHANGED

  • THE TONE IN THE MARKET.

  • JOE: SOME OF THOSE SAFETY YIELD

  • PLACE LEADING THE WAY DOWN

  • TODAY.

  • OLIVER: I'M GOING TO START WITH

  • THAT.

  • TO EMERGE,LEAR STORY

  • LOSSES IN UTILITIES AND

  • TELECOMMUNICATIONS STOCKS.

  • GROUPS THAT HAD

  • SUPPORTED THE MARKET FOR SO

  • LONG.

  • WHEN THE EXPECTATION FOR

  • RATE HIKES ARE NOT CHANGING TOO

  • MUCH, WE SAW A BUMP UP IN NEXT

  • BREAK, BUT NOT A HUGE AMOUNT.

  • LOOK AT THE HEALTH CARE SECTOR,

  • , ONLY FOR STOCKS IN

  • THE INDEX WERE OF, MANY LOSING

  • 2%.

  • OIL VERSUS THE ENERGY STOCK

  • INDEX, A BIT OF DIVERSIONS.

  • -- OF DIVERGENCE.

  • TWO HAVEEE WHERE THE

  • SEPARATED, A BIG JUMP IN OIL

  • TODAY, NOT QUITE AS BIG IN THE

  • ENERGY STOCKS, PRETTY FLAT

  • DESPITE THE GAINS.

  • ON THE GOVERNMENT BOND

  • MARKET FRONT, THE SPREAD TO

  • BETWEEN THE TWO-YEAR AND THE 10

  • YEAR, DROPPING A LITTLE BIT.

  • SOME INTERESTING STUFF WITH THAT

  • PRINT,Y WEAKER CPI

  • CAUSING SOME FLATTENING, THEN

  • THE FEDS DUDLEY CAME OUT AND

  • SAID A SEPTEMBER RATE HIKE IS

  • STILL ON THE TABLE.

  • DIP WAS THE KEY EVENT OF

  • THE DAY.

  • SCARLET: THE YEN STRENGTHENING

  • PAST 100 FOR THE FIRST TIME

  • BREXIT.AGG SAID --

  • AS JOE MENTIONED, LOTS OF

  • QUESTIONS OVER WHAT THE FED DOES

  • NEXT, WITH THE BOJ DOES NEXT,

  • WHEN IT COMES TO MONETARY

  • POLICY.

  • POUND RECOVERING FROM A

  • ONE-MONTH LOW.

  • YOU CAN SEE THE SLIGHT MOVE

  • HIGHER.

  • THERE COULD BE AN INCREASE IN

  • CONSUMER PRICES, AND WHAT

  • INTERPRETATION THE IS THAT THERE

  • IS LESS JUSTIFICATION FOR THE

  • BOE TO EASE.

  • CHANGE.A CHART OF DAILY

  • BIG OUTFLOWS ON FRIDAY,

  • SIGNS THE ENTHUSIASM FOR GOLD IS

  • FIZZLING.

  • WE HAVE SEEN A BIG RALLY AND

  • OIL LATELY.

  • NEARLY 2% TODAY.

  • THAT CHART EXPLAINS A LOT.

  • SCARLET: THOSE ARE TODAY'S

  • MARKET MINUTES.

  • JOINS US NOW.MAN

  • QUOTE AND GET A

  • RIGHT INTO THE BIGGEST STORY IN

  • THE WORLD, THE ELECTION, WHAT IT

  • MEANS FOR THE ECONOMY, DONALD

  • TRUMP WAS RECENTLY QUOTED IN AN

  • ARTICLE IN THE NEW YORK TIMES.

  • WE HAVE THE QUOTE HERE.

  • IF WE CAN BRING IT UP, THIS IS

  • IT.

  • SAYING WE NEEDY

  • TO SPEND MORE.

  • POP. CALLED PRIMING THE PROMPT

  • TO SOMETIMES YOU HAVE TO DO THAT

  • A LITTLE BIT TO GET THINGS

  • GOING.

  • WE HAVE NO CHOICE -- OTHERWISE,

  • WE ARE GOING TO DIE ON THE VINE.

  • THIS, HE IS RIGHT.

  • IT IS PRETTY MUCH BY ACCIDENT.

  • IT IS TRUE.

  • I THINK I UNDERSTAND.

  • MY STRONG GUESS IS THAT

  • HILLARY'S ECONOMIC ADVISERS

  • WOULD LIKE TO PROPOSE MORE

  • DEFICIT SPENDING, BUT THEY

  • FIGURE IT IS PROBABLY NOT A GOOD

  • THING TO SAY BECAUSE THE PUBLIC

  • DOES NOT LIKE THAT, AND SO SHE

  • IS BEING CAUTIOUS.

  • SPENDING,FRASTRUCTURE

  • WE NEED MORE.

  • >> HOW DO YOU COME TO THIS

  • HE CAME TO THIS

  • WITHOUT THE RIGHT REASONS?

  • ECONOMICS, HE HATES CHINA

  • AND TRADE.

  • EVERYTHING ELSE, HE IS FOR TAX

  • CUTS FOR THE RICH, INCREASES FOR

  • THE RICH, HE IS ON ALL SIDES OF

  • IT.

  • THIS WEEK, HE IS SAYING THAT'S

  • WHAT HE WANTS TO DO, BUT THERE

  • IS NO ACTUAL PLAN.

  • WHAT DOES HIS HISTORY

  • OF BORROWING AND SPENDING TO

  • BUILD HIS EMPIRE TELL YOU ABOUT

  • HOW HE WOULD APPROACH THE

  • NATIONAL ECONOMY?

  • >> WE HAVE THIS ILLUSION THAT

  • BUSINESS EXPERIENCE HAS A LOT TO

  • POLICY,RUNNING ECONOMIC

  • BUT THEY ARE BOTH DIFFERENT

  • DOMAINS.

  • IT DOESN'T TELL US MUCH ABOUT

  • WHAT HE WOULD DO.

  • AND PARTICULAR, THE TRUMP STYLE,

  • BAR A LOT OF MONEY, THEN WALK

  • AWAY FROM IT.

  • THAT ISN'T GOING TO WORK FOR THE

  • UNITED STATES GOVERNMENT, SO NOT

  • USEFUL.

  • OF WHETHER HES

  • STUMBLED INTO THIS BY ACCIDENT,

  • HIS ECONOMIC VIEWPOINT DOES NOT

  • SEEM TO BE IN LINE WITH THE

  • CLASSIC AM CONSERVATIVE,

  • REPUBLICAN VIEWS WE HAVE HEARD

  • LATELY.

  • REASON ISU THINK THE

  • THAT YOU HAVE CONSERVATIVE

  • VOICES GETTING BEHIND HIM.

  • SUSPECTS.AL

  • THE SAME OLD GANG.

  • THEY ARE MAKING A JUDGMENT THAT

  • WHAT HE WOULD ACTUALLY DO ARE

  • THE ONES THEY WANT.

  • ALSO, THEIR THING HAS ALWAYS

  • BEEN LET'S BE WHERE POWER IS,

  • AND THEY THINK THIS IS THEIR

  • BEST CHANCE.

  • OBVIOUSLY THERE WILL BE NO ROOM

  • FOR THEM, NO ONE WILL BE

  • LISTENING TO THEM IF HILLARY

  • CLINTON WINS.

  • THE IMPORTANT THING IS THEY

  • NEVER REALLY CARED ABOUT

  • DEFICITS.

  • EXCEPT WITH WHICH A STICK TO

  • BEAT PRESIDENT OBAMA.

  • CAMPAIGN RHETORIC.

  • WHAT THEY DO BELIEVE IN OUR TAX

  • CUTS FOR THE WEALTHY, AND TRUMP

  • IS PROMISING THAT.

  • HAS HIS BACKGROUND, BUT HE'S

  • WHONG TO TARGET AMERICANS

  • ARE LOOKING TO HIM TO BRING THEM

  • UP.

  • , CHIP THAT ECONOMIC MALAISE IN

  • THE U.S. IS CONTRIBUTING TO HIS

  • SUPPORT BASE?

  • -- HOW MUCH IS THAT ECONOMIC

  • MALAISE IN THE U.S. CONTRIBUTING

  • TO HIS SUPPORT BASE?

  • >> ECONOMIC ANXIETY IS NOT A

  • AOD PREDICT OR OF WHO IS

  • TRUMP SUPPORTER.

  • MAYBE IF THE COUNTRY WAS

  • LOOMING, WAGES RISING, AND

  • MANUFACTURING STRONG, ALL OF

  • THAT ANXIETY WOULD BE ON HOLD,

  • BUT I'M NOT TOO SURE ABOUT THAT.

  • THE IDEA THAT THIS IS WHAT IT IS

  • ABOUT.

  • TRADE, ALL OF

  • THESE SUBTERRANEAN AND PULSES

  • DRIVING THE REPUBLICAN VOTE ARE

  • NOW COMING TO THE SURFACE.

  • TALK ABOUTT'S

  • HILLARY CLINTON.

  • YOU HAVE WRITTEN THAT HER VISION

  • IS NOTABLE FOR ITS LACK OF

  • OUTLANDISH ASSUMPTIONS.

  • SHE IS NOT JUSTIFYING HER

  • PROPOSALS THAT THEY WOULD CAUSE

  • A RADICAL QUICKENING OF THE U.S.

  • ECONOMY.

  • STRENGTHENING THE SOCIAL

  • SECURITY SAFETY NET BY TAXING

  • HIGH-INCOME EARNERS.

  • IT IS CENTER-LEFT GOVERNANCE,

  • AN OBAMA THIRD TERM.

  • A LOT OF PEOPLE IN THE ORBIT

  • THINK THAT CLINTON-TYPE POLICY

  • WITH MORE INFRASTRUCTURE

  • SPENDING MIGHT HAVE A BIGGER

  • IMPACT ON GROWTH THAN SHE IS

  • WILLING TO ASSUME.

  • ASSUMINGSENTIALLY

  • NOTHING IN TERMS OF GROWTH

  • IMPACT, BUT THEY ARE NOT WILLING

  • TO BET THE FARM ON IT.

  • OFIS PARTLY A QUESTION

  • WHETHER WE WILL SEE MORE.

  • ARE SIGNIFICANT TAX

  • INCREASES AT THE TOP END, FAIRLY

  • SIGNIFICANT ADDITIONS TO

  • ITMACARE, SO IT'S NOT THAT

  • IS MINOR, BUT IT IS A

  • CONTINUATION OF THE SAME KIND OF

  • GOVERNANCE WE HAVE HAD.

  • FISCAL THE TIME FOR

  • STIMULUS OVER?

  • 2-3 YEARS AGO, THE U.S.

  • ECONOMY WAS WELL BELOW CAPACITY.

  • THE FED WAS NOT THAT EFFECTIVE.

  • QUANTITATIVE EASING IS MARGINAL

  • TOOL AT BEST.

  • NOW THE ECONOMY MIGHT BE AT FULL

  • EMPLOYMENT, BUT WE DON'T KNOW

  • THAT.

  • SUPPOSE THERE IS TROUBLE IN

  • EUROPE OR CHINA.

  • SUPPOSE THERE ARE MORE PROBLEMS

  • OUT OF HOUSING.

  • WE HAVE VERY LITTLE ROOM TO

  • MANEUVER.

  • THE FED CAN'T DO MUCH MORE THAN

  • IT IS DOING.

  • FISCAL POLICY WOULD BE USEFUL AS

  • INSURANCE, AN ADDITIONAL SORT OF

  • DEMAND, AND WE KNOW IT CAN'T THE

  • STARTED ON SHORT NOTICE.

  • IS A PRECAUTIONARY CASE

  • FOR BUSINESS STIMULUS RATHER

  • THAN WE NEED IT RIGHT NOW.

  • OF COURSE, WE CAN BORROW VERY

  • CHEAPLY AND WE NEED

  • INFRASTRUCTURE.

  • WANT TO BRING IN

  • SOMETHING CARL ICAHN SAID.

  • ARE THINK TRUMP'S POLICIES

  • POSSIBLY THE ONLY THING THAT

  • WILL SAVE US FROM GOING DOWN

  • THIS DECLINE WE ARE IN ON

  • PRODUCTIVITY.

  • SCARLET: THE LATEST PRODUCTIVITY

  • NUMBERS WERE DISAPPOINTING.

  • INVESTORS, BIG BUSINESS,