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,

POLICYMAKERS MISUNDERSTAND THE

MOST ABOUT PRODUCTIVITY?

I'M NOT SURE THAT INVESTORS

MISUNDERSTAND, BUT I THINK WHAT

CARL ICAHN IS PRETENDING TO

MISUNDERSTAND IS THAT THE

PRESIDENT HAS A LOT TO DO WITH

THAT.

THE PRODUCTIVITY SLOWDOWN IS A

GLOBAL PHENOMENON.

LL AND IN A LU

TECHNOLOGY.

THERE IS NOTHING A PRESIDENT CAN

DO ABOUT THAT.

>> WE HAVE BEEN TRYING TO

DISCERN IF THERE IS SOME KIND OF

MARKET REACTION TO A CLINTON OR

TRUMP PRESIDENCY, AND IT'S HARD

TO FIGURE OUT AT THIS POINT.

IT SHOULD INVESTORS BE

CONCERNED?

HOW ARE PEOPLE TRADING IN MAKING

MONEY AND MARKETS THE THINKING

ABOUT IT?

>> WE DON'T KNOW WHAT HE WOULD

DO.

THERE IS NO REASON TO BELIEVE HE

WOULD STAY IN THE BOUNDS OF

ANYBODY'S NOTION OF

RESPONSIBILITY.

ONE NUCLEAR WAR CAN SPOIL YOUR