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The Hill's 12:30 Report: Stocks sink as Trump fights with Fed, China

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--> A midday take on what's happening in politics and how to have a sense of humor about it.*

*Ha. Haha. Hahah. Sniff. Haha. Sniff. Ha--breaks down crying hysterically.

 

The Hill's 12:30 Report: Trump labels Fed chief an 'enemy' | Powell says more rate cuts can't solve trade war | China announces $75B in new tariffs | Stocks sink as trade fight intensifies | Why Trump's immigration moves might not be a political winner | Dem field shrinks with Moulton dropping out | Says Biden would be 'fantastic president' | Disney+ prepares to challenge Netflix | National Sponge Cake Day

 

IN 2020 NEWS

They're dropping like flies:

Via The New York Times's Alexander Burns, Rep. Seth MoultonSeth MoultonBattle for Pentagon post in Biden Cabinet heats up US national security policy in the 117th Congress and a new administration Overnight Defense: Trump fires Defense chief Mark Esper | Worries grow about rudderless post-election Pentagon | Esper firing hints at broader post-election shake-up | Pelosi says Esper firing shows Trump intent on sowing 'chaos' MORE (D-Mass.) is ending his presidential campaign. https://nyti.ms/2Z94T17

Moulton said in an interview: "I think it's evident that this is now a three-way race between Biden, Warren and Sanders, and really it's a debate about how far left the party should go."

What's next for Moulton: "Mr. Moulton said he would run for re-election to the House, representing a coastal district to the north and east of Boston. Several other Democrats filed to run for his seat while Mr. Moulton was a presidential candidate, and he is likely to face a contested primary." 

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Moulton will say at the Democratic National Committee's meeting later today: "I will be campaigning my ass off for whoever wins our nomination in 2020." (Via The Wall Street Journal's Eliza Collinshttp://bit.ly/2ZcFoMr

Who Moulton supports: Moulton told The Washington Post, "I think Vice President Biden would make a fantastic president. He's a mentor and a friend, and I've been impressed by the campaign he has run so far." http://bit.ly/2Zdatzq

 

WHAT ALL THE 2020 DROPOUTS SO FAR HAVE IN COMMON:

They are all now running for other offices. But as The New York Times's Alexander Burns pointed out, "How long will it take to winnow the candidates who aren't under pressure to file for House or gov or Senate?" http://bit.ly/2Z9IYHb

Here's a list of the 2020 candidates who are left: https://nyti.ms/2IKvzxA

 

Happy Friday! I'm Cate Martel with a quick recap of the morning and what's coming up. Send comments, story ideas and events for our radar to cmartel@thehill.com -- and follow along on Twitter @CateMartel and Facebook.

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PROGRAMMING NOTE: The 12:30 Report will be off next week but will resume after Labor Day. Enjoy the last week of August and don't work too hard!

 

IN THE WHITE HOUSE

I'll take controversial statements for $400, Alex:

This morning, President TrumpDonald John TrumpAppeals court OKs White House diverting military funding to border wall construction Pentagon: Tentative meeting between spy agencies, Biden transition set for early next week Conservative policy director calls Section 230 repeal an 'existential threat' for tech MORE slammed Federal Reserve Chairman Jerome Powell, questioning whether his own hand-picked Fed chief is a bigger "enemy" than Chinese President Xi Jinpinghttp://bit.ly/2NsYkQ6

Trump tweeted: "As usual, the Fed did NOTHING! It is incredible that they can 'speak' without knowing or asking what I am doing, which will be announced shortly. We have a very strong dollar and a very weak Fed. I will work 'brilliantly' with both, and the U.S. will do great. My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?" http://bit.ly/2NtUR3t

 

WHAT SPARKED THIS TWEET: 

This morning, Jerome Powell suggested this morning that the Federal Reserve may cut interest rates, but he warned it may not be enough to head off trouble from Trump's trade wars.

 

Does it feel like everyone is looking at you? Because everyone is looking at you: 

Via The Hill's Sylvan Lane, all eyes are on Federal Reserve Chairman Jerome Powell amid fears of an impending recession. http://bit.ly/2ZduPZt

Why Powell's speech this morning was important: "Washington and Wall Street will be parsing Powell's words Friday morning as he speaks for the first time since a recent series of economic red flags spurred fears of an impending recession. In the weeks following last month's rate cut by the Fed -- its first since 2008 -- Trump has escalated his trade war with China, stock markets have turned volatile and dismal data from around the world has signaled a potential economic slowdown." http://bit.ly/2ZduPZt

 

NEWS THIS MORNING

Happy Friday! Here are more tariffs:

This morning, China announced that it will impose tariffs on $75 billion in U.S. goods. http://bit.ly/2Z88Ovc

The tariffs: "The country's State Council said tariffs of 5 percent to 10 percent will be imposed on a variety of American goods in two batches, with the first going into effect next month and a second scheduled for December, multiple media outlets reported, citing state-run media. The second batch of tariffs will reportedly include a 25 percent tariff on all U.S. automobiles." 

 

REACTION FROM PRESIDENT TRUMP:

In a series of tweets, President Trump announced that he will be "responding" to China's tariffs. http://bit.ly/2NqC1dK

Part of Trump's tweets: "We don't need China and, frankly, would be far...better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP. Read Trump's full series of tweets: http://bit.ly/2NxYAxj

 

THEN THE STOCK MARKET DROPPED:

U.S. stocks dropped sharply after President Trump tweeted that he would respond to China's tariffs. The numbers: "The Dow Jones industrial average fell more than 420 points, a 1.6-percent drop ... the Nasdaq composite fell 2 percent after Trump's tweets, while the S&P 500 index fell 1.7 percent." http://bit.ly/2NqC1dK

 

It may not be a chicken dinner:

Via The Hill's Niall Stanage, "President Trump is ramping up his rhetoric on immigration, but it may not be the political winner he thinks." http://bit.ly/2Nr2HLn

Why: "Trump's approach to immigration plays well with his base, but there are deep doubts about its political efficacy with the broader electorate."

Examples: "On Wednesday, Trump raised the idea of abolishing 'birthright citizenship' -- the concept, enshrined in the Constitution, that anyone born in the United States is automatically an American citizen. This came on the heels of a move to indefinitely extend the period for which families can be held in immigration detention facilities. Trump also continues to press the case for building a wall on the border with Mexico, while assailing Democrats for being overly lax, as he sees it, on border security." 

 

Rest in peace:

Billionaire conservative activist David Koch has died at the age of 79 after suffering from deteriorating health. https://cbsn.ws/2Z8lfXQ

Read his obituary in The Wall Street Journal: https://on.wsj.com/2No5V2h

 

ON THE CAMPAIGN TRAIL

Interesting read -- not a good year to be a governor running for president:

Via The Hill's Jonathan Easley, Democratic governors are fizzling out in the race for the 2020 Democratic presidential nomination. http://bit.ly/2Z9JODG

How so: Washington Gov. Jay InsleeJay Robert InsleeWashington county warns of at least 17 positive tests after 300-person wedding The Hill's Morning Report - Presented by UAE - US records 1 million COVID-19 cases in a week; governors crack down Washington state issues sweeping restrictions to combat coronavirus surge MORE and former Colorado Gov. John HickenlooperJohn HickenlooperDemocrats frustrated, GOP jubilant in Senate fight Chamber-endorsed Dems struggle on election night OVERNIGHT ENERGY: Down ballot races carry environmental implications | US officially exits Paris climate accord  MORE have both dropped out. That leaves Montana Gov. Steve BullockSteve BullockOVERNIGHT ENERGY: Down ballot races carry environmental implications | US officially exits Paris climate accord  GOP Rep. Greg Gianforte wins Montana governor's race Senate control in flux as counting goes forward in key states MORE as the only remaining governor running for president. Bullock's campaign is also struggling.  

Why this is notable: "Governor's mansions were once reliable steppingstones to the White House for members of both parties."

 

WHAT ABOUT TWO OTHER WHITE HOUSE LONG-SHOTS?:

In The Concord Monitor, Paul Steinhauser spoke with Rep. Tim RyanTimothy (Tim) RyanHouse Democrats introduce bill to invest 0 billion in STEM research and education Now's the time to make 'Social Emotional Learning' a national priority Mourners gather outside Supreme Court after passing of Ruth Bader Ginsburg MORE (D-Ohio) and former Rep. John DelaneyJohn DelaneyCoronavirus Report: The Hill's Steve Clemons interviews Rep. Rodney Davis Eurasia Group founder Ian Bremmer says Trump right on China but wrong on WHO; CDC issues new guidance for large gatherings The Hill's Coronavirus Report: Kansas City Mayor Quinton Lucas says country needs to rethink what 'policing' means; US cases surpass 2 million with no end to pandemic in sight MORE (D-Md.), who both vowed to stay in the race. http://bit.ly/2NorAaB

 

NOTABLE TWEETS

Omg, these are hilarious: 

Full-size photos: http://bit.ly/2NqaU2s

  

Jay Inslee is embracing The Onion:

 

ON TAP

The House and Senate are out.

President Trump is in Washington, D.C. Vice President Pence has no public events on his schedule.

12:30 p.m. EDT: President Trump has lunch with Secretary of State Mike PompeoMichael (Mike) Richard PompeoPompeo imposes visa restrictions on Chinese officials over 'intimidation' tactics Israel's new Gulf relations give Biden's team a new Middle East hub Pompeo knocks Turkey in NATO speech: report MORE

10:40 p.m. EDT: President Trump and first lady Melania TrumpMelania TrumpDC attorney general: Ivanka Trump 'highly misleading' on lawsuit deposition Biden warns Americans against traveling for Christmas McEnany hits Democratic leaders for not following their own COVID-19 restrictions MORE leave for France for the Group of Seven (G-7) summit.

 

WHAT TO WATCH

11:30 a.m. EDT: "A federal appeals court hears oral argument on a case concerning a congressional subpoena for President Trump's financial records." Livestream: https://cs.pn/2Z9GbOd

6:30 p.m. EDTCindy McCain sits down with NBC's Andrea Mitchell on "NBC Nightly News with Lester Holt." 

6:35 p.m. EDT: South Bend, Ind., Mayor Pete ButtigiegPete ButtigiegJuan Williams: Clyburn is my choice as politician of the year 'Biff is president': Michael J. Fox says Trump has played on 'every worst instinct in mankind' Buttigieg: Denying Biden intelligence briefings is about protecting Trump's 'ego' MORE (D) speaks at a town hall at Nashua Community College in New Hampshire. Livestream: https://cs.pn/2ZaHuN1

 

NOW FOR THE FUN STUFF...

Today is National Sponge Cake Day.

  

A streaming competitor in town:

Via Forbes's Peter Csathy, "Disney recently announced that it would offer its three flagship direct-to-consumer video services (Disney+, Hulu, and ESPN+) for an irresistibly low monthly price of $12.99. Yes, that's right. 'Magically,' the same price as Netflix's standard monthly plan." http://bit.ly/2NtxAyD

Keep in mind: Netflix is losing "The Office" and "Friends" from its platform. https://wapo.st/2NtyQSn

 

And to get your weekend off to a great start, here's a cat in a disguise. I'm pretty sure this cat is about to fire its owner: http://bit.ly/2NjAmXq