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 MoultonYoung insurgents aren't rushing to Kennedy's side in Markey fight Wall Street ends volatile month in major test for Trump The Hill's Morning Report — Hurricane headed for Florida changes Trump's travel plans 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 TrumpMarine unit in Florida reportedly pushing to hold annual ball at Trump property Giuliani clashes with CNN's Cuomo, calls him a 'sellout' and the 'enemy' Giuliani says 'of course' he asked Ukraine to look into Biden seconds after denying it 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 InsleeOvernight Energy: Trump officials formally revoke California emissions waiver | EPA's Wheeler dodges questions about targeting San Francisco over homelessness | 2020 Dems duke it out at second climate forum Yang floats nominating Inslee as 'climate czar' The Hill's Campaign Report: Democrats clash over future of party in heated debate MORE and former Colorado Gov. John HickenlooperJohn HickenlooperLeft off debate stage, Bullock all-in on Iowa Yang says he would not run as a third-party candidate The Hill's Morning Report - Hurricane Dorian devastates the Bahamas, creeps along Florida coast MORE have both dropped out. That leaves Montana Gov. Steve BullockSteve BullockNew poll finds Biden, Warren in virtual tie in Iowa Gabbard drives coverage in push to qualify for October debate Partisan divisions sharpen as independent voters fade 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) John RyanWilliamson: Climate change result of an 'amoral' economic system Overnight Energy: Top presidential candidates to skip second climate forum | Group sues for info on 'attempts to politicize' NOAA | Trump allows use of oil reserve after Saudi attacks Five top 2020 Democrats haven't committed to MSNBC climate forum MORE (D-Ohio) and former Rep. John DelaneyJohn Kevin DelaneyWilliamson: Climate change result of an 'amoral' economic system The Hill Interview: Sanford says Trump GOP doing 'serious brand destruction' Krystal Ball: Reality debunks Biden's 'Medicare for all' smear 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 PompeoOvernight Defense: Pentagon waiting for Saudi assessment on attack | Defense bill talks begin | Border fight takes centerstage | Pentagon finalizes .5B in wall contracts | US withholds Afghan aid citing corruption House Armed Services panel gets classified briefing on Saudi attacks US withholds 0M in Afghan aid citing corruption MORE

10:40 p.m. EDT: President Trump and first lady Melania TrumpMelania TrumpMelania Trump marks reopening of Washington Monument, takes ride to top Melania Trump to ring stock exchange opening bell on Monday On The Money: Fed delivers second rate cut to fend off global risks | Trump says Fed has 'no guts' | House gets deal on continuing resolution | GM faces bipartisan backlash amid strike 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 ButtigiegPeter (Pete) Paul ButtigiegOvernight Health Care — Presented by Partnership for America's Health Care Future — Pelosi unveils signature plan to lower drug prices | Trump says it's 'great to see' plan | Progressives pushing for changes Buttigieg calls Warren 'evasive' on Medicare for all Overnight Energy: Trump officials formally revoke California emissions waiver | EPA's Wheeler dodges questions about targeting San Francisco over homelessness | 2020 Dems duke it out at second climate forum 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