>> 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

NATIONAL SECURITY, AND THAT'S

REALLY ONE COUNTRY, TWO SYSTEMS.

ESSENTIALLY IT LOOKS LIKE ONE

COUNTRY AND ONE SYSTEMATIC COULD

BE BE A TOTALITARIAN SYSTEM.

WE DON'T KNOW YET, BUT THE

NATIONAL SECURITY MEASURES WE

WILL TAKE IS A VERY DISTURBING

MATTER. ANOTHER THING, CHINA COMPANIES

ANOTHER THING, CHINA COMPANIES

DON'T PLAY BY THE RULES, THEY

CONCEAL INFORMATION AND THEY

DON'T PASS MUSTER ON ANY OF THE

BLUE SKY LAWS THEY MUST COMPLY WITH NORMAL ACCOUNTING STANDARDS

WITH NORMAL ACCOUNTING STANDARDS

AND THEY WON'T DO THAT.

SO TRADE YES, BUT THERE'S A LOT

OF OTHER ISSUES.

>> Sandra: IS A PRESIDENT

WILLING TO BACK OUT OF THE DEAL?

>> I DON'T KNOW, I'M NOT GOING

TO SPEAK TO THE PRESIDENT ON