tv Varney Company FOX Business August 29, 2018 9:00am-12:00pm EDT
>> marie, john, kevin, thank you so much. mr. varney. take it away. stuart: good morning to you dagen. good morning everyone. money and politics. that's what we do. do we have news on both for you. the stunning bull market runs on. it has been a terrific week for your money. records falling all over. economy few even more than first reported 4.2% annual growth. no pull back for stocks. no significant pullback for stocks this morning. look at this, apple powering ahead again. it is at $220 a share. amazon raising to a trillion dollar valuation. that stocks keeps on going up. 21 points up premarket.
the backdrop to the big summer rally is progress on trade. today's canada's foreign minister returned to the bar daneing table in washington. she said quote, the mexico's' deals paves the way for a new deal. a new nafta might be presented at end of this week. that is money it is looking good. in politics, trump is looking good. trump guy, ron desantis won big. he will to up against a bernie sanders candidate, andrew gillum. that will be a proxy, trump very source bernie. rick scott, very much a trump guy versus incumbent bill nelson. florida is booming thanks to the trump tax cuts. senator nelson voted against those tax cuts. november, florida will be the nike crow costism of our -- microcosm of our national politics. watch out social networks.
the president is coming after you. he says they rig searches to leave conservative opinion out. we'll see if reflects the high-flying stocks. i say it again, no summer doldrums here. "varney & company" is about to begin. ♪ stuart: i will start with tesla on a full news day. why not. elon musk is stirring the pot again, resurrecting the pedo slur he laid on one of the divers who rescued boys in the cave in thailand. musk said, you don't think it is strange he hasn't sued me. he was offered free legal service is. he was responding to a twitter user, yoda, who said a lot of things are strange, elon. what is especially strange here wondering why he hasn't sued you, while the rest of us are
wondering why you could do something so egregious he could sue you in the first place. market watcher joel thurman. what on earth is going on? he is at it again. he is making a mess of things again, isn't he? >> i feel bad for his board members. he is creating not only problems for himself, creating legal liability for his board members. when his company gets sued, when he gets sued as ceo of tesla he is creating legal liability for all the board members who can be personally sued. in the marketplace insurance companies, insurance for major publicly-traded companies, 100 to 300 million. if he creates litigation based on his tweets, that he did a few weeks ago on august 7th. that could create a billion dollar plus litigation by the sec or finra, created market manipulation. not only insurance company not
pay the fees for insurance that he may have for the company, but the board members may have to ultimately turn on him as well. then he faces poe criminallability. stuart: just piling up, isn't it? i can't believe he has gone back to that but he did. i want to get back to this item. gdp, we upped forecast to 4.2%. i would say that is a plus for stocks, isn't it? >> this is on top of all the good news we had year-to-date. small caps as a general group are up 20% plus. small caps up 31%. large caps are above 14, 15%. we're seeing growth across the board. small caps for the month of august, which is generally a quiet month are up almost six is%. this before the trade deals are completed. canada, if we have more good news out of mexico than canada, that could be another one or 2%.
gdp continues to grow. if that deal works out, we could see potentially five to 10% appreciation for the year. so this has been a very strong year. we're up 40 to 60% in the last two years. i mean you go back over the last 9years. this is highly unusual -- 90. s&p only beat the nasdaq the last two years, up around 58% that only happened about four times. small caps are up 81% past four years. that is highly, highly unusual for the markets. stuart: would you stop for the commercials, joel. our viewers want to know if the bull market continues, you say yes definitely it does? >> i think it continues yes. stuart: hold on for a second. i want to move on to trade. mexico deal done we know that. canada deal in the works. foreign minister back in d.c.
negotiating. senator bill cassidy from louisiana. you're on the senate finance committee. you have to approve any trade deal. you've seen what we got going with mexico. does that deal pass? >> i think the deal does pass. i think canada needs to come on board. if it's a bilateral deal it is more complicated. i do think canada will be on board. i think bigger issues are between the u.s. and mexico. it passes, frankly because it worked for our country. louisiana benefits by, we have a positive balance of trade with mexico and canada as one example. i think many states are like we are. stuart: essentially president trump's hard-line is working, would you say that? >> i would say that. and i was in mexico a couple weeks ago and met with the trade negotiators. they conceded that we should have a periodic reevaluation of the program and if it is out of kilter one way or the other, to reconsider. they don't want a sunset clause. i agree with that as well. they agreed to a reconsideration.
i see there is reconsideration built in every six years now. stuart: i want to return to pure politics and yesterday's primaries. ron desantis, he won the primary in the governor's race in florida. he was backed fully by president trump. congresswoman martha mcsally won the arizona primary in the senate race. she was also backed by president trump. i put it to you, president trump came out of yesterday's primaries looking pretty good? >> in a primary a president has long coattails. your point about florida doing so well financially. now desantis i'm told running against a fellow who is kind of a bernie sanders like, i think floridians will have the example of the choice. do we want someone thoroughly invested using private market, or those who want to go far to the left? i think it will be a good choice for the people of florida. stuart: florida is microcosm for the national debate.
trump versus earn about any. trump growth versus redistribution. i think it is capsuled in florida in november? >> i agree. if you will, florida receives, when somebody is making money in louisiana or michigan they vacation in florida. and so they benefited from this national economy. i do think that this would, if we're voting 2018 on the econom, republicans win. if we're voting on something like a tweet maybe not so good. florida, they're voting on the economy. desantis is a good guy. they will do well as our governor. stuart: what do you take on the google rigging of news feed and the search? essentially roll tape. this is what the president is saying. roll it please. >> if was really taken advantage of a lot of people and i think that is a very serious thing and a very serious charge. i think what google and what others are doing, look what is
going on at twitter, you look what is going on at facebook, they better be careful, you can't do that to people. stuart: mr. senator, do you think they should be reined in, some form of regulation for social networks? >> there needs to be at least an valuation. when you're banning dennis prager who is very reasonable man, just happens to be conservative, makes you think there is a world view which is intolerant of any view which is conservative. so, so i don't know if it will take regulation. it will certainly takeover sight. someone like dennis prager should not be banned. stuart: i don't think we've ever seen a time where so much power to shape our politics, to shape our debate is handled by three or four people, zuckerberg, larry page, sergey brin at google, jack dorsey at twitter. extraordinary power concentrated in a few hands. >> it goes beyond that. i'm very concerned what they're
doing about privacy. people sign over privacy, click. will you accept this cookie on your browser? you accept it, not realizing the implications. power in terms of the ability to shape the debate. also ability to use privacy to a way that most americans, 99% of americans have no clue what they're doing. those are things that have to be looked at. stuart: i'm part of the 99%, senator. thanks so much for joining us, senator, we always appreciate night thank you, stuart. stuart: some individual stocks are moving. we'll bring them to you. sales falling short at dicks sporting goods, hit by higher controls on gun sales. the stock is down 8%. not a very rosy forecast from american eagle. that stock is down 6 1/2%. however better numbers at chico's. it is dead unchanged. bringing better numbers, but that particular stock is not moving. however overall the rally holds. look at this. check futures please. the rally holds.
may add a little to it. no summer doldrums. this is bull market and we're in it. the amazon story of the day, new reports it is working on a video streaming app, it is free. of course there is a catch. if you want to watch free videos you will have to watch the ads. papa john's, former ceo john schnatter forced to resign after using a racial slur. he is accusing top executives at the company of sexual harrassment and intimidation. he is not going quietly. china stocking stealth missiles, anti-satellite weapons, drones. four-star general jack keane on the china military threat next. . so, that means no breakfast? voya. helping you to and through retirement.
it stretched 40 miles northwest, as far south at san diego county. it struck at 7:30 last night. a minute later 3.4 trembler. it was violent and powerful, it shook houses and buildings. there is a lot of concern in l.a., this may be a prelude to another one. stuart: there is always that concern. ashley: one time they are going to be right. stuart: because there are aftershocks. if it was bigger than that 4, it would be serious in terms of damage. ashley: yeah. stuart: new pentagon report details a huge military threat from china. come on in general jack keane, fox news strategic analyst. looking at headline in "new york times," china shoring up its navy, muscles into the pacific. are we prepared for this? >> yes. there is no surprise here. the national security strategy this administration wrote and issued in december of their first year, now the national defense security strategy has
identified china as the nation's long term strategic threat to our national interests and as such china, not the united states, is conducting the most rapid military build-up of any nation in the world. stuart: we didn't know that. wait a second. america is the most rapid military buildup or china? >> china. stuart: china is doing it? >> the trump buildup is comparable to what ronald reagan did and is absolutely necessary but the most rapid military build-up in the world is being conducted by china. it has been going on for years. the previous administration didn't want to talk about, because the next question is, what are you going to do about it? we have major issues here, what they're doing, select civilly developing capabilities that take advantage of our vulnerabilities. long-range antiship missiles, that keep our aircraft carriers at distance before they launch the airplanes to be effective.
anti-satellite missiles. we're totally dependent for location, satellites, obviously for communication satellites as we're doing today, and also for weapons telemetry. how we guide those missiles to the target, all happens by satellite. they have been practicing for years to take all of those systems down and they have the most advanced anti-satellite capability of any nation in the world. so they are very serious about this cyber warfare as we all know, cyber espionage, is really big for them and they're now projecting power. they're close to parity with our pacific fleet now. they will next number of years exceed that capability. they're building bases around the world like we have. so china is projecting power. here is what they want to do. dominate and control the asia-pacific region and in a number of years, 2030, 2040, surpass the united states as the
preemmen global power in the world, stuart. stuart: in the world? >> in the world. that is a stated goal of president xi. stuart: what should we do about that? >> well we have to organize our allies and shore them up because they have been beaten down for years because the previous administration was ignoring this threat. we have to be willing to confront. i'm not saying we have to go to war. they don't want to go to war with the united states. we have to stand up. they're the bully in the neighborhood. we have to stand up to the bully. stuart: looks to me like the north korea agreement is unraveling. defense secretary mattis says we may have to go back to military exercises. is that agreement unraveling? >> they made an agreement no support for the agreement other than sheikh hands itself. what we found last number of weeks, not only has north korea not denuclearizationed,
advancing their capabilities. we'll to the have anymore meetings unless you're serious. next few weeks, we'll see what north korea comes back w we asked them for three things. one-eyedfy, locate for us, all of your nuclear missile sites. number two, let independent inspectors go in see where they are, verify it. number three, we suggested to them a a denuclearize time schedule. they have to give us a schedule if they're serious. stuart: if we reduce nuclear exercises they might launch another missile. what would we do if they launch another missile. would with we shoot it down? >> no. we would not shoot it down unless it is endangering one of our allies. stuart: what a situation, general. thanks for talking with us,. >> yes, sir. stuart: where are we going to open this market? we're in the middle of, i don't know if in the middle of but we're in a bull market. how about this one?
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stuart: can you believe this? california lawmakers voted yes to mandate carbon-free electricity generation by 2045. ashley: yeah. stuart: i don't think you can do that. ashley: you can't. it is ridiculous. a study was done recently. we're talking about solar energy and wind, turbines, all the rest of it, wonderful. there is not enough land in california to the amount of wind turbines and solar farms you would need to generate this electricity. i think 16,000 square miles in l.a. county alone. that is unincorporated area which doesn't allow those types of construction. so it's really, you know the biggest source of carbon problems in california, guess what? it's cars, right? so you will have to tell everyone you can't buy gas engine cars anymore. everyone will drive electric. that is part of the deal. liz: it is impossible. they would have to go nuclear. they're getting rid of the diablo nuclear reactor replacing with gnat gas, making the greens
craze i. you need a lot of water to do solar. what will they do, drain lake meade? this covering 12 western states. to add hundreds of megawatts they want, you have to go nuclear, go gnat gas. if you want all the electric vehicles on the road, how are the electric vehicles powered? by local utilities or nat-gas or ash said, clean coal. ashley: "governor moonbeam." stuart: we have 20 seconds left. i insist on getting this in, gavin knew some, democrat candidate, wants to give free universal medical care to illegal immigrants in california. that, ladies and gentlemen, is madness. stuart: it is madness. all about votes, right. stuart: you're buying votes. buying votes just like that with our money. ashley: yes. stuart: going to open this market. now we're all fired up here. no summer doldrums here. the bull run continues. up ever so slightly for the dow. up for the s&p. up for nasdaq.
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opening bell. you don't know what it will bring. it could be the end of the bull market, a sharp decline, not today, ladies and gentlemen. [opening bell rings] we're in a bull market, no summer doldrums. i think in a few seconds we'll open a fraction higher but higher nonetheless. bang, 9:30 eastern time, i'm told it is wednesday morning. we have indeed opened to the upside. only just. we haven't yet opened all the stocks among the dow 30. right now we're up 17, 18 points for the dow. give me the s&p. see where that is. broader market indicator. a one 10th of 1%. nasdaq moving further. another gain up 1.6%. -- .6%. president trump attacked in particular google.
the attack on google is resulting a gain of the stock price. how about tesla, down just a fraction. elon musk at it again. we'll detail that one for you. please check out amazon. that thing just keeps own going up. that is all-time high. nasdaq hit an all-time high. you're up about 20 bucks a share right there on amazon. 1952. shaw ghailani the man who pointed the way on the bull market past couple years. well-done, shah. kristina partsineveloss by popular demand, ashley webster, liz macdonald, stalwarts of the company. it looks real good. shah ghailani, we're expanding at a 4.2% rate annually. is that good news for the market or what? >> it is good news for the market. revision was higher than expected, certainly than what analysts expected is always a
positive but what caught my eye in the revision, what corporations are spending for the future was up 8 1/2% on an annualized basis. that is a tremendous increase. better than expected. telling me that corporations are spending in spite of their problems or concerns over tariffs and tax wars, trade wars. it is all good. i think economy is reflecting the market. market reflecting the economy. they're moving in lockstep together. i think we have nowhere to go but higher at this point. liz: what a read and shah is right. we are at a new era. it is so different from the prior eight years when the government growth fairy was spending your money to get growth. you know had the obama economists they were so obscure about it. talking like an obscure fortune cookie explaining away government spending to help the economy. we're in a new world with economic growth. stuart: i'm in a new world. see microsoft there. $110. ashley: there we go.
>> you got richer. stuart: a tiny fraction. look at amazon 1951. $19. look at them google -- go. google despite the attack by the president up 10 bucks. liz: basically saying strange in a twitter rant with some other guy on twitter, the british diver he accused being a pedo, the cave issue? he is doubling down on his own pedo tweet. somebody needs to reach up behind elon musk to power him down. stuart: why would he go to that? liz: why is he on twitter when the balance sheet is insolvent when you factor off-balance-sheet debt? why is he is on twitter with some issues at tesla? >> ai free. you don't want a raise awareness about that.
talk about tesla, a lot of talk should apple buy tesla? that is another big top i can. going into the future apple would have a car market. stuart: they have got the money. do you want to take on the liability that musk is around tesla? >> musk has -- stuart: i don't know, seems the guy is unhinged. liz: every tweet, shows someone else should run it and he should be chairman emeritus. stuart: all right. >> it speaks to corporate governance, stuart. tesla is problem. corporate governance is a problem. musk is a problem. i think he will face serious problems with the sec. i think at the end. day he might be booted from the company. stuart: okay. big tech, president trump taking on google in particular but also twitter and facebook about censorship of conservatives. maybe regulation is coming. shah, i think the only with to put a lid on this, ashley, rather, put a lid on those stocks, is if they change the, forced to change in their
business model so they can't make so much money. ashley: what is amazing all the negative publicity they have had here and in europe. yet the stock, not really been hurt that much. if they can get ahead of this. be a part of how they regulate themselves. that will soften the blow. yes, if they are significantly regulated. it could hurt their business model. there is no doubt. it doesn't seem to hurt the user numbers. people are like, okay. >> we don't delete it. we talked about in the past. we're not deleting facebooks regardless of privacy being compromised. in google, if there is censorship i want to see facts that google is doing that. >> google users, the majority, go to the second page results. this is free speech first amendment issue. google's case made weaker, blaming the algo about high quality content, helping china with censored search engine and eu fined it for bias in the search results. stuart: dozens at facebook, dozens of employees there, are
challenging what they call the intolerant liberal culture of the company. i just think it is nice to see somebody from the inside of facebook standing up for conservatives. ashley: yeah this is interesting. a facebook engineer kind of tiptoed his way into internal facebook, posted a thing, you know what, we operate a monoculture. we're quick to attack a view in opposition to left-leaning ideology. they were i intolerant of other views. 100 people joined him. they're fearful speaking out against any liberal ideology. with is interesting, immediately people within facebook complained to the company, look we have these anti-left people in the building. facebook said so far they're not breaking any company rules. shows you the overriding philosophy within the company like facebook is very left-leaning. stuart: horrors there are conservatives within facebook. >> those that don't want to voice it, jeopardize their jobs. doesn't necessarily mean everybody is liberal.
i don't want to protest. ashley: 100 people out of 25,000 so far. the brave 100, how many in the silent majority agree with that, who knows? >> you don't know. stuart: check the big board. we turned a little bit lower. nothing much to write home about. we're down 17, 16 point, we're above 26,000. how about american eagle? not a good forecast for the future. the stock is down 11%. that is a big drop. dix sports good are down 8%. watchmaker movado, better sales, that stock is down 13%. how does that happen? you get better sales, down it goes. ashley: weak outlook. we always say that. weak outlook. stuart: i don't know. chico's, had better numbers and chico's is down 1.7%. we'll try to sort this one out, believe me. amazon planning to launch a free video service. it will be supported by ads.
they want a bigger piece of the 70 billion-dollar tv ad market. nothing stops the market. up 22 points. >> will hit hit a trillion? stuart: it has to get to $2060, if it does that it is worth a trillion dollars. >> part of the reason you're seeing it higher, morgan stanley put out a note believing it will hit 2500. increasing the price target by 35%. they believe amazon has a lot to give within the web service is. not only ad revenue and streaming but amazon web services. stuart: morgan stanley expects to see google hit $1515 a share. liz: what a time to be alive. stuart: like to be in those stocks. where is the price of oil this morning? i show you right now $68 a barrel. $69 a barrel this morning. the average price for goss holding at $2.83 a gallon. look, aaa says gas prices could drop to 2.70 a gallon by this
fall. fall is not far away. that would be a good news for the economy, wouldn't it, shah? >> it would be great news. i think it is expected for couple reasons. number one we're coming to the end of the driving season in the summer. number two, distillates, required in the refinery to make winter gas are less expensive. that is cheaper price at pump. positive for consumers. increases more money in their pockets. more spending. stuart: i'm sorry, just listening to something else in my ear. we just got word from canada's foreign minister who is in washington, d.c., and negotiating a trade deal with america's trade representatives, she just come out and said, she is optimistic about making a friday deadline for a deal. that will be a three-way deal. u.s., mexico, canada. she is optimistic about getting that deal together by friday. we'll have more on that in a moment. i would have thought that was a positive for the stock market.
ashley: you think? stuart: so far not moved it. that just news coming across. we're beginning, not exactly a lot of movement, but we're just getting this word, optimism on a trade deal. canada, u.s., wrapped up by friday. i would have thought that was a positive for the market. liz: congress has to sign off on it. stuart: they have plenty of time to do that, 90 days to sign off. liz: or next year. >> senator cassidy, says no problem with the mexican deal. i regret to say, kristina, that time. cut you off before you got your last word in there. er is about that. shah ghailani, thanks as well. appreciate you being here. where are we now. no change on the big board. we're still down about 20 points after that promising news came across the wires about canada's foreign minister and trade. ashley: give it time. stuart: trying to give it time. normally the market react the like that. you get a positive piece of news on trade, the algorithms kick in and usually the market goes up, but not this time at least not so far.
big change coming to viking river cruises. they are banning children. we're talking child-free vacations. liz: whoo-hoo. ashley: good. stuart: i have six kids. that would have been nice. florida gubernatorial race, trump-backed republican takes on a democrat supported by bernie sanders and george soros. what a story. we're on it. ♪
increasingly our guests have told us how much they appreciate an environment where they can travel without children. so there you go. listen, not unusual. virgin, i was reading about richard branson's virgin voyage. they are getting into the cruise ship business. they begin that service in 2020. that too is adults-only. the river cruises for over 50s. stuart: yes. you want to leave it right there, ashley? ashley: i totally agree with the policy. [laughter] stuart: moments ago we told you about canada's foreign minister commented postively about nafta talks. edward lawrence was there, our guy. come on in. tell us exactly with she said. reporter: the big headline said they were optimistic making a friday deadline to sign on to this agreement. they have been going this morning line by line through this agreement, working late into the night last night. starting again i recall this morning. she has had conversations on the
phone this morning with u.s. trade representative robert lighthizer. and now they walked in about two or three minutes ago to meet face-to-face. jared kushner, white house visor, also in the meeting. canada very concerned about chapter 19, anti-dumping or anti-stimulus, that other countries are helping their industries. this is the u.s. neckism to go after that. canada is biggest use he of that mechanism to stop some of that stuff. u.s. would like that removed or railed in this treatment. they're going line by line through here. the big headline this morning, as i said, stu, the minister of foreign affairs of canada says they can, they're optimistic about a friday deadline to sign on to this agreement. back to you. stuart: that is optimism indeed. thank you so much, edward lawrence right there. no stock to the stock market on positive news about trade. we're back to politics.
congressman ron desantis will square off against tallahassee mayor andrew gillum in the florida governor's race. desantis backed by trump. gillum backed by george soros and bernie sanders. charles hurt joins us. florida looks like a microcosm of our debate, trump and growth versus bernie on redistribution? >> reminds why florida is great battleground state. donald trump edged out hillary clinton by 1.2 percentage points in 2016. florida is always a bellwether. i have to say probably a pretty good sign. the idea democrats would field a guy as you say bankrolled by george soros, supported by bernie sanders. he wants to impeach donald trump. he wants to abolish i.c.e. he wants medicare for all. a candidate like that is going to have a hard time running against a successful, pro-growth
candidate like ron desantis. but the dark clouds for republicans, they need to be very wary of this, if they're not running scared, they could be in a lot of trouble. we haven't seen that concrete evidence that trump voters convert completely to the republicans that he supports. we need to see that in a general election like this. but the other thing is, what you just mentioned, the fact that andrew gillum has backing of george soros means that he has billions of dollars, certainly millions of dollars at his disposal. they will pay anything to stop donald trump. stuart: florida is the beneficiary of the tax cut program. >> yeah. stuart: they're booming in florida. that is the greatest story never told, which is, we have a booming economy. i'm looking at financial times this morning. nowhere there is a report on america's booming economy.
the "new york times," not a word about the economy at all. yet, here we go. we have a bull market in stocks, we have got an economy expanding at the best growth rate in many, many years, i think you agree with me on this, this is the greatest story never told. >> it is absolutely. one of my favorite things to do is go back to read the column "new york times" economist paul drug wrote the day after the election, i think he wrote it the night of the election, predicting a global recession with no end in sight. i think "the new york times" is is still in denial. they can't get past it. you can't lie to people. people feel that things are improving. they have a job, they're working longer. they're working more, getting paid more. you can't lie about that kind of stuff. i think at the end of the day, when regular voters and it doesn't matter what race, creed, gender, all the things that democrats try to divide people into, at the end of the day, if people, the choice is between, okay, an economy that is going
well and i'm able to take a vacation with my family, versus, impeach trump, abolish i.c.e., i think, i think good economy wins. stuart: i think so, charles. i think you put your finger on the nail there. charles hurt, everyone. see you again real soon. >> sounds good, stuart. stuart: check out the dow 30 on wednesday morning. in particular you plight want to pick out microsoft which is a dow stock. up nearly a buck. that is an all-time high for that. the dow though, still down 11 points. college debt is on the rise again. we're talking total of 1 1/2 trillion dollars. next we have a guy who says this is all the government's fault. mgx minerals' disruptive technology can extract lithium -
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the new sleep number 360 smart bed is on sale now, from $899, during sleep number's 'biggest sale of the year'. it senses your movement, and automatically adjusts to keep you both comfortable. it even helps with this. so you wake up ready to put your pedal to the metal. and now, all beds are on sale. it's the last chance to save 50% on the new sleep number 360 limited edition smart bed. plus, 36-month financing. ends labor day. sleep number. proven, quality sleep. stuart: let me repeat. a new all-time high for microsoft. yes, i got a tiny sliver of it. [trumpets playing] thank you. even though at $111 a share. i can barely believe that. how about apple. new record there. it is at $220 per share. that is apple. here's huge number for you, $1.5 trillion. that is how much student loan
debt outstanding there is. 1 1/2 trillion dollars. come on in cabot phillips. he is the young guy with campus reform. he says it is the government's fault. go. >> in five minutes we're doing this interview, in three minutes, student loan will go up $1.1 million during this conversation. a lot of people are not concerned about this. those are millenials, they are not smart with their money. this is impacting the economy and impacting all of us. stuart: why is it the government's fault? >> the government is subsidizing high-risk loans. giving colleges no insenttives to keep prices down. universities know every year they can raise prices up. students get the loans from the government and pay into the university. hey, we can charge whatever we want. since 1990 the price of a college education has gone up 197%. since then the price of television or computer gone down 80%. one is treated like a commodity. and the other is treated like a
right. when the government says this is guaranteed right to people, it has funny way of raising the price. stuart: your solution is bankruptcy for students. is that right? is that what you're saying? >> absolutely not. i think the government should get out of the process as much as possible. we should look at free market solutions. anytime the government says we have an answer on this, that is when i start getting concerned. it is easy to sell free college to students when they look at a mounting debt problem. that is concerning. look at economic impact this is having. in the last 10 years, discretionary spending for example, these debt-strapped students, they're spending $20 less per day than young adults were. they're starting families later. they're not buying homes the way they used to be. stuart: you don't have a solution here. 1 1/2 trillion outstanding. you can't fix that. >> the solution is incentivizing schools to get prices down. stuart: that is in the future.
what do you do that starts right now? >> i don't think government guyout is solution. who will pay that it will be us footing the bill. by 2025, estimate 40% of these loans will be defaulted. that is something concerning all of us. we need to have conversation what to do with the future. what to do with loans there are now. there are things like income share agreements many people are opening up accreditation process for universities to create more competition. ultimately it will be competition that gets universities to keep their costs down. stuart: we're glad you're on it, young man. that is a problem 1/2. we'll see your dad later in the show. >> looking forward to it. stuart: next, my editorial on the extraordinary degree of power held by handful of people, social media executives. i don't like the power concentration. my take is next. i get it all the time.
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when such enormous power was concentrated in so few hands. mark zuckerberg at facebook, sergey brin and larry page at google and jack dorsey at twitter. they sit on top of social networks that dictate the information that billions of people rely on. that's power. the president accuses them of censoring conservative opinion. several studies recently suggest that is the case. but the point is, those four people have the power to do all of that. that power, is that right? we can debate all day long the merits of regulating social networks versus free market, let them do what they want kind of thing. i don't know how this shakes out. but i do know that such concentrated power will bring on a political response. there's some of the richest people in the world and they have the power to say what you and i are allowed to read. their networks reach billions of people daily, so they set the terms on what's okay to put out
and what's not okay. is that free speech? no it is not. it is a speech that's regulated by a couple of billionaires. they have skewed political news and debate. there's no doubt in my mind that conservatives are shut out. when the president says google search is rigged, and larry kudlow says the administration will look into regulation, i agree. i'm a free market guy. but i'm tired of seeing our politics and our culture dominated by liberal billionaires. it's time to rein them in. the second hour of varney & company is about to begin. ♪ stuart: despite a lot of positive news for the market, i see not much movement for the dow industrials. we're still down just 12 points. but we're still well above 26,000. but we do have all-time highs for what's on your screen. that would be the nasdaq, apple,
amazon, microsoft, all of them record highs. got it. google up after morgan stanley raised its price target to $1515 a share. morgan stanley says the current valuation doesn't give much credit to one of its divisions. the market is ignoring president trump's attack on google. dick's sporting goods sales fall short hurt by its gun policies. it stopped selling assault rifles and it won't sell to customers under the age of 21. the stock is down 8%. how about the price of oil right now. it's at $69 a barrel at 10:30 eastern, 28 minutes from now we will get the latest on how much oil we've got in the supply chain. that might make a difference with the price. back to my editorial, top of the hour, the extraordinary power held by a few social media executives. joining us now is senator jim demint, conservative partnership institute chair. mr. senator, i know that you're a free market kind of guy.
but do you favor regulation of these big networks because of the power that they exercise? >> stuart, that's a big question, and important question right now. the internet was a whole new frontier of freedom. most of us have used it over more than a decade, assuming that what we say, our opinions, were passing through unfiltered and unedited. but i met with mark zuckerberg a couple years ago, after we saw that they were rigging what was really trending, that they were putting headlines is a mischaracterized conservative ideas or conservative news, and since then, we have gotten a lot more reports as you point out of conservative content being filtered, being edited, being censored completely. this has really turned this new frontier of freedom upside down. at the very least, stuart, before we think about regulation, these sites need to
be transparent. there need to be warning labels that help people understand that their content will be changed. when it is going to be changed. and then we need to make sure as a government that we create a competitive -- competitive framework so that competition can develop to create a more again a more seamless system where people can get their information out. the very last resort is for the government to get involved in trying to determine what can be said on the internet and these social media sites. that could become disastrous if the government is controlling it because the only thing worse than these tech giants controlling it is for government to be controlling it. stuart: you sound a lot like my libertarian friends mr. senator who say the government may not do this, but private enterprise, that's okay. i draw a distinction between the two, as a matter of fact. have you ever seen a time, though, when so much -- i'm going to call it social power, is held by so few people?
i think it is a unique period of history. >> well, it is, but it's been like this in many ways. i know when i first ran for congress, it was a few newspapers in south carolina that controlled my messages, and we've always had to battle this, and then as media has become more concentrated, you've got a few major media outlets that control all of these newspapers, and that's one of the reasons they are going out of business. we need to make sure there's competition for ways that people can get their information out today over the internet, and people need to know when their content is being edited or censored. that's the big challenge we have right now. but you are right, stuart, there is a huge amount of power in the hands of a few people to control worldwide opinions. that affects government. that affects the whole idea of democracy and freedom. so there couldn't be a much more important issue to discuss right now. stuart: okay.
senator -- former senator demint -- the correct form of address is mr. senator, i think, still; is that right? >> that's fine. stuart: i can't call you jim. i just can't do that. i much admire and respect you and not going to use your first name. mr. senator, thank you very much for joining us. >> thank you. good to be back with you. stuart: yes, sir, come again soon. good stuff. let's go back to markets. all-time high for the nasdaq. this is the longest bull run in history. and our next guest says it's going to keep on going. jason, make your case that we go up from here. >> you know, the thing that i want people to understand is that when the markets really correct sharply, typically there needs to be a catalyst, a very immediate, very urgent catalyst, and right now yes, there's stuff on the backdrop. there's china tariffs. there's, you know, nafta negotiations, but that's not a
real immediate today catalyst that will cause fear in the people to get out. and honestly, that's kind of the flip side of why markets will keep climbing, what is classically in trader talk the wall of worry. people will just keep buying stocks. the u.s. gdp got revised higher today. the fed came out and said the economy is growing. the economy has grown even with rates incrementally growing higher. there's no major reason for the markets to come down right now. stuart: would you put a number on it? earlier on the show we had a guest said look, if you do get a deal with china on trade, and things go well with nafta and the europeans, you get that, and he thinks that the market would go up 5 to 10 percent from where it is now. would you go that far? >> no, i think -- personally i think 10% is extreme. right as you started talking, my number that popped into my mind was 3 to 4 percent by the end of the year. stuart: we'd still take it. i mean, 3 to 4 percent on a 26,000 dow jones average, i'm trying to do the math here, but you're looking at at least,
what, 27,000 pretty easily i would say? >> that's about 700, 800 points, exactly. stuart: whenever you are on the show you bring with you a stock pick. the stock pick you have here is newel brands. you are not the only one. billionaire investor carl icahn, he likes the people who make rubbermaid, newell brands, and you do too. where do you think it is going? >> i do searches from time to time on what's called insider buys, and it jumped out at me, like crazy. that there has been millions upon millions of dollars this month alone of newell insiders purchasing the stock between 20 and 22. this is public information. the sec releases a few days after the buys happen. that caused me to dig in deeper. my whole theory of way talking about newell is for people who have missed buying stocks in march 2009, this is newell's
2008, 2009 moment. if you are patient, i think you are going to be rewarded handsomely. stuart: we like to bring our viewers stocks which they know about. it's not an obscure company. you don't know what they do. this is newell brands, rubbermaid people. >> that's right, mr. coffee. stuart: exactly. you like it. you are buying it and it's going up from here. can i summarize it like that? >> yeah, and if you are okay with waiting, you will get a 4% dividend yield from here. stuart: i like it. 4% works for me. thank you very much for joining us. jason, thank you. defense secretary mattis says the u.s. could soon resume military exercises with south korea. that's a big deal. this follows the cancellation of secretary pompeo's trip to north korea. is our deal with north korea unravelling? we will ask. elon musk resuming his twitter habits. this as whistle-blowers are alerting us to egregious
oversights at his giga factory. we will have one of them on the set. he will tell us what he saw. president trump is going after googling, saying they are compressing conservative views. i want some evidence. -- president trump going after google, saying they are compressing conservative views. i want some evidence. a guest will give it to me. - why are drivers 50 and over switching to the
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for a free quote, that's... or go to... stuart: are we up down or sideways? down 10 points. that's it. still above 26,000. a lot of positive news in the news background today but the dow holding with a 11, 10 point loss. american eagle outfitters lowered their outlook. whenever you do that, it tends to hurt the stock. it is hurting american eagle, down nearly 12%. how about chico's, i believe sales were down. the stock is down 6 1/2%. 8 bucks a share, chico's. now this, a new pentagon report
declares the massive military build up by china. now listen to what general jack keen told us last hour. >> the national defense security strategy has identified china as the nation's long-term strategic threat to our national interests. and as such, china, not the united states is conducting the most rapid military build-up of any nation in the world. stuart: joining us now colonel david maxwell, u.s. army veteran and a former special forces kind of guy. sir, welcome to the program. what are we going to do about this enormous build-up by the military and china? >> good morning. and thank you for having me. yes, i think that we're already seeing the president and secretary mattis respond with -- and congress of course with increases to our own military. we see massive increases in chinese capabilities, missiles, naval air stealth capabilities,
anti-satellite capabilities, but one of the things i think we should be concerned with are the things that we don't see. and in the pentagon report, it was very well outlined about chinese cyber capabilities. and i think that we should be very wary of those while we focus on the visible threats, it is the threat from cyber, the threat of chinese subversion, psychological warfare, and subverting the u.s. and the western free countries that is really a large part of this threat. stuart: are we doing enough, whether it's undercover or overt aircraft carriers and military power? are we doing enough to counter and check the chinese threat? >> well, i think militarily our military as the president said is stronger than it's ever been. we have, you know, the pacific command is conducting exercises with multi-domain task force and
really developing new doctrine and new capabilities that is able to counter and not only counter but to seize the initiative should we have to go to combat. but i think that, you know, before wi get to combat -- before we get to combat, we really have to look at chinese capabilities and how they are trying to subvert our society and their use of cyber is really something that bears watching, and that's why we need to really focus in on our cyber defenses as well as our combat military capabilities. stuart: i need your comment on this, mike pompeo's trip to -- to north korea cancelled. general mattis says we may restart military drills with south korea. that's a difficult situation developing here. do you think the north korean deal is unravelling? >> no, i subscribe to what ambassador haley said yesterday at our national security summit and she said this is a long-term process. i think the president is executing what we could call
unconventional experimental top down diplomacy. he's done things that no president has ever done before. i think we have to give that time to work. and the concession that he made to kim jong-un to suspend the exercises this month, freedom guardian, is the largest concession that we have ever made, unilateral concession, and while many disagreed with that, myself included, from a military readiness perspective, he was really testing kim jong-un, and kim jong-un has been found -- he's not negotiated in good faith. secretary mattis has said we have no plans to cancel exercises. we will continue to conduct exercises to maintain our readiness to deter and defend should north korea attack. we should remember, that north korea has a 1.2 million man active duty army, 70% of which is still postured along the dmz between the dmz and pyongyang. in addition to their nuclear threat, they maintain a significant conventional threat that is a threat to korea and
u.s. interests. stuart: david maxwell, thanks for joining us. we will see you again soon. thank you, sir. total switching gears, if i may coin a phrase, california voted to go carbon free. okay. when and is it possible? >> well, the feel good bill that's probably unworkable. they are saying by 2045, we will be carbon free. how do you get there? they are shutting down the last remaining nuclear power plant in diablo canyon, replacing it with nat gas. that's the issue, how do they get there? stuart: they want to get to wind and solar, saying that's going to save the state. what rubbish, because you can't do it. >> how do you get there? also due to solar, you have to drain a lot of lakes. you have to get a lot of water -- stuart: everybody drives electric cars. do you know how much land it
takes? >> 16,000 square miles. basically all of l.a. county. stuart: it is ridiculous. it's buying the greens' vote. you don't need their vote. you will get it anyway. they will never vote republican. >> the bottom line is the electric bill will go up. stuart: thank you very much, liz. it is a political question for the good folks of california. are you going to stand for this? are you going to pay more for every form of energy just so your governor can say we're leading the world? >> up to now, they have. stuart: it is pathetic. let me get back to the subject of your money. big board, down about, what, 19 points. we're not yet an hour into the trading session. the dow a little bit lower. a lot of other stuff is up. programming note, please, liz claman sits down exclusively with warren buffett tomorrow, at 3:00 eastern time. don't miss it. there will be more varney today after this. ♪
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stuart: we don't have much movement for the dow industrials. it is worth repeating we have all-time highs for the nasdaq composite, apple, amazon, microsoft. look at your screen. they are doing well, despite the dow pretty much flat. now this, vikings cruises says no more children. i think that's a pretty good thing for a lot of people. >> yeah, you know, vikings cruises, they're really for the over 50 set. that's the core group, in retirement, they like to float around the rivers of europe and enjoy a bit of art and culture. that's great. before it was 12 years was the
limit. now it is 18 from this point forward, no one under 18 allowed on these -- if you have already booked and junior is coming along with you, they will honor that. from this point on, no more children. i want to read this again because it makes me smile. this is from vikings cruises. it says in part, increasingly our guests have told us how much they appreciate an environment where they can travel without children. [laughter] >> i think the message is clear, don't want kids running up and down the deck. they want a nice relaxed atmosphere. stuart: i like what you said they float up and down the rivers to get a little bit of culture, a little bit of art and a whole lot of booze. that's good. disneyland, southern california, they're not getting a tax break for their park and their operation in anaheim. what are the consequences? >> disney walked away from this, the consequences are disney will not now build a luxury hotel, 700 rooms. it means lost construction jobs. lost hotel jobs.
what's going on is the talks got really act -- got really acrimonious, disney walked away. they want to raise the wage to 18 bucks an hour, cost of living annual raises after that, it became too costly for disney to build this hotel. anaheim has lost out on a big resort complex that disney was going to build. stuart: moral of the story, you don't dictate, you don't legislate wage levels. the market does that. when you stick politics into something, you get less jobs and less opportunities. >> that's what happened. stuart: the stock -- fewer jobs. fewer jobs, not less jobs; right? grammar. [laughter]
stuart: one company is not following a trend, that's yahoo!. we are on it. a tesla whistle-blower worked at a giga factory in nevada. he's claiming the company spied on employees. he learned a mexican cartel may have dealt drugs inside the plant. more on tesla's troubles after this. the employee of the year, anna. [music playing]
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>> we do. stuart: we have a lawyer on the set. do we like this song? >> i enjoy it. stuart: we will take it. we will find out about oil inventories. right now we just turned a corner. the dow has moved higher, up 5 points as we speak. 10:30, that means i've got news on how much oil we have got in storage. ash? >> we are just checking, down 2.57 million barrels, another drawdown of 2 1/2 million barrels. that's more than expected. last week we had a drawdown of nearly 6 million, which was a lot more expected. demand for oil is going up, which means that probably if we have less in storage, then the price should go up, already up at 69 bucks, maybe we will see that go a little higher. stuart: there's a big drawdown in distillates and gasoline. >> which kind of speaks to the economy. stuart: it does indeed. 69 bucks on oil as we speak.
s&p 500 hit another all-time high. this is an interesting story here. dick's sporting goods, you know, they have got a new gun policy. they don't sell assault rifles and they won't sell to anybody under the age of 21. that's hurt their sales. and the stock has gone down as of now, 8%. dick's sporting goods also hurt by a drop in underarmour sales, and that is hitting underarmour as well. that stock is down 4%. strange that the two are connected. but they are. let's get to tesla. elon musk at it again, tweeting, it's about the diver who helped rescue those boys from the cave in thailand, who called musk -- musk called him a pedo for heaven's sake, he's gone back to it. you don't think it strange he the diver hasn't sued me? he was offered free legal services. he's dipping his toe right back into the controversy that he
raised about the boys in the thai cave. this is extraordinary. we have guests on this. our next guest blew the whistle on tesla factory practices. he and his attorney are here. do you think musk's state of mind is the right state of mind to be running a giant car company, what do you say? >> stuart, i think in my interaction with mr. musk, his behavior is erratic, irrational, there's a consistent reactionary mode that permeates down through the organization and there's no proactive operational commitment that we're seeing. stuart: you're the guy who is saying that at the giga factory, where used to work, correct? >> yes, sir. stuart: they spied on you. are you also saying that drugs were dealt inside the factory? >> i'm saying in the beginning of june, i was provided with this document right here, from the supervisor of tesla's internal investigations department, outlining that the
dea test, assigned story county sheriff's department, provided him with this that indicated they had validated information that cartel -- a member of a mexican cartel was in fact trafficking in potential large quantities of methamphetamine and cocaine. stuart: on the factory floor? >> this document indicates there were two sales conducted on 5-11 and 5-13 of 2018 in the factory. >> why don't you tell stuart when you wanted to look at the videos of those sales, those video cameras on the floor all over the place in tesla, what happened? stuart: tell me. >> although it was difficult to pinpoint the specific location, when i inquired about the video footage that was supposed to be retained more 30 days, i was told that we have no footage beyond that. our servers were overloaded with cameras and we're losing footage. stuart: okay, now, you're the
lawyer for mr. hansen here. you have a lawsuit against tesla? >> no, i represent mr. hansen for the sec -- he filed an sec whistle-blower complaint, tip, as did my other client mr. trip who was also a former tesla employee. i have to say, you know, overall, you know, the allegations that are raised between the two, raised from my experience as a former prosecutor in attorney general's office in new york state, the prospect of violation of federal wiretapping laws, the false report of a terrorist incident involving mr. trip, which is a felony in nevada, and obstruction of justice, all of which are very serious crimes, which if they were -- if they emanated from the top, the ceo, much more serious than any sec investigation, with regard to any ceo of any public company. stuart: well, as an observer of the scene, and you are an observer of the tesla scene, do you think that elon musk is in
the right state of mind, if i can put it like that, to be running tesla the car company? >> i think mr. musk from my perspective has a lot of assets. i think he is a great visionary, but i do think at the same time he's very erratic and is knee-jerk and when you have that as the head of a public company and what appears to be the willing to do anything and everything, that is pretty scary. stuart: let me wrap this up with a question, carl, what is the status of your complaint as of now, your whistle-blower complaint? what's the status? >> at this point we have not heard anything back from the sec. stuart: okay. >> that's currently pending, my understanding from my lawyer. with respect to investigations, with respect to tesla's statement, i'd like to clarify that tesla in fact indicated that i somehow initiated these investigations on my own, arbitrarily, that in fact is
totally fabricated and not true. stuart: so you laid the complaint. no response at this point? >> correct. >> let me just say one is that the -- mr. hansen submitted the complaint to the sec. we're waiting for a response, not just from the sec, but i think the issues that i just laid out raise issues regarding other law enforcement. stuart: yes. >> right now none have started an investigation. i'm surprised at that. i expect they would based on my experience, and there seems to be some issues with the local law enforcement there, story county sheriff being attached to or dropping the ball with regard to tesla. i would expect that there will be investigations. stuart: lawyer, whistle-blower, thank you for joining us. i want to read a lengthy statement we got from tesla. we asked for it. here's what they are saying, i will read it in full now. mr. hansen's allegations were taken very seriously when he brought them forward.
some of his claims are outright false. others could not be corroborated. so we suggested additional investigative steps to try and validate the information he had received second hand, from a single anonymous source. because we wanted to be sure we got this right, we made numerous attempts to engage further with mr. hansen to understand more about what he was claiming, and the work that he did in reaching his conclusions, he rejected each of those attempts. and to date, has refused to speak with the company further. >> stuart, i just want to say regarding that response, everything mr. hansen just said, that he investigated, was at the behest of tesla, his supervisor asked him to investigate. so these are not his allegations, number one. number two their reaching out was after he was dismissed by tesla and represented by counsel. for two months they had his reports. they had all the information. they could have followed up. they have all the information now. they could look into whatever they want. but they are the ones who instigated these investigations.
not mr. hansen. stuart: we have a fight on our hands, stuart and carl, thank you very much for joining us. >> thank you very much. stuart: new tweet from president trump. here it is, white house counsel don mcgahn will be leaving his position in the fall, shortly after the confirmation, hopefully, of judge brett kavanaugh to the united states supreme court. i have worked with don for a long time and truly appreciate his service. don mcgahn is leaving. got it. the "wall street journal" reports that yahoo! is scanning your e-mails for data, and then it sells that data to advertisers. lauren simonetti is here. i don't like the sound of that. >> no, you put a premium on your privacy; right? you don't want anybody, any algorithm or any human being reading through your e-mail, but it happens; right? this actually doesn't happen anymore at google. it is not happening at microsoft. but it is happening at yahoo! mail and aol mail, and it is totally legit because they told you about it in their privacy
statement. so you have to opt-out. in europe, it is different, with the changes you have to opt in. but here, totally legit for yahoo! to do this. what exactly are they doing and why? they are going through your e-mail. and they are just looking let's say e-mail from businesses, from retailers, and they say oh, we noticed that stuart, a lot of jetblue, a lot of delta e-mails, he must be a frequent traveler. that's how they are profiling you, and then they can target with you hotel rooms or suitcases or whatever the choice to make money. stuart: that's an innocuous example. suppose they look at my medical e-mails, not so sure i like that. >> they say they don't, but if an algorithm is looking through, you never know what they can get. stuart: your bottom line, watch out for yahoo! using their messenger service. >> yahoo! and aol, watch out, absolutely. stuart: i will. not that i use them. but i certainly will.
>> a lot of people use yahoo! for the junk mail, by the way. their personal e-mail is on g-mail. a lot of people don't care about this because i put all my junk mail in my yahoo! account anyway. >> good idea. >> in that case, it is no big deal. stuart: watch out with yahoo!. got it. thank you very much. we thought thfts quite a headline -- we thought this was quite a headline. the silver bullet for student debt, bankruptcy. what? wouldn't that leave taxpayers on the hook? i think it would. we will talk to the man behind the bankruptcy idea. he's on the show. first, though, president trump going after google for censoring conservatives. brent bozell says it is one of the greatest threats to free speech in our history. he's on the show. in fact, he's next. ♪
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talk to your doctor right away if you notice pain or swelling in your arms or legs, shortness of breath, chest pain or rapid breathing or heart rate. tell your doctor if you are pregnant, breastfeeding, or plan to become pregnant. common side effects include nausea, infections, low red and white blood cells and platelets, decreased appetite, headache, abdominal pain, tiredness, vomiting, and hair thinning or loss. i'm relentless. and my doctor and i choose to treat my mbc with verzenio. be relentless. ask your doctor about everyday verzenio. stuart: the mexico trade agreement has to be okayed by congress, but in the last hour, senator bill cassidy predicted it will be approved. take a listen. >> i think the deal does pass. i think canada needs to come on board. if it's a bilateral deal, it is more complicated, but i do think canada will be on board because i think the bigger issues are between the u.s. and mexico. and i think it will pass because frankly it's worked for our
country. louisiana benefits by -- we have a positive balance of trade with mexico and canada as one example. and i think many states are like we are. stuart: essentially president trump's hard-line is working, would you say that? >> i would say that. and i was in mexico a couple weeks ago and met with the trade negotiators. they conceded that we should have a periodic re-evaluation of the program.
stuart: a mild turn around for the stock market. now we're up about 16 points. the price of gold is down 3.80. it's sitting around $1200 an ounce and been there for a long long time. 1210 to be precise. president trump says google searches are rigged to leave conservative views out. here's what he said, roll tape. >> i think what google and what others are doing, if you look at what's going on at twitter, if you look at what's going on in facebook, they better be careful because you can't do that to people. they're really treading on very very troubled territory and they have to be careful. it is not fair to large portions of the population. stuart: brent bozell is with us, media research center president. brent, welcome back, sir. give me some evidence -- >> thanks stuart. stuart: -- that google is indeed biassed against conservatives. >> there have been numerous
reports that have come out, and we have documented them, over and over again, where you have got these tech giants, whether it's google, twitter or facebook that are banning conservatives, and interestingly enough, they don't ban liberals. they just ban conservatives. now, the heads of these networks, the top brass, are coming forward and they are pleading with the american people, they are pleading with congress, they're pleading with anyone that can listen to them to understand that no, they are not doing it. the problem is, stuart, yes they are. and there's the evidence that backs it up. so there comes a point, you know, we are very much in unchartered waters. i don't know that ever in the history of man has so much power been concentrated in only a handful of companies that could determine worldwide what is and isn't acceptable speech and thought. stuart: precisely. >> that comes -- we get to a point where i think you really have to start thinking very very seriously about whether or not
these companies are far too big. stuart: well, i'm a free market kind of guy. very much a free speech kind of guy. but i see the power that's been accumulated by mark zuckerberg at facebook, larry page, sergey brin at google. you look at the power. you have to rein it in. the political response, there has to be some kind of reining in. are you with me? >> couple of points here, just think about the power here. facebook and twitter have an audience of over a billion people worldwide. when they say as their definition of hate speech that if you believe in traditional marriage and you believe homosexuality life is wrong, immoral, you have participated
in hate speech and you can get banned worldwide for thinking that way. that really puts things in perspective. to the president, the president is a businessman. i suspect the last thing a president trump as a businessman likes is the idea of regulating business. so when even he is saying this is a huge problem, i think we need to take it seriously. stuart: i don't know what form regulation would take. i don't know how you do that to be perfectly honest with you, brent. listen to this one, the new york times says dozens of facebook employees are challenging facebook's what they call intolerant liberal culture. so this is coming from within the organization. there's not many people. it is dozens, when they employ tens of thousands, but nonetheless, it is a start, isn't it? >> yeah, you know, kind of reminds me of what goes on in hollywood, where if you are a conservative, you have to make the sign of a fish, to communicate with somebody, do it in the sands so you don't get
caught being a conservative, just think what it must be like to work as a conservative at facebook, where you know, you might be 1%. and 99% hate what you believe in. i'm exaggerating, but not by much. so it's gutsy, very gutsy of these hundred people to come forward and say enough is enough. this has got to stop. stuart: again, i think that -- i don't see how you can regulate that power. i just don't see how you can do it. >> but stuart, it is going to be hard, to avoid it, i really do believe that these companies have to come forward. they have to show clarity, what is their -- what are their speech codes? they have to show some kind of an ability for people to understand transparency, how they are doing what they are doing and conservatives have to have an equal footing. not just a seat at table, but
equal footing in the say of these things and finally just adhere to the 1st amendment. free speech is a wonderful thing. alex jones, i don't like alex jones, but he should not have been banned. stuart: very interesting. brent come back soon please because i think we will be debating this for a long time to come. brent bozell, thank you, sir. >> thank you. stuart: this doesn't happen very often, my team is letting me talk about soccer. head of fifa, at the white house yesterday. it was very interesting oval office meeting. we will have details on it in a moment. ♪ mgx minerals' disruptive technology can extract lithium -
stuart: we're expecting to hear from canada's trade delegation soon. talks are underway about a new deal, america canada maybe joining it three ways with mexico. the foreign minister freeland did say earlier that she's optimistic that a deal could be in place by friday. the podium is ready. we believe she's going to appear momentarily. when she does, you'll hear it first because that will be some positive news on trade. let's get to soccer, shall we? the guy who runs soccer
worldwide, he was at the white house yesterday. ashley will tell us why. >> the world cup will be held in the u.s., canada and mexico in 2026. the president got a quick lesson in soccer. he said soccer is a game. i guess you call it futbol but maybe over here at some point we will change the name. he was in his classic mode. he was given some red cards which in the game of soccer, you commit too many fouls or a bad foul, you are shown the red card, you are thrown off. they gave him some red cards. he immediately waved it at the media. [laughter] stuart: did he? >> yes, he did. he said well i know what i could use these for and showed it to the media. he said i won't be here in 2026 even if he wins a second term, but he said wouldn't it be boring if i wasn't here, very boring for the media, maybe they will be out of the business. stuart: he holds up the red card and holds it to the media and says i know where i'm going to use this.
classic donald trump. it's like the trump show, isn't it? the whole country seems like we're involved the trump show. >> critics say too trump reality show. he's in the moment funny. stuart: superb on television, when he speaks, looking in the camera, speaking right to you. that's what we try to do, speak to you. donald trump has me beat. that's a fact. nest ca-- next case, if you wan to know the state of our politics, you need to look at one state, that would be florida, three separate races coming up on november. looking to be president trump versus bernie. how about that. my take is next. copd makes it hard to breathe.
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stuart: heads up, florida, you are going to be the center of attention in november's elections. florida is the microcosm of our national politics. florida is where it's at. the governor's race, it's trump versus bernie. the republican has the strong backing of the president. the democrat has a very strong backing of bernie sanders and george soros. it is a contest between the trump growth plan and bernie's redistribution. capitalism versus socialism. the new trumpian republicans versus the new far left democrats. it is a stark choice. but that's the state of our politics. captured in a single state. and it's the same with the florida senate race. republican rick scott goes up against incumbent democrat bill nelson. scott is trump's guy. florida benefitted mightily from trump's tax cuts. nelson is chuck schumer's guy. he voted against the tax cuts. isn't that the national debate
on the economy? growth from tax cuts, versus redistribution by tax increases? if rick scott wins, say good-bye to democrat hopes of regaining control of the senate. one more florida race that sets the stage for the whole country, in the miami area, 77-year-old democrat goes up against 56-year-old republican. old line, former clinton cabinet member, versus new line former tv news anchor. the clinton era democrat versus the trump era g.o.p. there you have it. three florida races that capture america's political split. trump's side of equation looks strong. florida is booming and will continue to do well as money pours in from the tax cuts. that's the key factor. trump is the face of growth and jobs. clinton and sanders will have a hard time fighting prosperity. the third hour of varney & company is about to begin.
by the way, rnc spokesperson joins us in about 15 minutes. she's going to react to me editorial. i think she will be kind of positive on what i had to say. i'm going to feed her information. okay. let's get to any minute now, we're going to hear from canada's foreign minister, following talks this morning on trade in washington. before the talks, she said earlier today that she's optimistic that a deal can be in place by friday. when we hear from her, you will too. all right. check the big board because it's turned around. maybe on this trade news. now we're up 31 points, getting close back to 26,100. i need guests. i need people to bail me out of this, the man who has just spoken, his name is david asman, cohost of after the bell on the
fox business channel -- network i should say. david thank you for joining me. >> absolutely. stuart: let's start with you, david. >> i hesitate to interrupt the great stuart varney. can i say one thing about florida? i love your editorial. the democrats have this idea that all immigrants in the united states are theirs. you know, that somehow they are entitled to the immigrant vote. florida is going to teach them a lesson because there are millions of immigrants in florida, from places like cuba, from places like nicaragua, from places like venezuela, where they experienced the reality of socialism and realized that the socialist dream turned into a terrible nightmare. i don't think they are going to vote democratic. i'm sorry for the interruption. stuart: that's all right. you really hate socialists, don't you? >> to the core. stuart: let me get to the question i was going to ask. >> please.
stuart: no harm done. i say that the trade developments of the last few days and maybe what we're going to see momentarily from canada, it is another trump win. are you going to take me on? >> not at all. i was one of the skeptics, stuart. i come from the editorial page of the "wall street journal." that's where as you know that's where i grew in journalism. and they were vehemently opposed to a lot of the trade talk from the trump administration because they thought it was going to hurt global trade. in fact, what they overlooked, and i think what i overlooked to a certain extent, was to the degree it was to dealmaking, and the deals that are being made now are extraordinary. in fact nafta had slipped over the years and had become very one-sided in favor of mexico and canada. it needed to be revised. the mexicans even agreed to that. now the canadians supposedly are. i think it is working out. jonathan i'm sure disagrees. >> we have heard so much about how trump loves free markets, how he wants no tariffs.
i assume that's exactly what the president has been arguing for, right? getting rid of all tariffs, having a truly free trade. no, that's not the case. no. i mean what we have seen here, you know, i had an old girlfriend who used to say trump will claim this is a victory of course. this isn't getting rid of nafta. this is up leme-- this is supplementing nafta. essentially he's tweaking around the edges. stuart: i believe that's the first time that expression has been used. [laughter] stuart: moving on. mr. trump, the president, he's tweeting about the economy and the gdp news today. look at this, consumer confidence index just out, the highest at 18 years. gdp revised upward to 4.2% annual growth, from 4.1. our country is doing great. jonathan, you're the stock guy
here. i have to believe that that is a plus for the markets, or is it? >> well -- [laughter] >> -- confidence is a tricky thing, stuart. it tends to be ironically a contrarian indicator. this is not me hating on the president. this is me with 20 years experience of trading stocks. i will borrow a line from buffett, the time to be greedy is when other people are fearful. you know, those consumer confidence -- were in the tank back in 08, 09, 10, when this bull market was really getting started. look i'm a bull on this market. i don't think you should sell stocks indiscriminately. but the fact that consumer confidence is so high, from a stock picker's perspective is a actually a contrarian indicator. i think things will get tougher than you think. stuart: jonathan -- >> come on! stuart: wait a minute, we have the longest bull market in history. it's gone straight up. we've reversed the doldrums of the obama years by growing at
better than 4%. and you're pouring cold water on it. come on. where's the enthusiasm here? jonathan? >> well, so much of that is untrue. of course the market went up every year under obama. many people said it was a bubble, including the president during the eight years. the market has been flat since the beginning of the year. we had 4% growth over obama for a couple of quarters. a lot of that is not true. tough -- you have to look at momentum and market sentiment. the fact that people are bullish, they are investing, i saw the same thing in 2000, in march of 2000 -- stuart: okay. look, i have got to move on. >> all right. stuart: listen to this, a study from the urban institute found that four out of ten americans struggled -- that's their word -- struggled to fill a basic need, one basic need at least once in the year. 40% couldn't meet that basic
need once in a year. included in these needs is food security. so what are we talking about here? 40% of us are food insecure? we've struggled to put food on the table at least once in the past year. >> i think they are talking their book also. this is an organization that's in the business of dealing with poor people, dealing with people that are in need, etc., and therefore any news that is slightly negative, they will blow up to be far more negative than it is. i mean, frankly, you walk the streets of new york, and you see homeless people eating better than a lot of the people that i used to cover in latin america, 10 hours, 15 hours a day trying to make ends meet. this is still the richest country in the world. food insecurity i don't think is our biggest problem right now. call me insensitive, but that's the way i feel. stuart: i was going to say that
about me -- that's what they are going to say about me. >> if you have compassion for poor people, you should advocate for capitalism. the great story of the last 20 years of the near eradication of starvation in the world thanks to the spread of capitalism and trade. if you really care about poor people and those in need, you want to advocate for free markets. i will throw this out there, it is things like tariffs, it is things like inflation, that those poor people fear most acutely -- feel most acutely when their costs go up, it hurts them on the bottom line more than anyone else. stuart: thanks, guys. gentlemen, thanks for joining us. >> thank you. stuart: we will not forget this. student loan debt, now tops 1 1/2 trillion dollars and it is still growing. coming up the man who says he has a solution. let students file for bankruptcy. i will challenge him on that one. california becoming the first state in the nation to get rid
of cash bail. some say it now levels the playing field for wealthy criminals. you commit a crime, you can't pay your way out of jail. we're on it. and bernie versus trump in the florida governor's race. looks like a microcosm of our national politics to me. spokesperson for the rnc on that one coming up. and we could also get news this hour on the trade talks with canada. they have a friday deadline to sign on to a revised nafta agreement. we've got a jam-packed hour ahead, including possible news from canada on trade. you're in the third hour of varney & company. don't you love it? ♪
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republican will face a democrat for the governorship of florida. i think that looks good for trump and the republicans. let's feed that question, shall we? rnc spokesperson, if you look across the spectrum, just the results in florida, you have to be very very happy. >> we are so excited. you know, i'm a florida voter. my home is in florida. i can tell you this, florida people don't want socialism, we don't want to abolish i.c.e., we don't want single payer, we don't want andrew and his radicalism. we're excited about last night. well done, democrats. stuart: i say florida come november is a microcosm for the political debate that the whole country is engaged in, essentially, it is trump versus bernie, george soros, and the far left. >> that's exactly right. and this is a nation that leans center right. i would argue that right after this president, and they've seen
the economics, and the fact that poll came out 85% blue-collar workers say the country is heading in the right direction. that's a pretty great number. stuart: was that a republican poll? >> no, it wasn't. it was just reported. it was a poll done by a business website. pretty good poll. i think that's truthful. you see in michigan, wisconsin, pennsylvania, the manufacturing jobs come back. it is paying off for the president. stuart: when you see a poll like that, grab it and run with it; right? >> immediately. stuart: you do your job very well. >> took me about five seconds to tweet out. stuart: however, i have to raise this one with you. fox news poll, it showed that -- what was the exact numbers here? that obama care is more popular than the new tax law, i mean 51% versus 42, 41 percent, something like that, 11 point spread in favor of obama care. what are we going to do about that? >> that's a startling poll. you have reported on your program year after year since obama care took effect, we have
seen those premiums rise. tax cuts put an average $2,059 in the average family's pocket. we have to get that message out there. i can tell you this, my father runs a small business. every single one of his hundred something odd employees saw their paychecks go up. it is up to us to tie that paycheck increase to g.o.p. tax cuts. stuart: i'm told that the president is going to make maybe 50 speeches around the country before the midterms. that's a lot of speeches >> a lot of speeches. it would be historic for a president to do that. he's going to do it because he understands how important and crucial the midterms are. his agenda stops in its tracks if we don't keep and maintain our majority in november. stuart: do you think we're used to him yet because this is a very very different presidency. you know that, his tone, his style, his use of twitter, etc. are we used to it? >> we certainly are, but i think some folks in the mainstream, every single morning they see a tweet come out, it's like they
haven't understood. this is the guy who won the election. the mainstream media can have freak out sessions every morning about tweets. stuart: there are people who say i like his policies, love what he's doing with the economy. but i wish he would knock off the twitter storm and watch his language. >> the tweets are necessary. you can talk directly to the american people. they are effective. stuart: i have a forecast. you are a youngster, if i may say so. hope you don't mind me saying that. you no matter how long you live will never see another presidency like donald trump's. >> not in my lifetime, certainly not. stuart: we are in agreement. >> we are in agreement, yes. stuart: you have many decades to come. >> many decades. stuart: thank you for joining us. >> thank you. stuart: individual stocks are doing really well. will you look at that? that's amazon, $1,970 per share. that's an all-time high. it's up $37 as we speak. and now look at my own favorite,
microsoft. it's up $1.22 at $111.47 per share. i never dreamed when i was buying this thing years ago, never dreamed it would get anywhere near 100 -- >> living the dream now. stuart: i'm living the dream. american citizen to boot, how about that? next case, california will become the first state to get rid of bail for suspects awaiting trial. tell me. >> this is actually a national -- growing national movement whereby they believe the bail system is unfair on poor people who cannot come up even with a minimal amount of bail money, and what ended up happening is that jails become overcrowded. prisons become overcrowded. and it's an added expense to taxpayers who have to pick up the cost of this. instead, what will happen now is a risk assessment will be conducted on this individual. and that assessment is then given to the judge. it could be yes, this person needs to stay in jail before they go to trial, or they could have home detention, release on their own recognizance, maybe put a gps tracker on them. this is happening elsewhere, new
jersey, kentucky, the district of columbia, all have essentially done away with the bail system. stuart: okay. before we go to our next story, please show me the big board. let's everybody see this. we've had a turnaround. we were down. now we are up 50. this could be because we're expecting news on trade. canada's foreign minister will approach the podium shortly. i think she's going to deliver some fairly optimistic news on a deal between canada and america on trade. we will see. but the market thinks it is coming. check this one out too, a florida hotel adding three robot butlers to its staff. this is in miami. these robots, they are 4 foot tall. they can bring you room service, extra towels, that kind of thing. they can even play music and keep up conversations. >> that's great. [laughter] stuart: moving on. [laughter] stuart: bad language could cost you money or even land you in jail in one beach town. we're going to tell you where
you have to watch your mouth. we will tell you after the break. and a reminder that we're waiting for some headlines on canada trade talks. they have got a friday deadline to sign on to a revised nafta agreement. we're expecting the canadian foreign minister at a podium right there momentarily. as we wait, let's go to the west coast. let's take a look at seattle. i don't think it's raining. there's a headline. ♪
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show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. stuart: i do want to remind you that we're expecting a statement on trade from canada's foreign minister. the microphones are lined up. she will approach those mics shortly. we think it is going to be a positive signal on trade. the market certainly thinks so. just in the last half hour, we have turned around. now up 60 points on the dow. records for the nasdaq and s&p and various other stocks as well. we're waiting. when it happens, you will see it live. next, you could face jail time for using bad language in one popular beach spot. where? >> myrtle beach. it's a crime to use foul language, to curse, to swear, even use fighting words.
$500 per incident or 30 days in jail. stuart: so obscenity? >> yes, you cannot. stuart: you are allowed to be sacrilegeous? >> right. stuart: are you allowed to be profane? >> are you trying to trick me? a guy was smoking pot in his car, the cops pulled him over, when they told him they are going to tow the car, he swore. they fined him 500 bucks. stuart: i'm in favor of this, frankly, but it is a 1st amendment issue. >> teenagers are getting hit with this too. stuart: well, that's good. foul-mouthed teenagers are the worst thing in the world. >> the aclu doesn't like it. stuart: it is okay at my age. [laughter] stuart: up 69 points for the dow jones industrial average. 1 1/2 trillion dollars, that's the amount of student debt outstanding in america. next, the man who says allowing
students to file for bankruptcy would solve the problem. i'm not sure about that. sounds like a taxpayer bailout to me. we will be back with it. the u.s. could soon resume military exercises with south korea. is this a sign that the deal is unravelling? we will ask those questions. i've always been about what's next. i'm still giving it my best even though i live with a higher risk of stroke due to afib not caused by a heart valve problem. so if there's a better treatment than warfarin, i'm up for that. eliquis. eliquis is proven to reduce stroke risk
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stuart: look at this, market keeps on going up. maybe it's because we're expecting a positive announcement on trade from canada's foreign minister. that could come any moment. and the market's been building up to that announcement and going straight up. 26,151. here's a headline, we took it from the washington post, and it reads as follows: the silver bullet for student debt, bankruptcy. our next guest wrote that headline. he's with us, george mason law professor. he wrote this book too "the republican worker's party". come on in frank let's say good morning to you. you have been on the show before. good to have you back. you say students should be able
to file chapter 7 bankruptcy to handle their debt. go bankrupt. >> absolutely. stuart: wait, isn't that a bailout by taxpayers, students? >> it would be a bailout initially, but i have a two-part plan. the other part of it is the people who caused the problem are the universities that are teaching garbage to our students, and so i say put them on the hook. right? so look, there's nothing more american than bankruptcy law. there's nothing more american than a fresh start. 5 million americans really need a fresh start to get on with their lives. and they've been cheated by universities that have taught them stuff that unfit them for jobs. i'm saying we can cure both of these problems at the same time. stuart: if you allowed students to go for bankruptcy, you'd have to have everybody go for bankruptcy, otherwise it is not fair. why should i keep on paying my
student debt, and it hurts, when somebody else just declares bankruptcy and gets out of it and the taxpayers take over? it is not fair, is it? >> i think that really is fair to the people seriously under water, by the way, going into bankruptcy is not exactly costless. right? there are negative consequences, and so if you have the right to go into bankruptcy, that doesn't mean you're going to do it. i mean, most of the people with student debt won't. but the seriously under water people will do it, and they need that break. i mean, look, the basic norm here is everybody has a right to bankruptcy except students. why except students? why that? stuart: okay, that's a fair question. you say chapter 7 bankruptcy. now, i'm familiar with chapter 11 and chapter 9. what's chapter 7? what do you do? >> chapter 7 is the basic bankruptcy provision for individuals who simply discharge all your debt. stuart: okay, another question,
from our solution here, how do you get universities and colleges to teach something different from what they're teaching now? i think you're talking politics here, aren't you? >> you make them feel the pain. people have talked about this problem, and nobody has come up with a solution, except i think i have, and the solution is get the incentives working so the right incentive is, you know, don't run up the tab on your tuition and teach stuff that won't disqualify people from getting a job. now, you know, basic humanity courses, they are fine; right? but, you know, women studies, come on, that would disappear fast. stuart: the bankruptcy proposal essentially would be very interesting to people on the democratic side of the aisle because they want to get rid of this overhanging problem. >> right. stuart: i'm not so sure it would be that attractive to the republican side. no? i don't think it would be. >> i think you are absolutely right. by the way, the republicans might say hey, we're grinches
and we don't want to give anybody a break. politically are you asking me whether it will work? heck, i don't know. stuart: i think politically it would work. i think it would be adopted by democrats. i would. >> i would like to see it. there are 5 million votes waiting out there on this one. stuart: that's a lot of votes. frank, very interesting, we appreciate you being with us, sir. >> thank you very much. stuart: come again soon, we will see you, good luck. defense secretary jim mattis says america has no plans to suspend any more military exercises with south korea. in other words, those exercises might resume. this comes after the breakdown in diplomacy with north korea. our next guest is with us, center for the national interest kind of guy, harry, looks to me like the agreement is unravelling. do you think that they may soon, the north koreans, do you think they may soon start launching missiles again? >> i think it is very likely to be honest with you. we have to remember, the north koreans when they paused their
missile tests last year, in november, what they did was is they were shooting their missiles straight up into the air. so we could never know 100% if those long range missiles could hit the united states. so now with this breakdown in negotiations, the north koreans might be tempted to shoot one of those missiles, say, 10,000 kilometers into the south pacific and prove to the world that they could actually hit the united states. it would be one way for kim jong-un to flex his muscles to say hey there's a lot of damage i could do here. stuart: that would be the end of the negotiations. it would be the end of this negotiation between america and north korea. they launch a missile, and it is over. >> yeah, it would be dead to be honest with you. south korea would be very upset. president moon has been personally invested in this process to try and bring kim jong-un into the international community. but kim could be feeling a little bit emboldened here. i think china is feeling that it can use north korea as sort of an issue that can help them in
trade negotiations with the united states. stuart: yes. >> so if kim is feeling that he's a little bit more powerful in this situation, he might be tested to test his icbm's again. stuart: i see your point. china is very much involved with north korea. china's very much involved a trade negotiation with the united states. i mean, there is linkage here, trade, china, america, north korea, missiles. i mean, there is a direct linkage there. let's suppose you are right. let's suppose that kim does launch across the pacific. we would shoot it down, wouldn't we? >> well, there's pluses and minuses to that. the plus is if you shoot it down, you could prove to the north koreans look, you can fire all the missiles you want at the u.s. homeland, we can take them down. but the thing is, we could miss. u.s. missile defenses, they have about 50% success rate against very long range targets when we've done all the testing. so there would be some obviously some negative consequences if we did miss. now, we'd fire multiple rounds at that missile. so we probably would take it down. but there's also some benefits here for us to watch the
technology in motion, see how the missile works, because we gain intelligence from that. so donald trump would be in a very precarious position on what to do. stuart: this is speculation, right, you are not going to say they are going to do this, they are going to launch the missile. you are not saying that. you are simply saying maybe they will bearing in mind the breakdown in diplomacy at this point. >> it is an option for them. i think it is kind of tempting. look, when you haven't had that full range test of your missiles that you think could hit the united states, at some point, i would argue they are going to have do a long range test. they especially want to test the different types of systems that would have to go through the atmosphere and land on a target. it's called heat shield technology. so they are going to have to test that at some point. they are going to have to do it probably pretty publicly. stuart: it would sure upset the apple card to coin a phrase. thank you for joining us. >> thank you. stuart: back to your money, to the markets. the dow is up 85 points waiting
for what may be positive news on trade. look at dick's sporting goods. sales down big, but ash, this is related to the company's gun policy. >> yes, in fact, in the wake, one of the first companies to stop selling guns after the florida high school shooting. they also announced they weren't going to be selling guns to people under the abge of 21 following that. they knew at the time we understood we will be under pressure a little bit. but they also believed because of that policy it would bring other people into the store. not worked out. same-store sales down more than 1.6% looking forward those same-store sales could be down 3 or 4 percent, that's a big hit. stuart: it is. look at underarmour, that stock is down. why is that linked to the performance at dick's sporting goods? >> because it was expanding the number of retailers it used to sell its products. they made a big push into the dick's sporting goods, over 700 stores, and with the down
traffic numbers for dick's sporting goods, it is also hurting the apparel that they sell, and that is under armour, so two for the price of one here being hurt. stuart: fallout. >> exactly, the ripple effect. stuart: president trump's hard-line on trade producing i think positive results. you've got to deal with mexico and the talks with canada look promising. next our next guest is with americans for prosperity. he's being critical of the president's trade policy. he doesn't like the idea of tariffs at all, well, i will challenge him. i think the trump policy is a success. what you are looking at now is 6th avenue, new york city, on a very hot day.
>> chipotle is offering free burritos and free delivery until september 12th. you have to order more than $10 worth of chipotle food. delivery is a big theme when it comes to restaurants. delivery has been tracked and revenue has gained some 70 percent over the past five years. during that time, it looks like 10% have increase in the amount
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continues. we've got all-time highs all over the place this morning. we have got the s&p 500, the nasdaq composite, apple, look at apple, $222 a share. we have got microsoft at 111. and amazon up $41, closing in on $2,000 a share, record highs all across the board. the u.s. and mexico, they reached that trade deal earlier this week. now canada's foreign minister is in washington discussing a new canada u.s. trade agreement and things look promising according to canada's foreign minister. come on in tim phillips, a man who i have argued with for some time, tim has often said on this program that tariffs are a terrible thing. i think you're totally wrong. i think tariffs gives our president leverage, and i think he's working it well and he's winning. all right. make your case. >> well, bad policy is never good politics, stuart. these tariffs are destructive. they have hurt so many americans
already, but we absolutely applaud the president. he is continuing to negotiate and renegotiate nafta and deals with canada and mexico. i think he's going to get it done. we absolutely applaud that. the tariffs i don't believe are the reason why. i think there's so much at stake for all three countries, including ours, that this deal has to get done. we believe it is going to get done. absolutely. stuart: come on. come on. tariffs are the club that you beat people over the head with because they can't take it. that's why you've got a deal. >> let's talk about tariffs for a minute. the president a couple days ago said we will just tariff canadian cars. a lot of those are american companies and the component parts are put together in the united states and shipped up to canada. if you tariff canadian cars, so called canadian cars, those are american cars. you're going to be hurting good manufacturing american workers,
if you do that, so it's not quite as simple as we would like to believe. if tariffs make folks feel better, maybe it's good. that's not the reason we're getting the deal done. stuart: you would not have a deal with mexico. >> we already have a deal with mexico, by the way, that's been helping our country. stuart: -- without the threat of tariffs. we changed nafta under the threat of tariffs. >> not yet. stuart: it is going to change. it is going to change because we threatened tariffs. we're going to change our relationship with the eu because of tariffs. we're pinching china with tariffs. it's tariffs that let us make a success of these trade deals. >> we have had a 25-year good run with nafta. i do think we both can agree on that. it's been good for our country. stuart: good for some people, not for others. great for the elites, not for the ordinary working americans. >> cut it out. are farmers elite? you 'got to be kidding me.
-- you've got to be kidding me. texas farmers, north dakota farmers, i have been there, they are not elite. they are good old american folk. stuart: manufacturing jobs shifted south of the border by the million. >> we have had dramatic steady increases by the way on both fronts in manufacturing. i do think president trump deserves a lot of credit for that. the tax cuts. they are one reason -- you talk about the stock market and the gdp growth, those tax cuts, president trump deserves full credit for those and the congress. both of which, those are the biggest reasons we're seeing gains right now in manufacturing, and i think across the economy, but nafta has been good for this country, stuart, and you can demagogue it and it did cause some job losses in some sectors but on the whole, it was millions of good jobs, and don't forget this, at a time when wages had been stagnant and you have discussed that on your show, for americans, especially fixed
income americans, trade has kept consumer prices low, and that's an important point at a time when wage growth has been stagnant. trade has lowered consumer prices. that's a good thing for americans. stuart: it is a long time since i have been called a demagogue. i will let you get away with it. >> i said it was demagoguery of the issue. stuart: you have launched a multimillion dollars ad campaign against three democrats in the senate. they include claire mccaskill in missouri. why are you targeting these three? is it because they are vulnerable? >> they are i think they are absolutely vulnerable, but their records are terrible. claire mccaskill has been a complete -- talk about this economy, she voted against the tax cuts. i bet you she's going to vote against judge kavanaugh unless she changes her mind. she's been terrible for missouri and for this country. we're going to make sure folks know it in missouri. we're dedicated to that race. there's a former governor in tennessee, stuart, he was terrible when he was governor of tennessee.
he jacked up government spending. he raised taxes. he would be just another kind of chuck schumer democrat in the senate, which is not good for the country. we're determined to tell the story on these very big government and very liberal democrats. stuart: i live in new jersey. and yesterday i was watching tv, and i saw an attack ad against senator menendez, democrat in new jersey, it was the most brutal attack ad i have ever seen in my life. getting down and dirty in new jersey. i think you might do the same elsewhere as well. how nasty are your ads? >> they are not. they are absolutely on the issues. so for example, claire mccaskill, we're holding her accountable for some of her bad votes on healthcare and taxes. those are absolutely on the issues. we don't go into the personal kind of politics of self-destruction. there are those who do that. but we're focused on these
issues because when americans look at the issues, we believe they are going to vote for freedom and for prosperity. you know, good policies like these tax cuts that claire mccaskill voted against with every other democrat in the u.s. senate, and stuart, i think that's going to haunt them for a long time. stuart: tim, we will leave it at that. >> good talking to you. stuart: we will see you again soon. okay. we've been told that canada's foreign minister will appear before the microphones there in about a minute. when she comes out, we're expecting -- and we don't know this for sure -- but she will make a statement. we're expecting it to be a positive statement about getting a trade deal by the end of the week. >> you know, automobile issues is a big one, both with canada, but with mexico, which has already been solved, now with canada. then there's dispute resolution. that's been another stumbling block, how do you do that? the u.s. has said we're losing our sovereignty if we go through the current system that nafta has set up.
we're assuming they are going to make an announcement. if they do announce they have reached an agreement, it is a big victory for the president. after mexico already getting on board. it will be interesting to see what canada has agreed to. stuart: also a dispute about tariffs on dairy products. >> that could be huge, the u.s. products charge what 200, 300 percent, that's been a huge problem, and the president has mentioned that many many times. stuart: i should add that when the news broke, that the canada's foreign minister, the trade negotiator would make an announcement this morning, it was assumed that it would be positive, and she herself said she was optimistic the deal could be done. >> right. stuart: when that came out, the stock market reversed itself. we had been down, what, 10, 12 points, maybe 20 points. that turned around, and in fact, we're now up 80 points. that's on the dow industrial average. throughout the day, the nasdaq, the s&p and some of those big name tech stocks, all been making new record highs, but the
dow had been a laggard. along comes this maybe expected to be positive news on trade, and the market goes straight up. >> i'm amazed how quickly this happened, the u.s. and mexico have been negotiating for quite some time week after week, through the night, canada was on the sidelines, but this has turned around very quickly. stuart: this is canada's foreign minister, christina freeland. she's approaching the microphones. we will listen. >> so we had another productive conversation. i had another productive conversation with the ambassador. our officials were working through the night, are now fully engaged with their u.s. counterparts at the officials level, and they will be working throughout the afternoon, and the ambassador and i have agreed that he and i will meet
at 5:00 today again to review the work that officials have been doing. it was a good conversation. it's probably worth pointing out, as the ambassador has, that we have been both at the ministerial and official level, very closely engaged and working on these issues for more than a year. we have been in good contact throughout the summer and we are working extremely hard, extremely intensely and we continue to be optimistic about the progress that we can make this week. stuart: canada's foreign minister, it is obligatory that
when she makes public statements it must be in english and in french. she's now speaking in french. she said that canada and american officials are fully engaged. they have been working throughout the night. and that they're going to hold meetings throughout this afternoon. trade negotiator will meet the lady right there, christina freeland, again, at 5:00 this afternoon to review the progress that's been made. it does sound positive. and the market has taken it in a positive way as well. we're now up 85 points, session highs right now. 85 points up because the foreign minister there, ms. freeland is speaking very positively about -- they have been really going at it for these trade negotiations. they are still at it this afternoon. and now when she starts speaking in english again, we will listen in because she will be taking questions, we believe at least, and we'll listen in for that. but right now she's positive on
a trade deal. she taking a question now. listen in. >> [inaudible]. stuart: i'm sorry, it was a question in french. i do not speak french. i can't translate. i'm not an interpreter. look at what's going on in that market, right hand side of the screen, the s&p 500 record high, nasdaq record high. only just the other day the nasdaq broke above 8,000. now it's very close to 8,100. tech stocks are on a tear. just look at apple. $221 a share. it reached 222 earlier, record high. amazon is up now $43 at 1976 and microsoft is up $1.50 at 111.74. i don't think anybody expected -- she's speaking english. back to the foreign minister.
[speaking over each other] >> -- deal by friday? >> so we have had a good meeting yesterday. we had another good meeting today. officials are engaged now, very intensely. there is a big team that is going at it. it is important to underscore that for canada, this is a negotiation we have been doing for more than a year. the issues are extremely familiar to us, and we have been extremely involved in shaping the approaches on a lot of the issues, and we've been in touch with the negotiation over the summer. but it is very very intense work. i continue to be encouraged by the good conversations we're having and the progress that
we're making. [speaking over each other] >> when it comes to mexico, we had a good conversation with the three mexican lead officials who came to our embassy last night. and that was very productive. we're now -- we now need to have some good conversations with our u.s. partners. that's what we're doing. [speaking over each other] >> do you see this as the beginning of the end of the negotiation process? >> you're tempting to say something -- the end of the beginning, the beginning of the end, look, let me just say a lot has been accomplished. i've spoken already about rules of origin and the labor chapter
and the progress which canada was very much a part of in creating better conditions for working people in canada and also in the united states. in high wage countries our workers have been concerned for a long time. it was one of our election issues about the ways in which trade agreements can harm blue-collar workers in high wage countries. there are some important things that we believe we have accomplished together with the united states, and thanks to some significant compromises mexico was prepared to make to support canadian workers that is a really important step for us, and it has set the stage for very intensive conversations and negotiations that we're going to have. >> [inaudible]. >> when it comes to specific issues, we have a huge amount of
work to do this week at the ministerial level and also officials are really winding through extremely intensively. [speaking over each other] >> thank you. stuart: difficult position, the negotiations about a trade deal continue. she was asked a comment on those things and said can we get a deal by friday? that was a question directly to her. >> yeah. stuart: she didn't want to say yes or no. she was in a difficult position. >> she was classic. she said a lot and said nothing at all. it was very -- it was a politician's dream speech there. all she could tell us was it was productive conversation. we're working through. we're fully engaged, all those classic buzz words, but i guess the encouraging thing is they are talking and are optimistic that something can be done because canada has been sitting on the side lines for weeks if not months while the u.s. has been talking to mexico. it is a positive thing. stuart: the market took it as a positive statement or looking
towards being positive because we're now up 84 points. we've come to the end of canada's foreign minister presentation there, and it's holding up. in fact, it is rising now 87 points up. what a day. neil, stuart: what a day, neil, it's yours. neil: they have been talking about this for months. they haven't. she had to interrupt her trip from europe to hurry back here or the train will leave without them. i don't know what french is shall we call cheap suit, that's what's going on. stuart: you think? i don't know, neil. she was trying to hold up her end, we are still negotiating, it's intense. we will talk again. she has to say that. neil: there's got to be either a better restaurant or better offer. i don't know. [laughter] neil: thanks, guys.