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tv   Varney Company  FOX Business  October 17, 2018 9:00am-12:00pm EDT

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you'll only pay $4.95. fidelity. open an account today. thanks for this awesome panel. love you every day. all day long. great to see you guys. "varney & company" begins right now. live at the white house. >> good morning maria. good morning everyone. don't adjust your sets, "varney & company" is coming to you live from the white house all three hours of the show. it is a big show packed with all star guests but let's not forget the news it is still coming thick and fast and here are big stories of the day. first off, the markets. as you know, the dow surged 500 points yesterday. the dow will open a little bit lower this morning dow may be 100 points. that's not a huge pullback in mind yesterday's surge that surge kale on heels of extremely positive report on job openings get to that in a second netflix is probably stock of the day. nearly 7 million new paid
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subscribers signed up for service in last quarter. there's 137 million paid worldwide as wee speak the stock is surging opening up 34 bucks share at the opening bell we have the the latest on missing saudi columnist. secretary of state pompeo has let with president of turkey the disappearance of jamaar khashoggi and trump says we need to find out what happened before we jump to conclusionings happening today at the white house big cabinet meeting all about deregulation cutting red tape administration says its policies have saved taxpayers $23 billion this year. i call that a win. "varney & company" for the white house edition starts right now. ♪
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>> i really think the economy is going to bring people together. because people are are doing better now african-american unemployment the best ever. asian american, hispanic american, women, every category, really whether you look at income, employment or unemployment. no matter what chart you're looking at it is ever or 50 or 60 years, the best. the best numbers. probably the best e economy we've ever had. >> there you heard it trump himself he says the economy can unite us. brian is with us chief economist of first trust advisors how does that work brian how does a strong economy binged network together when we're supposed to be bitterly divided? >> well, a strong economy means everybody is doing better incomes are up. jobs are up. and when people are working they feel like they're adding value to their physical fellow man ab stuart i want to accelerate you
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on being in the white house this is awesome i feel like i'm there with you. one with of the last times i was in the white house was when -- president bush and vice president cheney were in the white house. and we larry kudlow and i met with the vice president and convinced them to accelerate the tax cut back in 1993. and -- or 2003, and what that ended up doing is causing an acceleration in economic growth. and i think, you know, you're there on deregulation day that's a huge win for the economy. but also a the corporate tax cut and that's why economic growth is picked up. we're going to have 4% growth in the middle of this year. for these two quarters, second and third quarter, and helicopter profits profits are g 25% a year that's the -- that's huge. >> brian what popped out at me yesterday was that it is called a jolt report that is job and
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jabs report. that was a stunner. 7.1 million jobs opened or not enough feel to fill them now that was -- fueled the market rally in large part right? >> yeah. totally agree. we have 902,000 more job openings today than there are unemployed people listed on the rolls. it's never i've never seen a number like that. you know one of the other things that i look at is how many people are -- filing for unemployment benefits. you know, this would be people that lose their jobs and they have to go file. it's now the lowest since 1969 and if you do it as a share of all jobs, it is the lowest ever and so you know a lot of people get worried that technology is stealing jobs you know robots steal job, whatever. there's no evidence of that. there's fusser people being laid off today with all jobs we've ever seen. >> you're painting very good strong picture of a very strong
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economy. i don't think it gets enough publicity and that's a fact. brian, i get back to you later thanks for joining us. i heard netflix this is going to be the stock of the day. they've got a nice pop they'll get a nice pop of the opening bell this morning up about 9 maybe 10%. ashley in new york give me numbers please. >> so much for that concern about a slowdown from the last quarter, bumper earnings report for netflix 7 million new subscribers a million in the u.s. close to 6 million more overseas. earnings and revenue beating those dreaded estimates. stuart varney the customer base at 137 million that's 2 million more than predicted and strong, strong growth in india, asia has been a big target for netflix and numbers out of india encouraging indeed. i want more for you please on tesla chief elon musk he's got a big announcement this morning. what do you know that?
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>> a filing with fcc saying he's going to buy $20 million worth of tesla common stock in next open trading window. that's, of course, positive for the as you can see in premarket up nearly 2% let's not forget back in anyway he bought nearly $10 million worth and then in june he bought $24 million worth of tesla stock, and obvious we know he's paying this big fine. well for him it may not be so big but 20 million fine to the fcc he said i'm going to buy another 20 million worth of tesla stock and that's seeing that stock move higher today, stew. >> you've bot it ash thanks so much as ash knows at the white house and joining us right now ryan he's secretary of the interior mr. secretary welcome to the show. >> great to be with you as always. i should tell our viewers we were talking mommies ago an you told me we might get to 14 million barrels of oil produced per day it in the united states. when had? >> by 2020.
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we're -- 18 months. 18 months. now 18 million a day. who would have thought you look at first day of the presidency we're about 8.7 today with a largest oil and gas producer on face of the planet. rolling through 11.2 million barrels a day. on our way to 14 there's hurdles we have to get the involved we have to get the infrastructure but the production side of it is well within its camibility of going to 14. >> what's this i hear about the possibility of using military bases on the west coast as export vehicle rs for the energy we domestically is that a possibility? >> we're looking at all options. >> is that an option? >> because you can't get it out any other way without controlling a military base. >> well there's a strategic part of it to make sure our allies can receive fuel, commodities in time of need that are reliable to the united states navy certain has that capability. but also there's a couple of
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court cases going through. does a state have the right to diminish the opportunities economic opportunities of adjacent states by say preventing the movement of goods? of commodities being just one of them. new york state i believe is restricting pipelines going across the state so you can exfort natural gas from east coast terminals. new york state is a problem, isn't it? >> if you're in maine or adjacent state where you don't have the opportunity for economic -- for the court to settle that and get done? >> i assume it is in 9th circuit to go through that process. the 9th circuit -- yeah you know, often ruled mostly appealed and then decided at a higher level but we'll see. we're watching. we're fairly confident that all of indian tribe on side of making sure that they have their economic prosperity not been
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diminished or at least have the opportunity for greatness. tharchg give us you an opportunity to introduce adam red who is with us this morning. councilman for the southern tribe i've got that right? >> southern indian tribe on a lot of indian land there are protests when you extract energy -- >> correct. >> that's pretty much all across america but that's not true of your tribal lands. you are extracting energy. yes and for you. >> we're extracting energy but doing it for quite some time so we understand what goes into it. it's beneficial to our membership. we are guaranteeing all members of health care. they're all guaranteed to college education. there's dividends so there's shares that they get travel members get. so there's a lot of benefits. we've really increased quality of life on reservation because of this so you drill -- you extract oil natural gas whatever it is. you get paid for it. and that money goes into a trust
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fund for the tribe? >> correct. well -- >> how much have you got in the trust? >> question of got many different avenues for investment so in total we've got about 9 billion dollars. in different assets. but we on our reservation we e extract natural gas we have also operations offer -- >> you have no problem with that at all? >> no. >> you love it. >> we love it. expand. >> when possible. [laughter] if we can. our basin is declining in gas but different opportunities in our shale development but again we're great stewarts of the land and been doing it for years. >> before i run out of time this is red tape cutting day at the white house which regulation are you going to cut next? >> well, we're looking across the board, and let me say this. had is not the expense of the environment we have the safest year on record. the safest year on record on offshore. and the regulatory framework
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should invite our business partners, make sure we incorporate innovation, science, best practices -- >> what is next? >> we're going to look at the endangered species act in that -- >> they're going to come after you for that. >> well we should celebrate when a species recovers. and there are number of examples where a species has recovered. we should celebrate. it is kind of like hotel california. once you get on the list it is almost impossible to get on the list. our off list what i would like to do is bring those assets that are -- to species or that are in trouble. so having to continue to monitor spend money on species that have recovered, that's celebrate the goodness of the endangered species act and look at the species that are in trouble and put to resources where they're necessary. >> mr. secretary adam thanks so much for joining us this morning. smg it is a pleasure great to have it. back to your money directly at the moment we're looking at a market which will open lower. that will be in about what -- 20 minutes time down about 100
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points but please remember we were up over 500 yesterday. now this -- protests in the hole of congress you've seen it senators ambushed you've seen that too. violence from the left what is kellyanne conway going to say about it. we'll ask her because she's on the show later. national economic counsel guy larry kudlowed a white house with us this morning. he'll join us at the top of the next hour. what kind of growth rate are we going to get next year? wait until you hear what president trump is saying about missing saudi journalist jamal khashoggi we'll fell you after this. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums.
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>> all right here's another stock you better watch out for today ibm one of the old tech stocks it is going to be down about 8 l bucks at the opening bell why such a sharp drop well with they reported their financial -- position yesterday, their earnings fell short and down it goes 5.5% dropped 140 a share
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that van is on the the move honduras and guatemala might move to stop them after president trump threatses. >> that threat of cutting off money seem to be working in some sense stuart. now the hon dure honduran responding to threat of taking money away urge them to go home and according to the hondurans that is happening in some cases as you can see, though, the caravan continues to move forward. where one of the organizers wases detained in guatemala on the immigration violences. the ultimate aim, though, for this group and they came with just an a id get through to mexico they want to get to mexico and ultimately pass through to the united states. but the president not only threatened honduras but guatemala and el salvador that stuart is having an impact to see where this caravan goes from here. >> got it all right ash thanks
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very much. i want to bring in senator john kennedy republican louisiana now. mr. senator welcome to the program. what do you make this have caravan it is on the way it might arrive at the border right around election day. what should question do? i think we need to enforce border laws. left wing cranks are are going to say all of the american people are just being mean. no we're not. american people are incredibly compassionate when it comes to immigration few we welcome a million of our world's neighbors eve year. more than any other country. but you have to follow the law. those people come get in line, follow the rules wait patiently and they're admit we have 500 folks that try to jump the line, and the president is enforcing our border laws. just as he should and just like he said he would do. and the the problem that we have with immigration in america is not that we let in too few
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or too many people it is that there's been a 15-year bipartisan refusal on capitol hill to refuse to enforce america's immigration laws. if you don't like the law change it in the meantime we ought to follow it. >> bot it mr. senator, secretary of state mike pompeo he's in turkey he's met with president there about the khashoggi disappearance president trump says, we've got to get all of the facts before we jump to conclusionings i want to roll tape on that mr. senator. hold on for a second. roll it. >> dmendz whether or not king or crown prince knew about it in my opinion. number one what happened but whether or not they knew about about it. if they knew about it, that would be bad. if they didn't know about it, things bad things can happen. you look at what they're doing in iran. don't forget saudi arabia is a partner. >> senator, are we soft pedaling the saudi situation? >> we shouldn't if we are.
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look, americans foreign policy stuart has got to be anchored in values having said that one of the toughest jobs for a president is how to deal with on the far care in government that doesn't share value but who's interest are important to us. now, here's what i see. i think mr. khashoggi is dead. i don't think ail e yen abducted him or fell through a space time continue women i think he's dead and saudis killed him. i don't think it matters whether team salman knew it be. what do we do about it? i think that we have to condemn the conduct and a the strongest possible terms. i think the president in congress should do it together. but i don't think like some of my colleagues that we need to blow up the middle east doing it and i don't think that means that we ought to cut saudi
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arabia off have no contact with them cut them off like a dead stump. there are no democracies in the middle east with exception of israel. and i trust with exception of israel every country in the middle east about as much as i trust gas station sushi but we have to deal request them three senators of turkey saudi arabia, iran, iran is a cancer in the middle east we can't have a relationship with them. we've got to maintain a relationship with the saudis and with turkey otherwise -- the whole place is going to burn. and we're going to get pulled into it. now that's just reality. >> senator kennedy thanks for joining us sir on a busy day always appreciate it. thank you, senator. okay quick to your money. we open that market in about about 10 minutes time and we will be down about 90 point after a 500 point rally yesterday. there will be more varney from the white house after this.
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of deregulation. blake burman is with me at the white house right here. blake what's this about 23 billion dollars in savings in the last year? >> that image that you were playing is what president likes to show that stack of regulations what they've cut here administration trying to roll this out today saying look 23 billion dollars in regulation ares we have saved so far in the first two years or so. the obama administration they say was about 10 fold in the opposite direction about 250 billion in cost that obama administration they say racked up over 8 years what you hear from the president today he's going to have a cabinet meeting one of the themes 12 regulars cut for everyone that was brought in 176 gone 14 added. the president often talk about curet, this being single biggest thing that he's accomplished or at least one of them when he talks about economy, stock market a mainstay of the growth agenda which is produced a 4% economy. >> the president that's right at the heart of it. yep. >> that event that you just showed video of with the cutting
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of all of that that's what they talk about. by the way welcome to washington. stuart -- >> good to be here in the white house no less. blake you're all right. we've got to get to the market to open a little bit lower after the big rally yesterday. we'll show you how it opens after this. alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.
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>> all right you've got 20 seconds to go and open this market please bear in mind that we have a whopping great big rally yesterday up over 500 points. it was a positive jobs opening report that kale out at 10:00 eastern and market went straight up right from there. five seconding we'll piengtd out how we racket this morning after yesterday surge bang 9:30 eastern time it is wednesday morning, we're off, we're running, and we're down. okay we're down 99 point 98 point. 257 is where we have ohm that's a loss of about half percent. but again remember we were up 500 yesterday so now we're down 123 check the s&p please. toipght check the percentage loss on the s&p. it is -- muchless than the dow. there must be some big movers in the dow which is shifting that index sharply lower because s&p is only down a fraction. and nasdaq it's up. it is up one-third of one percent that is a big deal. the dow sharply lower, and
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nasdaq up. take a look at net flex how did that open this morning it got blowout numbers reported late yesterday. a bigging jump in subscriber growth, and that means that stock i think we're going to see it momentarily bingo 30 dollars higher, that's netflix in the very early going. going the other way is ibm their revenue fell short the dreaded expectations coming in and down 6 and a half% look at ibm down below 140 a share down 9 buck this is morning that is a hit. who is with me? not in the white house but up there in new york. michelle is with us. shah gilani ashley webster now dow is coming off that 500 point surge best day since march. michelle, does this rally keep going? >> absolutely stuart, and not only do i think it is because was strong earnings that we're going to see about 26% year over year increases we should see for quarter there's. but also just because we have one bad week in the markets does
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not change the strong economic footing that this country is on. so any type of pull b.c. right now is opportunity. >> strong economic footing what we're at the white house to discuss. i also want to talk about netflix blowout numbers. the stock is up this morning. shah gilani after this gain is too expensive for you to buy? >> too much for me today stewart i'm looking to buy it and gone above my level that i wanted to get in it so may come down a little bit you own it has more to go. but this market has moved a little bit too fast on the the bounce side of thing and i think pull back a little bit but i do think it has a lot further to go in upside. >> okay. tesla chief elon musk is going to buy 20 million dollar worth of tesla stock. same question to you, shah it is at 280 tesla 280 would you buy it at that point? >> no never been a fan of tesla shorted over year and i've made money, lost money but at this
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point i'm not a buyer i think too many problems. litigation ahead for -- both elon monk and tesla. and i think that's going to keep stock pretty much a lid on for some time to come. and if they blow the number next quarter that might change my opinion but right now i wouldn't tough it. >> three minutes into trading session after yesterday's big rally, is the market as of now we're down not the that much. down 125 points about a half percentage point loss. the individual stocks making news and moving -- higher profit of the rv maker that would be winnebago i believe that stock is up this morning. yes it is. wow, significantly higher. 16% gain for winnebago where's are the price of oil this morning it has been arranged 72 a barrel. 7114 this morning. how about gas prices? actually slipping a bit now at 2.387 per gallon of gasoline. facebook facing a lawsuit from advertisers who say it failed to
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disclose an error with a key metric that failed to disclose it more than a year. shah gilani book you again problems piling up for facebook would you buy it at 159? >> i bought it a little bit stewart and i would like to add to it. if it goes down i'm going to add to my position. i can't seem to got it right. making management mistakes and i think that's a problem for thing to. i think that they get past those overtime long-term this is a great hold for me and add to position it goes lower. >> become grow michelle you said that stocks are headed it higher. would you be buying into the big tech stocks which have led market over last couple of years? >> yeah it has hard to say stuart, and i do think a lot of those companies particularly like netflix right you're basing your judgment on a i assumption of earnings right rally today is because of subscriber increases. so i would be a little wearisome and particularly with facebook i absolutely agree that the headlines just keep getting worse. and it will be very interesting
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to see how they challenge their earnings call in later this october and see what happens from there. >> amazon workers they're pushing jeff bezos the cofounder there founder i should say don't sell facial recognition technology to law enforcement. what do you make of that, ashley? >> interesting anonymous worker who posted on a -- company site that look, we shouldn't be using facial recognition technology and giving it to law enforcement because worker claim it disproportionately hurts color and immigrants and those exercising their first amendment right but as you pointed out stu this comes literally one day after the company's founded jeff bezos says absolutely. our technology should be available in the defense of this country. so interesting that those workers in silicon valley they live in a lovely little bubble don't they? >> don't they ashley it is that time i have to say thank you and good-bye to michelle and shah ladies and gentlemen thanks for being with us. check that big board now we're
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down 150 point we're back to 25,641. special guests, with us right now, we are after all in the white house so let's bring in white house budget director, his name is mick no stranger to this show also the acting director of the consumer financial protection bureau. have i got it right, mick? >> of consumer financial protection. >> i'm reading prompter. how are you doing this morning? [laughter] i'm in good shape. welcome to this fabulous building isn't this a grand piece of architecture? >> i'm going to stick it right to fop >> what do you want to fob? >> getting rid of a spending program you can't do it. impossible -- once you've got a government program, with you can't get rid it have. and we sure isly need to get rid of some spending now because what a rising deficit with a 4% growth economy. how do you cut spending you can't -- >> it is very difficult but here's why. because of the rules of the senate which requires 60 votes for every single spending bill
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in senate by definition unless one party has 60 votes rarely happens every spending bill must be bipartisan. and the way you buy bipartisanship in this town is to more money even if republicans every single one of they want wanted to cut spending they have to get eight or ten democrats to go along you cannot commit to cut spending so you end up spending more money. >> so we have a mess here. >> you did there's no question about it. >> rise deficit with a 4% growth economy that really -- there's nothing. you're telling me essentially you can't doch about it. >> you can't keep in mind it is interesting happening we're going through budget season right now, and i happen to run an a agency across the street at the bureau in addition to my work here at the office in the budget but we're setting our budget right there right now. we will spend less money next yore at the bureau e than we did this year. there's i think right now three agencies that can say that. one thing they have in common not a single one of them is appropriated by congress so when you're given ability to actually run our budget we spend less. when senate democrats are involved in the processes we
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spend more, and we have to figure out a way to change that because seventies are getting to be a problem. >> he's another rising interest rates anybody who has borrowed money whether a morning or car loan they're paying a little bit more. and mortgage monthly mortgage payments are going up significantly. that's another problem for the economy. but there's nothing again nothing you can do about that. >> interest rates are still a historically low level but no one borrows more money than we do at the federal government that means no one is more imangted than rise interest rates than we are, every 100 basis points in our leptionding cost cost about about 160 billion dollarst that a big, big number, in fact, this e year, i think we will only spend more on defense than we will on interest payments now you can put in medicare and social security aside but in discretionary part of the budget stuff we budget for every single year are second largest lineup is interest. >> there's nothing you can do about it. convince the democrat that this is a problem but it is difficult. >> freedom caucus -- in my heart i still am.
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>> but charges spending 4 trillion and you can't cut spending. congress spends the money. that's the way the constitution is set up. we can sending budgets up anden we have. that save less and spend less money and save money tay lower the deficit and congress northeastly senate democrats throw it in the trash. >> doing the job. >> having a great time to talk about deregulation today at the cabinet meeting to talk about budgets in cabinet meeting fun week at the white house. >> i came across this astonishing number student loans, student debt 1.53 trillion dollars. what -- the pressure to discount some of that forgive some of those loans that's going to be intense would you be in favor that of that? >> it does hurt the economy. when we took legending of money out of private sec for and moved into public sector who is largest of student loans right now the federal government if they make a loan they really care about getting paid back if the government makes loan to you mob they do. maybe they don't and it is not surprising that we've seen
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student loans skyrocket. because government now makes those loans. >> the debt there's millions of youngsters out there. like folks with with 100,000 debt -- >> we like them to repay their debt and educating people one that we do at bureau that doesn't get that much attention is that we are with charged with educating consumers and trying very hard to educate young people especially because this for a lot of them is first major debt they take out is look if you're going to borrow this much money use it to get an education that can get you a job to help you pay it back. >> is loan forgiveness part of your -- attenrare are? >> we think it is fair to pay it back and borrow right now to go to school borrowing for other taxpayers and you want other taxpayerses to give you money to go to school and that's not part of our program. >> red tape cutting day here at the white house. good day for us. name one regulation that you intend to cut in the very near future. >> i think we have 176 that we cut last year. this year --
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the future 3 big ones working on this year and you'll recognize them waters of the u.s. that says a road side ditch is a navigatable stream and for government and cafe for cars to add a quarter of a trillion dollars this cost to consumers last one is clean power plant rule that we're working on e three big ones we're working on now to get out in next couple of months. >> nick you're having a good time which i find astonishing actually. bear in mind your job. >> you have to be a strange fern to like this job and i love it this means i must be really strange. >> mick thanks very much for being with us. we appreciate it. thank you. fnght all right we're in washington. several huge major guests to come talk about money. kevin chair of the economic advisorrings join us in our 11:00 hour, and we've heard it time and again, the trucking shortage. i want to know what's going to be done about it secretary of transportation elaine cho is
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with us and president is holding cabinet meeting on deregulation this morning if gop loses the house, can deregulation still go ahead? we'll have the judge on that one and he's next. this is loma linda, a place with one of the highest life expectancies in the country. you see so many people walking around here in their hundreds. so how do you stay financially well for all those extra years? well, you have to start planning as early as possible. we all need to plan, for 18 years or more, of retirement. i don't have a whole lot saved up, but i'm working on it now. i will do whatever i need to do. plan your financial life with prudential. bring your challenges.
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this is breaking news as we speak first lady melania trump plane did land safely after having mechanical issues. ashley come on in. only well there was a press poll onboard this plane as well ten minutes into the flight there was a burning and what is described as a thin haze of smoke. the plane turned arranged as you could imagine no one hurt plane landed safely i believe first lady was headed to philadelphia
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where she's expected to attend a hospital conference this morning not sure if that will go ahead. but again smoke in the cockpit may be reports of maybe the unit in the cockpit started smoking for whatever reason. but everything is okay and plane landed safely at andrews maryland stu. >> check the big board what's happening to your money this morning after big rally yesterday down but not much a half percentage lower dow is at 25,665. yes, it is red tape cutting day at the white house. ♪ come on in judge andrew napolitano here's my question if the gop loses house can deregulation continue without congress can the executive branch just do it? >> the short answer is for the most part yes stuart, because type the regulation we're talking about comeses from administered of agencies the heads of which are president trump or eventually will be
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longer he stays in office president trump appointees. so when an a administrative agency proposes a rule and at the same time removal of two old ruleses that what he told him to do every time you have new one you have to get rid of two others that can only be undone by a vote of both houses of congress that has not been happening because both houses are controlled by republicans so if the house went to the democrats, that process would still continue. because the senate presumably would stop the house from overrule aring the removal of these regulations. the bad news is, 2% of regulations are built into federal law, that the president is obliged to enforce it is a very small window of the 80% where he has ability to interfere. >> key problem here is loosely written legislation. which the executive agencies then have to interpret.
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that's the problem here isn't it? >> but when the interpreters are donald trump appointees, they tend to interpret these loosely written regulations in favor of the free market and against the heavy hand of the government which pleases people like you and me and i think has based which 79s left government interference in the free narcotic. but because they are so loosely written, appointees of fill in the blank some republican presidents almost all democratic presidents would interpret the same regulations in another way. so the good news is, i don't think the midterm elections will affect this. the bad news is, the body of law authorizing these regulations needs to be changed by congress. and if they're going to lose the house next month they ought to make those changes now. while they have both houses of congress. >> good luck with that napolitano good luck indeed all right judge thanks. >> you look preationd in that fancy building you're many this morning. >> incredible isn't it? >> thank you, judge.
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quickly your money where are we down now 140 point for the dow industrials after big rally yesterday. small business administrator linda mcman next, which regulations will she cut for small businesses? we've got the story for you. -ind year storm should happen every five hundred years, right? fact is, there have been twenty-six in the last decade. allstate is adapting. with drones to assess home damage sooner. and if a flying object damages your car, you can snap a photo and get your claim processed in hours, not days. plus, allstate can pay your claim in minutes. now that you know the truth... are you in good hands?
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president trump just tweeting on that caravan headed towards america here's the tweet. hard to believe that we're thousands of people from south of the border walking unimpeded toward our country in the form of large caravans. that the democrats won't approve legislation that will allow laws for the protection of our country. great midterm issue for republican. that's the presidential tweet on the caravan. ♪ and i'm going to switch gears joining us small business administrator welcome to the program. good see you ma'am. >> thank you for having me. optimism, small business optimism. i've been e e-reading charts optimism is off the charts. but at the same time, you've got 7.1 million jobs available that you can't fill. i guess that's a nice problem to have. but what are you going to do about it? >> a high class problem. you talk about looking at the charts for this optimism i'm out
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tour the country been to 43 states in the last year and a half visited over hundreds of businesses that optimism is there. and we have a president who has a comment approach to job growth with cut taxes, regulation arings and yes what's happened is you know, we have reduced unemployment to 3.7% that makes small businesses having to compete for that same work force stuart: am i right in saying that the regulation which you are most proud of killing is the overtime rule? >> that is certainly one of them. i would like to take credit for that. that is one of the things small businesses talked about. there was a hotel in colorado that said you know what? if this rule stays in effect i will have to reduce work hours and lay off people. that is one of the examples. you had a houston group of entrepreneurs, once the overtime rule was no longer in effect they proceeded to go for the to open 15 franchise restaurants in texas and oklahoma because they
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now know what they can do with those restaurants. stuart: there is a skills gap. >> there's a skills gap. stuart: you don't have the skilled people to fill them. >> that is one of the things we're working with secretary devos on. stuart: should we let more immigrants in? >> the president really wants legal, skilled, merit-based immigration, for sure we need workers to come in. we need to like at the paradigm of our education so we're focusing on vocational training. we need plumbers. we need electricians. we need welders. taking some of the emphasis for four-year education. i'm all for four-year education. our high school counselors need to let students go into areas they can act sell in. stuart: you brought with you a small businessfy chip kovac. >> good morning.
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stuart: your business benefited from deregulation. tell me how. which deregulation worked for you? >> deregulation and energy manufacturing, companies based in youngstown, ohio. we're right in the center of oil and gas boom happening now. multiple pipe mills in the area are busy. we support industrial manufacturing, repair the equipment. keep them up and running f they're busy, we're busy. right now we're the busiest we have ever been. stuart: i don't know if you watched the program 45 minutes ago, interior secretary ryan zinke said we'll produce 14 million of barrels a day by 2020. that really helps you guys. >> that gets rid of dependency on foreign countries. stuart: linda mcmahon, last word to you. >> pleasure to serve this
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president doing what he said he would do. common sense to job growth. empowering american businesses and yes, he is cutting taxes and regulations. he said he is going to. the evidence is clear it works. stuart: are you having a good time in washington? >> i am but i have a better time because i get to go around the country and do things like tour. chip's business, i got to watch them work on the floor. you talk about enthusiasm? it is really there. stuart: linda mcmahon, chip kovac, appreciate it. >> thank you, stuart. stuart: big guest here on big day for "varney & company," national economic council director, larry kudlow is at the white house. he will join us at the top of the next hour and that will be after this. cal: we saved our money and now, we get to spend it - our way.
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on the east coast. 7:00 in the morning in california and the west coast. your eyes are are not playing tricks on you. this is not my normal set. we're live from the white house today. we have another packed hour for you coming up. first to the markets. now we're down 200 points. remember, please, we were up over 500 yesterday. this is a loss of .79%, 202 down. one of the big drags on the dow, is the dow stock ibm. it is down 6% and that's $9 lower. that is a big drag on the overall dow average. meanwhile, secretary of state pompeo, he is in turkey. he spoke to president erdogan about the disappearance of the columnist jamal khashoggi. he said if the saudis knew about it, it would be bad. deregulation at the white house. big cabinet meeting on the subject in the next hour. the administration says the president's deregulation
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policies have saved taxpayers $23 billion in the last 12 months. moments from now, larry kudlow, trump's chief economic adviser. later, transportation secretary elaine chao and agriculture secretary, sonny perdue. yes it is a big day on "varney & company." ♪ stuart: first this. just listen to what president trump said about your 401(k) if the democrats take the house. roll tape. >> look at 401(k)s. so let's say we have a really bad time in three weeks from now. your 401(k)s are going down tremendously. people will lose wealth. if they don't go out and vote, then they have themselves to blame because they will lose wealth, tremendous amount. i built up $11.7 trillion in
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wealth. stuart: all right. "barron's" senior editor jack hough is with us. the president make as clean-cut case if the democrats win, your 401(k) goes down, the market goes down, what do you make of that? >> it is a great case in simplicity. i think it is utter nonsense. the stock market does not act director according to who is in office as people think. we always like to pretend we know the exact reason the market is going up and going down. the people saying this about trump, wouldn't say obama's policies propelled the stock market higher when he was in office. it is a simple message. i think it will be effective. i really expect republicans to outperform expectations in the midterms. a key reason is, people feel pretty good about the stock market right now. they don't want to take a chance on something going wrong. stuart: that is a political strategy but, jack, do you believe the market goes down if the democrats win the house in november? >> will it trade down for a day?
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you know maybe. will it reverse course and go on a downward path? i don't think it will be a cause and effect relationship but let me just say this, this market is going to roll over eventually, right? it always does. a next recession comes sometime. this has been a long expansion. if we have the expected outcome this midterm election and democrats take control of the house, the set-up could not be more perfect for donald trump going into his re-election campaign. if the market continues to rise he takes all the credit. if the economy rolls over and market tanks he has someone to blame. so i think the, set-up is extremely favorable for republicans. stuart: charles hurt, "washington times" opinion editor and fox news contributor joins us now. that sounded from the president like a warning, watch out, vote for republicans abuse if you get the democrats in your money takes a hit. is that a good strategy, do you think, charles?
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>> i think it is, i do and i think it is very important for the president to make that case as simply as possible, clearly as possible. we're looking at, you know, every time, as we talked about ad nauseum, first midterm election for a new administration, their party always loses seats. barack obama lost 63 seats in this, in his first midterm election. and we're talking about possibly losing maybe about half as many. we're talking about, maybe it flips to democrats. maybe republicans hold on, we're not so sure. i would say anything in the 30-seat range is tremendous victory for republicans, but, the president has to put the fear of god in republican voters. we know that his approval rating is very high. the problem we've seen for him has been that, if his name isn't on the ballot, sometimes voters don't go out and vote. making a case like this, making it crystal clear, all the interviews you've done today,
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talking to people in the white house, talk about cutting red tape, talking about cutting regulation, all things set up a nice environment of a, good environment for growth, he needs to make that case to voters. stuart: we're going to talk more about growth. charles hurt, thank you very much for joining us. come on in, man of the hour, larry kudlow, national economic council director. pleasure to meet you face-to-face, larry. >> pleasure, stuart. stuart: before we go any further, yesterday when we got the jolts report, job openings report, that blew me away 7.1 million unfilled jobs. you must be ecstatic. >> that is so interesting, first time in history, more job openings than there are unemployed. that is a very interesting stat. i want to push my colleague ivanka trump, who is involved in retooling, retraining, reskilling of wokers, we'll need
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that more and more to fill unfilled positions. i think we can do that. stuart: wages have to go up. if you can't fill all these jobs, wages have to rise to pull people out of early retirement or whatever it is they're in. >> you're quite right. that is the incentive for people to come back to work. stuart: when will we see it, larry? wages are rising. stuart: not that much above inflation. >> there are different measure of wages. wages are rising a percentage point above inflation. real disposable income, that is the fatter paychecks. reagan, reagan used to call it take-home pay is rising 3%. that is a great number. that is the whole workforce. that is a good number. here is a stat that i just love. blue-collar workers are being employed at the fastest rate since the mid 1980s when i was a cub scout working for ronald reagan, but also,
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blue-collar workers and service workers, low-end service workers, you know, retailing and so forth, their wage rates are running faster than the white collar workers. so this is an expansion the likes of which we have not seen since the 1980s. it is covering everybody. we are crushing it, okay? stuart: are we keeping going with 4% growth? >> the american workforce and the entrepreneurs and the small business owners which i think are the new face of trump economics, they're crushing it and they're taking a swing at the ball because, first of all, they're making more money after taxes, after the tax cuts. second of all we streamline regulations so the small businesses can survive for a change. but third of all, psychologically, president trump comes into office, the confidence measures start the day after he is elected and have not stopped rising.
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have not stopped. and so, he has said the war on business is over. he has said the war on success is over. you can keep more of what you earn. he said the war on energy is over. now people hear that. he is basically, just take a swing at the ball, okay? go for it, i have got your back. this is psychological confidence issue so important, and you see the optimism coming out everywhere, okay? the big companies, the middle companies, and most of all, the small, new companies. stuart: with the economy doing so well, we're growing what, 4%, why is the deficit going up? it is not supposed to be like that, is it? strong growth, higher deficit. you know it is not supposed to be like that. >> year or two on supply-side econmics. first of all the deficit came out $100 billion then cbo first thought. that is not nothing.
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3.9% of gdp. that is quite manageable. the issue here, we have to keep growing, which we will. this is not a one-time growth. we'll have recurring growth, a huge investment boom, capital is pouring into the u.s. stuart: 4%, i have to jump in larry, i asked you this many times -- >> atlanta fed is calling for 4% in the third quarter. so is the st. louis fed. we will be very happy to get three, 3 1/2% frankly. we did 3.2% in the first half. everybody said it couldn't be done. this is one of the biggest stories of the year. stuart: that is not covered by the way. let's go to next year. you're confident of 3.9 or 4% this year or into the third quarter. take me into next year. >> i don't see why we can't repeat it. i don't see why we can't repeat it. this is not one-time payment, this is not demand side, i will give you a couple hundred billion dollars. this is a reduction in tax
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rates. it keeps on giving. it keeps on giving. every small businesswoman will be able to keep nor of what she earns her new little company, might employ, six, eight, 10 people. she knows that. she will keep on doing that. this goes on for quite some time. we have not had a business investment boom, right? cap goods, machinery, equipment, technology, campuses, you know this, we have not had one of these in over 20 years. i'm confident this thing will go on for quite some time. stuart: rising interest rates, the fed said, the president says, the fed is the biggest threat. you're smiling here. i can tell you're smiling. i don't think you wanted the president to say that? >> president and i talk quite a bit about it. stuart: you didn't want hill to say it? >> no, that is not true. he is entitled to his opinions. he knows a lot about business, he knows a lot about investing
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and he knows a lot about interest rates and issuing a warning. let me add to that, as he himself said, actually yesterday on fox i believe on fox business, he is not interfering with their independence. he is not going over there to tell them change their plans or their strategy. he is giving his view. he is saying, be careful, because if you move too fast on rates, it could damage -- stuart: maybe he is right? if you go into next year, rates are still rising, that could really put a clamp on the, not recovery but the expansion of 4%? >> you know, i think everybody agrees here really. i think the president actually agrees with jay powell from the fed. we want growth and growth does not cause inflation. powell is having a bit of a revolution at the fed. he is throwing out the fed
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models and that is very important and jay has said many times, growth doesn't cause inflation. that means implicitly there is no need to spike up interest rates. we're just normalizing. i think the fed and the president actually agree on the goals. look, i don't have any trouble with the president saying things. he has his opinions. i have my opinions. we all have lots of opinions. you have good opinions. they're good opinions. why not? media goes crazy over this stuff. why shouldn't they? the president is an aggressive guy. i kind of like it. in the end i think you will see the condominium of thought. stuart: 169 house members, want exclusion for chinese tariffs, carveouts for their particular interest. would you allow that? i know you're at the heart of discussions. would you allow that?
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>> secretary ross is looking at that stuff. i don't think we're giving large carveouts. stuart: some carveouts? >> i don't want to say. i think wilbur is looking at it right now. he is going through a process. i don't want to get ahead of his curve. maybe yes, maybe no but stu, china is a problem. china is a problem. they have not responded to our asks, okay? and it is not just the trade deficit per se. it's the theft of ip. it is the forced transfer of technology. they just put a new rule in china about cybersecurity where the police are allowed to hack in to american and other foreign companies. that is outrageous. they're going the complete wrong direction here. stuart: that is taking a hard-line. they're taking a hard-line. absolute impasse at the moment. do you think the china strategy
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wait until after the my terms in the hopes that the gop loses the house and they have more leverage? >> if that is their thinking they better rethink their thinking because look, the house may change hands or not. i think it will be very close. the president is not going to change his view. point number one. china has got to come back into the world of lawful trading practices. they are not. and everybody around the world knows that. we just signed a tripartheid agreement with the eu, usa, and japan criticizing quote, non-market economies,re china. the whole world knows china is fine. elections are fine, whoever comes out in the house, so forth, the president is not going to change his view. by the way the democratic party is not going to be loose with china. i mean they're running against trade. both candidates as you know in
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2016 ran against the pacific trade and in general. they're tough. this is an era where united states is defending its economic rights for our workers and manufacturers and our overall economy. china will miscalculate if they think there will be some change in november regardless of who wins it. miscalculation. the president will probably meet with president xi at the g20 in argentina. i will be there. everyone is going to be there. we will see whether that, you know, person-to-person diplomacy yields any benefits. i think it is always better to talk than not to talk. right now they have been unsatisfactory to me. i want to see a trade deal. i have become very cynical because we've given our asks and china does not respond and i worry, stu, i worry, that they're moving in the wrong direction with a more closed economy and a less liberal economy and the great reforms of
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ping years ago have been basically been abandoned. that is a trouble spot. stuart: saudi arabia, if america decides that some form of punishment is required, when we figure out exactly what happened, if there is some form of punishment it cannot be too severe because you don't want to break the diplomatic relationship with saudi arabia and the alliance against iran? >> that's an important point but i will add the president's point. first of all they're innocent until proven guilty, point number one. point number two, they promised a very thorough investigation. there will be many people observing that investigation. we will have to see where the facts lead us. the president has said, if it does turn out that the allegations of the saudis murdering this guy is true, if, if, if, if, he will take very strong action. he will take very strong action.
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that is his style. without getting ahead of him on this, i will just say, people should believe him when he said they will take action. it is his style. believe him. but we have to wait to see what the evidence brings. stuart: as you obviously know, larry, this is red tape cutting day here and why we're here. >> yes. stuart: mick mulvaney sat in the chair where you are. >> did he fit the chair? a long time. stuart: mine too. he said deregulation, deregulation of the last two years is the mainstay of the growth that we've seen in the economy. do you think he has gone a bit far on that? >> no, no, i think particularly in 2017. deregulation started everywhere across the board, especially energy by the by, i think that started this push and started the small business push and the blue-collar hiring. then comes the tax rate reduction which adds to it on
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the incentive front. so they're working very much together. again i use my example, a woman owns -- starts and owns a small business. she can survive because now the red tape costs are vastly reduced, and, she can survive because she can keep more of what she earns with the lower tax rates. that is huge. you know, we lowered the business, the small business tax rate. take a look -- take a look -- stuart: i have a hard break. you remember those days. >> i've been in this business. stuart: remember those days? >> look at confidence surging in nfib, quite remarkable. >> reported quite extensively. larry kudlow, shake that hand. thank you very much indeed. >> thank you. stuart: i promise more "varney" after this.
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stuart: now, please, listen to what president trump had to say about the arms deal with saudi arabia. roll tape. >> if we don't sell them the equipment they will buy lesser quality equipment because we make such, it is so much better than anybody else but they will buy it from russia. they will buy it from china. so we're not really hurting them. we're hurting ourselves. so we want to be smart. i don't want to give up 110 billion-dollar order, whatever it is. it is the largest order ever given by an outside country, okay? i don't want to give that up. stuart: zuhdi jasser, is with us, long-time friend of this program. he is with us now. the last thing we want to do with saudi arabia, no matter what they have done, the last thing that we want to do is to interfere with the containment of iran. am i right? >> absolutely and i have to tell you, you know i've been on your program many times talking about
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human rights, freedom, democracy, how much the ideology of saudi arabia has been part of that cancer, however i'm also understanding of the riyadh politic of the region. we spent eight years of obama being force-fed inappropriate nuclear deal, ignoring all the human rights disasters, the assassinations, everything happening out of iran, terror sponsorship because of a nuclear deal. now because an islamist who had american residency was assassinated, we're supposed to abandon an entire alliance president trump was trying to re-establish, ignore all the consequences in the region and ignore the fact that we are at war globally, stuart, against radical islammism, which includes brotherhood alliances, comainists of iran, turkey akp alliances. strategically there is nothing dumber we can do to abandon ally. yes, they are a bad actor and sudden punish them but not at
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risk of abandoning major arms sales and destablizing the region. stuart: what should we do if it is proven there was atrocity in the consulate in istanbul and that is proven and we're satisfied with the proof, what should we do? >> i was on the u.s. commission for religious freedom for years and we asked mechanisms to ask for transparency, we ask them accountable, not just reforms bringing in wrestling, allowing women to drive, but transparency about human rights, actually beginning to be accountable on the world stage, those are things we can now have leverage to demand they bring real reforms and not just window-dressing. holding them accountable, the center for counterterrorism we have, beginning to demand imams be protected and not beheaded that counter the ideologies, beginning to have a freer press. right now they are actually clamping down in the kingdom rather than releasing some of the reforms necessary. so there are ways to hold our allies accountable, like we
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should be doing with turkey, like we shoulding doing with egypt, other allies, being that take us for granted because we're allies. stuart: is it possible a faction within saudi arabia did this without the knowledge of the king or the crown prince. >> well, you know, listen, jamal khashoggi was close to walid bin talal. there was all of the royal family that was put into the ritz-carlton because of connections to trying to stop the brotherhood connection with the wahhabis. so you look back, this is probably part of that front in the war between the kingdom, house of saud, and viral muslim brotherhood globally. khashoggi was part of that. who knows if they were trying to bring him back and question him in saudi arabia, that went awry quickly and he ended up dead. i don't know how up this goes. very high that the royal family knew about it, were active in trying to bring him in. whether they called for the assassination for not we'll need
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to know with better intelligence. stuart: we will find out. zuhdi jasser, thanks for being with us again today,. >> anytime, stuart, appreciate it. stuart: i have to check the market. we're down 230 odd points. we're on top of the money issue. later this hour, the truck driver shortage issue, a big topic on "varney." we'll talk about it with elaine chao, secretary of transportation. i want to know what can be done about the truck driver shortage. autonomous trucks? may be. president and ethanol, big deal for farmers especially in iowa. i will talk to sonny perdue. secretary of agriculture. we're here at the white house. there will be more "varney" after this. i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade?
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stuart: check the market. we're down more than 200 points for the dow industrials. ladies and gentlemen, remember yesterday we were up 500 points. this isn't much of a pullback. check out the big tech names. you have to follow them. that is where the money is. we see most of them lower. i see facebook and amazon on the upside. amazon, alphabet, microsoft, marginally lower. no moves for big tech thus far today. now this, oh, yes, the country is facing a truck driver shortage. many truckers are reaching retirement age. joining us elaine chao, secretary of transportation. we're also joined by a truck driver, david boyer. more with him in just a moment. madam secretary. welcome to the program. >> thanks so much for having us. stuart: seems to me there is real shortage. >> absolutely. stuart: i don't know what you can do about it. >> the economy is doing so well. there is a 4.2% gdp growth in the second quarter alone. who would have thought it would
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be this robust an economy. we're having a shortage of skilled drivers of, skilled workers of all kinds, including obviously truck drivers? because it's a very skilled job. it is very difficult job too. >> yes it is. we would want them to be skilled, wouldn't we? stuart: there is proposal to allow 18-year-olds to drive a big-rig across state lines. they want do that at the moment. >> it is one of our pilot programs. >> it is not popular. >> this is not the first time they're driving. stuart: it's a big-rig. >> they're doing it for military. they drive army trucks, all sorts of logistical trucks for the military. these are not inexperienced 18-year-olds. this is actually part of one of the innovations, one of the initiatives that was in the fast act, that was suggested by senator deb fischer. these are to allow young people
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of, truck drivers in the military, they're military personnel who drive these big, hefty trucks, in the military, for all of us and yet they can't drive across state lines commercially. that is the point. stuart: this is cut red tape day. >> absolutely. this is an example. stuart: i'm told, issue with the truck driver shortage. i'm told, we're about maybe you were going to take maybe a light touch on regulation of driverless autonomous trucks. is that accurate, light touch? >> no. that is not true at all. we are not going to be the government, the government is not going to be top down command-and-control. can you imagine anything that is more horrifying than to have the government dictate the rate of technological change? we would have no change at all. stuart: i've got to take a break. we have hard breaks. >> okay. stuart: i absolutely promise, more "varney" after this.
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under care by focusing our mind on whatever's on yours.
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ashley: come being up after the break, a special guest will join stuart. that is all i'm going to say. national economic council director larry kudlow spoke to stuart about deregulation. let's hear what he had to say. >> i think particularly in 2017, deregulation started everywhere across the board, especially energy by the by. and i think that started this push and started the small business push and the
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blue-collar hiring. then comes the tax rate reduction which ads to it on the incentive front. so they're working very much together. i use my example, a woman owns a, starts and owns a small business, okay? she can survive because now the red tape costs are vastly reduced and she can survive because she can keep more of what she earnings -- earns. stuart: break into a live broadcast this is one of those times. we have a very special guest. president trump just walked into the room. i stood up, shook hands. he is with us right now. mr. president, thanks for being with us. >> only because i like your show. stuart: thank you very much indeed, sir. >> i watch you. stuart: really fast, first lady melania in some trouble on the plane this morning. everybody okay? >> shy is just fine. they spoke to her. she to the in another plane. i hope this plane is better than first one. they had a problem. they had a problem but she's
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fine. stuart: okay. does everyone say to you you're doing awful lot of media and i like isn't. >> i don't like it. i like getting the point across. i heard you say many times the economy isn't covered properly. it is not. the economy is not covered properly by so-called mainstream media and it isn't. we went up almost 600 point yesterday. they didn't have it on major news. you couldn't find it anywhere. the economy is doing probably better than ever done in history. they don't even talk about it and that is because they have their opinion and they like to keep their opinion going the way they have it. they do not treat us fairly. therefore if i do the news, they all want me on the news. so i talk about it myself. stuart: are you keeping up this pace of media after midterms or run up to the midterms. >> probably not. this is for the midterms. we want to win, get republicans nominated and get them elected. we need republicans. we talk about majority. we have majority of this much.
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i say somebody has minor cold we no longer have majority. we need republicans. we'll have tremendous border security when we do that. we'll continue with tax cuts. we have other tax cuts planned. we'll do cutting of the budget by the way which will make you happy but we'll cut budget. stuart: you are cutting spending? >> we'll do it. that is not as tough as you think. frankly a lot of fat in there. we had to get the military done last time. president obama let it go, i can say beyond president obama. the military was in terrible shape. now we have 700 billion approved. we have 716 billion, two years. our military is rebuilding like it has never been, really never happened before. we got a raise for the people. they haven't had a raise in 11 years. we got a raise for the great people in the military. we're doing a lot of things, a lot of great things but i am now doing some cutting of the budget because there is a lot of fat. in order to get that 717,
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716 billion we had to give up things to the democrats that i hated to give up, that you wouldn't have liked but i had to but we had to rebuild the military. stuart: what is the big deal economically in the next two years? >> i think we have a lot of things, very big still, we cut regulations more than any president ever. you can go four years, eight years, doesn't matter. this tremendous regulations that we could be cutting still and we're doing it. used to take 21 years to get a highway built. bad case but it would take 21 years. we're trying to bring that down to two, and maybe even one of the by the way, if it is not right we're not going to approve it but we'll not take 21 years to find out whether or not we can do it. stuart: is that part of the implementation of the infrastructure rebuilding? >> it is part of that and a start. infrastructure will be starting right after the midterms. we think that will be an easy one. but we'll have infrastructure. we'll have everything. just more of the same. look what happened with our country. if you look at china, they're down $20 trillion and we're up
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$11.7 trillion in worth. that is a tremendous number. stuart: ready it start talking with china again or are they ready for you? >> i don't think so. i told them, they want to make a deal, i said you guys are not ready yet, you're just not ready because they have been taking $500 billion a year out of our country. it is time we stopped. we rebuilt china. you know that better than anybody. you talk about it more than i do i think and it stopped. you see what is happening with china. it's a whole difficult ballgame. now they're paying 25% tariffs on $250 billion. that hasn't affected our economy of the costs are not going up. inflation is low, very low, hasn't had any impact we see except for one. billions of dollars are pouring into the treasury. stuart: saudi arabia, we've got to find out exactly what happened. when we do find out, and if punishment is required, any idea what kind of punishment it might be? >> well, i hope we're going to be on the better side of the equation. we need saudi arabia in terms of
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our fight against all of the terrorism, everything that is happening in iran and other places but iran has been the leader. iran has been set back very big. when i knocked out the iran deal, it is a different country than it was. when i first came in, if you look stuart, take a look, a day before i came in, iran was taking over the middle east. they were going to take over everything, from syria to yemen. they're pulling back. they are having riots in the street. they are a mess as a country, that had to the do with the day i pulled that horrible 150 billion-dollar deal we gave them, iran nuclear deal. we pulled it. they will come back and negotiate. i'm not going to say they have no choice but they will come back to negotiate. if they don't, that is fine too. stuart: they will not walk away from saudi arabia? >> i dot not want to do that frankly they have a tremendous order, $110 billion. every country of the world wanted a piece of that order and we got all of this.
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we had senators and congressman, you know sir, we should not take that order. who are we hurting? it is 500,000 jobs. it will be ultimately $110 billion, the biggest order in the history in our country from an outside military. we would turn that down? why would we do that? hopefully it is working out. we'll find out. we'll get to the bottom of it. i hope the king and the crown prince didn't know about it. that is a big factor in my eyes. i hope they haven't. mike pompeo just left, went back to turkey. he is coming back late tonight. i will see him late tonight or tomorrow. i will find out. stuart: anybody ever said to you, mr. president, let me have your phone, i want to take your phone away, brief shining moment, don't want any tweets, has anyone ever tried that. >> no, i don't think we have the message. there is fake news, i'm not saying you, some of the people on fox, not all of them but some of them, there is so much
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misinformation being put out. that is my only form of communicating really, other than having a press conference every hour. if i do a press conference every hour, now we're communicating very well. polls are going through the roof. i think republicans will do well in the midterms. i'm doing a lot of work on this, to be honest with you i get such phony news. everything is a fake. yesterday i gave an interview to ap, the headline was totally different from everything i said. the headline was terrible headline. everything else was perfect. the quotes were all per february. they have been criticized for it. where did they come up with the headline? if i gave that up, social media, i don't call it tweeting, i call it social media, it goes on your show, every time i do something, we have breaking news, we have breaking news whatever it may be. i really believe if i didn't do that, stuart, number one i probably wouldn't even be here talking to you. stuart: you do like it, don't you? >> i do like it. it's a form of getting out the truth. stuart: you like the press conferences.
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>> i enjoy them. stuart: you never miss an opportunity, when a question is shouted at you almost always respond? >> what is funny, sometimes i get a nasty perp with a horrible stupid question from like cnn because they're just so horrible and so fake but you know, i get this horrible question from some reporter at cnn. then i will hit the reporter back, just modestly hard, next thing, president hits reporter, it is terrible, freedom of the press. wait a minute, they hit me so viciously, i give them a little jab the story is trump hits reporter. so you know, it is pretty unfair stuff. but again, you get out there, whether i do it this way or whether i do it through social media but we're definitely getting the word out. we have the greatest economy in the history of our country and it is not being reported. you go to nbc, which is terrible, terrible news organization but you go to nbc, cbs, abc, i mean, cnn we don't even talk about, go to these things, take a look, other day
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94%, that is of good stories. in other words they take a good story make it bad to neutral. stuart: never going to change. any negative will always be the headline. >> that is why i do what i do because i can sort of go over that. stuart: you seem to really enjoying it. >> i have no choice. do i have a choice? may i ask you? stuart: you really enjo joy it. >> you enjoy what you do too. that is why you do it well. stuart: thank you for being on the program. >> enjoy the white house. stuart: thank you, sir. >> love having you. stuart: yes, sir. there will be more "varney" after this.
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stuart: we are at the white house and charles hurt is with us. i believe charles, you watched the impromptu interview with the president right there. look, i will throw this at you. the man enjoys it. the man enjoys being in the media. he loves questions from the media. he doesn't care what the question is. he just loves it. he seemed to be enjoying it, right? >> he really does. he thrives on it. i love your question pointing out, he never does, he never misses a question. the famous scene of ronald reagan walking past the reporters, cupping his ear, not being able to hear the question. this guy never does that.
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he never pretend not to hear it. he goes right up. he can't help himself. he makes an important point, we've never seen this kind of hot, hot negative coverage of any president. and he really, i think he feels like he has no other choice. you were asking him about sending out tweets, he feels like that is the only way getting his version of the story out. i don't think particularly that is a bad thing. i think it's a very effective thing. we asked, that was the big question before he became president, would he stop the tweeting. of course he hasn't and he uses, obviously, he causes maybe some unneeded headaches here and there, but by and large he uses that to get whatever message he wants out in 40 characters or less. >> i want to bring in my colleagues ashley and liz back in new york. i'm sorry for hogging the show from the white house. ashley: it was the president,
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stu, which was terrific. it was terrific. liz: yeah. stuart: he seemed to be enjoying himself, not just because, you know, i'm very sympathetic to the trump growth economy. that's understood, but he appeared to be enjoying himself and handling everything with grace and vitality. that is what came across to me. ashley: i think he is having the time of his life. what is interesting about this president and this individual, he has no filter, which is very startling for many. it was on the campaign. he is now as president. as he mentioned, as you pushed on him, no one will take that phone away from him, stu. he understands the power of social media. he can talk directly to the people out there, going over their heads of the nasty, mean, mainstream media, especially cnn. of course you have another chance to get that in there. but you know what? it is incredibly effective. stuart: yes, i think it is. liz: i enjoyed watching it. like two of you were having, just a conversation, stuarts.
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didn't feel like an interview. just talking to hill. the thing insulting horseface tweet about stormy daniels is an issue, when the president speaks it is an official statement, you wonder how that plays with women voters going into the mid terms. you made news. he said he would cut spending. the other news, china wants to make a deal but they're not ready. he really wants to get infrastructure moving. that is a way to get nancy pelosi and democrats in the door. democrats say you want bipartisanship, let's get our highways fix and like. stuart: a stream of guests coming into our office, i should say here in the white house. we have two special guests with us now. the back up to this, president trump announced plan to allow sale of gas with high every blends of ethanol. this new ethanol policy, a big boost for farmers. joining us is son any perdue, secretary of agriculture and hog
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farmer, chris chen. mr. secretary you allow e15 ethanol gasoline year-round. >> yes. correct. stuart: why is that such a big deal? >> this is again american energy independence. american grown crops clean-burning fuel, giving customers and consumers more choice as well as independent energy policy president trump has. stuart: distort the market though, does isn't. >> not necessarily, give consumers more choice. if markets distort, choices distort you might can say that. i think it's a great boon not only for american agriculture and corn farmers but our consumers and economy as well. >> now this is cut red tape day here at the white house. >> yes. stuart: chris chen, fifth generation hog farmer is that correct? >> that's correct. my husband, kevin and i, our kids live on the family farm in northeast missouri. stuart: tell me how deregulation, cutting red tape
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helped you, your farm. >> one of the bigger things was the wotus, waters of the u.s. rule. the administration saw that was flawed piece of legislation. they reversed that, they're working on revising that. that was beneficial to all farms an ranches in missouri. stuart: forgive me imposing my personal view, i'm a tree farmer. they wanted to make it so i would have to ask permission of federal government, to move any rock within 20-yard of a stream. that is the waters rule. >> it was. stuart: i'm so much in favor of getting rid of that rule, you have no idea. what about tariffs, we have to talk tariffs. that is not deregulation but that is tariffs. that hurts farmers, doesn't it? >> but president trump's trade policy will help farmers. he is in it for the long term, he knows, farmers know that china has not been playing by the rules, not playing fairly for a long time. new agreement with mexico and china is better, mexico and canada is better for our
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farmers. korean agreement is better. now he has announced talks with japan, eu, great britain. so this is going to be better for our farmers in the long term. when china decide they want to play fair, i think the president is ready to play with them. stuart: am i right in saying that hurricane michael devastated some farmers especially south georgia? is it pecan farmers? >> pecans, cotton, peanuts, all those specialty vegetable crops. stuart: what can you do about it? >> they will need help. there is a safety net there, but the safety net for fda has never contemplates total destruction. some of these trees were 50 years old, toppled over. we talked a farmer, 75 years old, 100-acres of pecan trees, they're gone. that was seven station. -- devastation. president was there monday. vice president yesterday.
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stuart: help on the way? >> wee hope so. we'll talk to congress for supplemental bill to help them out. stuart: secretary purdue, chris chen. thank you very being with us. >> thank you. stuart: we have to check netflix. that is a big stock mover have today. tell me more, ash. ashley: up 6% because of latest earnings report. theres was a drop-off in the last report, it really hurt the stock. questions about the growth. latest earnings report put that to rest. seven million new subscribers from july to september. about a million here in the u.s. six million overseas. that brings the total number of subscribers to netflix worldwide at 137 million. that is a couple more million than had been expected, especially strong growth according to netflix asia, india. the india is a huge market netflix is targeting. netflix is working out.
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eight brokerages raising target of netflix based on these numbers. i want to bring up tesla as well, stu, if i could. we found out today elon musk, as part of a filing his settlement with the sec, that fine. says he will buy another $20 million worth of common stock of tesla. this by the way is not unusual for him. he already bought 10 million worth back in may. another $24 million worth in june. but again he will buy another $20 million worth. it did help the stock initially but tesla off you can see about 1 1/2%. stuart: got it. ash, thank you very much indeed. jam-packed show. here is what we have for you next hour. kellyanne conway, kevin hassett. more "varney" after this.
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these tremendous regulations we can be cutting still. it used to take 21 years to get a highway built. but it would take 21 years. we are trying to bring that down to two and maybe even one. by the way, if it's not right for not going to approve it. we're not going to take 21 years to find out whether or not. stuart: good morning, everyone. 11:00 a.m. in washington d.c. we are live from the white house as he saw president trump on the program talking about deregulation. the president has two big events happening here this hour. shortly he'll host an event on deregulation peer to 30 minutes from now he has a cabinet meeting. if we get sounder headlines in a cabinet meeting, you will see them real fast right here. we are going to be joined by two of the president's top administration officials aired counselor to the president kellyanne conway uneconomic
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about there, chairman kevin hassett. we will also get reaction to the political headlines from brett bair and yes of course we are watching for your money. stocks are down after yesterday's big rally. that of course can change any time. we are down to 60 at the moment. jampacked third hour of "varney & company" and it is about to begin. ♪ moments from now the president's deregulation event will begin. blake irvin is here with me at the white house. what exactly are we going to see? >> you're going to the president touted the regulatory efforts. a lot of folks will be at that event in the oval office comes to her. this is deregulation day. $23 billion in savings. so the administration says 176 regulations gone from the start
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versus 14 added. that is a ratio of 12 the one you can do the math. that's what it is. this is something the administration likes to talk about, something the president likes to talk about. signature issues of the administration. either way, cabinet meeting to follow that and i'm told as well the focus there will be deregulation. >> that's basically what it is. white house counsel economics sure kevin hassett. i'm not going to throw your vote on deregulation immediately. i get to that. you're still smiling. i've got to talk deficits. it's gone up $779 billion in the last 12 and yet we've got 4% growth. this isn't supposed to happen. you can't be happy about this. >> is definitely something we are looking at carefully as we formulate the budget. one of the things happening is there's been such a big capital spending boom that the expensing
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of equipment is reducing corporate income tax is more than was projected by the joint tax committee. in the long run it's good news because there's factories and machines that will produce output in the future. strange isn't the biggest problem with the deficit not so much government spending although it is clearly a problem. it is rising interest rates which makes servicing $20 trillion worth of debt much more expensive. and there's nothing you can do about it. >> rising interest rates are part of it, but a lot more we can do in spending could rethink the revenues will come back from the growth as soon as the expensing them slows down a little bit. sure into how can you cut spending, seriously cut it when you require 60 votes in the senate to get a significant spending cut. how can you do it? >> well, there's a lot of senators that you're about the deficit as much as the president does. maybe not as much as the president, but almost as much. a lot of deals in the past made a lot of progress. there were a lot of really serious problems facing our
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country like military unpreparedness and tax rates are really not competitive and he prioritized fixing those things. right now is focused like a laser beam on the deficit. we are doing the budget for next year. we have to finish that in the next two weeks. stuart: i mean, we've got to live with the rising deficit. that's what you say we've got to do. >> that's not what i'm saying at all. there's a temporary decline in corporate revenues in excess of expensing with gdp when the growth comes in will have more revenue. in the meantime we have to do a better job of getting out of the curve on spending. stuart: a lot of revenue pouring in the first part of next year when the 1% or is who lived in high tax states will not be getting those big tax refund that they used to get. you may well see a lot more revenue coming in. are you forecasting that? >> akamai would do something like that will happen next april-ish, when we start to see the tax rules change, people
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have complicated taxes won't necessarily have over withheld. they might. they might've underwent help you especially especially people from blue states. stuart: i asked larry kudlow earlier are we going to get 4% growth in the third quarter this year. he was unwilling to make that kind of forecast beard are you? >> i think it's possible right now. the over under is about three points have been. we run models everyday. we were going to be euphoric if we were about three because that's something people said was impossible. >> down from the second quarter. he feared 37, three pointing in the third quarter, that's not a good trend. >> ultimately what we want to do is maintain growth of three by 1% which is what used to be normal. democrats told us we have a new normal, which was the 1.6% growth in president promised last year. president trump believes he could have normal anonymous 3% growth.
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you can have some floors and have some fours and two cycle average three. stuart: he wants better than three. >> yeah, i've heard them say that. he wants much more than three. >> my job is to be like scotty in the engine room and i think for sure we can have a 5% quarter, but at some point when you're the most technologically advanced country on earth am i the only way you can grow more than 3% is if you invent amazing new things. and get growth at that level because they're starting from a lower base. stuart: abu a lot of people yesterday was the report of 721 million job openings, jobs available. i guess number in history. but she don't have the workers to fill those jobs. what are you going to do about that? >> first of all, the number of job openings is astonishing. 1.5 million more than when president trump took office. and so, one of the things we are seeing that is really refreshing
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as people are reentering the labor force. they are coming back because they can get a job. president trump is pursuing policies like we've got the council on the american worker trying to make us a retraining is easier for people who want to get back in. a number of initiatives we've taken to get people match to the jobs. right now there are more open jobs in the country then available workers. that won't be true of people, the sidelines. our focus is getting people off the sidelines. >> with this administration consider increasing immigration, especially skilled immigrants to fill the jobs available? would the administration consider increasing immigration flows? >> everybody in the administration as many other countries have been if we had more skills is immigration policy that it be really good for the economy. i'm not the immigration policy guidebook for sure we have more skills base more skills basically copy a country like canada then a much better growth
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prospects. stuart: kevin hassett, thank you for joining us. check the big board, please. we've not exactly come back. we were down to 52. now we are down to 30. we are down about 0.9%. i want everybody to remember that we had a 500-point run-up yesterday and right now we stand at 25,500. a couple thousand points away from the all-time record high. this is not a huge pullback this wednesday morning. i want to say on that extraordinary number. the 7.1 million job openings reported just yesterday. randa mr. vick is the best from the laffer center for supply-side economics. you say the jobs market is going to be very tight for a very long time. surely that means higher wages, doesn't it? >> sure it could. so much under them when the sens
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barack obama led us into a semi-recovery after the great recession. over 10 million people quit the workforce. it's going to take a long time to get people acclimated to working again a nice way of 7 million openings, whatever it is, you have to pull those people out. a great thing to do right now would be to train the federal workforce because that would get people who have been working back into the private sector and begin to address the budget deficit problem. stuart: easier said than done. what about the deficit? $779 billion in the last 12 months and rising. he can't do much about that in the short-term, can you? >> know you can't pair no you can't. let's are member that that number has precedence. he was one point for trillion dollars, double what we have right now. when we talk about rising interest rates come increasing the cost of servicing the debt, all the doubly piled up during the stimulus programs after the great recession, now the bill is
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coming due. i'm skeptical about using tax revenue to pay for that stuff. if we don't cut spending in that context, we really could come into the economic growth story. stuart: brian, stay there, please. i'll tell our viewers now later this hour president trump is holding a cabinet meeting and you can bet it will see some video inside the cabinet room. all part of the president's nonstop media blitz. brett air coming up on not one. also be joined by kellyanne conway, counselor to the president. a lot to talk about including saudi arabia, elizabeth warren and that my great caravan. don't miss what she has to say. she's on the show shortly. we don't forget about your money. we never do. a loss for the dow now 200 points. this is the third hour of "varney & company." we are just getting started. ♪ your company is constantly evolving.
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stuart: october has been its usual topsy-turvy month for the stock market appeared down one week, bounced back another, bounced back 500 points yesterday, down 200 as of right now. we need help. dennis gartman, the carbon letter editor and publisher is with us. dennis, are you going to hold our viewers hands and say don't worry. this is not the start of a huge selloff. are you going to tell them that? >> no, i'm not. do indeed worry. this may be the start of a large selloff. it's a large selloff in global terms. we've not been to new high since january. we've been at global market since january. the fact we broke 2000 points last week announced yesterday on lighter volume is very disconcerting and the fact we give back so many points today, another 215 as we talk i think you have to be very careful and
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rather than being aggressively long you should be demonstrably less so. i'm not going to hold your hand. i'll tell you it's time to be very concerned. stuart: what's the big problem? the comments so far, so fast over such a long period of time it's time for a pullback, is that it? >> what the real problem is the fact that the field is sponsored the bull market, the adjusted monetary base which had been expanded dramatically reached its peak in september 2015 and has been declining since then. the fed has been allowing its balance sheet to roll off. that the fuel that sponsored the bull market and here we are. it is very normal for the economy to continue to strengthen and it shall. for stock prices to become on before the economy turns lower as there is less feel about men out there and what feel there is has to come out of the equities market to continue to expand the supply of labor and equipment and plans. stuart: hold on a second, dennis. you and i've been around a long time and we surely can the
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baseline for stock prices as the profits made by the company whose stock you buy and there's nothing nothing wrong with profitability at the moment. would like to go 20% in the current reporting season. >> we will likely be 20% or 25%. that's not what's important. the fuel has been taken away and what is the propensity or capability of next month next quarter earnings to be even more egregiously high, likely greatly diminished. the market does a good job of forecasting, anticipating, discounting the future in the future has been and continues to be relatively bright. history shows stock prices go deadline before the economy turns lower. i'm telling people, be careful, be less long. it's been a long, did wonderful bull market and it's likely not to continue. >> here's something you completely missed, dennis
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because you only buy stocks whose products you can drop on your foot. i'm talking netflix yet they reported blowout profits out of nearly 7 million subscribers worldwide. up nearly 6%, you totally missed this rally in the big tax. >> not a question. i'm going to say it on thing i don't understand, i shall never understand big tech. i left back to the millennial spirit god bless them. take a look at what netflix has done teared up 6%, and but after the report came out he was up 15%. we are down 20 or $25 from the high. if netflix were to somehow get low work on the day i don't think that's going to happen. but what if it does? then you have to be concerned. net fixes down dramatically after the release of earnings yesterday afternoon. that's what's important right now. stuart: dennis, we hear you. thanks for joining us. thank you and he appeared in a
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moment we're going to talk to kellyanne conway about the disappearance of the saudi columnist. are we going easy on saudi arabia? i'll ask beardless nor president trump told me about moments ago. roll tape. >> hopefully it's working out. we'll get down to the bottom of it. i hope the king and the crown prince didn't know about it. and i hope they have it. mike pompeo just left. he went to turkey. he's coming back late tonight. we will find out. this place isn't for me. that last place was pretty nice. i don't like this whole thing. i think we can do better. change is hard. try to keep an open mind.
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come on, dad. this is for me, son? principal. we can help you plan for that.
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>> to be honest with you come i get such phony news. the headline is different than everything i said. you know, the quotes were all perfect. and they've been criticized for it. where did they come up with the headline? >> resident trump talking a few moments ago about the media and her interview right here. much more and not coming up. the market down 192 points. i keep asking iran to remember were up 500 yesterday. individual stocks. target expanding its toy section for christmas.
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this is the first holiday season without toys "r" us. not helping the stock down 2%. also that, otherwise known as google. youtube unit investigating after it went down. it is now back up at the stock down a fraction. $8.1100 a share. amazon pushing the company to stop selling facial recognition technology to law enforcement. why? what problem? >> this is back of a letter in june sent by 400 employees. use of this technology when provided to law enforcement they believe disproportionally hurt those they say communities of color, immigrants and people exercising their first amendment rights. they say amazon should not be selling facial recognition technology to law enforcement. if that's ignored they say it's dangerous and irresponsible. but this is on the back of just
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a ghost just on monday saying the big tech companies have basically a responsibility to help the defense department and authorities with the latest technology. turning your back on the u.s. department of defense, the country will be in trouble. it's kind of interesting. google has twice actually ceded to its employees and has pulled out the contracts with law enforcement because employees are upset about it here stuart: got it. let's go to facebook facing a lawsuit from advertisers. lives, come back in. a lawsuit from advertisers? >> this problem of facebook inflating the average amount of time facebook users spend watching videos that it started much earlier and was way worse in september 2016. the advertisers in a new lawsuit
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brought in california are saying this problem of facebook misleading about video watching time started in 2015 and it was not by a factor of nearly doubled the facebook inflated the average time period by a factor of 10 times they inflated it. this lawsuit is without merit. we are going to fight it. this raises all sorts of question about how media outlets responded to this fake metric allegedly that they put out. if the media was to say look at the amount of time people are watching video in facebook cause them to get more media on facebook. this is that the heart of facebook's advertising model, stuart. stuart: it certainly does. another dark headline. thank you you need. the big cabinet meeting gets underway in a few minutes. it's all about deregulation. fox news star brad baier coming up on outline. we've got a check to markets. we are not care as much as we
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>> we want to get them elected. we need republicans. we have a majority with this much. if somebody has a cold, just a minor cold we no longer have a majority. we need republicans and will have tremendous border security. we will continue with tax cuts because we have other tax cuts planned. we will do cutting of the budget which i know is going to make you happy. >> yes indeed, mr. president. mr. trump talking about the mid-terms. we are now following two big stories. number one, the president getting ready told the cabinet meeting. if we get any headlines or video we will bring it to your real fast. of course we are watching your money, which is coming back a little. down over 250-point here now it is 145. we are off the lows of the day. let's get to trade. blasted music right there.
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last hour joined by president trump and we talked trade in china. here's what he had to say. roll tape. >> they are paying 25% tariff spirit $250 billion. hasn't affected our economy. inflation still low. very low. hasn't had any impact we see except for one. billions of dollars pouring into the treasury. >> brenda major vic is with us. supply-side guy. you just heard what the president had to say. it seems like it's very, very hard blind tom and hard-line china as well. at the moment, the president saying they are hurting far more than us. would you make of it? >> how about mutual prosperity? if it is true billions are coming into the u.s. treasury because a terrorist government than we really need a second round of income tax cuts and corporate rate cut spirit if we impose tariffs on goods coming into this country, damaging our
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supply train and causing paychecks to go less common than we have further tax rate cut. otherwise we are not zero since last december. in income takes credit. to keep the economy going made another rate cut of some sort. stuart: but the president makes the point and so does larry kudlow. you've got to have tariffs because that gives you leverage. you have no other form of leverage if you want to improve on them not stealing our technology and not stealing our intellectual property. without tariffs you got the leverage. >> stuart come i partially concede the point especially with major co-author, larry kudlow. we have to release the burdens on the domestic economy. we don't want is leverage on their own economy. not only do we need deregulation right now, we also need further rounds of tax rate cuts. you can't impose tariffs and not have tax rate cuts.
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that means burdens all around foreign and domestic. stuart: what's your economic outlook for growth? it might be 37, 3.8, 3.9. nobody nine. nobody is saying look, we will get 4% next year. what is your forecast? >> isn't it interesting that the benefit gdp now is starting to say it will go below 4%. we had the great 4% quarter in the 4% average. if these tariffs are not going to have their intended stipulated effect of lowering global tariffs, of course it will be a dead weight loss on the economy. the only way out of the conundrum is either to go back to free trade or to seriously reduce the burdens on the domestic economy to a big next round of tax rate cuts, spending cuts and deregulation. stuart: that's not going to happen, is it. the fight with china really hurts america going into next year. that's where you're coming from.
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>> well, i think the electorate is very jealous of its prosperity and as the president that if you have a good free-market congress coming in november, who is to say we won't have a good round of lowering domestic burdens on the economy. i think americans are sick of the great recession. i think the whole congress' feet to the fire. stuart: let's see what happens. i'm going to move on to the migrant caravan. very much in the news and on the move. either way, honduras and guatemala might try to stop them because president trump has threatened them with the loss of aid, lots of money. judge napolitano is here. let's suppose that guatemala does not stop them, that they come through mexico and arrive at the border. what happens? the president's complaints are perfectly legitimate because he knows that once they approached the border, once they are in that zone at the border controlled by american
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personnel, and once they claim asylum, they're entitled to hearings. the government can confine them but it's got to give them food, shelter and clothing and hold a hearing for them. if they are stopped before they get to the border while there's ellen mexico, the government can use force to turn turn them around and repel them. it almost sounds as if the president threat to restrain foreign aid to honduras, guatemala and mexico if they come through are working. this is an area of spending federal dollars for the president has the discretion to open or close the spigot because it affects foreign policy which is exclusively his. stuart: what you make of this, judge? if and when they get to the border, america will be accused of being inhumane if we don't let them in. what you make of it? >> the last time this happened, the president withstood those charges. this is when children were
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separated from their parents. that's where the charges went. the federal judge has said he can't do this. if they keep the children and parents together and say look, it's going to take six months before you get your hearing from you can say in this detention center or will help you go back home. the only option available to him. the other option is to change the law. he spoke to you earlier if we have somebody getting a cold majority he was referring to the senate. he will need significant it or is this november themselves the numbers and the republicans would need to keep the house break now to change the statutes, which would allow them just to turn people around. right now the touch you mandates hearings. stuart: politically i don't think it would be popular if we america are swamped by an avalanche of people putting one foot on american territory and therefore staying. i would not work for the
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democrats. but again, there's nothing we can do about being swamped by these caravans. and met the presidents have to uphold the law. he hates the law. he's explained his hatred of the law in my view quite correctly and compellingly. until the lot has changed, if they put a big toe on american soil, they are entitled to make the claim for asylum and that claim could take six to eight months to perfect. stuart: judge, would you think about this? we are here at the white house. wish you were here with us. kind of good, isn't it? >> i am envious. you look pretty darn good they are interrogating the president back the president back-and-forth, back-and-forth. it was compelling. everybody in the building was watching it, stuart. stuart: that is very good news. very glad to hear it. thanks for being with us this morning.
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at this time we always took a couple different markets. first of all gold. where is gold this morning? just about $1200 an ounce. right now at 1230. despite all the turmoil in stocks, we haven't seen that much of the gain for the price of gold. bitcoin, i was going to guess it was around $6400 a coin and it is. price of oil. i am wrong. very wrong. i don't know what happened, but that thinking down $2 a barrel. now we are at $69 a barrel. therefore, i would expect gas prices to continue to come down. right now the national averages 287. that is down a little from yesterday. if we keep up with $69 a barrel oil coming to see the gas price come down significantly and quickly i do believe. much more from the white house. this is where we are. kellyanne conway coming up with
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me shortly. president trump has been everywhere including this program. he's on a media blitz. what does bret baier think about a media blitz? check the big board. we are coming back. down 170 points. 25,600. back in a moment. ♪
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stuart: in case you missed it, president trump joins us in the last hour and the president talks about nearly everything here this is when he had to say about the iran nuclear deal. >> iran has been said very that -- that very day. when i first came in, and if you take a look, day before i came in from iran was over the middle east. could see her yet again then. now they are pulling back, having rights industry. they. they are a mess of a country. that had to do for the day i called the horrible 150 billion-dollar deal that gave them, the iran nuclear deal. they'll come back and negotiate. i'm not going to say they have no choice, but they'll come back and negotiate. and if they don't, that is fine, too.
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stuart: i do hope you're watching the show today. special guests join me in the last hour. we talk about the media. president trump you're no surprise here when you talk about the media. mr. trump did not hold back. roll tape. >> i've heard you say many times the economy isn't covered properly and it not, that the economy is not covered properly by the so-called mainstream
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media and it isn't. we went up almost six in the points yesterday. you couldn't find it anywhere. the economy is doing probably better than it's ever done in history and they don't even talk about it. that's because they had their opinion and they like to keep their opinion going the way they have it. they do not treat us fairly and they do the news, so i can talk about it myself. stuart: look who's here now. special report post bret baier. the president is on a media blitz. he seems to be enjoying himself in the media, but do you think it's effect is communication? >> stuart, good morning. i think he is trying to control the narrative as he always does. sometimes he chooses twitter. other times he chooses interviews. lately it's been the latter. also answering every question heading to the helicopter on the south lawn or on the way to air force one arrived on the event. you know, he does control the
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media narrative through a day. every story really starts with donald trump. you know, sometimes that's good and sometimes you've got the wind at his back and he feels emboldened. other times he says is that obviously take it in a different direction that others in the administration up on capitol hill and his party would prefer he didn't do. >> i did ask him if anyone ever tries to take away his phone. that would be his twitter account. i'm going to put up on the screen one of the latest tweet about stormy daniels. i'm sorry, we don't have that. but i did ask him, does anybody say, hey, take that away. take the phone away from the man. and he said no. it's my effect is a means of communication. you see this many times. >> and it just caused a lot of heartburn on capitol hill
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sometimes. not the best tweet from the view of some republicans running in suburban districts for the house i think. you're right. this is how donald trump operates. it's how we operated before becoming president. it is how he operates as president of the united date. it's very different and it causes a lot of stir in a lot of corners, but also up a lot of oxygen and a lot of talking about donald trump. >> he suggested these on a media blitz and he would continue up to the midterms. but then he suggested he might not be so aggressive in the media. not appear so often after the mid-terms. can you see him turning it down at all? >> clearly he's made the calculation this is about him. he's not on the ballot but he is on the ballot. every time you set a campaign event. now he's saying it every time he
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talks to media organizations. these talk to fox and fox business that time, that he was doing 60 minute in pbs and other outlets. i think you'll see that up until election day because he believes he has the story to tell for his presidency. whether the president believes that in the swing states will be the determining factor. >> am i right in saying the polls are swinging a little bit towards the republicans for the midterm elections. >> the kavanaugh effect is real. it's not a made-up thing. after the brett kavanaugh process and how democrats handled it, the reaction to it, now that justice kavanagh is on the supreme court. that's a fact that a number of races come a specifically democrats up for reelection in red state. that is definitely moved things a few points. the economy as you know was stronger that affects races as well. how people feel about their situation at the kitchen table.
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stuart: he feels very strongly the message on the economy just is not getting out. yesterday we had them in .1 million job openings. that's a record high. they received absolutely no publicity whatsoever on the network news last night. i think the president has got a point. covering up the real positives of the economy and stressing constantly for the negatives geared where am i going wrong with that? i think the man's right. >> well, that's true. it's always the case that sometimes it is in the administration or situation doesn't get out because they feel like the media is not covering it. he does have a case to make when it comes to the u.s. economy. the factors or you could lay them out consumer confidence, and the gdp growth, although we've seen since the election. if you look at the market and the up-and-down ride over the past week, since the election has been quite something to see. i agree with that aspect of it,
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but prior to that she's been talking a ton about specifics in the economy, that he started in earnest in all these interviews. stuart: i'm on your turf here in d.c. i want to thank you and your colleagues for putting this on the air. step three, you're all right. thanks very much, sir. >> great job, too. stuart: i've got to show you the doubt because we've come back. we are down 80 points. an hour ago down 250. coming back a little down 80 points as we speak. individual stocks that are actually affecting the dow. look at ibm. ibm is a dow stock in that stock is way down in that takes points off the dow. ibm down 6%. nine dollars a share. that has a big impact all over. look at tesla. elon musk will buy $20 million worth of tesla's stock. first of all, that did help the stock. now it's down.
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that is your money. more "varney" after this.
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stuart: another special guest. a very special guest, kellyanne conway, counsel to the president with us on our program today. thank you for being here. >> wonderful to be here. what an incredible interview with the president. stuart: in just a poor immigrant fresh off the boat. the next anti-saudi interview he hosted in the oval office and said cabinet secretaries to really highlight the personal impact of his deregulatory breakthroughs. he sees $23 billion to employers and employees small businesses just this year. they have literally benefited. the facts and the figures and as you so correctly point out and he said several minutes ago, many media want to ignore the economic miracle that is a donald trump residency come of it they can't ignore people who come here to say this is how i can positively impact in my life. stuart: mr. benson joins us now from his sitting next to you, kellyanne.
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you're in the coal industry. tell me a rule change made by this administration, which has helped you in your industry. >> the biggest one with either stream protection rule. stuart: stream protection? go ahead and explain. >> it's been devastating for industry and make a really tough recipe on the market. stuart: let me get this right because i'm familiar with this rule. i'm a tree farmer in upstate new york or doctoral suggested if you've got a rock within 20 feet for 20 yards of a stream, you've got to get a permit to move the rock and you've got to put in a plan as to how you're going to move the rock. that's what you're talking about. that was a huge plus the number was got rid of. >> yes, sir. >> i would say definitely, yes, sir. >> out like to interject. many coal miners of their job to die.
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the coal industry is. the woman who lost the election in 2016, whose name i never mention anymore, she promised her that the coal mining industry out of business. this president has helped them to grow jobs. so you safeguarded jobs. i also want to point out the protection world of benson referred to. in february of 2017, less than one month on the job. that's what the priority it is to act swiftly and decisively for the coal miners. the compliance job would've cost inordinate amounts of money in the coal mining industry not only construction manufacturing, all the industries that the president committed to and has delivered on bringing back. stuart: one of the themes i've been pressing this morning with all of our guests is the need to cut spending. as i understand it, the president wants every cabinet secretary to cut 5% from their budget. that's a tall order. >> e. may be demanding that
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momentarily. stuart: that is huge. >> he's asking them to cut the fraud, waste and abuse, not cut the essentials or this is a president when he signed the less ominous so don't send me something like this again. i won't sign it because it has a lot of weight to it. he also saw the first pay raise for our brave men and women in the military for many years. he also saw an equipment enhancer for them and the beginnings of the border while perhaps. but he also saw a new money for school safety for opioid and things are important to domestic agenda. the president knows that part of why and how he got it as he made a legitimate credible promise to come to washington, do things differently. he came you're only nobody anything and allows him to have a wanted voice to say listen, get rid of the waves. >> saudi arabia if it showed something dreadful happened and the saudis are responsible and
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they want to punish saudi arabia, we must not punish so severely that we break up the containment of iran, a balancing act. >> the president made it clear it's a balancing act as has the vice president. they haven't used those words necessarily. they have set severe consequences could flow depending on the fact they are revealed. secretary pompeo is coming back this evening from his trip to saudi arabia. he will brief the at the same time, he also knows as you point out, how vital our relationship is on many different fronts, including if not mostly because of iran. stuart: can we talk to but the migrant caravan heading towards the u.s.-mexico border. >> maybe he should take this one. go ahead. stuart: you know something about the migrant caravan that i don't know. >> knows he wants border security. stuart: the president says we'll take money away from honduras and other countries which allow
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this fly. maybe that is having some impact, we hear they will try to stop them. what happens if they do arrive at the border what is america going to do? >> if they arrive at border, mexico is in charge of that. when they come through our border illegally we have jurisdiction. back up, many people are coming here claiming asylum but they also say i want economic opportunity or looking for food. those claims could be assessed differently depending on the claim. i think the caravan is a microcosm of the number of individuals who are pouring across the border, even though this president has asked congress to act, this is congressional, and it is judicial. we have a couple of immigration judges making the immigration law for entire country. that is not right. congress fails to act. heading up to the midterms, people will watch to see which party is serious about open borders, versus border security. we have a sovereign nation, we
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have to have physical borders. stuart: thank you, appreciate it. it has been quite a show and my time is up. all three hours of it. what a great pleasure to be with you all from the white house. again, my time is up and, neil cavuto, sir, it is yours. neil: outstanding job, my friend. i thought it looked like that. the president wants to address spending and try to cut the deficit down to size, good luck on that front. the president is speaking now addressing questions concerning saudi arabia. he will be laying out for his cabinet secretaries to the point he raised with stuart, he does want to move on this very quickly by having each cabinet secretary find 5% to trim in their respective budgets. let's go to the president. >> so i'm for all industries. there is nothing i don't like. i want it all working. that is why we're doing so well. reporter: g


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