tv Varney Company FOX Business March 27, 2017 9:00am-12:01pm EDT
we'll watch the markets, down 150 point on the uncertainty of all of the above. great to see you all. >> great to be here. maria: stuart varney kicks it off right now with the latest on fox business. stuart, over to you. stuart: thank you very much. friday, a debacle on obamacare. monday, a selloff on wall street. and the future? maybe tax cut delayed or watered down. oh, boy. good morning, everyone. as of now, obamacare still in place, taxes deductibles, rules and all. it's not going away anytime soon. that will be a drag on future economic growth. the president has moved on to tax cuts. that means, that is the mainstay of his growth agenda. now with a divided republican party, he's reaching out to democrats for help and what kind of tax cuts would democrats agree to? will there be any tax cuts at all? if the party is so split they can't replace obamacare?
no wonder the trump rally in reverse because they may not legislate what is needed for growth. later, the president meets women who runs small businesses. let's see if they have anything to say about lifting the tax burden on them. and this man, texas republican ted poe has left the freedom caucus which led the opposition to the obamacare replacement. >> and politics in turmoil, your money sinking, "varney & company" is about to begin. ♪ i think we can safely say that the markets will open lower in about 28 and a half minutes' time. we'll be well into the triple digits, maybe 150 on the down side. and that's the debacle of friday and the future of tax cuts going forward of the look
at goldman and jp morning, both dow stocks, they are going to be a significant drag on the dow industrials, both of them down very sharply at this point, that's premarket. how about the health insurance? well, the insurance companies are not way down, but they're all coming down this morning, again, not a lot, but they're down. how about the hospital stocks? where are they this morning after the friday debacle? well, the hospital stocks are up. it takes some explaining, but health insurers down, hospital up, how about the drug makers? this is premarket, the big guys down quite a loit, actually, running up to about a 1% drop for the two big kms. financials down across the board and we see significant droms. joining us right now, james freeman with the wall street journal editorial page, james, look, i say flat out the debacle on friday jeopardizes
the tax cuts we're hoping for in the immediate future. i say it jeopardizes them and you say? >> you're correct, stuart. you look at the market and look at the down arrows this morning, s&p has been trading over 20 times trailing earnings, that's not cheap. as you said, a lot of this has been the expectation the trump rally, obama rally that we are moving to new policy. an of friday, you really have to wonder about that. stuart: it's in jeopardy. if the president is reaching out to democrats, what kind of tax cuts would a democrat agree to sf it's going to be watered down at this point. it looks like it at least. >> right, and i think republicans have to think now some of the lessons learned from the friday debacle as we go towards tax cuts. i agree freedom caucus took the best deal they're going to get, but the president and mr. ryan have something to learn here as well and i think it goes to maybe the border adjustment thing, i think it would be good
and pro growth, but it's clear they have not sold it and educated members on it. even senators like lindsay graham, and ben calling it a tariff. and what they didn't do is explain how the obamacare fix was going to bring premiums down. stuart: at this point the border adjustment tax is the divide within the republican party which is putting the whole tax reform effort in jeopardy. liz: the coch brothers don't like it. stuart: so they'll put their money there. liz: and the freedom caucus guys are in safe seats not the seats that hillary wants. stuart: and that's a loss of maybe-- close to 600, 700 points below the high that we reached right after the election. okay, more in a moment. listen to this one, ted poe, a republican, he's left the freedom caucus because of the
failure of the health care bill on friday. here is what he said on fox and friend earlier this morning. >> we spent an hour and a half with the president of the united states, with the vice-president, members of the cabinet, and talking about trying to make this bill better. changes were made and at the end of the day, it still was a no. and i think that was improper to continue to vote no. sometime you've got to say yes and this was the time to repeal obamacare. stuart: sometimes you've got to say yes. joining us now, david webb. i hope that ted poe and what he did was a sign of things to come. what do you say? >> i think with the arm twisting in d.c., it possibly is for some of the caucus member. foresight is the wisdom to learn from hindsight. if you don't care about who gets the credit you can move the ball on moderates and conservatives, in d.c. have failed to move the ball on obamacare repeal, replace,
whatever form. so the american people are still losing and this close to bringing down-- the democrats are obstructing. and now the republicans are propped up. i'm sick of who is getting blame or credit, what they've been doing. the american people are paying the price for their failure and obamacare is still in play. stuart: you've got to hope that they learn from the failure. regardless who is blamed, who gets the blame for friday's failure, they've got to learn from it, they've got to be the party that governs. >> extremes don't work in washington. you're not going to get your 100%, or your 100% on any side of it. find the way to move it forward, and then fixes. don't be like the democrats, we say combine it with tax reform. by the way, president trump, go
hard on tax reform, go hard put your foot on the gas and go through the wall. stuart: strong words on president trump on the failure of the health care bill. roll tape. >> i've been saying for the last year and a half the best thing we can do politically speaking is let obamacare explode. it is exploding right now. stuart: let it explode. it is exploding right now. okay, i understand that. who gets the blame when it does explode? i suggest it's going to be the republicans 'cause they failed to reform it. >> look, the democrats will rewrite to the history of now, which is this is your fault 'cause you're in power. it's wrong, but that's how they'll write it to the public. for the republicans in not safe districts, you will get the blame because they will be effective turning against you. a little advice to the moderates, and the conservatives. >> conservatives go to work with the moderate when you get repeal through on tax policy and help them.
to the conservatives, you know, flip it around. if you don't work together and support each other, you will end up losing a lot of seats in the house, and that balance can become very close. and if you lose, if you don't win, you don't make policy. stuart: okay, well, hold on a second shall back off or one second. what does our health care system look like later this year, when if the president is right, obamacare implodes, explodes, whatever it is. >> millions of americans will pay the price or actually be unable to pay the price and the subsidized costs and that will hurt our economy and that's exactly where it's going to come down to business hiring, jobs, and the economy. stuart: will it be so bad that the republicans go back to the drawing board and say, we've got to do something and we will do something? >> i think they will if it ever got that bad out of desperation because at that point they have less to lose and more to gain. politicians are risk averse. they get in front of the
cameras and say whatever to the base, but they're afraid to go back to the constituents and say this is the best we can do and go forward. the litmus test on both sides is not going to work. what do we have today? we've got obamacare on monday. exactly, we've got obamacare and all of the faults with it as far as the eye can see. i'm going to try to calm down and i think you should, too. i'm down to 160/110, it's manageable? >> really? >> listen to this one. united airlines refused to let two pre-teen girls on a flight because they were wearing leggings. well, outrage on social media over this one. united, however, the airline says there's very good reason they weren't allowed on. we're going to bring you the full story, that's a promise. one of uber's self-driving cars in an accident in arizona, the uber car was hit by a car with
a human driver, ended up on its side. nobody seriously hurt, but uber is now suspending its self-driving tests while they investigate. defense officials tell fox news, 200 additional troops are being deployed to iraq and syria. they're going to fight isis. here is my question. how donning do they stay? more varney in a moment. kevin, meet your father. kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you.
>> price of gold at the best level in a month, why? because the dollar is way, way down. that helps the price of gold go up in these times of political turmoil. 1262 per ounce right now. how about this? snap, a winner at the opening bell. many investment firms say buy it, it's premarket trading 23 on snap. the pentagon is sending 200 more troops to fight isis in iraq and syria. ashley: where they're going we
don't know. there were rumors floated around 2000 troops were going. the pentagon says no, way, 200 from the 82nd airborne. we know the battle from mosul has been going on for five months and they're turning their eyes to raqqa, the self-proclaimed capital of isis. so, i would say militarily, isis is definitely on the run, but it's hard to get the job done. 200 troops, is that going to make the difference? we'll see. stuart: there's a lot or there. ashley: there are. stuart: we're on the ground and firing, we are. stuart: fighting in the middle east. ashley: leading the coalition. >> there you go, more in a moment. let' get back to the republican party's failure to replace obamacare. our next guest says this debacle will not hurt president trump with his base. pastor robert jeffries now. let me bring this to your attention, i'm sure people said this to you.
the failure on friday means we're still funding planned parenthood. i don't think is base wants that. the failure on friday, we're paying high taxes, high deductibles, high premiums, i don't think the base would like that. how do you think that one way or another the base is happy about what happened on friday? >> listen the reason, stuarting that evangelicals turned out to support president trump is because of his commitment to select conservative supreme court justices, defund planned parenthood and protect religious liberty. as long as he delivers on those issues eventually, i think all of this disappointment over the failure to repeal obamacare will dissipate very quickly. it's amazing, stuart, how one or two conservative supreme court picks will cover a multitude of sins with evangelicals. by the way, around planned parenthood, there's more than one way to defund planned parenthood. stuart: where i differ with
you, i don't think that evangelicals are so narrow in their voting. it wasn't just planned parenthood and supreme court justices, it was jobs, growth, prosperity, lower taxes and less government. on those issues, the president at this point has not delivered. >> being lialiao-- look, i was in a number of meetings the last 18 months between evangelical leaders and president trump, never once was the repeal of obamacare of concern. i think that it's good that president trump stood up to the freedom caucus. they were about to go against preexisting conditions and keeping kids on policy until age 26. had he had been held hostage i
think it would have been devastating. i'm glad the president stood up for this group. and portended for other deals. stuart: the freedom caucus turned down a partial fix of obamacare and what we've got instead is full on obamacare, taxes, deductibles, premiums, woo of' got it as far as the high can see. i simply cannot see how that's a success. >> well, i don't think it's over. i think he eventually will get this done, but i think he's wise to cut his losses with the losing hand he was dealt and move on to issues like tax reform. don't get discouraged, stuart, it's not over yet. >> i'm not discouraged and it's not over yet. i at meyer your attempts to cheer me up and get my blood pressure down. i know you're praying for me, but, tax cuts could be delayed because of this debacle on
friday. >> look, i'm very conservative, but i realize this country is not far right, it's center to center right. and i think the president has an about thor chance of cobbling together without the freedom caucus than held hostage by it. and i think it shows that president trump is a strong leader and knows when he has a losing hand dealt to him and live to fight another day on this issue. stuart: he's reached out to support from the democrats. which taxes do you think a democrat would cut? >> well, stuart, you're the economist on this, so i'm not going to pretend to play one on tv, but i'm not giving up hope at all. this is just the first 60 or 70 days, there's much more time to go. stuart: and if the democrats come into the coalition, do you think they will defund planned parenthood? >> well, i think that president trump is going to have to carry through on this provision to maintain his evangelical support and i think he will do it eventually. stuart: okay. you see things sunnyside up this morning.
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>> the dollar is at its lowest level since november. that's why oil is back to $47 per barrel on oil. president trump has selected his son-in-law and advisor jared kushner to fix bureaucracy. james freeman still with us, glutton for punishment. american innovation, is that an uphill struggle? >> let's hope it's something like the grace commission from the 1980 a he is when ronald reagan wanted to take an ax to bureaucracy. but reasons to be optimistic, we talked about how the effort is going to be a heavy lift now
after friday, but i think you have noticed maybe a little more quietly, that the congress has passed a number of these repeals of obama regulations and sent them to the president, so, these are not huge changes, it's not like the obamacare fix that we hope will come eventually, but this is an area where the president can make some progress, just not harassing business, is step one and peeling back some of the regulations would be helpful. stuart: it would have to be regulatory change to do at the executive level. if you go to congress for the changes, it's probably not going to happen so he's got to thrust from within from the executive branch. >> the good news if you go to congress on some of these things, you don't have the budget rules to prevent you from cutting taxes that liberals created years ago. you have a little more freedom when you're cutting regulation, assuming you can kind of the political concensus and that's
what the president needs to work on. stuart: i believe there's a huge change from tomorrow from the epa rolling back climate rules without the benefit of congressional interference. i've got to run, but we're going to open up down sharply. 160, 171 points, this is about the debacle of friday and doubts about tax reform going forward. back in a moment. yes? please repeat the objective. ♪ thrivent mutual funds. managed by humans, not robots. before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds.com.
>> i'm sure that there are an awful lot of people tuning in right now to see how the stock market fairs on this early monday morning after that debacle about the reform of obamacare last friday, and a debacle it was. the bill was pulled. republicans went to a defeat. that means maybe a slowdown in the entire legislative agenda, the slowdown in the growth ga agenda and the market does not like that. we'll open up, and you'll see at least 100 point decline for the dow industrials, probably more than 150, on the down side. we'll be approximately 600 points away from the high that we reached right after the election.
we are going to see this trump rally at least pause and maybe going into reverse, that's at least in the early going this morning. 10 seconds to go, i'm predicting 150 down for the dow industrials in the very, very early going. almost there. bang! 9:30 on a monday morning, we're running down. the first quote down 130, down 140. liz: there you go. stuart: down 149. we're at 20,400. left-hand side of your screen, those are the dow 30 stocks, 28 of them are down, two of them are now unchanged. now we're down 173 points. that's-- down 169. okay. first half minute's worth of business on the monday morning after the debacle on friday, we're down 100-- almost, we're close to 1% down. that's not a gigantic selloff, frankly, i'm a little surprised, i thought it might
be more than that, given what happened on friday and the political outlook, there you are, we're down 1%. let's check out some of the big name stocks related to health care because that's the issue of the day. i'll tell you that the price of gold is at a one-month high and now let's move to those health care stocks and see how they are moving this morning. the first of all, the insurers, remember, please, we're saddled with obamacare as far as the eye can see, the insurers down. how about the hospital stocks? well, they rallied after the health care bill was pulled on friday. remember, these stocks benefitted significantly under obamacare. obamacare stays. and look at those hospital stocks go. i've got hca up. universal up. solid gains for the hospital stocks as we speak. next group of stocks, drug makers, mixed bag there, no significant moves up or down. i'm going to call the drug
makers at this point mixed. okay, that's health related stocks in the very early going. financials, now, if we slow down the legislative timetable for a growth economy, then we're slowing down financial reform, reform of reform, essentially. not good news for the market. financial stocks at this point are down. the big banks, morgan stanley, goldman, j.p. morgan, way down. morgan stanley and goldman taken together, they're both dow stocks, taken together, they're about a third of the dow's drop about 50 points, they account for that. the now, the regional banks, the worst hit by dodd-frank and they are worse now because if dodd-frank continues, they'll continue to take a hit. so, they're down 3, 2, 3% this morning. how about infrastructure stocks? is the debacle on friday going to hold up infrastructure spending? the answer to and from investors, yes, they are. caterpillar and other
infrastructure stocks are down, along with vulcan materials, martin marietta, across the board they are down. there you have it, first two and a half minutes' worth of business, down, all of them down and the dow is off 140 points. we want analysis of this, ashley webster, liz mcdonald, scott shellady and james freeman. what happened on friday in my opinion derails and slows down the president's growth agenda. that's why we're down. do you agree with that, scott shellady? >> 100%, i never thought i could feel sorry for john boehner, but the last three days made me realized why he would drink and smoke so much. and trying to get reelected in washington, turns out to be a pre-existing condition to use the health care term. i'm frustrated, the market is
frustrated and it's absolutely going to slow things down. why is it always person over party? i don't get it. the democrats are good at it, the republicans should take a page from their play book. stuart: james freeman, the position is that the market is down because of the slowdown in the growth agenda? >> i don't know how you look at it any other way. it's not just concerns about regulations coming down and these are essentially proxies for the economy. they boom when the economy booms, so, i think generally less optimistic projections of economic growth are going to weigh on the stocks. >> yeah, this is-- and a look at the growth agenda and there's some disappointment. liz: it hurt the president and the republican strategy to get tax cut through, budget reconciliation, that low threshold of 51 votes. if obamacare reform passed you can use the deficit cuts there to solidify the tax reform.
they are both intrinsically linked. now that you don't have that, it makes it a tougher go of it to do tax reform. stuart: the taxes that would have come to us had we repealed obamacare are not coming to us, that complicates it down the road. liz: and the deficit cuts as well. stuart: all true. i can hear scott over there. chatting away in the background. you want to add to this, ashley. ashley: the selloff 150 points. it's still not down 1%. yes, it's a setback, but we shouldn't blow it up and take the opposite view, things could turn around. liz: you make a good point, b but-- >> look, i am surprised it's not a bigger selloff frankly. scott to you, please. >> yeah, there's more things that are happening around us, they're telling us that things are nervy out there. take a look at 10-year, 2.35% that's a bigger than the equity market and telling us we've got
things to worry about. we've got commodities going lower and the dollar off the lowest low november last year and it should be boosting commodities. commodities can't get wind underneath their wings from a cheaper dollar and the biggest market in the world says we have things to worry about. stuart: it's the debacle on friday, and i blame it all on that. we have your amazon story of the day, it's looking into building more brooks a-- bricks and mortar stores. these will be automated, scan your phone. ashley: these don't sell well on-line. they're difficult to sell on-line. groceries, and looking at something, how often do we order something on-line and we get it, oh, this wasn't what i expected. and i think that amazon is identifying the products that we could have a look at them. stuart: it's a different bricks
and mortar store. liz: they're going to do home furnishing as well and a way for amazon to showcase their devices and get more prime members hooked. stuart: any comment, james freeman? >> i'm sort of perpetually skeptical about amazon. this is another plunge into what looks like another low margin business, and all of this time, obviously, they've been prioritizing growth over profits and investors have cheered them along, but you know, thinking of retail generally, more business-- another big player seeking more growth over profits doesn't make you feel great about retail. stuart: james freeman is skeptical of amazon. those close to blasphemy, you know that. [laughter] >> not quite. look at sears, took a huge beating last week and dropped to about $7 a share if not slightly lower. rebound a little today. it's at $8 a share and it's
down what, about 40% since march of last year. how about macy's. they are trying to lure shoppers back in with a coupon blitz. they're pulling the stocks. the bigger rival, hudson's bay, they're not buying macy's, more interested in neiman marcus. we've still got the retail ice age, that's our expression. >> as we've been saying, i'm not sure that discounting is the big new bold strategy maybe some investors would have wanted. we'll see if it works. it's going to be a tough, tough environment as long as you have amazon growing, taking share, and investors not demanding more profits there. stuart: if we've still got obamacare round down next, with the high deductibles and premiums and taxes. >> that's consumer spending uncertainty. you've got money left to go to the mall? i'm not sure. tom, we wrapped everything up with where are we now, state of play.
we're down about 160 points on the dow industrials. not quite 1%, but we're back at $20,432. the price of gold is moving up again. now, we're the $11 an ounce higher at 1263. how about the big tech names? we check them all the time, that's where the money is going. all of them are down, they are a he well below-- not well below, all time highs, that's true of facebook and amazon. microsoft back to 64. look at this, that's snap, took a beating last week, but several companies are now recommending this as a buy. and now it's at $22 per share. it's more than that. holding 22 right now. disney's "beauty and the beast", number within at the box office. holding at $111 a share, not much of a selloff there despite the market.
barron's likes viacom sharesment they could pop to the tune of 40%. barron's has implements, but not that much. it's down 27 cents, .6%. 42 on viacom. netflix spending $6 billion on original content, all in one year, up from their $5 billion that they spent last year, it doubles h.b.o.'s budget on original programming. will you ever buy netflix stock, scott shellady? >> you know what? i like it. i wouldn't buy it quite yet though. i think it's a disrupter like, uber and the like. however, we could see with what's happening now with the republicans in congress, i'm still leery of getting in too soon here. so i'm going to hang back. i like netflix, how they've disrupted i think you'll get a better chance to buy it here. stuart: while i've got you, scott, you wouldn't buy any stock because you're worried about the agenda? >> why not?
we need to see a clear objective. with what they're doing now, we traders down here talk about the end of the world and put on positions for the end of the world and we want to ask them, hey, if you're right and you win and the sun does explode, what do you win? that's what i want to ask the republicans in congress. stuart: okay. why shouldn't-- again, to you, scott. why shouldn't i sell? if i make nice gains since the election and see them start to pause the rally, why not sell? what's wrong with that? >> bah because then you're going to talk about wh you want to be a trader or market timer or an investor. if you're an investor you put money in in the same increment throughout the investigating. if you want to time the market, which has been proven difficult. a lot of guys here fail at it. it's a different story and much more dangerous. stuart: you guys tend to say, why not sell. liz: profit taking? >> as opposed to loss giving.
if you pay at a profit you don't have to pay the capital gains tax until april of next year. liz: always on your mind. stuart: you want to chime in there, freeman? >> i think that markets are reminding us, friday was a setback, no question. this is not the end of the world, not the end of the trump presidency or republican control of washington. no matter what they do, get out of the way and stop creating new regulations. stuart: my blood pressure is down a fraction, only a fraction. hollywood is about to release movies into your home 45 days after they're seen on the big screen. anybody go to the movie theater any longer. liz: i do. ashley: no. stuart: you do, you don't. >> when you have kids you catch up on them seven years after they come out. stuart: i thought your kids were full grown. >> they're getting there. [laughter] >> i'm glad to hear that. shellady, do you ever go to a movie?
>> no, 'cause i stopped wanting to pay $20 for a nap. i can do that at home. stuart:. [laughter] >> where it netflix. down about 1-- 140 on netflix. and uber self-driving program was stopped after a crash in tempe, arizona. i think that's bad news, actually for the self-driving car business, james. >> yeah, i don't-- as far as i know, no one was hurt. stuart: no, nobody-- >> you had to expect that this was going to happen. if it's just a very temporary pause to make sure there wasn't a glitch in the software, okay. but if it's something, a bigger setback, i would be concerned. especially since there's pressure on uber and not good for company. liz: don't they want the robot cars so there isn't the fight with the drivers. ashley: it was the person
driving the car hit the self-driver. you can't stop that. stuart: yes. the human driver hit the robot car. how can you stop that? >> you can't. stuart: should self-driver cars be aware of their environment. ashley: we should be aware, but if we're hit by a car it's unrealistic. stuart: who is liable. liz: product liability. >> if self-driving cars never happen, that will be the reason, it will be law and regulation. stuart: i was thinking in terms of liability, which driver has to cough up. how about a lawsuit against the self-driving technology, that's what you're getting at. liz: that's what i'm getting at. so far it's a field day for them. stuart:. >> there's much more human error. stuart: self-driving car stocks grew, believe it or not, and they're down this morning, i think that's to your point. california will defy president trump on auto emissions and fuel standards, so, that, i
think, scott shellady. doesn't that mean that car companies either to accept the old high gas mileage regulations so it can sell cars in california or build a special set of cars for everybody else? this seems like confusion to me, scott, i'm confused. >> i agree and i don't think either one of those is the right outcome so there will be a little bit of pooh fight here. if you can't make a special set of rules for those-- >> those californian, i tell you. thank you for joining us this morning on a very big day. here is how big it is, the dow industrials are off what, 170 points as we speak, that puts them back to the 20,400 level, 700 points away from where we were last months. and then there's this, united airlines facing something of a backlash after a gate agent barred two young girls from
boarding because they were wearing leggings. liz: yeah, let's hold off, you can wear your yoga pants on united airlines, and these family members appeared to be related to people who work for united airlines and there's a set of rules for what's called united pass flyers. stuart: right. liz: these two girls appeared to be related, possibly to people at work so they have a code of dress they have to wear. stuart: and they uncompanied. liz: with their mother. stuart: they were travelling with their mother. liz: one had a dress in her bag. ashley: they have a dress code for families members to fly. liz: yes. stuart: you can't have ripped jeans or flip-flops. liz: there's a code if you're related to workers and flying on the airline. stuart: i would question that. we're still on money and we're moving away from united airlines and now still talking money. dick bove is with us, bank--
dick, last time on the program you consistently said buy bank stocks, they're going up, you were right. then late on friday, even before this bill was pulled from congress, you said stop buying bank stocks, and start selling a few. am i accurate with that? >> yeah, i actually did about two weeks, i made the decision you're going to lose money in bank stocks if you hold them through the summer. stuart: why? >> three core reasons, number one, i'm having difficulty believing that the tax cut is going to be passed before 2018. two, there's no likely deregulation coming in the banking economy and three, business is lousy. making-- >> oh, gloom. >> and higher interest rates are certainly not helping them at all. stuart: would you suggest to our viewers, many of whom have, i think, followed your advice and bought frank--
bank stocks from brokers, why don't you tell them to sell, is that your point of view? >> if they expect to make money in the next six months in bank stocks, they're not going to do that. >> in 2018, which i expect will be better, things will then get better for bank stocks, but i just don't see how you're going to make money in bank stocks over the next six months. stuart: has this anything to do with the withdrawal of the bill on friday and the debacle, the president and republicans failing to turnover obamacare, anything to do with that? >> not really. the debt of th united states, who is going to buy it, there are four classes, the foreigners, new net sellers. there's americans who own 28% of it and seem to be edging away given what's showing up in
interest rates. there's the social security fund which is funding for the debt and the social security fund, they're looking at the federal reserve, owns 14% of it and they've been borrowing from the treasury and then back. okay, we have a tax cut. we do things that are going to make the system better, but who is going to buy the deficit? i don't get it. that's one problem. the other problem, of course, is everything coming out of washington to this point clearly indicates that there's no desire to deregulate the big banks. what we want to do is help the little banks to get rid of annoyances like the volcker rule. in terms of deregulating the bank to provide more money to the private sector, no one is thinking about doing that. then, of course, you've got to have better business. >> do you extend your sell idea to the rest of the market outside the financial sector?
>> my gut feel would say yes, but i'm not a market timer, so i don't know that i would have any good advice there. stuart: thank you for coming on, and we'll see you again soon, dick. thank you. look at the market scan, that's how we show you all 30 of the dow stocks, gives you a sense of the performance, obviously, it's a down day, i should say, 25 in the red and four or five on the upside. that's about it. that tells the story, but, look. ashley: i don't think it's that bad. stuart: you're right. liz: the green the consumer stock there. stuart: only down 130. it's know the that bad. i agree with you, ash, i do. how about this, treasury secretary steve mnuchin says, don't worry, robots are know the about to take your job. that won't happen for at least 50 or 100 years. we're on it. more varney after this.
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a four alarm fire. if you know the area, this is in san pablo and mead avenues there. that's a three-story residential building clearly a big fire right there in california as we speak. i want to take you back to the world of money for a second. have a look at this. the dow industrials are now down 125 points. we're all over the place today. we were down 170, about two minutes ago we were down 100 and now down 126. a great deal of uncertainty in this market as we speak. morgan stanley is one of the biggest losers on the s&p 500, a tax cut may be delayed, may be watered down, that's hitting all of the banks this morning. look at that, morgan stanley down 4 1/2%. we have this for you, steve mnuchin, treasury secretary says he's not worried about robots taking jobs soon. liz: he says 50 or 100 years
out, you can worry about it down the road and oxford saying what? nearly half the jobs according to oxford, could be automated, in the fast food services. stuart: oh, services. liz: and paralegal, office help, you know, the desk help when you go. stuart: restaurants. ipads, yeah. liz: so, you know. ashley: the robot. stuart: that's pretty good, i've got to say that. ashley: it is pretty good, doesn't need a coffee break. liz: no coffee break. stuart: when there's a power outage and the battery is down, you've got a problem. the next case, the g.o.p.'s failure to replace obamacare, i think it puts the whole growth agenda in some jeopardy. you'll get my take on that at the top of the hour. we'll be back.
( ♪ ) it just feels like anything is possible here in upstate new york. ( ♪ ) at corning, i test smart glass that goes all over the world. but there's no place like home. there's always something different to do like skiing in the winter, jet skiing in the summer. we can do everything. new york state is filled with bright minds like samantha's. to find the companies and talent of tomorrow, search for our page, jobsinnewyorkstate on linkedin. stuart: the republican party's failure to replace obamacare has real consequences for our future prosperity. growing the economy just became
more difficult. point number one. obamacare stays in place for the foreseeable future. so obamacare taxes stay in place. that is a drag on growth. the disincentive to hire people stays in place. the mandate that you must have insurance stays in place. oh, those killer deductibles? still with us. the growth agenda has taken a hit. point two, tax cuts now face an uncertain future. and tax cuts are the real an begin of future growth. a different can vieded republican party failed its very first legislative test. they remain divided on tax reform. are they united on a border tax? probably not. are they united on which deductions to cut? no. which wing of the party will stand on principle and stop any tax reform? third, how much juice has president trump lost? he pushed hard to replace obamacare and the effort failed.
now he is looking for support from democrats. how far will they go to cut taxes? how much growth did the left really want? not much is my answer. for anyone who wants to see america return to prosperity, the outlook just took a turn for the worst. how can anyone be happy with friday's failure? is the freedom caucus really happy they defeated the first item before a republican congress? nobody is happy this monday morning except the left. the second hour of "varney & company" is about to begin. ♪ stuart: now you would be tempted to say this is a whopping great big selloff this monday morning. it is big, but that big. mere half a percent, 2/3 of 1% and the dow is at 20,461.
it ain't that big of a selloff, okay? relax, everybody. bank stocks, however, way down, all the financial stocks are down. because maybe the growth agenda is being delayed, exactly the same story with infrastructure stocks. you delay the growth agenda and infrastructure stocks, look at them, they take a hit. how about health care related stocks this i think we're going to start here with hospital stocks. they did well under obamacare. obamacare stays. so, hospital stocks are going this month morning, some of them very significantly. you have got 3, 4% growth there. how about the insurers? not so good. all of them on the downside. you have a mixed market here. down but not that much. most health related stocks are down. the price of gold though? way up again today. we have the 1261 per ounce. why is that? because the u.s. dollar is at the low point since november. that helps the price of gold.
look at snap, that has a jolt too. several brokerage first are saying buy it. $23 a share, up 2%. snap is up in and other wise big down market. following friday's debacle, president trump says he will reach out to democrat. former clinton pollster, a democrat, doug schoen, is with us this morning. what kind of tax cuts would any democrat agree to now? >> listening to chuck schumer today yesterday. not many. democrats traditionally supported tax cuts that benefited the middle class and poor people, given the environment today, it is a very different era and position when in the mid 1990s is with able with others to fashion bipartisan tax cuts and deficit reduction? stuart: in what areas would democrats move and support and help president trump? in which area? which part of the again today
would they seriously help. >> i don't think they should do what they corporate tax reform. that is the single biggest issue before us because it produces growth and jobs. they will expand the child credit. earned income tax credit. i know trump has spoken about that, but let's be honest that is not at the core what america needs now or what president trump has been talking about. stuart: why won't they agree, or you think they won't agree on corporate tax cuts? >> sure. stuart: because that is low-hanging fruit. you could bring, two, 2 1/2 trillion dollars worth of stimulus back to america if you did that kind of thing. >> i understand that with the repatriation of funds and the growth that will be spurred, absolutely. but here's the thing. that will be perceived by the left that you're referring to as a giveaway to the multimillionaires. since the left is anathema of that, democratic party is in
resistance stage, i might add, they will not go for it. stuart: i think essence of growth agenda is cuts in individual tax rates and cuts in corporate tax rates. you're sitting there, both of those areas the president will not get help from the democrats? >> i'm telling you he is is not going to. he should. there was tax reform as you remember in '86 as well, bipartisan tax reform that lowered rates. it is sitting there now. i think it is the right thing to do. sadly i don't think we'll get bipartisan agreement america needs. stuart: i think that democrat resistance will continue. i mean they say, they see blood on the floor. >> exactly. stuart: they won this one big, huge victory on friday. i think america lost but i think they certainly won. but what's the impetus for them to say, okay, now we'll help president trump? it's not there. >> isn't any impetus. the democrats are divided so long. disorganized. they came together. they had a rare victory.
you know what it is easier to say no than to try to be constructive. stuart: doug, you could have appeared on this program and lapped it up, look, i hope you -- >> like you, i'm an american and a patriot. i see what the calamitous impact could well be if we don't come to our senses and come together. stuart: spell it out. you have 20 seconds. what is this calamitous result we might come to? >> total dysfunction, meltdown in the stock market. a potential recession and the degree of division and anger and bitterness that we've seen in the '60s and sometimes in the '80s and '90s. stuart: my goodness me, that is grim outlook. >> i hope we avoid it. stuart: we all do. but it is a possibility. doug schoen, still a democrat. >> yes. stuart: republicans, i say remain split. a lot of blame being put on the freedom caucus tammy bruce is with us this morning.
ted poe, republican, member of the freedom caucus from texas, today he is coming out and leaving the caucus. he thinks republicans should be a governing party and they're not at this point. >> their experience for the last eight years has been just being, standing for things. standing for principle. govern is different, isn't it. so it is not just about taking positions. it is about finding compromise. we want to bring the compromise to be more center-right but this seems like the freedom caucus did not understand the transition happened. the republicans control the congress and white house. ted poe said you can stand there be part of the heck no, they use a different word, heck no party or caucus, that leads to this kind of debacle. the problem who counseled a president trump to rely on paul ryan? who also has just been one who stands for things. there is a lot of talk, oh, we've been he repealing obamacare for years. there has never been a voice
vote. never been like a polling of each individual member in all the times of house or senate. someone counseled the president to rely on paul ryan which clearly was a mistake. i think that is reince priebus. this is where donald trump has to do. determine who he wan rely on. how to move forward at this point. while yes, going to democrats like the congressional black caucus, who he met with last week. stuart: now, do you think that if paul ryan were forced out, let's bring everybody into this. ashley: yeah. stuart: if paul ryan is forced out as speaker, if reince priebus perhaps has to take a back seat as opposed to being the right-hand man, does that help things going forward? does that make tax reform easier? legislative agenda, does it make it easier, if you get rid of paul ryan, lizzie. reporter: i don't know. it was all about the sell. they didn't have the sell for the plan was good for america.
his strategy is right, need to get it through budget reconciliation of democratic filibuster. he was between a rock and hard place, paul ryan. ashley: you knew he would be a scapegoat. it's a little unfair. you can't deal with conservatives who have their way or no way. very difficult indeed. >> this is the plan they have been working on. they have seven years. he had two years. this wasn't just sprung on them. what was it paul ryan didn't know and already know about the freedom caucus? ashley: that's true. >> that is the failure. no one is new to this. stuart: this is a debacle a lot of people are very angry. the billionaire who benefited the most from the markets, the trump rally, who do you think is the billionaire that benefited most. the gentleman on the left-hand side of the screen, that would be warren buffett, emac. liz: the guy who campaigned for hillary clinton toned and against donald trump. he started plowing stocks into the trump's growth agenda.
barclays says the market will go up. berkshire hathaway will go up he 11%, 12% in stock. warren owns berkshire hathaway stock. he is nine 1/2 billion dollars richer. he is the second most wealthiest man in the world right now. stuart: he is up 9 1/2 billion since the election last year where he backed the losing candidate. liz: right. stuart: he backed the losing strategy. liz: that's right. stuart: he is up nine 1/2 billion. how about that? berkshire hathaway, 166 as we speak. got it. building up the military presence in the mid-east. yes, we are. we'll tell you how much more troops are heading overseas right now. they are, you no. fake news question mark? fox news zan hannity's tweeting yesterday after appearing on cbs sunday morning. fake edited news. cbs released unedited 45 interview seeing bs games you play in the edit room. i dare you.
stuart: i'm going to use the word only, we're only down 130 points t could have been a lot more than that given the political backdrop. we have been down the last week but now we're down 120. 20,467. yes i do have the amazon story of the day. it is looking to build more brick-and-mortar stores. however the stores will be automated. you walk in. you scan your phone over items you want. you walk out, no check out counter he needed. amazon is down five bucks. bricks and mortars guys, mazey's -- macy going on coupon
blitz. never forget about sears. it is moving up today. that is a 12% gain, $9.56 per share. how about that? that is a rebound from the debacle last week. 200 troops from the sharpened america's attack forces the 82nd airborne, they're being deployed to the middle east. the commander of u.s. and nato forces in the middle east says 5000 troopers are needed quote, to break the stalemate this that country. come on in, ralph peters. we're in a shooting war. we've been in a shooting war for 16 years. he my question when do we get out? >> that is my question too. there are two different answers for two different problems. iraq and afghanistan are profoundly different in their prospects. we're not beyond forward observers, special operators.
we're doing it right. the trump approach, really jim mattis approach is beefer version, a beefed up version of the obama approach. we provided a vice, planning, artillery, air power, intelligence, some low gisttic support but low do fighting on the ground. they take the heavy casualties. that is how you do it by this kind of war. by the summer we'll see end of mosul. there may be pockets here or there. iraq will be in much better shape. the real challenge comes for us, stuart, what comes for us with iran the dominant power in iraq and syria by the way. stuart: you're convinced, we go in, help them do the job and then we leave? we're not occupying territory? we're not building up a new country, we're not doing anything like that at all? it is in, kill them and out?
i hate to be crude about this is way you see it? >> that did what works. you go in, kill them and we leave. in afghanistan the other part of the problem we did exactly right thing in autumn of 2001. we went in there hammered the living daylights of taliban for hosting al qaeda. by late and spring, summer of two thou two. we stayed and should have left. we spent blood and treasure turning afghanistan into colorado. it won't work. iraq matters strategically. afghanistan is worthless. by the way in afghanistan we can't admit it, but we're the red coats. after 16 years of warfare, the taliban, these rag bags with no major foreign support, a little bit from pakistan, they're hanging on. they still dominate about half of afghanistan, despite all the money, the blood, the treasure, advice, equipment we poured into
afghanistan. woefully corrupt afghan government is still losing on the battlefield. while i support our actions in iraq, i think it is time to recognize the economic principle of sunk costs in afghanistan and leave. let the pakistanis, let the russians, who are working against us in afghanistan, let them have it. stuart: ralph, i have got an update on the london terror attack of last week. i want you to stay there. i want your comment in a second. london attacker, according to media reports that man, khalid masood, sent a message using what's app. ashley: that is message service. stuart: encrypted. ashley: the message was encrypted you say, sent just minutes before he launched attack. british intelligence pleading with those who operate whatsapp to get access to the final communication, identical to the fbi trying to get into the iphone of the san bernanadino killer. you remember that whole thing? stuart: of course. ashley: they eventually found
another way to get into it. london intelligence says we need to know who this person is communicating with to find other people. stuart: ralph, here we are again. the authorities want access to encrypted technology and encrypted messages. where do you stand on this? >> to me this is as clear as an issue could possibly be. if whatsapp does not provide the plain text of those messages to law enforcement in britain, whatsapp, by extension apple, is aiding and abetting terrorism. period. i mean this is clear-cut as can be. are you telling me you can make money off of our societies? then you can hide the identities or the plans, the connections of terrorists? this is not about personal privacy. this is about simple disease sy and the rule of law. stuart: by the way whatsapp is owned and operated by facebook at this point. >> i apologize, i meant facebook.
stuart: ralph, thanks so much for joining us. see you real soon. president trump flipping the script today, announcing a brand new office tasked with slashing bureaucracy. it will be led by his own son-in-law, that gentleman there, jared kushner. we have details for you. ♪ what's happening here? this is my new alert system for whenever anything happens in the market. but thinkorswim already lets you create custom alerts for all the things that are important to you. i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade. or how high the pollen count, flonase allergy relief keeps your eyes and nose clear.
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something for everyone is awesome. find your awesome with the xfinity stream app. more to stream to every screen. thank you so much for that down home welcome. show me female vocalist of the year. thank you so much. thank you so much acm's, i appreciate it. show me acm best moments. i could never have wished for, asked for and dreamt of anything more than this. catch your favorite moments from the acm awards and an exclusive encore performance by kelsea ballerini following the show on xfinity x1. the acm awards. live on sunday, april 2nd 8/7 central on cbs. stuart: netflix is going to spendbillion dollars this year on original content -- 6 billion. they only spent five billion last year, double hbo. stream something king.
netflix is only down 20 odd cents. not much. "barron's" likes viacom. that stock could pop 40%. doing nothing today. dead flat at 42. to the white house where president trump's son-in-law, jared kushner's role is expanding. leading a new business using business ideas to fix government bureaucracy. tammy, he wants to streamline the bureaucracy? many have tried and nobody succeeded. >> they always thought the bureaucracy could heal itself. that of course is false. he wants to bring in kind of a partnership with business of course. we know that that works. he is saying this is an offensive move. it is non-idealogical. wants to focus on data, bringing in business to help do things like reform the va and how to get health care to veterans. bringing internet to every american. this is very exciting and if anyone can do it he can. stuart: you think it can actually work? >> yes. he is already working working wn musk and tim cook and others who have been against donald trump
but now they're working with within this framework. the only difference he says he wants government to be seen like a business. citizens are the customers. that is a little dangerous inthf you want to move mentality of really delivering product where we have the a say nature whether or not it is successful i think that is a very good way to go. stuart: it is a great way to go if you can overcome the politics of federal government bureaucracy, unions and the rules. liz: tim cook, elon musk. gary cohn is on the team, former executives of gm and microsoft. stuart: the spirit is willing but the flesh is weak. liz: come off of sunday church, didn't you? stuart: why did you say that? okay. ted koppel sells fox news zan hannity, that hannity is bad for america. wel play you the sound bite. you can be the judge of that. we continue e running the on this program, the republicans failure to replace
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>> you think we're bad for america. you think i'm bad for america. >> yeah. >> you do. >> in the long haul i think you and all these opinion shows -- >> that is bad sad, ted. >> you know why? because you're very good at what you do. because you have attracted a significantly more influential -- let me finish the sentence. >> i'm listening.
>> before you do that. >> with all do respect. >> take the floor. >> you have attracted people who are determined that ideology is more than facts. stuart: wow, that is interesting out cue as we say. veteran news anchor ted koppel, fox news's sean hannity, that was yesterday on cbs sunday morning show. look who is here. howard kurtz, the guy from media buzz. i want to try to synthesize this down. i know sean objects it was two minutetaken out of a 40-minute interview. the point koppel was making opinion had made its way into a lot of news outlets. i think that is true but i think it is inevitable. what do you say? >> well you know i debated ted koppel on a panel last year and he is absolutely convinced the rise of cable news and this thing called the internet has been bad for journalism and bad for the country, he prefers old days. by logic koppel was using,
wasn't saying just you, hannity, opinion shows, he should feel rachel is bad for america. interesting to show he beat up on "hannity" and sean hannity's audience which he seems to think isn't based in fact. stuart: there is subtle opinion involved in any news broadcast, because what do you consider to be news? there is bias involved in what is news? and then there's the way, how do you write the story? who do you quote? who do you not quote? what do you put in and what you don't put in. i think buys has always been there. i think opinion is playing a greater and greater role. you would agree with that, right? >> i do agree with that but i also agree with the point hannity made, you know he, the audience is smart, more sophisticated than the elites give them credit for. they get it. when you watch hannity seeing opinion show. sean hannity is paved e paid for his opinions. big supporter of president
trump, makes no secret about that. that is also true on other channels and opinionated shows. also true of newspaper editorial pages and op-ed pages. people get the difference. stuart: increasingly the editorial page of a newsper has bled over its opinion to the news pages of a newspaper. i mean look at "new york times" and certainly "the washington post." >> i think that is particularly true in the age of trump where a lot of people who would be in the role of trait journalist reporters, seem to feel like they're on some kind of a crusade. stuart: yep. >> to be negative againstthis president and almost no matter what he does. i think also the, internet, social media have opened up people understanding better that there is a lot of bias sometimes out right, sometimes subtle, sometimes by omission you say what has long been presented as just the straight news. stuart: this is a political opinion show, "varney & company." everybody knows it.
i express opinion what i think is going on in washington and how it affects the economy. i do not express an opinion whether the stock market will go up or down. i don't say buy it now, sell it tomorrow. i don't do that. i think that is legit. you're the "mediabuzz" guy, is that legit? >> it is totally legit and different from what bret baier and chris wallace do. you make no bones about the. you have a lots of opinions. that is why we enjoy watching you. stuart: oh, you do? all right. >> you're so easy, stuart. stuart: i rolled over for that one, believe me. howard kurtz. so glad you're on the show this morning. and i love "mediabuzz." you're right down thmiddle. you never express an opinion. >> good judgment. stuart: thank you, howard. see you soon. yes, sir. straighten your face out stuart. let's get back to friday's debacle. i say it undermines president trump's growth agenda. with us from the london center
for policy research, dr. herb london back with us again. say it was a debacle t was a gross failure by the republican party in its first test. i think that undermines the rest of the agenda going forward. are you with me? >> not entirely. i think the question of tax reform there is more likely to be consensus. stuart: really? >> yes, i think so but on the issue of medicare or obamacare, one of the things that you have to consider that you had years to plan a strategy. you had years to develop consensus. i am very angry at the republican party for not using this extraordinary opportunity to build consensus when clearly it could have been done. paul ryan should have been doing that. >> you're angry at ryan, not the freedom caucus? >> i'm angry at both. look, they should have been working together. mr. meadows is not so intransigent he could not be worked with. the problem, kind of leadership is provided if you're going to engage in horse trading obviously it was necessary, it was necessary years ago.
the republicans knew they had this opportunity. start building an agenda for the future. stuart: why do you say consensus on tax reform is more likely? remember you have got this border tax, it is a huge sticking point? >> i think border tax will be an issue. i think you're right. the overarching issue, i think there is agreement on the part of both the pragmatists as well asdealogues. there is no doubt all of them now believe corporate taxes have to be decreased in order to get the kind of growth that we're looking for in the united states. look at 4% growth there is an awful lot can be healed in america. stuart: i agree with you entirely. that 4% growth target is receding. going further and further into the distance. the longer and more watered down a tax-cut package becomes. does it have to be a package? in other words do you have to lump together corporate tax rate cuts. individual tax rate cuts and border tax. >> no, you do not? in fact one of the things could
be done are the matter could be looked at incrementally. this is key issue. i do believe republicans learned something from this experience last friday. stuart: what? >> what? they have to work together this some fashion. they control the government. the cynicism so widespread you look at miss pelosi, who belongs in a house of wax, miss pelosi -- stuart: you're terrible. >> you see the failure of america. not failure of america. it is failure of a party to come together. schumer, the same sort of thing. what you have here is fellow losing his hair and his nose is growing longer as a result of all the lies but here you have the fellow who is unquestionably interested in seeing the republican party fail. not to see the country succeed. we have to move forward on obamacare. stuart: you think, we have to move forward on obamacare. >> on obamacare and taxes. stuart: will not happen anytime soon. it is with us forever. >> it is going to fail. it is with us forever.
not forever, it will fail. it will die of its own weight. what you have to recall, which i think is important, matter of tax reform, i think you have different kind of consensus, a different set of constituencies you're dealing with. stuart: show mevidence this monday morning that makes you think we're going to get consensus on tax reform amongst republicans? where is the evidence for that? >> you know something i can not provide you with evidence except conversations i had some of people you would describe as idealogues in the obamacare debate. stuart: you talked to freedom caucus people? >> yes i have. stuart: are they sorry for what they have done. >> some of them r some believe they didn't move in the right direction. stuart: ted poe came out left the caucus. >> that is clearly an example. but i'm suggesting to you, looks at issue. republicans have learned something from it. the president of united states suggested he learned something from it. i do think we're moving in a different direction now. i do think that the matter of tax cuts will occur. i do believe that will occur.
stuart: are you a donor for republican party? a donor. give money. >> i have on occasion, very frequently. stuart: will you in the future if they don't get themselves together on tax reform. >> of course not. of course not. stuart: could you vote democrat if they don't get it together on tax reform. >> that would be very, very different. i was mugged by reality in the past. i used to be a democrat in former life. stuart: sounds like ronald reagan. that is exactly what he said. dr. herb london. we appreciate it. >> always a pleasure. stuart: it was another winning weekend at box office by the way at least for disney of the "beauty and the beast." this is the second week in a row. liz: on track to become a billion dollar movie along with avatar and "titanic". 119 million. 80 u.s. this is barn-burner of a movie. 690 million, this movie already earned within the past two weeks. stuart: 690 million? liz: correct. onrack to be a one billion
dollar box office movie like "titanic" and "avatar." ashley: cos 116 million to make. they're making nice dough. stuart: 116 million to make. 690 million coming already. liz: here is another record. march was biggest grossing month for movies of all time, with "beauty and the beast" and "king kong.." stuart: one more item from hollywood. studios want films to be streaming into your home much sooner than in the past. tell me. ashley: yeah. cinema owners are absolutely upset. this is trend going on and on. video-on-demand. programing on demand is killing movie theaters. it is expensive to go to the theater these days. you have to put up with idiots talking in front of you, behind you, phones on. i hate it. >> $10 popcorn. ashley: people think they're in their own living room you but they're not. they're in a cinema. what hollywood executives would like to see, get access to blockbuster movies 45 days. right now it is 90 days.
liz: what will you charge, 30 to $50. ashley: that is the kicker, 30 to $50 to pay for these, you know, very recently released block buster movies premium service. stuart: you should have told me that right up front. that extraordinary amount of money. ashley: i won't piv it away at the beginning. i will build up to it. liz: went see stuart doing that unless you get a tax cut. stuart: excuse me. uber halted lf-driving car program. lizzie, what happened. liz: tempearizona, three-car collision. uber got hit. no injuries. here is the rub for uber. they had been testing cars in california. they didn't get a test permit. they got in trouble. they went to arizona to test it. now it got banged up. to figure out what happened. why is the uber car on its side right now. uber needs robot cars, it says, we heard from wall street so it doesn't get in labor fights with drivers. ashley: got hit by idiot human driver. that is the bottom line. that will happen.
stuart: the question is liability on part of self-driving car software. ashley: who is liable. stuart: which driver, the human person or the autonomous car, who's liable. liz: it's a product. stuart: i don't know the jurisprudence on this at all. somebody has to figure it out. after a failure to replace obamacare will we get tax reform before congress take as summer break? we'll discuss that throughout the hour and today on this network. at the 11:00 hour my take and message to the republicans which is grow up! karl rove will be respond to that. ♪
ashley: financial analyst dick bove says you may lose money on bank stocks if you hold them through the summer. listen to what he had to say about that last hour. roll tape. >> the question is, okay, we have a tax cut. we do things that are going to make the system better, but who is going to buy the deficit? i don't get it? that is one problem. the other problem of course is, everything coming out of washington, to this point clearly indicates that there is no desire to deregulate the big banks. what we want to do is help the little banks and get rid of annoyances like the volcker rule
of the biggest losers on the s&p, tax cuts may be watered down. that hurts all the financial stocks all across the board, the banks, the investment banks, the community banks, all of them are down big time. that is a drag on the dow industrials. back to friday's mess, i will call it that, we are now stuck with the imploding amacare and presidt's legislative calendar i think is at risk. byron york from the "washington examiner" is with us. byron, here is my premise. the mess on friday means problems for the growth agenda. what say you? >> absolutely. first of all, we're not over what happened on friday. you don't have something that big happen and people not be blaming each other for quite a while. but clearly one fundamental mistake president trump make and house republicans made that could get a giant legislative matter through congress really,
really fast. with relative small dips in the stock market people were thinking, that they were optimistic trump would get stuff done and get it done quickly. this is kind of a reminder there is a law of gravity in all of this. it is not going to happen really fast. president is reaching out to the democrats and his agenda. i can't see which taxes any democrat would actually cut. i can't see what help they would actually deliver to the president. can you? >> i think you're right about that. talking about cooperation with democrats on that is very optimistic. right now. look, i think there are some democrats who would agree to a corporate tax cut. i think as far as individual taxes are concerned, there is no way that they're going to agree to a tax cut also includes the highest income brackets. i think they're are going to be
disagreements among everybody over the border adjustment tax. and, remember something here, remember how we were talking about after all these years publicans didn't have a plan. they had not agreed,nited behind a plan to replace obamacare. they haven't united behind a tax cut plan either. so they have got a lot of stuff lying around but there is nothing they have agreed on yet. stuart: if he doesn't get help from the democrats, he has to bang his own party into line, which means busting a couple of heads and really laying down the law. i mean is paul ryan going to be able to do that? is hines priebus going to be able to do that? has the president got the juice to do it? >> the fact they weren't able to do it with obamacare and then they just gave up. i mean the weird thing about this if you look at the passage of obamacare, it took more than a year. there were a lot of setbacks. there were people in congress, people in the white house who said it would never work. they kept going.
they finally succeeded. and i believe on this, obamacare repeal effort they spent 17 legislative days on it. now they're on to something else. stuart: do you think they will go back to obamacare reform? >> they will have to. they will have to. it is still there and it is still a problem. so the house republicans who have been saying for seven years they are going to do this, really can't stop after couple weeks of failed effort in the majority and then just move on. stuart: okay. the stock market is down this morning but not as much as i was expecting. my analysis is that maybe there is still hope for a solid tax cut deal. we shall he see. last word to you. >> well, yeah, there are obviously is hope. on the other hand there is hope about doing something else. there is still infrastructure out there, which is not going to make a lot of republicans happy. but that actually is something that government spending, that trump might be able to get some democratic agreement on. stuart: that is a fair point to
make. byron, thanks as always. see you soon. stuart: got it. nexttory hhlights st one of the pblems we're faci now that obamacare remains in place for the foreseeable future. births, a lot of births. in 24 states the majority of births take place under medicaid. ashley: they're all covered by medicaid. this is the year 2015. look at some numbers. new mexico, 72% of babies born in new mexico, medicaid. arkansas, 67%. louisiana, 65%. mississippi, nevada, wisconsin, 64% of all babies born in that year were on medicaid. stuart: what is the bottom line here? what is the implication of that? liz: because of obamacare and medicaid reforms people having to use medicaid to -- ashley: cover the costs. stuart: taxpayer covered. ashley: correct. stuart: got it. coming up in the 11:00 hour, almost there, all-star lineup
stuart: last week i asked special guest mark steyn whether or not i am a snow flake. we're going to pick out one of your comments on that issue. the comment came from brian. listen to this. no, stuart is not a snowflake but he does moan when things don't go as he would like them to, wait, for it, for a 70-year-old man one would think he would have learned how to be patient. liz. ashley: i'm laughing only because you can be a bit impatient. you're not a snowflake. the snowflakes way i understand it have to go to safe spaces and can't hear any other opinion than their own. get back to bigger issue 70? stuart: no iot 70. quite. ashley: around the corner from it, no? stuart: very close. liz: you're a redwood. you're a redwood. stuart: a redwood?
liz: you're not a snowflake. you're a little bit snowflakeky when you're upset or tax cuts putting forward. stuart: you're agreeing to our letter writer. the message. liz: to a degree. i don't think you're a snowflake. you're one of those people who write letters to the editor at the local newspaper if you don't get your way. stuart: well, well, i'm so glad brian wrote to us. ashley: keep them coming, brian. stuart: what do you think is happening to my blood pressure right now? liz: we're teasing you. stuart: that is enough of that i promise. we will be back. no matter how dusty the room or how high the pollen count, flonase allergy relief keeps your eyes and nose clear. flonase helps block 6 key inflammatory substances
for obamacare. as a result? the rest of the country is stuck with full on obamacare. as they said throughout the program today, this is a drag on future growth. it is a big blow to the growth agenda, and it is a blow to the political credibility of the republican party. my message to republicans is "grow up. we, the people gave you the house, the senate, and the white house. and when you were given the first opportunity to govern, you failed." worse, the republican divide threatens tax reform and deregulation. if you fail at that too, kiss goodbye to future prosperity. and investors can kiss goodbye to at least some of the gains they've made during the trump rally. stocks went straight up after the election because investors believe that trump and the republicans could deliver growth. friday's mess is a below to competence. they better do something better about this like follow the example of ted poe, a
texas republican who just left the freedom caucus. he says republicans are elected to govern, and they failed. he's right. the third hour of "varney & company" is about to begin. ♪ ♪ ♪ . stuart: what is that? do you know it? that's ozzy osbourne. i believe he was an still is, i believe. look at this. third hour of "varney & company." here we go. we've got an all-star lineup for you. it former reagan columnist art law enforcement officer and former macdonald president ceo ed, we have a lot to go at this hour, yes, we do indeed. first, though, breaking now. president trump meeting with women business owners. we're going to bring in news
from that meeting as it comes to us. he may, the president may say something about tax reform, tax cuts, and the mess from last friday. he may address that. if he doesn't, he'll be making news. let's get to your money right off the bat here. the dow industrials are down but not as much as some people expected investors are clearly worried that what happened on friday derails the president's growth agenda, but we're only down 109 points, that is a half percent. still holding right close to 20,500. i have to bring you a couple of individual stocks, which are moving. amazon, they're exploring more ideas for brick and mortar stores. how about that? for groceries and appliances, products that have proven to buy online. you walk in, click the app, walk out. that's the brick and mortar amazon is talking about. look at netflix.
they're going to spend # billion dollars on original content. last year they spent 5 billion. that was double the budget of hbo. netflix now on the upside in a otherwise down market. how about the health ensurers? i mean obviously the rejection of the obamacare reform bill as everybody thinking about this. the health ensurers are down this morning. it's not a huge sell off by any means. but the health insurers are down. the first of our all stars this morning, former goldman sachs guy, peter is with us this morning. >> happy to be with you. stuart: right. now you were saying last week that if the market gs down today, it might be a buying opportunity. well, it's down, not thatch. is it a buy? >> this is not what i call a big spanking. okay? correction is 10%. a bear market is 20%. since last tuesday, we're now down 2%. we're just having some adjustment. what i would say to people is
wait for it. watch for the leaders who are getting punished. watch the banks getting crushed here. they're getting hit pretty hard. stuart: they are. >> watch small business. they're negative for the year. this are the buying opportunities. stuart: so it's going down some more, you think? before you buy, you've got to see it go down some more. >> and i would look for opportunities. bank of america, just look at that stock. 22 bucks today. two years ago it was 12th. it has doubled in two years. it's down a little bit. it's going to be fine. you've got a lot of people who are running into bonds for safety. and so what that's doing is that's flattening the yield curve. you're seeing a lot of interest rates go down. banks therefore can't make the same amount of money. i think the banks are going to come back. that's going to be a great place to go. i like health care and small business. when small business stops just a little bit lower, they're going to be there. stuart: all right. stay with us, please, peter. i want to bring in john la layfield joining us from sunny bermuda, as we always say.
is the market a buy at this moment given the deep that we see this monday and the dip that we saw all of last week? >> no. i don't think it is. the market is richly valued right now. if you don't get the corporate tax reform and there's only way to characterize this. this was a disaster for the republicans, and i think now it puts in peril this corporate tax reform, which is bipartisan, by the way. but to get a tax reform, you're going to have to get a whole lot of other things that go with it, and that puts it all in peril right now because the administration and the republicans were hit hard this past week. . stuart: now, we asked you which stocks would you be buying right now? and you come up with a list of three. and all of them pay big dividends. so you're recommending a david play. let's put them on the screen and go through each one, please, john. >> yeah. two are content plays. verizon and at&t. and that's all about mobile content. they both yield about 4.7% yield. and then you go to bp, which has a 7% yield, which is insane in this market right
now. that yield looks to be safe. verizon especially. now, this could really benefit from corporate tax reform if that does happen because you will get about 20 cents on every dollar earned that goes back into this country. but either way, the didst are safe and dividends right now are a very good and safe play in this market. stuart: yeah, because a lot of our viewers are thinking maybe it's time to get out of the stocks that made so much money over the past what? four or five months, get out now. where do they go? cash doesn't pay you anything, so your answer is go to the did big name david payers. and that's what we've got on the screen. that sums it up for you, john? >> absolutely. dividends have been the de facto bonds the last couple of years, and i think they're going to stay that way a while. you don't get yields anywhere else except for these direct evidence stocks. stuart: wwe announcing plans to make pay per view special in china. i know you're a former wwe guy, any comment?
>> yes. i'm going to do commentary for wrestle mania for 70,000 people, i won't be doing it in mandarin. they'll have someone that's going to translate that. john cena, the face has learned mandarin, did a press conference in china in mandarin, that's how important that market is. also shows you how smart john cena is. stuart: yeah, but that was quite a digression for us, isn't it? a man from bermuda is going to comment on wrestle mania in china. good stuff. we cover it all. john, thank you very much. appreciate it. good luck sunday. i want to get back to my tape top of the hour. bring in carl, welcome back to the program. i say that republicans have -- they've got a real problem on their hands because they're not united party. and implicitly the top of the hour, i was blaming the freedom caucus. where do you stand on this? >> i agree. they started out by attacking saying obamacare lied. in fact, one of their leaders said it does nothing to remove
the exchanges. nothing to remove the taxes. that was completely untrue. and from then on, it was error after error, entangent after entangent and in the end, they let the perfect be the enemy of the good. . stuart: what now? >> well, that's the case. i mean, you can't bring this issue back up. so much damage has been done. now they've got to move on to tax cuts but there's a deep concern that once again the freedom caucus will be insisting upon the perfect. this probably means it will have a skinnier tax cut. maybe focused on corporate side. maybe with an individual side. but the idea of robust reform is unlikely to happen in this bill. stuart: now, the president is supposed to be reaching out to democrats for tax reform. i just can't see which taxes any democrat would actually get behind in cutting. which means if the president doesn't get help from the left, he's got to go back to his own party and knock some
heads together because you've got to have tax reform. otherwise, the entire presidency, the growth agenda is toast. >> yeah. well, i agree with you except for one thing. knocking heads. i don't think it was constructive when steve manon got the freedom caucus in and said unify got no alternative but to vote for this. now, that may be true but people don't like to be reminded of it. the president is better if he's the guy dispensing honey than the guy who's cracking the whip. so people are going to have to in essence say to the freedom caucus, you guys have to be rational and reasonable. those have got to be their colleagues. it's more important that their junior member say to a freedom caucus member you put me in a bad place back home by making ouparty look like it couldn't govern. he better be the guy who's dependencing a little bit of honey and rely upon the members of the house don't do this to us again. stuart: let me restate my
presence and see if you agree with me. the mess last friday means that tax reform will be either delayed and or watered down. what say you? >> well, i think it's more likely to be watered down. i've always been the opinion that it's likely to take longer than we've been talking about publicly. it's just -- first of all, you've got to do it through reconciliation, which means it's going to take until september, october, defeat it through that next reconciliation bill. so i've always thought it was going to take a long time. but i think this is the more practical effect is that it's going to skinny it down and not be as robust as we need. stuart: all right, carl, we appreciate you being with us. thank you very much indeed. >> you bet. sorry we won't be calling wrestling matches in china. that was very impressive. . stuart: well, it was a diversion for us, but you don't speak mandarin, do you? >> no. no. stuart: do you? >> no. stuart: thank you, carl. and we'll see you soon.
>> in this present crisis, government is not the solution to our problem, government is the problem. stuart: i remember it well. government is the problem. never the solution. art laugher was a reagan economist, helped with the reagan tax cuts, and he's with us now. art, our premise is that after the mess on friday, a divided republican party, tax cuts of that package is either going to be delayed and/or watered down. i don't know why you're smiling because i'm right.
go. >> in the first place you got me smiling because watching carl speak mandarin chinese was a riot and then you say i wonder if he was going to be smiling. so i was going to come on with you, stuart, and go -- i decided better much that year t. remember, life is a marathon, it's not a sprint, stuart, and we're going to come out of this just fine. stuart: wait a second. i admire your optimism. i really do. but this republican party is split. and now we face tax reform, and they're split on tax reform. some of them want the border adjustment tax. some of them don't want the border tax adjustment. they are split. what do you say? >> i don't want the border tax adjustment. i don't think it's the right thing to do. but in a whole package if you
look at the whole thing and make a decision as to whether the whole thing is better than nothing, you know, regals said getting 80% of something is better than losing all of it. and the point here is that we will come together. it's just early in this administration. we didn't get our real tax bill until '86 where we dropped the highest rate from 50% to 28%. can you imagine that? that was 1986. i'm not worried about it now. but i am very glad. i'm glad that trump is reaching out to the conservative democrats. i know them very well. and they have talked to me a number of times, a number of th have, a they want to be part of the tax procs. and frankly, some of these democrats are very, very good, and i think mnuchin and the president and all of the team there should work with democrats in the house. stuart: wait a second. how on earth are you going to get any democrat in the house or the senate to agree to significant cuts in individual
tax rates? in corporate tax rates? they will never agree to anything like that. >> that's just not true. i know a number of democrats there, and it's a large group, stuart. maybe 45, 50 of them who really think the corporate tax rate is way, way, way too high. now, they're going to demand some compromises and some other stuff, probably a carbon tax offset for cutting the income tax rates or something like that. but i know a number of the democrats would be willing to trade a carbon tax for cutting personal income tax rates, static revenue neutral, and i would do that deal every day of the week and twice on sunday, myself. i think it's very good pro growth. so i don't see any reason why of them and not the weirdies. not the pelosis, you know? . stuart: don't go too far off pace here. stay there for a second. i've got peter with me. you think it's possible to bring democrats into this sort of coalition and cut taxes?
>> i think it's a matter of necessity. who is going to the freedom caucus? otherwise if nothing has changed, we'll be in the same position in tax reform as we were in health care reform. stuart: yes. exactly. >> you have to make a change. stuart: yes. u to make a change. >> so he has to reach out to these conservative democrats. he's got to do it. otherwise, what is the definition of insanity according to some geniuses? same thing over and over expecting a different outcome. that you know movie all the right moves? this particular movie was not all the right moves. everybody did the wrong thing. i'm telling you we rushed a bill through with ryan, if you look at his background, not a legislative heavy weight. we didn't have the votes. journeying consensus, and we jammed it the last minute. liz: you know who got it right? john boehner. in his 25 years, he's never seen republicans agree on healthry form. . stuart: well, he was right wi
. stuart: nigel farage, the gentlemen on the left the man behind brexit, well, now is planning to do something similar in california. believe it or not, he has raised a million dollars to campaign the state to divide. art laugher is with us. now, art, when i first saw this story, it's north versus south, that would be the divide. it's not. it's the coastal elites being separated from the internal imperial valley poverty-stricken people. to send
troops out there and protect california from foreign invasion on the west coast so therefore they wanted all of these states to have a common defense project. that's why it's one state. now, dividing the state into two or three or four or five parts could make sense. it's -- in the first place, it's a large state with no personal politics. when you realize that an assemble man in the state of california covers almost what men there with 36 million person state. so you have a huge coverage there, which is no personal politics. i would like to see it, but i don't want to make it. stuart: it's not going to happen. >> i don't want to make north-south and have two liberal states. if you're going to do it, get all the liberals in one tiny area and then make the other states. stuart: peter is still with me. why is the brexit guy involved
in california? >> i love british. what can i say? i think there's no chance this works. this has not been done since stuart: no, it's not.r >> in the same sense you have nigel doing that, what do we have a brit doing a business show in the u.s.? . stuart: teasing. who is supplying farage with the money? >> mostly the agricultural belt who might benefit here from some state separatism, that's where the money's coming from. stuart: it ain't going to happen. okay. i think we nail that one down. thanks, everybody. >> if it succeed, could we all vote to have them succeed? . stuart: judge calling on speaker ryan to resign in no uncertain terms. next, we're joined by paul ryan's former chief of staff. will he defend his former
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>> so now we're going to go for tax reform, which i've always liked. i would say that we will probably start going very, very strongly for the big tax cuts and tax reform. that will be next. stuart: well, are we going to get them? that was president trump eyeing a big tax reform bill after the obamacare i'm going to call it debacle again. i know i've used that word a lot, but it's a mess; right? mess auto friday. look who's here. congressman, republican from ohio. and a member of the house means committee which writes the tax code. congressman, welcome back. >> good morning, stuart,. stuart: good morning. now, look, my premise is that that mess on friday puts the growth agenda at risk.
i think there will be a delay on tax reform. we will not get it before august. what say you? >> well, i'm hoping that we can move very quickly on tax reform. we've already started some of the process. there are some disagreements when it comes to some of the issues. i'm hoping that leadership realizes that we can't force this through. we're going to have to bring consensus to the table. one thing that did not happen last friday, so i'm hoping we change the way we move this forward. but in the end, i think we can get something done in august. a lot of pieces are out there. and if nothing else, the american people are looking for it. they want to see a more simplified code, more reduced tax rates. and, by the way, when you talk about growth, you heard the president say this. this is an opportunity to grow the economy. let's get our rates down. we're already working on regulations. he's already eliminating some of the regulations that are stopping job growth. let's get this tax rerate down so companies can grow, prosper, and jobs can be added in this country. stuart: but i think you would agree that the mess on friday made tax reform re difficult
because we still got the obacare taxes with us, a trillion dollars over the next ten years. what are we going to do about that in tax reform? >> well, i would agree that one of the problems that occurred on friday was it was a starting point on tax reform. we're going to have to look at that in the context of those taxes staying in or being changed. but i think in the end, we've got to reduce rates. when we have businesses that are -- that have some of these obamacare taxes, we're going to have to make sure that we take all of that in consideration. i'm hoping that we also do a hearing, i've said that in the past. let's bring people involved, let's get the consensus together. but you're right. we're going to have a little bit of a set back because of the obamacare taxes in place. stuart: you know, congressman, you may have just moved the market because when we went on the air five, ten minutes ago, we were down close to 100 points now we're only down 60 points and your enthusiasm, your positive thinking that,
yeah, we do get a tax deal done quickly, you may have moved the market. would you like to appear on the program on a very regular basis for the next ten years because we would be delighted to have you. congressman, i'm sorry there's such a delay on the sound coming between us, so i'll have to end it early. but, look, we really do appreciate you being with us this morning. and we do hope that you can come back again soon. jim renacci, everyone. jim had some very strong words for speaker paul ryan. she says flat out step down. listen to this. >> paul ryan needs to step down as speaker of the house. the reason? he failed to deliver the votes on his health care bill. the one to repeal and replace obamacare. the one that he had seven years to work on.
the one he hid under lock and key in the basement of congress. the one that had to be pulled to prevent the embarrassment of not havinough votes to pass. stuart: there you have it. strong words indeed. this gentleman is named david hoppy. former chief of staff to paul ryan. dave, i'm sure you heard what judge had to say. your response, please. >> well, first of all, there's nobody else in the house of representatives who has -- among the republicans that has the support that speaker ryan does and frankly i don't think anybody else wants the job. so there's a couple of reasons that i don't think anything will happen. in addition to which as you move forward, the most important thing is how do you develop the ideas and bring together the factions around those ideas? they were not successful last week. but having said that, it is working with the different factions and the ideas and there's nobody better to do that than paul ryan.
and also you have to remember in washington, the incriminations are the greatest days ever. they have to continue to pursue the agenda. stuart: you're right. the incriminations this morning are extreme. and you've seen this all over the place. there's extreme recriminations against speaker ryan, against the freedom caucus, et cetera, et cetera. do you think the recrimination are so strong that it will force the party together, force on some form of tax reform so it can get the growth agenda going? >> well, i think, first of all, you have to have a little time here. it is necessary to take a little time and, in fact, moving forward on taxes is very important. but before you do that, at least the strategy they have been employing, they need to do an fy18 budget because it is a budget reconciliation package for fy18 that they want to use as the vehicle for
tax reform. if they decide to do that differently, they can move quickly on tax reform. but also, i wouldn't say that they're not going to come back to health care at some point. and what's going to have to be done is you're going to have to get the tuesday group, the freedom caucus, and other republican members sitting down in a room because both the tuesday group and freedom caucus have a veto on this thing. bot were strong enough last friday to stop the republicans from getting 216 votes. so both have to be a part of any process going forward to put that back together and any process which will deliver tax reform. but, yes, tax reform will get done. i don't believe it will get done before the august recess, but i do believe tax reform will be done this year. stuart: okay. dave hoppy, thank you very much for joining us, sir. >> my pleasure. stuart: you're going to have to tell us exactly what's going on. thank you. appreciate it, dave. now, peter with us still. what do you make of all of this? >> i don't buy it. what has changed since friday? a little mudslinging.
i don't agree despite the speaker. i don't agree what it's worth ryan cloaked himself in glory. but the freedom caucus, mark meadows, there are an awful lot of people who didn't do the right thing here. and what we are are the same cast of characters with the same basic hard felt positions. why are they going to suddenly come together in a fy18 reconciliation bill? i don't see it. i don't think august is remotely in the card. liz: they don't have to. they're not in endangered seats. they're backed by the coke brothers. stuart: that is true. but which democrat would join with president trump to cut taxes? which democrat wants any cut in taxes of any kind? >> the only way to do it is you have to bundle it, package it up with others other goodies, and if this was packaged not just as tax reform but as a jobs program, maybe you could bring some dems in. but it's the only way, the only weapon you could use against an intractable and
entransit freedom caucus. stuart: the sentiment of the market, the stock market may be changing very subtly because now we're only down 66 points. that is not a significant loss. li people were really mad about this. we have opleweeting us saying the president should sign an executive order putting all of congress in obamacare and then they can reform it. >> the market response is nothing. it's nothing. 10% is a correction. we're nowhere near within a country mile. stuart: in fact, we're only down about 2% from the high. the all-time high. >> and you look at some of these stocks, some of these bank stocks have more than doubled. so they're down a little bit. okay. grow up. basically we have a market that's not really punishing. stuart: that was my line, by the way. >> oh, sorry. stuart: i said that to the republican party. grow up. [laughter] all right. let me show you the price of gold. reached the best level in i think over a month now. the dollar is down to its november levels. and that puts commodity prices like gold on the upside. and look at snap.
that stock's a winner today. a number of investment firms are saying buy it. by the way, investment firms, the underwriters as of today, they're allowed to do research on this company. so of course they put out buy recommendations. they underwrote the thing in the first place. that's why it's up nearly 5%. have i got that right, peter? >> i think you're right. there's a lot of fans at snap. all of a sudden come out of nowhere. must have been it's $30 billion, it's worth it. stuart: and then you've got disney. beauty and the beast still number one at the box office for the second week in a row. i think they've ought in 690 million in a coupl weeks? liz: that's correct. stuart: a lot of money. okay. now the big board shows they've lost only, and i use that word advisedly 60 points, there you go. who's next? ed ramsey, the guy who used to run mcdonald's. he joins us. he says house members and senators are acting like spoil brats. oh, this i've got to see. back in a moment. don't let dust and allergens get between you
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>> i'm nicole petallides with your fox business brief. the dow had been down over 180 points. right now down 60 points. still looking at its day in a row of selling, and we haven't seen that in five and a half years. the s&p 500 is down five, the nasdaq down five. looking at some of the dow winners and losers, d losers,
dupont, clears a 130 billion-dollar deal, dupont at the top right there. pfizer also a winner, goldman, general electric, american express falling, that is weight on these banks but high hopes for tax and regulatory reform and most of them are down arrows. possible stocks on the other hand have extended their gains medicare focus insurers because they continue to see the benefits from the prior bill. and watching fbn a.m. i'll see you there. cwne plaza we kno busine travel isn't just business. there's this. 'a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly. [vo] quickbooks introduces and her mobile wedding business. she travels far and wide to officiate i do's. and quickbooks automatically tracks those miles. she categorizes with a swipe and is ready for tax time. find more than $4000 in tax savings.
. stuart: president trump meeting today with women small business owners. we just got the tape of what he had to say. roll it. trump: thank you very much. it's my pleasure to welcome such incredible women, including my daughter. [laughter] unbelievable entrepreneurs and small business leaders to the white house and also, linda, thank you very much. you've been doing an amazing job. working 24 hours a day is what the word is. i'm not surprised. >> trying to keep up with you. trump: i'm not surprised. and i want to thank linda for joining us today. she's doing a fantastic job leading the small business administration, and she herself as you know is a great, great success story. and a women entrepreneur at the highest level.
so thank you very much. empowering and promoting women in business is a absolute priority in the trump administration because i know how crucial women are as job creators, role model, and leaders all throughout our communities. as we conclude women's history month, i am thrilled that we can meet to discuss how we can continue this important mission. you all have incredible stories, many of you started businesses from scratch with very, very limited resources. sounds like i'm right about you, lisa; right? but you had the grit and determination to make your dreams become a reality; right? >> yes. trump: that's fantastic. now you're providing hundreds of jobs across our country and thousands of jobs. and you're really an inspiration to everybody, and that's men and women. believe me. a lot of men out there not doing what you're able to do. today women are the primary source of income in 40% of american households with
children under the age of 15. we're also know that companies that promote women to senior leadership roles realize significantly better profits, according to statistics than their competitors. i wouldn't have known that. dena, how does that work? tell me. that's pretty impressive. we must ensure that our economy is a place where women can work and thrive. we will continue to address the barriers faced by women professionals and entrepreneurs, including access to capital, access to markets, and access to networks. we will make it very easy. it's going to be a lot easier. done an amazing job. and for a while, it was a very, very tough, almost impossible job. my administration will also continue to advocate for policies that support working families, including making child care more affordable and accessible. that's something that ivanka trump, that you really have been working on and feel so strongly about.
my daughter and i actually talked about it a lot in the campaign and ivanka was right up front. i also want to recognize ivanka for helping to lead a national initiative to help promote women business leaders and entrepreneurs and the chancellor of germany is going to -- she'll be working on similar issues with chancellor merkel, so that's going to be very exciting for you. that's going to happen very soon. very great honor. i look forward to hearing your stories and how we can work together to help all of your dreams come true and make it easier for those dreams to come true. and with that, i'm going to turn it over to our great vice president mike pence and thank you, mike, for being here. >> thank you. stuart: okay. the news, if there is any news there, is that ivanka trump, the president's daughter will go to germany and work with angela merkel on women's issues. other than that, no news on the obamacare debacle from last friday and no news on the
forthcoming tax reform effort, which is going forward. no news on that, by the way. and the dow industrial stayed exactly where they were. down 59, 60 points. that's hardly a loss. that's what? .29% down on a 20,000 index. that's not the sell off that they would expect. it was down 150, 160, 170 at one stage. now down 60 points. and now this. ted poe, he is leaving the freedom caucus. listen to this. >> obamacare is the law of the land, and that's unfortunate. members of the house of representatives, republicans voted 60 times to repeal the bill now when it actually counts to repeal the bill and replace it, they backed off. they got cold feet. stuart: to repeat, that's -- that was ted poe, republican from texas. he's left the freedom caucus. that gentleman on the right-hand side of the screen
is ed rensi, he used to run mcdonald's. ed, as of this mday mornin l of obamaca is still in place. taxes, deductibles, work regulation, the whole bit. you are not happy, are you? >> not even a little bit. that royal elite ruling class in washington, dc are privileged and act like a bunch of spoiled brats. they have the only answer. the republicans have had six years to get this thing fixed and have done nothing and somehow proved it again. i somehow think in the back of my mind they love it. the only losers to this are american people, small business people that are struggling to support their families and face these unbelievable deductibles and premium rates. i did something yesterday i've never done before in my life. i sent out a thing to my facebook friends and said, hey, i'm going to be on the great varney show tomorrow. what do you think about this vote? what do you think about obamacare and republicans? i thought my ipad was going to melt down. i got so many responses, i didn't know what to do with
them all, so i just looked at a couple that i know, and it's the same thing time and time again. the politicians in dc ought to go on the same program we're forced to go on, and that will wake them up a little bit. and the second thing is you have to do something to give these people relief. they're dying out there. stuart: well, now, if obamacare is still in place, and it is, and i don't see any prospect of it, that's not going to change in the immediate future, i say that that does indeed slow down america's growth rate in the future. forget tax reform for a second. just the maintenance of obamacare is a slow down to growth at the end of this year and into next year as well. are you with me on this? >> absolutely. two things that comes to mind. i know a guy that owns a car wash and a lady that owns a disaster recovery firm. both of them are paying their employees health insurance. their premiums have doubled. now getting ready to lay people off.
it's a job killer. one guy said i don't know if i'm working for the union or working for the government. i'm sure not working for myself anymore. this has got to stop. they've got to wise up to what's going on out here in the world. stuart: okay. another premise that we've been discussing on the program all morning is that the mess from friday will now affect tax reform going forward and either slow it down, delay it, or water it down. where do you stand on that? >> i think the same phenomenon is going to take place. there are guys that are going to hide because they don't want to look so stupid. the really intelligent people that know how that legislative process works and give you all the reasons why, i think it's a lack of will. they don't want to look bad. and they ought to forget about how they look and start thinking about how the country runs. stuart: what would you do right now? if you were president trump, you were the executive in charge, what would you do? >> well, i tell you what. i would be a young phenom. i would have a lot of heat and
no control, that's for sure. he's got to start bringing regulations into the equation, somehow. and i would punish those republicans that didn't get onboard. they need to understand he's the commander-in-chief. he's the senior executive of this country. he's neither rapport democrat. he owes nothing to nobody except the voters who put him in office, and that's who he's going to pay attention to. stuart: okay. i'm going to calm everybody down because, ed, i'm going to show you something a little bit more lightweight here. a 94-year-old woman celebrating 44 years of working at mcdonald's. yeah, that's the lady. 94. coworkers through her a party. her name is lorraine. she started working at mcdonald's in 1973. so you were her boss at one time right, ed? >> i don't think anybody that has that much dignity and stature could ever have a boss. i had the privilege of working with her. by the way, she eats at mcdonald's every day, so it must be good for your health. stuart: is that right?
do you know that for a fact or what? >> no, she does. after every shift she has a meal. stuart: just out of interest, if you work at mcdonald's, do you get a free burger? >> well, of course. stuart: you do? >> it's a privilege. stuart: okay. i'll have to remember that. i used to be a waiter when i first came to america. one of the big treats was they fed you. and i really liked that. that was good stuff. i was hungry in those days. >> quite a benefit. stuart: nice benefit. i'll take it. ed rensi, pleasure to have you on the show. come back soon. >> i will. stuart: more varney after this. is not exactly a fortune. well, a 103 yeah, 103. well, let me ask you guys. how long did it take you two to save that? a long time. then it's a fortune. well, i'm sure you talk to people all the time who think $100k is just pocket change. right now we're just talking to you. i told you we had a fortune. yes, you did. getting closer to your investment goals starts with a conversation.
. stuart: california will defy president trump on auto emissions and fuel standards. they will keep the obama high standards against president trump who wants to get rid of them. this is a problem. >> this is a big problem. and you have to step back and look at it. there are 1.2 billion vehicles in the world. of those 1.2 bill not two
million have a plug. okay? the problem is you can't just simply say we're going to have these sky high rates just because technology's available. we couldn't produce enough electric cars today if we needed them, wanted them, or worse, even if the consumers wanted them, which they don't. . stuart: so what are we going to do? all right. be two standards? you can only buy a car in california if it meets the old high standards. everywhere else, you can buy a car with low standards, it's going to have to be. >> i don't think that's how it works out, frankly, because as i said you need lithium ion capability and we don't have the capacity to come anywhere near producing those numbers. stuart: so the californians will blame those wicked capitalists in detroit that are not producing the cars that will save the planet. >> look, it's very easy to say how awful oil is basically the enemy and the gas engine is the problem. but we introduced the cadillac converter in 1975. it didn't get to europe for at least a decade. it didn't get to the rest of the world for 30 years.
these new technologies, they evolve. they don't come in overnight. liz: yeah, the thing with this is in 1990, the federal government said, yes, you other states can follow california. so you have new york, massachusetts, dozens of states follow california auto emissions rules. >> which they're not going to be able to produce the cars and consumers aren't buying them. never confuse the public interest with what's interest to the public. stuart: good one. now, this is an unfortunate statistic here. there are 24 states in america where half of the births in those states were paid for by medicaid. there's the numbers there. ashley: check out new mexico. this is for the year 2015, as you say. 72% of the babies born in new mexico in 2015 were covered by medicaid. stuart: that's a very large -- ashley: that's a large number but then you have arkansas 67%, louisiana 65%, many of them in the upper 60% of all births in those states in the
year 2015 were paid for through taxpayers. stuart: your comment. >> yeah. one of the things that people have missed with all of the debate on obamacare is that the number of people who have now gotten on the medicaid role. it's approaching 75 million. 75million people are on medicaid. stuart: is that right? >> that's a gigantic number and the federal government has promised through obamacare to pay 89% of the cost to the states until they won't be able to. but what we've basically seen is the enormous expansion of medicaid. that's not something they're talking about in the health care bill, and they've got to. stuart: you can't sustain it. >> unsustainable. liz: unsustainable. stuart: you can't pay for it. >> i was chairman for a hospital and one of the frustrating things is we get a lot of charity health care weight but you always run out of money long before you run out of need. and that's the difficult thing. and we have not faced that as a nation. and expanding medicaid is great but who's going to pay for it? . stuart: same with medicare. that's buffeting all of the budget. liz: well, that's what bernie sanders is now saying. he wants single pair. he's moving on this now.
he's saying single pair via medicare for all. >> there's no doubt about the freedom caucus has undermind. they have basically created impetuous behind people who are arguing for single pair. that's what they've done. that's their legacy. stuart: dear lord. i don't know what to say about all of this. i really don't. so many things that are unsustainable, you've got them but you can't pay for them over the long-term. ashley: you have to do something. stuart: it's like stepping on the third rail of american politics if you say reform medicare, reform medicaid, you can't do any of that. you've got to. liz: it's so irritating. 20trillion debt we have and two-thirds of the household out of there get more from the government benefits than they pay into the system of taxes. it's upside down. ashley: that's what you need to do. stuart: europe doesn't work. half of europe is breakup. it's not a sustainable system. they're sinking without trace. and we don't want to be like that. last word to you. >> the closest thing to eternal life is another entitlement program and we're sinking without thinking how
we're going to pay for them and that, to me, is unfair to the american people. stuart: fair point. as we leave the show, that's our part of the show. our part of the network. we're down 67 points. again, that is not the kind of sell off a lot of us were expecting back at 9:30 eastern time this morning. time'sup for me. neil, sir, it's yours. neil: we're going to explore this more and the markets coming back a little bit is a sign that maybe they see these tax cuts coming to fruition after all. now, remember, the devil is always in the details and republicans are held down on getting these tax cuts through. but here lies the real problem. and this is what prompted the sell off today and a worldwide sell off that we as united states as an economic leader are losing our mojo here. now, i should pause even with this sell off, even with the better of 300-point sell off from donald trump's election, but here is where they're getting a little bit of concerned. they're wondering whether