Skip to main content

tv   Varney Company  FOX Business  August 7, 2017 9:00am-12:00pm EDT

9:00 am
mr. chaffetz as well. nikki haley doing a fabulous job at u.n. we have the women standing up at google not taking the the -- sandra: that was amazing story. that is it for us. "varney & company" i understand it. ashley webster sitting in for mr. stu varney. >> i am indeed. thank you very much, sandra. stuart by the way will be back tomorrow. he is cape coding as we like to say. here are the big stories of the day. the white house getting tough on leakers. deputy attorney general rod rose ten stein telling fox news that anyone who breaks the law leaking classified information, that includes white house staffers, members of congress, can and will be prosecuted. we'll get into that. president trump reportedly facing a threat from within the republican party "the new york times," who else, that republicans are planning a run against the president in 2020. some of the names being floated, governor john kasich, senators
9:01 am
tom cotton and ben sasse, "the times" naming vice president mike pence. the vice president calling that report, offensive. he has no plans to run against president trump. more doubt being cast on the president's tax cut plan, with the president, house, senate, they're taking a break, from what, i don't know. senator orrin hatch, said it would be "miraculous if the president can get it done. that is not good news. despite turmoil the rally chugs on. money and politics. "varney & company" starts right now. ♪ >> president talked about three brackets, 10%, 25%, and 35%. are these the rates that look good to sue?
9:02 am
is this what you would like to see? what would you like to see in terms of a individual tax rate for the majority of the country? >> i would like to see it very, very low, if we could get to those rates that would be miraculous and very beneficial for the country. ashley: miraculous, not the kind of word we're hoping to hear. that was gop senate tax reform leader orrin hatch that it would be miraculous if president trump could achieve lower tax brackets which he campaigned on. coming in, john lonski, moody's chief economist. based on what is coming out of washington, john, orrin hatch may have a point. >> he has a point. revenue fiscal stimulus is very hard to do. in order to get tax cuts in one area, you have to height taxes elsewhere. ashley: what does this do for the economy? certainly for corporations out there, even small business. how can they plan ahead if they don't know what the tax future
9:03 am
holds for them? >> they don't. they don't know how they can write off capital spending at this point in time. they delay capital spending until those matters are clarified, if they are ever clarified. fortunately we're still growing payrolls. capital spending is lagging behind. low rate of capital spending means low productivity growth. slow productivity growth means slow wage growth. ashley: we know the consumer is critical to the economy. where is the psyche of the consumer? more people are looking for jobs and finding them. you said, the kind of jobs are not high-paying jobs. >> they're not great. 63% of the jobs created in month of july were relatively low-paying industries, hospitality, health care and like. wages are growing 2 1/2% year-over-year. 4.3% unemployment rate. you should look at wage growth in excess of 3.5%. a lot of consumers are still struggling. they are hurting. they have no savings. they're basically a little bit
9:04 am
concerned about what lies ahead. they will not run out and spend. ashley: quick look at stock futures. we'll go higher again despite all turmoil we said, all action in d.c. 22,042 on the dow. john, can stocks keep up the pace? we're seeing more and more articles and opinions saying we're way ahead of ourselves. many stocks are doing great but many are not. >> last time stocks fell sharply, late 2015, early 2016, they were down 16% from their highs. we had an outright contraction of profits. in order for the market to get hit hard we have to have profits shrink yet again. do i think that will happen anytime soon? no. we should avoid a deep selloff. that doesn't tell us stocks will keep going higher by 10% or 11%. maybe we'll tread water, go slightly higher. ashley: not the big correction?
9:05 am
>> that big correction will require a deep slump by profits and i don't see that happening. liz: central banks around the world created estimated 16 trillion in liquidity. that money has to go somewhere. that tech stocks are treated like a safe haven like utilities the only place money can be had. that has to be parked somewhere. that is why there is momentum play. ashley: especially big tech stocks. all right. the economy is moving, john, not at a pace we like to see. a lot of that is what we see going on in d.c.? >> part of it is, yes. ashley: they're on break. how frustrating. stay there, john. now this, deputy attorney general rod rose 10 stein clear who the justice department is targeting as it clamps down on leaks in the administration. roll tape. >> look at the facts and circumstances. what were the potential harm caused by the leak, what were the circumstances. that is more important than who it is the leaker.
9:06 am
we identify somebody no matter what the position is, if they violate the law warrants prosecution we'll prosecute it. >> including white house officials and members of congress? >> including anybody who leaks. ashley: all rise, judge andrew napolitano good to see you on this monday. make it very clear, if you get the information and that information obviously is not to be shared repercussions are there. >> the key phrase what deputy attorney general rosenstein said, anybody that breaks the law. if i'm an official in the state department with a security clearance and i have in my hands or in my iphone or desktop matters that are classified, confidential, secret or top secret, i give it to you a journalist and you publish it here on fox business, you haven't broken the law no matter what is in the document, no matter the level of secrecy. ashley: you person has? >> the person passes it on would have broken the law.
9:07 am
the question arises can the government ask you from whom you got this material? ashley: when they made the announcement they were getting tough last week, judge, jeff sessions said, look we're coming after you, including issuing subpoenas to journalists. that upset a lot of people. >> rightly some that is what the barack obama justice department under former attorney general eric holder did to our colleague james rosen in which they subpoenaed materials from him. actual got a search warrant to listen to his phone calls in an effort to find out from whom he received information which was truthful, accurate but secret, which he was protected by the publication of it. look the supreme court made it very, very clear, in 1973, it has an about the law consistently since then, if the matter is of material public interest, it doesn't matter how the journalist got it, the journalist is privileged to publish it. the journalist is privileged to keep his or her sources secret. ashley: right.
9:08 am
next one for you, you brought some props for this issue. loretta lynch-bill clinton tarmac meeting, we talked about this on friday. >> yes. ashley: turns out documents did exist but the story faded into the headlines this weekend. you have some props. >> i usually don't bring props. ii want to people to see what it looks like. this is the blacked-out area of the emails -- ashley: that were provided. >> that were provided. emails from the justice department in the loretta lynch era concerning communications about -- liz: talking about golf and grandkids, why is it so heavily redacted? >> redacted by the trump justice department. that is so upsetting to me. jim comey was fired, according to president trump, for the failure to do his duty properly with respect to hillary clinton. part of that hillary clinton debacle was the meeting between loretta lynch and mrs. clinton's
9:09 am
husband, while mrs. clinton and her husband, the former president, were both under criminal investigation. ashley: yes. >> why for heavens sakes is the trump justice department blacking out. mails we're entitled to see. ashley: they're entitled to do that, wouldn't be in their interest. makes no sense they would black out -- >> shows you the government mentality. keep secrets from the public that we work for because we are entitled to know more than they do. i condemn that. donald trump condemns that. and jeff sessions should condemn it. and bureaucrats that did this nonsense shouldn't be doing it. ashley: all we got on emails, who it was from, who it was to and date. subject by. >> there is a lot of material in here in the public domain. transcripts of press conferences that loretta lynch had about the subject matter. ashley: more you learn, the more upset you get. judge, thank you very much. come back at 11. talk about my favorite subjects sanctuary cities.
9:10 am
makes me so mad. >> sounds like charles lawton, hunchback of notre dame. i'm in the cathedral, you can't prosecute me. ashley: the bells are tolling. judge, thank you very much. quick look at stock futures this morning. i'm smiling. we kick off in 20 minutes, modestly so. dow up 27. s&p and nasdaq slightly higher ahead of the opening bell. meat process every tyson reporting before the bell, results expected better than expected. here we go. chicago mayor rahm emanuel will file a lawsuit against the justice department over efforts to deny funding to sanctuary cities. makes me so mad. emac. liz: about $3 million worth federal grants police departments get for vehicles. this is drop in the buckket, 3 million, versus 10 billion-dollar overall budget for the city of chicago for this. this is political gambit by rahm
9:11 am
emanuel to get the minority vote in, ostensibly suing. basically the feds want 48-hour heads up if cities will release illegals. they want their fed agents to be in jails to talk to illegals. ashley: right. liz: the fed ral government says we will pull back on the grants if you don't apply. congress appropriates the money. big fight between chicago and sanctuary cities, federal government. has to do with congress appropriating money. can jeff sessions adjudicate it. congress has power of the purse. ashley: you don't play by fed rules, don't get fed money. end of story. we'll get into that. deep breath. amazon story of the day, filing for new patents, what else, for mobile drone work stations, train cars and big-rigs with a drone workshop, making it easier for amazon to bring drone delivery to rural parts of the country. we'll have that coming up.
9:12 am
oprah winfrey takes 10% stake on weight watchers, stock goes on a tear. oprah get as huge payday. we'll tell how you much she made on her investment. she is good, isn't she. question is it time for our president to start channeling reagan, sell those tax cuts directly to the american people? we'll talk with a former reagan cabinet member after this.
9:13 am
♪ it's a highly contagious disease that can be really serious... especially for my precious new grandchild. it's whooping cough. every family member, including those around new babies, should talk to their doctor or pharmacist about getting vaccinated.
9:14 am
9:15 am
>> only if the congress passes all of its major component does it have any real chance much success. this is absolutely essential if we are to provide incentives and make capital available for the increased productivity required to provide real permanent jobs for our people. and let us not forget, that the rest of the world is watching america carefully to see how we land at this critical moment.
9:16 am
ashley: he could deliver a speech, couldn't he? president reagan addressing the nation back in 1981. joining us bill bennett, former u.s. secretary of education under mr. reagan. thanks for joining us. >> you bet. ashley: president trump needs you could say take a page maybe from the great communicator's playbook to start selling taxes directly to the american people, would you not agree? >> yes, reagan can make a great speech and often did and often were spontaneous. donald trump can make a great speech. how did he win the presidency. he went around the country persuaded people to his point of view. he is more comfortable with the tax issue than the health care issue. neil: seedingly complex, i don't fathom it. i think the tax issue is much more familiar to him and i think probably easier to explain. he ought to hit the hustings and
9:17 am
he likes it, go out there and sell it. ashley: how would you compare the political environment today than when reagan was president? seems more toxic now? >> these are toxic and poisonous waters. i have never seen anything like it. we keep hearing this is not a fishing expedition after trump called it a hunting expedition. that is what it is with the lawyers mueller has hired. look, people want to discredit trump. they want him out. democrats want him out. a lot of the press wants him out and this is, this is a full-scale effort. so they will try to do anything they can to discredit him. but, i learned one thing in washington many years that i worked in washington, you're either on offense or you're on defense. be on offense. ashley: good advice. next one for you, bill, check out this headline from the "new york times," republicans shadow campaign for 2020 takes
9:18 am
shape as trump doubts grow. vice president pence rejected this report that he is gearing up for a 2020 run. is this just more attempts to undermine the administration, that there is problems from within and sharks are circling right now? >> yeah. you remember the browning poem, how do i love thee, let me count the ways. how do we despise you? how many ways we can discredit you. that there are office-seekers ready to take your place. i can't speak to ben sasse. tom cotton is ridiculous idea. i spend a fair amount of time from the pence people. i know them before. i visited with the vice president. this is bunk and this is nonsense. when i go to the vice president's office the question i'm asked most often is, are we doing enough? do you think we're doing enough to help the president? my answer has been yes, you are. ashley: i have to ask but the leaks because it's gone beyond ridiculous. jeff sessions speaking tough now
9:19 am
saying we're coming after you. have you seen anything like it? >> no, i have never seen anything like this kind of leakage, it is a torrent and a tidal wave. i disagree with the ex-steamable judge napolitano. the feeble schedules i learned at harvard law school, the press does not have absolute privilege. they do not have immunity. in general mattis orders secret orders to take out isis in raqqa, that is disclosed by report are and people get killed there should be prosecutions of those reporters. the press has privileges but they're not absolute privileges. look it starts at home. got to start in the white house and elsewhere but this is a terrible thing. this business with the president of mexico and the prime minister of australia, how can you do business, how can you have a candid conversation? ashley: i will take that up with the judge, mr. bill bennett. bill bennett, thank you so much
9:20 am
for joining us this morning. we appreciate it. >> check exchange between jim comey and trey gowdy a month ago. it was on this very topic. i will yield to that discussion. ashley: i will fill him in. thanks so much, bill. appreciate it. alphabet employee sends a memo to his colleagues, my, oh, my, blasting company's stance on diversity and gender. lots of on both sides argument. how alphabet's newly appointed diversity chief is responding next. where to get in... where to get out. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be.
9:21 am
9:22 am
hey, i'm the internet! ♪ i know a bunch of people who would love that. the internet loves what you're doing... ...so build a better website in under an hour with... ...gocentral from godaddy.
9:23 am
the internet is waiting. start for free today at godaddy. track your pack. set a curfew, or two. make dinner-time device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and control. change the way you wifi. xfinity. the future of awesome.
9:24 am
ashley: google condemning an engineer's anonymous manifesto blasting the company's stance on diversity. here is a quote from the memo. open and honest discussion with those disagree can show the blind spots help us grow, which can help us grow. google has blind spots about these biases and it is being silenced by the dominant ideology. here is the response from danielle brown, google's brand news vice president of diversity and governance, quite a title. i'm not going to link to it here as it is not a viewpoint that i or this company endorses, promotes or encourages. all right, this is caused quite a big stink, emac. your thoughts on it.
9:25 am
liz: the price president of engineering at google, i think he got it right. there is bias and stereotyping eninherrent in what that person wrote when he said that, suggest is that most women and men feel or think a certain way or the same way or they all think in a block. that women all think in a block or men all think in a block, conservatives agree with what he is saying. that in of itself is stereotyping. i think a lot of emotional energy wasted on this topic. i think, this is bad timing for good gel. they're underlabor department investigation for pay disparity systemic throughout google. it is bad timing for the company. ashley: john? >> not supposed to be practicing socialology at google. computer engineers should focus on software. ashley: on engineering. >> not worried about memos. ashley: to emac's point the timing could be pretty bad. interesting. caused a big stink. thanks, guys. look at futures for you. we're less than five minutes
9:26 am
from the opening. yes, we'll open up higher on this wet monday morning in the northeast. the dow up marginally as is the s&p and nasdaq. we'll be back with the opening bell right after this.
9:27 am
it's time to rethink what's possible. rethink the experience. rethink your allergy pills. flonase sensimist allergy relief uses unique mistpro technology and helps block 6 key inflammatory substances with a gentle mist. most allergy pills only block one. and 6 is greater than one. rethink your allergy relief. flonase sensimist. ♪
9:28 am
9:29 am
♪ ashley: the opening bell ringing
9:30 am
in just about 15 seconds from now. we're expecting a slight gain at the opening bell. the dow above 22,000. the market continues to chug on despite all the stalemate going on in washington, d.c. there are questions now, maybe there are inherent problems in the market. i don't buy it. some do. have a look as we kick it off. we're up modestly up 22,103, there you have it. it dips a little lower. [opening bell rings] check the s&p 500. that is showing slightly higher in the futures. that is exactly what we've got. call that earningsly flat. taking a look at nasdaq, up about a 10th of a percent at 6360. who is here. liz macdonald, keith fits, the keith fitz-gerald, john lonski ticking around kindly with us.
9:31 am
keith, beginning with you, stocks riding high, how long can this go on? that is the question i get asked the most. >> as long as illusion of growth continues, we follow ceos, not politicians, ash. ashley: that is very true. john, do you think it is an illusion? >> i don't think it is an illusion. i think profits are ever slowly are expanding. the i stated earlier the important point we avoid outright contraction of profits. if we do that there is no reason for the market to sell off. i don't think interest rates are he headed sharply higher anytime soon. ashley: gop senate tax reform leader orrin hatch, saying it would be quote, miraculous if president trump could achieve lower tax brackets for americans. that doesn't sound good. keith, do you agree with what mr. hatch has to say? >> i tell you what the honorable senator has been in there a long time. he is one of the very few i believe knows what he is talking about. for him to say miraculous, it gives me pause. ashley: yeah.
9:32 am
it is a bit, very disappointing to had to what we saw with health care reform. now this, john. >> it is disappointing. revenue neutral, fiscal stimulus appears to be an oxymoron. the only time you get real tax reform and tax cuts is the economy is in great danger or shrinking. ashley: and it is not. >> it is not happening. no sense of urgency. ashley: let's talk about the tesla model 3. it will cost you more than the advertised 35,000, the mainstream version. that price tag a little deceiving. liz: it is just shy of double that if you want it fully loaded. comes in at $62,000. ashley: ouch. liz: a 35 million new vehicle from tesla, elon musk wants a million cars a year produced by tesla. that means 5000 a week up from 1500 a week. he has to sell them. this is a play for tesla. they have to he will is the cars. they have to get to main street
9:33 am
america. they have to get to middle america. i don't know if middle america will pay for bmw type vehicle fully loaded at 62,000, when chevy volt gets more on a range of a charge. ashley: manuel windows? no ac? liz: that is the point. pay extra forethe color, different color other than black. pay extra if you want autopilot. ashley: wheels? liz: bigger wheels you have to pay extra for. engine, battery? i don't know. there is another item on tesla. keith is laughing. look, the stock by the way as we know is outperforming much bigger rival carmakers. keith is this really about tesla being a tech company and not a motor company? >> that's the thing. these fees are smoke screen. like airline, you can have a blanket, or pay five bucks for a clean one. those fees are supposed to go
9:34 am
away and every carmaker pads the bill. it is not a car company. it is an electric company. musk wants to control from the sun all the way to your garage. he has batteries, cars, solar panels. building a picture. the best part the market doesn't recognize that. what happens to utilities when they do? there will be consequences. ashley: that is a good point. check the big board for you. literally four minutes into a new trading week. here we go, we're up whopping 3, 4, 5 points. we're on upside but essentially flat. take a look at oil for you. oil falling down more than 1%, down to 4898. look at gold for you. nothing much with gold, down about 50 at 1253 per troy ounce. tyson posting better profits. that is good news for the stock up 4%. the big tech names we check every day. we like to keep a tab, they're the big drivers, aren't they.
9:35 am
there you go, facebook, amazon, microsoft, alphabet, all up a 10th to a quarter of a percent. office depot will start offering same day delivery in atlanta, los angeles, fort lauderdale, miami. everywhere else you're out of change or out of lock. office depot shares with a big unch, unchanged. varney regular david stockman raising a red flag on amazon. what? liz: he is saying they have not, amazon has not invented anything explosively new like the iphone or personal computer to to justify its rich multiple of 190 times earnings. ashley: really? liz: he saying 91% of sales comes from selling goods on the website. what he is missing here all of amazon's operating profit comes from the cloud. amazon is plowing a lot of its money back into the cloud. taking on rivals in a beg way. it is undoing price cut wars with competitors.
9:36 am
building out new data centers and new service personnel. stockman is really missing what is driving amazon's operating profit. without it would be $290 million in the red without the cloud. the cloud is driving amazon's profit. ashley: keith, let me bring you in on this. is mr. stockman missing the point? >> he is brilliant guy. he has been wrong about rates and wrong about markets and calling for calamity. liz is spot on. he is stuck in the gold standard mentality. he doesn't understand the new variables driving this company. the value hasn't been fully realized. it is due for a correction but so what. ashley: do you agree, john? >> reminder, amazon is more than a retailer. it is a high-tech company. on the other hand it is selling 250 times earnings. that tell me if any bad news and amazon starts to sink amazon will come down hard but only temporarily. ashley: it is spreading its
9:37 am
tentacles in many areas the broad impact is huge. >> costs are rising very sharply in order, when he gets into this -- liz: could get into cars, real estate, drug selling pharmacies. ashley: we'll live in amazon land at some point. we already are i think. apple reporting a cellular watch, dick tracy. that cuts out reliance on iphone. keith, will you buy one of these? >> no way. ashley: why? >> i want a watch that does nothing but tick. to me all this stuff is becoming intrusive. at some point i think market will revolt bense this. it is net nanny, 1984 george orwell whatever you tag you put on it. will it create profits? you bet it will. a lot of people want this stuff. i'm a ludite here. ashley: itch a massive big fat finger that will call five numbers at same time.
9:38 am
are you into this? >> no i'm not. i'm wondering as baby boom are who has to have reading glasses look at this little tiny watch? we want to have this a watch where you could talk to it and would go ahead and respond with whatever question you're asking. liz: actually you could have a lot of people walking into lampposts. [laughter]. sorry. ashley: we already do with people looking down. would you buy one emac. liz: no. ashley: not interested? liz: i like your watch. ashley: i'm a gadget kind of guy. i don't know. we'll wait and see. anyway, get this story, big pay day for oprah winfrey on weight watchers stock. up to $340 million. she did well on this. what do economists say about the newfound wealth? >> oprah is astute investor. knows what she is doing without any question. she is so sharp it is incredible. ashley: all she has to say she is into the stock, immediately gets the benefits of that. self-fulfilling.
9:39 am
liz: she is saying personally benefiting from weight watchers. look at this, she bought 6 million shares for 7 bucks a share. the now they're worth, awfully loaded with the options, 341 million. ashley: amazing. >> she spent 42 million to get that gain. 43 million. ashley: takes money to make money. boy, does she ever. nissan, this is interesting story. nissan u.s. workers voted against joining the united auto workers union. are you surprised by that, john? >> not at all. i think these workers realize the benefit of having flexibility, give nissan the flexibility to pay them what they're worth. don't have to pay union dues. they saw the uaw didn't exactly save the jobs of perhaps tens of thousand of workers in michigan and big three automakers. ashley: keith, how would that go down in seattle. >> i can't speak from seattle, speaking professor hand experience in japan, they tend to work with management, not against them.
9:40 am
i'm pleased to see this, what that says workers at nissan, among other manufacturers recognize value of being globally competitive and uaw i believe is not conducive to that. ashley: not paying dues for something they don't know what they're getting for it. john, thank you very much for sticking around. keith, thank you so much. appreciate it. check the big board. it has been essentially flat. we're up a massive eight points at 22,100. still pretty remarkable level. more violence in venezuela. the country's socialist government repelling a opposition attempt to take over a military base. we'll have details on that. good news in the fight against islamic tear tore. more signs that the president trump's strategy to beat isis is working. lieutenant colonel ralph peters on that and much more coming up after this. ♪ potsch: you each drive a ford pickup, right? (in unison) russ, leland, gary: yes.
9:41 am
gary: i have a ford f-150. michael: i've always been a ford guy. potsch: then i have a real treat for you today. michael: awesome. potsch: i'm going to show you a next generation pickup. michael: let's do this. potsch: this new truck now has a cornerstep built right into the bumper. gary: super cool. potsch: the bed is made of high-strength steel, which is less susceptible to punctures than aluminum. jim: aluminum is great for a lot of things, but maybe not the bed of a truck. potsch: and best of all, this new truck is actually- gary: (all laughing) oh my... potsch: the current chevy silverado. gary: i'm speechless. gary: this puts my ford truck to shame. james: i'll tell you, i might be a chevy guy now. (laughing)
9:42 am
9:43 am
ashley: we're 13 minutes into the session. we're on upside. up 10 points on the dow, 20,102. at least we're on the right side. netflix, get this, buying a comic book company. go to nicole petallides. nicole. >> netflix continuing to expand. this is expansion into the comic book world, buying miller world. netflix is down. why are they doing this? they will pick up all kinds of stories and characters everything from kings men, and logan. netflix look forward to everything, using these characters for sci-fi, superhero, horror, just to continue to expand on the franchise. you know that netflix has done so great here at home. 52 million subscribers here at home. more than 50 abroad here as
9:44 am
well. last 52 weeks up almost 86%. emmy nominations, got 7th emmy nomination for "house of cards." ashley: very impressive, nicole, appreciate it. venezuela managing to stop an anti-government uprising on a military base. emac you've been all over the story from day one. >> pre-dawn raid, two hours west of can ruckus at a fort. 10 got' way. two were killed. rest were apprehended. 10 got away, led by former captain of the national guard. this he took off with weapons, ammo and grenades. here is the thing. is this big enough to spark an overall military uprising? you see jubilation in the streets with people cheering this. maduro is saying they were apprehended. ashley: are they cheering the up rising? liz: they're chiefing the uprising. failure of socialism, ashley, see it right here.
9:45 am
the concern this is basically cuba. it has trained the military. cuba is heavily into venezuela. now we're looking a at nicaragua, bolivia, ecuador, colombia, there is concern these other countries could go both the way of cuba and venezuela. ashley: all in our backyard. lots to be worried about. emac, thank you very much. liz: sure. ashley: the united nations security council passing a resolution imposing new sanctions on north korea for its continued mess sill testing and violation of u.n. resolution. they do it all the time. come in colonel ralph peters. ralph, i'm surprised there are any sanctions left we can impose? >> there is very good news. that the u.n. security council voted 15-0 to impose tougher sanctions on north korea. the bad news it wouldn't make any difference whatsoever. china has mastered the art showing us enough leg to keep us
9:46 am
from imposing any kind of economic sanctions on them. you know, china literally gets away with trade murder because they keep dangling this possibility of help with north korea. now, china on this 15-0 vote, that sounds great but we didn't get the sanctions we wanted. we wanted tougher sanctions but for china to come on board they watered them down. there are two reasons for it. one is the macro reason. china regards north korea as a critically valuable ally in peace and war. the second micro region or economic reason is that china, china's steel industry is a great international weapon whether you consider the prices dumping or not. china doesn't have the right coal, soft coal. north korea, one of few things it has high quality anthracite coal that goes into coking furnaces for chinese steel. there are all the back stories here we're not paying attention to.
9:47 am
bottom line is this, if we expect china to stop north korea, ain't going to happen, brother. ashley: the question is, ralph, how can we even know the chinese are complying what they say they are? is there any way of doing that? >> coal is a bulk product. there are two-ways to get it into china. one is by ship, we can trace that. one is by coal trains going across the border we can track that even there is rub. you have finite number of satellites and analysts. if we're watching ports for coal, we're not watching missile complex with the same assets. i'm laughing about it this is deadly serious. the north korea problem is far from being resolved. and these fake palliative measures that china keeps feeding us, they just turn us into global economic suckers as well as strategic suckers. ashley: on that note let's move on to another topic, colonel. on friday, a senior state department official said under president trump gains against isis have quote, dramatically
9:48 am
accelerated. your reaction to that? >> that is absolutely true. ashley: yeah. >> it is very, that is good news. what the trump administration did, they kept the obama era strategic concept which we provide support, air power, logistics and intelligence but the locals do the grunt work, the fighting. the difference is president obama, president trump, much to his credit really unleashed military. under obama you virtually had to have white house approval to throw a hand grenade. trump delegated through general mattis delegated authority down to the battlefield commanders allowing them to make battlefield decisions. we're seeing enormous progress destroying isis as a force that can occupy, govern and control. now terrorism aspect isn't going away. we're making progress. the other reason is, once you start beating up the enemy, once the enemy starts losing as isis losing, if you keep up the
9:49 am
pressure which we are doing, the losses compound, morale plummets. harder to get recruits. things fall apart. so again while we're not ever going to get a perfectly clean solution to islamist terrorism, isis is losing big and yes, the trump administration deserves credit for that. >> good, we finished on an up the note. colonel ralph peters, as always, thank you so much. >> thank you. >> ashley: check the dow 30, a 2/3 green and 1/3 red. gives as you market just slightly higher. i'm losing my voice. checked up. very emotional for me. the market up about 10 points also. all rights up next, the guest who says amazon isn't behind the death of tradition retail. he says it is you, the consumer asphalt. we'll explain that next.
9:50 am
when you're close to the people you love, does psoriasis ever get in the way of a touching moment? if you have moderate to severe psoriasis, you can embrace the chance of completely clear skin with taltz. taltz is proven to give you a chance at completely clear skin. with taltz, up to 90% of patients had a significant improvement of their psoriasis plaques. in fact, 4 out of 10 even achieved completely clear skin. do not use if you are allergic to taltz. before starting you should be checked for tuberculosis. taltz may increase your risk of infections and lower your ability to fight them. tell your doctor if you are being treated for an infection or have symptoms. or if you have received a vaccine or plan to. inflammatory bowel disease can happen with taltz. including worsening of symptoms.
9:51 am
serious allergic reactions can occur. now's your chance at completely clear skin. just ask your doctor about taltz. so it only made sense to create a network that keeps up. introducing xfinity mobile. it combines america's largest, most reliable 4g lte with the most wifi hotspots nationwide. saving you money wherever you check your phone. yeah, even there. see how much you can save when you choose by the gig or unlimited. call, or go to xfinitymobile.com.
9:52 am
xfinity mobile. it's a new kind of network designed to save you money.
9:53 am
ashley: dow component united technologies, the u.s. maker of otis elevators as you've seen them everywhere, carrier air conditioners, submitted an offer to require aviation technology firm rockwell collins. united technologies down on the news.
9:54 am
rockwell up 4%. check shares of caterpillar hitting another all-time high, just moments ago up .4 of a percent at 114.83. that is c-a-t, cat. our next guest says the retail ice age isn't entirely amazon's fault. he is with investment management associates. thank you so much for joining us. we talk about the retail ice age all the time and we look at amazon as one of those, you know, major causes. make your case. >> well i think it is very complex problem where amazon is just one of the many variables. if you think about it, the u.s. retail sells $5.5 trillion. online sales, $350 billion of that, and amazon is about 1/3 of that. if you look at our retail footprint it has been developed basically in the '90s and mid 2,000's, when consumers were borrowing money to buy goods. since then consumers are
9:55 am
deleveraging. so that is issue number one. look back 10 years ago we were spending $10 billion on cell phones. today, 10 years ago we did not even have smartphones yet. today, 10 years later we spend $200 billion a year on our smartphones. that is the money diverted away from retail spending towards, from traditional retail spending. so it's a brand new industry. look at our wireless bills. it is up about 150 -- wireless bills are up $150 billion last 10 years. between this too, $350 billion diverted from retail sales. ashley: but, vitale, would you not agree brick-and-mortar stores are very slow to react the amount of business being done online and in some cases too late? >> i think they have been slow because they have been looking backwards. if you look at, if you look at our retail food print, we have
9:56 am
four to five times more retail square footage per person than in europe. so we just have too many stores and the business is changing and to make things worse, think about this, 10, 20 years ago, we had such a thing as casual friday. ashley: right. >> employers through us a ball to allow jones to work. today, ever day is casual friday. so our preferences as consumers have changed. and so clothing is not as important for us but still very, very slow to respond to that. ashley: sorry so short. interesting points. thank you so much for joining us. it is casual friday in the studio every day. believe me, take my word for it. isn't that right, sarge? dow hitting all-time high even as d.c. agenda stalls within washington. this is profits versus politics. second hour of "varney" next. so let me ask you this...
9:57 am
how does diabetes affect your heart? it doesn't, does it? actually, it does. type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. and with heart disease, your risk is even higher. you didn't know that. no. yeah. but, wait, there's good news for adults who have type 2 diabetes and heart disease. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease and lower your a1c. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. ra
9:58 am
bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. so now that you know all that, what do you think? that it's time to think about jardiance. ask your doctor about jardiance. and get to the heart of what matters.
9:59 am
10:00 am
ashley: i'm ashley webster in for stuart, he'll be back tomorrow, and here are the big stories for the 10 a.m. hour on the east coast. attention white house colleague r leakers, the department of justice is ready to prosecute, the deputy attorney general telling fox he will go after anyone breaking the law. the is on vacation and the house and senate are also off leaving a lot of work to be done. top republican senator orrin hatch said getting the trump administrations' tax plan through congress would be, quote, miraculous. doesn't sound good, does it? remember, when congress does return this september, there are only 12 days when the house and senate are in session at the same time. and according to "the new york times," there's at least four republicans interested in president trump's job in 2020, calling it a showdown campaign. i would say a shadow campaign, at least one person on that list, vice president mike pence, strongly denying the report. hour two of "varney," lots to talk about, starts right now. ♪ ♪
10:01 am
ashley: all right. the market has been open for all of 30 minutes and 54 seconds. let's take a look for you, up 11 points at 22,103, i still blink twice when i see that level on the dow. some news, netflix buying a comic book company, looks like an original content play. netflix up just a third of a percent. cbs and at and t reaching an agreement that will put cbs' on directv now which is the live tv streaming service. take a look at the shares, at&t up about half a percent but cbs and direct tv down on that news. vice president mike pence is fighting back against a new york times article that claims he and three other republicans are considering running against president trump in 2020. vice president pence saying, quote: today's article in the new york times is disgraceful and offensive to me, my family
10:02 am
and our entire team. the allegations in this article are categorically false and represent just the very latest attempt by the media to divide this administration. joining us now, jordan faber, white house correspondent at "the hill." 9 your reaction to this news that came out over the weekend. >> well, look, president trump is someone who demands loyalty from people on his team, and i think that vice president pence knows that, and that's why he put out such a strongly-worded statement the other day pushing back on the story. but i don't think it's going to do anything to quell the speculation that someone in the republican party, maybe mike pence, is preparing themselves to run in 2020 in the event that president trump doesn't. there's so much chaos and uncertainty surrounding this presidency, his approval ratings are below 40%, and and that's only going to give other republicans incentive to keep their options open over the next few years. ashley: it's hard when you have people in your own party who are even behind the scenes actively
10:03 am
working against you and certainly not getting onboard with the agenda. it's very difficult for the president to get anything done under those circumstances. >> absolutely. and, look, it speaks to this divide that still exists in the republican party. president trump's victory in the republican primary last year was something akin to a hostile takeover to. there's still a cadre of traditional, you know, conservatives in the party who don't, who disagree with him on policy, and they also stylistically don't see eye to eye. ashley: right. >> there's still that conflict there, and they haven't bridged that. ashley: new chief of staff john kelly is working to bring order and discipline to the white house, we are told. is this going to work? we understand he may even vet some of the president's tweets. >> that's right, ashley. there's some early signs that he's succeeding. [laughter] you know, he's putting in a process where the door to the oval office is now closed, aides can't run in and out and drop news article on the president's desk anymore. we saw the president get up early, he's watching television, he's tweeting about things he's
10:04 am
seeing on cmn. so -- cnn. so there are limits to what general kelly can do to control the president and the process of the white house. ashley: but a much-needed, perhaps, person in charge who's really trying to get some order to. >> yeah. , and look, i think the differences between general kelly and reince priebus, his predecessor, is that the president really respects general kelly. i think he respects people, you know, former military brass, respects people who have had success in the business world, and general kelly's a peer of his. he might be more willing to listen to the advice and the new policies that general kelly wants to put in place. ashley: we'll see what happens, as they say. jordan fabian, thank you so much for joining us. really appreciate it. >> thank you. ashley: new e-mails show reporters at "the washington post" and "the new york times" weren't exactly interested in covering that infamous tarmac meeting between former attorney general loretta lynch and president bill clinton. joining us now is a media reporter at the hill. this is interesting, because when this story broke, joe, it
10:05 am
showed in parts at least some of the e-mails that were released that both "the washington post" and the times were essentially trying to push this story aside, bury it, if you like. >> yes. one reporter said, and i quote, he was being pressed into service. ashley: he didn't want to do it. >> exactly. a story like that with an attorney general who's investigating the spouse of a former president -- ashley: big story. >> that's a huge story, and it wasn't on anybody's schedule. this was only discovered because a local reporter found out that they were meeting. then afterwards when it is discovered that the meeting happened, they're talking about golf and grandkids -- [laughter] which, you know, obviously, no one bias. so, yeah, the fact that he was going to write it just to put it to rest, and his editors or were pushing him to cover it, that's ridiculous. this is bias in broad daylight. ashley: yeah. and we didn't even get any reaction this weekend that i could tell saying exactly what you just said, there's no outrage. >> let's play a game. ashley: all right. >> let's see if this story would
10:06 am
have been covered, if you take out the name loretta lynch and replace it with robert mueller. and replace bill clinton with donald trump jr., jared kushner or ivanka trump -- ashley: we'd be hearing about nothing else. that's for sure. another one for you, the latest cover of "newsweek" showing president trump sitting in a chair watching tv, eating food. the cover reads, lazy boy, your thoughts. i mean, come on. >> this implies that, a, the presidency is a failure, right? ashley: right. >> you do business news, so at last check gdp at 2.6%, under president obama -- right. market's way up, unemployment at a 17-year low, and even if you look at isis, that caliphate is being diminished and destroyed. you could point to a lot of things the president has accomplished particularly from an economic perspective. this is also bias in broad daylight as well. this is a lazy cover. to talk about the president's work ethic, right? you want to criticize him on health care, you want to
10:07 am
criticize him on not moving fast enough on tax reform, that's all fair game. when you start going after the president's work ethic, we saw during the campaign this guy works. you could go after him on a lot of things, but his work ethic is not one of them. ashley: he's remarkable. and he's done a lot. and he's supposed to be on vacation now. he'll be the nurse to tell you -- the first to tell you, really? the white house is a dump, we're getting it fixed up. >> right. he just spoke with the south korean -- ashley: right. >> -- prime minister or president just yesterday to talk about that u.n. resolution passed by nikki haley 15-0. that sounds to me like things are getting done while he's on vacation. ashley: let me ask you about this report that there are republicans that are not happy with the trump administration working, trying to feel out their potential candidacy for 2020. my sense is while these lawmakers are back at home talking to their constituents, they're the ones that are getting the heat, not donald trump. because they're the ones who are not working with the administration and not doing
10:08 am
what it takes to get health care done, tax reform, deregulation, you name it. >> yeah. trump says he wants to move on all of these things. ashley: yes. >> if health care passed, he said he was ready to sign it. you see this during these rallies in west virginia and ohio that the crowds are still just overwhelming. i think the base is still with him and they understand this is a congress problem, not so much a trump problem, but the president ultimately does bear the responsibility of being the leader of the party and the person that should be uniting -- ashley: yeah. i just spent a week in florida. my god, i got an earful if from a lot of people saying, you know, keep flying the flag, don't give up. he's fighting his own party, he's fighting everyone in washington, d.c., and they are behind him 100%. you get out of the beltway and those other elitist strongholds around this country and go into middle america or wherever you want to go, his base of support -- to your point -- is still remarkably high even when we read "the new york times" and is washington post, we believe this country's in disarray and
10:09 am
he's a terrible leader and, you know, we're all going to hell in a handbasket. >> it sounds familiar. during the campaign we heard that was a campaign in disarray, that he had no chance of winning. and, obviously, that didn't happen because in those states that you mentioned, in pennsylvania, wisconsin, michigan, ohio, that decided the election. how many stories do you see of reporters actually going to those places -- ashley: none. >> -- and getting the pulse of the american people. we were it would they were going to do that that. again, this is the ivory towers dictating news that does not relate to -- ashley: so true. the left has not used a damned thing -- excuse my language, i'm getting fired up -- from the election. >> what's that old saying about mistakes and not learning from them, doomed to repeat them? that appears to be happening. ashley: thank you so much for joining us. i'll calm down. city of chicago -- no, i'm not going to calm down. get this. planning to file a lawsuit against the trump administration over its sanctuary city policy. e. mac, department of justice is already firing back.
10:10 am
>> yeah, that's right. the federal government, the white house, rather, saying we will withhold more than $3 million worth of grants to chicago if chicago does not comply with the trump administration's -- and the doj's sanctuary city policy. so rahm emanuel's administration is suing. here's the justice department firing back. last year more chicago wans were murdered than in new york city and los angeles combined -- ashley: that's incredible. >> yes. just saying it's especially tragic the mayor of chicagoing is less concerned with that staggering figure than he is spending time and taxpayer money protecting criminal illegal immigrants and putting chicago's law enforcement at risk. ashley: i also think it encourages human trafficking. if you hold out a carrot, if you can reach us, we'll protect you. we saw tragically those immigrants piled in the back of a big rig left in the sun with no air in a big rig in texas. i think they're responsible for this. they're encouraging people to break the law. >> yeah. ashley: now they want federal
10:11 am
money for not carrying out federal law. >> that's -- the justice department would say exactly what you're saying. it's about three million in grants to buy things like police cars. ashley: right. >> is it a drop in the bucket versus the $10 billion overall chicago budget? yeah. but this city is in insolvent, the property taxes are going up, and the murders and homicides are still at near record levels. ashley: deep breath. >> are you fired up? ashley: it's an issue that just really angers me. e. mac, thank you very much. >> sure. ashley: coming up, it's the ipo that could bring in fat returns, haha. fat burger looking to go public, its ceo will join us next. and the united states could soon be facing a shortage of primary care doctors. how that could impact you. try getting an appointment. dr. siegel joins us later this hour. and patriots' quarterback tom brady just celebrating his 40th birthday last week, he says he's got five more years left in him. who could doubt him?
10:12 am
jason whitlock will give us his take on that. you're watching the second hour of "varney & company." ♪ ♪ (microphone feedback) listen up, heart disease. you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies and data without insights. and fragmented care- stop getting in the way of patient recovery and pay attention. every single one of you is on our list. for those who won't rest until the world is healthier, neither will we. optum. how well gets done.
10:13 am
10:14 am
10:15 am
ashley: all right. let's take a look at that big board as we kick off the new trading week. okay, we're up, up 10 points at 22,103 on the dow can. some stocks to a talk about, office depot says it will start delivering same-day delivery, good news if you live in atlanta, los angeles, fort lauderdale or miami, office depot shares up about 1.5% at $6 and change. new york mayor bill de blasio wants to tax the city's wealthiest residents this time in order to repair the subway system. e. mac?
10:16 am
the details. >> well, yeah. there's pushback because now critics are saying this is de blasio's answer to everything, just tax the rich. this is a decrepit new york city subway system that has been engulfed in problems right now this year. ashley: right. >> massive delays, accidents, some people falling on the tracks and getting killed. he wants to raise taxes on individuals earning more than a million a year and also for couples as well. you know, so is this the answer, new cash to fix a decrepit subway system and transit system in new york city? cuomo, the governor, oversees the mta. the mta itself has been mired in controversy as well for being slow to repair and fights with unions. ashley: to you take the subway much? >> yes, i do. ashley: is it that bad? >> yes. ashley: all right. it's always the rich that have to come to the rescue with de blasio. all right, the los angeles-based chain fat burger
10:17 am
looking to go public, and the company's ceo joins us now to talk about it. andrew, thanks for joining us. when are you planning to go public? >> well, right now we're just testing the waters which means we can't take orders, we're waiting for the sec, we're on file with the sec, so that'll be a few weeks,ing and hen we'll be ready to go. ashley: how's business? >> our sales are up significantly. we're double digit up in california right now, like 13%. i attribute a lot of that to the delivery business. it's just been racing to the sky for us. ashley: so a lot has been made in the fast food industry, andrew, of automation, essentially taking away workers' jobs and in part in reaction to this, you know, movement in this country for $15 minimum wage. what are you thoughts on all of that? >> well, certainly automation is something that moves business forward. we've seen it increase our sales, and it really hasn't decreased our labor at all. we've reallocated labor, so we
10:18 am
have more orders. maybe less people taking orders, but more people cooking the food. now, if you talk about labor costs, there you have a real issue, right? everyone must have known what they were getting into when they voted in favor of their politicians wanting minimum wage increase, and everyone wants their employees to make more money. but in the restaurant industry, your labor cost is 30% and you're going to increase it from $10 to $15, a 50% increase, now you're going up to 45%. so consumers are going to have a price increase because a restaurant operator can't afford that bottom line. ashley: how many stores do you have? >> just about 200. we're also all over the world. we're in 32 countries, so we really see it everywhere. different -- you know, in the u.s. it's a real issue for us. ashley: and what do you plan to do with the money whence you do go public? is this all part of just expanding the product? >> well, we've become a global franchise company. our company will trade under the
10:19 am
symbol fat brands -- [laughter] and we own a second brand called buffaloes, and we're in the middle of a third acquisition, so we plan to franchise and buy more brands to distribute to our franchisees. it's an offering which allows consumers of all sizes to be able to invest and buy stock. ashley: how do you sell fat to the health-conscious millennial, among others? >> fat stands for fresh, i authentic, tasty, and is all of our brands need to meet those standards. [laughter] ashley: veried good. so the word fat in burger does not, in your mind, turn some people off who want to eat healthy. >> no, it's a very lean burger. we've been around for 70 years serving the same burger. it's less than 20% fat, we even have a skinny burger which doesn't have a bun and a is about 300 calories. there's a lot of options for healthy eaters. ashley: you were once convicted
10:20 am
after filing a false tax return, do you worry about any of that impacting the ipo filing? >> it was a long time ago, i served the sentence, i paid the fine, this is a different company. it's been years and years, that was 20 years ago, and i'm excited to bring this business to all of our fans around the world who can invest and be part of it. ashley: we wish you the best of luck and thanks for talking with us today, ceo of fat burger under the symbol f-a-t. appropriate. u.s. automakers reporting sluggish sales last month, especially gm, so is this just the time you should be buying a car? is our jeff flock investigates next.
10:21 am
♪ ♪ i'm... i'm so in love with you. ♪ ♪ whatever you want to do... ♪ ...is alright with me. ♪ ooo baby let's... ♪ ...let's stay together...
10:22 am
rethink your allergy pills. flonase sensimist allergy relief helps block 6 key inflammatory substances with a gentle mist. most allergy pills only block one. and 6 is greater than one. flonase sensimist. ♪ or a little internet machine?
10:23 am
[ phone ringing ] hi mom. it makes you wonder... shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. [ laughing ] so all you pay for is data. see how much you can save. choose by the gig or unlimited. call or go to xfinitymobile.com introducing xfinity mobile. a new kind of network designed to save you money. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance.
10:24 am
ashley: dow component united technologies, elevators and carrier air conditioners among others, have submitted an offer to buy aviation technology firm rockwell collins, up nicely as you can imagine, united technologies down 2%. and the dow, by the way, isn't the only major stock index in record territory today the, the s&p 500 currently on track for a record close. any gains these days is another record, up 51 points on the s&p. u.s. automakers are struggling with a big downturn in car sales. gm, in order and other automakers all reporting lower sales last month. jeff flock is live in illinois. jeff, i guess the question is, is this a good time to buy a car? >> reporter: well, the specifically to buy a car, maybe it is. i'm in the showroom of woody buick gmc here outside chicago.
10:25 am
i've got an acadia, a terrain, another suv, that's a yukon denali back there, over to the right a smaller buick envision. they're all suvs in this showroom, this is one car. that is to say, passenger car sedan. ask that's what's killing -- and that's what's killing it. sales of small cars. take a look at these numbers. chevy sonic last month, down 47%. chevy spark down 81%. this buick lacrosse that we have got in the showroom, down 56%. i want to know something about cars, i come to woody. people don't want to buy cars. they want to buy vehicles, they want to buy suvs. >> yeah. with the gas where it is and the safety and the room, it's just must much more appealing than the cost value of the sedans. there were so many that were leased three years ago when people were in such a low lease payment, now the car has slowed down in sales, therefore, the residual value's much higher and just hard to put a good deal together on a sedan. >> reporter: speaking of
10:26 am
deals, incentives are up though. we looked at the numbers, average incentive on a vehicle now $3600, up 5% last month. is this killing your profit? >> oh, it's definitely not helping. our day supply of inventory is a little higher hand it needs to be, and the way you're going to get it down is we have to sell them for less x the manufacturer's going to have to pony up. the markup's somewhere. >> reporter: yeah. you look at the number of days on the lot, average now 76 days on the lot. ask that's the highest it's been since 2009. are you worried we're getting a bubble here? >> i'm not that worried that we always tend to to survive and get these cars out of here, but my supply is much higher than that. i'm somewhere around 110 days, and i am uncomfortable with that. >> reporter: good place, time to buy a car. he's got too many cars, woody is ready to make a deal. come to suburban chicago. i leave you with a buick lacrosse. you can get a deal on a lacrosse, ashley are.
10:27 am
ashley: in the showroom, remarkable. there'll be more "or varney" right after this. don't go away. ♪ ♪ ♪ ♪ ♪ so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience.
10:28 am
which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver.
10:29 am
10:30 am
♪ ♪ ashley: a little bit of beatles on this monday morning. let's take a look at the big board, and what a rainy, rotten monday morning it is in the northeast. and the markets kind of like the weather, blah, but holding steady on the dow, essentially flat. big tech names, we like to the check them every day. mostly on the upside, microsoft moving lower, but for the most part, the big tech stocks again grinding higher. our next guest says it's crucial for congress to get tax reform done. amen. in an op-ed in "the wall street
10:31 am
journal," michael solan says, quote, economic growth faded as president obama raised taxes and smothererred the economy with unprecedented regulatory burdens we reverse those policies, could we not bring back the reagan growth rates america enjoyed in the 1980s? yes. evidence suggests that answer is, indeed, yes. joining us now is michael solan, i couldn't agree with you more, but i'm going to let you make your case anyway. >> well, thank you. [laughter] we're having an interesting debate here about washington, how to fix our economy, and it's glad we can have this debate. and the good news, we can go back and look at history to get some sort of feel for how this is all going to play out. and one of the wonderful things about looking at history is when people go back, they can see what actually occurred, they'll get the confidence we can move forward. so a number of critics of the tax reform that the republicans are proposing said it's going to
10:32 am
repeat the reagan tax cut and that it had an adverse effect on the deficit and revenues. we went back and looked at the facts, and what we saw was a total misunderstanding of what was going on at the time when reagan took office. and at that time inflation was ravaging the american economy, it was hitting families and taxpayers with these massive taxes through something called bracket creep. back then there were, like, 15 tax brackets,ing and what happens is as you tried to keep up with inflation, you kept moving up in these higher tax brackets. so as a result, people were getting nailed with increased taxes, and this was middle class families, and it was just creating massive flow of revenues to the government. in fact, it was creating so much revenue flows that service essentially going to -- essentially going to trigger a recession. the cbo warned if you didn't do something about these massive revenue growths, it was going to constitute a significant fiscal
10:33 am
drag, which is the understatement of the year. ashley: right. >> they suggested that the way this inflation was working, that it was going to increase revenues by 2.7% of gdp. now, what does that mean? well, many today's term that sort of tax hike from inflation alone was going to add about $500 billion of tax hikes in one year. now, $500 billion compared to the obama tax hike of 2013, that was just, like, about $65 billion a year. so you understand the tremendous burden this was placing on the american economy. and, of course, congress -- the cbo was right. they were right. [laughter] they said by 1982 that this would constitute a significant fiscal drag, and so the economy that was in recession in 1980 fell into recession again in 1982 because we did not lift this significant fiscal drag -- ashley: but, michael, i hate to interrupt, but we know that tax reform is good. it puts money in the pockets of the consumer, it allows businesses to expand, it just allows the economy as a whole to grow. >> yes.
10:34 am
ashley: the problem is getting congress to agree. now, senator orrin hatch says he's doubtful, says, in fact, it would be a miracle if we get any tax reform done. roll the tape on that. >> the president has talked about three brackets, 10%, 25% and 35%. are these the rates that look good to you? is this what you'd like to seesome what would you like to see in terms of an individual tax rate percent majority of the country? >> well, i'd like to see it very, very low. if we could get to those rates, that would be miraculous are, and it would be very beneficial for the country. ashley: you know what, michael? that doesn't sound very optimistic to me. your reaction. >> actually, i think that orrin is -- excuse me, chairman hatch is trying to explain exactly what the challenges are. and a great tax reform is not going to be easy, but it is necessary and it is powerful. look, here's the challenge for orrin hatch. if you want to get to a 25% tax rate, that's $1.1 trillion of offsets in status scoring.
10:35 am
if you want a 20% rate, that's approximately $1.5 trillion, and if you want to get it down to 15, that's $2 trillion. you have the individual rates, you want to fix the international taxes, this is a lot of money. but i think it goes back to the fundamental question here, are we going to do a tax reduction here with a few offsets or are we going to do comprehensive tax reform? i think senator hatch is correct that if you want the big bang and all the benefits that can flow from fixing this tax reform, you have to do something that's very aggressive, you have to go after base broadenners in addition to the economic growth. but it'll be very powerful medicine that america needs right now. we're looking at 1.8% economic growth for the next ten years -- ashley: not good enough. exactly right. i want the big bang. i want the full blown tax reform done, signed, sealed, delivered and i hang onto that hope. michael solon, thank you so much. a lot of facts, figures and information. we appreciate it. >> thank you. so glad to be here. take care.
10:36 am
ashley: thank you. now this, the united states could soon be facing a shortage of primary care physicians. a new report claims there could be a shortage of 35,000 doctors by 2025. that's not far away. joining us now, dr. marc siegel. doc, why are we seeing such a shortage, and it's going to get worse apparently in the coming years. >> well, there's several reasons for it. number one is probably baby boomers. 80% of the reason here is that people are getting older. 75,000 -- 75 million baby boomers, many of them reaching medicare age now. and as you get older, you have more health problems, you need more services. plus, here's the good news, new technology. we have more to offer our aging population. we have more tricks, we have more arrows in our quiver, more medical treatments. the problem is who's going to administer them. i'm tell you what we are doing -- i'll tell you what we are doing, we're wringing on more nurse practitioners, they're up 30% -- ashley: is that a good thing. >> >> according to the health services resource
10:37 am
administration. pas, physicians' assistants are up -- is that a good thing? not entirely. ashley: all right. >> it's better than nothing, but they don't have the same training physicians do, and i just told you we're talking high-tech solutions. so to get to the point where i can administer a high-tech solution, i've got to do specialty training. so the people we're bringing on to the work force don't have that training. ashley: is there also a tendency for people getting into be the medical field wanting to specializesome it pays better, the gps are the ones who refer patients to them. is it a problem with actually just being, you know, a gp? >> that's a hugely important problem. theoretically, when obamacare came in, they said lets get more gatekeepers, more primary care physicians like you, dr. siegel. but the truth is the big treatments are coming from specialists, and doctors don't want to be that primary care doctor. they don't want to be like me sitting in front of that computer all day long.
10:38 am
they don't want to be the doctor that has to give the referral, that has to find the specialist. they'd rather be the guy that can do that hip replacement, treat that -- use that botox, you know, that can do all the newfangledded things. that's the excitement in med kin. ashley: i understand that medical schools are putting those that want to become primary care physicians, they're putting them to the top of the list as far as admissions go because of the shortage. >> somewhat true, ashley. there's 17 new medical schools over the past decade, 17, and those 17 schools are focusing on primary care doctors. ashley: okay. >> but the truth is no matter what medical schools do -- and there's not enough seats for medical students. again, we expanded insurance. we added more cars to the train, but who's driving? we don't got enough drivers. so even if medical school says we want you to be primary care, that's not where the bells and whistles come. you get out to the work force and they say, look, 150,000 a year. you, surgeon? much more. ashley: right. >> and i'm not saying we don't
10:39 am
have a shortage in specialists too, we also do. but your point is right, doctors are still choosing specialization much more, and that's a problem. ashley: it is. interesting topic. dr. marc siegel, thank you. appreciate it. >> good to see you, ashley. ashley: authorities in venezuela say they stopped an attack on a military base in the country and, e. mac, they claim the soldiers and armed civilians are behind this attack. >> yeah. led by the former captain of the national guard. ashley, it started around 4:30 a.m. predawn on sunday. twenty individuals, many former military members -- ashley: just 20. >> yeah. ten got away, two were killed, the rest were apprehended, one was injured. it gave hope to the people on the streets of venezuela that members of the military are standing up against maduro. it was fleeting, he squashed the raid. ashley: could this be the first of more to come? >> it's a good question because remember that police officer
10:40 am
also shot grenades at -- you know, a couple months ago. ashley: yes. >> maduro has basically kicked out louisa ortega, the chief prosecutor, and is putting her on trial. so is there any hope for the opposition? ashley: right. >> it's slim, few and far between. they're waiting for help from the international community. ashley: all right. and you're on it every step of the way. >> yes, every day. ashley: check this out, this is boston dynamics atlas robot taking a bit of a tumble. there he is. that still freaks me out, these things. oh, he's down! the company was showing off its robot at a science and technology expo, the robot goes and walks off the stage, caught its foot on a light, falls right new the curtain, and there it goes. [laughter] he needs a doctor. needs a mechanic. all right, coming up, miami dolphins needed a quarterback in a pinch, signed jay cutler. the first game of the season a month away, is there any hope
10:41 am
colin kaepernick will get a job? not so far. fox sports host jason whitlock on that next. ♪ ♪ mike and i are both veterans, both served in the navy. i do outrank my husband, not just being in the military, but at home. she thinks she's the boss. she only had me by one grade. we bought our first home together in 2010. his family had used another insurance product but i was like well i've had usaa for a while, why don't we call and check the rates? it was an instant savings and i should've changed a long time ago. there's no point in looking elsewhere really. we're the tenneys and we're usaa members for life. usaa. get your insurance quote today.
10:42 am
♪ ♪ >> last hour ashley spoke with
10:43 am
the former u.s. secretary of education, bill bennett. ashley asked him howed today's political environment compares to when ronald reagan was president. let's roll tape. >> these are toxic and poisonous waters. i've never seen anything like it. i mean, you know, we keep hearing this is not a fishing expedition after trump. call it a hunting expedition, i think that's what it is with the lawyers that mueller has hired. look, people want to discredit trump, they want him out. democrats want him out, a lot of the press wants him out, and this is, this is a full scale effort. so they will try to do anything they can to discredit him. but i learned one thing in washington in the many years i worked in washington, you're either on offense or you're on defense. be on offense. ♪ ♪
10:44 am
♪ whoa that's amazing... hey, i'm the internet! i know a bunch of people who would love that.
10:45 am
the internet loves what you're doing... ...so build a better website in under an hour with... ...gocentral from godaddy. type in your idea. select from designs tailored just for you and publish your site with just a few clicks-even from your... ...mobile phone. the internet is waiting start for free today at godaddy. ashley: caterpillar, cat, trading at the highest in more than five years, up just a quarter of a percent but enough to hit that record, 114.62, that is caterpillar. now to the nfl, the miami dolphins signing quarterback jay cutler to a one-year, $10 million deal. he was supposed to be an analyst for fox, but colin kaepernick remains unsigned. joining us now, jason whitlock host of "speak for yourself" on fox sports 1. jason, is the cutler deal a sign that no team is even going to
10:46 am
look at a capper -- kaepernick? >> i think it's a sign that no team wants to sign kaepernick. they may be forced to later in the year if they have serious, serious injuries at the quarterback position. but if i were any team, he's so toxic, he's so illogical in his approach, he doesn't seem really committed to the game of football, he seems more interested this activism. and at the quarterback position, a coach wants you to be all in. and i think people are being very simplistic in saying, oh, he took a knee and, therefore, the nfl has blackballed him. there were eight other guys that protested the national anthem, either taking a knee, raising a black fist. ashley: right. >> they're all still in the nfl. it's this guy -- ashley: what about kaepernick's performance? is he that good? >> he's certainly good enough to be a backup quarterback in the national football league and a starter on bad teem teams like he was a year ago.
10:47 am
yes, he is good enough. is he a guy that can still take you to a super bowl? i don't think so. ashley: all right. another one for you. during a news conference friday, tom brady refused to say whether he had a concussion last season, but his wife, giselle, said oh, yeah, hubby had one. should he reveal concussion, if he did? >> probably should if i were running the national football league, but i think tom brady's a symbol of what the mentality of a lot of nfl players are. it's a warrior sport. it's a sport where, you know, you play through injuries or pains that you don't in other sports and you don't in the rest of your life. but it's the warrior mentality of football players. i think, you know, a lot of people want the nfl to be perfectly safe. it can't be. it's no different than boxing, it's no different than hockey, it's no different than any contact sport. there's a lot of risks to it. these guys are getting paid a
10:48 am
lot of money, and they're willing to make the sacrifice. ashley: brady turned 40 last week, we mark my -- remarkably. he says he can play another five years. he's still got the brain, he's got a good release. even if he's not as quick, he probably still could be effective for five years. what do you think? >> ashley, you left off the most important thing -- ashley: all right. >> he has a wife who wants him to retire who's worth more money than he is. [laughter] like i say all the time, she's got more than half the money, and she's got all the giselle bundchen, she's going to get this guy to retire well before he's 45. ashley: very well put. i stand corrected. [laughter] and usain bolt, what happened? was defeated by justin gatlin in the 100 meters this weekend. he is human after all. >> listen, usain bolt is the most talented sprinter in the history of the planet. ashley: yeah. >> he's never worked all that
10:49 am
hard or as hard as the other sprinters. and so eventually he was going to get caught slipping like he did here where he just wasn't in the kind of shape that he's been in in the past. i don't think this is the way he goes out. this was supposed to be his last competitive 100-meter dash. i don't think he goes out on a loss. i think he comes back next year and wins the world championship. ashley: more than likely he will, you're right. so much natural talent, great entertainer. he'll be back, for sure. jason whitlock, as always, thank you so much. appreciate it. >> thank you. ashley: all right. want to get back to tesla. this is interesting, turns out the model 3 will cost you a lot more than advertised. that price of $35,000, that barely gets you the wheels and the windows, right, e. mac? >> good point. it goes to $62,000 fully loaded. ashley: 62,000. >> yeah, you have to pay an extra thousand if you don't want the color black, you have to pay extra for the autopilot function in your tesla car. ashley: that's basic in most models.
10:50 am
>> good point. elon musk is saying i want to build a million vehicles starting in 2020, he has to ramp it up from 1500 a week to 5000 a week, and he has to sell a lot of cars to keep the cash flow coming in. he's got to the appeal to main street and middle america. you can buy a bmw for that. ashley: all right, e. mac, thank you very much. the nra releasing another ad, this time, oh, yeah, taking on "the new york times." dana loesch getting major backlash. she joins us next hour. who knew that phones would start doing everything?
10:51 am
10:52 am
entertaining us, getting us back on track and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save when you choose by the gig or unlimited. call or go to xfinitymobile.com. xfinity mobile. it's a new kind of network, designed to save you money.
10:53 am
won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry about replacing your car because you'll get the full value back including depreciation. switch and you could save $782
10:54 am
on home and auto insurance. call for a free quote today. liberty stands with you™. liberty mutual insurance. >> the u.n. security council unanimous vote hitting north korea with punishing new sanctions. however, colonel ralph peters says that sanctions will not be enough to rein in the rogue regime. let's roll tape. >> well, there's very good news, and that's that the u.n. security council voted 15-0 to impose tougher sanctions on north korea. the bad news is they won't make any difference whatsoever, because china has mastered the art of giving us just, you know, showing just enough leg to keep us from imposing any kind of economic sanctions on them. you know, china literally gets away with trade murder because they keep dangling this possibility that they'll help us with north korea.
10:55 am
now, china on this 15-0 vote -- yeah, that sounds great, but we didn't get sanctions we wanted. we want9 tougher sanctions -- wanted tougher sanctions, but they watered them down for china to come onboard. there are two reasons. one's the macro reason. china regards north korea as a critically viable ally in peace and war. the second reason is that china, you know, china's steel industry is a great international weapon when you consider the prices dumping or not,s it's a big plus for china. well, china doesn't have the right coal, it has soft coal. north korea, one of the few things it has is hard, high quality coal that goes into furnaces for chinese steel. so there are all these back stories here that we're not paying attention to. the bottom line is this: if we expect china to stop north korea, ain't gonna happen, brother. stuart: well, the question is, ralph, how can we even know that the chinese are complying with what they say they are?
10:56 am
is there any way of doing that? >> well, coal is a bulk product so, of course, there are two ways to get it into chai, one is by ship, and we can trace that. one is by train going across the border, and we can track that. but even there you have a finite number of satellites and analysts, so if we're watching ports for coal, we're not watching their missile complex with the same assets. so, i mean, this -- i'm laughing about it, but this is deadly serious. ashley: yeah. >> the north korea problem is far from being resolved, and these fake palliative measures that china keeps feeding us, they just turn us into global economic suckers as well as strategic suckers.
10:57 am
. .
10:58 am
10:59 am
ashley: 11:00 a.m. here in new york. 8:00 a.m. in california. good morning to you. here is what is new this hour. nra releasing another ad taking the aim at mainstream media. they have a message for "the new york times."
11:00 am
that ad getting a lot of backlash. nra spokesperson dana loesch is here to respond. good stuff. paul ryan got an earful from a frustrated voter. the man calling him out for all infighting within the republican party. we will play you the clip. ryan's former chief of staff will join us to respond to that. a lot of frustration out there. officials in college park, maryland, are considering giving non-american citizens to vote in local elections. the insanity goes on. judge andrew napolitano is here to weigh in. i'm already fired up. it is a jam-packed hour ahead. hour 3 of "varney & company" starts right now. ♪ ♪
11:01 am
ashley: a sell rose, guns 'n roses, welcome to the jungle. we get a new week of trading underway. we've been essentially flat since the opening bell. we're slightly higher, still hanging on to the 22,000 level and 22,085. a few more sticks in the red than in the green -- stocks. can the rally hold? let's ask our first guest, dan shaffer, shaffer asset management president and ceo. welcome by the way. the more articles. seems like there are a lot of naysayers out there who constantly snipe at this market moving higher. there is horrible underbelly. only a few stocks are leading the rally, at some point there will be a big collapse. you say? >> i agree with that? ashley: what? don't agree with that. >> naysayers are around for 40
11:02 am
years. you don't see younger crowd doing this. experience, i've been trading since 1982 and i understand markets. i've seen and studied history. we're in a situation here similar to 1928. the federal reserve experimented in the late '20s about the economy trying to stabilize it. benjamin strong, who was head of federal reserve died in 1928. that left them in scrambles and they didn't know what to do when the crash came in 1929. we have cycles coming in. 1817, 1917 we had panic. 1817 we had trouble with markets and napoleon wars. cycles are coming due around this time of the century. the problem is, i will be really blunt about this because i've spoken to many, many traders, somebody is fooling around with the vix. the vix is volatility index. ashley: so historically low. >> not only that. at 945 for the last 12 days, the
11:03 am
vix gets pushed down seven to 8% before the market bows down or up. that is very, very strange. if you actually look at the last 12 days -- ashley: someone is messing with it? >> there is something going on. my algorithms pointing to some type of control. ashley: how could that happen? >> i don't know who is doing it. i know the japanese government absolutely admits they own the stock market. they are buying stocks. i don't know what our federal reserve is doing but i do think they're experimenting. forget the dow for a moment. the s&p last 12 days futures are pegged at 1275. excuse me. 2275. they peg it at that number. it tries to bo down. then the vix moves down. the vix is usually moving after the stocks move. it is moving before the stocks move. that puzzles me. so i'm going to tell you my long-term horizon all what i see. ashley: sure. >> i see our stock market on the
11:04 am
dow dropping at least 3,000 points. i see the s&p dropping at least 20% to the put it into a bear market. i see the u.s. dollar getting very, very strong. the index at 112. euro against the dollar at .85. ashley: where does the money go? >> which money are you referring to? a lot of cash has been in the market, it has been put in. a lot of funds are low on cash. the money today is chasing these stocks that everybody loves likes amazon, for instance. ashley: sure. >> which i have no interest in long or shot. this is a stock trading at 250 times the earnings or 12 1/2 times the s&p. it is going to take at least 10 to 15 years at the current rate of growth to bring it in line. this is speculation. before we -- ashley: amazon story, it is slowly but surely, appears to me start taking over many aspects of our life. >> it's a great story but also becoming a little bit after monopoly. we have a little -- ashley: antitrust issues.
11:05 am
>> that. and besides the fact, in the dot-com people bought a lot of different stocks hoping everything would go up, and that crashed. now they're isolated only on certain technology stocks. technology is end of a bull market. that is the last piece to go. technology is taking over the world which is less jobs. ashley: dan, you have completely thrown me for a loop because this is something i have not heard before. >> interest rates by the way are going down dramatically because the economy will slow down and the fed can't control that. ashley: when will this all happen? >> start now, into 2018 and 19. that is my prediction. i could be bronc. i could be wrong. ashley: all right, dan. we'll have you back anyway, thank you very much, appreciate it. too politics, "new york times" reporting that some republicans are gear up to run against president trump in 2020. the white house responding saying that the president's base is as strong as ever, quote, every potentially ambitious republican knows that. we're joined by fox news
11:06 am
contributor mercedes schlapp. fascinating stuff, mercedes. what do you make of that report? >> first of all you would be standing around my kitchen table this weekend with all my cuban-american relatives celebrating my parents' 50th wedding anniversary they were all so pro-trump and so excited about this president. so i do tell you when you go out to talk to the grassroots folks, they are standing strong with trump. we're actually very frustrated with congress and inaction of the republican in, that institution. so i think that is where you, where you see it. so you know i think when you're looking at this actual report in terms of these other republicans i would call them establishment republicans, even mere mention of these individuals and of course they're visiting these different type of battleground states of iowa and such, i think it's, it's very telling, first
11:07 am
of all of a gop that remains divided but secondly of the fact that those republicans are doing a disservice to the president of the united states. ashley: yeah. >> who was voted by, not only republicans but independents and democrats who supported this president. and the moore fact that is even being mentioned so early on i think is just disgraceful. ashley: i also think with the congress now back with their constituents they will get an earful. paul ryan did from one particular voter. they will not blame president trump. they will blame lawmakers not own within their own part to support him, but to get any of this agenda pushed through. they will get an earful, i would imagine, would you not? >> absolutely of the those republicans in the senate, moderate republicans who for years campaigned on repeal and replacing obamacare, and then when push came to shove, what did they do? they wimped out. they didn't even support the skinny bill which as we would have known provided waivers for states to have flexibility in
11:08 am
their insurance markets t would have gotten rid of individual mandates and employee mandates, employer mandates. what those republicans did they broke their promise. they lied to their constituents. so that, those are the individuals that i think have to be targeted. ashley: absolutely. i just want to get this one in. deputy attorney general rod rosenstein, mercedes, telling fox news anyone who breaks the law by leaking classified information including white house staffers and members of congress will be prosecuted. this is long overdue. your reaction? >> absolutely, when you look at the fact under this administration alone seven times more leaks of unauthorized disclosure of classified information compared to president obama and president bush's time. that is it is a violation of the law. and it puts national security at risk. those individuals who go out there and believe they need to be pushing back on president trump's agenda by leaking out
11:09 am
this information to the news outlets, they have no place in government. there is a process called whistle blowing, if they want to do that, that is one thing. ashley: right. >> if they give the leak they should be prosecuted. ashley: they should. it is outrageous. thanks as always for joining us. >> thank you. ashley: quick check of price of oil for you. it was moving down earlier. it is still off 87 cents at 48.711. gas prices up overnight. the national average on regular by the way now at 2.$4. it was down in the 2.20s. moving higher. paul ryan confronted by a factory worker that republicans are not doing enough to push the president's agenda. we'll play you the clip a few minutes from now. first the nra releasing another ad, taking on "the new york times." dana loesch getting major backlash. she is with us to respond next. ♪
11:10 am
potsch: you each drive a ford pickup, right? (in unison) russ, leland, gary: yes. gary: i have a ford f-150. michael: i've always been a ford guy. potsch: then i have a real treat for you today. michael: awesome. potsch: i'm going to show you a next generation pickup. michael: let's do this. potsch: this new truck now has a cornerstep built right into the bumper. gary: super cool. potsch: the bed is made of high-strength steel, which is less susceptible to punctures than aluminum. jim: aluminum is great for a lot of things, but maybe not the bed of a truck. potsch: and best of all, this new truck is actually- gary: (all laughing) oh my... potsch: the current chevy silverado. gary: i'm speechless. gary: this puts my ford truck to shame. james: i'll tell you, i might be a chevy guy now. (laughing)
11:11 am
11:12 am
11:13 am
ashley: the nra releasing another ad taking aim at mainstream media. this time they have a message for "the new york times." roll tape. >> consider this, the shot across your proverbial bow. we're going to "the new york times" and what deep, rich, means to this old gray hax, untrustworthy dishonest rag subsisted on welfare of mediocrity, for one, two, three more decades? we'll laser focus on your so-called honest pursuit of truth. in short, we're coming for you. ashley: well, that is a heck of an ad, is it not. we're joined by very star of that ad, nra spokesperson, dana loesch. fascinating, what reaction have you had to that particular ad?
11:14 am
>> ashley, so good to see you. well, it has been interesting because either people really identify with media bias, because they have either had it done to themselves or done to individuals that they believe to be trustworthy, or there have been, ashley a few people out there that don't believe a free people have the right to promise to fact check the press. that is exactly what this ad was. that is why i used the word fisk, adam goldman at "the new york times" didn't understand because of his limited vocabulary. fisk, i'm line by line, not just me, other members of the nra, second amendment supporters, anyone who loves an honest press, we'll keep our media accountable. free people have the right to do that, ashley. ashley: they do indeed. how much input do you have what is said in these ads or are you given a script? i'm just interested? >> no, no. i wrote this script. some can be collaborative effort.
11:15 am
no, i used the word fisk for year and many other writers as well. just unfortunate that reporters like dave wigle at "washington post," adam goldman completely proved my point at "new york times" didn't understand what i was talking about or didn't know the captions of my ad, either, ashley. neither of these reporters reached out to me for any kind of clarification. ashley: of course not. >> or any word at all on this ad before running with their smear. ashley: old gray hag, dishonest rag, laser focused on purported pursuit of truth. very strong words. >> yes, indeed, and i think those strong words are needed right now. ashley, remember, jim route 10 berg at "new york times" wrote in a column that the "new york times" didn't have any obligation nor did any other media to treat the president of the united states with any shred of objectivity simply because they did not like how the president spoke. it was arthur you sullenberger, jr., came said, yeah, "the new york times" was
11:16 am
incredibly biased this last election. they admit their bias, ashley. ashley: right. >> did so sort of it didn't really matter. they admitted it, yet they continue to still do it. i have so many examples, more examples than we have time to fit in the block of time this morning, "new york times" for so long abused trust of public. a free people have the right to hold their media accountable. ashley: interesting side note here, dana. gunmakers reporting slower sales because president trump took office. stern ruger sales down 22% last year. it's a double-edged sword. what it is saying people now believe no one is coming to take their guns away. unfortunately for gun retailers, this means less people coming in to buy guns, right? >> well, yes and no. first off, i know a lot of people try to use background check number, but at same time, firearms sales for certain manufacturers reported some gains. some have reported steady sales. the bottom line people don't have to worry about their rights
11:17 am
taken away at federal level. it is different story when you go state by state. there are gun control groups unfortunately seek to disarm people. they have fought to do so on college campuses. they lost in texas. people want their right of self-defense. it is important. ashley: very quickly, i i want o come back to the point you make, people know it is dishonest. once you get out of that liberal bubble in washington, d.c., new york, other areas of this country, majority of united states see the media for what they are, the mainstream media. they already know they're not getting the full facts. >> they do, absolutely, ashley, you're so right, they do. it is unfortunate, "the new york times" they have even had one of their editors who was let go recently said this can't be a paper for only half of the country. people understand that. that is why you see so many citizen media out there on the internet. it is a wonderful thing. ashley: dana loesch, host of "the dana show." great stuff, we appreciate it.
11:18 am
>> thank you, ashley. ashley: very, very aggressive ad to say the least against "the new york times." now this, officials in college park, maryland, are considering giving non-citizen immigrants the right to vote in local elections. judge andrew napolitano will be joining us soon on that. now check this out, a scottish-based brewery opening a new kraft beer bar on the border between the united states and mexico. the bar's catchphrase? make beer, not walls. more on that in a minute. but first, that boston dynamics at lass robot take as tumble. it was showing off the robot at science and technology expo. it walks offstage, catch as foot in a light and in need after good mechanic. more "varney" next. ♪
11:19 am
today, we're out here with some big news about type 2 diabetes. you have type 2 diabetes, right? yes. so let me ask you this... how does diabetes affect your heart? it doesn't, does it? actually, it does. type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. and with heart disease, your risk is even higher. you didn't know that. no. yeah. but, wait, there's good news for adults who have type 2 diabetes and heart disease. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease and lower your a1c. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded,
11:20 am
or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. do not take jardiance if you are on dialysis or have severe kidney problems. other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. so now that you know all that, what do you think? that it's time to think about jardiance. ask your doctor about jardiance. and get to the heart of what matters.
11:21 am
the dinosaurs' extinction... got you outnumbered. don't listen to them. not appropriate. now i'm mashing these potatoes with my stick of butter...
11:22 am
why don't you sit over here. find your awesome with the xfinity stream app. included with xfinity tv. more to stream to every screen. won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry about replacing your car because you'll get the full value back including depreciation. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™. liberty mutual insurance. ♪ ashley: all right. check this out. "the karate kid" returns in a new you make from youtube red.
11:23 am
ralph macchio and william zabka reuniting for the reboot. it will be a 10-episode comedy series. the down and out johnny reopens the dojo. austin doing his preying pose. that is painful. scottish beermaker opening a bar on the u.s.-mexico border. calling it the bar on the edge. the company isn't disclosing the location. the will be in texas and half in mexico. it will serve mexican beer on the mexican side and the american beer on the american side. the phrase is make buyer, not walls. looks classy. there were no winners in either pow or ballgame over the weekend. -- powerball. it grew to annuity value of $307 million. cash value of 392.000000 if you
11:24 am
decide to do that. no one has won the jackpot since june 10th. megamillions growing to $346 million. the seventh largest in the game's history. wouldn't that be nice. liz: yes. ashley: officials in college park maryland are considering giving northern citizens is the right to vote in local elections. judge andrew napolitano will join us next on that ridiculous story. top republican senator orrin hatch says getting trump administration tax plan through congress would be miraculous. when congress does return in september, there are only 12 days where the house and senate are in session at the same time. liz: wow. ashley: ticktock, time running out. stay right there. ♪
11:25 am
11:26 am
11:27 am
11:28 am
♪ ashley: it is a wet monday in new york city. there you have the rolling stones belting out one of their hits.
11:29 am
let's check the dow 30. it has been rather flat at the opening. it has stayed that way. we still hang on to remarkably high levels. the dow still almost at 22,100. down about four points. more stocks in the red than in the green. to politics now, house speaker ryan getting an earful from a factory worker in his home state of wisconsin. i'm sure he was killed. >> for eight horrible years i heard we don't have control of the house. we don't have control of the senate, we don't have the presidency. okay? when we get in, we have got a plan we'll change stuff. tell you what, you're in there you now. all i see is infighting. it is very dysfunctional. ashley: i think that factory worker speaks for many people who thought we would see remarkable change in washington, d.c. we're joined by speaker ryan's former chief of staff, david hoppy. david, thanks for being here. this guy make as pretty fair point, does he not? republicans haven't got anything done so far?
11:30 am
>> well it is his frustration i'm sure is shared very much by the speaker. after the elections last year the speaker and working with the president and working with senator mcconnell started to lay out a plan for this year and it has not turned out the way they hoped it would. it took longer in the house to move the health care bill. in the senate they were unsuccessful doing it up to this point. so that is a great frustration for the speaker i guarranty you. he feels very much like that. ashley: who is to blame, david? who is to blame? >> a lot of blame to go around frankly. the republicans internally done infighting as opposed to looking to find where they can agree to move things forward to start changing the direction in health care. they're now looking to taxes. they have to move forward on that to start changing it. you have to have some changes here to get the economy growing. and that's the key. that is what the president is looking at. that is what speaker ryan is looking at. that is what majority leader mcconnell wants to do. how do we get the economy
11:31 am
growing 3% or greater. ashley: right. >> those are things they want to do. thus far a lot of internal machinations have not allowed them to. the party up and down the line, here what we achieve and start to improve the economy. ashley: get on the same page. you mentioned taxes. now some republicans casting doubt on getting the tax agenda passed. if you can, david, listen to senator orrin hatch on fox news this weekend. take a listen. >> the president talked about three brackets, 10%, 25%, 35%. are these the rates that look good to you? is this what you would like to see? what would you like to see in terms of a individual tax rate for majority of the country? >> i would like to see it very, very low, if we could get to those rates that would be miraculous and it would be very beneficial for the country. ashley: orrin hatch, david saying it would be a miracle, miraculous if we get the kind of tax reform we hope we get. is he right, do you think? >> well i was one of those
11:32 am
people who was around back in the 1980s when we did the last tax reform. i was chief of staff to jack kemp in '85 and '86. it was very difficult thing to do. we passed it by the skin of their teeth. right now as we look forward there have to be tax changes, i'm not sure this congress, with democrats declaring already they will not work with republican unless they do exactly what the democrats want on taxes, if that is the case you have a very difficult time. you can do significant tax reforms, lowering corporate rate, pass-throughs right, doing something for families, repatriation, those things are entirely possible. looking back what happened in '85 and '86, comparing it to now, the democrats in '85 and '86, bill bradley, dick gephardt, two leaders of democrat party who were in favor of what jack kemp and president ronald reagan wanted to do in '85 and '86.
11:33 am
you don't have that now. democrats will work on taxes only way we want to do it. we'll not work together. democrats declared tax reform dead unless they do it their way. things can be done that are not tax reform, fundamental tax reform which the speaker would like, the president would like, but they can be done to change the direction this country and start getting breath back in the economy. ashley: quickly, david, what does it mean if we don't get big parts of the president's agenda through you, what does it do for republicans in the midterm 2018 elections? >> it is necessary for republicans who came in with an agenda to pass some of these things to get moving on policy changes because those polly changes will move us. as they move into the fall they have a good chance of passing tax cuts. that is what they have to look for. making policy changes. economy gets better. people's lives get together and reach out to some democrats. senator manchin would like to.
11:34 am
democratic governors talked about doing things that would help on health care and taxes. maybe something to be found out there but may be beyond washington. ashley: yeah. sadly i think you're right. david, thank you so much. , david, thanks for joining us this morning. thank you. now this. deputy attorney general rod rosenstein telling fox news who the justice department is targeting as it clamps down on leaks in the administration. roll that tape. >> look at the facts and circumstances. what was the potential harm caused by the leak, what were the circumstances that is more important who it was or the leaker. if we identify somebody no matter what their position is, if they violated law we will prosecute. ashley: white house officials, members of congress? >> anybody who breaks the law. ashley: anybody. all rise, judge andrew napolitano back with us. great to have you, judge. this is a serious offense. >> will leaking classified material is a serious offense. leaking transcript of the president's telephone conversation, that does not
11:35 am
contain classified material is wrong, and condemnable but not a serious offense. not a crime. the person who did that should be fired but not prosecuted. a person who released something they received because they have a security clearance, a person who leaks that has committed a felony. though of course the person to whom they give it if in the media and it is published is immune from prosecution. ashley: i wanted to follow up on this story because we had bill bennett. >> used word immune intentionally. ashley: he said he disagreed with you. journalists have every right to publish what he gets from his source. he said no. i was thinking in a situation of war, if you publish something that could put american lives at risk in the military whatever it could be, he says you are not immune. >> he is brilliant man. i am honored that my name came out of his mouth. ashley: very kind. >> in a pleasant, in a pleasant way.
11:36 am
there is no case that permits prior restraint, that is restraining something from being disseminated before it is disseminated. most of the cases come about after it has been disseminated. ashley: right. >> the great case, the leading case in which a federal judge here in new york city restrained "the new york times" and a federal judge in washington, d.c., restrained "the washington post" from releasing the pentagon papers report, which basically said, that lbj and his generals were lying to the public. this is a historical document that came out during the civil war. the supreme court ruled 6-3 that no matter how the material is acquired and no matter how sensitive it is, if it is material to the public interest, if it is material to the public interest, the publisher is immune from prosecution. that is the daniel ellsberg case. he was prosecuted. eventually -- liz: vietnam war, right? >> yes. that case has been followed
11:37 am
dozens of times by federal courts that have ruled similarly. our own james rosen relied on that case when he revealed some classified material that had been given to him by a scientist in the interview. ashley: mr. bennett's ears as well. >> good man that he is. great traditional roman catholic. ashley: next one for you, judge. chicago mayor rahm emanuel, planning to sue the justice department over the whole issue of withholding money if you're a sanctuary city. >> i have seen the complaint. filed a few minutes ago. i think it will be dismissed because the money hasn't been withheld yet. you can't sue because you think the government is going to harm you. you have to wait until they actually harm you. the harm is thisgovernment gives $3 million to chicago, tiny part of their budget, police equipment, bryne grant, named
11:38 am
for policeman whose brother is now the deputy commissioner, the grant was given under the obama administration with no strings attached. issue is, can the attorney general attach strings to a grant of money that congress didn't attach? the answer is no. there is light at end of the tunnel for the trump administration, when their first budget is adopted, it is ever adopted -- ashley: they can take the money away. >> they can't take money away but strings on future delivery of money. in the future if the city receives the byrne grant, they have to agree condition of receiving money to cooperate with immigration authorities. ashley: one more issue, this is getting my blood to boil. city in maryland looking at issue where they allow non-citizen to vote on non-issues. >> my answer will make you blood boil. the states can permit anybody they want to vote in local and state elections. the constitution --
11:39 am
ashley: allows it? i thought you had to be a citizen. >> the constitution is silent on it. the constitution mentions citizens four times voting federal elections. house of representatives senate and vice president. even there the mention of it is ambiguous. the test would be can a state allow non-citizens to vote in federal elections? that would be a challenge for a federal court. that has never been ruled on. but it is clear that a state could permit children or non-citizens to vote in local and state elections. that would be absurd and would be contrary to our tradition except, that until 185, half the electorate were not citizens. ashley: don't blind me with facts. i don't like concept of it. you're right, my blood is polling even more. >> always a pleasure even if you are hot blooded. ashley: you have no idea, believe me. check the big board please, deep breaths all around.
11:40 am
we're back up on the positive side. we're up very impressive, almost three points, at 22,000, nearly 22,100. quick look at oil. it has been moving lower down about 88 cents. gold too has been moving slightly lower in this market. now it turned around up to 1265, up just 60 cents. other news, meat processor tyson posting better profits. that is helping the stock up 5.25%. the big tech names, we check in every day, take a look at those, everyone except poor stuart's microsoft losing money. can you hear him groaning from his vacation pad somewhere? liz: looking for cheap gas in oklahoma. ashley: stuart varney drove to oklahoma to get cheap gas. that is where he is. >> not surprised. ashley: office depot says it will start offering same day delivery in atlanta, l.a., fort lauderdale, miami. office depot shares up 3% up at 6.13.
11:41 am
>> massive sinkhole continues to grow in florida. two more homes have been condemned because after sinkhole noor tampa. six are unliveable. two were destroyed when the ground caved in. this sinkhole 260 feet wide at its widest point. could florida disappear into that? let's hope not. now this. according to "new york times" at least four republicans are interested in president trump's job in 2020, calling it a shadow campaign. one person on that list, vice president mike pence strongly denying that report. boy, is he ever. stay right there. ♪ looking for balance in your digestive system?
11:42 am
11:43 am
try align probiotic. for a non-stop, sweet treat goodness, hold on to your tiara kind of day. get 24/7 digestive support, with align. the #1 doctor recommended probiotic brand. now in kids chewables. >> i'm nicole petallides with your fox business brief. s&p, rating firm out look is front and center. outlook remains negative. concerns about execution challenges next 12 months and capital in the company. watching model 3 which had preorders of 500,000. we'll continue to watch that. while we're watching tesla's stock, the stock is up 47 cents, 357. the company outperformed all the automakers.
11:44 am
there is a look. tesla up 57%. gm, fiat both gained this year. tesla outperform and higher market cap. the last piece of news, model x, done well for tesla, they're dropping a cost from $3,000 from 82,000 five to because of bigger and better margins. substances with a gentle mist. most allergy pills only block one. and 6 is greater than one. flonase sensimist. ♪
11:45 am
ashley: general john kelly, just one week into his new role as president trump's chief of
11:46 am
staff, reportedly moving quickly to bring order and discipline to the white house like any good military man. we're joined by fox news political, politics editor or political, same thing, chris stirewalt. >> i'll take it. ashley: chris, great to see you. not an easy job to try to rein in a white house seems to be moving every direction. can john kelly get it done? >> we should remember the white house chief of staff is the second hardest job in government, in american life in a lot of ways. even under more conventional president, even under a president who is less prone to disruption and chaos. so there -- we have to bear that in mind. this isn't just a trump circumstance. now the big question for kelly, we saw him vindicated and we saw his new approach born out in a couple of ways. one with the swift firing of anthony scaramucci and two, the reordererring of the staff with everybody reporting to him, big wins for him as the president got ready to leave for vacation.
11:47 am
what we'll wait to see, what matters now is, will the fight over the national security administration and president's national security advisor, general h.r. mcmaster, which the faction inside of the white house that is expense him this, is the more of "breitbart," alt-right, these folks hate mcmaster sort of a globalist all that jazz, this fight is brewing we'll see how this plays out. this is the next test for general kelly. ashley: not an easy job to your point. chris, there are 12 days between now and the end of september when the house and senate both in session, they still have to deal with the budget and debt ceiling. then they can move on to tax cuts. how will they get this done or do they? >> if they get it done, they know what they will do, they just don't want to tell us. that is often how this goes in washington of the last 15 years, 10 years, which is basically, the solution they have will be
11:48 am
unpopular. they don't want to debate it or talk about. they will get back. wait until you get to the edge of the cliff. they rocket something through with everybody under pressure so that people don't have time to debate. people don't have time to argue about it. that way they can say, it was imperfect, but we passed it 11:59:59 p.m. the big moment, the big first test we'll know how it is going when they get back in early september they have to start talking about the debt ceiling. we'll be looking to see can they get to a point where republicans will agree to punt the debt ceiling to the end of the month, tie it all into the budget and taxes prop up for obamacare and all those things. they will keep growing that blob and then they will try to rocket it through at the 11th hour. ashley: quite an image. >> yeah. ashley: squeeze through the blob at the last second. we'll move on. vice president mike pence fighting back against that "new york times" article that claims he and three other republicans are considering
11:49 am
running against president trump in 2020. vice president pence saying quote, today's article in the "new york times" is disgraceful, offensive to me, my family and our entire team. the allegations in this article are category false. they represent the latest attempt by the media to divide this administration. chris, what do you make of that? your reaction? >> well look, mike pence has to be ready for 2020 either to run for vice president again, so there is that part, or also the possibility which is stronger with this president than it has been with his predecessors, that he either won't be running again or won't complete the term. he has to be ready for that. that is not unreasonable. unfortunately for pence this is president we know loyalty issues are a big, big deal. so i'm sure the vehemence of his denunciations of "the new york times" are reflective of the knowledge if president trump comes to believe that mike pence is hedging his bets in some way, that mike
11:50 am
pence is at least even making ready or considering what happens, sitting vice president fine an open lane for the top seat, if trump thought that was true, look at poor jeff sessions it, would be a toxic relationship for the two of them. ashley: would be beyond beleaguered. this report, chris, says that, you know, mike pence has been courting influential donors, hotting events at his naval observatory residence. i mean is that kind of stuff, does it point to mike pence doing something more than just you know, talking to the base? >> there is nothing, there is nothing nefarious, nothing wrong -- mike pence is a careful, cautious individual. ashley: right. >> and there is nothing wrong with -- these are people who liked him in the first place. people wanted him to run in the first place. the koch network and others wanted pence, they like pence he is there kind of republican. he is socially conservative. leans libertarian, market guy.
11:51 am
so they liked him, why not him keeping up those relationships isn't anything bad unless the president see is it as a threat. ashley: unless you're "the new york times." chris stirewalt, great stuff as always. chris, thank you. >> happy monday. ashley: now this, alphabet employee sending a memo to his colleagues blasting the company's stand on diversity and gender. we'll tell you how alphabet's newly-appointed diversity chief is responding next. listen to this vegan cafe in brunswick, australia, charge as tax to men for just being men. there is a catch. stay right there. we'll tell you. ♪ ♪
11:52 am
11:53 am
track your pack. set a curfew, or two. make dinner-time device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and control. change the way you wifi. xfinity. the future of awesome.
11:54 am
11:55 am
ashley: google condemned an engineer's anonymous manifesto blasting the company's stand on diversity. here is a quote. open and honest discussion with those who disagree can highlight our blind spots which help us to grow which is why i wrote this document. google has several biases, and honest discussion about these
11:56 am
biases silenced by the dom than the ideology. this is the response from their new vice president of integrity, diversity and governance. it advanced incorrect assumptions about gender. you i will not link to it because it is not a viewpoint the company endorses or promotes or encourages. what is your take. liz: the anonymous writer focuses on diverse ity and respect to idealogical differences. he says that women are not represented in tech world. ashley: yep. liz: enough because of their biological differences. he saying men are better equipped, essentially to be engineers. that is how you read the document. you know, i have to say this, the one of the top guys at google said, you know what troubled him deeply was bias inherent in his suggestion that most woman or men feel or act a certain way. ashley: right. liz: or think a certain way. in other words he was, the
11:57 am
anonymous writer was stereotyping himself. so he himself. i thought that was interesting. ashley: interesting but not great for google i would think. liz: yeah. ashley: and this, we mentioned this before the break, australian calf i fay charging men more than women. why, liz? liz: they wanted, basically saying women get paid less than men, so we'll hit men with 18% charge. we'll donate that money to women's charity. women get priority seating. you see the house rules. not mandatory. it is voluntary charge. so you know what? ashley: ah. liz: i will buy you your tofu sandwich so you won't have to pay the charge. ashley: no tofu for me. emac, thank you. more "varney" after this. ♪ nah. not gonna happen.
11:58 am
that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] mmm. the kohler walk-in bath features an extra-wide opening
11:59 am
so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call to save $500 off bath walls with your walk-in bath or visit kohlerwalkinbath.com for more info. it's a highly contagious disease that can be really serious... especially for my precious new grandchild. it's whooping cough. every family member, including those around new babies, should talk to their doctor or pharmacist about getting vaccinated. ashley: well, the markets up a barnstorming 12 points -- [laughter] still at 22,100.
12:00 pm
we understand that neil cavuto is not in today, he may have got an invite to the stuart varney compound which, i will point out, liz, myself or connell shane -- because we're filling in for them. connell: you talk about ratings gold, we'll check it out tomorrow. [laughter] thank you, ashley. good to see you, sir. we will have a busy couple hours. all quiet at the white house, i guess, but president trump has been making some noise there in new jersey, and on the next two hours of "coast to coast" we'll be talking about that and more. i am connell mcshane, and first up is the media prematurely predicting an end to the trump administration with all this talk in "the new york times" saying vice president mike pence is somehow running a shadow campaign. the vp calling that article disgraceful and and offensive. it alleged there are so many doubts over the current president that republicans like

40 Views

info Stream Only

Uploaded by TV Archive on