tv Varney Company FOX Business December 11, 2018 9:00am-12:00pm EST
along with myself and my sister. we talked about andrea bocelli foundation raises money for those underprivileged people thank you to both. it was fun. >> jealous. [laughter] >> incredible. thank you again or for everybody joining us this morning great show "varney & company" stuart take it away. >> wish i had a voice like that. good morning everyone. this is what is called volatility and it still with us. it drives investors absolutely crazy. but since early october stocks have saw from big losses to big gains, the way it is these days. look at this. the dow industrials going straight up when trading begins today. we're looking at a triple digit gain maybe 300 points up. plus, a big gain for tech stocks on the nasdaq as well. these wild swings seems to be headline driven algorithms read and interpret headlines that computers take over.
volatility. headlines today, britain's prime minister she's flying to berlin to ask european leaders or for brexit confessionings yes we'll talk but it is a firm no on any new concessions looks grim for mrs. may in france a contrite president macron goes on national tv to retreat before the rioters angry looks grim from macron frankly looks grim for all european union look at this jump in oil prices following opec's deal to cut production largely gone. crude is become to 51 dollars and if until just moments ago it was actually falling. that's why gas prices keep coming down. down for 64 straight days the national average is, 2.41. sound the trumpets. all right don't. ♪ okay the average price of gas at gas stations in missouri is: 1.99 per gone we got there.
on political calendar there president trump meets nancy pelosi and chuck schumer main issue funding border wall looks like in thes are digging in we're told they will off a and he wants 5 billion so words government shutdown are genal in the news. and coming up shortly to your screen, one of the most powerful people in the world. google's chief pashi testifies before congress very high stakes political theater. "varney & company" is about to begin. ♪ this you've got to see. this is how the market unfolded yesterday. this is the face of a wild ride. down 500, and then we close higher. look at it. isn't that extraordinary that's volatility. it all started when theresa may officially delayed brexit vote
that's what kicked it off and we close down just 46 having been down 500. market watcher mike murphy with us this morning. all right mike my contention is that this is driven by headlines, read by algorithms that computers take over and you've got ups and down swings. 100% right after -- >> couldn't have said it better myself. >> you nailed it. that's what's happening i think -- the big lesson here, though, stuart is some people are getting caught up in headlines saying oh we're down 800 it could get worse let me sell. or now we're rallying 500 let me buy. stick it a game plan don't try to time tops or 3w0789s in the stock market. >> how can you control this algorithm trading i don't think you can. >> from a regulatory standpoint. >> right. it is tough there are certain colors put in place to slow it down when things start getting completely out of hand but i think just with technology stuart this is the world we live in now. so it used to be we've talked about it before a capitulation bottom would mean you throwing
your hands and sell your retirement account. that's no longer the case right now are what you have is algorithms driving based on headlines. so for the person at home, don't try to get caught up in that. stick to your plan. >> okay but when had does this come to an end? >> i don't know. i short end. but remember not too long ago less than 12 months ago i was on this program talking about to you about when will volatility ever come back is it gone or for good? there's no volatility in market well here's your volatility we have to back -- don't like it at all. stay there mike bring you at 9:30 when market opens. all right intersection pit now that was the headline yesterday. that sent the market into that tail spin. ashley webster is in lon door for us now what's the brexit headline today ashley? >> well, the brexit left lane is that theresa may is on some random, you know, frantic effort of diplomacy across the english channel hitting a number of european capitols today. she began early this morning at the hague speaking with the
dutch prime minister mark fairly useful dialogue we're told what that means and what it means to intersection 98 deal nobody knows she went ton berlin been meeting with -- angela merkel german chancellor embarrassing moment stu when her car pulled up greeted by mrs. merkel door was locked and they couldn't find unlock button somewhat of an analogy of how she's trapped in this -- brexit deal as well. anyway, embarrassment beyond and not sure what all of this will do and meet with jean-claude later today to win confessions but he spoke to european parliament earlier today and says no renegotiations whatsoever. he was very clear about it. so what mrs. may will do about it and what she's going to win today nobody really knows. we know she'll be back here before january 21st to try again, again with whatever deal she could put together and the
sharks are starting to circle we understand several more have submitted a letter to call a vote of no confidence in her, and then labor -- leader jeremy corybn is increasing pressure to call for a vote of no confidence as well. he hasn't done it yet. but you can be sure that her future as she's trying desperately to get together some better deal is very much in doubt, stu. >> ashley as we said looks grim for mrs. may back to you shortly. now looks to me like europe is being hit by simultaneous crises italy, france, germany, britain. bring in steve hilton, all right let's go, steve let's start with theresa may is her power gone? >> yes. and the fundamental reason for that is that you've got this -- this contradiction in the u.k. which is the people voted in the populous manner for brexit but establishment ie representativeses in parliament media elsewhere don't believe in
it and she's been trying to push against that reality for two years. and also against the reality that the european union does not want britain to leave. except in a way that is deeply damaging, and so the incentive in negotiation is all wrong this was totally inevitable i think that the disaster that has engulfed u.k. is set to continue because nobody can see a way out of it i think where you're looking now, is actually the most likely scenario is -- unbelievably another referendum. >> let's talk about france emmanuel macron totally backed down in first of the protest is his power gone too? >> totally gone. the whole point of macron was that tun like every other french president of the modern era he said, he would deliver the economic reforms france needed and he would not back down in face of street protest. every leader before him has backed down and that's why
france has got this sluggish economy with endless bureaucracy that make it is a bad place to start and run a business. he said he would be different he's ended up exactly the same and so the entire reason for having him there has simply disappeared almost overnight. >> so you've got simultaneous crises and just as they hit, europe appears to be heading towards a recession. i say that speeds pup the breakup of european union what y you? >> yes. there's another one you can add to the list which is germany angela america pl remember that she too her power has gone. because of the massive miscalculation over immigration opening the doors to million plus immigrant from the middle east. and that had led to her departure not the leader of her party anymore. she's got a successor in place who looks like she -- angela merkel take over in a couple of years but no one has much confidence in that situation. so it was germany that really
was the -- holding eu together, and angela merkel power is gone as well so whole thing i'm afraid looks like a total mess. >> nice to be in america doesn't it, steve? you know -- >> you're right. [laughter] >> not sarcastic but i'm sitting pretty in new york and you're are doing quite well in new york. thank you steve hilton we'll see you again real soon. promise. let's get to our economy. looks like small business still feeling very, very positive. what a contrast with with europe, our small business operations here, looking pretty positive all right suge disan how positive? >> so we're still near record levels. but third straight month flippage as you would say lowest since april this have year. >> congress is down a bit. down a little bit not a huge amount. we're talking about two points, and concerns are slower growth expectations for next year 2019, and also moderating sales growth as well. small business very important to the u.s. economy since they account for what had 90 almost 70% of the hiring in the country
so important. only a little slip. >> a little bit. slippage there's a word for you. all right suzanne well this is how we open up -- 300 points. this is volatility look also at the nasdaq, again there over 100 points that's one and a half percent. that's a big gain. at the opening bell. don't know how it's going to close. president trump tweeting about the border wall, aheaded of his meeting with nancy pelosi, and charles schumer here it is. people do not yet realize how much of the wall including really effective renovation has already been built. if a democrats do not give us the votes to secure our country, the military will build the remaining sections of the wall. they know how important it is. strong stuff from the president, and we will deal with that. google's chief sundar makes big appearance on capitol hill in the next hour this will be a grilling and you will see it. coming up next, one of the
lawmakerring who will be asking the questions. "varney & company" just getting started. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
the president tweet about about trade are this morning may have affected the market what's he saying? >> positive he seems productive conversations going on with china, watch for some important announcements and we know there was a call last night between china and pus steve mnuchin on the call robert and u.s. trade rep leading negotiations along with vice premier many china so they're talking about more agricultural purchases from china something we talked about for a while changes to economic policy which as you know does not change on a dime and certainly not in 90 days. and more importantly i would say this is probably the best take away, changes in the made in china 2025. >> yeah. really that's well that's a positive development on china. >> what i haven't heard. it may have helped the market now we're up 303 points back to my premise here. headlines read by algorithms and
market moves on those headlines. maybe the market moved on that headline about trade. we're up 300. now, at the top of the hour, this coming hour, google's chief sundar testify before the judiciary committee republicans want answer as to allegations of liberal bias, to censorship, to the idea of starting up a search engine in china subject to censorship and surveillance in china. we already know what sundar says he continues to do that way and to otherwise go against our business interest we're a company that provides platforms for diverse perspectives and about opinion. and we have no shortage of them among our own employees. congressman andy biggs republican of arizona who is on the judiciary committee joins us now. it sounds like he's playing defense right from the get-go frankly denying allegation and
bias. >> he is, and he's going to say that -- that he's got clean hands but -- they go everywhere from southern poverty law center to help them sensor a conservative points of view. they're ten -- engaging in conduct to help chinese government sensor searches and content on the web. this is a problem and he's going to have to face it so we have to press him a little bit. and -- to get real answers. >> what could politics do? i mean, what's the answer to this? that in invasion of privacy and surveillance and all of the rest of it in china what can you do? >> well here's what we can do is -- we -- i'm hoping that marketplace says hey let's go to duck, duck doe doesn't have same constraints on it that google does. but right now all searches 90% of searches go through google so we look at and say is this an antitrust issue. i don't know that it is. i want the market to control it. but then we look at 230 of the
decency act that basically said look we're going to keep hands off policy on internet because we want you to develop and they've developed the google is really try ared to influence everything from elections to crush the competitors, to move everything to a different point of view, and we have -- we have e-mail chains, we have tons of evidence to do that. tnches real fast congressman you're a conservative guy. you're a free market kind of guy. should you be telling a private enterprise company what to do? >> i'm not sure that we should so regulate it that's my issue. but i think we can tell him of real concerns that we have because he needs to know that -- i may be just one vote here. there are others that would like to regulate him. but he -- they need to really take a close look at what they're doing, and they're not being helpful at all in my opinion. >> congressman look thank you very much for joining us we'll let you go because you have questions to ask in 40 minutes time and we'll be following you appreciate it sir.
again you have to look at futures positive headline from the president on trade, and we're up about -- close to 300 points. now, this -- "time" out with its person of the year. can you guess who it is? of course, we will tell you after the the break. i wanted more from my copd medicine... ...that's why i've got the power of 1-2-3 medicines with trelegy. the only fda-approved 3-in-1 copd treatment. ♪ trelegy. the power of 1-2-3 ♪ trelegy 1-2-3 trelegy
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"time" mag has its person of the year reveal it. >> jamal khashoggi capital gazette and of nimar these are journalists guardianss they call them this is really great for our -- >> that's one. >> they're multiple selectionses depending on the regions across the world. >> really? >> from person to fern region. >> and they have selected all journalists this year. >> all right. all right. there you go thanks very much. all right president trump, he's meeting with nancy pelosi and chuck schumer today here's the president's tweet on this. i look forward to my meeting with shiewm schumer and pelosi democrats votedded for a wall they were right to do so today they no longer. the border security but fight it at all cost and nancy must gets vote to speak or but wall will get built. james freeman here wall street journal editorial board kind of guy both sides of digging in,
the democrats we understand say hey you can get 1.6 billion and that's it. and president says we're building the wall. >> yeah i think he's in a pretty good position to negotiate here as you said they've already offered 1.6 billion so they've conceded the principle that a wall ought to be built, of course, he's got all of the old clips on youtube showing all of them saying let's build a wall. we ought to have border security. we also have this recent history where when head-to-head it, with immigration related shutdown fight with chuck schumer last winter it didn't last very long. the schumer shotdown ended monday midday after starting friday evening. so that's not a real strong shutdown. >> but are the democrats laying out their policy the president confrontation, in your face, and we're not going to do a deal on immigration are they laying out that kind of groundwork for future? >> i think it is an interesting test in resistance mode or just focused on impeachment for
whatever, fill in the blank on what the offense they want to claim. or whether they want to work with this president. they also may feel that had they have a moment here to do the deal they can say look the republicans still control the house. come january, we'll be in charge different story next time. but ping he's got a lot of cards to play especially since he's already funded the military the the stuff that hasn't yet been funded a lot of stuff democrats like to fund. >> it is got this tweet this morning saying military will build what -- the remaining parts of the wall. so he's got that to towel back on. tnches they've conceded principle i think when it comes to money they probably fold on that too. and i would hope they would work towards some larger deal to get the wall, gets the full funding and we all get more legal immigration because companies need it. and the president has been talking about it that lately too. we have a worker shortage in this country wonderful economic problem to have. >> when it is done when meeting is over i wonder if he'll have a
photo op with pelosi and schumer and the president and will there be smiling or be at each other? you know, you're going to read a lot into that photo op moment right there. >> and body language precisely. >> forced smile or genuine one. i think most of them would tell you. >> how do you tell? >> politicians -- how do you tell? >> we have some real pros in the room for sure. [laughter] james you're all right. thank you very much indeed i have to segue to the market kind of exciting. look what's going to happen at the opening of trading this morning. going to go up three there's good stuff in it up about 300 points and we have news -- kellyanne conway just said there's been movement to drop tariffs on u.s. cars going to china. from 40% to 15%. there's a headline -- i take it the algorithms have read it murphy. both rallying on that news. that's right. oh there you go got to watch this show to keep in touch with what's really going on. up 300.
went straight down. at one point down 500 points it turned around and we ended up 30. today we're going to open up about 300. how are we going to close i have absolutely no clue. but here we go. it is 9:30 we're with off we're running i want to see lots of green and there it is. there it is indeed up 302 points 330 points 328 right from the start. and that's with 26 of the dow 30 open and in the green. 27 open and in the green i've just got two left now dow is up 317 that's one and one-third percent let's move to the s&p 500 where is that this morning? right from the start? up one and a quarter percent. very solid gain. the nasdaq composite now, this is the index that has all a of the technology companies in it. and it is up very close to one and a half percent. so i'll tell you right now the tech stocks are strong again. they were very is strong yesterday by the close.
look at the automakers, a news that china is ready to drop tariffs on u.s. cars from us going to them. kellyanne conway just said from 40% to 15%. ford is up 2% gm is up 3%. fiat chrysler 2% solid gains on trade news. who is with me? this is a fine day to start out with a dr barton mike murphy and suzanne lee i say this is driven by headlines mike you agree with me and headline that is driving this up is trade. >> it is trade and president coming out saying expect big news on china. i still think stuart is that this does get resolve ared at some point and you'll see algorithms kicking into the big rally nb market. inch wound per they'll pick up on what you said because we're up 340 points what do you say? >> i believe with news keeps driving it yesterday it was the delay of the intersection vote that turned things around i think it is a very sensitive market. you've talked about volatility
all morning and remember 2017 we're coming off the least volatile year of all too many where a little bit we're a little bit spoiled on that nonvolatility so daily market. >> seeing now because we're looking at 4 six straights of a move on the dow longest stretch since 2008 and i would say two hurdles have been basically affecting the markets of fed rate hikes which seems to be put off for next year and china trade so 50/50 between two issues. >> big comeback yesterday, the 500 point swing comeback was based on the big technology companies. mike murphy you've invested in some of them so i hope, i guess you hope they're going to continue lead this high. >> stewart i'm hoping for growth that's where i see growth for coming year when i see company like apple where i haven't seen any major negative announcements yet stock trade is off 25% i want to buy that stock. >> you haven't seen any all of this news about the weak orders for iphone with with ruling in
china, the qualcomm of apple so i'll take that as a buying opportunity. >> apple at 170 you would buy it -- >> i've bought it higher last time about 178, 179 so not a buyer here if it dropped more i would be buying more. >> no longer common overweight holding for russell 1,000 and big money investorses at this point because i would say big money managers say we've taken dividends and buybacks maybe time to take some profit here? >> no not at all so trying to follow quote unquote big money managers is a losing bet because you don't know what they're doing today for instance. you get their report after the the fact. so i would rather find companies that i want to own and buy them at good prices. >> you're buying apple -- are you buying apple? >> two weeks ago you asked this exact same question with at exact same price i said i'm waiting for it to drop in low
160s we got there yesterday bought it. >> you bought it. of course i'm guy who is told by my children to buy it at 57 and this is a split this is years ago. >> a split with 8 -- i didn't buy it. i bought microsoft. okay but i didn't buy apple. check big board oh i think this is the high of the morning thus far 355 points up that's 364 one and a half percent. individual stock, that are moving, higher profit of the parent company of ann taylor that is a retail they're up 4% but it is a $2 stock. weak gasoline sales, at the convenient store chain caseys general store makes no difference stock sup a tiny fraction there. actually now it is up one and quarter percent. verizon -- 10,000 people accepted their buyout package, it was a generous package by the way up to what was it 60 weeks -- with full benefits? >> yeah. so this is they're trying to cut costs --
>> they are and doing it big time, looking at this is just 6.8% of their work force stuart so this is a big deal. >> but they have to spend a lot of money on their 5g network. that's future and that's where growth is in this business. >> 10 billion dollars that goes -- that saves them ten. better because i look out five years when these pay packages are up. i don't know what verizon looks like. what type of company so you know you talk big tech and growth, if you're investing in a verizon today what are you investing in for the the sphiewch? >> investing in 5g. >> i don't know what that really means for me i'm not a buyer of verizon because i look at it more of a comedy dividend type of company but i don't know what 5g will look like and what numbers will look like to the company. >> neither do i thank you very much. >> social network -- google plus is going to shut down makes no difference to the stock whatsoever. nor apparently does sundar
pichai stock is is teflon google is teflon right dr? >> they are because they have zoo only in online advertising with facebook, they're going to continue to keep double digit growth for as far as the eye can see. and google plus is just a sliver of nothing to google. never really caught on. this is more about getting this news out there before you hit capitol hill strangely came out the day before. >> we own google, but not necessarily teflon because it is gone down about 20% from its recent highs. so it is also gotten hit like the rest of the big tech names. >> i'm sorry i missed that. i should follow it more closely very sorry. >> it's okay it will come back there still a lot of growth there because they have a monopoly in their core business. >> they control 90% the of the search online but what do you expect to hear from sundar today stuart of the brand now because the founders are on their caribbean islands at this point but i don't think like what answers do you think he'll give you -- >> he'll play defense and i
think he's going to deny that there's any political bias. he's already said that we know what he's going to say -- >> i would expect that. he's going to say. no surprises expected later on. can any congressman find fault with him and sort of change armor and go after him? probably not. >> not prepared to give a very truthful response because remember, facebook kind of defended themselves completely that there was no sort of bias internally and now a lot of things have come out since that there is internal bias at facebook so with google, if it is out there it is going to come to light so i think he should shed lightly when he's answering this. >> i would like to see him in hot seat and somebody have a go about him. >> i would like to hear about china church engine to cut with the pentagon. not politically savory. >> this is all good food for thought. [laughter] it is going to make a very interesting broadcast amazon want a large share of the toy market there's speculation it is going to launch its own private
label toy, operation -- that's going to hurt mattel and hasbro invading that turf. >> it is what they didn't want to hear if you're a shareholder you don't want aiming dison amazon coming after you but you talk about monopoly and the government coming into them. they're spreading out horizontally so they're moving into different sectors. so this is an area not in but bigger margins good for the stock. >> that amazon i'll tell you. >> can you imagine a discounter really what amazon started out in bocks books now being a respected brand i'll buy amazon cable from my computer because i know it will work, and that's what's going to happen with toys. >> they're smart to occupy space and left vacant by those at tois rues. >> dark what i brought her out of the crib she said is daddy where's alexa because she hears her brothers and sisters. >> my three-year-old twin
grandchildren little girls they've got what is it -- amazon dot for kids -- they've got it in their room they get up and say oh, what's the weather today? how shall i dress? and my dad got his first echo other the weekend for his birthday stuart he's been on set with this before and he love it is he calls me and tells me all things he's been talking to alexa about. >> never going appear in my home what i have to say it would be interesting to hear what i've got to say but not going to see it. fox -- here i was thinking it was plastic shoe people -- okay. sorry but may sound that but there you go. they are plastic and shoes rapper post -- [inaudible conversations] post malone do you know who that is? >> you read the script. >> he's a rapper you want me to read i can just tell you the story how about that? >> fine. so post malone and as are getting together on another deal after the the rapper first shoe sold out in less than a day they
cost $60. they're, you know, all i would show you picture but -- i don't know if that would be -- >> plastic shoes is is that it? >> resident hip-hop expert here at fox business so i'll speak to this. they're trying to go after completely not just younger demographic but in urban demographic after post malone i don't like it or think it is going to work or reason to buy the stock but what we're talking about it, and so kids in inner cities are talking about it. >> post malone has crocs. >> but name recognition gone from 38 in teens to 13th in the year and a half. this is a big deal. >> that company was less than dead a few years ago we thought it was going out. it is a complete rebounding stock gone up what 500%? >> huge rally after a big selloff they got their markets story right and zimmerman turn that story around i think it is tough for crocs to recreate what
they have when they first came out. >> so yellow barbed wire and charms -- [laughter] >> if that matters to you. zibit got to have them. it's that time. thanks very much indeed dr mr. murphy thank you one and all. check that big board not quite the high of the day but we'll take it. up 300 point one and a quarter percent. general motors, launching a major lobbying blip to keep those tax credit for electric vehicles. president trump says those credits have to go. there's a story for you. we're waiting for google's chief sundar pichai greated from both sides of the aisle today you're going to see it right here fireworks included. and the video game revolution just gets bigger and bigger. e-sports are giving the super bowl a run for its money wait until you hear how many people around the world played gamers
>> breaking moments ago google's chief arrived a moment ago on capitol hill. in just a few minutes he takes what we might call hot seat as answers questions from house judiciary committee and, of course, in volatile times no clue how market will end the day but right now we're up 323 points general motors lobbying hard, to save the electric vehicle tax credit. tell me more. >> so you get 7500 back if you buy one of their electric vehicle, and if you sell around
200,000 of these cars, well that expires in a tapers off throughout the year. so what gm is doing right now is lobbying the government to extend that policy. so more consumers will buy knowing that they'll get some of these 500 dollars back, but as you know with the 14,000 job layoffs in north america just being announced we have heard from the administration and president trump who says he might be looking at cutting those rebeats. >> got it now by the way general motors and stock and ford and fiat up this morning because kellyanne conway suggests that the -- that the the tariff on american cars going to china will be cut from 40% to 15%. that came out moments or about a few minutes ago and our autostocks are rallying. then we have -- some in canada not too happy about prime minister justin trudeau emissions tax. >> sound a lot like france hoping to raise taxes --
to yes improve government but then you hit poors what justin trudeau is trying to do in canada he's trying to increase taxes on carbon emissions to combat climate change. so people will have less emissions in the future they won't drive as much. they won't emit as much pollution. but as you know, canadians i would say globally no one wants to pay high per taxes. >> no does -- why would you want to do that? >> especially when it hasn't been proven, there's a direct related cause. >> and you're i trying to take care of a problem in the way distant future and you have to pay for it now that's not -- >> who you hurt in the end it is the middle class people that need to pay more to drive and those are usually lower income individuals. >> we've got staggering numbers audience numbers if for an a e-sports video game contest. now this is called the legal of legends a people watching other people play video games.
astonishing number of people. wow 99.6 million viewers to watch others play video games that is like the super bowl almost isn't it on the broadcast -- audience? >> last year's super bowl was 103 million audience and this is a video game deal, with almost 100 million. >> in south korea 23,000 actual fans in the stadium to watch these finals what does that say about e-sports large viewership number that any e-sports event has seen in history and there's only upside growth. >> that could be headed to the olympics. i can see that as olympic sport not out of the question. >> you have a problem with that. >> forget about medals but dollars and revenues involved, right? because right now i think revenue is at a billion it could go so much more from here. >> you have an audience of 100 million people tuning in and streams there's revenue coming from 100 million people in the audience. that's huge. absolutely huge. >> think about more 100 million in the future.
>> market giving up a tiny bit of ground we were up 3:30 now we're up 270, 267 to be precise in the tbreen moments away from the head of google testifying on capitol hill. he's going to pay some tough questions about that sentured search engine they're thinking about for china. should a company that says, don't the evil agree to work with the chinese communist government that's a pretty good question. we'll answer it too. think your large cap equity fund has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at alpsfunds.com/amlp
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>> just a few minutes ago, the dow was up 330 points actually 350. now, we're up 240 i wonder what went on. i have an answer for you in just a moment but i have to tell you only minutes away from a google chief getting grilling on capitol hill. edward lawrence is there waiting for this to go forward. he's going to face tough questions from both sides right edward? >> exactly tough questions stuart, republicans representative of the chairman currently of the judiciary committee is concerned about an antipolitical bias that google has a shown also concerned about possibly the fact that google is willing to work with chinese government that censures people and a search engine as well as
negative trade headline the detention of a formaller or canadian diplomat in china. >> yes. michael the diplomat has been working for the international crisis group a big think tank he's been detained a few hours ago. the chinese foreign ministry isn't saying why he was taken. but everyone in beijing right now is speculating that this is payback for huawei detention of the cfo. >> that would be a negative tit for tat. >> get worse than that so people were thinking couple of days ago that the chinese would take a canadian of some sort in china. and this very well may be it. >> interesting. okay let's talk about google their appearance today on capitol hill. you are a profound opponent of google doing what they're doing in china. spell it out. >> couple of things first of all there's a sensor search engine but it is also linked to phone numbers so it is not just censored search. it is also enabling surveillance
of chinese citizens. also, you know, people have been talking about google not participating in project of the pentagon that's the ai for drones, also not bidding for the cloud computing. in china, google has an ai venture in beijing, and also there's some reporting that it is about to enter into a joint venture in unway province for computing on other side is an entity linked to people liberation army. you know i can understand google employee saying we toangt work for pentagon or defense contractors but here, it looks like they're working for chinese government and the chinese military. >> why are they doing this? their motto is now do the right thing it used to be don't do, don't be evil. now the motto is do the right thing. how can they have that kind of -- message that kind of statement when they're doing this with china? >> yes, it is also should be don't be stuart because google left in 2010 because china hacked into its --
internal computers. found, for instance, source code which it took and then also went into gmail to look at the e-mails of chinese. so that's why -- they did that. that's reason why google left in 2010, took out most of its business operations in china. not all of them but it was because the chinese government was acting in extremely way, and now you have google thinking of going back in in ways which are only going to help the surveillance state. this really is not only ethically wrong but it is just dumb. >> all right gordon chang asia watcher i do hope ho congressman offer those kind of questions from informed base like you. thanks gordon, appreciate it. nows he is literally one of the most powerful people in the world. and he is about to answer questions about privacy. conservative anticonservetive bias, china on operations there the google chief on capitol hill, next.
stuart: we are about to see one of the most powerful people in the world hauled before congress. sundar pichai, he runs google. he is about to face the house judiciary committee. google knows everything about you. where you are, the information you search for. they read your gmail. for some, myself included seems like george orwell's big brother has arrived. google propose as search engine for the communist china government to be a censor for a billion people. i hope you see hard edged questioning from both sides of the aisle. there will be grandstanding. television does that to politicians. this will be the response of the legislative branch of government to the extraordinary power for companies like google. this hearing may offer has a hint what we as a society will
do about this power. you will see it here. this is hour two of "varney & company." stuart: we're waiting for the hearing to begin. let's check your money on the dow. 24,693 is where we are. we had positive positive comments on trade by kell kell and the president this morning. that is moving boeing, caterpillar, 3m, united tech, all of them sharply higher. by the way, look at big tech names. we check them every day. cowan and company says the amazon is the net idea for next year. susan: that is original. stuart: wait for it. it is solid global revenue growth for several years. susan: wow. insightful. stuart: amazon is up 21 bucks at
1662. the price of oil, it's come back. it is now at $52 per barrel, 52.24. that is a 2% gain. scott shellady, is with us. tjm managing director. i want to talk about this volatility. seems the stock market are entirely driven by the headlines read by algorithms, computers take over. you have these wild swings. i don't see any end to it, do you? >> no. the regulators have starting to look into it more and more as of late, yes. i've seen things, stuart, where you have some pipes hooked up to the likes of ibm's big computers where they read all the tweets in the last 15 minutes about anybody talking about any stock that is listed on the new york stock exchange and then they attack. so they're way ahead of the game. it is still the wild, wild west when it comes to technology in this industry. we're still grappling how we'll
regulate that. let us put aside the fact we have google and facebook out there doing other things as well. this whole world of technology, whether be in finance or personal life, is still in the wild west. we haven't begun to get a grip how we sandel it. stuart: talk to me about sundar pichai head of google who is about to answer questions from the house judiciary committee. i think of google as big brother. i don't like it. what say you? >> 93% of the all the information goes through them, that search engine. i agree 100%. here what i don't like. i agree with what you say. facebook, snapchat, instagram, i can say i don't want to be part of that, take myself back out of it, right, i can defer. but it is hard to run a business, hard to look for people to hire, hard to do anything this world without using search engines, service providers over here. tough kind of engage. you can't take yourself away from it. so they kind of have you, right?
now they have all the information on you. you can't get out from underneath them. and that's dangerous. we've seen the facebooks of the world, social media sites can't regulate themselves. we're getting around to that. 93% of almost everything goes through the search engines of googles of the world, that is a much, bigger problem, a more powerful problem need to be rectified. stuart: do you think they will lay a glove on him today in a way that will affect the stock? >> i don't truly believe the lawmakers, this is not a slam against them, i'm not sure they understand the severity. in our business technology rule the day. it displace ad lot of my friends, people i worked with the last 30 years. i know the cutting-edge of that technology. i'm not sure they grasp the fact that everything we do goes through the providers. today we'll get a little bit of comfort, maybe a little bit of clarity, a lot of grandstanding you talked about earlier. i don't know if they come in
with the boxing gloves like they should this is power that needs to be fought with power. stuart: they should do, a little grandstanding can be acceptable here. i would love to see that. scott, thank you very much, see you soon. katie pavlich is with us, "town hall" editor and fox news contributor. katy, same question i asked of scott a minute ago. i think google big brother. i don't like it. what do you say? >> it is not government sanctioned big brother. you can argue they are a monopoly and needs to be some regulation and break up of the company. the truth when you search for things in google, you're not paying for the service in cash. you're paying for service in data. economics 101, as we all know, we hope more people take economics in college. there is no such thing as a free lunch. there is no such thing as a free search engine service. no such thing as free google
maps. it all comes at a price, big brother, google knowing everybody about you. there are services available, but guess what? they work exact same way. they take your data in the free service they're providing for you. stuart: no question about it. it is a free service and i like the free service. look what happened to me. a couple weeks ago i get a phone call on my landline. a voice from india, offering me medical services. they had read my gmail about a minor medical problem i had over past couple years. they read my gmail, called me up out of nowhere, say, we can fix this for you, mr. varney. i don't like that at all. what is going on? >> i'm very impressed you still have a landline, first of all. the second thing is, look, it is always very strange, the big joke now, that you will be thinking about buying a toaster oven or have a conversation with your friends about things you're interested in exploring and
purchasing, all of sudden you show up with an ad in your email or phone, scrolling through twitter or instagram. all of sudden an ad for something you didn't type into a search search engine you talked about with your friends. there are questions about targeting advertising. who they are selling your data too. giving confidential information for a phone number. especially something like medical information. those are very serious questions. but at the same time it is still, quote a private company. and so until there are more alternatives and better ways to pay for those services i'm not so sure there is much we can do about it. i hope the ceo today is honest about their practices. it is just a matter of them trying to cover up, obfuscate, not talk about what they're actually doing. be honest about the fact the majority of people working at google do have a conserve bias. they work at conservative websites like "town hall,"
wright part, to squash speech. we hope they are objective to open to all points view and they aren't. stuart: the idea that google will create a search engine just for china to allow china to surveil over a billion people and go after dissidents really easy. we can't stop you from doing it because you are a private company, but don't do it. what do you say? >> have some principles, have dignity, stand up for human rights as an american company. china will not only use that to their advantage to go after innocent people in china but they will use it against the united states as well. they should think about that market. stuart: katie, thank you very much indeed. they started the hearing. the chair gaveled everyone to order. making a quick opening statement. are we tuning in for this? we are not.
as he starts to speak, that is the house judiciary committee. there are a few weeks left, couple weeks left, mr. goodlatte. kevin mccarthy is giving an opening statement there. this is the republicans still run the house. they have only a couple weeks left. they have to get this hearing in now, because the whole makeup of the judiciary committee changes come january. gerald nadler will be in charge of it, not mr. goodlatte as he is in charge right now. >> i would argue that is comes to google's terms. sundar pichai, missed sending high-ranking hearing in september hearings with sheryl sandberg in attendance and jack dorsey of twitter. this sundar pichai, okay we'll go to washington. we'll listen to what lawmakers have to say. they were roundly criticized for that. there is more scrutiny after they failed to show up in september.
stuart: here is what you will see. very shortly, sundar pichai makes his opening comments. we know what he is going to say. he says no, we're not politically biased. that is the not kind of company, that is not the kind of people we are. he will say that in his opening remarks amongst other things. what you're really going to see later, some high-end, high-stakes political theater. congresspeople will go after mr. pichai because of privacy, because of that search engine in china, and because they're extremely powerful and just like big brother. so what are we as a society going to do? susan: tracking your location even though you turn off the location tracking services in your settings. what about google plus? did they inform users in advance for enough time before they discover ad bug or hack revealed more personal data? bias, as you mentioned liberal bias, biased against conservatives. what they're doing in china and
pentagon. what about the google walkouts have to do to sexual harrassment and payouts to high-ranking executives when they leave? stuart: they have a lot to go. katie, are you still there? >> i'm here. stuart: excellent, excellent. thank you very much indeed. do you think we'll get a hint today what we as society might do with these intrusive social networks. >> well, if people are paying attention closely to the hearing, i know you're going to be airing a lot of remarks from google's ceo, people will have to make the decision whether they want to exchange their information for the service. now google is a monopoly in a sense is. they have, they have, i would say the best search engine results. they have a monopoly on the kind of apps that we use on email services that we use, so really comes down to a choice what people are willing to give up in exchange for that service. i'm not quite sure that people are willing to give up the convenience of google maps and
their gmail account to express some kind of outrage over what google is doing. now the issue, i think is going to be, whether google's business practices, whether they are legally allowed to sell your data, or continue to use your location even though you turned it off. that is not consent, right? that is not consent for them to use your location. people need to be more wary as consumers, what they're signing up for, willing to give up in exchange for a free service. stuart: i think the public feels differently about the googles of this world, five or six years ago. five or six years ago, there were a godsend for communication. they put everybody in touch with each other, and ran a free service. now i think they're regarded as big brother. >> i think it is two things. people putting amazon alexa in every single room of their house voluntarily, giving up the information. alexa listens to the
conversations. people decide to get rid of social media accounts. prefer to get a phone call or email. people go back to fax machines getting important information they don't want read by big government companies or by the government. they will fax stuff to people because they are worried about the intrusiveness, how this information and data is being used. so i think it is two extremes. one-half, people given up i'm willing to have convenience of alexa or google in my home. to use it on my smartphone to get me where i'm going. on the other side i really don't like that. i'm not willing to give up my privacy or data in exchange for a service. stuart: we'll listen in for a moment, bob goodlatte, the chair of the judiciary committee is organizing this hearing. sundar pichai on your screen has taken his seat. let's listen in briefly. >> thank you, mr. chairman. i want to take a moment to
recognize danielle brown whose last working day for the committee tomorrow. danielle served on judiciary committee democratic staff in more than a decade in variety of roles. staff assistant, council, parliamentarian and chief legislative counsel -- stuart: what you're listening to right now. that is gerald nadler. the ranking committee member on the judiciary committee. he becomes the chair of the committee come january when democrats take control of the house. now he is going to be a making a statement. he will be asking questions. they will probably be fairly hostile questions because both sides of the aisle will have a go at google today on the privacy issue and certainly on the china issue and their power to release information to third parties. that is a big issue today. susan: as the president said we're at antitrust or possibly antitrust time with the big tech like google.
they control so much our lives. 90% of online search. 1.8 billion people get a youtube every month. that is a lot of power and messaging that you control. stuart: by the way, as we start proceedings on capitol hill, the stock price of google is up about $10. i have no clue how we will end this day. the dow jones industrial average, as we start these hearings, is up 200 points. it was up 350 earlier. again, no clue as to how we close out the session today. but you are going to be seeing some high-level, high-stakes, political theater. we just getting to grips with what's going on with social networks in our society. we're just trying to get to grips with that brand new, very invasive technology. hamet dylan, republican national lawyers association. you are one of the lawyers who
represented one of the people at google who was censored because of his conservative views. i have been saying all morning. google to me is big brother. i don't like it. what say you? >> i couldn't agree with you more, stuart. i represent former google employees or people who applied for jobs at google and or white or male and there is discrimination at idealogical viewpoint. what sundar pichai will tell congress is simply not true. there is ample evidence with my clients and others. google suppresses conservative voices on youtube. they encourage advertisers not to advertise on "breitbart." google engages in all kinds of other filtering and suppression activities that are highly questionable. that is just on the conservative side. but as you mentioned this morning they are willing to work hand in hand with the most authoritarian dictatorships in the world such as china and
others to customize those nations surveillance on their own citizens enabling human rights violations. this is pretty terrible stuff when you combine the lack of morality with the huge market power. stuart: do you think this is the start of our society coming to grips with social networks, coming to grips with this technology, and trying to work a path as to how we either regulate it or break it up or some way control it? is this start? >> stuart i wish i could say i believed that, but i actually don't. this isn't the first time there have been hearings on this. we had hearings in september and earlier. what you saw members of congress frankly don't understand social media or the internet. it is kind of embarrassing for me to see that type of performance. they will read out statements that their staffers wrote for them. they're all getting paid by google and facebook and these companies through their lobbyists. the way things work in washington. people talk about it, nothing
happens. we had conservative administration for two years. they have done absolutely nothing in the trump administration to look at antitrust issues, to take action, ftc and fcc, whose job it is if a company steals our data, lies to us and they're held accountable. none of that happened so far. stuart: there is no liability. >> they come and lie to congress. what sundar pichai is saying there is no anti-conservative bias. it's a lie. i can't put it other way. people will nod or ask him questions respectfully as if he has special insight. reality like that corporation, many others answers to the almighty dollar or yuan. there is a big market in china. the chinese market is much bigger than the european market. they don't really care there dictatorship there where people are being blocked from searching for nobel peace prize or human rights or dalai lama, other important phrases this is much more dangerous, one other point,
recently google ban ad top chinese dissident from visiting google's headquarters in new york in the united states because they were afraid google might upset china with the dragonfly thing going on if they allowed it. that is what we're talking about. stuart: extraordinary stuff. appreciate it on very important day. >> my pleasure, thank you. stuart: listen briefly to chairman bob goodlatte as he gets the proceedings going. >> at its best google's algorithm reaches the best answer in the least amount of time while providing choices to user by ranking pages most relevant to the search inquiry. of course by ranking pages, google's search always favors one page over another. this kind of bias appears harmless. after all, the point of a search is to discriminate among multiple relevant sources to find the best answer. this process however, turns much more sinister with allegations that google manipulates its algorithm to favor political
party it likes, the ideas that it likes or the products that it likes. there are numerous allegations in the news that google employees have thought about doing this, talked about doing this and have done it. the dangerous implications to a fair, democratic process cannot be understated. one study performed by psychologist robert epstein has revealed that internet search rankings have a significant impact on consumer choices, mainly because users trust and choose higher-ranked results more than lower-ranged results after performing five relevant, double blind, randomized experiments using 4566 undecided voters representing diverse demographic characteristics of the voting populations of the united states and india, the study revealed that biased search rankings can shift the voting preferences of undecided voters by 20% or more. the shift can be much higher in
some demographic groups and search ranking bias can be masked so that people show no awareness of the manipulation. the potential for this kind of bias is clearly problematic and is further compounded by the fact that google every day collects mountains of information about its users while they are actively engaged with a google product or even when they are not. according to a study conducted by vanderbilt university a dormant, stationary android phone with chrome active in the background, communicated location information to google 340 times during a 24 hour period, or at an average of 14 data communications per hour. the location, the collection of location data may be obvious to most users but they are often unaware of the many sensors that the android platform supports, including accelerometer, a
barometer and photo meter, these sensors in addition to the camera, microphone on a mobile device can colate into a very active picture where a user is, what they are doing and who else is there. the shocking amount of information that google collects via its phones was recently featured on "good morning america" which a reporter using an android phone no sim card, wasn't connected to the internet discovered that the phone collected the device's movement, even identifying the mode of transportation such as the subway or even a bicycle and at types, taking 10 sensor reads per minute. moreover, google's practice of reinforcing its dominance in light of allegations of self-serving bias creates little choice for consumers across the spectrum of internet-based products or services. given that google ads show up on non-google websites and google's search engine is being used as
default search tool on other products, such as the apple phone, it is almost impossible to avoid google all together. google in many things, google is many things. it is one of the largest data collectors ever seen in human history. it is an advertiser that can get the right product to the right customer at precisely the right time. google is also an internet giant, directing over 3.5 billion searches per day. with this massive authority however comes the potential for far-reaching abuse. the mere suspicion that google manipulates its products and features for self-serving or even political purposes raises serious concerns about its business practices, its impact on free speech, and our democratic process is and americans trust that the information gathered about them in their day-to-day lives is done with their knowledge and is not being used against them. my hope is that through our inquiries today we will insure
more transparency and accountability going forward. last, despite the nature and scope of today's hearing, google is still the story of the american dream. the company was started by two individuals in a garage and grew to be one of the most successful companies in the world. two decades ago we could not fathom instantaneous access to more information than that which is contained in all the encyclopedias in the world. now we take that for granted because of the innovative services google provides. with that, i want to again thank our witness for his presence here today. i look forward to his testimony. my pleasure now to recognize the ranking member of the committee, the gentleman from new york, mr. nadler for his opening statement. >> thank you, mr. chairman. mr. chairman our society is becoming increasingly reliant on social media and other online platforms, share create, sort information. this information helps us make decisions ranging in importance
of where to make dinner reservations to which candidate to vote for in the presidential election of the public's increasing use of these platforms generated many positive benefits for society. it has also given rise to some troubling trends. google is the among the dominant firms in this field. as such, given the public's widespread use and reliance on its products and services there are legitimate questions regarding the company's policies and practices including with respect to content moderation and the protection of user privacy. before we delve into these questions, i must first suspense with completely illegitimate issue, fantasy, dreamed up by some conservatives that google and otherren line platforms have anti-conservative bias. as i said repeatedly no credible evidence supports this right-wing conspiracy theory. i have little doubt my republican colleagues will spend much time a laundry list of anecdotes an, out of context
statements of google employees of evidence of anti-conservative bias. none of that will actually make it true. this fact-free propaganda helps generate mistrust that the majority leader referred to a few moments ago. even if google were deliberately discriminating against conservative viewpoints just as fox news and sinclair broadcasting, conservative talk raid show show host rush limbaugh discriminate against points of view that would be its right as private company to do so, not to be questioned by government. during the reagan administration about 35 years ago the federal communications commission appointed by ronald reagan abolish what we used to have what can he call the pairness doctrine, which placed obligation on broadcasters to use the public airwaves to be fair to different points of view. this question might be relevant if the republican members wanted to bring back the fairness doctrine and expand its scope to
social media companies. i doubt we will see any interest in doing so. but we should not let the delusions of the far right distract us from the real issues that should be the focus of today's hearing. for example, we should examine what google is doing to stop hostile foreign powers from using its platform to spread false information in order to harm our political discourse? it has been more than two years since the 2016 election, yet this committee has not held a single hearing focused on russia's campaign to manipulate online platforms to undermine american democracy despite the fact it is the consensus view of our intelligence agencies that russia engaged in a massive disinformation campaign to influence the 2016 election. i hope that mr. pichai can tell us what actions google has taken to counter this unprecedented attack while gaps remain if defenses as not be specific to give guidance to foreign powers.
this may help congress to determine what more can be done to further insulate our democratic processes from foreign interference. we should examine how google enforces community standards that prohibits racist or bigoted threats and inappropriate conduct. they have also provided a new tool for those seeking to stoke racial and ethnic hatred. the prejudices of hateful conduct and content on platforms made all alore alarming by hate motivated violence. according to statistics released by the fbi, reported incidents of hate crimes rose 17% last year compared to 2016. marking the third consecutive year such reports have increased. the horrible massacre at the tree of life synagogue in pittsburgh, recent murder of an african-american couple in kentucky grocery store, killing of inindian engineer in kansas are not sadly outbreaks of violence but examples of a
troubling trend. we should consider to what extent google and other online platforms may be used to foment an disseminate such hatred and thousand these platforms play a constructive role combating its spread. as the dominant player in the field google has significant market power. it is useful to examine its policies and practices to insure other companies are able to compete in an open and fair marketplace. there are also concerns about the prevalence of pirated material available on google and other internet platforms at the expense of legitimate content. finally, it is important to know why google is doing to protect its user data privacy, data security. "wall street journal" recently reported that google discovered last month a bug in a social media platform, google plus, had exposed the private profile data of up to 500,000 users to third party developers. not to disclose the issue publicly, not even to those who may have been affect the at
time. just yesterday the company announced it discovered another google plus bug that may have exposed private profile data of millions of users. while google so far found no evidence that developers have in fact abused these bugs or any user profile data has been misused in any way, incidents like this still raise legitimate questions about what types of data exposures a company is obligated to expose publicly. it raises questions how much control users should have over their own data, how such controls should be regulated. i'm also disturbed by recent reports that google is developing a search engine for the chinese mainland market. according to the reports the search engine would not only accommodate chinese government censors, it might allow the chinese government to track individuals by linking search terms to the user's mobile phone number. unfortunately this our fourth hearing devoted entirely to fictitious allegations of anti-conservative bias by internet companies we will waste more time, more taxpayer money
on elevating well--worn right-wing conspiracy theories instead of concentrating on substantive questions and issues that should be the focus of our hearings. our committee can and must and will do better. i yield back balance of my time. >> thank you, mr. nadler. we welcome our distinguished witness and if you would please rise, i will begin by swearing you in. please raise your right hand. do you swear that the testimony you are about to give shall on the truth, the whole truth and nothing but the truth. so help you god? >> i do. >> let the record show that the witness answered in the affirmative. our only witness today is mr. sundar pichai. mr. pichai is the chief executive officer of google. your written statement will be entered into the record in its entirety and we ask that you summarize your testimony in five minutes. to help you stay within that time, there is a timing light on your table. when the light switches from green to yellow you have one minute to conclude your
testimony. when the light turns red it sig is unless your five minutes have expired. mr. pichai, you are very welcome, and you may begin. >> chairman goodlatte, ranking member nadler, distinguished members of the committee, thank you for the opportunity to be here today. i joined google 15 years ago and have been privileged to serve as ceo for the past three years but my love for information an technology began long before that. it has been 25 years since i made the u.s. my home. growing up in india i have distinct memories of when my family got its first phone and its first television. each new technology made a profound difference in our lives. getting the phone meant i could call ahead to the hospital to check whether the were in instead of taking a two hour trip. there the television had only one channel but i couldn't be more thrilled by its arrival. those experiences made me a
technology optimist and i remain one today. not only because i believe in technology but because i believe in people and their ability to use technology to improve their lives. incredibly proud of what google does to people around the world especially here in the u.s. i would like to take a moment to share a bit of background on that. 20 years ago, two students, one from michigan, one from maryland, came together at stan ford with a big idea. to provide users with access to the world's information. that mission still drives everything we do. whether saving a few minutes on your morning commute or helping doctors detect disease and save lives. today google is more than a search engine. we are a global company that is committed to building products for everyone. that means working with many industries from education and health care to manufacturing and entertainment. even as we expand into new
markets we never forget our american roots. it is no coincidence that a company dedicated to free flow of information was founded right here in the u.s. as an american company we cherish the values and freedoms that allowed us to grow and serve so many users and i'm proud to say we do and we will continue to work with the government to keep our country safe and secure. over the years our footprint has expanded far beyond california to states such as texas, virginia, oklahoma, and alabama. today in the u.s., we are growing faster outside of the bay area than within it. we have the great opportunity to travel across the country, to see you will the places that are powering our digital economy from clarkeville, to pittsburgh, to san diego where we recently launched a partnership with the uso to help veterans and military families. along the way people depend on google to learn new skills, find
jobs or new businesses. over the past year we supported more than 1.5 million american businesses and over the past three-year we made contributions of $150 billion to the u.s. economy. added more than 24,000 employees, and paid over $43 billion to our u.s. partners across search and android. these strengthen our communities and support thousands of american jobs. they also allow us to provide great services to our users to help them through the day. it is an honor to play this role in people's lives. it is one we know comes with great responsibility. protecting the privacy and security of our users has long been an essential part of our mission. we invested in enormous amount of to bring choice, transparency and control to our users. these values are built into every product we make. we recognize the important role of governments, including this committee in setting rules for the development and use of
technology. to that end, we support federal privacy legislation and propose to leaningtive framework for privacy earlier this year. users look to us to provide accurate, trusted information and we work hard to insure that it is integrated in our products. we put a number of checks and balance in place to insure community to develop with our standards. i lead the company without political bias and work to insure our products continue to operate that way. to do otherwise would be against our core principles and our business interests. we're a company that provides platforms for diverse perspectives and opinions. there is no shortage amongst our employees. some googlers are former servicemen and women who served in defense of our country. some are civil libertarians who defend fiercely freedom of expression. some are parents who worry about the role technology plays in our households.
some like me are immigrants who are profoundly grateful to the freedoms and opportunities it offers. an some of us are many of these things. let me close by saying that leading google has been the greatest professional honor of my life. a challenging moment for our industry but i'm privileged to be here. i greatly appreciate you letting me share the story of google and our work to build products worthy of the trust users place in us. thank you for the opportunity and i look forward to answering your questions. >> thank you, we'll proceed under the five minute rule with questions i begin by recognizing myself. mr. pichai is it true that the android operating system sends google information every few minutes detailing exact location after smartphone within a few feet, the speed of. move the phone, altitude of the phone, sufficient to determine what floor of a building the phone is on, the temperature surrounding the phone and other reads? if so, with americans carrying
the phones with them virtually at all times, doesn't the collection of that volume of detailed information really mean that google is compiling information about virtually every movement an individual with a smartphone is making every hour of every day? >> mr. chairman, thank you for the question. today, for any service we provide our users we go to great lengths to protect their privacy and we give them transparency, choice and control. android is a powerful platform and provides smartphone for over 2 billion people. as part of that it depends on the applications users choose to use. if you're using a fitness application, which is depicting number of steps you walk you expect it to send that information but it's a choice users make. we make it clear and it depends on use cases. >> so the answer to my first question yes, is that correct,
the information i cited is gathered by google? >> in, if the, for google services, you have a choice of what information is collected and we make it transparent. >> i understand. there are uses that consumers maybe use of. i use it to keep track of number of steps i walk. i understand that service that, one of your competitors provides. so i understand that purpose but do you think the average consumer understands that google will collect this volume of detailed information when they click through the terms of service agreements in order to use the android operating system? >> it is really important for us that, you know, that average users are able to understand it. this is why we do something called privacy checkup. >> you think average users read the terms of service and updates very frequently sent to us? >> beyond the terms of service we actually offer, remind users to do a privacy checkup and we
make it very obvious. every month. in fact in the last 28 days, 160 million users went to their, my account settings, where they can clearly see, what information we have. we actually give, show it back to them. we give clear toggles, by category whether they can decide whether that information is collected, stored or more importantly, if they decide to stop using it, we work hard to make it possible for users to take their data with them, if they choose to use another service. >> let me switch to issue of section 230 of the communications decency act. you heard me say in my opening statement that this provides broad liability protections for you and other technology companies for good faith restrictions that, when google thinks something is obscene, lewd, lascivious, filthy, excessively violent, harassing otherwise on just shunnable.
however on just shunnable material however applied elicits most engagement of users. for google increased engagement means potentially increased revenue. it is important for google to make very clear where it draws the line and i don't believe google has done its best to make that clear. would google or youtube be willing to make changes in support of healthier civic dialogue if doing so met a drop in user engagement metrics? >> absolutely, mr. chairman. we have a long track record. we have focused on long-term goals to user satisfaction. we focus on their knowledge, happiness, success, that is what we work hard to create. it is important to us that platforms like youtube are viable over the long run. it is in our natural incentive to do so. youtube is placed where users, advertisers and content creators who make their livelihoods use the platform. so we want to make this work in
a sustainable way. >> when it comes to political advertising, as you know, some of your competitors in other advertising media are required by law to offer the same rate, the lowest rate as a matter of fact, to all political candidates. so for example, that's true in television, radio. would google, should competing political candidates be charged the same effective ad rates to reach prospective voters? >> our advertising products are built without any bias and that rates are set by a live auction process. depending on the key words which you're bidding for, depending on the demand that is in the auction, the prices are automatically calculated. so you know the system decides that. >> i understand it is automatically calculated but could two competing political candidates targeting the same audience see different ad rates?
if yes, could that disparity be substantial? >> there wouldn't be a difference based on, you know any political reasons, unless there are key words which are particular interests in the market domain. so it is essentially a supply demand equalibrium. it can equate to difference in rates vary from time to time? >> could the rates be very substantial in difference? >> yes. there could be difference in rates. i haven't looked at specifics of it. >> the result is different than in other markets or radio where every candidate entitled to the lowest rate that that television station or radio station offers to any political candidate for office? >> we, you know, there could be variations based on the time of the day, the key words you're choosing to go for. you know the geographies you're advertising in, but it is
decided by the system. it's a process we've done for over 20 years. let me assure you, anything to do with our civic process, we make sure we do so in a non-partisan way. it is really important for us. >> thank you. the chair recognizes the gentleman from new york, mr. nadler, for five minutes. >> thank you, mr. pichai. according to media reports google found evidence that, well, let me go with the other one first. google found a bug in its google plus social media platform that could have potentially exposed the private data of up to half a million users without the consent of third party developers. google however did not disclose the bug until months later after it was revealed by a report in the "wall street journal" yesterday as i mentioned before they found, you announced another bug. what legal obligations is the company under to disclose data exposures that do not involve sensitive financial information but still involve private, personal data like user's name, age, email address, or phone
number? >> congressman, we take privacy seriously. the bugs you mentioned are bugs, we found them by either doing an audit or, you know, using our automated testing systems. when we find any bugs, it gets escalated to the privacy -- >> i'm not criticizing what you do. i'm asking what legal obligation is the company under to expose data exposures that doesn't involve financial information but involve other personal information. >> it depends on the situation. we follow the requirements. in that case, in the first case, typically we look at our legal requirements but we go above and beyond to make sure we do the right thing for our users. in the first case there was no evidence data was misused and -- >> i understand all that. my question what legal obligations are there? >> in, today, right now, if you
have found a bug, and you, once you have done the investigation and you are certain that the users who are eligible for notification, my understanding that you have 72 hours. we both notify users and regulators in that time frame. >> okay. thank you. according to media reports google found evidence that russian agents spend thousands of dollars to purchase ads on multiple platforms as part of russian agents campaign to interfere in the election two years ago. juniper downs, head of global policy for youtube, testified in july that youtube shut down multiple channels containing thousands of videos associated with the russian misinformation campaign. does google now the full extent which its online platforms were exploited by russian actors in the election two years ago? >> we have, you know, we
undertook a very thorough investigation and in 2016, we now know there were two main ad accounts linked to russia. which, you know, advertised on google for about $4700 in advertising. we also found other limited -- >> a total of $4700? >> that's right. which was, you know, no amount is okay here but we found limited activity, improper activitied we learned a lot from that. we dramatically increased production -- protections around our election offerings. we found limited activity both from the internet research agency in russia as well as accounts linked to iran. >> what specific steps have you taken including the recent 2018 elections to protect against further interference by russia or others who tile foreign powers?
>> we have looked for the origin of these accounts. we share and collaborate, share with law enforcement, other technology companies, we're spending a lot of oversight in this area. >> looking ahead to the next congress, i assume we can have your assurances google will work with this committee as we examine the issue how to better secure our elections from future foreign interference? >> congressman, protecting our elections is foundational to our democracy and you have my full commitment that we'll do that. >> okay, my last question, because the time is running out, what are you doing, what is google doing to combat the spread of white supremacy and right-wing extremism across youtube? >> congressman, youtube is an important platform. we want to allow for diverse perspectives and opinions but we have rules of the road. we have clear content policies
and we have policies against many categories. we are transparent about these policies. when we find violations on our policies we do remove those media and content. >> when you find violation you what? >> of our policy. we have policies against hate speech. we clearly define them f we find any violations we take down content. >> when you take down the content, do you note who put it up so you can flag future content from the same sources? >> we look at it by media by media basis. to the extent we have repeat offenses from the same account, we take into account and we notify the content creator and we notify accordingly. >> thank you very much. i yield back. >> chair recognizes the gentleman from texas, mr. smith, for five minutes. >> thank you, mr. chairman. mr. chairman, googles hawaiis revolutionized world though not entirely in the way i expected. americans deserve the facts
objectively reported. muting of conservative voices by internet platforms has intensified especially during the presidency of donald trump more than 90% of all internet searches take place on google or its subsidiary youtube. they are cure ridding what we see. google long faced criticism of manipulating search results for conservatives. conservative organizations had their pro-trump content tagged as hate speech or had their content reduced in search results. enforcement of immigration laws has been tagged as hate speech as well. such actions pose a grave threat to our democratic form of government. p.j. media found 96% of search results for trump were from liberal media outlets. in fact not a single right-leaning site appeared on the first page of search results this doesn't happen by accident
but it is baked into the algorithms. those who write the algorithms get the results they must want and apparently management allows it. dr. robert epstein, a harvard trained school exist, authored a study recently that showed google bias likely swung 2.6 million votes to hillary clinton in the 2016 election. goggle could well elect the next president with dire implications for our democracy. this should be of real concern to all but the most politically-partisan. those at the top set the tone. it will require a herculean effort by the chief executive and senior management to change the political bias now programmed into the company's culture. and mr. pichai, let me ask my first question about those examples of political bias that i just mentioned. and you will hear others too. in your opening statement you mentioned your desire to provide
information that was without political bias. clearly that's not working. so what are you going to improve that situation? >> congressman, thanks for the question. if i may, some of the studies you mentioned we have investigated those. there are other studies which looked at that and found issues with the methodology and sample size and so on but let me step back and say, providing users with high quality, accurate, trusted information is sacrosanct to us. it is what our principles are, our business interests, natural long term incentives are al lined. we want to serve users we need to earn their trust doing so. >> so what actions are you going to try to take to counter the political bias in some examples i gave? stuart: what you're looking at has been the opening salvo in questioning of one of the most powerful people in the world, sundar pichai who leads google. the questions have largely
centered on political bias. congressman smith, who just asked the question about political bias at google, came up with a very specific example of anti-conservative political bias on the part of google. mr. pichai kind of denied it and said that we provide non-biased information. that he said is sacrosanct to us. joining us now, is peter morici, who has been following the day's hearings thus far. it seems to me, peter, that mr. pichai is playing heavy-duty defense and is not really answering the questions, the sharp-edged questions about examples of political bias. what say you? >> not only not answering sharp-edged questions he is not answering general questions. he is clearly an artful dodger. playing on the fact that the ranking member challenges whether there is even any political bias at all. he claims he has a neutral workforce, we know by his deeds,
his own deeds, those of his employees that they don't. for example, the unwillingness to work with the pentagon. yet their willingness to work with the communist government in china. the firing of an engineer who raised thoughtful questions about the predilections of men versus women with regard to software engineering. these are deeds he can't walk away from. i will give you a personal example. you right now, type in morici in google search. hit news. i am a regular columnist at "the washington times." conservative newspaper. see if any of those columns come up. they don't. stuart: right. >> whereas in other organs not considered to be quite so conservative they do come up because they syndicate out. there is bias what they do. there is lots and efforts, examples where you're putting in key words and things of that nature on climate change and so forth, you get particular results. what we're seeing here a man
keeps telling us about his values and goals. rostrums and platitudes. counting on democrats to provide cover to continue to run a biased operation and a operation that doesn't understand its nationality. this is company that will work with chinese communists to censor the internet, to screen the news people receive, to alter their perception in jaundiced way of the world, yet won't help the pentagon protect america's borders, protect america's sovereignty, protect the american people by participating in, for example, their research with regard to artificial intelligence, facial recognition and so forth. largely because his employees because absolutely refuse to do so. he should establish a new r&d lab for those purposes in virginia, away from silicon valley, hire a fresh set of engineers see if we get a
different response. stuart: want to bring in howie kurtz. you are watching what is going on. from the media perspective how do you judge the performance of sundar pichai. >>? >> i think his opening statement was tone deaf. with regard to recent revelations apologize, there has been credible evidence about his own staffers trying to cut off the money supply for "breitbart." calling it hate speech. about trying to bury the results of conservative news sites like "the daily caller." this is in e-mails that have been published. he should have said i will not stand for this. we'll do better. we'll investigate. he didn't do any of that he acted like he was disconnected from the reality what we've all seen at all seen at least on the question of political bias. stuart: i don't think these hearings are going to get anywhere appeared the questioners are limited to five minutes each so there can't be an ongoing repartee between the two and which really mr. pichai is really pressed hard.
i don't see that happening. >> yeah, i suspect you're right it would be nice if the members were well briefed enough and organize not to cooperate on the questioning and try to dig a little deeper. he's going to sit up there and give these corporate speak answers. we have seen us before we carried into the big tech companies. it's difficult for congress to lay a glove on these people and it looks like pichai is not exactly world-famous like zuckerberg even though he has an incredibly important company is just going to come you know, kind of politely refuse to engage and we need more aggressiveness by these members. they are the ones providing oversight. stuart: on the show thus far today i've made the point that i don't like the big brother aspect of google. look him i liked a free service, gmail and all the rest of it, but i don't like not being looked at why the oppression of big brother. where do you come in on this one?
>> all big tag, google in particular doesn't sufficiently understand how badly their reputations have suffered in the last couple years as we've all become more concerned about privacy in the wind in china and the political bias which comes out for many of these that they have a lot of left-leaning employees. google more so than facebook and more so than twitter comes as air again. this is the first time pichai has shown up, testified before congress in a given for that. they need to change their perch these issues like privacy and even more aggressive pr strategy that basically they don't care that they're making so much money in a kind of dominate the search area. stuart: they're the most powerful people in the world. they know absolutely everything about you everything about you and i and all of our viewers. i'm not real happy about that. bottom line, peter, if you're still there, the bottom line is thus far these hearings they haven't laid a glove on him.
what say you. >> no they haven't appeared to reflect on the last set of comments is the cultural bubble in google. there is a sense that their values, their personal political values are not those that say oppose conservatives but rather that they are correct. it's a religious kind of thing and people who disagree with them on certain things are immoral. and that's why, for example, they fired the engineer who wrote the memo because he wasn't just given a different perspective or challenging empirical view about gender, but what he was stating was immoral. they are very concerned about, for example, speech that favors white supremacist. what about the speech that blames everything on white people. stuart: peter, i'm out of time. peter and halley, thank you for joining us this morning.
we appreciate it. i must confess i'm a little disappointed this is not going very far thus far appeared by the way, the dow jones industrial average has come off a 350-point gain. it is now up 150 points. now this. have you noticed the king paintings of europe are in deep, deep trouble, all at the same time. it's like a simultaneous blow up. the braves want out but they can't get a deal that works for them. the italians are in revolt over money. germany has a lame duck leader and is heading into recession in france places a populist revolt that is humbled as president. this is all happening now and it's happening within what is supposed to be a unified continent. none of these developments show any sign of revolution. yes it is now crunch time. in my opinion the european union is headed for a breakout. in socialist economy and open borders policy are not
sustainable. the social comeback compact is clearly frayed at the edges. here's something that will make things worse. europe's approaching a recession. bear in mind the current unrest is taking place when things are not that bad. not great, but soon that's going to change. unemployment is going up. times are turning hard. what happens to their socialism and unemployment expected double-digit rates. what happens to national unity when migrants continue to move in. surely it gets really ugly when the recession hit. my point is the european union will not survive its current form. i have no problem with that, but i do have a problem with the financial fallout. it's going to wash over here. wall street reacting to the headlines of the day. i shudder to think how it will react to the coming european breakout. the third hour of "varney & company" is about to begin.
♪ you heard my take. my editorial a deal to chaos in europe a little later in this hour. the other big story we follow today, the google chief is testimony on capitol hill. charles payne, host of making money. deirdre, i'm going to bring her in a second. i didn't mean to diss either. charles, you've been watching us. they haven't laid a glove on the guy so far they haven't nailed him at all an anti-conservative bias. there you go. sorry to interrupt you there, but look at the stock up $10 an ounce of $1.24. >> it doesn't hurt when you have jerry nadler run interference before the whole thing begins. i thought it was so amazing that it was okay for the american company to discriminate and it's none of washington's business. the caveat is against conservatives because he went on
to talk about a lot of racial issues that have happened in this country time and then somehow it to google. i thought it was fascinating that a democrat, high-ranking democrats that it's okay for an american company to discriminate as long as their private company they can discriminate and it's none of the governments business. trade to deirdre, when congressman smith gave evidence and examples of clear anti-conservative bias by harvard psychologist of all people, mr. pichai simply said we question the result and the methodology of the study. >> kia smither in his delivery you could argue whether or not you agree with the message then for example facebook's mark zuckerberg. to the point of all of this, google has 10 times and lawmakers made this point more data on all of us than facebook. if you measure and gigabytes.
google has about 10,000 hours of music listening to facebook say 500. so we can put it in terms people understand. they have a ton more data and i thought lawmakers are good about not only is google tracking online metrics, it is tracking physically where you go in to his credit for google, sundar pichai actually navigated quite deftly around that. stuart: i don't think they've laid a glove on them so far. has been very civilized because we love our conciliatory, a lot more polite than zuckerberg who was awkward and kind of combative. stuart: it turned from a $10 game day on the downside. it is losing -- i don't have it right in front of me. >> that if you look year-to-date , it is more or less performing with the market. it's so close to 1% year-to-date if you look at the nasdaq up 3%. it's more or less in line with
the overall markets. so it's not a performing clearly. stuart: thus far today i'm going to stay big rather is untroubled. >> no, he's chilled out. stuart: thank you very much. the modern expression is looking for. thank you, deirdre. the overall market now. the big word is clearly way off its highs of the morning. it had been a 350. now it's up 120 points. this is still a headline driven market and that is creating these wild swings. or am i going wrong, charles? >> no, you're right. a couple of narratives. the narrative yesterday was the fact that there's a certain level with abiding does come out. that was a remarkable recovery although the internals are really ugly. 10 new highs than 500 new lows. by the same token, the narrative of a profitable strategy for nine years, maybe not the new strategy of selling to the rally. it's been tested right now. the headline you talk about is
perhaps a canadian official arrested in china without any details or not. that was the impetus to start taking sell, sell, sell. stuart: it was up at the opening about because we got positive headlines on trade and started to come down when we got dissertation of a former canadian. >> in the meantime i'm concerned about the message of the market beyond its headlines. when looking yesterday's session, anytime the oil is down 4% in oil is unchanged forever single name in the financial sector from big banks to small banks getting crashed. you've got to be worried about the transportation names, getting crushed. another narrative i don't think it's enough attention that might matter more with respect to the economy. stuart: big tech recovered nicely yesterday up this morning is that leading some kind of rebound? >> initially when the majority thinks the coast is clear the
momentum of consumer services and discretionary higher. we could be in 2019 when we get a bona fide change in leadership because these other names being so oversold. stuart: what you think about all this? >> i am not a buyer of most tech but i know you had gordon chang earlier talking about everything going on between the u.s. and china, talking about huawei and other companies. he said it's going to get uglier before it gets prettier and that is going to affect tech. if someone will retire in the next two years we have a lot of stocks in the basket. if your tenure as her retirement or more think you have time. stuart: i don't know how far i am for retirement. >> are you going to retire completely? i see you always doing something. stuart: yeah, i can't see retirement. i really can't. i have to have a purpose in life. when you get to my age you'll understand these things. you have to have a purpose in life. my purpose in life at the moment is to do "varney & company" and i'm having a blast. >> who would be -- the world be
without stewart's take? stuart: please. now we are up 118 points on the dow industrial average. >> i will say one thing stuart i like these type of sessions as a test. every time we go when we go down lower and we shake more people out and we rally at the test. it's how we create value, how we do price discovery. as violent as it has been, it also does serve a pretty good purpose. stuart: you know, we need you to hold out. we can really do this by watching charles payne on making money weekdays at 2:00 p.m. right here on the fox business network. 2:00 p.m. eastern. go provo move production of its u.s. cameras out of china because of tariffs. that's interesting. i'll do it by next summer. cameras bound for other countries will continue to be made in china.
go pro hasn't said where they'll move production vietnam, thailand, there'll been considered. go pro is down $4 a share down a fraction this morning. other markets we check in at this time start with bitcoin. a 33 handle. how about the price of gold? we've been around 1250. 1248.50 per ounce. the price of oil was down to 50. now it's bounced back up to 52 as we speak. the national average for gas wonderful news keeps on falling. 241 is your national average. let's get back to my take at the top of the hour come in the delivered. the european union to me, this is my opinion, they are headed towards a recession and i think that's going to be the move that breaks them up completely. we are on it. we're also watching breakers prime minister teresa may find to berlin to ask european
leaders for brexit concessions. we just got word shall be in dublin tomorrow. there's the development. in washington, present and trampled meet with policy and schumer. he is meeting at this hour. it's all about funding for the border wall. both sides appear to be digging in. on capitol hill we are listening for fireworks in the google hearing. anything good will bring it to you. this is the third hour of "varney & company." ♪ i am not for colds. i am not for just treating my symptoms... (ah-choo) i am for shortening colds when i'm sick. with zicam. zicam is completely different. unlike most other cold medicines... ...zicam is clinically proven to shorten colds. i am a zifan for zicam.
stuart: britain's prime minister teresa prime minister teresa made beating germany's chancellor and the dutch prime minister happening today. she meets ireland's prime minister tomorrow. look at the map on your screen. we are going to call it her european odyssey all over the place and i doesn't even include the trip to dublin tomorrow. i'd say she has three options. one, leave the european union with no deal.
that's called crashing now. to come except the deal has been presented or three, stay in the european union. those are about the only options the brick house. fred barnes is with us. executive editor, fox news contributor. which of those three is it going to be, fred? >> i don't know. they all sound pretty bad. i think it may be just a yen for britain. obviously the deal is tough that is made with the european union is one that is maybe the worst of all. stuart: if they stay again, that is a national humiliation. >> all say. it's one of the worst i know of. when i look at the european union i always think of the united states. when we tolerate the kind of things that all these countries in europe now rebelling, led by
england with brexit have tolerated for years then you have this huge class all over europe that are clueless. we call it the administrative state here, but it's even bigger, stronger and are not only facing on the sovereignty problems, but as you've been talking about today the threat of a serious recession. >> we just heard from her in ashley webster in london at the moment. he is telling us that sufficient numbers of conservatives, prime minister mais party, the tory party come a sufficient number of conservatives has signed a letter under which they will go forward with a no-confidence vote. if they do that, it looks like they will, the government may fall. so this is becoming even more dire as we speak despite prime minister's round trip from germany to dublin and all over the place.
>> i mean, that's quite amazing. what do you do then? does that make more likely they will have a new vote on brexit? stuart: it means there will be a new government not led by teresa may, possibly led by the socialists. the possibility. i noticed by the way the dow industrial average has come down a little bit. we were up 150 moments ago. now we are up to about 80. that day. this threat of the break of up europe, and the simultaneous crisis happening seems to be washing over here and affecting us. >> it does. as you've called what's going on in the u.s. and the stock market as headline driven in the headlines are mainly coming from europe. here's one of the biggest problems as you know and that is that the bureaucrats don't want to give up. they are being rebelled against all over europe.
i'd like to get one of those yellow jackets. i mean, 30 have been. some countries you don't even read about better change in a way that most people don't like it. sweden is one of those. bureaucrats don't give up easily. stuart: fred, hold on a second. just on a break-in here. i've got news on google as we know this ceo testifying on capitol hill. this is just happening. the latest is the google cheat says the company has no plans to launch a search engine in china. now that is big news because that was a proposal with a harsh criticism. >> it had come under harsh criticism but with billions of people in china this would have been pretty big business. all u.s. tech despite everything going on trying to get in there but i also think between the u.s. and china, no ceo wants
looks like a tit-for-tat detainment situation. not sure about that but it's really affected the market only has 80 points as we speak. check verizon. 10,000 employees have accepted generous buyout plans part of their effort to cut costs. it is a generous severance package they get up to 60 weeks of pay. verizon's reaching $59 a share. elon musk says he might unveil an electric prototype as soon as next year. in the past he it will be a truck with an option for 40500 miles worth of range. tesla is down just a fraction, and down a bucket three flight 63. a list of the top companies to work for. you won't believe one of the companies on that list in the market right now up about 100 points. 101 to be precise. call the volatility. we'll be right back.
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stairway to heaven is going up for auction. no idea how much it will go for but it's not going to be cheap. the console is to studio desks built by helio electronics. bob marley, cat stevens, rolling stones, et cetera, et cetera. heaven knows how much it will go for. we asked. we have to further break the best company to work for. number one, costco, followed by google. t-mobile, hub spot, aflac. that's the name of the company that compiled the data that went to 10 million employee ratings. the companies got lots of points for diversity, inclusion, worklife balance, compensation, cosco number one. a new proposal from the trump administration was that the postal service style access to your mailbox. we'll explain it. as for the market, only up 90 points right now. that is .4%.
we were up 350 and we will be back. ♪ (vo) 'twas the night before christmas and all through the house not a creature was stirring, but everywhere else... there are stores open late for shopping and fun as people seek gifts or even give some. not necessarily wrapped with paper and bows, but gifts of kind deeds, hard work and cold toes. there's magic in the air, on this day, at this time. the world's very much alive at 11:59.
sundar pichai test on a capitol hill. google has no plans for a search engine in china, which could have been used to censor and surveilled a billion chinese people. the stock by the way has turned around. it had dipped a little. now it's back up $5 on google. the overall market shows a very small gain 78 points. that the. this is volatility. we were up 350 and now we are up 70. that is a gain of a third of a percent. the s&p 500 pretty much the same story they are up a half percentage point still. the nasdaq holding onto a nice game because the tech stocks are doing well. the nasdaq is up 20%. a better game than the dow or the s&p. how about the big text. you have to follow closely. all of them up except for apple which is 169. look who's here. you can't get enough of it.
entrepreneur cheryl's managing director. great to see you back again. >> great to be here. >> euros election telling me this market is going up. >> today outside. i mean, this market is tough to predict. it's a very humbling market. just when you think you have some clear direction the market reverses on it. we haven't had a market like this in a long time. i will give you a bit of good news for your listeners some good news. the last time we had a december like this was 2002. if markets ended today this to be the second worst december we've had in 50 years. the worst 1150 years of december 2002, 527% in the following generate an extra is down another 2%, 3%. from 2002 through 2007 we won't talk about 2008. 2002 until 2007 we had one of
his obvious bull markets ever. there is a silver lining. >> the market is run by headlines. they make the headline. they're a key phrases or algorithms read the headline and computers take over. our reviewers hated. >> i think we all hated. the same headlines we saw in june, july, august,, september weren't affecting the markets. and now the markets are waffling. going back and forth. is not seen something like this in a long time. i think if we had clear direction on the china trade news, that would be a big deal. last time i was on your show you have a guess it was very optimistic. who knows what's going to leak out. if we saw some clear direction in that area and the news earlier today that they're going to listen terrorists. that will be a breakthrough. the fed, which previously was good news for the market, people seem to feel less nervous about
being able to predict the market. the fed is being transparent, which were unlike the days of greenspan so now we have transparency. we will see less volatility on now. all these other little distractions and again three months ago, six months ago, nine months ago these distractions are not affected in the market. we are having less liquidity in the market because traders are on holidays. we need some direction. hopefully we'll hear something out of china but a little more sensitive. >> if history is any guide, this rotten december and maybe a ride in january will eventually produce a nice bull run again. that's a very optimistic scenario. >> that's the hope. everything else is fine. been on your show throughout this year but got things well position. interest rates are low. we talked about job numbers.
the mma to be closed of almost 5 trillion everything said and done. that's going to ease up on the employment issues. stuart: one last one real fast. come january, millions of people in america will refocus their race and say a lot more stocks, more bonds or whatever. you're quite comfortable saying the wal-mart talks. >> it's much easier making a statement by the way when markets are down or flat. when you look at the markets with all the up-and-down, most are flat. they were previously up much higher and right now markets are positioned in the u.s. to be strong growth and also internationally when we look at the international market, and i think what you should not be doing if you're an individual investor is point out at the markets right now. it's a great time to go back in and diversify across different
markets. go international, do a little bit in emerging markets. i think you won't go wrong. stuart: joel schulman with advice to all of our viewers. we've been following the chief air. his testimony on capitol hill. john mayer would transpire ventures. a general partner there. to me, the big news out of the hearings so far this morning is that google is not planning to go through with a chinese search engine, which could've been used as a censorship vehicle for a billion people. i think that's big news. >> i think it is big news if i were truly the case, but what is super interesting is if you look at the words that google ceo used, he said right now, we are not planning. it's a very interesting and subtle difference in the reality is google has poured resources already into planning this.
search engine in china, that means a u.s. company is launching a product that actively censors information about things such as political protest, human rights. it's a very, very serious debate to say the least is not ethical issue. stuart: they've got an a.i. operation beijing in a joint operation about quantum computing and that also is in china. that is according to gordon chang, our asia watcher. it would seem to me that they are not out of the woods in terms of this china connection. last word to you. >> correct. today's news that this hearing is not just about google possibly launching an even china and whether or not they put resources into that. it is clear that they birdie put some resources into exploring this. but it's also about the larger
conversation about google being one of the handful of tech companies that makes the majority of their revenue by selling the information they have on americans in the form of targeted ads to other companies. it is a great time for google if they can do it to step up in this turning point and be a responsible company with this type of business model where there's transparency. his ability for users to know information google has on you. stuart: thank you very much for joining us this morning. always a pleasure. the trump administration wants to allow the postal service to sell access to your mailbox. tony moore. >> the trump administration commissioned in the spring saying how can we help the post office? the net loss is something like $3.9 billion alone. most of that is pension payment to the workers, but there is an
attempt to trump administration is making. how can we solve this problem? one idea being considered is to allow fedex and ups to have direct access to your mailbox because this is 1934. if our neighbors i cannot even put a box of christmas cookies in your mailbox. that is a federal offense. you could then call the police on me. basically no one except a postal worker can put his or her hand into your personal box. stuart: mr. trump on to change it. listen, this isn't the only idea. obviously the postal union is against that. banking services. at this point everyone recognizes him you're looking for solutions. >> makes sense to me. postal union workers are against. stuart: okay, got it. quickly to the big board because i just about lost again.
we were up 350. now we are up 40. talk about volatility. a loss of 300 points and we are barely two hours into the session. shoe retailer dfw raised its full-year guidance. sure enough up 7%. francesca, retailer reported foot traffic to its stores slowed down 11%. $1.59. that is the stock price. president trump tweeting about the border wall with the lucy and schumer. here is the tweet. people do not yet realize how much of the wall including really effective renovation has dirty been built. if the democrats do not give us the vote to secure our country, the military will rebuild the remaining sections of the wall. they know how important it is. strong stuff from the president. we will do with it with the former homeland security chief is past. ♪
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and bleeding or bruising more easily than normal. blood clots that can lead to death have also occurred. talk to your doctor right away if you notice pain or swelling in your arms or legs, shortness of breath, chest pain or rapid breathing or heart rate. tell your doctor if you are pregnant, breastfeeding, or plan to become pregnant. common side effects include nausea, infections, low red and white blood cells and platelets, decreased appetite, headache, abdominal pain, tiredness, vomiting, and hair thinning or loss. i'm relentless. and my doctor and i choose to treat my metastatic breast cancer with verzenio. be relentless. ask your doctor about everyday verzenio. >> earlier this morning congressman jim jordan joined for your birder romo. here's what he said about it possible government shutdown. >> he talks a lot about eight shut down. there's been one shutdown is here and and guess who did it.
chuck schumer in the short-term spending bill back in february. he said amnesty was more important than funding the government. if you talk about shut down the only one has done not as far as chuck schumer. that's where the american people are. ♪ ♪ ♪ this holiday season, families near you need your help.
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or visit kohlerwalkinbath.com for more info. stuart: i could've told you this. united dates at the top pick for migrants who want a new home. this is according to a gallup survey. 158 million people want to move to the united states of america. it is called mass migration and were feeling it. nancy pelosi, chuck schumer meeting with the president about border wall funding today. he's a former homeland security chief of staff. welcome to the program. >> thank you are good to be with you. stuart: looks like an impasse. offering 1.3 billion for fencing may be. the president wants 5 billion for a wall if not more. that is a standoff. do you think the president should shut down the government over this issue?
>> my assessment is that ultimately in the short-term there won't be a shutdown. there won't be a christmas shutdown but there will be a new year shut down. if you look at the cost of not building a border wall, and the security implications as well as the economic cost are far greater than the cost of a temporary shutdown. i do think there will eventually be a shutdown coming here in the new year. stuart: is a former chief of staff to homeland security, you know what's going on. is the wall the only answer? a structure, a barrier. not offense, not electronics, all wall. about the only answer? >> that's not what this administration is proposing. one of several layers of defense. when i was chief of staff at homeland security we have a concept called pushing borders out meaning you create multiple layers of security before you get to the actual border and
even the border itself the border wall is only one piece of infrastructure. he has sensors on the ground. what the administration is trying to do we saw over week ago by forcing the caravan to say on the mexican side of the border before it came to our actual border. that's another example of pushing borders out, hoping to intercept before they reach our actual border. >> the president says the gaps in the wall where there's no structure yet can actually be filled by the military. they'll build the the wall. it's not a practical solution? >> i've heard some critics say that's not appropriate for the military. for my own experience and achieve at homeland, president bush gave operation jump start and i helped to coordinate that with a newly built essentially 670 miles of fence. when i came into office under 6000 miles, guess how many miles
of fence there were? 73. we built 670 miles of fence and the president ordered the military to provide that support role and they did a great job helping us build the fence and infrastructure. stuart: if you want to fix the problem then we really do have it fixed the problem, this is my opinion you got apple wall. basra to you. >> those who oppose the wall don't realize it. there isn't need for any wall. he's proposing one point. we need to close the gap and get to a common ground. the fundamental point of having no wall is something that we absolutely have to push back on and we just saw that demonstrated less than a couple weeks ago. stuart: yes we did.
stuart: chancery come in thank you for joining us. we do have some headlines from the admin is ration on a potential shutdown. >> potential shutdown. criminal justice reform bill will pass. that's coming across as well so the senate will vote on not. this is bipartisan. the idea is to reduce the number of people in prisons and mitch mcconnell saying senator should be prepared to work during the holiday week. stuart: the criminal justice bill will be debated and voted on in the senate. >> in a sensible pass. stuart: republican majority and again come january there's a majority. what a busy legislative agenda, mcconnell said senator should be prepared to work during the holiday week. other breaking news here the farm bill according to the president also in good shape. stuart: on the border d., trump probably would not have agreement with the democrats. >> s. not as if there's a van.
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stuart: i'm quoting a "washington post" headline. it is a negative headline on the issue of trade. here it is. trump administration to condemn china over hacking in economic espionage. escalating tensions between superpowers. i read that as a potential negative to trade in the market has responded. we were up 350. now we are up 48. let's go to "time" magazine printed 201818 person of the year is in fact plural. it is "the guardian," the journalists who are being targeted for their work on these different covers. one cover features jamal khashoggi, the murdered "washington post" columnist. the other is a journalist in the philippines. the third features two from reuters arrested a year ago reporting on the brink of muslims in bmr. the final cover shows the
capital of the present. the target of a shooting earlier this year. congress may begin looking at regulating the sports betting market. this is only months after the supreme court ruled individual states could do it if they wanted to. this proposed legislation has been drafted by senator orin hatch. another set to the legalization process would give the federal government the final say. general motors trying to say the 7900 electric vehicle tax credit mr. trump wants to get rid of it. the law now says once a carmaker sells 200,000 electric vehicles no more tax credit. it's phased out. no incentive to buy it. gm wants to bring the incentive back. here's a story. we're going to comment on this, dear dr. delta says it will no longer allow emotional support animals on flights for longer than eight hours and they are banning kittens and puppies that support
animals on all flights. numerals take effect in february. >> they just want everyone to cry. i understand the airlines. people were showing up as support peacocks. i thought that was an onion headline with a peacock did i do understand. the long flight i can imagine is great for the animals either. stuart: we all -- nature calls, cumin and animals. it just does. on an eight hour flight, is going to call. >> maybe for the teeny tiny animals that are crate trained and don't know how that all works. i have a dog i don't than she can make it. stuart: a puppy or kitten is suitable to be on a plane at any time. are you with me on that? >> i'm with you although i'd be all too happy to have my dog with me whenever possible. "forbes" compiled the list does the highest-paid radio host.
stuart: here it is the list of highest paid radio show hosts. maintaining rating of number one, howard stern. he took home nearly $90 million. not too far behind, rush limbaugh, 84.5. i heart host, ryan seacrest, sean hannity at 36 million. and glenn beck, at $8.5 million. big headline to my mind is, he says, google has no plans for a search engine in china. that is one of the most contentious issues. >> no plans, you can make plans.
you can break plans, you can reevaluate plans. this is the ceo saying we're not discussing this today on capitol hill. however i will say it will be a very fraught decision for them, right? they have always been, tried to be the poster children of free and open internet. on the flipside people refer to the china as the great firewall. tons of parts of google would be censored, would be banned. that is really going to be a corporate culture struggle but let's face it, they would make a lot of money if they to the into china. stuart: they would. is he parsing words in view to satisfying questioners now, but later going ahead and doing -- i don't know that of course, but he is parsing his words. that is suspicious. >> he has to. if you are a ceo being advised by communications experts, none of your team is going to tell you, yeah, go to capitol hill today, say you're going into china. see what happens. stuart: you parse your words, do things very carefully. >> he has been polite,
civilized. done a really good job for google today. stuart: what you're looking at on the screen, volatility, when we open the markets within a couple minutes we are up 350 points. 2 1/2 hours later, we're up just what is it, 80. neil, it is yours. neil: stuart, thank you very, very much we're following developments. what has buying back on corner of wall and broad, wiped out earlier gains of better than 300 points. a lot on confirmmation of speculation. i say, quasi-confirmmation of speculation, that the chinese are rolling back some tariffs on some, not all, u.s. cars. so there could be a lot of devil in the details here. but obviously as i, stressed, many, many times, nothing decides the course of this market like prospects for trade. better if it looks like we'll avoid a blowout with the chinese. worse if it doesn't look like we'll be able to, avoid an out right war. and that really decides the