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tv   Varney Company  FOX Business  April 29, 2019 9:00am-12:00pm EDT

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of gdp. maria: curtis, this is what you want t to see? >> absolutely. at the end of the day what's going to drive shares is capitalism. maria: thank you lauren and mitch. that will do it for us. "varney & co." begins now. good morning, ashley webster. stuart will be back tomorrow. don't go anywhere. we have big stories and we're watching them for you today. big day for boeing holding its shareholder meeting today. you'll hear from the ceo in the 11 a.m. hour. disney definitely a stock to watch today. the new "avengers" movie bringing in a record $1.2 billion. that's billion dollars in global ticket sales. nice game for disney shares ahead of the opening bell in the premarket up more than 1%.
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it is looking like a flat open for the major indexes, but a major week for corporate markets. we have watching the markets for free all-time highs. meanwhile, joe biden making his first big campaign visit in pittsburgh laying out his plan for rebuilding america's middle class. a business monday morning and we have it all covers. of course "varney & co." starts right now. ♪ ♪ big opening weekend for disney's "avengers end game" making in more than a billion bucks worldwide and there was even a fistfight? >> no spoilers, please. "avengers gts record box office weekend, 300 million in new york
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america and $329 million in china. this is the story that gives u a lesson as to why you shouldn't spoiling it. one man walked out of the theater and he just queeld it ys howt here's the ending. what happened to him? a fistfight. he got beaten up. you don't do that. the russo brothers who directed the movie took to social media saying don't spoil it for people. this is the last of the "avengers" franchise. you can manage there are twists and terrence. marvel has done really well for disney, upgrading the stock today. and no "end game" for the avengers for disney. >> they have big movies coming out this summer as well, "aladdin," "toy story," lion king ." >> this could be an avatar for
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them. >> you know there's going to be a black widow, more iron men, individual breakout of characters not. the end of the marvel profit train. >> i know you guys didn't see it this weekend because you were at the white house correspondent's dinner. both of you. >> that was fun. >> i want some up sight in next three hours. let's stay on disney and bring in ier marke our market watcher. you like it here, 141? >> actually i have a little trouble at 141. we just got back from disney and it is the most crowded place i've ever seen. everybody was there. unbelievably expensive as far as i was concerned. but the nicest thing about it is the people, the staff is just extraordinarily pleasant. it was quite an experience. but the problem for disney is this is the last of the "avengerers," can they come up with a new one. yes, "toy story" is coming out.
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but up since the start of the year. given 10% or 15% on the downside i'll by a buyer but will i buy it from here, no. >> they have "star wars" at the end of the year, that will be a blockbuster. and the fact it was crowded at disney, this was good. >> this was the end of spraining break for a lot of people. it was extremely crowded. people will stand in line for two and a half hours to get on one of the rides. they have a great gamut going on at disney. >> and giving out a small mortgage to be able to afford it. boeing's annual meeting this morning, the 737 max at the top of agenda. what has the damage been to boeing with regard to trust in band. >> there's never one cockroach. when the first problem comes out, invariably there are second, third and fourth
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problems. and boeing is suffering that cockroach circumstance right now. yes, eventually boeing will come out of this. blue do i want to pay $377 for boeing stock, no. get it down to 280, another 15% or 20% and i'll be interested in buying it. they have problems. and the fact that they said over the weekend that they had not informed or had turned off the. >> alert system. >> -- the aall right system. what were they thinking? i have a problem with that. will boeing overcome what happened to it? of course it shall. ten years from now it will be at the equivalent of $500 a share. markets in record territory but we have seen runups like this before, even when we weren't expecting it, what's traditionally been a slow corner. any chance stocks are overvalued as some analysts are suggesting?
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>> i think they've way overvalued and have been for a while. it's still a bull market and if you try to sell it short, i blows up in your face. weakness is to be brought, strength is not to be sold into i'll be a buyer again. it's a bull market and we need to understand that. >> very quickly, sorry to interrupt, we're running out of time. first quarter gdp blowout. what are you expect in the second quarter. all of the naysayers saying it's going to be down in the 1.5% range. >> we bought a lot in the first with the comaing this e ports. we probably exported more than we should have, probably exporting less in the second quarter. will it be less than 2.5%, probably not. >> have to leave it there. dennis just now getting over his disney experience. thanks so much for joining us. let's move on to politics.
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presidential candidate joe biden holding his first campaign event in pittsburgh. joining us now, liz harrington, the spokesperson for the. national committee. many consider mr. biden to be a moderate democrat but does the gop want to push him to the left and will he go wily? >willing will.>>ingly? >> i haven't heard a lot about his vision for the country and his record. his record is not a good one to run on. he's spent 16,000 days in the swamp, nothing to accomplish except being wrong about his foreign policy issue over the past four decades, according to obama's secretary, robert gates. and also being vice president for eight years when we saw wages plummeting, a quote up
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quote new normal of slow growth and high unemployment. what is the record he is going to run on? so he can figure out if he wants to go further to the left to figure out what voters he wants to pander to. but the record of accomplishment is just not there for him. >> a theme already from mr. biden, he says he wants to rebuild the middle class. but i guess there are those that can argue that eight years of the obama administration created the problems in the first place. >> right. joe biden is usually a step or two behind, but i'm not surprised he hasn't noticed that the middle class is already being rebuilt. we just saw 3.2gdp goat and we've seen wages rising again. we didn't see this under the obama administration. he's having haze kickoff launch in pennsylvania where last week we saw record low unemployment, first time in history that they've kept the numbers.
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lowest unemployment on record. that never happened under the obama administration. i'm not sure what we' he's talkg about. the middle class wasn't rebuilt when he was vice president. it's being rebuilt right now. >> i think it's interesting because the record gdp plays into the trump administration's play on th can economy. that's the number one issue to drive home for the republicans next years. must be tough for the democrats to take on, even though mr. biden seems to be doing it. >> democrats are struggling to find a message for the economy because there is none. you can't argue with this tremendous growth with wages rising, record low unemployment for everyone. you look at the wage numbers, the bottom half of income earnings, they're getting if most wages increase. not the top half. this is an economy that's
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working for everyone and joe biden is just the same old past new normal that was only normal for democratic administrations where you had slow growth, sluggish economy, jobs that they said were never coming back. those manufacturing jobs, you didn't need a magic wand, you needed tax cuts and deregulation. >> liz, thanks for joining us. we appreciate it on this monday morning. let's check the futures for you. what we're looking at, couldn't get much flatter than that, the s&p and nasdaq essentially flat ahead of the opening. just under 20 minutes from now. we have a big gust coming up, larry kudlow will be joining us lif live in the 11:00 hour ts morning. don't miss that. airbnb competition from mayor jot. the hotel chain announcing it's getting into the home rental
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process. the "the new york times" apologizing not once but twice for publishing an offensive cartoon featuring president trump and netanyahu. the post reporting that xi may fly to washington, d.c. to sign a trade deal as early as june. is that realistic? we're talking to a former trump trade adviser next. ♪♪
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ashley: taking a look at the futures, flat is the word that we're using, the dow up 7 points, s&p/nasdaq at the flat line. take a look at spotify, up 5%, adding more paid subscribers than wall street thought they would. that's positive and that stock up 7 bucks in the premarket. run for the socialists in spain. so much for the populous movement. >> this indicative op what's going on in europe. splintered fractured governments.
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the socialist party won the most seats, 123 out of 350. a surprising move by the far right party. for the first time in ever it's entered the national par parlia. you've seen this in the eu, italy, germany, numerous parties fractured governments, this is the third general election since 2015 in spain. so what you're watching for here is who will dominate the national narrative. when things are going well, if spain is going well right now, the left comes on the rise saying do for government spend wrg the far right is saying, wait a second, keep the good times going with existing policy. we're watching this one. and the market is trending down, banks fearful of regulations. ashley: president trump talking trade with japan's prime minister on friday. joining us now, curtis ellis,
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former trade and jobs adviser to the trump campaign. good morning to you. are we going to get a deal with japan ahead of china? can we get something done? there's quite a bromance between abe and president trump. >> it's in their interest the make a deal with us. they realize that china is not their friend just like china is not our friend. and mr. trump, president trump is talking about a 25% tariff on imported automobiles which, of course, would be -- you kneecap the japanese economy. they've made their fortunes on selling toyotas and nissans. so we want to export more agricultural product to japan, they want to keep their auto market in place. the wild card here -- ashley: important market for u.s. producer, japan, is it that big? >> they have been keep our farm products out and that is the key
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to this whole thing. as you talk about auto tariffs, don't forget about truck tariffs. we have a 25% tariff on pickup trucks and that's the healthiest sector of the american auto business. ashley: more china trade talks this week. the south china morning post saying that, reporting that a deal could be signed as early as june. i'm not sure where this comes from. do you buy it? we've heard these things before. any truth in that, you think? >> i really would take that with a large pillar of salt. we've seen for the last two years anonymous sources about the mueller investigation that all proved to be untrue and i think we're seeing a repeat play of that again. look, we'll have a deal when the chinese party understands that we're not going to let them get away with cheating anymore. ashley: what's the major stum
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stumbling block? >> enforcement. we've lived with 40 years of empty promises from the chinese communist party and this president is not going to put up with it anymore. and if they in beijing believe that somehow a democratic administration or a democratic opponent to president trump is going to be easier on them, they have a rude awakening. because the democrats are just as hawkish on china as president trump is. ashley: but do they have the backbone like president trump who is not afraid to just say it as it is? >> it's not going toib joe to be biden. we know where joe biden is. he voted for normal trade relations with china. but yes, nancy pelosi, chuck schumer, the leaders in the legislative branch are very aware of how bad china is. ashley: one last one for your, the journal reporting that the
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new nafta facing an uphill battle in the house. democrats saying they're not going to support it. they want to make some changes. >> is this a hill that the democrats want to die on? everybody knows that the new nafta is a better deal for the american workers and they're going to veto it saying it doesn't do enough for mexicans. i don't think that's really strong and they could pay the price for doing that. ashley: we'll see. at the ballot box. >> next year when president trump beats them over the head with it. bill clinton signed the nasty deal, i fixed it and you won't approve my fix. ashley: curtis, appreciate it. futures, quiet start to the week. may be a slight uptick, the dow up 13 moints, s&p/nasdaq slightly higher. more trouble for cook county prosecutor kim foxx, just
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slapped with a subpoena for information on her handling of the jussie smollett case. details on that coming up next.
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>> this is after a retired appellate judge stepped in, filing a petition last week for a special prosecutor to look into the smollett case. remember the 16 charges dropped against smollett even though most officials believe that he perpetrated the crime. people are wondering what happened, especially with kim foxx and her role in possibly these charges being dropped. smollett may have to testify as well and be subpoenaed. ashley: a retired judge. >> special prosecutor is what you should have done in the first place, by the way, which didn't happen. kim foxx is under fire. ashley: interesting. this story, venezuela has freed an american prisoner. >> the 37-year-old dance instructor held on fake trumped up charges of arms trafficking and attempted murder. that's what happens when
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countries are under duress and economic collapse, they often kidnap and hold as ransom for bargaining chips. and a does other americans are still detained there, but five years of heartache and heartbreak hopefully over for this family. he was held in extreme hardship, food taken away from him, medicine taken away from him. hopefully this family will have their pain overwith and he's headed home. ashley: anothers still being held. >> that's right oots let's look. ashley: let's look at the futures pap flat opening, dow up 6, s and sprks and nasdaq up very slightly. we'll find out what happens very soon. we'll be right back. -driverless cars... -all ground personnel...
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ashley: story now, a crane that collapsed in seattle and killed four people was working on a building in google's new seattle campus. this happened during a storm are strong winds. it's very very disturbing to watch, this crane huge one, collapsing on the ground with people sitting in their cars. >> well you know, there were strong winds, 23-mile-per-hour
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winds and 60 cranes in the skies building out seattle which is very popular, given the tech boom with amazon and the like moving into the city. four people died including a college freshman, young girl at seattle pacific university. ashley: on that happy note we'll get to the opening of the markets. we're expecting a somewhat flat opening. as you can see, the stocks just snow beginning to trade. more red than green but we're literally up just one point on the dow at 26,545, just getting the day started here. take a look at the s&p if we can, that also almost, almost dead flat, up 0.4% 2940, nasdaq very flat up three points. it's that kind of morning we're just getting going. lots to happen this week. lots of earnings. the fed meeting, jobs report on friday, the market just waking up to a new week.
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and a big week. we talked about this business, disney winning big with "avengers end game." boeing has the big shareholder meeting this morning in chicago. that stock down half a percent at 378. we'll be hearing from the ceo of boeing in the 11 a.m. ahead of the earnings report, up slightly, up another buck 63 at 1278 on alphabet. who is here to talk about it all, jeff seeker, donald and susan lee. a big week for earnings,-mile-per-hour than 150 s&p companies reporting. stocks are already in record territory. if we get strong earnings this week, after that strong gdp report last week, how high could we go?
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that's the question. >> this is a make or break week. the earnings have to be good again. the average earnings are beating on the tech side as much as by 7%, on the rest a little over 5%. those are big beats. but there ask also an an tis maition that there will be no backlash from the trade war with china. if that doesn't happen combined with good earnings we could go higher. what i see with the trade war is things are deteriorating the china and if things continue to deteriorate, there's no possibility that you would think it's not going to affect earnings going forward. >> i love looking at consumer sentiment. here we go. the best stretch since the clinton late-stage expansion, right? >> right. >> and financial prospects, the positive numbers come in there, optimism highest in 15 years. just watching those numbers as well. >> and we expected earnings to be down 3% or up 3%, goes to
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show that when you set the bar very low, it's much easier. >> yes, here we are. ashley: you can't limbo when it's already on the ground. john, listen, look. we had a blowout first quarter gdp. if we get a deal with china, even though jeff says it seems to be going in the wrong direction, if we get that and the earnings are better, what are we looking at in regards to the market? >> i think we're going to deal with china, any deal. i don't think we're going to get a good deal or a deal anytime quick. if question get a deal the market moves up significantly from here. we're at 16.8 times right now, the ten-year average is 14.7. i think the market is slightly ahead of itself but with a great economy like we have right now, i think the market right now, i would not fight this bull market here. not necessarily a buyer here.
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ashley: i think you guys colluded this morning before the show. >> collusion! ashley: let's look at boeing, annual shareholder meeting this morning and the 737 max will be at the top of the agenda, of course. how much trouble are they in? dennis said he wouldn't touch the stock at 379 saying i they've got a way to go before they yof come it. what's your thought? >> i agree. the chinese aviation authority is pushing their own c919. they're going to come after boeing. same with the european aviation administration. they came out the day after this crash and said this was tied to the crash in ma lay somewhat as well. implicated that the boeing was not safe. they also have in europe by the way, the airbus 320. aviation administrations protecting their own domestic market. that's a problem. for boeing going forward.
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the problem is china. ashley: let's get to this story. it's remarkable. huge opening weekend for disney "avengers engame accounts raking many more than a billion dollars, $1.2 billion worldwide. do you own disney? >> no, i don't. ashley: would you buy it at this price? >> i wouldn't buy it. ashley: anything else? >> i wouldn't buy it because you know what? they accomplished what i thought couldn't be accomplished and that's a billion dollars as quickly as they did. they also -- but they have -- they have an issue going forward now that this particular franchise is coming to a close and yes they have a lot -- they're the kings of contests -- no. but they can't -- once you hit this it's the curse of high expectations. once you get to the point where you've reached this pinnacle, what is this for disney to do? now i love disney, they've
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made. >> "star wars," the theme parks, mickey mouse. ashley: now you're going to have a streaming service where you can watch all 20 "avengers." >> they've done $20 billion in the franchise, incredible what they've done with marvel. but going forward they have to compete in steaming and they have their work cut out for them with netflix. netflix, the king of streaming. >> they have -- they own a big stake in hulu, they have espn light. they know streaming is the future. >> but they're not setting. >> i'm with susan. i love looking at balance sheets. disney has a powerful balance sheet, a cash-flowing machine right now. ashley: you're outnumbered. very quickly, is jeff right or wrong? >> i disagree with my friend
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jeff. i would not necessarily buy it here. but look, disney is the king of content creation. building a multibillion dollar franchise. look at "black panther" rejune nateed it from the 1960s and they've haded two nil onsubscribers from espn. in january alone they haded 560,000 subscribers in two days. ashley: we'll have to leave disney right there. quick check of the big board for you. jep, not moving at all on this early monday morning, 26,5 on the dow up 5 points. let's move on to spotify, the music streaming service. higher revenue at the company, that of course has led to modest gains. it was up higher than that in the premarket but still up slightly. >> that's a big deal. first one to get to 100 million. ashley: do you use it? >> i use it. a lot of people do. ashley: big tech names, we check
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those every day. the top three up, apple, a amazn and facebook higher. microsoft under 130 bucks a share. don't look stuart varney if you're watching. i doubt whether he is. oil just down slightly. pushing $66 a barrel, now that's come down after mr. trump's call to opec, down another 20-cents, just about $63 a barrel. national average for regular gas right at $2.88. many other places bf $3. clirch for one. goog 8 parent alphabet reporting after the bell today. what are you expecting? good numbers from alphabet? >> i think the two things to look at is what they're doing in the cloud division, how are they competing with amazon and krft d microsoft and customer calls.
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looks like they're going to come in at 20% earnings gain. i think that's right about right. ashley: what are you looking at, jeff? >> i agree with john in termings of the numberterms ofthe number. they're going to be affected by the penalties that the eu is putting on. that's my major concern if they're making provisions going forward. it's more what google alphabet is going to predict going forward than what they've shown. ashley: take a look at marriott. it's going to airbnb a run for their money in the heem rental market. is there a lot of money at stake in this? >> there's a tremendous amount. i'll say this for disclosure. i own a marriott. questiowe are owners. as far as how do we feel about this? we think it's going to affect the hotel owners. we think that marriott should trade lightly because they could take business away from the
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hotels. but marriott is brilliant to tex tent that they see what airbnb is doing. they're able to accommodate the families who need space that have seven or eight people and don't want to have a block of rooms. >> it's great for business travelers, right? >> right. >> and the lines are blurring by the way because airbnb is turning into a corporate travel provider as well. >> marriott is all about the travel points. if marriott gives these travel points out to the new entity and takes away from the hotel owners, there's going to be an issue. ashley: last word to you, john. good move by marriott? >> yeah, i have over a million marriott points right now i want to know if i can use them at jeff's marriott. ashley: maybe you'll get the friend discount. do you give friend discounts? >> of course. as long as you agree with me. >> seriously, i'm not getting a
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disopportunity. ashley: we've got to go. thank you for joining us, great stuff on this monday. dow just turning slightly negative down, down 9 points, 26,5. by the way we have some sad news to report. the former commissioner of the commodity futures trading commission has died. he was a critic of high frequency trading and often appeared on this program to talk about it. he warktd at the cftc for years. he died from complications from pancreatic cancer. bock was just 58 years old. very sad. another item of news by the way on disney having nothing to do with "avengers end game" they're considering a big fsment in video gaming, buying a controlling stake in video gaming. why this is a big deal for disney. aping coming under fire for going after apps that help
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parents limit screen time. over the past year apple removed or restricted 11 of the top 17 most downloaded screen time apps. maria bartiromo on the border. while he was there a group of migrants with children were apprehended by border agents. we also spoke to president trump about the scriefs on the border. he says congress is standing in the way to fix the problem. you'll hear it after this. ♪ ♪
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ashley: big board for you. we just ran that flat line. we've been open 14 minutes and the dow off literally as well. we're at exactly zero.
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26,544 on the dow. uber giving out cash bonuses ahead of the ipo. let's go down to the new york stock exchange where jackie has the story. >> good morning. this is a great story. it's that driver appreciation. that's what uber is can calling it. giving its drivers awards ahead of the idea. drivers are going to get a range of six awards and it depends on how many trips you've completed. if you've completed 2500 trips, you'll get the reward of 100 bucks. but if you completed more than that, top of the range, 40,000 trips, you can get 40,000 dollars. and then there are tiers in between. so the drivers obviously very excited about this. in total it looks like uber is going to shell out $300 million in rewards and that is going to happen over the weekend, 1.1 million drivers will get them. uber is making sure that some of
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the shares are reserved for trier drivers at the ipo price, 44 to 50 bucks. back to you. ashley: nice little bonus. thank you very much. interesting stuff disbloop frito-lay parent pepsi is suing pharmacies in india for using a patented potato. >> patented potato. you learn in every day. it parentallyes, it looks like d pepsico suing farmers for cult cultivating this potato. saying you could be part of the group and grow other potato
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varieties. but if you're growing these, you have to be under our umbrella. ashley: patented spud. good stuff. now this were the crisis on the southern border. here is the president wit in his interview with maria bartiromo. roll tape. >> in other words they have a court which needs to hear 900,000 cases. how ridiculous is this. this has been building up for many years. it's just a system that congress can fix, maria. and if they don't get off their [bleep] -- it's the democrats that could solve it so quickly. ashley: i think we know where the president stands. joining us is congressman andy biggs. good morning to you. >> morning. ashley: the president said there are big problems on the border but congress won't do anything about it, in particular the democrats. it's the same situation. it's been going on for years. what is going to give to get this thing solved?
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>> well, the democrats do need to come to the table and they have to do some things that we can do together if they would. but so many don't believe there's a problem. you have the 900,000 people awaiting court dates, as much as five years away. then you have another million people who already have active removal orders, sanctuary cities protecting these people so i.c.e. can remove them. you have two million people in the country we're not keeping track of. we've got to secure the border, have a fence, change everything from your asylum law to the sanctuary city policies. everything that incentivizes people to come. if we don't thing and that congress hasn't taken the action to do that, then we're not going to solve this border crisis eats ashley: is mexico doing enough? there are is report that commercials are run in mexico encouraging the migrants to come
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to the united states saying we can find ways to get in, we now how the system works. one big effort to take these people, many of whom who have not right to come to the united states, and give them the hope that they can side-step the process. >> mexico is not doing near enough. they don't enforce the southern border. you've heard the radio ads. there's ads run in central america. there's also ngos in churches that put up billboards in mexico telling people how to get here and how to avoid being kept out of this country. it's real simple. maria sees people coming across, everyone has a child, i was down there a week and a half ago, saw 884 people, everybody put the guides themselves had a child paired up with them to take advantage of the asylum laws. mexico is not he helping us. this is a problem. we va to leveragwe have to lenco
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get mexico to help. ashley: thank you so much. sorry it's so short. lots of news today but thanks for joining us. >> thank you. ashley: how do you do public relations for pot companies when their product is still illegal on the federal level and looked down upon by a big portion of the population. we're talking to a pot pr professional. a lot of alliteration, next.
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alright boys, time for bed.
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listen to your mom, knuckleheads. hand em over. hand what over? video games, whatever you got. let's go. you can watch videos of people playing video games in the morning. is that everything? i can see who's online. i'm gonna sweep the sofa fort. well, look what i found. take control of your wifi with xfinity xfi. let's roll! now that's simple, easy, awesome. xfinity xfi gives you the speed, coverage and control you need. manage your wifi network from anywhere when you download the xfi app today.
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ashley: switching gears now, joining us is someone who specializes in public relations for the booming cannabis industry. joining us is rosie madeo. pot is still illegal on the federal level. many states have taken the step forward to legalize recreational marijuana. how much is it an issue for you running a company that brands and marketing cannabis. its not legal on the federal level in the united states. how much of a challenge is that in. >> it is a challenge, especially because the platform that people traditionally market on within facebook, instagram and google are not kind to cannabis companies. as a business there are a lot of
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challenges that we face. ashley: where do you advertise. >> you can't boost a post on instagram but you can share media. getting on fox business, in "the new york times," in fast company it becomes very valuable for cannabis companies. ashley: do you have a lot of companies that you represent? >> we represent 25 companies. ashley: hoi arhow are they doin? >> they're doing greeting. going from startup to ipo. it's been really fun. ashley: you started doing this, pot in particular, more than four years ago. you felt that this was an area that was going to take off and you were ahead of the curve. >> we were n. in 2014 it was just becoming of use on the west coast. it was a wildly successful campaign. fast forward four and a half years later, it's arguably wowfn the largest agencies in the
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space. ashley: do you represent a lot of canadian companies? it's legal in can tha canada. >> they are much more kind to cacannabis companies. most of our clients are in the u.s. and we have some of the largest brands in the business. really big players in the space. ashley: and big-named celebrities behind the companies which helps to legitimize it. >> correct. the sleptie celebrities bk -- or companies has joe montana. chillily handler did an event for a client of ours. we did kim kardashian's baby shower yesterday. mr. moxie cbd company was the sponsor of her party. ashley: more varney, hour number
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ashley: 30 minutes into the trading day, the dow has gone absolutely nowhere. we're down 2 points, 26,543. still remember just about 300 points away from a all-time high. within striking distance what we're saying. s&p 500, nasdaqs have hit all-time highs already. a third of the s&p by the way is reporting profit this is week. we'll see what that tells us. both the s&p and nasdaq essentially flat at the start of trading today. now this, former vice president joe biden kicking his campaign off in pittsburgh today. he will talk about rebuilding the middle class. the question is, who tore it down in the first place? hour two of "varney & company" starts right now. ♪ ashley: good morning, everybody,
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i'm ashley webster. stuart taking a well-earned day off. he will be back tomorrow. we begin today with joe biden's first campaign event and he is making it about the economy. we have every angle covered for you on this. david avella on the political side. nevada nicholas on the economy. we begin with hillary vaughn in pittsburgh. hillary, what does mr. biden mean when he says i will rebuild the middle class? reporter: ashley, we're expecting to find out later today because so far biden has been light on policy and focusing on president trump. he was born four hours away from here in scranton, pennsylvania. he is back here hoping to win back pennsylvania for democrats in 2020 after trump flipped it in 2016 this is biden's first event following his video campaign launch this week. he will make the pitch to union workers in an event according
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labor union members in teamster's hall in downtown pittsburgh. this is fresh off endorsement from america's firefighters union. this is the first democrat in the race to win union endorsement. biden is expected to talk about what he will do for middle-class americans. we'll get a peek what that policy actually is. international association of firefighters president will be here with biden today. he endorsed him with video out this morning saying middle-class americans just want a decent wage, college education for their kids, affordable health care and good retirement. they think biden is the best candidate for the job. biden has not detailed on how he will make that happen, so far focusing on taking out biden in 2020. a new "washington post" abc poll that biden is picking up steam in crowded field of fellow democrats. in survey of voters biden leads the pack with 13% of support from voters. senator bernie sanders trailing at 9%. mayor pete buttigieg at five.
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senators warren and harris behind at 4%. a lot of details waiting to be filled in. the event kicks off four hours from now. we'll find out then. ashley: david nicholas, what is the democrats message on the economy that has record low unemployment, gdp first quarter, which by the way traditionally slow first quarter, 3.2% blowing away estimates? seems like the economy is up humming along very well. how do they counter that? >> ashley, they don't really have a clear, coherent message. what they're basically saying, job creators, risk-takers are bad, capitalism is evil and unfair. wealth creation is something that we should be attacked and wealth distribution, free college, free health care, litany of other things are what americans really need at this stage. really they can't compete on the economy. even if we just look at joe biden specifically. he was vice president under an administration that had the
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worst 10-year record for gdp growth in modern history. you have to back to 1930. for little over 1% gdp growth. it is hard for him to stand on his own economic record. he will have to attack the president. unfortunately that will be a tough pill to swallow for most voters. ashley: you bring up good points. david avella here in the studio. i would say the economy is president's trump, so to speak, the ace up his sleeve. the numbers continue to confound the so-called experts especially in the first quarter. profits better than expected in the first quarter. unemployment at record lows. this is something you can take to the country and say there, i told you. >> it is an impressive set of results. add to that we're rebound with business investment. companies are feeling bullish where the economy is going. they're investing more in their companies. innovation continues to be on the rise which is good for american wokers as new jobs get
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created. this strong economy is also fantastic for workers. why? because now employers have to compete for employees. to get the best employees wages have to go up. benefits go up. this is a strong economy. one that is great for the president it run on. if you hear his rally, including one you did in green bay he is in mid-season form talking about the strength of the economy. ashley: i have a feeling joe biden will say all right, we had tax cuts. who did that benefit? the rich and big corporations who bought back their own stock to help their own shareholders, the trickle down, supply side just doesn't add up. i don't know if he will say that, but i have a feeling the direction he will go. your response. >> that is a standard democratic answer voters heard over and over. joe biden has more immediate issue to deal with. to be in the debate you have to have 65,000 donors. the question can joe biden get
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to 65,000 donors before the first debate. ashley: he started off strongly did he not? >> with major donors. there are not 65,000 major donors across the country on the democratic side when you have so many democratic candidates. we're up to 20 now. it will be hard to get there by just major donors alone. joe biden best chance to have been the democratic nominee was in 2016 when he could have campaigned to be barack obama's third term. just as it was elizabeth warren's best time was september of 2016 to be the democratic nominee when the democratic party said, wow we're stuck with hillary clinton. who is the bright shiny object at that time? elizabeth warren, two democrats whose time have passed. ashley: i will switch gears a little bit here. attorney general william barr threatening to skip a hearing before the house judiciary committee. he was expected to testify thursday. doesn't like the format.
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doesn't want to be grilled by lawyers on the committee. what is your take on that? >> keep in mind a few weeks ago he was up on capitol hill trying to get budget numbers reviewed by congress. what did they want to talk about? the mueller report. not as if the attorney general hasn't given his opinion. one, we have his report. two, he has been to congress and already answered questions. three, it is interesting now that democratic members want to turn the questioning over to their counsels. maybe democrats are feeling insecure they can't come up with good follow-up questions. so let's bring in professional -- ashley: should he skip? he comes from a strong position he believes. shouldn't he just go in there to answer the questions or is it bad optics? >> certainly. keep in mind what the democrats really want? they want a political show. is it about finding answers? it is not. the answers is in the report he already turned over to them. that he already answered questions about he went up to
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review his budget and they already asked him about the mueller report. it isn't as if everything he has written he hasn't talked about. he has talked about it. they want their prosecutorial counselors as opposed to them asking questions. ashley: david, thank you very much. let's check google if we can. it reports profit this is afternoon. david nicklaus still with us. would you buy google ahead of the report? it is down four bucks at 1273? >> google still has room to run. they really had an amazing run this year already. that may provide caution to investors. google is dominating in the search category with advertising. 40% of u.s. digital ad spend is run through google. those are amazing numbers. earnings growth, revenue coming in around 30 billion. earnings per share a little over $10 a share. i think there will be a positive move for google after of the
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earnings report. i think there is still room for the stock to run. it is not just advertising. google has their footprint in many other areas. hardware, software. for an investor google at this point, there is some overvaluation here but i think there is up side for the stock. ashley: we'll leave it there. david, thank you very much. appreciate it to all. let's look at this, happening this hour boeing having its shareholder meeting. there have been protests we understand outside of the meeting already. we have jeff flock. he will join us in the next hour. ceo dennis muilenburg answers questions from the media. that is when we may see some drama. boeing's stock down slightly. now has turned around a little bit. look at that the stock up a buck 90. any news during the next hour we will bring it to you, we'll hear from the ceo himself at the top of the 11. apple under fire for reportedly removing or restricting some of the most popular screen time, parental
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control apps. we'll have the full story on that. we have new video from the border this weekend. our cameras catching the arrest of a group of migrants trying to cross illegally. brandon judd, head of border control counsel later this hour. a list ma milano getting pushback on twitter after she endorsed the idea of not critizing the 2020 democratic candidates. hour two of "varney & company" just getting started. ♪ hi i'm joan lunden.
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ashley: we've got breaking news on beto o'rourke's climate plan. for net zero emissions by 2050, as always with the great plans how much will it cost?
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liz: 1 1/2 trillion on companies in the top brackets. tax breaks for fossil fuel companies. again and again we've seen these ideas come out, no mention of china's emissions, no mention of india's emissions. tax raise would go towards infrastructure, meaning state and local governments would have the money to basically blow away. there is already over a trillion dollars worth of empty federal office buildings literally the landscape. no talk about paring that back. there is no talk about the oversight of that tax spend. again and again, sewing the seeds of their owner relevance when they cook up these plans, when the taxpayer says, where does the money go? infrastructure, margaret thatcher used to say we take the trains and buses, politicians take infrastructure. he is also talking executive action within the first 100 days. he wants to retrofit, building, cars, all appliance with taxpayer money.
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instead of a having a jamie dimon, warren buffett, jeff bezos solution to health insurance, these guys know how the spend goes in their companies, how about free market and companies come back. all the top down. ashley: five trillion? liz: over 10 years. 1 1/2 trillion comes in higher taxes. susan: not 90 trillion. the world isn't ending in 12 years? ashley: apparently not. someone should tell mr. beto that. now this, a report from "new york times," apple removed or restricted a number of screen time apps. kristina partsinevelos joins us now. explain what this is about. >> if your phone, if you're on it too much apple can track screen time. how many times you check twitter. ashley: yeah, yeah. >> apple got into the game in september. a lot of appears are complaining about because they are pushed under the rug or app store, because they believe they are
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unfairly targeted. they feel like their business could potentially hurt apple, why apple is throwing them under the rug or remove being them according to "new york times." 11 out of 17 most popular parental control apps on app store have been removed or restricted this is a quote from tim cook. he was at an "time" event. listen to these words. amazing. apple never wanted to maximize user time. we've never been about that. we're not motivated to do that from a business point of view. we're certainly not voted about a values point of view. maybe you can think hypocrisy about this statement from tim cook. we reached out. they put out a huge press release in regard to "new york times" article. they said apple always supported third party apps that help kids manage their kids devices. contrary to what new york times
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reported over the weekend this is isn't a matter of competition. it's a matter security. according this these apps are getting too much of your personal information. they're protecting us as a whole, in society. first time this happened with apple, spotify too. ashley: interesting. we have the issue. bring in bret larson. morning anchor on fox news headlines on sirius xm. you heard kristina. is this a big deal? >> no. this sends to happen with apple a lot. we seen it literally over the past 20 plus years. apple has this amazing community of developers that have stuck around with them through thick and thin. they have these very, i don't want to use the word rabid, i don't want to get the hate tweets for it. but they have a very devoted fan base, apple, people will literally line up at midnight to buy the newest products but what tend to happen as technology
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advances a lot of applications freeware, shareware, premium applications inevitably get rolled into the operating system or get part of another feature, something about this like the $1000 you will pay for adobe photoshop. a lot of what adobe photoshop can do you can do in cheaper apps. throw an instagram filter on. i think the apps have a leg to stand on especially if they're being yanked off the app store. that has monopoly written all over it. i hear their concern, well at the same time, you're doing something apple rolled into the operating system. ashley: just a fact of life, sorry. >> i get what apple is saying, when you're talking about apps on children's phones and devices we have to be very careful. you have ad targeting software on them. most parents probably are not setting their phones up for their kids to be their child's device. probably their device. so the ads they will see are for
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their parents, not necessarily them. parents start seeing commercials for elmo and "sesame street" which is fun. i think, i hear both sides of this and i think -- ashley: apple doesn't want anyone else telling you how much time you're spending on your screens, let us do that, squashing the competition, to your point a monopoly. >> i don't think apple is doing it on purpose. i don't think they're killing developers. listen we rolled this into our operating system. this is not ad targeting the way we're doing it this is concern for parents. also a concern for developers, if it keeps up it will be problematic. ashley: thank you, brett. kristina. thank you. let's get back to the economy t grew 3.2% in the quarter. a blowout. larry kudlow will join us next hour. i guarranty he will use that
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it's a revolution in sleep. the sleep number 360 smart bed, from $999... senses your movement and automatically adjusts on each side to keep you both comfortable. and snoring? how smart is that? smarter sleep. so you can come out swinging, maintain your inner focus, and wake up rested and ready for anything. sleep number is ranked #1 in customer satisfaction with mattresses by j. d. power. save $400 on select sleep number 360 smart beds. only for a limited time. ashley: take a look at the big board. flat. now we're up nine points. whoo-hoo. 26,553 in the dow. a lot going on this week. the market tiptoeing its way into the trade. look at ford, under criminal investigation. susan li, tell us why. susan: yeah, so it is interesting because ford actually voluntarily disclosed this to federal agencies and the
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justice department. they're looking into miscalculation of overstating gas mileage and under stating emissions from a wide range of vehicles. now this sound familiar? vw emissions cheating scandal. it is similar because we know vw paid 13 billion in civil penalties. $3 billion in federal penalties. chrysler also doing the same thing, they made $800 million in civil penalties. compensating jeep and ram customers because they basically installed software that misstated the guidance on emissions. ashley: cheating a little bit. >> unlike vw was premeditated intent with the defeat devices. it is different in number of fines, amount of fines paid. in ford's case they say it is not criminally intent. ashley: because they came forward. put their hand up. susan: it is voluntary. they're tracking what is happening with the software. ashley: ford, as you can see down slightly this morning.
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ford's market share surpassing tesla, making ford the second most valuable car company in the u.s. liz: exactly. it has been a two-year fight, right to get back into that second position for ford. right. so basically tesla shares are two-year lows. and you know, tesla still makes 1/10 of the vehicles ford does and gm. ashley: incredible. >> gm still at the top of the heap, 56 billion. ford at 41 billion. tesla at 40 billion. elon musk has the sec fight can't pump the out tweets without adult supervision from the board. the tesla story is a big one. we're watching bond redemptions they're contending with poor cash on the balance sheet. susan: cash burn. liz: your wonk moment.
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ashley: i was right with you. emac the wonk. not a wonk at all. you're very clear spoken. just about half hour from now the bowing chief will answer questions about the 737 max jet. that is something we rarely get to see though, isn't it? ceo of a major corporation taking questions live. we'll bring it to you. alyssa milano getting pushback on twitter supporting the idea of not criticizing 2020 democratic candidates. we'll deal with that next. ♪ [ telephone rings ] [ client ] - hey maya. hey! you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track.
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and closer to home. edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do.
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♪ ashley: "day tripper." i don't know if stu likes that. liz: i was thinking he wouldn't like. play what he wouldn't like while he is gone. ashley: may be rolling his eyes. he is the worst, justin, the executive producer. susan: he is what? ashley: now he is in trouble. check the big board. we're up 17 points at 26,550 on the dow. stay on your money. bring in brian demetro. i say the so-called experts i say so-called because they got it so wrong. were you surprised? >> i wasn't surprised at all, when you have a tax cut, when you have deregulation, when you have stable money you're going to have minimum 3% growth. that is exactly what we had now over five quarters running so
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that should be the floor, i mean if we continue that kind of policy, there is no reason we can't have something like 4% or higher out of the recession. ashley: that was my next question because the first quarter, has been, well the slowest quarter at least the past decade for the most part. we kind of pick up from there. if indeed we get the trade deals done, take away from some uncertainty regarding those. you think 4% is very achievable a loot evident in the second quarter? what about the rest of the year? >> well, our denominators have been so low since 2018, 2009. we haven't grown at all. we didn't in the obama years. we have so much catching up to do to get back to the old normal. we should be able to grow at 4%. remember back in january everyone said the first quarter would come in low because of the government shutdown. lo and behold the private economy picked up the slack. ashley: the naysayers were out quickly last friday, when you
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dig beneath the surface, consumers wasn't great, business investment wasn't great, housing continues to struggle, what do you respond to that? >> housing struggle is great news. people are cycling out of hedging the dollar, hedging the economy, by going into housing like they did into the early 2000s, they're pushing into the real economy. that is a positive sign. i will say there is one negative. this economic boom produced a surge in state and local tax revenue. there have to be state and local tax cuts for this economy to be sustained. ashley: that's interesting. you know here in the northeast we've seen such a exodus if you like out of the high-taxed states because of the salt deduction being capped at 10,000. how much of an impact does that have overall do you think. >> states like new jersey, illinois and new york are watching people go to florida. but what we do know with 3% growth there is tremendous increase in state and local tax
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revenues. if that money all goes to the government in terms of higher spending, that can choke off recovery. ashley: is there anything on the horizon as we look into 2020, we know the economy is performing well now. but there are those that say, well, maybe towards end of next year we could see recession, maybe just as we head towards november and elections. do you think this will be sustained longer beyond the 20 to election? >> ashley, that is old business cycle theory. if we have a trade breakthrough i think this recovery can be sustained well through the next decade. ashley: you do, no problems? >> sure. if we have free trade, sound money, tax rate cuts, deregulation, if we get the lower spending i'm talking about in the state and local level there is no reason the recovery can't be sustained. ashley: going into the new year, everyone was talking about a global slowdown. it was grinding down to a halt, that inevitably would hit the u.s. economy. is that not the story anymore? >> i don't think when the rest
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of the world sneezes the united states catch as cold. it is when the united states catch as cold the rest of the world sneezes. the united states can lead global growth. i don't think there is any question about it. ashley: good place to leave it. thanks for joining us this morning. much appreciated. >> thank you, ashley. ashley: now this, "the new york times" apologized for a second time after publishing a cartoon deemed anti-semitic. the cartoon depicted president trump led by a dog depicted by israel prime minister benjamin netanyahu. the second apology in a tweet on your screen. it was more forceful than the first one. let's bring in howard kurtz, "mediabuzz" host. howard, is this "the times" being tone deaf? >> tone deaf would be a nice diplomatic way to put it this was anti-semitic filth. the prime minister of israel as a dog with a star collar and president trump wearing a
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yamulke? how would any editor think this was fit tore publication. the first one it, didn't meet "the times" standards. it was removed. there was no apology. the paper took so much heat in the international edition. it realized it had a big serious problem on its hands. ashley: the new apology, basically highlights a single editor working without quote, adequate oversight. for a paper this size an influence, that is just remarkable, is it not, a single editor could make this kind of mistake, no one oversees it? >> absolutely inexcusable. i want to give a shoutout columnist bret steph stevens gives a very tough piece about his paper. he says this astonishing act of ignorance of anti-semitism. the paper owes the israeli prime minister an apology. saying if that dog had been pictured, alexandria ocasio-cortez or ilhan omar or nancy pelosi, would an editor have been so tone deaf, that is okay, we'll publish it? ashley: that is the question.
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there have been a lot of air of anti-semitism out there. this kind of validates what has been said, there is definitely this air out there that is, you know, essentially going uncaught. it is interesting "the new york times" finally had to fess up not once but twice? >> absolutely. ashley: another one for you, howard, alyssa milano retweeting george takei's tweet pledging not to speak negatively about any democratic candidates. it makes it embarrassing for those that want to support democrat candidates, does it not. >> why not just give up her job and join the dnc. this is so intellectually dishonest. i stopped taking alyssa milano seriously when her hatred are if the president that the mag today caps are new white hood. if you support president trump you're a kkk member. 20 democrat candidates running, that nobody should tweet anything negative about them,
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what stupid thing they say, what radical position they take, even constructive criticism this is pure 100% partisan cheerleader. she forfeited any remaining -- ashley: it helps the republicans. makes the democrats look ridiculous. >> i don't know if democrats fault. george takei "star wars" hero. we'll take any democrat over donald trump, and say nice things about them, promise. ashley: ridiculous. howard, thank you so much. appreciate it. >> great to see you. ashley: retail, wholesale, department store union not happy with amazon's one-day delivery plans. they have been complaining about working conditions at amazon warehouses. susan, how is amazon responding? susan: should tell you what they're complaining about, right now the fulfillment centers, the workers are working 12 hours shift. have to handle 2 to 300 packages an hour. if you go to one-day prime
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shipping how will they be able to keep up? what about their working conditions? this comes from the retail wholesale department store union which has been a long time critic of amazon. amazon sending us a statement, one of their vice presidents says this is misguided. it is self-serving and there are a lot of falsehoods in these accusations. now we know that amazon is the second largest employer in the u.s. line walmart. interesting that the two largest employers are retailers mind you. it is cutthroat competition right now in e-commerce. one day delivery is very important. ashley: warehouses are not unionized? >> none of amazon's workers are unionized. ashley: self-serving, here is a union trying to essentially bash amazon but at the same time make a pitch to amazon workers. liz: jeff bezos, liberal icon, who owns "the washington post," he better expect a big pushback from the unions because the workers are saying these are
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really harsh working conditions in those warehouses. you ain't getting tax breaks from cities going forward if you don't fix this problem. whole foods is notoriously anti-union. we get it. we understand it. what the story is but you know, there is a deeper reality that the workers are saying what's going on in amazon warehouses? susan: amazon says we pay $15 an hour. look at largest employer, walmart, they have been anti-union for their existence. ashley: they have. susan: so what does that say? ashley: all right. interesting stuff. thank you. president trump by the way tweeting about unions. here it is. quote, i will never get the support of dues crazy union leadership. those people who rip off the membership with ridiculously high dues, medical and other expenses while being paid a fortune but the members love trump. they look at our record, economy, tax and reg cuts, military, et cetera. win. one of the latest tweets. susan: i like that, win, win. ashley: border patrol officials telling our very own maria
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bartiromo radio ads in central america are selling illegal immigration to the u.s. national border patrol council president brandon judd is up next to talk about that. also ahead, white house economics advisor larry kudlow, his take on the breakout gdp numbers. what about joe biden's pitch to the middle class? mr. kudlow up in the 11:00 hour. more "varney" next. ♪ oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens. and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate... and be better protected from mayhem... like me. ♪
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ashley: just about an hour 15 minutes into the day's session on monday. we've been pretty much, we're trying ever so slowly to move i here, up 19 points on the dow, pretty flat start to the week. 26,563. now this a border agent told fbn's maria bartiromo ads in central america are encouraging people to come to the united states. we have brandon judd, border
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patrol council president and active border patrol agent. welcome to you. explain what these ads are actually saying. >> this isn't anything new. ads like this have been running for years. you have to understand there are two different sources that these ads are going to come from. they're either coming from the criminal cartels which is a business albeit a very illegal business but their profits must exceed their expenses. so they will run ads to try to recruit people to come to the united states illegally. they of course charge them the fee to get them up to the united states border. because nobody has taken credit for these particular ads we have to believe that these ads are in fact being run by the criminal cartels. the other source is going to be open border groups that do this for political reasons, that try to organize these caravans to bring them up. pueblo is one of these groups. one of those two groups but these particular ads i have to
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believe are criminal cartels trying to generate a profit. ashley: if this is going on for years, why are we seeing such a massive surge now, especially when we have a president who pushed back so hard on illegal immigration? >> because everybody knows that the loopholes exist. so the loopholes didn't start being exploited until around 2014 and so we just seen this continue all increase. one of the main drivers behind this mass of surge of illegal immigration because our economy is so good. jobs are so plentiful. we're always going to see the ebbs and flows in illegal immigration. when jobs are plentiful, people are going to come. when they can game the system, people are going to come. that message has been spread throughout the world. remember, we're not just dealing with people from central america, from mexico, we're dealing with people from around the world. these messages are being spread throughout the world and so we're dealing with that problem. ashley: brandon, also pay
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incentive now, offering 5% raise to border agents if they will stay another year. will that help? will it help with morale and is that a good incentive? >> it will help. what you have to look at is, when we have such a high attrition rate due to the politics that surround our job, we have to do something that is going to retain our agents. we're sending national guard to the border. we're sending officers from the ports of entry to the border. that is because we're losing our agents. we have to do something to retain our agents and pay incentives are part of it. under the obama minute station in 2013 took a pay cut. we're the only law enforcement agency took a pay cut, took it because i was so loudly outspoken against the obama administration and their policies on illegal immigration.
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we have to restore the pay and this out of the box thinking that president trump brings to the white house. this is the business expertise. we need to do something to retain our agents. what are your my authorities and he acts within those authorities. kudos to him, we'll leave it there. brandon judd, thanks very much. appreciate your time. >> thank you. ashley: now this, this is remarkable. if silicon valley was its own country, its gdp would make it the second richest country in the world. susan: number two. ashley: you have the, that is just remarkable. >> is. it is home to apple, facebook, big tech, worth trillions of dollars. so they did the calculations according to the latest u.s. business bureau. the calculations say if you divide it by per person in silicon valley 128,380 in 2017. $66 less than qatar.
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ashley: all the oil money. susan: don't forget, california will be the fifth largest economy in the world, 3 trillion. silicon valley is the heart of that. is it really that surprising? ashley: a lot of money. susan we have something breaking. president trump tweeting about joe biden a few minutes ago. here it is. the media, fake news, is pushing sleepy joe hard. funny i'm only here because of biden-obama. they didn't do the job. now you have trump who is betting it done big time. win and big time. disney has a highest stake in a gaming company. gail dickey will have details on that story next. ♪
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termites. we're on the move. hey rick, all good? oh yeah, we're good. we're good. terminix. defenders of home.
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ashley: i love that. to gaming. a sector we cover a lot on this show. disney looking at buying the maker of the game maple story. you probably haven't heard about it but we're talking big bucks.
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we're joined by gail dickey, "gamer world news" entertainment ceo. tell us all about it. why is nexon a big deal? >> this is a great big deal because it is one of the 12 most lucrative game-makers on the planet. they had earnings last year of 2.25 billion. just to give you a little perspective, the south korean global gaming market is about 5.7 billion. so that would mean 39 percent of those revenues are attributed to nexon they have an amazing group of 80 live games. they're in 190 countries. i think it's a major move by disney to enter into the game platform business and directly compete against epic and steam. that means they would have a different business model. they have been known as a play to win model for most of their years since about 2005. which has been highly criticized much but these games are amazing. they will add to disney's ip.
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look for them to become narrative in terms of tv and film, especially maple story which is 81% year-over-year growth. also what is interesting about this story, kim jong-un reached out to disney and literally asked a high level executive to purchase their company because their statement reportedly saying that disney is a company that doesn't force kids to buy their products. in fact families gladly pay them. so this is a great move. i think it bodes well for disney's, what can we call it, global dominance in every vertical in the entertainment space. ashley: maple story is one of the games you have to buy within the game. i think i read is somewhere you can spend up to $4,000. what do you get for $4,000. eternity, you can't be killed. what do you get for that? >> right. so let me clear about that. nexon, there is a lot of
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different places you can go open market to buy these type of digital assets that help you live longer. they help you respawn and stay in the game but one of my entrants telling me over the weekend he has friend that spend 20, 25,000. by the way they're not winning money. they're just staying alive in the game. ashley: wow. what is the age group of these players? clearly hopefully not 12-year-olds with their parents credit cards? >> he will with the age range, my intern been playing the games since he was 10. he is now 24. most of the kids playing have been playing 15 years. it is very easy entrance to play the game. it is very, it is sweet, it is compelling. it's a role-playing game. you join in a lot of people to help defeat the antagonist which is called the black mage. ashley: you could spend thousands of dollars keeping
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yourself alive trying to do that. great stuff as always, gail, thank you very much. >> thank you again. ashley: gaming is absolutely remarkable. two big events coming next hour. the boeing ceo answering questions about the 737 max and larry kudlow joins us to talk about the economy. big hour ahead. we like to call it the power hour. ♪ from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. ... why there's ocuvite. screen light... sunlight... longer hours... eyes today are stressed! but ocuvite has vital nutrients to help protect them.
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try it today. ashley: good morning. coming up to 11:00 a.m. on the east coast and i'm ashley webster and stuart varney will be back to margaret we promise. big hour ahead here from boeing ceo any minute and holding a news conference and you can see him right there following a shareholders meeting, side and take life questions and all about the company's response to the 737 jet problems.
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we'll talk with him are as well. we'll talk to larry kudlow with a blowout economic growth in the fourth quarter but what about the next three months? and how close are we to a trade deal with china. we will ask them but not sure will get an answer but we will ask the campus woman alexandria ocasio-cortez getting pushed back after she hosted a fun run over the weekend in queens. the problem? runners do not know they were donating to her campaign. joe biden holding his first campaign event today going to lay out his vision for rebuilding the middle class. pete comes up on that story and the third hour of varney and company starts right now. ♪. ashley: the president on an absolute terror on twitter. in his sight, joe biden. he just tweeted this - that is
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the latest from donald trump. check the market for you. we have been flat from the opening go and it'll be dow up seven points at 26550. take a look at spotify music streaming behemoth promising earnings report from them today just cracked 100 million paid subscriber milestone, total revenue rebounding from escort miss and they're putting quite the chunk of change into pop casting, 345 million to acquire multiple audio startups but the stock was higher earlier but now down to, the present but let's check off of it. parent family of google. earnings report after the market closes and as you can see our
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alphabet results right here on fbm and will break them down as they come in and there they are today at 4:00 p.m. do not do that. now this, boeing chief dennis muilenburg set to speak to shareholders any moment now. jeff locke is in the room where all this is happening. jeff, try to set the scene if you could. >> upkeep voice down as the meeting is continuing and taking tough questions already from shareholders who did more of those questions from one shareholder asking about whether he thought the 737 had been rushed into production and another shareholder saying the fact that he has broke the title of ceo and chairman of the board means you don't have anyone else to blame because those two jobs are not two different people in a number of shareholders proposals and one that would cause the company to disclose
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any of its lobbying efforts and another to exclude the effect of share buybacks on the compensation for the ceo and other executives. company spent $90 on buybacks last year and shareholder buybacks and also a move to separate the ceo and chairman of the board which obviously takes dennis muilenburg out of those jobs. no word yet on the vote of those we should have that shortly as well as a press conference coming up. ashley: jeff locke with his golf voice. just finished up with a q&a with a shareholders so we hear from the boeing ceo any moment now when he addresses the media also got ivan, cio and ivan, you are a boeing guy so you see this controversy over them or hurting them in the long run? >> i see it helping him. they will probably be making safer planes with more of the futures standard however i think
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there is a solid bottom now the stock because it up today in the face of a lot of bad news and held up very well in a lot of bad news and the airline industry is capacity constrained and they need claims and boeing has a twenty-year backlog of demands. ashley: you said to me i guess you could say they have a twenty-year backlog but this could hurt, trust in the planes and other carriers could cancel their orders but that's not so easily done. >> no, multi- year lead time to get a plane and you can't just give up your spot in line, if you will, and get in line of another airbus and wait another three years. the airlines are desperate need of planes to meet the growing demand of airline travel. ashley: has boeing botch this whole event because after the second crash there was a groundswell of groundings from these planes from the world in the u.s. under the faa were the last and boeing maintaining these planes were perfectly fine and fit to fly and now they are saying we got the fix so why would they need a fix if there was nothing wrong with the
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planes in the first place? did they not get out ahead of this quick enough? >> in hindsight, no. but. ashley: i thought you were in denial for quite some time. >> i think, thank god, it was not a systemic issue and there were not more fatalities but if there was some type of issue with the operating system or software pilots that may have experienced some issue were able to have bullet when i'm flying the plane and had a problem with the maneuverability and needs to be looked at and we all know if there was a lot of issues raised and certainly any time a pilot is find a plane and they have issue with the functionality they do reported back to have it looked at as soon as they land. there didn't seem to be a systemic issue with the maneuverability or the handling of the plane. ashley: there have been a number of reports from your times from ex-employees and mechanics what have you that they look, this is a pressure to crank out these
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planes and they worry about the safety of this metal shavings in places that should not be ends anecdotes that make you think how safe are these planes? how much - has that done damage thing boeing has gone insane it's not true. >> i believe safety is important and they do take precautions we also have a tremendous feedback loop that exists in the ongoing flying of the planes and functionalities of the plane so there were systemic issues or even concerns in the production process think we would've heard something in an article in the new york times. ashley: does airbus gain from this from the trouble the boeing? >> well, a little bit because some european characters in a political move may want to move from boeing to airbus but the fact that it's a duopoly and there such demand for planes boeing has not seen to have lost orders at all and airlines can't cancel because [inaudible] the
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fact that the more planes and the 730, 737 max is a phenomenal plane and good for short and long haul and the serviceability has been great and i don't even think southwest would even though they had made a statement they might consider other planes would you move away from boeing that something in negotiation is they are looking into the flight but they are very committed to the 737. ashley: there have been complete for pilot saying sometimes boeing makes changes and were not always told about them and you think this is part of the process to make the system ultimately better? >> yes, i believe that could happen. software is probably being constantly updated the way systems are computer systems are in new patches for your computer and there are times programs change and in the computer, the functionality and the change that those you off a little bit
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and this will help, i think, a better indication of the field into the pilots and looking for a more bigger feedback lip from pilots for functionality. ashley: ivan, stay there but your stay with us and we have a lot and you can't get out. [laughter] air bb will be part of the iconic rockefeller center in new york. 10 floors of the complex will be converted to luxury air b&b rentals. the rooms will be on the high floors allowing guests to see st. patrick's cathedral and offering a birds eye view of the rockefeller center's annual christmas tree lighting with the matter how much they will go for but they will not be cheap, i'm sure. now this, more news from the formerly state of california mega- mansion sailed down 26% since the start of this year. another omen. >> that is so interesting and it's partly it. it's a seven year low in home sales in los angeles county. why is this happening? home prices nearly doubled over the last seven years and people are getting - it is the home of
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homes put up for sale in orange county is up 40% so the home prices are so high in this los angeles county people are not buying. the median price is about $519,000 and combine that with the lack of properties and traffic and cost of living there people are doing a second look there and say do we want to live your so it's in a market correction now. ashley: weather is great but at what price? >> elon musk driving to the point of insanity the left of the tunnel. [laughter] ashley: thank you. we do expect to hear from boeing ceo any minute and will be taking questions about the 737 max debt and when he stopped talking you will see it right here. later this hour we talked to larry kudlow the economy appears to be firing on all cylinders blowout growth in the first quarter but is the white house
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actually getting that message out? we ask him and we'll be right back. you into ♪ ♪ ♪ now i'm thinking...i'd like to retire early. let's talk about this when we meet next week. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours.
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2,000 fence posts. 900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic. we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow, the day we'll finally get something done. ( ♪ )
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ashley: fallout from the jesse smolen case chicago stop prosecutor is now facing a subpoena to appear in court according to the chicago sometimes a retired judge wants box to exactly explain why she jarred dropped all 16 charges against the empire actor. police a small let staged a hate crime attack against himself back in henry. huge earnings week taking off today alphabet parent company of google reporting after the bell essentially flat right now down with equity research joins us and ivan is still with us and
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have him for the hour. let me begin with you. another record quarter for google? what are your correcting after the bell today? >> we know they're in the tech names it's not just google but the one to punch between google and apple and your seen strength on the advertising and the big focus what aws has done and microsoft - >> and slowing down. everything is relative only down by what measure but there is a lot of competition in the operating could be google under pressure. >> no doubt but when you look at what [inaudible] right now for google's question with [inaudible] running cloud can they gain shares in cloud and that's the key to evaluation. ashley: everyone use google pretty much but not everyone but the number of users they have it's remarkable, is it not? >> it's a stalwart that you
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cannot deny. right now the question is can they start to expand those tentacles into cloud and you look at autonomous and right now with uber and left more focused on the economists to get more of that evaluation and the two key things are cloud and autonomous and if you looked up in the dictionary you would see google. ashley: let me bring in ivan on google. google's autonomous division has been doing very well. i'm sorry, interrupting ceo is not talking and left listening to dennis. >> before i take your questions i like to share just a view brief opening comments. all of us at boeing are deeply sorry for the loss of the life and ethiopian flight 302 and line flights extent accidents. we feel the immense gravity of these events and recognize the devastation to the families and friends and to loved ones who have perished.
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there is nothing more important to us the safety of the people who fly on our airplanes. every day 5.3 million people fly safely on boeing airplanes and on average more than 2900737 airplanes are in the air with nearly half 1 million passengers on board at any given time. at 737 takes off from the world or lands roughly every 1.5 seconds. through the work we're doing now in partnership with our customers regulators to certify the moment the software update the 737 max will be one of the safest airplanes ever to fly. we would have been in constant contact with our customers and listening to their needs to ensure the fleet is maintained appropriately and positioned for efficient return to service once cleared for passenger flights. our teams will take an entry
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into service approach with every plane returning to service which includes deploying teams to all our max operators providing dedicated, real-time operational support. we also will provide enhanced training and supplemental education materials for our airline customers pilots. boeing has an important role to play in an advanced training efforts that support safe operations. in addition to the software upgrades that we are working on we are committed to going above and beyond in training. while we focus on the safe return to service of the max the fundamentals of our market and business remain strong. i want to thank our team for their ongoing focus on safety, quality and integrity. with that, i'll be happy to take your questions. >> dennis, a couple times he said we own it and what mistakes what mistakes do you own? you mentioned you will earn and
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re- earn trust. there are a lot of passengers who are afraid of the max weiss of the trust boeing it will be safe with this upgrade? >> david, our commitment to safety is unwavering and we do regret the impact this has had to passengers. we know we do have work to do to earn and re- earn that trust and we will. i will say the first part of the question as we have been part of both investigations we have been very diligent about not respecting the integrity of the investigation process throughout the providing technical support and we know that in both accidents there was a chain of events that occurred in one of the links in the chain was the activation of the mcat system because of an erroneous angle of attack data that was a common link in both accidents. we know that we can break that link in the tape and that is a link we owned and is our response ability to offer in the
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soft white update will take that. we take the max back up and fly safely and will be working very closely with our airline customers and with the faa and with regulatory authorities around the world as we finish up the certification process on the software update and have safe reentry into service and we will be diligently doing that airplane by airplane with our customers and getting it back up and flying is obviously a key step in rebuilding confidence and then we will work with our airline customers over time to ensure they have the support they need and that we rebuild public confidence as if he gets back up and operating. >> was it a design mistake? >> what we have seen is we looked at the mcat erroneous angle attack they came into the airplane and look back and take a look at the design of the mcat system itself, original design we've confirmed that it was designed her our standards certified for our standards and
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we are confident in that process and it operated according to the design certification standards we haven't seen a technical slip or gap in terms of the financial design identification and that said we know it's been a link in both accidents that we can break in a software update that we know how to do and we own it and we will make that update. this will make the airplane even if they were going forward and i'm confident with that change there will be the safest airplanes ever to fight. >> hello. in the light of the [inaudible] have you considered resigning? >> i think the important thing here is we are focused on safety. i can tell you that these accidents weigh heavily on us as a company. i've had the privilege of working for the boeing company for 44 years and we know lives depend on what we do. we take that very, very seriously.
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at the privilege of doing that for my entire career and i can tell you are boeing employees as well take that seriously. i'm very focused on safety going forward and it's important that as a company we have those clear priorities that were taking the right actions and have the right culture and i am strongly vested in that and my clear intent is to continue to lead the front of safety and quality and integrity. that's who we are as a company. i think it support and to continue to stress that. we deeply regret what happened with these accidents. to get to the core of our company. i've had the chance to walk the factory floors where we build the max airplanes over the last two weeks and a chance to talk with our test pilots and the opportunity to talk with our engineers to the core of our people they care about this business and the safety of our airplanes. that's what i'm focused on. >> this is the first opportunity we had to talk to you since this unfolded and why did you put in the mcat system in the place
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without notifying the airlines or the pilots and why did you not tell the pilots that the angle of attack disagreed warning light was deactivated? >> let me take those two questions on in two answers when we look at the original design of the system in some cases in the media it's been reported or described as an anti- stall system, which it is not but it's a system designed to provide handling qualities for the pilot to meet pilot preferences. we want the airplane to behave in the air similar to the previous generation 730 sevens that is the preferred pilot field for the airplane and how it feels flying it and mcas is designed to provide those qualities at high angle attacks with a purposeful design and something that is designed to be part of how the airplanes fly as part of the submission process is not something that's a separate procedure or something that needs to be trained on but is fundamentally embedded in the
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quality of the airplane and so when we train on the airplane you're being trained on mcas. it's not a separate system to be trained on. to your second question on angle of attack sensor information certainly we been taking a look at some of the reports are out even again today taking a look at the design of that original system and again i can confirm for you that going forward that angle of attack disagreed signal is something that will be standard on all the 730 sevens maxes and also look at retrofitting that on all the airplanes and be provided at no cost and i think that's an important step four. it's also important to understand that angle of attack disagrees signal in the cockpit is not something that drives pilot action and not something that we design and is the primary flight but in the flight deck of the commercial airplane with pilots care about things like altitude, airspeed, heading, pitch and roll. that's what they fly.
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those indicators are in the flight deck today and airspeed and altitude in particular are the relevant items around these two cases. those are signals that are in the cockpit today and things that provide audible warnings to the pilot as well including things like stick shaker and that is where we focus on the training effort going forward. >> sir, if i can, you have said that the mcat system and the angle of attack connecting it to just one sensor that met your process and yet the fact that it's only plugged into one sensor and could fail seems like something that should have been foreseen but when we talk about reestablishment credibility with flyers they are reading about reports that whistleblower after whistleblower comes forward to the faa and to congress to say there were problems with the
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certification process and concerns about him cast and you have stop short of saying there was a mistake made in the process of how to you when that trust when there are some the feel you have a real credibility issue when you boeing is not come out and said we did not do this right. >> those are fair questions but again, we probed on those questions ourselves. we got back and looked at both accidents and have done deep assessments of the airplane in the design and we confirmed the mcas system as originally designed to meet our design and safety analysis criteria and vacation criteria when we design a system is airplanes are flown in the hands of pilots and in some cases are safety analysis includes not only the engineering design for the actions the pilots would take as part of a failure scenario. that is all baked into a system or two and two and analysis.
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going forward we've identified a way to improve it and to make it a dual sensor feed that is the change were making with the software update and i'm confident that will create an airplane one of the safest in the air to. >> is that it operated it as a sign which could not have possibly designed a system that would activate 21 times pushing the nose of the plane down to an unrecoverable dive. >> again, if you look at the end to end system procedure assigned with this, in the case of mcat failures the nero is a rely stabilizer procedure and if that occurs in go through the check listing is published as part of the preliterate airport look to that checklist a cause of action that would be taken from parent management pitchman image of the airplane refers to the cutouts which is that after an activation that was not pilot induced that you would hit the cut off switches. in some cases those procedures
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were not completely followed. >> but the pilot struggled with the process either recognizing what was happening or lamenting those steps in the first line air flight was a jumpseat captain who told the flight crew what to do and the second was does not appear the ethiopian folks generally follow that checklist were not able to recover does that mean - were you overly confident in the pilot's abilities given the circumstances particularly when they do know mcas was there in the first place. >> on the back to my previous comment. when we look at both accidents and this is common to most airplane accidents that occurred over history there's a chain of events the multiple computing factors. there are factors that we can control in the design and in this case that comment link related to the mcas system and its activation. we will break that link and prevent accidents from or like this from happening again. >> with the accident have happened without mcas?
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>> there is no singular item and it's important that we all focus on letting the medication process run its course and our job is to focus on safety installation but we will continue to support the investing process and that is the right way to handle this in the long run. this industry is safe because of the integrity of the safety process and the ways these ossetians are done. it's a continuous improvement process over the last couple of decades has continued to dramatically improve air safety and is the safest form of transportation in the world because of the integrity of the process and we will support the integrity of the process and make sure the max is the safest airplane others of like. >> a lot of airlines have lost money because of the grounding of the maximum can you say anything about how you will handle that? >> were actively engaged with all airline customers and deeply regret the impacts of their
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operations and customers and i know it's difficult and i personally talk to many of our customers and can tell you our team is out point with the customers on a day-to-day basis. i will not comment on individual discussions by airlines but we understand the difficulties that this has caused. our partnerships with our airline customers are strong and we will work together on recovery efforts the first focus here is safely getting the max backup in flying and then we will address the following issues. >> [inaudible] >> dennis, your repeated this message that the certification process in the design process for mcas which followed, as per usual, consistent with what you've done but forgot about the process but the final design of mcas was deeply flawed in your engineers are fixing it and testing the fix today fixing very specific flaws which are clear in the flights so can you
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admit that the design was flawed? nevermind the processes you went through and did the best he could but what you came up with in the end was flawed. >> or go back to it again i said earlier but we designed the max to have the flying qualities desired in the hands of the pilot and mcas system is part of that design effort and we have gone back and confirmed as we do with safety analysis engineering analysis and we followed the steps in our design and serving process that consistently produce airplanes and in this case again as in most accidents there's a chain of events that occur and it's not correct to attribute that to any single item and we know there are improvements that we can make to mcas and we will make those improvements. the reason this industry is safe
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is that we never stop making safety improvements and never claim that we have reached the end point. we are continuously across all are airplane programs improving safety every day. we always look for opportunities to improve. that culture is unafraid to go make safety improvements over time and that culture is what is driven this to be an incredibly safe industry. that is our commitment we will not waver from that were step back from that but we will continually look for opportunities to improve safety and that our response ability and that's part of me earning the trust that i talked about earlier. [inaudible conversations] ashley: there you have it that was boeing ceo dennis muilenburg addressing the media and getting pointed questions but not directly answering them. he basically said they have are deeply sorry for the loss of life from the two crashes involving the 737x jet and said they feel that intense gravity
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but they say also nothing is more important to boeing and safety enough what we expect them to say but he was asked very pointedly about what caused these crashes and was it mcas system that was installed and the pilots weren't really given proper chance to work with the system and he denied all of that and said there was the common link between the two crashes and that was the mcas system and said that is now being disconnected and they believe this will address the problem. however, the question that became from the reporter and they are asking them directly what is was the system fought and he came back to the fact that it was a chain of events digesting ethiopia crash that the pilots in the crash did not go down the checklist of things to do once the plane started to behave in a manner the pilot didn't want. somewhat vague but let me bring in analyst ivan still with us. your reaction to dennis muilenburg frustrated the at times not really giving specifics for talking in generalities. >> i think his responses is what
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you would affect from a ceo. they will not admit the system was flawed. in times there are different situations that bugs in software or in operating systems can commence. as far as the stock i'm not belittling the tragedy but i believe you want to buy good companies with her having a bad time and this is an opportunity. ashley: did he do enough? >> he did not really answer the three questions and do nothing specifically which is what the reporters were asking was there problem from the beginning. >> is never good for a ceo in the companies with appear to have information giving more information in their questions then the co is giving in his answers back. it's very consulting controlled way of corporate speak and despite the stock has been taking hits and clearly there's a problem with the system and they are fixing it and boeing is
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trying to fix it but it was extremely frustrating press conference i thought reporters donate to the job there trying to get to the bottom of it but the stock is up 9% since the first bit of crash of the 737 max. ivan, we talked about this before the press conference but boeing doing enough? was a good performance connected he say what he was supposed to - find performance from the co but still a lot of questions because people want definitive answers and i think what he said was look, they're both still under investigation for getting information today so he could stay that clearly and obviously did not want to get into it too much but it is festering especially when you try to win back the trust of the flying public. >> yes, it's a very hard position for a ceo to be in. >> but you have set yourself there's redundancies throughout a plane so why were there - simple question, why was there redundancies.
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>> i was surprised to hear there was only one sensor but usually with all the systems in case there's a failure because unfortunately with a plane that if you have a problem it can be a fatal problem they can just pull to the side of the road and fix it. i'm not. ashley: i'm not so sure the answers are very satisfying to the public. ivan, thank you so much but let's check the big board and the dow 30. they were trying to gain traction when we been the last couple hours with 26,000554 and that's bring in our resident bowl by the name of ryan payne. i think he did you play guitar or you're in a band. [laughter] ryan, a plane a happy tune for the market because you say it's the matter what the so-called experts say the doom and gloom, gdp number was the latest example of how the so-called experts are not getting right. >> i like to use that in word "-right-double-quote, expert and glaring example of how wall street is always usually wrote i
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should say they miss the mark on gdp it was lights out gdp for the first quarter. the point to present the other thing is earnings. earnings have been phenomenal so far this season and same thing in wall street without we haven't earning recessions quarter and they were wrong about that. you have two big misses in terms of the projections are for stocks in the economy are going which is interesting. ashley: and continuing to build up or go up or whatever you call it but the so-called experts are nothing maybe an outlier that they do expect the economy to slowdown in protecting 81.5% growth number for the second quarter but how long are they connect. >> it's okay to be wrong but not okay to stay wrong. [laughter] that's exactly what you are seeing. morgan stanley came out that second-quarter gdp should put out and that was a big one and then the big money poll that came out from barron's this week had most money managers at 51%
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were bearish and the first time that we've had that many bears was around the election in november. i think it's mainly on sentiment and i think there's an old saying the bull markets climb and that's the problem with this whole bull market that has lasted for ten years. i think i would call it postherpetic stress system came to 2008 and people never really got over that and never fully embraced the start economy. ashley: still a lot of money on the sidelines original that consistently but perhaps this narrative is market overvalued and that money is still parked there and not ready to jump in yet. >> that is crazy too. the market is back up to the heights and evaluations are cheaper than back in september at the all-time high and if you get earnings forecast not only going to this year or later this year but next year they are both going to be positive at 8% fourth quarter this year over 11% for this year which is about
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the average for the last five years. ashley: big tech names have carry this bull market over the years so a lot of that time they put those markets other back and traveled on up and where is the next growth sector coming from? where should your money go to ride this wave higher? >> good question but look at the global market. they have been king now for a decade and i don't think they will keep going up but if you look at evaluations across the globe they are a lot cheaper and talk about pessimism. talk about international markets - i don't want to touch that with a 10-foot pole right now so that missions come down a lot there that gdp is still positive but my thoughts are that china gets going and you see that already there gdp came better-than-expected as well and will get it to deal with china was that happens that is going to start to expand global trade and everyone benefits from that in the foreign markets will have been cheaper have a good place
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to be. ashley: very good but good stuff, ryan. got a lot in there. what you play? >> i play guitar. ashley: rock music? >> i play rock or i wasn't at reggae bands but not very good. ashley: straight out of jamaica. thank you, ryan. we got breaking news on the measles outbreak right here in this country. >> 78 new cases in just the last week alone and now this is hitting - raising eyebrows 704 cases of measles and it was thought to be eradicated in 2,000 and the highest number since 1994. highest in 25 years so what we're seeing is washington state and new york outbreaks and who is saying - measles worldwide quadrupled in just the last year alone. this is now extremely serious situation with what is going on. ashley: and it just goes on and on.
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>> beer is the numbers will continue to go up. ashley: i thought it was eradicated. interesting. as we been talking about the coming growing in a blot rate of 3.2% in the first quarter how much growth can we expect going forward? asked ryan payton will ask larry kudlow the same question. president trump going after new york people are fleeing the state because of high taxes and will also ask larry kudlow about that what is offered he will be next. into ♪ logo
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ashley: simply put there's been in the was a couple of weeks for money. last week's gdp number adding fuel to the fire let's bring in another than larry kudlow. white house economic advisor welcome to you. the point to present huge win
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and only up from here. what do you want them to see in the second quarter? >> i still think ready to present trajectory. the key point here is president trumps policies on lower taxes, deregulation, energy opening, traitor form what you have is he's rebuilding the economy and people missed us and don't understand the incentive model of economic growth and is rebuilding the economy and were in a very strong prosperity cycle, the first one in 20 years so i know the skeptics are the skeptics but the reality is the numbers are coming in very strong to prove our case and i want to say on that the point you, not only did growth go up but it beat all the expectations and for a first quarter you could almost put another present in there but inflation came down so i think that's a very good
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combination and you have numbers this morning in the personal income report very strong real consumer spending and another drop in the inflation rate real wages and salaries that his income adjustment for inflation up almost 4% so all these cases are fitting in very nicely and we be happy to stick with the present from my and that's what will go on this one. ashley: when you see a booming economy you expect inflation some economists will tell you to go up and clearly that's not the case. if anything, it is a bit of it so does that open the door for the fed to make cut rates? >> it might. the pen that is independent but they have it themselves talking about coming in lower than their inflation targets which might mean a lower interest on their own timetable and that opens the door but it is interesting this is a supply side appropriate productivity is rising,
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investment is rising and here's another stat for you. core capital goods orders or core capital goods orders up 10% from december through march, 10% edit innovate is a big number and business investment, productivity, that in turn led to real wages and now you're producing more goods with the same volume of money supplies but not too much money chasing goods and is a supply-side boom and i would think it will continue. >> do i want to ask what the street from the president. tweeting early about the nra and took aim and part same quote - larry, is that true? could we not have had this cap on salt? >> not sure on that. i'm not spoken about that particular point but as the salt
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business as i said before, don't forget, we basically ended the alternative him minimum tax so a lot of these deductions that people are talking about would not have come about under the old - the most fertile people always get some deductions and may not always get under the old amt system but as someone who lived in new york for 30 years or whatever i want new york to do well and i've spoken to governor cuomo a couple times about this and he cut the corporate tax by the way during his first term i think that was a great move and it helped and my plea to the governor is always to try to bring down income tax rates. state tax rates that are the biggest problem of their in a matter the governor is there yet but maybe we'll talk some more about that. that is my hope. ashley: last one, i'm sure you know this week is another big week for china trade talks and it's like every week but treasury secretary mnuchin says
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we are in the final lapse of making a deal so what can we expect and how close are we? >> look, there are two items on the agenda on trade. what is china and you are quite right. we want to touch on u.s. mca in a moment but on china investor light hauser and secretary minasian going over and i think they are leaving today they will be there this week in china top man will be here the following week so in the next two weeks hopefully will get clarity and we've come a long way on the stocks as you know it's covered all the ground and then some including structural issues and commodity issues but let's see what happens but will get a much clearer picture at the end of this two-week period but i remain cautiously optimistic on this i think we are pretty close. i want to put in a plug for u.s. mca which could produce a $100 billion per year and added gdp and maybe a 170, 180,000
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jobs and that's a huge thing for american farmers will benefit in the new economy benefits with the new ip patent protections and i think the government of mexico released the parliament of mexico are there upper house will pass their labor reform bill today or tomorrow that will be a very positive development in our deal and in bassinet like heiser's thinking. u.s. mca is essentially a nonpartisan bipartisan bill and we are hoping that speaker pelosi has been very cooperative so far will give us a vote in the near future and we can get that through. u.s. mca is hugely important for the american economy and the whole north american economy let's hope that we can mail that with president trumps could have very big trade winds here very big trade winds and that will add to the prosperity cycle that i was talking about before. ashley: as always, larry kudlow,
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thank you. taking a timeout to talk to us. appreciate it. >> pleasure, always. ashley: joe biden holiness for skipping event layout his vision for rebuilding the middle class and pete access coming up on that one. don't go away. logo you wouldn't accept an incomplete job from any one else. why accept it from your allergy pills? flonase sensimist relieves all your worst symptoms, including nasal congestion, which most pills don't. and all from a gentle mist you can barely feel. flonase sensimist. 2,000 fence posts. 900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic.
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ashley: congress women alexandria ocasio-cortez held a fun run 5k in queens with $30 to sign up and where did that $30 go? right into her camping pocket. come and pete access host of fox and friends weekend. pete, correct me if i am wrong but a lot of those runners had no idea where that money was going and they did think it was going straight into her campaign? >> no, they did not know that i want to know did every finisher of that race do they get a participation ribbon because there could not be a winner of this road and i would be 1% and elite and everyone finished with the same time. ashley: don't read too heavily because it - it will warm the atmosphere let. [laughter] >> this is why she did not care because she thinks she is the green new deal. member when she said i'm the boss and all you other guys who have been doing this but i'm the
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boss. i'm the leader because i'm rallying more than anyone else but they probably did not think it would be a thing. in their mind everyone wants to give to comrade cortez because she's the future and she's the chosen one according to herself. there was a shady stuff in her campaign before with her camping managers i don't think they had their arms around what it means to be a public official. ashley: she's the new darling of the far left where does that leave joe biden. we know he's having his first campaign rally in pittsburgh going back to penciling in which donald trump flipped in the last presidential election. joe biden is stuck a little bit and he can't go too far left because then he will alienate those that are more moderate but if he does not go a little bit left phil will get the votes of the far left so what does he do? >> 's speech today is about rebuilding up the class. does that mean the obama in ministration broke the middle class? i just listened to larry kudlow cycle of prosperity and jobs are
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up and wages are up and america is booming. there is one guy repairing this and it is not in joe biden. he's been more centerleft because he carried the legacy of obama won't even endorse him at this point. the party has gone for the left and i don't think he can afford to go left because that would be inauthentic. his only approach is to say that's too far and if you want someone that can beat trump, i'm the man. >> but look at his policies. >> he does not have any. >> you see more blue-collar workers as women ever before. that's a high pain manufacturer job and so that's astonishing that we see not. ashley: how does he criticize that economy? >> how do any of them unless you are bernie sanders who believes the fundamentally will make it into a socialist society and is in a tough spot did i talked to fox and friends viewers in delaware who know joe biden and go to church with him is a nice
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guy but and i voted for him but i want to see who else is running. that's not a ringing endorsement of someone who you don't for three decades. ashley: that's as tepid as you can be. >> there is not yet a rationale for the joe biden candidacy. is it extending obama or beating trump? will find out in pittsburgh with a real joe biden stand up. we find out to great stuff as always. thank you for stopping by. more varney after this. [ telephone rings ] [ client ] - hey maya. hey! you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track. and closer to home. edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do. car vending machines and buying a car 100% online.vented now we've created a brand new way for you to sell your car. whether it's a year old or a few years old,
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ashley: let's take a look at the big board for you. we've been in this particular place, let's say 2 1/2 hours now. slightly higher on the dow, 26,550. a lot going on this week. market weighting waiting. we have fed meeting. a lot to digest.
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we're tiptoeing into the week. take a quick look at boeing. the boeing ceo addressed problems with the 787 max jet, just down slightly. down as you can see very slightly. that will do it for us. connell mcshane in for neil. connell: thank you very much. welcome to "cavuto: coast to coast" for next couple hours. i'm connell mcshane filling in for neil. it's a very busy week in terms of earnings. that is already underway. 1/3 of the s&p 500 will be reporting quarterly earnings this week. stocks continue to hover around record highs. confidence in the economy is popping. president trump certainly touting that. heard larry kudlow doing the same. democrats argue that it is only benefiting those at the top. we'll jump into the big topics with from "the wall street journal" john bussey and ron christie and we're joined by democratic strategist danielle


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