tv Varney Company FOX Business May 20, 2019 9:00am-12:00pm EDT
actually stopped selling to them and they include google, intel, qualcomm, broadcom. frozen supplies to huawei. this story continues to have impact. >> it's a big deal. >> it will have implications with all the dealings with china. maria: have a great day, everybody. "varney & company" begins now. staurt, t stuart, take it away. stuart: good morning, maria. good morning, everyone. it was a stark warning from the president. don't threaten america again or iran will face quote, its official end. the president issued that tweet right after a rocket landed in the green zone in central baghdad. the iranian foreign minister responded with his own tweet. don't threaten iran. president trump laid down the law in an interview with fox news' steve hilton, saying iran cannot be allowed to have a nuclear weapon. that may be having some impact on the market this morning. get to that in a moment. big news on the campaign trail and it's about your money. kamala harris wants all big companies to get a certificate
from the government that they have an equal -- that they have an effective equal pay for women policy. big fines if they don't comply. that is a big step towards government control of employers and pay. pete buttigieg comes out in favor of higher personal income taxes, a wealth tax, and a tax on financial transactions. it may sound like a moderate, but his policies are radical. monday morning and the market is set to open lower again. the dow has been down four weeks in a row and this morning, we are looking at a drop of about 170, 180 points. a guy at the atlanta fed says there will be no rate cuts this year. the market doesn't like that. stay there, please. we have one of the best feel-good stories in a long time. a billionaire just made a lot of people very happy. "varney & company" is about to begin.
on behalf of the eight generations of my family who have been in this country, we are going to put a little fuel in your bus. my family is making a grant to eliminate their student loans. stuart: yes. paying off all your student loans, that graduating class at morehouse. paying off your student loan. that was a very pleasant surprise from the commencement speaker, mr. smith. i want to know more about him. who is he? liz: he's a billionaire, worth more than open rah winfrey. he basically made a fortune from investing in tech. he started his life as a chemical engineer. his parents are ph.d. teachers. they brought him to martin luther king's "i have a dream" speech when he was a toddler.
really, really interesting background. students in the audience are looking at each other, really? they were so surprised, so shocked, so stunned at his generosity. he will pay off the debt for nearly 400 students. tens of millions of dollars. ashley: up to $40 million. stuart: that offer, that gift, so to speak, it was not officially in his speech. it was not on the teleprompter. ashley: they didn't expect it. stuart: he just did it, and nobody expected it. that's why they're all in the audience nudging each other, what did he just say? ashley: he will get a lot of invitations for next year's commencement speech. can't do it every time. stuart: if i was planning a commencement speech for any college next year, i would be looking at jeff bezos, another billionaire who wants to play it like that. that would be cool. that's a feel-good story. what a way to start. now, president trump is campaigning in pennsylvania later on today. according to the latest quinnipiac poll, however, this
is of pennsylvania voters, joe biden has an 11 point lead on him. 53-42. david abella happens to be with us this morning, the go pac chairman. you have an uphill battle in pennsylvania and it's a very important state. >> you have to believe joe biden is going to be the democratic nominee in order for that poll to be relevant which fundamentals suggest he's not going to be. stuart: wait, wait, wait. either not relevant or not the candidate? >> the poll is not relevant because biden is not going to be the nominee. at a time when the democrats are looking for a direct contrast to president trump, joe biden doesn't offer that. stuart: why are you so sure that joe biden will not be the nominee? >> one, look at his rallies. they are the most pathetic rallies. congressional candidates are getting more people at their rallies and this is a gentleman running for president of the united states. two, look at where he stands on the issues versus is he as exciting as kamala harris, will he be able to put the structure
together, questionable. that's why i continue to remind you, keep an eye on kamala harris. stuart: well, wait a minute. that poll is wrong? an 11 point lead in pennsylvania? >> a poll, a poll is a snapshot in time. stuart: you just sit back and say irrelevant? >> this poll today is irrelevant because he's not going to be ultimately the nominee. this is not going to be a race between president trump and joe biden. go through the rest -- stuart: who do you think wins? >> i just mentioned, i think kamala harris. you look structurally how the democrats have now set up their primary. california has moved up to super tuesday. it gives her a humongous advantage. should she get a victory in south carolina or even one of the first two, then she moves momentum into california where they now have the ability to start voting earlier with ballot harvesting. she can start collecting ballots early. her team knows how to do it. they have already done it.
you take california and texas, two states that are both going to be on super tuesday, 15% of delegates to the democratic convention. that's why she spends so much time in texas right now. it's why she has the advantage with california. get an early victory and it takes her on to the nomination. stuart: she wants to guarantee equal pay for women through a government certification process for corporations. i think that will be intensely bureaucratic and it's government control over pay and employment. nonetheless, that presumably is attractive to some voters. >> men and women should be paid the same. the question is who gets to make that decision. should employers make that decision or should government make that decision. at a time when wages are up, at a time when employers have to start looking to provide benefits more than just higher pay, because wage increases are so high, you now have reports out there that they're looking to do other benefits to get the best workers, that's how the american economy should work. that's how employees continue to
have the advantage over employers right now. because you have to compete for good employees. stuart: you make a very good case. i'm just waiting for president trump to really go off on senator kamala harris, because he's not so far. i don't think he's ascribed a nickname to her. he's not gone after her in any sense. i think he hasn't. >> haven't heard anything yet. stuart: you will. >> we will. stuart: thank you very much indeed. fox business has learned, this is coming at us now, fox business has learned the fcc chairman has endorsed the $26 billion sprint/t-mobile merger. charlie gasparino originally broke this story for fox business. both stock prices are up in premarket action this morning. sprint, t-mobile. got it. how about the chinese coffee company, luckin. big debut friday. it's down this morning, though, off 3%. that has dropped below $20 per share. that's premarket. another chinese company, baidu, that was way, way down on
friday because of the china trade problem, obviously. this morning premarket, it's down another 3%. $124 right now. have a look at futures again because we're looking at a 175 point loss for the dow. atlanta fed president says he does not see a rate cut this year. that may be helping send the overall market lower this morning. i want to bring in market watcher mark chandler. he's with us this morning. you think we are just headed down from here, don't you? >> i think this is a long overdue correction in the market. i think that it began before the trade tensions really picked up. i think that we've got another say looking at 24,700, 25,000 there, and on the s&p 500, maybe it's down to 2700, 2720, something like that. so another percent or two. stuart: you say this started may 3rd. wasn't that the time, just around the time when president trump imposed these much higher tariffs on chinese products? >> it's definitely what scared people.
stuart: that's what this is all about, china trade? >> i think it's primarily about china trade. not simply china trade but the ramifications of it. slower growth, u.s. companies like intel, one of the biggest chip providers for huawei, is not going to be able to sell huawei product anymore. stuart: when does this go away? >> my best guess is the next window of opportunity is probably the end of june, the g-20 meeting, major countries meet in japan and there, president trump and president xi probably can meet and maybe get the negotiations going again. stuart: that's a long way away. >> long way away. that's why this will hang over the market as we enter the last part of the quarter. stuart: so it was a genuine break in the market. we went straight up in 2019 until the very beginning of may, then we plateaued and are coming down, the market is a genuine break because of china trade? >> i think primarily. i think it was overdue. someone told me around christmas time, you would be up 16% in the first half of the year, i would be happy for the whole year. i think a lot of people felt that way. so prone to have a sell in may
and go away type of mentality. stuart: suppose this meeting takes place at the end of june, they have that meeting and nothing happens. >> then i think there's going to be a lot to pay for. there will be a lot more damage. people will shrug off the atlanta fed saying no rate cut. maybe we get a rate cut if we have intensification of the trade battle. stuart: we will wait until the end of june. slow times until then. hope to see you before then. stuart: we will see you. thanks very much indeed. a michigan congressman just became the first republican, amash right there, became the first republican to say that president trump committed impeachable offenses. he's a republican. why would he do that? do other republicans feel the same way? we are asking those questions and we will get an answer. amazon facing pressure over the use of facial recognition. shareholders will vote this week on whether the company should be able to sell the technology to the government. and president trump has a serious warning for iran. he says it will be the end of
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stuart: the president giving iran a stern warning. here is the quote. if iran wants to fight, that will be the official end of iran. never threaten the united states again. christian whitton is with us, former state department official. why would the president say this now right after apparently conciliatory words earlier? >> you know, i think it's sort of the good cop/bad cop thing you see in the president. he plays both roles himself. it's an important step if you look back at the history of iran. they have never really paid a big price for taking american diplomats hostage in 1979 and '80, to killing americans in lebanon to blowing up the khobar towers to blowing up barracks in beirut. it's nice to have a president finally push back on these people. stuart: do you think the president actually wants to attack iran militarily?
>> no. i think that's actually the last thing he wants to do. he wants to do diplomacy. he wants to be tough but he realizes you have to be stronger and actually, i think this latest action by trump puts to rest this idea that he was becoming estranged from john bolton, his national security adviser. it seems like the team wants to be firm on iran and he is completely on board with that. stuart: where do you think the country stands on this? i don't think america generally wants to put 100,000 troops back into the mideast. where do we stand on confronting iran? where do you think the unity is? >> i think as with china, with iran, americans have a feeling they have gotten away with too much for too long and they instinctively know this is not a good regime. but absolutely, we should not be looking for another ground war in the middle east. we should use our advantages which are naval power, air power, space power, and that sort of thing that again, is our best capability here, rather than getting into another prolonged decade of cowboys and indians in the middle east. stuart: there's another example of what i would call hard line trump this morning.
a u.s. navy destroyer has headed into the south china sea. that's something that china does not like. so again, why did the president do this at this time? >> that's been an ongoing thing. actually through multiple administrations. it was paused early in the trump administration, then resumed so this could have been planned far in advance. it may not even have been run by the white house. that could have been done by the pacific command commander out in the pacific. just, you know, reasserting to china that its view that it owns the south china sea for the taiwan strait just isn't jiving with reality. stuart: is all this really linked into the china trade story? the u.s. navy sending, you know, a destroyer or naval ships into the south china sea? we've got the huawei situation going on. are they all linked in a new confrontation with china? >> yes. i believe there's been a sea change in washington and you see this on capitol hill. there are very few people who want appeasement with china. there are fewer who are really willing to get tough but across
the board, whether it's militarily or with trade, you know, i don't think we are going to see a lot of movement on trade before the 30th anniversary of the tiananmen square massacre which comes up on june 4th, but you know, the idea that you will demonstrate to the chinese that it's really in their incentive to talk and to negotiate. stuart: so we have hard line trump on iran. hard line trump on china. that's the situation this monday morning. christian, thanks for being with us. appreciate it. >> thank you, stuart. stuart: have to tell you this about blue apron. they received a notice from the new york stock exchange saying hey, your stock's fallen below $1 during the past month, that's the threshold for triggering a possible delisting process. 68 cents is the current premarket quote on blue apron. look at ford. they released details on their reorganization. they are going to, by the end of august, they will have eliminated 7,000 salaried positions. that's 10% of all salaried employees worldwide. this move will save them about $600 million annually.
ford stock still at $10 a share. have a look at futures. it's monday morning. we are going to be down quite sharply at the opening bell, down about 170 on the dow and 1.5% lower on the nasdaq. watch out, tech. look at tesla. going to be down big again today. we are looking at a 4% loss, $8 a share. barely at $200 a share. in a moment we will talk to the guy who told us that tesla was running out of cash and running out of time. looks like he was right. he's back on the show, by the way. bad cash crunch coming at tesla. more in a moment.
stuart: a grim monday morning for tesla. the stock is barely above $200 a share, down another 4% this morning. they've got a cash flow problem. let's bring in the man who outlined the problem to us in the first place. i'm going to call him the tesla killer. his name is charlie grant. he works with the "wall street journal." you were on the show, what, a week ago? >> last week. yes. stuart: they have a cash crunch. the stock has just really come down since then. you tell me, how much does tesla need and when do they need it by? >> well, elon musk said in an internal e-mail that they've got ten months left to reach
break-even. that's not a lot of time. especially when you consider they just raised $2.5 billion earlier this month. stuart: what do you think? they have ten months and they need $5 billion? >> they need as much as they can get their hands on. unfortunately, the currency with which they can do that is dropping every day. stuart: you don't hold out much hope, do you? >> i think their days as a high-flying growth exciting story are over. stuart: do they avoid bankruptcy? >> yes. yes, they can but it's going to take a lot of work and they have to move serious metal this year the make it happen. stuart: who would want to buy them? >> it all depends on a price, right? we are talking -- we are talking $60 billion enterprise value right now. i don't think we are anywhere close, where someone can turn this around. i think that's a big outlay even at the discounted price. stuart: you're saying nobody -- people are -- another company, apple, for example, is unlikely to shell out $60 billion for this company in its current condition? >> i don't see it. i don't see it.
not until they clean up their -- ashley: too many issues. liz: they wiped out two years worth of stock gains. they are at a two-year low. stuart: they put out a tweet not too long ago -- ashley: the one that got him in trouble. stuart: i've got the money for a $425 -- didn't he say that? >> yes. it's a half-priced sale. stuart: is he losing his core true believer supporters? >> i think so. the growth story is behind us and now you have a stock that lost its momentum and still trades at 30 times next year's earnings forecast. gm and ford trade for eight times and frankly have better operations. if you value tesla like that, you get to $50 a share. stuart: your name is charlie grant. you work with the "wall street journal." are you the guy who killed them? >> absolutely not. i just saw the liabilities. stuart: very good. thanks for coming back on the show. it will be interesting to see how this thing goes. premarket, tesla down another eight bucks, barely above $200 a share. charlie, thank you, sir. appreciate it. we are going to open the
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happen. a pizza chain is jumping on the meatless band wagon. testing impossible pizza as they are going to call it. ashley: it's meatless sausage. it's pizza pizza, little caes caesar's. they say they have been thinking about this for some time and they got in touch with impossible foods and said could you make us a meatless sausage we can put on our pizza just for us. and they did. it's being tested in three cities, ft. myers, florida, albuquerque, new mexico, yacoma, washington. they are going to test it out, see how it goes. this whole trend has blown up, taken off. stuart: on the show, was it friday last week, we had the white castle guy, they put out an impossible burger, meatless burger. for the last year. ashley: they were great. stuart: they sold a lot of them. we tested them on the show right here. ash and i were eating them. liz, you were not here. liz: no, i wasn't.
stuart: i couldn't tell the difference. ashley: me, either. stuart: i liked the flavor, the texture, the whole bit. seemed to work for me. okay. that was friday. this is monday. market's about to open. five seconds. you're not going to like it. the market is going to be down maybe 150 points. we'll see. don't know how it closes but we are opening lower. here we go, off and running at 9:30. we are down 118 points in the early going. not all the dow stocks are open. most of them have. it's a sea of red, left-hand side of your screen. down 130 as we speak. that's about a half percentage point. the s&p 500, quickly to that, that is down, a bit more than that, that's down two-thirds of one percent. the nasdaq, i think there's a big loss there. yes, there is. 100 points down. this bodes badly for the tech stocks. that's 1.25% on the downside. we have opened monday lower. jeff sica, keith fitz, liz macdonald and ashley webster with us this morning. all right. is this a break in the market?
we have gone up since the start of 2019, stopped on may 3rd and started coming down. is this all about china trade? keith, to you first. >> yes, i think that's a big part of it. i think the fed weighing in is certainly not helping the situation. stuart: wait a minute. this is television. you can't just give me a seven-second -- i have not prepared my next question. sica? >> i'll take keith's time. stuart: please. >> i think there was the anticipation that we would get the photo shoot after the trade negotiation. now we're not seeing that. what's at risk here is the consumer, we are seeing margin compression, we are seeing potential consumer inflation and if we see that, how much of the tax cuts and all the positive economic news is going to be erased? that's the concern. stuart: i just don't see any other major negative out there. what is there?
what other major negative is out there? ashley: equities right now, i think it's a big week, we will hear from the fed, their minutes on wednesday. i think it will be really interesting at the end of the week how many people say you know what, i'm going for the long weekend and i'm going to take some money with me. wonder what happens to the market at the end of the week. stuart: now we are down only 107 points. futures said we would be down 180. we are now in business for two minutes and down 107. liz: the market looks six months ahead. so china -- forgive me, i'm going to take the opposite side of you, jeff. i don't think the china trade deal is an issue right now. stuart: so what is? liz: i think it's interest rates. i do. i think it's the federal reserve. i understand the margin compression, i understand what you are saying about that. i think the markets already baked it in. stuart: let's have a look at the big tech stocks. you have to check them every day. they were hammered last week. this morning, all of them down again. apple is down some more, six bucks. am i reading that right?
yes. 3.3%, apple is down. amazon, facebook, alphabet, microsoft, all of them on the downside. jeff, do you see anything that you would buy amongst that list of stocks? >> i would be very cautious. i would potentially buy amazon here because i think they will be the least affected when it comes to the trade war. but i think i would stay away from apple, especially, because apple has so much dependency on china. stuart: hsb just put a price target on apple at $174. ashley: ouch. stuart: hsbc, and apple is down 13%. look at that. i'm surprised at that. apple in pretty good shape but not for the long term, they say. apple, $182 as of right now, i see. google has suspended business with huawei after president trump blacklisted huawei. keith, is this end game for huawei at this point? >> i think this is like hitting
the kill switch on a droid phone. you got big problems because huawei wanted to be the global smartphone supplier. if in fact it takes away google's android based services outside china, that's a major, major chink in the armor and brings samsung to the forefront. stuart: four minutes into the session, this is monday morning, and we are now down 125 points on the dow jones industrial average. you saw there, google selling off as well. fcc chair ajit pai endorsing the merger between sprint and t-mobile. both stocks nicely higher. dish network buys echostar's broadcast satellite business. all stock deal valued at $800 million. dish down 2%. how about luckin coffee? i'm fascinated by this company. it's the china equivalent or china competitor for starbucks, went public on friday at $19 -- no, $17 a share. ashley: we can't go to the store
unless we go to china, right? no stores outside of china? stuart: no stores in america for luckin. just in china. they plan a rapid expansion. ashley: within china. stuart: down 3% this morning. across the board, we are down. luckin is down 3%. where's the price of oil? i'll tell you very shortly, when i see it. there you go. $62 per barrel. how about the price of gold? i think that's down again. 20 cents higher, $1275 is your quote. here's the stuff a lot of people are interested in. bitcoin. $7,600 per coin as of this monday morning. bayer, that's the german chemical company, it has lost 48% of its value since may of last year. this is all about these endless lawsuits about its weed killer, roundup. the judgments have been going against them and the stock has just come straight, straight down. liz: it's at an eight-year low. the stock market value for bayer right now is worth less than what it bought monsanto for.
this is a real head wind, major head wind right now. 13,400 plaintiff cases right now. stuart: let me pass judgment on this. keith, i want you into this, please. i don't like the legal system that destroys a corporation to grounds that that corporation caused cancer when there is no scientific proof that that corporation, that product, caused cancer. i don't like this. i think it's wrong. what say you? >> i agree 100%. because we've got a legal system that in fact has significant effect on share price. we had the reverse problem with regard to bonuses and are they right or wrong. this is the war on success but on the flipside. stuart: i don't see any way bayer can turn it around. >> no, they can't. keep in mind these juries are awarding punitive damages which is not something that normally happens. but the shareholders spoke before bayer acquired this monsanto. they didn't want the acquisition. so i think they have more accountability to their shareholders and i think they are going to have a very, very
difficult if not impossible time turning it around. stuart: the market has turned around some more. we were down 100. now we are down 164. there's some volatility as we begin trading this monday morning. down 166 as we speak. keith, come back in again, please. you brought us two plays. number one, you like nvidia and number two, you like alibaba. deal with nvidia first. it's down today. why do you like it? >> well, it's the same story we have been talking about for a long time. it is core. the chips are literally at the core of ai, at the core of autonomous everything, at the core of gaming. all of which are long-term trends that i'm perfectly happy to wade into, even on a down day, especially on a down day for that matter. stuart: i own a little alibaba. why do you like it? because the thing is down eight bucks now. >> well, again, this is a much bigger game. china has had the world's largest gdp for 18 out of the last 20 centuries so this is a play here on the chinese consumer. they are going their ai business, growing their big date
chld dat datea. numbers like that are hard to argue with, never mind the politics. ashley: tesla now at $197, down 6.5%. this is a bad day. stuart: keith, what did you say about tesla? >> i said it's going to 100. back when they were 350 or so, we talked about 200. we are there now. i think we go to 100, maybe even lower than that. musk is running out of mojo. stuart: tesla is on that board, i think. no, it's not. ashley: it's not. liz: we started warning about tesla two or three years ago. stuart: i'm sorry, liz, it is on the board. it's down $12 now. 6% loss. sorry. liz: we started warning about them two or three years ago because their off-balance sheet debt loaded on to the balance sheet swamped shareholder equity. that's a red flag a company is going insolvent, turning upside down. stuart: i wouldn't buy stock in a single automaker anywhere at
this point. jeff? >> no, we were talking about tesla. i called tesla a dumpster fire when it was in the 380 range. the fact that it's here does not surprise me in the least. i agree with keith, i even think it's going lower. i think it's going to go into the low double digits eventually. i think tesla's future looks very, very dark and we talked about it on the show. i have been talking about it all along. stuart: keith, i just said i wouldn't buy any auto stock anywhere in the world. agree with me? >> you know, i do, stuart. that's a sad state of affairs because this is so critical to manufacturing, critical to mobility. we have trucks and cars but i still wouldn't touch it either. stuart: okay. have a look at amazon. shareholders are going to decide this week, i think, if the stock, show me that, i can't see it, if the company sells facial recognition technology to the government. should they sell it to the government or should they not?
what's this all about? >> it's important but facial recognition is important for law enforcement. i think there's a lot of good applications, but it is very much a flawed technology right now. it's too soon for them to sell it. i think the bigger concern is privacy. facial recognition, we will give up privacy almost completely when facial recognition is widely absorbed into -- liz: it makes mistakes, right? you can't use it for probable cause to arrest somebody. a computer arresting somebody based on possible flawed technology is dangerous. stuart: it's coming. you can't get away from it. last word to you? >> it's absolutely inevitable. i agree with liz and jeff. we have to get the legal ramifications sorted out but it is imminent, not just iven ta inevitable. stuart: got it. gentlemen, thanks for joining us. check the big board, not quite the low of the day but almost. down 175 points. two-thirds of 1%.
back to 25,500. the 2020 democrat candidates want new taxes and more spending. they are ignoring reality when it comes to the economy. my take on that in the 11:00 hour. california moving up its primary to super tuesday. looks like california will dominate the democrat party in 2020. a big boost for kamala harris with that move on the primary in california. president trump going after a republican congressman who claimed the president did commit impeachable offenses. do other gop lawmakers feel the same way? jason chaffetz, next on that one. so, jardiance asks...
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stuart: we are down 140 points after 13 minutes worth of business. the dow off half a percentage point. look at mcdonald's. just a moment ago it hit a new all-time high. it's retreated just a fraction. that's on a day when across the board, the market is lower. stocks are down. 268 was the high? i'm sorry. $200.68 was the high and that was the high, and it hit it today even in an overall down market. we thought we would bring you that. that is mcdonald's. outstanding today. michigan congressman justin amash, the first republican to say that president trump committed impeachable offenses. here's how the president responded. never a fan of justin amash. total lightweight who opposes me and some of our great republican ideas and policies just for the sake of getting his name out there through controversy. okay. let's bring in fox news contributor jason chaffetz for
this one. is this the start of a revolt from some republican law makers? is this the start? do you think? >> no. no, no, not at all. justin amash is more of a disciple of ron paul than anyone else. that's the role he relishes. he's really more of a libertarian than he is a republican. he's entitled to his opinion. he has to answer to his voters. but he's an outlier on this. i would remind you kirsten sinema also looked at the same report, read the same report and said there was nothing there to it. and we should move on. stuart: is this the libertarian approach? i'm not aware of that. i don't know why on earth they would do this. >> no, no. i think he's an outlier. kevin mccarthy, the minority leader, has said look, he does this a lot for attention. he does sometimes. i respect his opinion but he is dead flat out wrong on this. if you are a betting person, if you are looking to the future, as you do on this show, you really need to be looking at the
michael horowitz report and barr and durham and those investigations. those are of consequence. mueller is in the rear view mirror. nothing is going to happen from it. stuart: tell me about pennsylvania because the president goes there today. it's a maga rally. in that state that we do have a poll that shows joe biden, 11 points out front of the president. that is a key state. what do you make of this race at the moment with biden leading in pennsylvania? >> i think the democrats have a problem. if you are going to get behind biden, somebody who was elected in 1972, somebody who wasn't going to take out osama bin laden, somebody who has been absolutely wrong on every major foreign policy issue, he will get a little bit of a bump because he's the new flavor of the moment, but he represents the past. he doesn't represent the future. i think ultimately, pennsylvania, if donald trump can get a deal done with china, i think pennsylvania will
clearly go for donald trump all across the board. trade is so important to pennsylvania. stuart: the go pac chairman on the show this morning said that california moving up the primary so it coincides with super tuesday gives an enormous boost to senator kamala harris in her quest for the oval office. you agree with that? >> i do. she's the senator from california. it also depletes the ability of the rank and file candidates running to actually focus on a state. california is enormous, it's like a country unto itself. when you have all these other states, how do you spend your time, how do you spend your money, nobody has the resources to compete in all those areas. so it's a shame that super tuesday is turning into essentially a national primary. they really should do it by regions but that's what democrats are all anxious to go first. stuart: i know it's early. perhaps i shouldn't spring this on you. but who do you think will be the democrat nominee?
>> i think mayor pete has as good a shot as anybody. i think he's the biggest contrast. i think he's new and look at what the democrats have done in the past. they have picked carter, they picked, you know, clinton, they picked obama. people who really hadn't done anything and they molded them into the candidate they think should actually be and i think mayor pete actually has that ability to do that, even though i think his ideas, what little we know of them, are the wrong prescription for america. stuart: i think you're right there. jason chaffetz, thanks for joining us. see you again soon. 18 minutes into the trading session, and -- sorry, 28 minutes into the trading session, have i got that right? ashley: no. 18. stuart: it's 18. 18 minutes. i didn't think there was supposed to be any math in this portion. there you go. now we're down 111 points on the dow. that is the best part of .4%. not a huge loss. we have a small business success story for you. pennsylvania woman creates
custom bags and accessories from military uniforms, all while giving back to the men and women who served our country. she's on the show after this. i'm working to make each day a little sweeter. ♪ to give every idea the perfect soundtrack. ♪ to fill your world with fun. ♪ to share my culture with my community. ♪ to make each journey more elegant. ♪ i'm working for all the adventure two wheels can bring. ♪ at adp we're designing a better way to work, so you can achieve what you're working for. you wouldn't accept from any one else. why accept it from your allergy pills? flonase relieves your worst symptoms
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ashley: very good. you got it. liz: you did it. there you go. stuart: almost exactly half a percent. i have a feel-good story for you. female entrepreneur started out designing and making purses. got it. then she moved into full line of military-inspired clothing and accessories. here is eve baum joining us to tell her story. welcome to the program. >> thank you. stuart: i'm going to reach across you right from the start and grab this. this is a pillow. it's made from someone's military uniform. it's your husband, right? >> that's correct. that's correct. stuart: it's like his shirt or the pockets are here but it's a pillow. >> yes. stuart: it says on it nora, i have worn this shirt close to my heart so when you hug this pillow, feel my love. >> yes. stuart: that's from your husband to you? and you made this? >> we crafted it from my husband's uniform when he was in iraq. stuart: they send you the material, the uniform, and you make an item out of it? >> that's correct. that's correct. stuart: a tote bag right there? >> a travel bag.
my very favorite are the teddy bears. we do, sadly, a lot of fallen heroes which i thought we could talk about with memorial day coming up. people will send us their loved one's uniform from all era, could be world war ii, could be current, then we cut them up and use their patches sometimes to make special items for them to keep a piece of their loved one. stuart: how long you been doing this for? >> 14 years. stuart: 14 years? >> yes. stuart: that's a long time. how many customers have you had? >> thousands. i never counted them. probably tens of thousands. stuart: you're not in this to make money, i take it? >> i mean, money is always nice, right? but this is my mission. this is my passion. it's very close to my heart. i feel like military people, they give so much to our country, it is the least of the things i can do for them is to give them a little piece of their loved one. stuart: i think it's a great idea. i really do. this is a financial program, so i'm asking a financial question.
how much? >> $30. they all vary because you can actually customize everything. you can customize all the embroidery and the fabric. nothing is over $100. everything is hand-crafted in united states proudly. so i feel it's very affordable. stuart: you have an accent. >> i do. i do. stuart: where you from? >> i'm from montreal. i'm french. i'm here 14 years ago. little bit before -- right after i moved here i started the business. stuart: you are all american? >> i'm all american. stuart: just like me. sometimes we are more american than americans home-grown. >> because i picked the country. i chose to stay here. stuart: where can you buy all of this? >> on our website, militaryapparelcompany.com. we are also -- stuart: militaryappar militaryapparelcompany.com. >> we are on etsy, a bunch of websites. we are easy to find. stuart: it's a great idea. thank you very much. thank you for being on the show today. >> thank you for having us.
great pleasure. stuart: see you later. meat prices, there's a segue, meat prices expected to rise. tell me more. liz: i can't believe the numbers. they are expected to slaughter 200 million chinese hogs because of swine flu. there is an epidemic, called africa chn swine fever really ripping through the hog population in china. they are talking 200 million, about double what the u.s., happened in the u.s. last year with its swine epidemic. walmart, other companies here, mcdonald's, are talking about potential price increases. china is going to have to start importing itself a third more pork products because of demand in that country. stuart: they will get the pork products from us. at the moment they're not. by the way, the dow is now less than 100 points down, okay? just want to bring that one to you.
stuart: a candidate pushing tax hikes sure to win. media and elite backed i am. the polls said he would come out on top. even exit polls said he would win but he didn't. bill shorten, labour party leader lost australia's general election. the pundits are in a state shock. we don't spend time on australian politics, do we? democrats should be taking a long, hard look at this one. in australia voters were not prepared to sacrifice in the name of climate change. they didn't want to risk their prosperity by taxing the rich. that's what bill shorten ran on. that is what australia's and the
elites supported and they lost. take note democrats here. their presidential candidates are running on the same green new deal and tax the rich ideas that just lost the election for their counterparts in australia. what happened down under this past weekend is similar to what happened in america in 2016. hillary couldn't lose. the elites and their media allies were convinced they knew better than ordinary people. as we know now hillary lost, trump won a shocking victory. same in australia now. a loss for the left, a shocking win for the tax-cutters. yes, that australian election is worth spending time on. it may well be a taste what's to come here, again in 2020. the second hour of "varney & company" is about to begin ♪ stuart: i just have to tell you
this as well, a betting company in australia preemptively paid out the money they thought the election was going one way. it didn't. it went the other way. how much money? liz: they paid out 1 1/2 million dollars prior. they saw the money bet pouring in for the labour candidate. what a shock when scott morrison won. they wrongfully paid out 1 1/2 million. this happened during the clinton-trump race. the bookies in australia paid out a million dollars. stuart: because they were so sure. liz: because they thought clinton was going to win. stuart: like in america in 2016. even exit polls here in 2016 said hill which would win. exit polls. ashley: same in "brexit." stuart: exit polls, the labour party -- liz: scott morrison. right. bill shorten. stuart: there is a lot of people who are afraid to say i'm voting for trump and i'm voting for
short or i'm voting for brexit. liz: makes people totally question polls validity of polls going into elections. stuart: absolutely does. i want to bring in matt who is from a political think tank. he knows a thing or two about the election. do you agree with my premise, the left thought they were winner in climate change and tax the rich it, didn't turn out that way, there are lessons for democrats in america, what do you think? >> look, overconfidence and elitism can have a ripple back. obviously there differences between australian politics and u.s. politics. in this case the scott morrison the surprise conservative victor talked about the quiet majority of australians who agreed with the way the country was going. reminded me a little bit of brexit. brexit many ways predicted trump's election. the elections were different, a
referendum versus general election in the united states. the issues were similar, in terms of immigration and economy. same issues motivating 2020 election in united states are similarities in australia. stuart: do you think there might be a similar prize result, elites and media going to the left, ordinary people go with trump what do you think? >> yeah. i think one thing to point out as it relates to trump on the single most important issue on the economy, he has a clear majority of the vote that approves of the job he is doing. that is a real problem for the democrats going forward. they don't have very many arguments to make against the economy. record low unemployment. wages rising for the first time in a generation private sector hiring is up. there are good data points on the economy. they have a hard time against the economy because they want to weaken it but raising taxes and putting regulations in place. stuart: tell me about climate
change. the left in australia really embraced climate change and lost. do you think the same thing happens here? >> challenge is that issue is not going to work in the rust belt, right, in pennsylvania, wisconsin, in michigan. you know that kind of argument is simply not going to work there. the far left is very much energized about the issue of climate change. people in the middle are not. they do knot want to seat american economy harmed to push a climate change plan that would do very little to make a difference globally. stuart: matt, stay. there i want to bring in couple questions. i want to bring in dennis gartman, editor, publisher of "the gartman letter." dennis, do you see parallels what happened in australia over the weekend and what happened in america in 2016 and what may happen in 2020? how do you see it? >> stuart, i see parallels between what happened in the united states and then what happened in australia. i think there is a consistency around the world. it is surprising people with the movements to the right.
you've got that happening in europe with the upcoming european parliamentary elections. it looks like the brexiteers and far right are probably going to win, and win in a landslide. i think what happened in australia is reflective what happened here. i think this is the right thing. we're having, we're seeing government and governors and presidents and prime ministers, who believe in smaller government and lesser taxes. that can't be a bad thing. that has to be a good thing. i think what happened here in 2016 was giving rise to what happened in australia, rather than taking what happened in australia and reflected back on the united states. i think we led the change. stuart: i would have to imagine that you think this is good for the markets all around the world? i certainly do? >> i'm not sure it is good for the markets. the marketed has a wonderful run to the upside. we have not made a new high in global markets since january of 2018. i said this before, i say this
again, i trade for my own account only and i'm heavily short. sometime politics doesn't have great impact on stock prices. i think stock prices have gotten a little bit ahead of themselves, anticipated a shift to the right, rather than gleaning saying we'll have greater movement. i think the stark markets already anticipated what happened. stuart: dennis, real quick, if we got a handshake smiling meeting with china at the end of june, what happens? >> the stock market we'll have a two or three, four, five day rally no ifs, ands, buts about it. the buyers will be more aggressive than sellers. june 20th is a long way away in this present circumstance. stuart: certainly is. dennis as always. thanks for being with us. >> thanks for having me on. stuart: sure thing. check the big board. we come a long way back. we were well down over 100
points. i think 170 was the low. now we're down 66 points. that is one quarter of 1%. the tech stocks, all of them were down earlier. all of them are down now. look at that! apple really taking it on the chin, down 3% there. hsbc have cut their price target for apple all the way down to the 170s. that is because of risks from the trade war with china. apple is down. here is another big-time loser. that would be tesla. that stock is well below $200 a share, first time since december of 2016 real fast, liz. liz: lost 29% of market value since august of last year. stuart: crash crunch on tesla. big news for cell carriers, sprint and t-mobile. fcc chair has endorsed their merger. their get-together and both stocks are nicely higher. >> let's get back to matt. president trump will rally in
pennsylvania tonight. the latest fox poll shows joe biden leads trump in that state by 11 points. you're a political analyst. what are you going to say to that? >> i don't believe that head-to-head number at this point. you don't have most general election voters paying attention at this time. when the, you know, the clear contrast between trump and democratic nominee come into focus the numbers will mean quite a bit more. let's be candid about one thing. joe biden can win pennsylvania if he is the nominee. we're a long way of knowing who the democratic nominee will be. biden's numbers improved since he got in. he seems to take vote from bernie sanders. his poll numbers have improved. he is rising into the low 40s. he has pretty considerable lead on democratic field right now. you haven't had the first democratic televised debate which i think is in late june. we still have a long way to go. joe biden would be credible election candidate. i point out he only had 2,000
people at his campaign kickoff in saturday philadelphia. contrast that with kamala harris, from california, she had 22,000 in oakland. stuart: do you think kamala harris will get a big boost because the california primary is moved up to super tuesday? could that mean the california democrats really push kamala harris very strongly and dominate the democrat party? >> it's a great point, stuart. it is one people are not focusing on enough. you will have votes cast if california before you have votes cast in iowa. that is how early california is this time. keep had mind the democratic primary has proportional allocation of delegates. no one will wrap the thing up in the first month or so this thing will go on for some time. no doubt california will give her backstop and strength, provide significant resources to her campaign, clearly the field of 23 candidates will winnow quickly to some extent before the end of the year but before
iowa and new hampshire. you have to get 15% threshold of delegates in iowa and new hampshire. if you don't get that you have to drop out pretty quickly. joe biden is putting all his cards on the table there as well. so look in every state there are multiple candidate that are banking on performing well. there obviously will not be enough chairs when the music stops. the question is, is biden going to be a finalist, who will oppose biden? it could be bernie sanders. it could be kamala harris. it is possible it could be elizabeth warren. stuart: matt, see you real soon. >> thanks. stuart: president trump, he warns iran never threaten the u.s. again. coming up we're talking to a senator who says the u.s. could win a war with iran in two strikes. he will make his case if it comes to that. china upgrades its social credit system to punish citizens with bad debt. you owe money? you get an embarrassing ring
stuart: president trump checking out the candidates on the democrat side. here is the tweet. looks like bernie sanders is history. sleeping joe biden is pulling ahead. think about it, i'm only here because of sleepy joe and the man who took him off the 1% trash heap, president o. china wants sleepy joe badly. i'm not sure that i follow that all the way through. that is what the president just tweeted. you heard that here. we've come back a lot, now we're
down 80 points. look at bayer. that stock is down 48% since last may. a constant series of jury awards against their product, the weed killer roundup that is a bayer product. it is down to $15 a share as we speak. congresswoman alexandria ocasio-cortez invocking the bible to make a point about credit card interest rates. what did she say? >> hi interest is explicitly denounced in the bible. both alexandria ocasio-cortez and bernie sanders, republicans conservatives only use the bible to support their agenda. basically to punish women and queer people, meaning gay people. there is that argument that aoc, as she has been nicknamed, bernie sanders make. but economists and wall streeters are saying the interest rate is measure of risk. someone has bad credit they get charged more. the bank charges more. that person may go bankrupt. so the bank have to cap credit
losses. if you raise rates everybody rates go up, i don't think i like the government imposing its will where they think interest rates should be. the government is no position to impose risk. i don't see that, frankly. right, look at this tweet from the president over the weekend f iran wants to fight, that will be the official end of iran. never threaten the united states again. joining us now, arkansas senator tom cotton. mr. senator, welcome to the program. good to have you with us. do you think that america is heading towards war with iran? >> stuart we hope not. the president's tweet over the weekend sums up the exact posture we're taking. we've seen increased threats from iran over the last three weeks. deploying aircraft carrier and patriot missile system and b-52 bombers, is all about deterring military action against iran,
not taking military action against iran. stuart: if we take steps against iran do you think it would be over quickly. >> we're retaliating to iran what they have done to us, our personal or proxies in the region. we have power to totally destroy of iran and it will be done in a manner or hour of our choose and. stuart: do you think the administration or john bolton don't want to do this? >> president says hopes to avoid war. all americans hope that if iran would take provocative action no doubt the we would retaliate in a serious reaction. stuart: you talk about your new book, sacred duty s this about the old guard, the oldest regiment in the american army, that what it is about? >> yes, sir, the old guard served in my overseas tours, oldest regiment in our army. they go back to 1784 three years before our constitution.
for the first 160 years they fought in all our major conflicts the mexican-american war and civil war and bull run at gettysburg. they performed military funerals at arlington national cemeteries and the tomb of the unknown soldier. my book, sacred duty, tells their story. by looking at young soldiers who honor them and pay tribute to their families t tell as story who we are as a nation, what we hold most dear. stuart: do you have a connection to the old guard? >> i served there for 16 months, stuart, between my time iraq and afghanistan. i probably performed four to 500 military honor funerals. unfortunately another task of the old guard is perform the dignified transfer of remains at dover air force base where fallen heroes from iraq or afghanistan in those days were being repatriated. i tell the stories and more of arlington national cemetery and how the young soldiers at the
old guard strife for perfection as everything they do to pave the way for our fallen heroes and their family. stuart: sacred duty, i shall read the book, thank you, mr. senator, for being on the show. "sacred duty quod. senator tom cotton. >> sure thing. stuart: democrats candidate mayor pete laying out plan for new taxes and senator kamala harris has a plan to fine companies which don't pay men and women equally, to certify these companies, they're actually doing that. how bureaucratic can you get? we have a reasonable democrat, doug schoen, coming up to comment on all of this. we'll be back. ♪ i'm working to make each day a little sweeter.
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stuart: we have a comeback, down 50 points for the dow, 25,700 is where we are. facebook having a hard time recruiting new people. come on in susan li at the new york stock exchange, tell us what is facebook's problem? reporter: after two years of scandal including cambridge analytica, facebook is having a hard time recruiting best and brightest. software engineers used to accept facebook offers at 90% rate. that rate dropped to 50% after march of 2018 after facebook analyst can broke. mark zuckerberg was on the hello testifying. best and brightest across the university in 2017-2018 academic
year, that rate dropped to 25 to 30% of acceptance after generous facebook offer. that rate used to be 85%. it includes recruiting costs. facebook is spending a lot to police their own websites after cambridge analytica. not just being felt on bottom line but comes to talent recruiting as well. stu? stuart: who would have thought we get to that. i would have thought offer from facebook was golden ticket. that's right. susan, thank you very much indeed. got you. china has a new social credit system which will rate all 1.4 billion people in china based on their behavior. ashley: like a credit score but it is actually a social credit score you are given and if you are deemed untrustworthy, default on the loan, criticize the government online, spend too much time playing video, whatever it is, your score comes down. you can reach a certain level, the government will change your ring tone, you call that person, there will be a police siren,
voice will be heard to say be careful in your dealings with this person. it will exclude you from well--paid jobs. make it impossible to get a house or car loan, even book a hotel room. they will slow down your internet connection, ban children from attending private schools. this is very severe. in worst cases there are reports although it hasn't been verified they will preemptively arrest you and send you to reeducation camps if your score goes miserably low. the theory, you haven't committed a crime but you are likely to. stuart: i want to see more. ashley: fascinating story. stuart: mayor bill de blasio, mayor of new york, kicked off his campaign in iowa last week. i want to know how iowans feel about the mayor of new york lecturing them. we'll be back. ♪
♪ stuart: it's a good one. i like it. i like it. let's play it again after 30 days gone by so we don't have a pay. got more on the brits. queen elizabeth is hering a social media manager. this is a financial program, ash. ashley: it is. stuart: how much does the job pay. ashley: 30,000 pounds, $33,000 a year. not a massive amount. stuart: isn't more than that?
30,000-pound is about $40,000. ashley: yeah, correct. but you get 15% employee contribution pension scheme after six months. that's nice. 33 days annual leave, god bless england for that. free lunch, among other benefits. basically you're there to maintain the queen's presence in the public eye or on the world stage through social media. she doesn't have her own instagram account but the whole family does. stuart: 40,000 bucks plus benefits. ashley: yes. stuart: threw a milk shake at nye fell farage. ashley: he was up in new castle, northern eastern part of uk. european parliament elections are on thursday. nigel farage is the leader of the brexit party. he is being milk shaked. he was not very happy about it. said afterwards, tweeting, sadly some remainers become radical liesed to the extent, normal campaign something becoming impossible. the polls show his brexit party
is doing very, very well. conservatives said were at one point down to fifth place. european elections are on thursday for the parliament. his party is doing well. but those milk shakes. stuart: arrest the man. ashley: they have arrested him. stuart: charged him with assault. ashley: 32-year-old was arrested. stuart: put him away. don't do that. that is an assault. ashley: horrible. stuart: who knows what might have been in the glass, milk shake. nobody knows what is in it. like pie in the face thing. don't do that. out of the question. down 50 points on the dow industrials. 25,700 is where we are. now this, democrats, 20230 presidential campaign, candidate mayor pete buttigieg, he has proposed four new taxes. doing shown with us, former clinton pollster, fox news contributor. i'm trying to figure it out, higher taxes on income, tax on wealth, corporate, end of the corporate tax loopholes as he calls them. and stock transactions, tax that
as well. >> right. stuart: don't you people ever learn about tax-and-spend? >> well, look, i don't share the mayor's positions but given that we just had a segment on milk shaking, people on the right, the fact that a democrat came on fox who has, had many ideas i think have galvanized america, the fact that he got a good response, a standing ovation, did well with chris wallace, to me overcomes the fact he is wrong on taxes. stuart: so, you are a democrat who does not favor raising tax? >> no, i don't. stuart: you would not roll back the trump tax cuts? >> i would look for a set of tax cuts that are more oriented towards working people, rather than corporations. stuart: well, this is a revelation. >> no, i've said it all along. stuart: there isn't a single democrat candidate who is in favor of leaving the tax structure as is, cutting taxes some more. there isn't a single one. >> i didn't say i was for
leaving it as is. i said i would reorient the trump tax cuts to make them user-friendly for individual working class taxpayers in michigan, pennsylvania, wisconsin, ohio. you get my point? stuart: that is all politics. >> yeah. political. stuart: i'm interested in prosperity for everybody. >> so am i. tax cut for individuals as tory party demonstrated over the years is a very, very good thing. stuart: i'm glad you're with us on this one. >> i am a terry west. stuart: we'll not explain that on this program. >> no, senator kamala harris, she laid out a proposal for equal pay for women. roll tape, please. >> and i'll tell you what else i plan to do as president on issue of the economy. i am proposing that we change the tax code of the united states. [cheering] in particular i am proposing that for families that make less than then thousand dollars a year, i mean, $100,000 a year,
[laughter]. that is whole other plan what we got to do there. stuart: i'm sorry. wrong sound bite there, what she is proposing a is certification process for big companies. you can't do business, you will be fined if you don't tell us the government, that you're paying men and women absolutely equally. that sounds like a nasty, bureaucrat mission. >> my fear we're so overreaching as a government into private matters that this matter, which is largely in my mine going in the right direction will lead to a government level of control and involvement that frankly is not healthy and is not constructive. stuart: it is just not the right way to do it. >> not the american way. stuart: you don't get growth like this. >> no. stuart: you don't get it. you don't get fairness either. you have a pass self lawyers and
government bureaucrats deciding on worker pay. >> i'm trying to take advantage of what trump has done, fix health care, do a deal on immigration. biden is the democrat in my judgment the press impression. i know you have your problems with him. that is 10 points ahead. that is not a bad thing for my party. stuart: we talk to you once a week, i see you moving towards trump. i can see this. >> if it is not joe biden, it will be very hard for me to support democrats who make redistribution their primary means of running the economy. stuart: i knew we would get to you after a few years, doug. i knew we would get to you. >> don't count biden on yet. stuart: i'm not counting him out. i expect you to move to florida. >> that is easy. that is where i'm heading now. stuart: i know you are. staying on the 2020 race, new york mayor bill de blasio kicked off his presidential campaign in iowa last week. i want to bring in timothy hagel, university of iowa
political science associate professor. you know the local scene. professor, how did iowans respond to the mayor of new york, bill de blasio, campaigning in that state? >> well, we certainly welcome all the democrats to come to the state. there is no surprise there. depending on the person's name recognition and what the person has done, how well he is known by the democratic activists he will get more or lesser response of the apparently mayor de blasio had kind of a lukewarm response but he was also campaigning at least initially in the northwest part of the state which is heavily republican. there are democrats there of course. in terms of getting kind of a big turnout he could have gone to some other places. stuart: what's the general reaction every four years when candidates descend on iowa in droves? what's the general reaction? >> we don't usually have quite this many candidates coming in for the caucuses although we had
a pretty good number for 2016 on republican side. but we take it very seriously here in iowa. i know a lot of people criticize iowa for one thing or another in term of caucuses. iowans relish their position as first-in-the-nation caucus. we take it very seriously. depending what party is having an open caucus, they will turn out, listen to them, see who has a good message, what they deliver well. what they like to hear. what issues of the day are, ultimately make their decision. stuart: in your opinion, knowing the territory, who will get the best reception of all the 23 democrat candidates who announced so far? >> well, even though number of candidates have been campaigning for several months at this point, a lot of it is still to a certain extent is based on name recognition. so not surprisingly people like joe biden who is very well-known and of course obama won the state twice. he is basically running to represent and continue the obama administration. so that is going to be fairly
popular among democrats. on the other hand there are a number of democrats who want something new, a younger person, or sometimes a different message. a poll released recently today by iowa starting line said that biden and sanders are tied in iowa. that is a bit of a surprise but other people are kind of coming up. harris, warren, buttigieg. so we basically, iowans are still waiting to make their decision. they want to hear from the candidates, most of them anyway. they will make their decision. stuart: that is the news of the day, biden, sanders tied in iowa. professor, thank you for joining us. we'll see you again soon. thank you. >> my pleasure. stuart: a very pleasant surprise for some recent college grads, very pleasant. a billionaire commencement speaker told morehouse college students he will pay off all of their student debt. wait until you see the students reaction. we have for you coming up next. that is part of it right there.
>> "game of thrones" series finale last night. some fans happy. they will tell you about the petition to have the creators remake the entire final season. what? we'll have more after this. ♪ this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets. and gold markets. ok. i'm plugged into equities. trade confirmed. and i have global access 24/7. meaning, i can do what i need to do. then i can focus on what i want to do. visit your online broker today, to learn more.
stuart: we come all the way back to break even point for the dow. we're off just 25 points. that puts us at 25,739. look at blue apron. they make the meal kits of course. they took a big hit. the company announced a plan for a reverse stock split. remember please the new york stocks exchanges plan to delist them because the stock price went below a dollar. the reverse split could put the
price back above a dollar. they're down 11% on that news. the keynote speaker at morehouse college, billionaire robert smith, pledged to wipe out the student debt of the entire 2019 graduating class. he paid their loan. pay it off. watch what happened when he made the announcement. >> this is my class, 2019. [cheering] and my family is making a grant to eliminate their student loans. [cheering] [applause] stuart: you know, i think it took a moment for the crowd to figure it out? ashley: yes. stuart: he was paying off their loans, their student loans, that is worth about $40 million, paid
for by that gentleman. joining us, campus reform contributor. emma, it is rare that we talk to you about something positive on our college campuses but that was really positive stuff! >> it is such a fantastic, inspiring story to see robert f. smith give so generously to the students. what this shows the positive effect of having private wealth in this country. it is really fashionable on the left right now to demonize businessmen and demonize the ultrawealthy as they call them. the fact americans give 410 billion plus dollars to charity every year. that is made possible by capitalism and by people's ability to get wealthy, to give their money away freely. that is what made this possible that will give the students to ability to chase their crimes after college without having any debt. stuart: if i was planning a commencement address for various colleges next year, would i hire zuckerberg, jeff bezos, any other billionaire that i could find, bring them on campus, you want to do the same?
that is in the thoughts of many people at this moment. i also want to talk to you about the college board planning to give an adversity score to every student that takes the s.a.t. so what do you think of that? is it a good plan? >> no because the s.a.t.'s point is to measure specifically college readiness in a academic sense. there are plenty of other opportunities to address if they have overcome adversity, great for them. they can write an essay about it. there are three different options on the common application to write essays like that for this year. also it is invasive to students who may not want to include that data. maybe they're trying to put their past behind them. if they grew up in a bad area, they may be going to college to get out of that life. i don't think it is fair to force them to turn over that information which they actually are not able to see. it is unfair and invasive. stuart: could it be it puts some people in college who are not academically equipped for college? >> absolutely t waters down the value after college degree which
is an issue we have been talking about and discussing with so many people being told college is the only way to go, it is devaluing that college degree. lowering the standards, including things with the academic standards that have nothing to do where you're at with school. it will continue to propagate that effect. we've been reporting on this leadership institute at campus reform. the people we bring on, if we ask them crime rate for neighborhood they grew up in we could get sued. this is not the workforce is and the real world. why are we doing it in college? stuart: i think there big changes coming to american colleges in the very near future. emma, ales a pleasure. >> sure thing. stuart: some of uber's ipo parties were so wild that one uber-employee resigned. susan li joins us again from the new york stock exchange. make me through this. what happened at these parties? reporter: remember 10 days ago
at the new york stock exchange we had uber ring in largest ipo in a half a decade. a new ceo talked about a new corporate culture. across offices at uber offices, free flowing mimosas and champagne on ipo day. some parties got out out of conl including one office in california where one employee had to resign because of irresponsible behavior. uber is trying to come back from what people talked about the toxic corporate culture and misogyny by female executives against employees and female harrassment and they brought in eric holder the former attorney general to change all that. one of his recommendations was to limit alcohol in the offices. they made an exception for ipo day. some are saying this harks back to the tech bro culture uber was famous for under travis kalanick. stuart: got it, susan, thank you very much.
president trump says if iran wants a fight america will end them, his words. an iranian general taunted president trump with an offensive comment about 9/11. we'll tell you what the general had to say. >> "new york times" admitting venezuelan socialist policies killed their economy. howard kurtz coming up on that next. ♪ ♪ (vo) i know what you're thinking. electric, it's not for you.
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stuart: check the big board. we're down 70 points now. that is about one quarter of 1%. the dow is below 25,700. just below that level. i want to get back to the australia election. we don't cover it very much in this country but this time around i think we should. the candidate who is pushing tax hikes and climate change and who received the backing of the elite and the media, that candidate lost. joining us now, howard kurtz, "mediabuzz" host. the media got it wrong in australia. i think just like they did in
2016 in america. there is a lesson here, right? >> yeah there is a striking parallel here, everybody in the media there, just about, thought prime minister scott morrison the conservative was not going to be reelected. there is even more appalling parallel, reminds me in months after donald trump took office, a number of liberal commentators blamed his voters, 63 million americans, calling them yahoos and rednecks and racists. according to this roundup in ace straw yay, one cartoonist, seems unfair the morons out number the thinking people at election time as broadcaster. australians are dumb, mean-spirited accept it. columnist for the guardian, the country is rotten. fault of the voters when they disagree with media elite. stuart: what a classic mistake. reminds me of the deplorables. or trump supporters as deplorable people.
that is crazy stuff. i want to move on, howard, there is other good stuff here. look at the headline, venezuela's collapse, worst outside of war in decades economists say that sounds like "the times" is beginning to admit that it was socialist policies in venezuela that cause the its collapse. are they beginning to see things differently, maybe, do you think? >> well the wreckage in venezuela is so great i mean no media organization can pretend it is not a complete and total collapse and in the story, "the times" does seem not to shy away from the political conclusion. economists say that poor governance, corruption and misguided policies of nicolas maduro and hugo chavez's predecessor, have fueled runaway inflation, shuttered businesses, brought the country to its knees. trump administration sanctions. faced with calamity, pretend it is not there or not the fault of the country's leaders "the times" is telling it like
it is. stuart: do you think "the times" is beginning to see the light? >> i don't think you're going to see a 180-degree flip on "the new york times" editorial page, stuart, suddenly they will see the merit of president trump's policies and have problems with the left-wing of the democratic party but when it comes to venezuela, maybe it is far enough away "the times" can say this without alienating its readers? stuart: i think you're absolutely right, howard, absolutely right on this. howard kurtz, everyone. got it right again. >> appreciate it. stuart: sure thing. joe biden on the campaign trail this weekend. he says president trump inherited a booming economy. he is not the only democrat candidate to make outrageous statements about the economy. my take on those statements coming up next. ♪ you wouldn't accept an incomplete job
stuart: some democrat candidates are making outrageous statements about our economy. they should really be called on it. joe biden, for example, says trump quote, inherited a booming economy. no, he didn't. the obama/biden era produced 2% growth and in the last six months of the administration, it was down to 1% growth. trump comes in and within a year, it's 3%. the boom is trump's, not biden's, but there's nobody challenging biden's claim. the media just smugly repeats it. mr. biden should not be allowed to take credit for someone else's achievement. senator kamala harris is running for the oval office and also making dubious statements about the economy. she says it's not working for ordinary people. they are working two or three
jobs to put food on the table. that's what she says. i don't doubt that that is true in some cases, but to generalize and suggest everyone is struggling is dangerous spin. it's playing the victim card. an endless game of basically class warfare. all the candidates imply that their tax and spend policies would change things for the better. i'm here to say they would not. in fact, these policies would destroy the prosperity that tax cuts and deregulation have created. so the campaign rolls on. the economy booms and the democrats complain it's not fair. 2020 looks to be a replay of 2016. the third hour of "varney & company" about to begin. stuart: off the lows of the day on the big board, down about 60 points as we speak. we had been down i think it was
about 160. ashley: 203 was the low point. stuart: 203 was the low point? we have really come back, then. now we're down 68. that's about a quarter of one percent. want to get back to my editorial right there. mr. trump tweeted this this morning. actually it's about me. names me. here we go. we have a booming economy and working people are making gains that they haven't seen in decades. stuart varney, fox & friends. that's what i said on fox & friends this morning. anthony chan is with us, hot shot on wall street, this guy, former chief economist at chase. you are a hot shot. >> glad to be here with you. stuart: do you agree with me and what the president said there, the economy is booming and working families are getting the benefit? >> the economy is booming. we are going to see, we saw almost 3% growth last year, depending on how you measure it, and that of course was due to the tax cuts which i estimate added about 1% economic growth. this year we don't get as much of that but we get some of it aft
but i think if we now move in another direction and maybe talk about a stimulus infrastructure bill, we can get another juice-up of the economy and we can continue this growth. the economy is doing just fine. stuart: is it working for working people? the democrats imply that it's not working for them. is it? >> the reality is it's working for everybody. are some benefiting more than others, of course. right now with a 3.6% unemployment rate, it's hard to say it's not working for main street america. stuart: joe biden had a few things to say about the economy. roll tape, please. >> -- not the alternative facts. president trump inherited an economy from obama/biden administration just like he inherited everything else in his life.
[ inaudible ]. stuart: look, it's a little difficult to hear because of the reverb and echo thing but he was saying president trump inherited a booming economy from the obama/biden period. what do you say? >> again, stuart, as you know, i don't get into the politics, but clearly the economy is growing faster now than it was before. we went through a global financial crisis, we had a tax cut that stimulated the economy, the deregulation, getting rid of a lot of government red tape. all that is boosting economic growth. hopefully we will start to see productivity grow -- stuart: come on. i'm not asking you a political question. i'm asking you an economic question. was the economy booming when president trump won the election in november 2016? >> of course it was not. stuart: it was not. >> i think the numbers are clear. we grew at 2%. we slowed down getting close to the election, then we got the tax cuts and the economy did a lot better. i'm also telling you that if we
go ahead and spend more on infrastructure, we will get the economy to reenergize and do a little bit better. also, if we somehow solve this trade uncertainty issues we have right now, that will also juice the economy even more. there are many things out there that washington can do to get the economy continuing to go, continue going, and that's why i don't see a recession any time soon. on top of that, the federal reserve is also cooperating by pivoting in the last year and by the way, if they decide to move in the direction of cutting rates, that will energize the economy even more. stuart: okay. so if we get a china trade deal, if we get an infrastructure spending deal going through, and the federal reserve holds easy on money, and doesn't raise rates, if all those three things happen, can we move to 4% growth? >> i think over the near term, we can. it's just not sustainable -- stuart: but we live in the near term. >> we can soeasily see 4%. stuart: fair to say president trump could go into the election in 2020 with a roaring economy
at his back, 3% to 4% growth all the way til next year? >> if you cut short term interest rates which the fed is hesitating to do -- stuart: do all of the above. >> -- all those things can happen. stuart: that's good news indeed. welcome guest on a monday morning. >> thank you for having me. stuart: good luck, sir. thank you very much. check google. it has suspended some business with huawei after president trump blacklisted that chinese tech company. the stock is down nearly 2% but that's not necessarily because of the huawei news. it's a down day for stock -- for tech across the board. look at amazon. shareholders will decide this week if amazon should sell facial recognition technology to our government. again, that's probably not affecting the stock. it's down because there's an overall downside move in big tech today. big tech names, better check them, after all. they are all down today. look at apple. apple is down, what, nearly
3.25%. that's six bucks. hsbc lowered its price target for apple to $174. currently it's $182. how about uber and lyft. uber is under fire after reports of wild parties celebrating the ipo. lyft is being sued by investors who say they were ahead -- i can't read that word -- middled? ashley: misled. stuart: that's the danger of reading a prompter. sometimes i don't read it right. investors say they were misled ahead of the ipo. the suit names lyft executives and bank underwriters as defendants. both of them down. look at uber, barely at $40 a share. other stories we're watching. stark warning from the president, don't threaten america again or iran will face its official end, his words. he issued that tweet right after a rocket landed in the green zone in central baghdad. president trump campaigning in pennsylvania today. joe biden holds an 11-point lead
on him there, according to the quinnipiac poll. it's a maga rally in pennsylvania. got it. up next, we are joined by pete hegseth. every week he talks to americans in diners all across the country. what are they saying about the economy? pete's got a status report on the pulse of america. can't wait. next. so with a nationwide annuity, you can get protected monthly income for the rest of your life. that's what i'm talking about. how about those song lyrics? what song lyrics? tell him again. tell him again. repeat it. yeah, same thing. (advisor) so with a nationwide annuity, you can get protected... that have made the rx the leading luxury suv of all time. lease the 2019 rx 350 for $399 a month for 36 months.
million. it is down in second place. but "john wick" is a movie -- ashley: i believe you. stuart: you believe me? you didn't see it. our next guest, here's what it says in the prompter, our next guest is a very familiar face. >> somebody wrote that. stuart: he's always being sent around the country talking to people in diners about politics, to get a true feel of middle america. there he is. put him on camera. that is pete hegseth. >> good morning. it's a good assignment. they pay to send me around the country, talk to regular folks. stuart: don't they pack the diners with fox supporters, trump supporters? >> no, no, we just put the word out. it so happens a lot of trump supporters come out but anybody who wants to come out, can come out. i'm waiting for the day a liberal comes out and wants to debate. stuart: are the people you meet and talk to, you are out there every week in a different part of the country, are they uniformly in support of president trump and what he's doing with the economy? >> the people who supported him enthusiastically or even skeptically and a lot of democrats who crossed over for the first time feel like for the
first time in their lifetime they see a politician who is not a politician, who made promises and is delivering on it. they know everything is not perfect. they may not love all the rhetoric. but so many business owners come up to me and say my business was on fumes, it was making it. now it's on rocket fuel. i'm hiring people, i'm expanding, i'm investing in my business, and that is a result of this economy. deregulation helps me. those that are hurt by the tariff battle, most of them, so-called mainstream media will hold up the ones who don't like it, most of them say either we have the fight now or we have it later. china is a huge problem, has been a problem, i'm willing to take some lumps because i know he's in my corner and i hear that a lot. stuart: i think this is important. those are the people, you never hear from them. they are never in the establishment media, never on the nightly news, never on the front page of the "times" or "washington post" ever. they're just not represented in our society. >> they are the forgotten men and women and the silent folks. stuart: that's why so many polls get it so wrong. >> correct. stuart: look at what just happened in australia.
i don't want to drone on about australia, but the polls got it completely wrong. >> even the exit polls. apparently 60 straight polls showed his opponent winning. the exit poll showed him winning. he said there are still those silent folks out there and they came out. i think we are teed up for a similar scenario in 2020. a lot does depend on a continuing strong economy or recognition of opportunity but this is a pro-business president. he's a businessman, not politician. running against a bunch of politicians, promising government-run solutions. socialism is a hard word for a lot of people to understand but if you talk about government-run economy, people don't want the government running their economy. they see what the government runs and it usually doesn't work. translating that i think will be important. stuart: when you go to these diners it's always breakfast time because you're on "fox & friends." people order traditional american breakfast, eggs, bacon, sausage, pancakes, toast, right? >> i like to try the sausage gravy or grits if they have them. whatever their signature meat item is. stuart: anybody ever ask for a
vegan breakfast? >> no. no. we don't go to vegan breakfast diners very often. stuart: why not? >> that's not really where middle america is at. you can go to manhattan here if you want to learn from the vegans. don't go to ohio. stuart: i don't want to confuse our viewers here. do you know what a full english breakfast is? >> absolutely not. stuart: shall we tell him, ash? ashley: go for it. stuart: fried bread, bacon, sausage, mushrooms, tomatoes, mashed potatoes, usually fried, eggs, and black pudding. ashley: baked beans. stuart: baked beans. >> is this some sort of sandwich? stuart: all on a big plate. finish the lot. full english. ashley: just don't go swimming for a week. >> you englishmen are known for your great cuisine. i can't wait to try it. i'll try it one time. get me an english breakfast next time i'm on your set.
stuart: you'll love it. you're in trouble, let me tell you. it might just happen. mr. hegseth, you're all right. see you later. check out bitcoin, please. >> i do still own it. i bought in the dip. i bought at $3,000 and $4,000. stuart: look at you. >> this is going. this is a long-term deal. stuart: we'll feed you a full english. >> i'll pay for it with bitcoin. stuart: how about the price of gold? there's a story for you. $1277. it's been there for a long, long time. nothing seems to move it that much. better check this one out. a waterfront mansion, del ray beach, florida, comes with a ferrari, $350,000, custom boat, $1.6 million, all kinds of furnishings, artwork, $2.5 million thrown in there. next we will tell you what the whole package deal costs and you can decide if it's worth it. don't tell your mother.
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who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. it's a revolution in sleep. the sleep number 360 smart bed is on sale now during our memorial day sale. it senses your movement, and automatically adjusts to keep you both comfortable. it even helps with this. so you wake up ready to hit the ground running. only at a sleep number store. during the memorial day sale, save $1000 on the new queen sleep number 360 special edition smart bed, now only $1,799. only for a limited time. sleep number. proven, quality sleep. stuart: all right. take a look at this. a lego model of a bughati unveiled in denmark. it's a car, of course.
this model used more than a million pieces. the car does have an engine. it took 13,000 hours to make it. the car has front and rear lights, removable steering wheel, a brake pedal and yes, it does actually drive. ashley: i wouldn't fit in it. that's all i know. stuart: it looks good, doesn't it? pretty good job they did of making it. 13,000 hours to make it. waterfront mansion in del ray beach, we told you a little about it, comes with all kinds of pricey toys, ferraris, et cetera, et cetera. okay, hold on a second. what are the toys, what's the price of the overall deal, and lastly, do you think it's worth it? deirdre: i'm not crazy about this color of the car. but i would take it. all right. so you get a ferrari spider, worth about $350,000. you have a midnight express custom built boat, $1.6 million. also included in the purchase price, home furnishings, art worth about $2.5 million. if you just want the house without the toys, it's $8 million. if you want with the toys, it's $13 million.
five bedrooms, seven baths, two and a half baths, this is between fort lauderdale and west palm beach so nice location. you're right on the waterway which is presumably why you have a boat. listen, i think it's worth no state tax, no state income tax in florida, right? stuart: so in your opinion, $13 million total package deal is worth it? deirdre: here's the thing. i'm not the best driver in the world. i don't like to admit that but there it is. i would probably go without the toys and just settle on the modest package. stuart: that would be eight million. worth it? deirdre: yeah, i think so. you have even a wine cellar. it's got a bunch of other, jacuzzi, pool. and for a good new yorker, that would blow anybody's mind, 17,000 square feet. i actually can't even imagine that. stuart: 17,000? deirdre: huge. stuart: that is big. $8 million, no toys. what do you think, ash? ashley: no. go the full english. stuart: okay.
we're going to get real serious here. listen to this. a million people have signed a petition to remake the final season of "game of thrones." ashley: i had one in this studio, i had to talk him off the ledge this morning. he's laughing now, thank goodness. yes, they are really upset. they said the final season of six episodes has been absolute rubbish, they say. of course, the social media is just lit up. once again, another ruined show, just godawful, says another. i watched the first seven seasons in a binge just to get caught up. what a waste of time. they're not happy. of course, it was $15 million to make each episode. hbo had $19 million spent on this. are they going to remake it? no. stuart: no. just get over it. we were talking about a full english, right? just a moment ago. you can get a full english breakfast in new york, according to eater new york, a website. the top three places are tea and
sympathy, greenwich village, balthazar and the atlantic chip shop in brooklyn. ashley: fine establishments. stuart: that would be fried bread tomatoes, mushrooms, baked beans, sausage, bacon, eggs, fried potatoes and black pudd g pudding. three places in new york can get it. ashley: would you like to go? stuart: let's turn serious. i don't know how you go from full english to this. tension with iran clearly in the news. tomorrow, top officials from the administration go to the hill to tell congress what's going on. secretary of state pompeo, defense secretary acting patrick shanahan, joint chiefs chair, general joe dunford, they will all be there on the hill tomorrow talking about iran. got it. last week, jeff flock was with the hog farmers. how the trade war affects them. the answer is badly. today, he's on a boat in lake michigan. how the tariffs are affecting
stuart: we are down 80 points as we speak, exactly one-third of one percent. morgan stanley just said that we will see a global recession if there's no trade deal and if the u.s. ends up imposing tariffs on the remaining $300 billion worth of imports from china. that's negative news, sent the market down a little. we are off 82 as we speak. the price of oil, bearing in mind real tension in the persian gulf, $63 a barrel this morning, up a half percent. the price of gas, though, $2.85 a gallon. that is your national average for regular. it's actually gone down five days in a row just as the summer driving season approaches. $2.85 is your average. president trump giving iran a stern warning. here is the quote. if iran wants to fight, that will be the official end of
iran. never threaten the united states again. congressman lee zelden, republican from new york, is with us now. i'm sure you saw the announcement the secretary of state, acting defense secretary, chairman of the joint chiefs, they will be testifying tomorrow i think to your committee, if i'm not mistaken. >> we have requested in congress a private top secret briefing -- stuart: on iran? >> on iran specifically from the leaders in the trump administration to be able to tell us what they need to tell us, but also to be able to answer questions that we have. this was a request made by republicans and democrats, communication is good, so that congress is weighing in with the latest most updated information. stuart: are these three very, very senior officials agreeing to speak to you all because they want to tamp down on speculation that war is coming? is that what they're doing here? >> you know, i don't want to speculate as to what they're going to say. i think what's important, there are some questions with regard to what iran has been
threatening, what kind of -- what has led to that increased, that elevated concern that the administration has had. clearly there is intelligence that has gotten a heightened level of concern within the administration. we would like to know what that is. and also, as the members of congress, it is our duty under article i to have debates and to weigh in on when the administration should be engaging in military conflict or not. so it is our article i congressional constitutional duties to have a role in that process. stuart: as a complete outsider to this, it seems to me that president trump does not want war there, he doesn't want troops involved in fighting the iranians, he really wants the standoff to continue. i think he wants the people of iran to do something about regime change. >> so totally spot-on with regard to the president's desire to avoid military conflict. it is the last possible option.
when we aren't silent it's not because we want war, but because we want to prevent it. as president trump got flack in the summer of 2017 when he said that north korea would be met with fire and fury if they attacked the united states, same thing here. whether it's iran, north korea or someone else, if you attack the united states, you will be met with fire and fury. we have four instruments of national power primarily, diplomacy, information, military, economics. there's a belief that diplomacy and economic pressure, the information campaign to one of your points about the iranians, the iranian people rising up in their own country, it's all more effective when the military option is real and on the table. it doesn't mean we want to use it but it's an effective deterrent. it can be a very successful effective deterrent if it's on the table. to your point about the iranian people, millions of iranians want a different path forward for their country. they internally need to take care of that opportunity that presents themselves as it has in the past to rise up and to have
a new direction for their country. that's what they want. they want stability, prosperity, freedom. they can have it, but it's not going to happen with the united states government launching a preemptive strike against iran. stuart: it seems like the policy is that the united states, israel and saudi arabia in a very loose alliance are going to contain iran. it seems like a containment policy. >> i would say what we're witnessing because the iranian aggression has been such a disruptor all over the middle east, you are seeing several different countries all throughout the region actually start to look at israel differently, where in the past they have looked at israel as an adversary, not a friend, they are so concerned about iranian aggression they are forming alliances that didn't exist before with israel. i also have seen the uk is starting to come around a little bit as it relates to the jcpoa. i would say france is a little bit behind the uk, germany is maybe a little behind france,
way behind france. stuart: way behind. >> but when we talk about p5 plus 1, the countries that negotiate a deal with iran with the jcpoa, there are a whole lot of other countries in the world and there are many other countries specifically in that region fully supporting president trump's decision to go in a different path, to push back on iranian aggression and also concerned about sunset clauses, the verification regime and all these other bad activities like overthrowing foreign governments and financing terrorists. the trump administration is pursuing a position of strength, not weakness. a big difference than president obama and secretary kerry. stuart: very big difference, i would say. radical difference. congressman, thank you for being with us in new york today. >> always good to be with you. stuart: yes, sir. thank you. i'm going to switch gears completely. brunswick, you may know that, that's a big name in boating, they are the company behind brands like mercury marine and sea-ray. jeff flock is on a boat in michigan on lake michigan, i should say. jeff, is the trade war with china hurting the boating business?
i know you are freezing cold. keep it short. reporter: our undying effort to give you the impacts of the tariffs. i've got this exclusively, the ceo of brunswick, fairly newly minted. he's got a british accent. >> thank you very much. reporter: tariffs. you expected they were going to stay at 10%. they now went to 25%. how big of a hit to brunswick is that? >> it's about a $7 million hit to earnings this year but we did include that in our forecast at the beginning of the year. reporter: you were thinking ahead? >> we were thinking ahead. the canadian tariffs were lifted, we got some exemptions so we are working our way through it. reporter: david says the commerce department was fairly willing to listen to your plea for an exemption. >> most of our competitors are japanese, so it doesn't make any sense really to apply tariffs to a tremendous american company like us to really favor the
japanese. reporter: we are in a boston whaler, by the way, mr. varney. it goes pretty fast for a boston whaler, i'll tell you that. and just as you go forward, i've got to ask you if you are optimistic about this trade situation with china going forward. >> well, of course we are hoping for the best. we would like to see the situation normalized as quickly as we can. we are hopeful. sometimes there's high volatility just before these things improve. we are certainly hoping for the best. reporter: yes. david, i appreciate it very much. i know mr. varney has a short attention span there so i will send it back to him. he also says us, when he says us, he says "uz" like you. the wizard of uz. stuart: i did not ask your guest if he could handle a full english after a boat ride like that. don't even mention food to him,
okay? jeff -- no, don't do it. don't do it. don't do it. you haven't got time. thanks, gentlemen. we appreciate you being with us. cold and all. fcc chair ajit pai endorsed the merger between sprint and t-mobile. both stocks are up. charlie gasparino was the first to report this story last week on fox business. got it. dish network buys echostar's broadcast satellite business. it's an all stock deal and it's valued at about $800 million. dish network, down 11% on that. big news on the campaign trail. it's about your money. senator kamala harris wants all big companies to get a certificate from the government that they have an effective equal pay for women policy. big fines if they don't comply. what a story. president trump will rally in pennsylvania tonight but the latest polls show joe biden leads him overall in pennsylvania by 11 points. that's biden country, isn't it?
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on behalf of the eight generations of my family who have been in this country, we're going to put a little fuel in your bus. my family is making a grant to eliminate their student loans. stuart: now, let me be clear. that gentleman just agreed to pay off the student loans of all the people in the graduating class 2019, morehouse college. what a guy. deirdre, i want to know who this gentleman is. deirdre: some of these kids were hot and tired and they were saying we didn't even know if we heard him correctly but all the parents are texting. so he is by training a chemical engineer. went to cornell university. he made a lot of money at
goldman sachs, became an investment tech banker, if you like, did a lost deals for goldman but he has a very generous track record. he's given a lot to the school of engineering at cornell. he's given a lot to various, i mean, he's a billionaire. stuart: the wealthiest african-american in the country. deirdre: he has joined the giving pledge along with warren buffett and bill gates so he has made it a habit of giving away some of his money. obviously for these kids, it's an exciting day but it's also kind of hot and they are sort of sleepy and then this guy, by the way, the president of morehouse college says he didn't even know this was coming. stuart: he was using a teleprompter. he was paying off student debt, that bit was not on the prompter. he had not announced it to anybody. complete surprise. deirdre: $40 million value, more or less. amazing generosity. stuart: i'm just trying to figure out what would alexandria ocasio-cortez say about this very generous billionaire. ashley: she says that's nice,
but. basically says quote, it's important to note the people shouldn't be in a situation where they depend on a stranger's enormous act of charity for this kind of liberation to begin with. in other words, no one should have -- should get out of college with a huge amount of debt. she says this would be a great social experiment. why don't we follow the kids who have all their loans paid off, see how they do and the choices they make compared to those that still have the big weight of student debt around their necks. there you go. that's her perspective. no big surprise. stuart: president trump has a maga rally tonight in pennsylvania. now then, according to the latest quinnipiac poll of pennsylvania voters, joe biden has an 11 point lead, 53-42 in a head-to-head matchup. come in, matt schlapp, american conservative union. the president's got his work cut out for him in pennsylvania and this is a battleground state. what do you say? >> yeah, well, if you look at the average of the polls of the trump/biden matchup, what you
actually see is joe biden roughly is in the same position, maybe a little better than hillary clinton was, in 2016. if you look at the fundamentals on donald trump in pennsylvania, he's actually more popular today than he was during that election in 2016 because as you know, stuart, his policies are very popular in pennsylvania. the idea that we have added half a million manufacturing jobs back to the economy, that you know, he is trying to do everything he can to lower regulations and lower taxes, to grow american companies. so actually his fundamentals look good going into re-election in pennsylvania. stuart: joe biden did say just yesterday, i think it was, that president trump or donald trump inherited a booming economy from the obama/biden team. what's your response to that? >> suppressed laughter. nobody, nobody in the eight years of the obama administration felt very confident about our economy. it's true that obama inherited a
pretty rough economy at the end of the bush administration, where we had the great recession, so there was no question that things got better, but let's face it, the american entrepreneur, the american investor, the american working man, working woman, have never felt so good about their economic prospects in the last decade and a half as they do now. all the right track polls, consumer confidence polls, show that american voters are voting for trump with their economic optimism which they lost during the socialism of barack obama. stuart: did you see the australian election? i don't want to drone on about it but the candidates who supported climate change moves and tax the rich, lost hands down, when that canned dwadidat supposed to win. to me, that's a parallel with 2020. what do you say? >> yeah, absolutely. look, we saw this with brexit in the uk, and trump's victory in america.
interestingly enough, conservatives in australia are on the move. we are going to have a cpac in sydney, australia in august. there are really great things happening in australia. you're right, these important allied countries, you will see political shifts that kind of move together and i do think there's an important relationship between the conservative movement in both countries and i think that nobody was happier with that election result than president donald trump. stuart: you've got a cpac conference in sydney, australia in august. interesting. >> come down with us. it's going to be fun. stuart: that's a long ride. matt schlapp, thank you very much. we will see you again. now this. kamala harris wants to guarantee equal pay for equal work with some new regulations and some fines. what's the plan? deirdre: fine, take 1% of a company's profit for every 1% difference in wages. in other words, that doesn't pay equally between genders. right now, women who work full-time apparently are still making 80 cents on the dollar.
apparently it is even worse for african-american women and hispanic women. this is according to a lily ledbetter fair pay act. stuart: big companies would have to get a certificate from the government. deirdre: yes, they would. for any contracts over $500,000 that they would do with the government, to your point, which just adds a lot more red tape. obviously this needs to be addressed in some way. not sure this is the most efficient way. stuart: what is equal work? ashley: right. deirdre: i think same title. companies have a way around that. they just don't give people the same title. stuart: isn't there a rule or law at the moment that says a lady does this, a man does that, and -- deirdre: the fair pay act. stuart: you have to pay them the same thing. deirdre: it was brought in under the obama administration. ashley: still not happening. stuart: they just want a thumb on the scale and have the government bureaucracy do it. that's my opinion. deirdre: i think it definitely involves more government supervision. you have to have people
stuart: blue apron, the meal kit people, they've got a notice from the new york exchange last week, the stock had fallen below $1 a share. that is the threshold for triggering a possible delisting. they've got a plan for a reverse stock split, would take the value back above $1. the market doesn't like that, though, and it's down 12%. 65 cents a share, blue apron. tesla, down to $201 a share. it was actually at $197 earlier. first time it's dropped below $200 since december of 2016. ash, we had keith fitz on the show early this morning saying it's going to go down to $100. ashley: there is concern that he's losing the loyalty of his base, that perhaps demand for the model 3 is starting to wane a little bit.
we know their cash problems and their financial problems, they are desperately trying to save money through cost cutting but you know, this -- deirdre: he raised $2.7 billion unexpectedly earlier this year, and everybody thinks he's a genius, he just has a difficult time actually producing these electric cars. stuart: he needs a whole lot more money. that's another story. ashley: burning through it. stuart: did you see this? california moved up its primary to super tuesday. that's an important move. joining us now is mark balasari with the policy institute of california. welcome to the show. moving up the super tuesday primary in california would seem to me to give a big boost to senator kamala harris from california. am i right? >> well, it would seem to. 's the very early to tell, though. we asked a question in our march survey about whether californians even wanted senator harris to run for president, and 40% of californians said that they did and over half said that
they didn't. about half of democrats said that they wanted her to run. so it would seem that it would be an advantage because she has run in state-wide elections for attorney general twice and for u.s. senator once in the last decade. i will also point out there is one other candidate who has run in a state-wide primary in california and that was bernie sanders, who did quite well in the june 2016 primary. so i expect it will be very competitive. stuart: the poll that you went through, i don't know whether it predicted who would be the candidate coming out of california. it did not? >> no, it did not. stuart: did it show a frontrunner at this moment? >> no, we haven't asked about that. there are so many candidates, it's so early in the race. but it is important to keep in mind that senator harris has the experience running in state-wide elections and not many of the other candidates have had any
experience in california. it's a big state, a complicated state, and now that it's a march primary it will be a very important state. i expect there will be a very large turnout. stuart: okay. california's governor has called for new taxes but the state already has very high taxes and i think it's got a big surplus. why does he need taxes to be raised? >> that's a great question. a lot of californians are asking that question, too. in our latest poll, we found that almost half of californians said they felt they were paying too much in taxes now. that's consistent with what we know from looking across the state in terms of california being one of the states that has the highest taxes. keep in mind that -- stuart: i'm sorry to interrupt you, i have limited time. is it true that middle class californians are moving out in significant numbers? >> it's true that the there are more people moving out than
moving in. it's true that we now have the lowest population growth rate that we have seen in modern history of california, and a lot of that revolves around the cost of housing and the cost of living in california. californians are really very stretched economically, many who are in the middle class. of course, there are many who are doing very well in california, but many who aren't doing well. we have the highest poverty rate in the nation as well as tremendous, you know, wealth that's accumulated here in this state. stuart: yes, you do. highest taxes and highest poverty rate. how about that. please come back and see us again soon. we need your information. >> thank you. stuart: sure thing. more "varney" after this.
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english breakfast coverage. one viewer wrote in with sad news. the atlantic chip shop in brooklyn, which we thought was still open and serving full english is closed. >> oh. >> also downtown. stuart: two that is left. >> i have your peeps. i'm trying to support the home team. stuart: limited amount of time. we can do this. fried bread, sausage, bacon, tomatoes, mushroom, eggs. >> friday eggs. >> black pudding. >> and black pudding. >> and baked beans. >> you had me until the black pudding. stuart: what is wrong with black putting? >> i did not grow up in your fine country. stuart: you do not know what it is? >> blood sausage, that is hard pass. stuart: thin slices. it is black. >> i don't care how it is stuff. >> lovely. british cooking at its finest.
stuart: so much for british cuisine, like military intelligence. contradiction in terms. >> jumbo shrimp. >> we should to to tea and sympathy. stuart: no, we're not. we're out of time. stuart it is yours. neil: the corner of wall and broad with the dow down 78 points. growing concerns nothing is happening anytime soon when it comes to china trade talks. they say, nothing is on the books. we've got a freighter now in the south china sea, nothing to do with trade, everything to do with china militarizing islands. we'll get into all of that. edward lawrence is in washington where those talks might stand and susan li on the huawei crackdown at the new york stock exchange. we're also going to have a little bit later on the former sachs ceo, and retailers likely feeling a lot