tv Varney Company FOX Business August 1, 2019 9:00am-12:00pm EDT
>> 1.3, 1.4 million, most of whom based on application. >> bernie sanders summed it up for the democrats, corporations don't give a damn about their workers. ba balderdash. maria: he said let's tax it up. great show. good to see you all. "varney & company" begins right now. stuart, take it away. stuart: that's the one that got to me. very english word, dagen. well done. good morning, maria. good morning, everyone. the man who runs our monetary policy was asked are we at the beginning of a rate cutting cycle. jay powell replied that's not what we're seeing, no. that did it. investors wanted a big rate cut now and a lot more to come. when they figured they weren't getting either, they sold and stocks went straight down. the debate this morning is whether powell made a mistake. the president certainly thinks he did. we will open the market in about a half hour and we're not looking at much of a rebound so far. down 333 yesterday, the dow is
going to be up maybe 20 points for the open. the s&p dropped below 3,000. we're not likely to get back to that level early this morning. the nasdaq's going to be down -- sorry, nasdaq is going to be up about nine points. the debates. joe biden stumbling, not sharp, struggling against the concerted attacks on his long record. kamala harris lost in the weeds of health care and under attack for her record. new york's mayor bill de blasio, we will tax the hell out of the wealthy. that's rich coming from the mayor of a city from which the wealthy are already fleeing. and tulsi gabbard, our president is supporting al qaeda. perhaps the most off-the-wall attention grabber of the entire night. bottom line, this is my opinion, i think it's down to four. biden, sanders, warren and harris. i can't see any of the others breaking into the top rank. 2020 will indeed be capitalism
versus socialism. "varney & company" is about to begin. go back and take back all the things that trump took away. >> if you agree with me, go to joe 30330 and help me in this fight. >> we are now paying $3 trillion a year for health care in america. over the next ten years it's probably going to be $6 trillion. we must act. >> it's time that we separate employers from the kind of health care people get and under my plan, we do that. >> this has to be the party that's not afraid to say out loud we're going to tax the hell out of the wealthy. >> the problem is that the current president is continuing to betray us. we were supposed to be going after al qaeda, but over years now, not only have we not gone after al qaeda, who is stronger
today than they were in 9/11, our president is supporting al qaeda. stuart: you did hear that correctly. the president has betrayed us and our president is supporting al qaeda. i promise you we will have more on the debate in just a moment. first, your money takes priority. as you know, stocks sold off after the fed dropped the interest rates a quarter point. chairman powell basically said don't get used to it. president trump tweeted this. here we go. what the market wanted to hear from jay powell and the federal reserve was that this was the beginning of a lengthy and aggressive rate cutting cycle which would keep pace with china, the european union and other countries around the world. he goes on to say in the next tweet as usual, powell let us down. herman cain is with us, former kansas city fed chair. welcome to the show. question, did powell make a mistake? >> i don't think he made a mistake, stuart, no. the fed has a history of
gradually changing things and i think the statement that was tweeted out by president donald trump indicated that it would probably be others if they deem it necessary. i don't think he made a mistake. i think it was just the first step in several steps to come. stuart: okay. i agree with that. i think there are several more rate cuts to come, starting fairly soon. because i think we have to match the challenge of europe. they're cutting rates, they're printing all kinds of money. we have to match that to some degree. we are being forced into a corner here. i think we're in agreement, more rate cuts to come. can we leave it at that? >> yes. i would agree with that. stuart: okay. glad to hear it. let me get to this. president trump, as you know, you know this, he's had a long-running feud with democrat elijah cummings over baltimore. now listen to this from congressman cummings himself on baltimore's condition. roll that tape. >> this morning, i left my community of baltimore, a drug
infested area where a lot of the drugs that we're talking about today have already taken the lives of so many children, the same children that i watched 14 or 15 years ago as they grew up, now walking around like zombies. stuart: all right, you heard all of this, the backwards and forwards. your reaction, please. >> typical democrat hypocrisy. they say one thing and do nothing. it's one thing to say one thing and say another. they do nothing. back then, the situation was bad and today, it's worse. so rather than talk about the rats, elijah cummings and other democrats want to talk about race. it's called shifting the subject. that's pure and simple hypocrisy. stuart: i think president trump has an issue here and i think he's going to pursue it all the
way through to the election. the poor performance of democrats running big cities. you with me on this one? >> yes. i'm with you on that one also, stuart. we have agreed more today than we have agreed in a long time. stuart: absolutely incredible, isn't it. >> with the president bringing attention to baltimore, what about detroit? they're not totally out of the weeds yet. what about some of these other big cities? they're not totally out of the weeds yet. he is bringing attention to a problem that the democrat policies have allowed to fester for decades. that's what he's doing. i applaud him for it. the democrats don't like it. that's why they're trying to play the race card. stuart: herman cain sums it up in beautiful one-liners every time. man, he's good. thanks very much. see you again soon. good luck to you. you know, we really have to get back to the debate. yes, we do. hawaii democrat tulsi gabbard said president trump is supporting al qaeda because we have an alliance with the saudis. marc lotter, strategic
communications director for trump 2020, is with us. marc, in the unlikely event tulsi gabbard is the nominee, i imagine you will use that sound bite every single day, aren't you? >> there was so much information that came out of those debates that will be used later. it's hard to keep a catalog of it all. that's definitely one of them, especially when you look at the obvious. this is the president who actually took on al qaeda, he's taken on isis which was allowed to flourish under the previous administration and it doesn't matter what gabbard said, you know. the american people know the difference. stuart: it was an attention grabber, i'm sure. now, my opinion is, take it for what it's worth, i think it's basically down to four. that would be harris, biden, sanders, and warren. because i can't see any of the others really breaking into the top ranks. do you? >> you know, it's really hard to tell right now. you know, who is going to capture the imagination of the socialists because as the vice president said so well yesterday, this is not a debate between moderates and liberals.
it was a debate between liberals and socialists and so who knows what they want. that changes from moment to moment. the one thing we know for sure is that whoever comes out of that brutal primary, they are going to be broken and then you get to get into the championship ring with donald trump. stuart: but whosoever gets the nomination for the democrats, the 2020 election is going to be capitalism versus socialism or a degree of socialism. that's the way it's going to shape up. >> absolutely right. let's be honest. they spent the first half hour of each debate talking about taking away people's health insurance. they talked about the next 30 minutes about decriminalizing illegal border crossing and why illegal immigrants should get free taxpayer-funded government health care. these are positions that are just so far out of line with what the american people want, it just shows you that the president was the big winner of this democrat debate. stuart: did you notice that when some of the moderates said hey, you're not going to win if you
take people's private health care away, you're not going to win if you decriminalize border crossings, there was absolute silence, but when the socialists beat up on corporate executives, joe biden said put health care executives in jail, there were loud cheers. >> it's really remarkable how far to the left that this party has lurched. i mean, they are so far to the left now, they have even made barack obama look moderate. it's just remarkable. stuart: they attacked him last night, too. >> they are attacking him and when they're running on policies about taking people's private health care away, let's remember, 95% of americans like their medicare, 85% of americans like their private health insurance, and only 25% of people like decriminalizing illegal border crossings. those are not winning stances for the democrat party. on behalf of president trump, thank you for taking them. stuart: marc lotter, thank you very much. see you again soon. i've got some individual
stocks in the news making news and moving. first of all, general motors. profit up, helped by strong sales of pickup trucks. high profit there. the stock's up 3%, above $40 a share as of now. higher profits at verizon. they got a boost from more monthly phone subscribers. verizon is a dow stock and it is up this morning. qualcomm. not so rosy forecast. when you do that, the stock usually goes down. it is down today. 5% lower for qualcomm. overall, we have a tiny rebound from yesterday's big drop. if you look at the future -- actually, no rebound at all for the dow. going to be down two points. s&p down a point and a half. the nasdaq maybe gives you a three-point gain. no bounce back. the senate advancing a near $300 billion infrastructure bill. sounds like stimulus to me. here's the question. when do those dollars hit the economy, and we get some benefit from it? we'll ask senator john barrasso.
new york's mayor bill de blasio greeted by protesters at last night's debate. they chanted you can't run the city, you can't run the country. we'll have comment on that. and joe biden and julian castro getting into a heated debate on immigration. >> open borders is a right wing talking point and frankly, i'm disappointed that some folks, including some folks on this stage, have taken the bait. >> secretary, we sat together in many meetings. i never heard him talk about any of this when he was the secretary. >> mr. vice president, it looks like one of us has learned the lessons of the past and one of us hasn't. >> what we need are politicians who actually have some guts on this issue. >> thank you, mr. secretary. mr. vice president, please respond. >> i have guts enough to say your plan doesn't make sense. (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math.
congress right now. $287 billion worth. come on in, senator john barrasso, republican from wyoming, whose committee okay'ed that bill. sir, this is a financial program, as you know. and we figure that infrastructure, a program of that size, is stimulus for the economy. so you tell us, if you can, sir, when do the dollars hit the economy? >> we have now gotten it through the committee, 21-0. it's now going to the senate floor because fixing our roads and our bridges and our highways to me is our number one priority for infrastructure in america. it's the money, it's also getting things done quicker and better and faster and smarter by doing it through regulatory relief. you know sometimes it takes so long to get regulations and to get the permits, get the regulations out of the way, get the permits done. president trump with his one federal decision plan makes that move faster and we're putting that into the law. stuart: so when does the dollars
hit the economy? when does the stimulus arrive? are you going to get it done today or tomorrow? can you do that? >> well, we're going to get it through the senate. that's the goal of getting it done this year. we have to get this signed by president trump likely into next year until we get this whole project completed. there's still money in the pipeline, of course, working on these projects. we want to make it easier to get the projects done at the local level and have the decisions made locally as well. stuart: it's just when we saw this clear your committee with agreement from both sides, we figured hey, here comes the money, the cavalry's on the way, and the economy would get the stimulus but really, you're telling me it's not until next year. >> this is -- the current highway transportation bill expires next september. we want to have this ready, loaded to go as soon as that expires and this takes over. stuart: let me change tack and talk about the debate. joe biden was the only candidate to say that sneaking across the border is a crime. mr. senator, bear with us.
just watch this for a second. roll tape. >> the policies of this administration have been facilitated by laws on the books that allow them to be incarcerated as though they have committed crimes. >> i disagree that we should decriminalize our border. >> i don't think we should have a law on the books that could be so misused. it should be a civil violation. >> if you cross the border illegally, you should be able to be sent back. it's a crime. stuart: interesting. joe biden was the only one. what do you make of this, senator? >> well, it seems that even barack obama's too conservative for that group of lefties that we have heard the last two nights who are taking this sharp left turn with a socialist agenda. it's the spending, it's the call for impeachment, it's the eliminating fossil fuels, but also on immigration, the melting away of our borders. all of them, including joe biden, want to give free health care to illegal immigrants. so many are in favor of eliminating immigration customs
enforcement, the division of homeland security, getting rid of that, they are for sanctuary cities. this is so far out of the mainstream of the american public that it is scary, and i think that anybody that watched the last two nights would be scared by what they saw. stuart: i don't think they can walk it back. i don't think they can do that about-face. mr. senator, always a pleasure. thanks for being with us again, sir. appreciate it. thank you. >> thank you, stuart. stuart: take a look at futures. we are a financial program so let's deal with money. down for the dow, down for the s&p, down for the nasdaq. in other words, no bounce back from yesterday's late sell-off. netflix, it is tracking some users' physical activities, where they are, what they're up to. they say netflix says it will help them provide better service when you're on your phone. we'll see about that. cord cutting. that's accelerating. more than a million people ditched cable or satellite tv in just the last three months. one analyst calls it a bloodbath. full numbers for you after this.
we are just talking about comcast, at & t and charter. this has been a terrible quarter if you're in the pay tv business because you're losing viewership to the cheaper streaming services. we have seen this trend. we know it's going on. but it seems to be accelerating. year over year, the drop now is 5.5%. that's a big drop. stuart: interesting. ashley: yeah. you know, listen, we hear it all the time but now the numbers are starting to prove what we already know. stuart: not good news for us but we're not going to dwell on it. ashley: let's move right along. stuart: we've got an update on fake meat. burger king, i'm getting confused here, burger king's meatless impossible whopper is going nationwide. i think i got that right. all right. starting next thursday, available at more than 7,000 locations all across the country, the impossible whopper goes nationwide. ashley: funny to say. impossible whopper. stuart: impossible for me to eat a whole one. put it like that.
we open the market in less than -- actually, about six minutes away. we were all hoping for some kind of rebound after the big drop late yesterday. looks like it's not going to happen. dow industrials will be up just a few points, same with the s&p. nasdaq, dead flat to slightly higher. bottom line, no rebound but we'll take you to wall street anyway. -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.
stuart: things got a little heated between joe biden and cory booker last night. they were talking about criminal justice reform and this happened. roll >> there was nothing done for the entire eight years nothing o deal with the police department that was corrupt. >> mr. vice president, there's a thing in my community, you're dipping into kool-aid you don't even know the flavor. stuart: that went down well with the audience. it was a good line. big social media event but wait a minute, kool-aid's got to be responding to this. ashley: advertising, whatever form it comes, is a great thing. look at this tweet that went out. the kool-aid man saying senator booker, oh, yeah. we know the flavor. i thought that was very funny. stuart: i don't think that was a breakthrough moment. ashley: no, no. stuart: i don't think cory
booker can move into the top ranks. ashley: he didn't have a bad night but i don't think he will take it that far, much further. stuart: i think joe biden had a bad night. ashley: he did. stuart: he was rattled at times. he didn't appear sharp. ashley: stumbly. stuart: i want to use the right words here. he did not appear sharp, organized, and he was stumbling on some things. ashley: he was very much under attack. stuart: yes, he was the focal point of the attack. i don't think he increases his lead with last night's performance. i think it might cut into it a little bit. here's my premise. it's down to four. that's it. warren, sanders, biden and harris. ashley: yeah. i think so. stuart: i can't see anybody else catching up. ashley: no. a real, as you said earlier, socialism versus capitalism. stuart: all right. 30 seconds to go. we open the market, it's thursday morning, august 2nd. no, doesn't sound right. august the 1st. august the 1st.
most people are looking to see how the market responds this morning. right after the big drop that came late yesterday. hope you're not too disappointed because i don't think we will get much of a bounce but we shall see in three seconds. here we go. two, one, boom, we're off and running. we were down 300 yesterday. now we're up 24, 19, 20, 29. okay. bottom line here, we're flat to slightly higher for the dow. got to be disappointing after the sell-off yesterday. turn me to the s&p 500, please. what's that doing? it is up a tiny fraction. .05%. the nasdaq, please. show me that one. it is up 19 points. that's a quarter of 1%. that implies hopefully the big techs are making a comeback. look at this. the yield on the ten-year treasury is exactly 2.0%. that is a big deal. that implies that money is pouring into u.s. treasury
securities as interest rates go down all the way round the world. 2% even on the ten-year treasury. price of oil, that's another market that's moving. okay, gold. go with that first. gold is down sharply. $23 lower at $1414. i will tell you now and again, the price of oil is off 2.5%, all the way down to $57 a barrel. some markets are moving, stocks are not. come in, michelle mckinnon, scott martin, ashley webster, all four of us together on the screen discussing the market and why no bounce-back. michelle, you're first. will we get a bounce-back at some int? >> yes, we just have to be patient. we're in day two. stuart: when is it coming? >> could be tomorrow. could be today. stuart: will it be a full recovery? >> i think so. a few things. we had better than expected earnings. yes, the earnings haven't been fantastic, we had good gdp numbers and really what was important about gdp is the consumer continues to be
extremely strong and that is going to push this economy forward. stuart: you know, it was buried but we got very good numbers on actual real incomes. much higher than we thought. >> yes. stuart: that was buried. >> absolutely. stuart: look at this. now we're up 36 for the dow and 30 points for the nasdaq composite. that's one-third of 1%. okay. modest bounce-back. leave it at that. >> you moved the market. stuart: that's a difficult burden to bear. facebook getting ready to release a streaming device, okay. a tangible thing. it's a roku-like device. you hook it into your tv. scott, is that a game changer? certainly something brand new. >> it's an attempt again at world dominance, i guess, that facebook is trying to put on. let me get this straight. they got currency so they will control what's in your wallet, now the streaming devices so you will start doing everything that disney and some of the netflix guys are doing, roku as well, which are stocks we like. it's interesting because of the
fact that facebook is really trying to maybe get behind or get past, let's say, this whole privacy issues. they had that record fine recently. to me it's a good idea if it works well. i'm a little bit suspect on the currency but the streaming device seems easier to do. stuart: it's a tiny fractional gain for facebook's stock but it's at $194 as we speak. i want to move on to netflix. reportedly, they are tracking the physical activity of some users. now, michelle, that could give away the location of where you're moving to. i don't think there's a single netflix subscriber who will cut netflix out of their system because of the location. >> no, i don't think that but there's something different in tracking my movement versus tracking my location as google does. google's trying to help me, that's fine. tracking my movement, i don't know. in general, talking about the facebook story, about how they will be streaming, whort: netfla little bit. streaming stocks, all of them
strong this morning. look at that screen. roku, at & t, spotify, comcast, all on the upside. we are calling them streaming stocks. streaming really is taking over. that's a fact. all right. check the big board. we are up, what, 30 points. that's all we've got. 31 points. 26,894. big tech stocks. got to watch them. they're still attracting a great deal of money and all of them are up. apple's at $215 this morning. amazon still shy of $1900. microsoft, big drop yesterday, back to $138 this morning. dunkin', better profit but revenue fell. how do they work that out on the market? down 2% for the stock. higher profit at yum brands, the parent of kfc and taco bell. the stock is going up. why are you shaking your head? >> i think it's hilarious. taco bell continues to do really well here. it's amazing. >> and you can get it delivered.
how great is that? you get taco bell tacos, burritos -- >> late night. what else could you ask for? stuart: you all have it wrong. you're wrong. what's happening here is a sharp improvement in the spending power of ordinary americans. i was looking at the numbers in the "wall street journal" yesterday. real income up over 4%. >> right. then hopefully we will continue to see those numbers rise. >> they go to taco bell with that money. stuart: they are doing that kind of thing. look at this. strong demand for snacks, boosted kellogg's profit and sales. i don't think that has anything to do with disposable income. it has to do with diet. kellogg up $5. general motors up 2%. strong pickup truck sales helped them generate higher profits. $41 a share for gm. verizon is a dow stock. it's added wireless customers. its profits were down but if you add wireless customers, the stock goes up and it's up 1.25%.
look at qualcomm. not a rosy forecast. you do that, the stock goes down. 4.5%. look at ibm. reportedly they have laid off more than 100,000 workers in the past few years. they trying to appear cool and trendy like amazon and google so they are hiring younger people. ibm getting hit with several age discrimination lawsuits. got any more on this? ashley: this has been going on for awhile. this information came out in a deposition where one former human resources vice president said look, ibm is trying to get rid of this kind of image of being fuddy-duddy. your grandfather's company. they are trying to be cool but that's part of the accusation against them in this age discrimination, they are doing rounds and rounds of cuts for older employees and trying to make it more like it seems to be a google kind of place to work, or amazon or one of these, you know, for millenials. they are trying to refresh their
image, basically. this is coming out in a lawsuit. bear in mind where the information is coming from. disgruntled ex-employees. stuart: could be. i just love fox because i'm still around. ashley: you're not a fuddy-duddy. stuart: okay. let's get serious. the july jobs report tomorrow morning. let's go around the block. what are you expecting, scott martin? >> i think it's going to be a blowout number, for the sake of the economy i do, but also for the sake of the federal reserve. to use a hot term, i don't think they know what flavor kool-aid they're drinking right now because if you actually listened to the statement yesterday and saw the move, it wasn't really very congruent. jerome powell said a lot of different things in that statement that obviously upset the market. i hope for their sake and the fact they won't be as accommodative as we thought, we will get about 225k jobs added for the month of july. stuart: if we get them, as you say, if it's a blowout number, that would be 225, that would be
a bloout numbwout number, does market go up or down? >> i think it goes down. they seem to want fed intervention more than a strong economy. >> i think that's a short-term decision, maybe the market would go down. if the economy continues to go strong, markets are going higher. stuart: it's hard to argue with a very strong economy. >> it is. it really is. stuart: the fed might not cut more rates. >> the fed doesn't necessarily need to cut because of the strong economy. i think if you saw a 50 basis point cut, that would be more nerve-wracking. >> why are rates dropping so fast, though, guys? that's the question. data has gotten better in the last few months and all year, really, we could argue. stuart: i'll tell you why. i'll tell you why. europe and japan have negative interest rates. >> people are coming here. stuart: we've got to respond to that. you have to. otherwise the dollar goes through the roof, trade is disrupted and our economy, look at that, money is pouring in. you got 2% even on the ten-year treasury. the fed will lower rates. that is my opinion.
i've got an amazon story of the day. here it is. amazon wants to be your personal stylist. i'm up for that. lauren simonetti, what are they doing? lauren: netflix for your closet. okay. amazon has, what, over 100 million prime members. now if you give them $5 more a month, they will send you a box with eight items, keep what you want, send back what you don't. it's called personal shopper by prime wardrobe. it competes with another personal shopper that sends you items. that actually costs a little more, $20 a month. of course, you don't pay the prime fee. stuart: it's a great idea. lauren: spectacular idea. >> what kind of brands? lauren: an assortment. this is the weakness in amazon. they have not cracked as much as they have tried, the fashion market. >> good point. lauren: walmart is on their heels. walmart has personal concierge service where they deliver in bags, not boxes which is phenomenal because you get that
box, what do you do with it, got to break it down or whatever. it goes a step further. it basically says hey, jet black, i need a gift for my daughter's 5-year-old friend's birthday party and it will send you that gift wrapped. that is taking concierge and personal shopping to a whole new level. amazon is competition. stuart: five bucks extra per month for prime members gets you once a month a box of eight fashion items, buy what you like, send back what you like. >> if you have a personal stylist you will be individually working with? lauren: you fill out a survey so they know what you like. they also give you a lot of recommendations, then you can tailor it to those eight items. >> we will see how good their tailoring is. certain companies aren't that good. stuart: i just want to note this, please. the yield on the ten-year treasury has now dropped to 1.99%. i'm not suggesting we move the markets but i think the market's responding to the kind of things we are saying. 1.99.
how about that. on sale, too. scott, michelle, thank you very much indeed for joining us. we always appreciate it. check the big board because now we are back to 26,900, a gain of 38 points. remember atari? still best known for its classic games, frogger, pong. i used to play them. getting ready to release a new game console. a console. how are they going to get young people interested in atari, a company they never heard about? we have the ceo on the show. wa are you whispering about? what have i done now? ashley: remember pong? i remember it well. stuart: drunken pong. this week's democrat debates are a perfect example of what's gone wrong at cnn. at 11:00 this morning, you will hear my take on the decline of the network. we will get reaction from lou dobbs. he's on the show today. next, though, hhs secretary alex azar on the administration's plan to allow some prescription drugs to be imported from canada.
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strt: i said at the beginning of the show that it's a modest rebound from the big loss yesterday, and modest indeed it is. we're up 48 points, 26,900. here's the real big story of the day. the yield on the ten-year treasury has dropped to 1.99%. talk about lower interest rates. breaking news happening now from washington. there are reports that the administration is planning on extending, extending nuclear waivers to iran. what does that mean? ashley: that's quite a head line. this is to allow work on civil nuclear projects in iran. the administration has been
under pressure, including senator tom cotton, ted cruz, marco rubio, saying they should end those waivers. according to our colleague at fox news, he says secretary -- treasury secretary steve mnuchin has convinced the administration to again extend those waivers to iran. maybe a little -- stuart: ashley, thank you. we will get to drug prices. the white house plans to allow some prescription drugs to come in to america from canada. joining us, hhs secretary alex azar. sir, let's get real specific if we can here. what kind of drugs, which drugs, are we talking about and by how much would prices be cut, if we bring them in from canada? >> hi, stuart. so president trump heard the american people, they want their drug prices down and we have been working on that. this is a fulfillment of something the president promised which is he wants us to be able to import drugs from other countries if it can be done safely and lower costs for the
american people. we proposed two pathways. one of them, as you mentioned, is from canada. that's under a statute. there's a statute called section 804 and we would allow states and pharmacies and wholesale distributors to come in with plans to import drugs safety from canada. now, that statute excludes biologic injectable drugs. i would go broader but that's the statute we have. stuart: you could bring in, just for example, lipitor. you could bring that in and it would be cheaper. >> that's right. stuart: brand name drugs of that stature, correct? >> exactly. we pay on average 1.8 to 2 times what the industrialized world pays for drugs. so the savings could be quite substantial. now, stuart, we have got a second track here that is actually open to all drugs and
all countries and this is where the drug company itself could bring in their own drugs from outside the u.s., and we would give them a different drug code so it's actually a different product. this would enable them to get around some of their contracts with the pbm middlemen where they say we're locked into these huge rebate contracts, we can't possibly lower our list prices, we are calling them out saying we will give you a pathway to bring your drug in, have it be considered a different drug so we are -- lower your list price. lower your list price. stuart: that sounds like real progress to me. i'm just waiting to see my lipitor go down in price. i have a long time to wait, maybe. lots of talk about health care at the debate last night. just listen to this, mr. secretary, for one moment. roll that tape. >> vice president biden's campaign calls your plan quote, a have it every which way approach. >> well, they're probably confused because they've not read it. >> we need to be honest about
what's in this plan. it bans employer-based insurance and taxes the middle class to the tune of $30 trillion. >> obamacare is working. the way to build this and get to it immediately is to build on obamacare. >> senator biden, your plan will keep and allow insurance companies to remain with status quo, doing business as usual. >> i don't understand why democrats on this stage are fearmongering about universal health care. stuart: mr. secretary, they are all dancing around that expression medicare for all. would you just give us your succinct opinion on medicare for all? >> without commenting on the candidates or anything, i will just tell you one thing we are learning as the advocates of medicare for all keep talking about medicare for all, it means medicare for none and it means taking private insurance away from people. so one thing that has come out from those, from people discussing medicare for all, there's this option that people keep talking about that's a medicare buy-in, that says oh,
we won't force everyone to go on medicare, we'll just offer a medicare plan, a public option that people could buy into. i think the really revealing thing that's come about from the discussions is the advocates of those medicare buy-in are now conceding that it eventually leads to medicare for all, that it will crowd out private insurance, union insurance that everybody eventually gets on medicare. so it simplifies the discussion here that it really, whatever you're saying, it ends up being medicare for all. maybe it's tomorrow, maybe it's ten years from now, but they are going to take away your private insurance, they will undermine medicare and that's what president trump is saying he will not let happen. he will not let medicare be undermined for our 60 million seniors. he will not let the private insurance that people have through their employer or through their union plans for 180 million people, he won't let that be undermined or taken away. and he's going to create options and choice for those in the individual market. that's what we're doing. that's the competing vision of
health care of personalized, affordable patient-centric that puts you in krocontrol of your health care, treats you like a human being, not a number. stuart: short, sharp and to the point. secretary azar, thank you. hope to see you back again soon. check the dow 30. what's the situation there? the majority are winners. they're in the green. look at that. the dow is now up 92 points. we'll take it. we'll be right back.
stuart: the company veritas farms makes moisturizing lotion and lip balm that contain cbd. okay. that's the chemical in marijuana that does not get you high. it's expanding its relationship with the grocery store chain kroger. come on in, alexander salgano, ceo of veritas farms. i've got a technical question to start with. how do you get the oil out of the plant? how do you -- what's the technical process of getting oil out of the hemp plant? >> sure. good morning, stuart. thank you for having me on. basically, we start -- we are more than just cbd. we are full spectrum oil
product. by that i mean if we start with the hemp plant, we grow it, we harvest it, then we dry it. from there, we take the leaves and the flowers and we run it through the extraction machine to produce the oil. stuart: what's the extraction machine? what's the extraction machine? >> it's an ethanol based extraction machine. stuart: okay. >> where we run the leaf. stuart: relatively simple process, easy to do? >> it's not simple but we over the years have been able to perfect it. stuart: lot of people say this cbd is just a passing fad. what do you respond to that? >> we don't believe that at all. if you look at what's happened over the past ten years, full spectrum oil products have been coming out and now the products are going into full retail mainstream, so based on that and what we have seen from our existing customer base where they are coming back month per month and buying our products, as you know, fads are short-term trends. we are seeing completely the
opposite on that. stuart: real fast, at the moment, the food and drug administration will not allow you to ingest cbd oil into food or drinks. you think that's going to change any time soon? >> obviously i can't speak, you know, for the fda and what they're looking to do. but we certainly believe that in the future, the fda will look at that and put a framework where we can go forward and move forward, a company like ours can do the right thing by what the fda -- stuart: you would absolutely love it because that would be a huge expansion for your business. >> absolutely. i know it would. stuart: thanks for being with us. we appreciate it, always. thank you, sir. thanks very much. >> thank you very much. stuart: got it. those lawyers at it again. they've made a fortune because of the americans with disabilities act. they are going after small businesses all across the country, slapping people with lawsuits. what a story. we're on it. i don't feel good about it, either. two rounds of debates.
stuart: lots of economic breaking as we speak. start with mortgage rates, ash. ashley: freddie mac. you know this is my big moment. came in this week unchanged at 3.7%. in fact we've seen this number stablized over the last couple months. what is it doing to the housing market? not as much as you think. a lot of millenials for instance, still can't get into the market. home prices above them. stuart: refi's strong, first-time buyers not so much. got it. the latest read on manufacturing just coming to us. deirdre bolton right there on the exchange.
tell me please? >> stuart, 51.25. that is slightly weaker than consensus. looking for reading of 52. investors, businesses, really use this as a gauge, one piece of the puzzle, anyway, how strong the economy is. the sectors that were moving before this came out. info tech communication and consumer staples are strongest. weakest ones, prior to the number, energy, real estate, industrials. more or less than pretty much the same. does not seem as if this particular slightly weaker-than-expected number, stuart is really moving the markets, at least from a sector perspective. stuart: bod line the reading is 51. that means we're not going into recession. next one is construction spending. not as important as mortgage rates. ashley: not a great number. fell sharply in june. we're expecting a slight gain of .3%. it fell .2%. it has been a tough go.
construction spending slowing down. stuart: okay. no change in mortgage rates. a drop in construction spending. ashley: yes. stuart: not much change in manufacturing. ashley: yes. stuart: that is what we got. look at the markets. three items of financial news, no change. 69 up for the dow jones industrial average. all right. now this. the also-rans are still the also-rans. after two rounds of debate none has broken through. the long shots, not really have in my opinion, no shot. biden, sanders, warren and harris. they will be the ones to fight it out. now it is very hard to see booker or mayor pete or klobuchar joining the front ranks. and the rest of the field is either looking for a future cabinet job or big speaking fees. i know it is early. but it seems to me it is down to those four. all of them came out of the senate. they are politicians. they don't have the executive
experience of a state governor, certainly not hands on experience of running a business, oh, no. democrats will have to choose how far left they want to go. it is an idealogical choice. warren, sanders, they're socialists. they have absolutely no time at all for capitalism. biden and harris have not signed up for the revolution, but when it comes to taxes, growing the economy and especially climate change they're not that far behind. look at the far left turn. join the debates. moderates struggle for impact. their argument were dismissed. john delaney, tim ryan, john hickenlooper pointed out eliminating private health insurance or ending border enforcement will not beat donald trump that was greeted with silence or boos. but when biden called for jailing, the jailing of health care executives, when kamala harris called wall street a bunch of crooks, there were loud cheers. whoa. now the struggle is on to raise
money. nobody gets into the next debates in early september unless they have at least 130,000 individual donors. that will thin and narrow the field and solidify, in my opinion, the biden, warren, sanders, harris leadership. that means that whom sorry the democrats choose to lead them, the 2020 election will be, capitalism versus socialism. prosperity versus no fossil fuels. no border control. no private health insurance. no economic liberty. gee, i wonder which way middle america will go? let's bring in kevin sheridan, former rnc spokesperson. welcome to the program. good to see you. >> good to see you. stuart: here is the obvious question, who out of biden, harris, warren, sanders do you think would be the easiest opponent for trump? >> after last night i think biden. there is real questions about biden's vitality and ability to get through the next 15 months,
much less four years after this. i think, i think he looks worse with more exposure. i would, right now i, he is still polling well. i would buy his stock and buy harris's, she will go back look at the tape, learn from her mistakes, get better. last night is as good as joe biden can be. i have seen hundreds of his speeches unfortunately. he was better than the first debate but this is as good as he gets. stuart: one should tread carefully around joe biden, his age, his ability, the way he comes across. will you concentrate on this? he did struggle a bit last night. he wasn't that sharp. is that what you're going to focus on running against joe biden? >> donald trump already, you know, signaled. that is what he is going to doi. i was questioning the "sleepy" joe nickname at first. but, you know, turns out it was
pretty prescient. it is kind of on point. he did not look like he had command of the facts. he was lost in his, in his statements, many times. the first debate he was very bad. kamala harris had a bad debate last night. i think she will get better. of the two socialists in the race, you know, one of them needs to get out before you know, to, i think it is probably warren at this point. i don't know how you ever get bernie out of a race. he has the bernie bros. he has the money. he has supporters. they are not going anywhere. it could be a brokered convention for all we know. stuart: we talked about the poll, 59% of women would not vote for president trump. they disapprove of his style and his demeanor and his language. how do you get around that? 59% of women, a pretty high proportion who opposed
president? >> the democrats path to victory will be to boost turnout to a point that you know, we haven't seen since 2018. possibly higher than that. in 2012, to get their, their base out to the vote. every democrat will have to vote. they will have to find some other voters that voted for barack obama, switch to donald trump. i don't see it with the messaging they have currently got they will eliminate entire industries. they will criminalize insurance. they will wipe out the fossil fuel industry. i don't see that as a broad, positive, optimistic agenda for america. stuart: to some degree dislike of the president's persona, very much liking prosperity and the system that we've got going now. which one wins? that is a delicate balance really, isn't it?
>> if they were smart they would nominate somebody, who i don't see in this field who can appeal to a large section of the country, that just wants to, you know, get back to some normalcy, whatever that is. doesn't want to deal with constant politics in your face all the time. i don't see any of these candidates doing that they're embracing all of the lessons of, we have to, you know, be more extreme with our policies. we have to ramp up the rhetoric every chance we get. how is that an alternative to what donald trump is going to be offering? and donald trump es going to be running on an excellent economy where we put americans back to work. you know, the world is largely at peace. i don't see the democrats vision right now as a winning formulation as they have got it. stuart: as they say, what not supposed to say in journalism, only time will tell. kevin, thanks for joining us. i'm sure we will see you soon. let's get back to your money, we're up 89 points from the
dow industrials. a modest comeback from yesterday's loss. market watcher rebecca wallser is with us. what do you think happens to the stock market if either biden, warren, bernie, or harris wins? >> it's a disaster. i was appalled by the lack of disaster t was impossible for warren to admit the middle class will have a tax cut. as a tax attorney, i can tell you that there will be a tax inreese. if you implement "medicare for all" everybody pays higher taxes. warren is a quasi-economist and bernie sanders, both of them taking over 1/6 of our entire economy on payments that will not pay the full cost of medical care is a disaster in the making, not to mention the fact that it will not cover what they want to cover people here illegally. the stock market, all the farm suit calls, health care stocks,
everything, stu, 1/6 of the government taking over what they already have running not efficient or well. stuart: after the quarter point rate cut was announced i want to know if we have a real solid rebound that takes us back to new highs? by the way the yield on the 10-year treasury dropped to 1.98%. that is dropping the market higher. do you think we get a big-time rebound back to new highs? >> i don't know if we get a big-time rebound. we have to wait to see tomorrow with the job numbers for july. bad news is good news. jerome powell was basically hawkish based on the expectations. people are now, we'll not get easy monetary policy as possible. that is a bad thing, even showing the economy was strong. i agree with you. the president wants more easy monetary policy, accommodative
monetary policy we'll need it if we don't get a china deal, stu. we kind of need later this year. stuart: personally in my opinion we will get a series of rate cuts from here on out. rebecca, thanks for joining us. >> thank you, stu. stuart: how about this one, a big number, 300,000, number of apprehensions on the rio grande border, 300,000 caught this calendar year, all-time high for that part of the border. we have the full story coming up for you. few months back, facebook's chief zuckerberg was the victim of a deep fake video. his image manipulated to make a completely false video of him speaking. this is a huge problem for businesses. some ceo's want to criminalize those deepfake videos. i don't know how you do it, but we have the story. check capital one, big data breach. more than 100 million people are affected. the feds are investigating if the amazon employee who is accused of stealing the data
>> just to clarify, would you decriminalize illegal border crossings? >> yes. the point is not about criminalization. that has given donald trump the tool to break families apart. to fix it is to decriminalize. that is the whole point. >> my immigration plan would also make sure that we put undocumented immigrants who haven't committed a serious crime on a pathway to citizenship. stuart: okay. those were democrats, just a couple of them, talking about immigration at the debate last night. separately we just learned that apprehensions in the rio grande valley area in texas, have topped 300,000 just this calendar year.
that is a record. congressman david kutoff, republican from tennessee, just returned from a trip to the border. congressman, did you see any children in cages? that was mentioned a lot last night? >> i did not see any children in cages. in fact, i was very impressed with the way our border patrol folks managed the situation. their morale, i didn't see any of the conditions that i have heard described in the media when i was in el paso earlier this week. stuart: only one candidate last night said that crossing, that illegal crossing of the border is a crime, only one. all the rest wanted to decriminalize crossing the border. if that were to happen, what would you think happens at the border? >> it would be total chaos. i told you, i have got so much respect for what our men and women in border protection do for us, but the fact is, they
don't, right now they don't have the support that they need from frankly, from congress and i would like to deploy resources so we have more men and women from the border. right now, stuart, it's a lower. i give president trump credit for that. as you remember last month, he threatened mexico with tariffs unless they stepped up. and the mexican authorities, the police, the military, they have stepped up their enforcement efforts, that migration has been thwarted somewhat, somewhat. so the question is, not if mexico is going to relent, but the question is, when, and we're going to see more migration across our border. stuart: last question, 30 seconds. do you really think that congress will grant more resources to border patrol because i don't? >> well, we should. now in this congress, stuart, it's tough, because of course
nancy pelosi controls the house. i am interested, senator lindsey graham today, in the judiciary committee, is going to consider an immigration bill that may redefine asylum and how asylum is granted. i would like to see that bill progress. i think that is the real key to try to control the stem of immigration. stuart: got it. thanks for revealing it to us, congressman. we appreciate that. i was not herbert what was going on there. david kustoff, tennessee, thanks for joining us. >> thank you so much. stuart: sure thing of the department of homeland security issued a security alert for? small planes. they warn the planes could be targeted by hackers. we have a former fbi cyber expert coming up later this hour on that story. >> americans with disabilities act, perfect example after good intentioned law, in my opinion gone bad. it was supposed to help people with disabilities but it has
turned into a business killer, a money grab for lawyers. full details coming up. ♪ when i walked through a snowstorm for a cigarette, that's when i knew i had to quit. for real this time. that's why i'm using nicorette. only nicorette gum has patented dual-coated technology for great taste. plus intense craving relief. every great why, needs a great how.
i think that is it. let's get to an issue affecting small business, seriously affecting them. the number of lawsuits under the americans with disability act rising constantly. grady trimble back with us for his third appearance. i'm making a joke here but this is a serious subject. reporter: it is. we're talking about the ada, businesses, those open to the public can't discriminate against people with disabilities that number of lawsuits has steadily been on the rise since 2014. take a look at this graphic. we're set to top 11,000 this year, which is the most ever according to a law firm in chicago. can you guess which state has the most of these? stuart: california? >> you are exactly right. followed by? new york. no surprise, florida, it drops off after that with these toward states f we keep this pace it will be another record-breaking year. the law firm says part of the problem is serial plaintiffs are suing over and over and over
again over minor infractions. of the things like the toilet paper is too far away from the toilet or the mirror in a bathroom or at a hotel is too high. so, it is people filing several lawsuits. it is causing that number to just keep rising. stuart: this is a terrible thing for small businesses to be hit with a lawsuit like that. that can put you out of business? >> it could be a simple fix. instead, it is a lawsuit. stuart: grady, for a third appearance, that wasn't bad at all. >> happy to be here. ashley: waiting for number four. stuart: oh, this goes right to my heart. home equity loans may be restricted. tell me? ashley: well the amount of money you can take out, basically what you do, you take out a new mortgage for more than the house is worth. you pocket the difference in cash. up until now you could take up to 85% of the value of the home. that is dropping down to 80%. the reason being what happens in this situation, if home prices suddenly become depressed, which we have seen before, you have a lot of people who are upside down on the new mortgage. they owe more than the house is
worth. right now the estimate is $1.3 trillion are at risk. starting to sound like 2018 a little bit. they're concerned. they say we need to stop the federal exposure to defaults. in other words, as we know in the end, taxpayers ended up having to bail some of these people out. the bottom line, they're trying to pull in the amount of money people try to get out of their house. stuart: that is an interesting story. ashley: exposure. stuart: risk in the future. ashley: right. stuart: several big-name retailers facing a patent infringement lawsuit over popular vintage style led light bulbs. amazon, walmart, ikea, they're all in trouble about this we'll tell you why they are in trouble. how about this one? new york mayor de blasio going right after the wealthy at last night's debate. he says he wants to quote, tax the hell out of the wealthy. i regret to say i'm going to play it for you after this. ♪
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♪♪ ♪♪ ♪ stuart: the reason i like this, this is their first huge megahit. it had that lively attractive get up and go great harmony. ashley: in early '60s. stuart: it was a great decade. ashley: swinging. stuart: long time ago. let's move on. the bang of england, we're staying on a brit in theme. the bank of england warning about a possible recession. ashley, this has to be about brexit. ashley: sir, you are correct.
boris johnson take as big part, he has taken a strong stand, we're out, october 31st, plan or no plan. how he will do that, we'll see. those comments pushed the pound into a two-year low. the bank of england on 9-0 said we'll not increase rates. businesses in uk has fallen off and trade tensions, slowing economy. the uk could be in negative territory when it comes to growth by end of next year. the thing has been all gloom and doom. not a surprise. 33% chance of recession within the next six months. stuart: real fast, that boris johnson put up a clock? ashley: out of his own pocket, he paid 500 pounds, that is expensive clock, 600 bucks, for a digital clock on his office wall, ticking down to october 31st. stuart: that is a classic political move. ashley: yeah. stuart: just like donald trump. trump would do something like that that.
ashley: he would. stuart: here we go, tweets to the president. relates to the debates. china, iran, other foreign countries are looking at the democrat candidates, drooling over the small prospect that at the could be dealing with them in the not-too-distant future. they would rip off our beloved usa like never before. with president trump no way, exclamation point. we're bounding back, not in full, i got that, not in full, but we're up 170 point for the dow industrials. that puts us up above 27,000. dow component, verizon is adding wireless customers. doesn't matter its profit was down, if you add customers, the stock goes up. it is up 1%. qualcomm however, issued a not so rosy forecast as we told you many times. that stock is down nearly 4%. quite a drop there. prudential financial, profit falling short. weakness in the life insurance
and annuities businesses. multiple firms cutting the price target. down it goes some 8%. that is quite a drop for a big many company like that. look at this, the 10-year treasury yields 1.98%. below 2%, the first time since july 5th. that is important. that is surely one reason why the dow is going up. with a lot of foreign money coming in to buy treasury bonds and stocks. stuart: i want to get back to last night's debate i do. new york city mayor de blasio took a shot at the wealthy. >> if we beat donald trump, this has to be the party that stands for something. this has to be the party for labor unions. this has to be the party of universal health care. this has to be a party not afraid to say out loud, we'll tex the hell out of the wealthy. stuart. stuart: does that make you feel better your honor? the gentleman on the screen is a
ceo that run as merchant bank, don't. >> you yes, that's correct. stuart: what do you make of our mayor of new york city? he says tax the hell out of your customers. >> that's true. why is he running? has anyone answered that? you saw tv, warren and sanders are not left enough. stuart: i can tell you why he is running. >> yes? stuart: after he is done being mayor of new york, wants a job in the cabinet and or future administration or write a book or go on the speaking circuit. >> that is the way to get a new job, run for president. stuart: what do you make of the universe call call for the democrats, tax the rich, tax the wealthy,. >> it is empty rhetoric. at this point people are trying to outflank each other. he is trying to go left as possibles, right now he hasn't qualified for the third debate. you have to qualify for the third debate so you can be on tv for a long time. stuart: they would tax the rich. taxes would go up. >> on wealthiest americans they
would. in new york city if you make six figures you are taxed 60%. one of the candidates getting a lot of attention is andrew yang. one of his plans, let's give you money. he is right, autonation affected jobs, rather than vocational schooling, he says everyone have some money. so that is a very odd philosophy in my mind. there are steps in this administration are taking to improve that. but when they're asked about those, whether policy on china or the new nafta, usmca crickets. stuart: are you a trump supporter? >> i support a lot of what he is doing with the economy, certainly. i'm kind of just calling balls and strikes as i see them. i like what he has done with china. i like what he did with the new nafta. we were in detroit, michigan last night. that is a place he won, democrats were shocked b you would have thought trade would be front and center. stuart: nobody mentioned it. but not much. >> tried to critique it here and there, reality if a democrat
opposed this during the obama administration everyone would behind it. it improves nafta drastically for american workers. stuart: you're a merchant banker. >> yes. stuart: you're in the middle of this trade fight if you want to call it that. right in the middle usmca right in the middle of europe versus america. >> for sure. stuart: is it absolutely vital for our economy we get a china trade deal, usmca and agreement with europeans? >> 100% and i think that is what this administration is laser focused doing, obviously trying to get it done before the election. obviously even fed policy becomes political at this point t would be great to get bipartisan solutions on china. the democrats fundamentally agree with these policies. we need to be hard on china. stuart: that is the one area, they don't say much about it, but leading democrat do want to go after china. they do. >> absolutely. it's a bipartisan issue. stuart: you wouldn't know it, would you? >> if you didn't watch last
night you wouldn't. it is all about the rhetoric we started the conversation with. how do we outflank each other and attack the president. substantively this is a very good deal, it improves on nafta. i encourage both houses to pass it, get the legislation done. stuart: fast and please. >> it would be good for our economy and we wouldn't have to use monetary policy. stuart: i have to break in for a second with another trump tweet as you might expect. here it is. the budget deal is a phenomenal for our great military and our vets, jobs, jobs, jobs. two year deal gets us past for the election. go for it republicans. there is always plenty of time to cut. >> it's a bit tongue in cheek. that is the cut part where we need a serious conversation the deficit is exploding. >> yes. >> the debt increasing. they're kicking the can down the road until after the election. we know the way the game is played. we should all be worried about the exploding debt on the personal level, on the corporate level. obviously at our government level. stuart: talking about it nor
decades. >> don't forget the balanced budget in the late '90s. remember those days? stuart: i was around. >> i was too. during that period we had a balanced budget. deficits used to matter. at some point they stopped mattering. we should be careful if they don't you can pay for everything. stuart: you better be careful, if you're not careful you would be back on the program. real pleasure. >> appreciate it. stuart: something a little different for you. by the way the dow is up nearly 200 points. big name retailers, amazon, target, walmart, bed, bath & beyond, being hit with patent lawsuit over vintage led light bullps. ashley: the glowing filaments, sometimes called edison light bulbs. you name it. it was a patent put together by researchers at the university of california santa barbara. i thought they just surfed at that university.
apparently they do other things too. sales of these particular light bulbs are expected to top one billion dollars, but, no one got permission to sell them according to this lawsuit. in fact there are five separate ones, lawsuits brought against each retailer saying wait a minute, we never fav permission for these things to be sold. so there you go. it is an interesting story. stuart: check with your patent lawyer before you do anything. ashley: you think someone would have done that but apparently not. stuart: won't affect the stocks for sure. china trade talks set to continue next month, september, following two days of negotiations in shanghai this week. what i want to know, are americans tired of this trade dispute? we have a guest who crunched the numbers for us. the man who does a lot of research, who is very good at this. he is on the show shortly. atari, do you remember pong,ing frommer? atari is doing a comeback launching a brand new videogame console. question, can atari compete with
the flashy graphics with big names like "fortnite." can it attract people who never heard of at -- atari? the ceo will be on next hour. ♪ but dad, you've got allstate. with accident forgiveness they guarantee your rates won't go up just because of an accident. smart kid. indeed. are you in good hands?
terminix. defenders of home. stuart: look at this, the march south for interest rates continues. 1.96% on the 10-year treasury. that's very important because that shows you a ton of foreign money is pouring into america to take advantage of even that small yield because if you put your money into europe or japan you don't get any yield at all. it's a negative interest rate over there. so the money comes here. down to 1.96 on the 10-year. we're up to 200 points up on the
dow industrials. that is not the only factor but a lot of foreign money is pouring into america to buy a lot of american stocks and bonds. we're up almost 200 points. a virtual complete recovery from yesterday's selloff. "the wall street journal" says the they are investigating whether paige thompson, the former employee charged with stealing data from capital one, did she target other companies like an italian bank or ford motor company? that is what the journalist is suggesting. we have a former fbi special agent. scott, first of all the beg picture, i can't see anyway that you can stop a rogue employee deep inside the company from exposing its data. i don't see any defense against that, do you? >> it is very challenging. you know, we are focusing so much on the external threats. stuart: yeah. >> when i heard there was a young lady from seattle who was responsible, it didn't make sense at first because we're so
busy, we're focusing on transnational organized crime. stuart: yeah. we look at the security of the cloud, we look at it in terms of can it be breached from outside. that is what you're talking about. well in fact in this case it looks like it was breached from the inside. can you change the protocals within, so that some employees cannot get access to that information? if they do, you know about it? >> well, we don't know for sure all the details of what exactly happened. it appeared to be a misconfigured firewall. these large companies are spending a lot of money on penetration testing. they should have been able to catch that before it happened. that's the surprising thing here. stuart: "the wall street journal" is suggesting that it is possible that page thompson released information to other companies, about other companies? >> yeah, it looked like from my experience, it looked like she wasn't there for the financial gain. she was an expert on information
technology. she had the ability to do this and just from reading everything it looked like she was crying out for attention because it appears that she sent them information saying, she had this and then she went online and she bragged about it. stuart: yeah. she made i easy to be caught. maybe other was do the same. i have to ask you this one. homeland security warns about small planes could be vulnerable to hackers. are they worried that cyber criminals would actually try to bring down a plane? is that the concern? >> that is absolutely true. today the critical infrastructure is the airplanes, the cars, everything that we deal with right now as far as technology is concerned, the bad guys can get access remotely. if a large company like capital one couldn't keep a firewall secure what is going to happen if someone else with her
experience, which wasn't really highly sophisticated, is able to get into a power grid, a 9/11, a 911 center. that is what the companies and infrastructure has to pay attention to. stuart: do you think this is pointless worry? >> no, i don't think it is pointless worry. the issues are getting worse. we're seeing a lot of financial, the losses keep adding up. companies are spending more money on the problem. the problem continues to get worse because companies and individuals are not doing the basics and the fundamentals. stuart: scott augenbaum, i think i got that right, just call you scott. see you again soon, sir, thank you. >> thank you. stuart: deepfake videos where a computer manipulates a video of a real person makes them do something they absolutely never said, zuckerberg targeted recently. i have no idea what we can do about this.
stuart: want to see the stock market go up? lower interest rates will do it for you. we're up 233 points for the dow. look at this, the yield on the 10-year treasury keeps just sinking. now it is 1.95%. the united states looks like the only game in town. money pouring into our stocks and our treasury bonds. love it. trade talks with china, set to resume next month. now yesterday the white house released a statement calling the latest round of talks, productive. joining us robert moran with the brunswick group. this is the guy, if you don't mind me referring to you like that, who does a lot of research for us and it is all good stuff. you have some new numbers what americans think about china trade, is that correct? tell us what have you got? >> that's right. there is actually a lot of public opinion data on this now. 62% of americans do believe that china is an unfair trader. and we have a lot of data on that. where it starts to get complex
is, american attitudes on tariffs themselves. a majority of americans say they believe that prices have increased because of tariffs but that's a soft number and there's a lot of open concern about whether whether tariffs will increase prices on them at the store or not. i think that is very much open. but the president has significantly changed public opinion about china and chinese companies. we have tracking data from multiple sources. he is essentially dropped confidence and trust in chinese companies by about 12 points. stuart: ouch! that is a significant impact. >> yep. stuart: very interesting idea on public opinion vis-a-vis china trade. i will get to this one too. you have research on deepfake videos, you know when a computer make as video after public figure saying something which they absolutely never did.
now, the zuckerberg is the principle example on this one. we'll not run the video. we think it is unethical an frankly we can't tell the difference. now according to your research, look at this 87% see this kind of disinformation as a serious issue. tell me more. >> so this is a extremely serious issue and one that news media like yourself will cover extensively when it starts to happen. what will happen is that criminals and nation states will essentially fake, create fake videos of ceo's, of analysts, of the federal reserve members, saying things they didn't say in order to tank the market or in order to disadvantage an american corporation. this will happen. darpa is already trying to develop technology that would be able to distinguish between fake and real videos. the problem is only six -- 16%
of american investors are aware this technology exists, and over half say that they could easily fall prey to this kind of a misleading information. so this is going to be a huge issue. stuart: i think there was an example recently where someone mimicked the voice of a ceo, made it perfect voice imitation, called up the chief financial officer of that company and said, in the mimicked voice, hey, transfer money over here. i think there has been a case that surfaced on that recently. >> there have been a number of interesting cases related to this. deepfake a.i. and deepfake videos are available in apps people can get right now -- stuart: really? i can do this? >> there is a app called fake app. there is another software package called deep face lab. this is used in emerging markets on the political side in order to destablize different
political opponents. our concern and focus is what this could do to markets and american corporations. of the. stuart: absolutely. >> this is about how you authenticate information. this is going to be a very difficult one. you might have more structured event journalists clearly know happen, there is no way that communication could be misconstrued. the challenge here, imagine a fraudster launching multiple versions of a deepfake video? they're not in part, they want to deceive but in another part they're fine with just annihilating the truth, making you question the reality that you see. this is another challenge, i think authoritarian regimes are likely to use this against the west, but, our concern is mostly on the business side. stuart: sure. >> what this could do. stuart: the immediate problem is how do you authenticate video? >> right. stuart: you said darn parks the defense people, the research people are working on this, right? >> there are two things. the u.s. government is working
via darpa and i believe one of the universities in colorado is working on this with them. the thing they need to do, they need to create a wide range of fakes to try to teach the computer to distinguish between fake and real. then in congress there are a number of bills be dropped on this. ben sasse in the senate and rob portman, both have bills and in the house there is at least one bill. most of these are bipartisan bills because people see the danger to the markets really. stuart: out of time. you always bring us good stuff. that's fascinating. robert moran, thank you very much indeed, sir. see you soon. promise. thank you. this week's debates hosted by cnn, in my opinion, classic example of what has gone wrong with network. the debates were a mess in every sense of the word. my opinion. you will have my take on that, my colleague, lou dobbs, i used to work with him at cnn he is on the show with me.
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stuart: what a mess. in every sense of the word. cnn. it grieves me to say it because i, along with my colleagues, used to work there. all of us lament the sad decline of the network that we helped to build. this week's debates hosted by cnn were a classic example of what's gone wrong. i'll skip over the elementary production mistakes and go right at it. cnn has become a democrat propaganda machine. they are an opinion network, all news events are perverted to
reflect cnn's vigorously anti-trump opinions. they want the democrats to beat him and their bias was written all over those two debates. did you notice that the mueller report was never mentioned in the first debate? that's because mueller is not a good subject for democrats these days and cnn wanted to protect the candidates from embarrassment. maybe they were protecting themselves from embarrassment because cnn has spent the last two years endlessly covering what they hoped would be the trump presidency's demise, and the booming economy, hardly mentioned. that's deliberate, too. why ask about a trump strong point? then of course, there's don lemon, who was one of the moderators. how any network could pick a known trump hater to ask questions of trump's opponents i really don't know. he called the president a bigot right out there. as if it was a statement of fact. how's that for objective journalism? they can't retreat now. they're too deep into trump hatred, too deep into political
bias. they're not going to change course before the election. they hate trump so much they will probably double down. okay, guys, go for your life. but their problem is that viewers are deserting. cnn's ratings have crashed and after their weak and biased staging of the debates, i don't see viewers coming back. i'm going to close it with this. it's not the political bias that got them, it's not the weakness of their on-air talent. it's the contempt, contempt for the president that knows no bounds. cnn can't get past it. they were once labeled cnn the clinton news network. they never got over her loss. the third hour of "varney & company" with a star guest, lou dobbs, is about to begin. stuart: yes, as promised i will repeat this. oh, that's an old photo.
that's lou on the right, stu on the left. okay. ashley: lou looks surprised. stuart: i had hair then. look at that. lou is just outside watching this. i don't know what he thinks about that picture. he's going to join me momentarily to talk all things cnn. the two of us, actually lou more than i, really started and built that network and that is a fact. let's get to money, shall we? we've got a very nice rebound for stocks after yesterday's selloff. i don't care about the jobs report tomorrow. i don't think that's a factor in today's market. what's going on now is lower interest rates and that, i think, is why we've got a huge rebound, nearly 300 points up. donald luskin joins us now, market watcher. look, yesterday afternoon, during the fed event, i said okay, you got a quarter point down now, but you're going to get a lot more rate cuts still to come because of what the europeans and the japanese are doing. are you with me? you think that rates are going
to keep going down, and that's why this market's up? >> this market is only up to recovering, what, three quarters of its losses, experienced once jerome powell started opening his big mouth and saying everything wrong? yeah, well, this rally's going to have to do better than it has so far just to make up for his mistakes. stuart: wait a second. wait a second. we were down 333 yesterday. now we're back up 271. i would call that a rebound. >> i'm just saying we're still below where we were when powell opened his foul mouth. and he's going to have to do some serious walking back of the dumb stuff that he just couldn't stop saying in that press conference. you know, he was asked the very first question he was asked was on some subject, i can't remember what it was. instead he was just like a presidential candidate at the debate. instead of answering the question that was asked he said some whole other thing. he said well, this isn't the beginning of an easing cycle,
this is just a mid-cycle adjustment. and then people were so shocked when he said that, three more questioners asked him well, wait a second, did you really mean that? he repeated it. no, wait, did you really mean that? then he repeated it. then he got peevish about it. he said oh, i didn't say one and done, i didn't say anything like that. then at the next questioning, he said well, you know, the next move may be a rate hike, who knows. he obviously doesn't know. i mean, worst trump appointment ever. i loved your last guest, by the way, because as i was watching him, i was praying that jerome powell is actually a deepfake video, not an actual fed chair. stuart: let me wrap it up with this. while we're talking interest rates, do you agree with me that there's a series of rate cuts to come from the federal reserve? >> yes. there didn't have to be, because we should have done 50 yesterday but we only did 25, so things are going to get worse before they get better and there will be more. mark my words.
stuart: now, i want you to talk about the debate last night. i think there are four front-runners. i don't think the rest can catch them. that would be warren, sanders, biden and harris. i think those four are out front now. if one of them, any one of those four gets elected, what happens to the stock market? >> well, just sell everything. but the good news is that it's just simply never going to happen. is trump the luckiest man in the world or what, okay. he's a billionaire, he's the president, he's had three smoking hot wives and now facing re-election, he got to draw 24 potential opponents, you would think out of 24 draws, at least one of them might be able to beat him. he's won 24 for 24. these so-called front-runners are competing with each other for the privilege of losing to trump. this is a hopeless, hopeless task for that crew of incompetents we have seen over
the last two nights. even cnn couldn't save their bacon. stuart: i'm going to end it. i have to ask you to be a little more cautious in your choice of words. >> i will try next time. stuart: no, no, your reference to the chairman of the federal reserve and his mouth and your reference to donald trump's wives, you know, i think we can soften that a little bit. donald luskin, see you again soon. thanks very much. check that market. the rebound continues, not quite as strong as it had been. now we're up 246 points. i'll take it. energy stocks, look at them on the board there. mostly lower, kind of a mixed bag there. this is because of the price of oil. price of oil is way down today. show it to me, please. we're at $56 a barrel. that's a loss of almost 3%. i hope you heard my take, top of the hour. i called the cnn democratic debates a total mess. what did lou dobbs say about this? he's coming up in just a moment as the third hour rolls on.
go back and do -- take back all the things that trump took away. if you agree with me, go to joe 30330 and help me in this fight. >> we are now paying $3 billion -- trillion a year for health care in america. over the next ten years it's probably going to be $6 trillion. we must act. >> it's time that we separate employers from the kind of health care people get and under my plan, we do that. >> this has to be the party that's not afraid to say out loud we're going to tax the hell out of the wealthy. >> the problem is that this current president is continuing
to betray us. we were supposed to be going after al qaeda but over years now, not only have we not gone after al qaeda, who is stronger today than they were in 9/11, our president is supporting al qaeda. stuart: we thought we would bring you a taste of last night. what i really want to talk to now with lou dobbs is the state of cnn. i think it's deplorable. this man on your screens, that's lou dobbs, he started the business news department at cnn and i think you are the father of business news or the grandfather. lou: i knew you couldn't resist that. for crying out loud, may be great-grandfather. don't forget the fellow who was there with me at the time. a fellow by the name of varney. stuart is being modest. he and myron candell started that department, 40% of the revenue of the network. stuart: what went wrong? lou: we left. we left.
stuart: that's not it. what went wrong with them? lou: they made a turn to the left. you know ted turner had made that choice, he was in a committed relationship with jane fonda. it started in the early '90s. it moved forward and finally, they thought it was just terrific when i would criticize george w. bush and his policies. barack obama's elected, i'm still criticizing the president but they didn't think that was so nifty. and that's when it became a political decision. stuart: it -- lou: their management is absolutely incompetent. remember a fellow by the name of roger ailes who built this place. he used to refer to the then-president, by the way, this would have applied to every one of the presidents of cnn who preceded him with the exception of reinhardt and scheinfeld, he called it decline because the
ratings kept going down and down. it continues to this day. this is the continuation of a decades-long trend. stuart: my premise of my editorial top of the hour is not so much political bias has done them in, it's more that they just can't get over their trump derangement syndrome. they can't get over that she lost. lou: i think there's also -- i'm not sure i agree with you on that. by the way, i thought your column was terrific. but i believe that they consider themselves allied warriors, complicit with the radical dems of the democratic party, the american left, in trying to stop the trump candidacy when he was running, and then to overthrow this presidency. this is, the president refers to it as a hoax. greg jarrett wrote a book about the hoax. but this is not a hoax. this was an attempt to overthrow the president of the united states. stuart: you think cnn was involved in it? lou: i think they consider
themselves allies and have been complicit along with msnbc, "new york times," cbs news. i'm not suggesting they are certainly by no means alone. but they don't have the talent nor the capacity on the air to be formidable in their ideological and political complicity. as a matter of fact, they are a bit clownish about it. stuart: i think we have done them down enough. shall we move on to jay powell and the federal reserve. lou: speaking of clowns. stuart: that's a little strong. lou: it was a segue. when you watch them, by the way, i love some of the people even on this network who are trying to suggest there was disappointment at the 25 basis point cut. at 2:00, the fed announces a 25 basis point cut, right, in the discount rate. nothing happens. basically nothing. then at 36 after the hour when powell is in front of the
cameras in the press conference, he starts waxing about a mid-cycle adjustment as if this is a one-off and by the way, people are looking at all of their lexicons of the economy, mid-cycle adjustment, whatever that is. and next thing we're watching the dow sell off almost 400 points. i'm telling you, this fed is in real trouble because this chairman, again, president trump is being proved right, he is not capable of communicating intelligently and effectively about fed policy. and he reversed himself twice in the course of five minutes as he tried to make good as everybody was handing him papers saying you just got the market -- stuart: he said this is not the beginning of a long series of cuts. i disagree. i think it is. lou: what happened to the fed being data-sensitive and adaptive to the economy as it
changes? the intelligent posture. stuart: and reacting to what the europeans and japanese are doing with negative interest rates. lou: negative interest rates as if we can ignore it. stuart: you can't. the money flows into the dollar, the dollar goes straight up, changes our trading partnerships, changes our economy. you got to do something about it. we've got to follow the europeans. lou: i love the references to trade as an uncertainty that the fed is dealing with. oh, really? they can't deal with the basic economy, let alone trade. stuart: would you abolish the fed? lou: would i abolish the fed? i think i probably would certainly consider that. stuart: no central bank? lou: think about this. a central bank, what is its requirement? to establish reserves, to carry out open market operations, to preserve price stability. that can be achieved in a number of ways. this is the brainchild of woodrow wilson's, you know, like
so many of his -- stuart: not a big fan of woodrow wilson, are you? lou: in no way a fan of a bigot and a left winger. stuart: normally we have to wait until 7:00 at night to get a little fire out of dobbs, but i brought you on at 11:00 in the morning, eight hours prior. lou: i'm like your trained sea lion. stuart: careful, lou. i can see the graphic now. lou, thank you very much for coming in this morning. we do appreciate it. see you soon. i think we should check the price of gold. there's a market that's really moving and it's way the devil down, i believe. yes. not as bad as i thought. down 11 bucks. how about bitcoin? where's that this morning? still around ten grand? $9,989. okay. the real big moving market right now is treasury bonds. the yield on the ten-year treasury, now down to 1.95%. there you go.
the dow's up 250. coming up, we will be joined by the ceo of atari. i want to know what they are doing to stay relevant these days. they've got a new console coming. you think millenials will buy that, having never, ever heard of atari? we shall see. speaking of video games, what's this? ashley: one man. stuart: typo there. one man found an unopened nintendo game from 1987. a nostalgic jackpot. we will tell you which game. wait until you hear how much it might be worth. the question is, how much would you pay to own an original nintendo game still in the package? my answer, not much. ashley: five bucks. ♪ no matter what i wore, i worried someone might see
here's what happened. scott amos was home in reno visiting his mother for mother's day. he goes up to the attic, she says clean out some stuff, and he finds this game. no one in the house remembers purchasing it but the date of the game release was december 8th, 1988. that's how old it is. it was unopened. scott doesn't remember having it. the mom doesn't remember purchasing it. it sold for a little more than $38 then, that would be about $80 now. it's sort of a piece of history, if you will, in that condition. yeah, they can get 10,000 bucks for it. stuart: i never heard of the game. jackie: me either. i did play nintendo. ashley: oh, yeah. stuart: what was that -- ashley: mario brothers. stuart: if that had been an unopened mario game, it would be worth more than ten grand. who knows. coming up, we will show it to you right now. the trailer for martin
scorsese's new film "the irishman." they have used visual effects technology to make the actors look younger. i want it. i want it now. good news for the streaming companies. get this. good news for them. cord cutting getting worse. in fact, more than a million people ditched cable or satellite tv in the last three months. one analyst calls it a bloodbath. that is good news for streamers. is this why facebook is getting into streaming? they may be releasing their own streaming device. we have the sales on it next. ♪ my body is truly powerful. i have the power to lower my blood sugar and a1c. because i can still make my own insulin. and trulicity activates my body to release it
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stuart: all right. it is a rally, a significant rebound from yesterday's loss. now we're up 272. most of the dow 30 are in the green. that means they are up, and interest rates continue to fall. we're at 1.95% on the ten-year treasury. that's one of the big reasons why the dow is up this morning. we have reports that facebook may release a new streaming device this fall. do you know anything more about it? ashley: it's supposed to combine a camera for video chat, kind of
another version of the device it has right now but also possibly some streaming apps. they say they have been talking to media companies such as netflix and some of the others, you know, to provide content for it. comes with its own remote control. this was first reported last year and was supposed to come out this spring, didn't. it may come out in october but the general report is they may back off of this. they are just testing it out, seeing what type of content they can get. interesting they are trying to get into this space. roku has done very well. jackie: i don't think anybody needs another one of these devices. there are so many ways to get the content you need, the facebook device seems -- stuart: i haven't got any devices. jackie: we know you don't. stuart: this is good news for streamers. cable and satellite providers saw a record number of cord cutters. how many cut the cord in the second quarter? jackie: more than a million. 1.25 million between the likes of comcast, at & t and charter.
that's reported so far this quarter. analysts are describing it literally as bloodshed. we have discussed cord cutting on this show. netflix even had a bad quarter because it lost subscribers. it's all about original content, how people are viewing the content and just to point out obviously netflix isn't one of the corded services but it shows how everybody is fighting for share here and those cord servicers are now trying to do their own streaming services to get users that way. you wonder if the strategy is going to work. part of what i read is there is so much content out there and so much competition, people can't possibly consume it all. there is 24 hours in a day. stuart: and sort it all out. if you end it with a bunch of streaming services you will probably pay more than your cable service in the first place. jackie: you do. stuart: just give me live sports, okay? english premier league soccer begins again on august 10th. that's what i want. here's something else i want. first, look at this. the trailer for martin scorsese's "the irishman."
joe pesci, robert de niro, they are in it but have technology to make them younger. ashley: this digital effect makes them look a lot younger. stuart: i want it. ashley: you want it? stuart: i want it. ashley: this is an epic gangster thriller. scorsese is the director. i can't wait for this. it spans a lot of time of american history. they do apparently make them look much younger, the major stars. we got this clip, as you can see, lots of action but not one that shows how they may look younger. if it's really good, maybe we can have it here at fox. stuart: i'll buy it myself. ashley: okay. all right. there you go. stuart: okay. there's a development at amazon. i think this is really interesting. they are launching a personal shopping service. jackie, we have chosen you to tell us about it. jackie: what they are doing is similar to what we have seen from runway, stitch fix, other companies like that. you will subscribe to the
service, $4.99 a month. stuart: on top of your prime membership. jackie: on top of your prime membership. you will get eight pieces of clothing. they ask your size, your preferences, your budget, what kind of style you have, and they sort of preselect these items for you that you can see before they are sent to you so if you have any issues or you know you don't want something, you can stop it straight away. people can try them on in the comfort and privacy of their own home. they keep what they want, send back what they don't, and they pay for that portion that they kept. this is becoming really popular. people do not like going out to stores and trying on clothes the old-fashioned way. it just kind of goes to show, we are doing everything from our devices now. stuart: do you have a personal stylist? jackie: you have a stylist who gets to know you digitally and is hand-picking pieces for you. stuart: five bucks a month on top of your prime membership gets you eight pieces of clothing per month, take what you like. jackie: right.
the preview gives you a sense of what's coming. you are probably going to like it. stuart: i think that could work for me. i need work. let's get to this. the feud between president trump and elijah cummings over baltimore, well, it continues. now this. president trump has tweeted this old video of congressman cummings bashing baltimore. watch this. >> this morning, i left my community of baltimore, a drug infested area where a lot of the drugs that we're talking about today have already taken the lives of so many children. stuart: okay. that was back then. this is now. "wall street journal" dan heninger has a piece today called "the trump-cummings brawl." what's your conclusion? >> we need a reality check, stuart. they are trying to argue whether
donald trump is a racist for having attacked elijah cummings over baltimore. look, baltimore was one of the cities back in the 1960s that went up in flames during race riots. there were over 150 cities had these incredible riots in the 1960s which destroyed neighborhoods. new york, chicago, los angeles, kansas city, memphis, boston. in the 55 years since the passage of the civil rights act of 1964, virtually all of these cities have been in the control of the democratic party. democratic mayors. 55 years later, fast forward to baltimore and all the rest of these cities, the schools are failing the black children in those cities, public housing is falling apart, the most recent fbi statistics indicate that virtually all these cities are still the ten most violent cities in america. that i would describe as a race if ist failure of political policy and the democrats have been in
control of that for five decades. stuart: this has given president trump a real issue to carry through to the 2020 elections, as he said in 2016 to black voters, what have you got to lose. >> yeah. well, i think he should be going into those communities as part of his political campaign over the next 15 months. he should go to baltimore. he's going to be in cleveland tonight. he should go to chicago. certainly he's not going to carry these states but he should make this argument a central issue in the campaign. people living in neighborhoods like the ones elijah cummings represents in baltimore have been suffering, generation after generation. i think donald trump is just the guy to go in there and speak truth to these communities. stuart: let me talk about last night's debate, the democrat debate on cnn. give me your take-away, the main thing you brought out of that debate. >> well, the main thing i took away was you've got three top tier candidates now. joe biden, elizabeth warren and bernie sanders.
stuart: kamala harris. >> i think she faded last night. she had a lot of face time in k she hit it out of the park. i'm saying it's these three. joe biden i thought did a fine job last night but the question is, does he have enough juice to carry the campaign against donald trump. the democrats are arguing he doesn't and that's why they had to nominate elizabeth warren. if they do, i agree with tim ryan, they will lose 48 states. stuart: do you think joe biden has the juice, as you put it, i'm interpreting that as the energy, the focus, the dynamism that's required? do you think he's got it? >> i really don't. to be a presidential candidate now, it is so arduous, so hard to do this for 15 years. if he gets the nomination next summer and then stumbles in september or october, the american people will see it and trump will waltz into the white house. it's a big risk for the
democra democrats. stuart: you can see it all on television. television exposes a lot which some of us don't like to be exposed but nonetheless, it exposes a lot. a facial expression, a turn at the wrong moment, a wait for two seconds before you answer dramatically. that counts on tv. >> and you get marked down these days for doing that sort of thing. he did have a couple stumbles last night and he makes a big stumble, this is joe biden's history. he calls himself the gaffe master. you make a big gaffe in a debate with donald trump next september or october, and the democrats are finished. but again, bernie and elizabeth warren really, they are too far left to get elected. they really are. i think that was one of the messages of the debate last night, other than biden and perhaps senator bennet, those were all george mcgoverns up on that stage. the democrat who got killed by richard nixon in 1972. every single one of them. stuart: wonder how many of our viewers remember mcgovern. i do, even back then.
thanks very much, dan. see you again soon. remember the old atari 2600 video game console? i do. it was a really big hit back in the very early 1980s. you could play frogger and pong, missile command, right on your home tv. well, atari wants to do it again. they are getting ready to release a brand new console. i want to know can they get young gamers hooked -- well, they are hooked on flashy graphics. can they buy a retro game? atari's ceo coming up next. we are also going to touch on a very hot topic, basketball player lebron james. he's been spotted at his son's basketball games and they are criticizing him for trying to steal the spotlight. one of the critics, fox sports one jason whitlock is on the show momentarily. we will give him time to sound off. ♪ ♪
all right brad, once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route. obviously. retirement, we're going with a long-term play. makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know? studying my playbook? yeah, actually. on a scale of one to five? one to five? it's more like five million. there's everything from happy to extremely happy. there's also angry. i'm really angry clive! actually, really angry. thank you. but what if your business could understand what your customers are feeling... and then do something about it. turn problems into opportunities. thanks drone. customers into fanatics change the whole experience. alright who wants to go again?
stuart: look, we're up almost 300 points, down 330 yesterday, up 301 as we speak. why the rebound? well, in part it's because interest rates are sliding and money is pouring into america. the yield on the ten-year treasury is now 1.96%. literally money pouring into treasury bonds and our stock market because our interest rates, actually, are still above what they are in europe and japan. come on over. real estate company clever real estate, they came out with their 20 best cities for millenials to buy a house. jackie, give me the top five starting with number one. jackie: starting with number one, rochester, new york. the median home value there was $146,600. behind that, des moines, iowa. then omaha, nebraska, dayton,
ohio, grand rapids, michigan, but you know, millenials complain about everything. they are probably going to say they don't really want to live in these places. the survey was calculated based on the affordability of the city, fun factor, liveability and also the price of the homes there. look, they are complaining, too, that they can't buy a home so if you go to these places, you can. stuart: rochester? you know what the weather's like there? jackie: i do. i visited. stuart: in january? jackie: not my favorite place to be. you can buy a home there. stuart: if you are a millenial. video game company, they're back with us, atari. they are the company that created remember pong? of course we do. pioneers of the video game business. well, they just posted their results and posted steady profit growth. good stuff. atari's ceo fred chesnais is back with us in new york. look, i remember atari. we all remember atari. anybody over 40, 50, 60 remembers atari. how are you keeping atari relevant in today's marketplace?
>> well, i think a couple of things. the first thing is retro gaming is really back. the old games are coming back. you are talking about all these old games being found -- stuart: wait a minute. mario is coming back? >> never went away. stuart: what else you got? >> the main reason is you can have a lot with two, three minute sessions. we are working on a new console. stuart: it's on the screen. >> thank you. just like you have a lot of cutting the cord, everyone wants content so this is not only a console to play games but also a streaming device. you will be able to access any of these contents being offered by other players. stuart: on the screens now, this is the roller coaster game. that's the new one? you've got that? >> we have that as well. that's a mobile version. we also have it for the switch. as you can see these days, it's
all about content on any platform. you have people watching fortnite, over the weekend, you have a lot of people watching tv and it's all available online. you want to have access to content anywhere. stuart: how do you sell that to millenials who never heard of pong or atari? >> i think again, with any game, you can have a lot of joy and entertainment in two, three minutes. if you want to spend two hours playing a video game, you have other games but here, you can have a lost fun in two, three minutes. you can play with friends on your phone. i think we are all multi-tasking while watching tv. you are on social media playing games at the same time. stuart: if i get one of your consoles, can i get any and all games on it? >> you will have the atari game and also it's a streaming device. you will have access to the
internet. everything that's on the internet, it will be available. stuart: is mario still popular? >> mario is still very popular just like pong is very popular. all these retro games. stuart: of course, mario's nintendo. what am i thinking? you've got an entourage all raising their eyebrows. i'm very sorry about that. >> it's no problem. stuart: sorry, fred. >> we are all video game fans. stuart: i don't play. i just don't play. what do you mean, no, you will? >> everyone plays. stuart: did you see this, the teen who won the $3 million in the fortnite championship, he's got to share his winnings, $3 million, he's got to share it with the team, the e-sports team that he signed up with. what do you think of that? >> look, i think i would rather have -- i think it's a combination of different
factors. it's a game of skill. it's a business. because you have prizes, but just like any other games you have a company making money so it's a game of skill. it's a business and you have teams involved. my view is rather sooner than later, just think college sports. it's regulated. i think the technology coming, i think there's a wake-up call. everyone is aware of it. i think this is going to be a wake-up call and if you move forward, you fast forward one year down the road, this is what has happened. i think it's a wake-up call because you have a game, game of skill so anyone can try to do it. you don't care about people playing slot machines, it's a game of luck. this is a game of skill. business, big business, look, now people realize this is big
business and teams involved. this is a combo where i think -- stuart: regulators? >> tax laws and labor laws are involved. stuart: never forget the tax laws. fred chesnais, the new look of atari. thank you for joining us. appreciate it. next case, lebron james criticized for what some call stealing the spotlight at his son's basketball game. coming up, we are talking to fox sports' jason whitlock. he's comparing lebron's thirst for fame to cocaine addiction. getting a little beyond yourself there, jason. i will talk to you after this. ♪
stuart: we just heard about this. lebron james has been seen all summer long at his son's basketball games. he was running on to the court during the games, joining the warmups, and he showed his high-flying skills dunking. that drew criticism that he's trying to steal the spotlight from the kids who are actually playing. jason whitlock is with us, host of "speak for yourself" on fox sports one. i know you have a problem with this but i'm not buying it.
he's just being a good dad. he's with his son. what's your problem with this? >> well, my problem is not that lebron's a bad parent. my problem is that lebron is addicted to attention and fame, and he's always performing. he's always onstage. stuart: and you're not? come on. when you walk down the street, you love it when they're all over you. i do, too. >> no. not true at all. but i just think lebron seeks attention and i think it's great that he's supportive of his son and i applaud him for that, but if any other parent, if laquan smith had been doing what lebron james was doing, people would be sitting in the stands and saying man, look at the idiot parent, he's doing too much. it's great that he's here and it's great that he's supporting his son, but he's doing too much. parents don't belong on the court celebrating with the team during the game, and they don't belong in warmup.
that's not some major indictment of lebron as a parent. to me it's an indictment of lebron, just his lack of self-awareness and to me, what social media and his addiction to social media has done to him. he's always onstage. stuart: okay. >> he's always performing. that's too much. stuart: let me come back at you with a personal story. this is contrast here. wait for it. wait for it. when i was a youngster in high school, i played for my high school's cricket team and rugby team. every single game i played, not a single parent from either team, my team or the opposing team, not a single parent ever showed up for a game. it just wasn't done. parents didn't show up. we didn't want them there. now, there's a cultural difference, isn't there. were my parents bad parents because they didn't come to see me play rugby? >> no, i don't think they were bad parents. you know, did they put you in the leagues and give you all the training and equipment you needed to play the game? look, i think there's a delicate
balance for parents in terms of involvement in their kids' extracurricular activities. i think being on the court celebrating in the middle of a game is crossing the line. stuart: i'm with you. >> being in the stands showing support, that's probably ideal. stuart: i'm quite well-known and i occasionally showed up for my kids' baseball and other games and i didn't make a fool of myself. jason whitlock, you really are all right. why don't you come and sit next to me? >> i would love to come to new york and be there with you. you just send me the first class plane ticket, i'm there. stuart: forget about it. how's that with a british accent? mr. whitlock, i do think you're all right. hope you can come back soon. thank you. more "varney" after this. promise. ♪ how do you gauge the greatness of an suv?
stuart: special guest on "wsj at large" this week, the special guest rahm emanuel, former mayor of chicago and chief of staff to president obama. here is preview. roll it. >> there was also taken shots at barack obama, most popular democrat in the country that struck me a little odd. >> you can strike the word a little. >> the guy did 90% odd among democrats. most successful progressive, prolific, president, who had an incredible chief of staff. let me say that. stuart: the show airs friday night, 9:30 eastern time. jerry seib is the guest host this week. let me get this in. the market is sharply higher. the 10-year treasury is down in yield. i think because money is pouring into america. 20 seconds am i right? >> i think you're right you're
seeing that reaction. when the rates were cut yesterday, i think that is what you would see but the press got in the rate. stuart: my time is up neil it is yours. neil: thank you very much, stuart. let's go live to washington, d.c. where the vote on the budget bill which keeps the lights on couple years, debt ceiling couple years. looks like it will pass, although a number of republicans maybe upwards of half a dozen who might not end up voting for it. they are confident they think the votes is there. mitch mcconnell is confident the votes are there. we'll watch that very, very closely. the president did comment on this budget deal, what he is expected to approve and sign. he praised it saying that there is plenty of time to cut the budget. well that is in the eye of the beholder. the president saying he will sign off on