tv Varney Company FOX Business February 13, 2018 9:00am-12:00pm EST
didn't sound like he was all in on saying that. >> he got tax reform done and that he passed that sthat gave the big thumbs down to, but right because of a republican now he should just -- high trail -- >> kefn, aaron good to see you varney picks it up from here. >> thank you very much indeed friday and monday the dow u up 750 point. that's great. well it is tuesday. now what? good morning everyone. caution, the sharp up and town movements have not gone away. having said that, look at that. indications are that we open lower all across the board. but this is hardly a major selloff. the dow starts today from this have about 2,000 point e-below the all time high. i have another caution as we always do we have no idea where we'll end the day. got it? the back drop today massive stimulus for the economy it is going to get i felt exare tray juice this year. but -- massive deficits too.
the debt bomb threat returns. that's the push and pull for investors good for stocks trillion dollar deficits higher interest rates that's bad. hence, volatility -- politics -- u susan rice she of benghazi wrote a memo to herself for the very moment of trump inauguration in it she insisted twice that at a secret meeting president obama had had laid down the law to the the fbi. they must investigate russian medaling by the book. he was not asking about initiating or instructing anything. he was completely removed from the fbi probe. his hands were entirely clean. two republican senators pownsd the memo odd as they call it. yes, we have a big show for you today stay there please. a terrific olympic story for you. "varney & company" is about to begin.
[laughter] >> oh, you have to love this. the u.s. wins another gold at the olympics and this is a really special one. khloe kim 17 year old a near perfect run in the snowboarding half pipe she was way with out in front of everybody. by the way, she had qualified for the sochi games but only 13 then. and too young to compete. american gold earned broads in the same competition. all right the medal count here we are germany has 7 overall including four gold netter land seven medals three geld and u.s. is third with six medals including three gold. now, ash, troaftion about the u.s. women's hockey team and mask. >>you're not going to believe ts goalies for women ice hockey team have the -- image of the statue of liberty on their mask one on the chin one on the left side of the mask. that was apparently a little -- for the -- olympic committee they're like wait a minute.
this they say could violate the ioc been on political symbols on masks lady liberty anyway they debated it and talked about it and said it's okay. >> statue of liberty is a political symbol. symbol of freedom controversial. but they backed off. the statue is back. that's good news ash we'll take that. now let's get to your money serious stuff here. looks like a lower for stocks to bring in peter, business professor at the university of yanked. all right peter we're going to juice this economy big time throwing money at it. is that good for the market this year? >> well i think it will be. the real question out there is are we going to get more inflation or just more growth if question get just more growth it is good for market and if we get inflation we may officially get turbulence but remember businesses are much better able to handle inflation than individuals. historically periods of inflation haven't necessarily been bad for business. not that i want it.
i would rather not see it. but it is not something to be terribly feared from the point of view of the stock market. >> okay. now all of this money that is chucked at the economy does it mean 4% growth this year? >> i don't think so. if we're going to see 4% growth i think it will be next year and going it take time to crank up the investments from the tax cuts. you might start is to see 4% growth the the second half of the year. >> okay o. how about interest rates? i believing that tenure treasury the key rate -- at the moment yields 2.83, 2.84%. how high will it go? >> oh, i think another 4 tenths of a percent beef the year is over but that's about it. the feds planning three rate increases unless we get inflation and i don't think it is in the cards that we necessarily will. then i see three rate increases and -- the treasury doesn't move in lock step with the federal pungdz rate. it moves in a smaller proportion to it and we have some of that
bump already. so i think that that's about it. >> it doesn't sound to me on the treasury without being too technical that's not exactly an overwhelmingly high yield is it we're at 283 now. whnches we start getting up around 4.5. 5 then bonds compete with stocks but let's face it what what fed planned when treasury and rate is up 3.25 to end of the year you still at the risk of, you know, capital losses, as fed continues to increase rates next year. historically, stocks outperform bonds, this is a normal cycle on interest rates finally. and it is nothing really for stock investors to fear a terrible overreaction to this in recent weeks and hopefully it will go away. prchtion fess up personal question. i think you're a big time investor are you buying into this dip? >> no i'm not and reason for that is i'm retired it now. and with the acceleration of prices i'm retired from the
university that is. and with the acceleration of -- of the market i was overbalanced into stocks. so i'm not -- i didn't sell at the peak and not buying out but reinvesting my earn orings. okay. i didn't know you retired. >> i have gold you're supposed to salute me. but you have lost your tenure. so you can't say anything you like any longer. >> i can. i'm for life. [laughter] >> that works. okay hey peter come back to see us again soon. thank you, sir. >> take care. like being that -- is that how you do it? >> i.c.e. just kidding i remember that. no question -- this congress, this president, they are big spenders cue the music please hey big spender monica is here fellow for policy research. are the republicans and the president and everybody else juicing this economy for the win in november? >> politicians spend money in
reelected it is shocking -- stuart -- that's what they're doing this is an election year, and that's why there's -- never going to be any spent spending cuts i as a conservative frankly do not approves and i think republicans are hurting themselves over the longer term because their plan is reducing size of government cutting taxes which they did, in fact, do. but also reducing spending and they -- they have sold on that front. >> but your political judgment is it is better to win in november by using economy than lose by cutting spending. politics is all about winning stuart that's what all of this is about. but frankly we are blowing up the deficit the national debt continues to tick up and. republican brangd is built on smaller government and reduced spending and we have yet to see that. performance so have they blown their brand out of the water? >> not quite because voters give them lee way because of the election year but point that voters were trying to make by putting a republican president
and full control both house it is of congress was get spending control under control and this month the first month of the trump tax cut, the feds are actually running surplus, but instead of taking that surplus, and actually paying down the debt, culting tacks, betting the budget in line they're blowing u through that surplus. keep's personal bublghtses we don't do that, right we get a little extra savings maybe we spend a little bit it have but maybe we save some of it as well the federal government never does that. >> you know, senator schumer -- stood up yesterday i think on the senate floor and said you know, it's not good enough just to oppose trump. that's not how you win in november. >> what was going off? tim ryan -- >> he understands you spend big. you get the economy juiced up. right and you win. >> well i know who stangdz that resistance is not enough. that's not going to give voters a come felling positive reason to vote for democrats. rather than just against donald trump and the republicans.
it is an age old political lesson and nice to see senator schumer has learned it. but has the rest of the democratic party learned it? >> the left certainly hasn't. tfnlings never supposed to say it and journalism only time will tell. [inaudible conversations] >> remains to be seen. and american accent with that. [laughter] stay is there monica more for you shortly. i'm going to get back to your money. where are we going to open in this market down 150 point. let's see how we actually do open it shall we've got a history in the last couple of weeks of showing a sharp selloff. and it wasn't so sharp by the time that trading actually begins. by the way, today's downside move of the opening bell if that's what we get comes after two days of gains where dow has gone up 750 points. couple of individual companies and stocks very much in the news. how about underarmor yeah made more money than expected they're raising their outlook for the future. that stock is up big. premarket look at that.
10% the please remember underarmor stock down 30% in the past year so that's a modest bounce back. pepsi interesting news. that latest company to give bonuses from the tax law and employees will get up to -- 1,000 a piece. and by the way, at pepsi soda sales down again, snack sales up. big deal in the workings. walgreens drugstore chain reportedly in talks to -- with the big drug district tore bergen lizzy this is the amazon effect. >> you know i was thinking this is like the health care players they're not little. on the sidelines watching the larryca amazon running up field clotheslining everybody, and biggest drugstore district tore os walgreens is second largest drugstore chain, they want to buy remaining 74% but does not own of the bergen here's a breaking news. amazon wants to be the world's biggest hospital supplier.
so it is beginning to want to turn its amazon business section of its website into an alexa enabled division where you can order medical supplies and drugs for hospitals. so in your hospital you say i need more band-aid i need this drug alexa sending it to me. so you watch the drag on stocks right now. on the companies like that health. this is -- this story is now again, so remember, it was amazon jpmorgan chase and brook shire hathaway together to upend the is it is answer to the government's obamacare so now they're saying, one of us said, health system it is a tapeworm on u.s. economy it has the hospital system. and amazon he said that. amazon is now stepping in taking over hospital supplies. >> good morning, california. a tapeworm in the system hon that. on -- wow. amazon effect. in stocks -- extraordinary stuff. now this one, apple home pod, the smart speaker. getting sol rather tenic review
but doesn't stack up to the competition and cost more than double what you would pay for the home voice thing from amazon echo, and the google home we'll discuss that. amazon behind the times -- apple behind times a little bit. all right look at that. a newly uncovered memo from suzanne reis raising questions about president obama's role in the russia investigation. it is serious stoves, and judge napolitano will handle it. first check out o the video boston dynamic showing off a version -- this is the spot mini robot. new coat of yellow paint okay brangd new skill. it can use a claw to open a door. >> it can get out. now that's creepy sports fans. that really is. >> like something out of an anxiety -- if you're not careful wheel sew you this video again. back in a moment. [laughter] fadeaway. that was awful. why are you so good at this? had a coach in high school.
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blue apron meal kit delivery company number one they have a 15% drop in customers from a year ago. and number two, they made more money than expected up she goes 10% high e on blue apron. now this -- two republicans senators are calling on tomorrower national security advisor susan rice to explain an unusual e-mail she sent it to herself had the day that president trump was sworn in. it was about president obama, and the russia investigation. i'll give you the quote. president obama began the conversation by stressing his continueed commitment to ensuring that every aspect of this issue is handled by intelligence and law enforcement communities by the book. all rise tszuj andrew napolitano is here. covering the president's track. >> sounds like it so the conversation reffed to includes the president, the vice president, jim comey director of the fbi, sally yates then the acting attorney general loretta
lynch had resigned this is one that donald trump eventually fired a couple of weeks -- couple of weeks later. and susan rice there. and this issue they're talking about is the investigation of russian meddling in the 2016 election so why should rewrite this thing to herself 16 days after it occurred? why would she put the phrase by the books in quotation mark what would be the purpose of this? unless something came to her of the president's attention. between january 5 when the conversation occurred and january 20th when she wrote this e-mail to herself. that caused her to want to either varnish the meeting, acknowledge its existence but put a good tbloses on it. because president obama told chris wallace our own colleague as well as others -- i never discussed any of this. with law enforcement or intelligence. particularly what the fbi the president of the united states doesn't get involved in
micromanaging these investigations. wow. that is defied by -- the text we have seen from two characteristics in the fbi that text each other 55,000 times in a two-year period in which one of them said this is lisa paige peter struck told us president of the united states -- wants to know all it be this. the this is not hillary clinton. the this is the fbi investigation of trump campaign. >> bottom line is that president obama's name is and, being drawn into fbi russia, russia, russia. twonch yearing ago sit here i told you president obama would be drawn in on the hillary clinton investigation. because if he sent e-mails to her containing classified materials or received e-mails from her containing classified materials and he knew had her or to have known it was from her personal server he too failed safeguard national security secret we're beginning to see more and more inappropriate behavior and or orchestration
from president obama. >> what they said about the election roll tape. >> i think it was difficult for hillary clinton to get by even to -- the macho atmosphere in prevailing during that campaign. and she was criticized in a way i think no man u would have been criticized. >> why is supreme court justice weighing in on a political election? >> i really don't know. the last time she did this, during the campaign she said if donald trump gets elected i'm going to leave the country. she was privately dploshed by two of her female colleagues on the court saying you're demeaning court by doing this few i suggest you she's going to be admonished again this this is one thing for scalia to give a
talk about morality is basis of u law but her saying poor hillary clinton donald trump was too macho absurd and far outside the realm of the supreme court justice. pings come back be in the 11 please. judge thank you very much. monica crowley out with a new opinion piece. here's the headline central abuses on obama's watch repght growing legacy. growing blight on his legacy i want to know. what are those abusessers? we'll be back with monica after this.
every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> monica crowley says, federal abuses on president obama's watch are a blight on his legacy all right you've got 90 seconds lay it out. which of abuses? >> what had i'm specifically discussing in my piece, is the weaponnization of our our top two law enforcement agencies doj and fbi for two main purposes stuart number one to shield hillary clinton from prosecution and protect her candidate city because obama and barack obama joined mail et cetera they needed to protect her. second part, of course, o it was to derail and destroy donald trump but what i write about is overarching reason nobody is talking about.
those are two superpurnl ones. the overarching reason they did all of this, was to protect -- the leftest grand project that had so much success under barack obama for eight years they were not about to allow those gains to be reversed by donald trump. >> do you like and admire anything that barack obama did as president? name it. >> hard, hard to name even one. i will say one thing he -- moved a couple of terrorists but -- bin laden and he tilted american policy in favor of indy although he never followed upon that but apart from that it he weaponnized government agencies against political opponents. doj, fbi, irs these are most dangerous scandal it is in u.s. hurst. >> i'll read the article. done for a purpose beggar than president obama. that's the point. >> we're heading towards opening bell four minutes time. we're down about 150 160 points
for the dow industrials let's see how we actually opened up this morning. we'll be back. [fbi agent] you're a brave man, mr. stevens. your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances.
points. it is now tuesday morning, where are we going? futures pointing south down 130, 140 points. 5, four, three, two -- bang. we're up, we're running it is 30u9 eastern time on a tuesday morning. following a -- 750 points over the last two sessions look at this. we're down 105 within the first 30 second it is to 10 seconds. now it is 118 we're around a loss of 150 down. 153 and i'm reading this out for the benefit of our radio listeners down 154 after 21 seconds at 24,453 that is a los of 4.6% show me the s&p please i want to see if that is down too. it is slightly less in percentage materials half had percent down. how about the nasdaq all of those technology stocks grouped together there. same story down a half percentage point. what's the yield on the tenure treasury investor have been looking at that very closely.
just 2. 4% it hit 290 just yesterday so 284 i think. news on pepsi soda sales down again but sails of snacks going down and giving bonuses to employees of up to $1,000 per person. pepsi stock is down just 30 cents on that. apple holdings its share hold per meeting today we might find out when what it will do with the 285 billions in cash. but it has overseas what will they do with it? anything they want. [laughter] well said young man. well said. walgreens interested in buying the large drug district tore the bergen that we're calling the amazon effect. who is with me on this historic day it? ashley webster and elizabeth macdonald, mic murphy and jeff with circle square alternative investment long name.
jeff, we're chucking money at this economy. do you think that's good for the stock market >> here's the thing, this is a quick fix market. they love to spend but the reality is this market is addicted to low interest rates, and with all of the spending an by the way, this was an awful, awful spending bill with all of this spend we're bound to see interest rates rise. not only a little but dramatically in the future. this ises very, very bad thing. bad thing for the economy to see interest rates go up. >> adrenaline to move up but in the long-term it is bad. >> mike murphy juicing the economy good for the market ore bad for the market longer term is? >> i think it is great for the market. i think what happens so just -- difference of opinions. >> respectfully disagree with jeff. i think that i didn't see the other side of what the government could do right now. cut back spending? i don't think the economy is in a position we've had a few strong reports. i don't think we're in a position to cut spending i think
we need to continue to spend so far we have a new administration that has been in office for about a year from a business standpoint i think the report card there should be a to a plus rolled back regulation and cut taxes so i think they deserve the benefit of the doubt here on the spending bill. spending for the economy is a good thing. spend for the stock market will also be a good thing. >> all right mike we have a difference of opinion. >> what about -- the interest rates that's what everyone is -- what they said what about interest rates going up? >> okay. so i'll answer that with a question should interest rates in the economy we're in today should interest rates be down where they are? should fed funds rate be at 1.5%? >> probably not. not normal. still a result of what we saw from the financial crisis. so the argument that possibly the fed is behind the curve could be made. but interest rates need to normalize. this economy support -- >> awfully close to pozzer on
this one. [laughter] [buzzer] the federal funds rate cross open the first three minute of trading i'm shocked, shocked walgreens reportedly by the drug company bergen mike this is a.m. horizontal effect isn't it because amazon is getting together with a warren buffett and jpmorgan getting into health care a defensive move. it is a defensive most of attempt to go after amazon have few people able to go after amazon but i think the new tax bill that we have is going to prompt more m and a out there and see more companies with strong balance sheets looking to go after -- other o competitors so they can be large tear to compete with the likes of amazon. >> there's a tag to this story of taking on another -- drug distributor and that is amazon wants to be a hospital supply. >> they're testing in the midwest with a hospital system that has 150 hospitals. so turning amazon business into the world biggest hospital, supplier you have an device in
the hospital sayty need more hip implant send it to hospital so and so-so this is what yes, i have is going with the hockey puck is headed so that's why -- we see this price tax and right now hitting the tape. drags down the medical suppliers and companies like cardinal health and custom. >> on your screens amazon effect they go into business with a drug district tore and other canes affected all go down. >> i call the larry zonka clotheslining company miami dolphins famous football player. please -- apple just released its home pod you can buy them as a of last week i think it was. well people like the sound quality but the earlier reviews are not that great. i think jeff seeker that amazon is beating apple up and down on home speakers. >> amazon is fooling apple on this. first of all this is apple's strategy they roll out new
versions old products and then they roll out old version of other o peoples products that are clearly inferior this product is overpriced it is hostile to other devices. which means you have to just use it with apple. so -- apple has again, with dropped the ball and this is a perfect, pest example an they couldn't get it by the way they kopght get it up for christmas. >> so mr. negative -- jeff, all right now we're down 154 points took a dip south in the last couple of minutes literally down 140 points, 24460 is where we are. all right apple has got a shareholder meeting today. mike do you think we'll find out what they'll do request 285 billion cash? >> i don't think so they're going to make announcement today but as they did two years ago looking to see what they were doing with their cash back then and waited till few weeks after share hold percent meeting i don't think they made it today at the meeting but we should hear soon. >> few years ago when they have a mountain of cash or they get a
special, i know my microsoft gave 3 per share. >> if you remember that. don't you? >> i earned a little microsoft stock you don't think apple might do the same? >> they'll talk about buying stock back you saw huge movement and we own apple i saw huge move yesterday in the stock i think they'll repurchase stock down here. >> at 162 as we speak on apple. and we'll come back a bit on the big board we're down 150 points literally second the ago down now 1 11 and down again well below 60 a barrel. 5861 is the quote. and general electric you remember them? [laughter] they're below 15 dollars they have a downgrade from jpmorgan. and they're up 1467. big tech where are they? i'll tell you now i think most of them on downside apple, though, a fractional gain amazon up 10 but facebook microsoft all
of them on the down sited. how about underarmor strong profits nice outlook for the future. and they're up 15%. remember please -- they're down the stock is down 30% over the past year. that's a very nice bounce. amazon is laying off -- a week consumed with news about amazon yes we are. laying off several hundred employees. mostly in seattle, this is not -- this is unusual for amazon isn't it? >> amazon has 550 employee miss this facility in seattle, they have about 60,000 employees they are tbing to automate a lot of jobs. because 60,000 employees in seattle so getting rid of a couple of hundred. >> so you're a tv supplier you don't talk to human being you talk to robot or consumer system at a.m. is to amazon they need f its done on their website. >> well fact that anybody would make an issue of them laying off a few people in the automation
is very important for amazon to how they're doing job more efficiently they're learning as they bo but this is a minor issue. >> look at the stock on the cusp of getting back to 1400 a share. facebook, listen to this one. facebook is losing younger, users losing those users to snapchat at a faster rate than originally thought. now we're talking about people age 12 to 17. i don't see that as a good sign for facebook mike, and you're one of their big supporters. >> there's been talk about facebook not appealing to younger audience for years now stuart and i didn't buy it then and i don't buy it now. snapchat came out with solid earnings report on a stock that couldn't find its way at all a 12 to 17-year-olds i agree they use snapchat over facebook. but i think the people who are spending the money and the advertisers who are spending the money are spending it on facebook not at snapchat. ening do you think that facebook will be the first company to be
valued at a trillion dollars? >> i'm going to -- i think it will get to a trillion dollars but i think apple is too close to bet against them and we own apple as well as facebook. >> and -- all right. it is that time ladies and gentlemen, i have to say good-bye to jeff seeker and mike murphy gentleman thank you very much for joining us back to big board we are down almost exactly 100 points. 109 to be precise. some volatility today, but all of it on the slight downside now this -- troubling new headlines from venezuela parents reportedly putting, forced to put their children to orphanages because they can't afford to feed them. details on that in the next hour what a tragedy. an etna under investigation after a former medical director admitted he made decision about approving or denying care without ever looking at patients medical records. not goods. we'll be back.
>> well i told you it was volatile yes it is now down 100 point literally a second ago. we were down 70 -- okay now we're down 104. volatility got it. i think name of the game yeah barnes & noble cutting staff after what they call a terrible holiday season. come on nicole how bad? >> don't be fooled by one up arrow here we have a lot of red today up 1.6% right now but down 30% two weeks town 55% laying off workers say ising they have to adjust their labor model because over holiday season they have sales dropped 6%. 6.4% online sales. just 4.5%. so they are readjusting labor models doing so by february 16th
adjusting staffing won't affect their comr service but in the background you have, obviously, a huge investor management pushing to sell itself so wondering if there's something behind that and have cost and curb with this but saving 40 million. back to you. >> thank you very much indeed etna health insurance under investigation a former medical director admitted he never viewed patient records before approving or denying care. tell me more. >> it goes worse according to reports this was a college student suing etna with a rare are immune disorder. the doctor jay -- work for etna medical trerkt runs southern california. in a sworn testimony he admitted that he never knew or even read or understood this or particular disorder oar goes further he said i never even looked at medical records for the cases coming into my office. i allowed on nurses to advise me what to do now concern now, is
whether or not this is -- this is not just -- singular to southern california. it is practice is throughout etna. so california is u now investigating they want to see how widespread this practice is at the country largest insurer. >> thank you very much. the wild market swing have raised concern about electronic trading you've heard the expression the robots have taken over. joining us now is michigan congressman bill, he's the chair of the capital market security and investment sub committee. sir, if the robots have taken over and as we hear they are -- what are you going to do about it? >> here's the question with what exactly can we do about it? i think that -- high frequency trading part of the marketplace. you know, you've seen some players that have tried to get involved to do something on their own whether it is iex own other it is trying to figure out exactly how to smooth this out a little bit. security is exchange commission will have to be involved in this conversation. but it is a kftion we should be having. >> not much you can really do is
this to be honest? >> there's certain things that regulatorily you have to do because stuart we know that technology for this is -- just huge. it is at this point we don't see an end to how fast or how quickly it could be done. people thinking innovative ways but we have to make sure markets are sound that's the bottom line. >> sure, these exotic products as well you have to take a look at them because as they unwound on people change their positions, that's fed on itself from moving market lower. but again, it is very difficult to do actually anything about it. >> well look we know that fund mentales are sound. we know that the fund hejtses at the economy are sound and market is sound. youwhether these moves are deleveraging or adjustment or hft to degree where you see a program trading coming in, kicking in, we know that the underlying fundamentals are are solid and getting more solid with tax cut as well as the regulatory reforms that have happened. now as a republican how do you feel about these massive
deficits that are coming down the pike at us? we're talking a trillion dollar deficit in 2019 maybe more than that. when the economy is growing ats 3% rate, i mean republicans seem to have abandoned financial restraighten. >> i'm very frustrated i'm one of the founding members of the balance budget caucus i think we need to have a regulator like that on our constitution. with the proper safety valves. >> miles away -- miles away you're absolutely -- away. here's what we have to do is question of to have the courage to look at what really drives our spending and we know it is medicare medicaid, social security. it's those entitlements and i don't think we should -- >> american politics. i think it is less and less of that third one. absolutely i go to talk to a lot of seniors whether it's the, you know, every coffee shop has their round table where they have solved all of the issues of world somebody would just listen. right that or a more formal town hall at a senior center. those folks are saying look we
know that the math doesn't add up. we want to know and have assurance that if and when we're having to deal request this, you're taking care of us. and we have a social moral obligation to make sure we do that. for me at 49, i've got some time to adjust for my kids and grandkids you were talking about facebook and snap i've got teams. they're going to have a much different work career. and frankly their life expectancy is at 100. >> bottom line is no votes in austerity you put -- an austerity budget spending cuts you've put that in front of congress and it will be voted down. >> we've got to have the courage to be able to go do that and a it is, takes small adjustments right now it is not the job. the job is to take care of the country and interfere job is to go get elected you're in the young business. >> bill -- thanks for joining us so we appreciate you. >> appreciate it. all right check that market again -- pretty much holding where we were five minutes ago.
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>> adding new feature which will require a driver to take a break after 1 hours of driving as at work. ening they track the usage of the app that is being used by the driver who responds to, you know, requests to be picked up and they turn the drivers app up for six hours after they've been working 12 continue thous hours they say sleep yg oi o tired driving a big issue. this is already being done in australia already has this. but -- the kicker is that only 60% of über drivers don't do uber job for ten hours or more a week so not that many at that rate, however, über saying we have to be careful u now if they're at an airport waiting long time that doesn't count against them. >> oh. okay so you know, fair enough. but interesting. our next twee's and saying technology has killed privacy.
steve hilton is with us the next revolution with steve hilton right from the get go you think the letter is the most private thing form of communication these days. go ahead make your case. privacy is dead. >> i think i'm very glad that full agreement on this that's assuring way to start any morning. [laughter] i think that it's something we all have to be really really conscience of because it is simple. everyone not by the way, not absolutely everyone. we might get to that in a minute i'm not part of this. but pretty much everyone has a computer in their pocket that is a tracking device that monitors everywhere you go. everything that you to. and seppedz that information to a range of different companies now we saw just now that story about über sometimes the use to which this conversation can be put can be socially helpful. but there's no question that -- notion of privacy that you can go somewhere --
you can do things you can express views that have just personal to you that has gone we debated that on my revolution this sunday and our guest right across the board said it is dead. and the worst and one of our guests put it really well he said one thing that jog got wrong about 1984, and big brother, was that this tracking and surveillance was not imposed on us by the government. we opted into it. we have chosen to give away our privacy. that's the -- that's the interesting thing about it. >> is there any way out you said that it applies to almost everybody. well who does it not apply to? pledgets not to me stuart because i don't have a phone. i remember last time question discussed this you said i couldn't live without this thing -- i do actually. i haven't had had a phone for six years. so that's one -- you could you could say extreme way of avoiding it but what's interesting it to think about whether market could provide a solution because you're seeing
company grow up that really responding to the concerns people have about privacy. for example, after our show this sunday i was contacted by company called privacy mate. who promised to -- to stop your information from being handed over there's a search engine called ..go that a lot of people use increasing numbers of people use which is an alternative to google and they don't track your information. so there are solutions will, and it could be that the market might, might help fuss here. but there's another direction we could be conscience of which is -- a great -- mention one thing elon musk hero of heavy is developing something called mirror link which is a brain machine interface that will track not just what you're doing where you go but what you think and that's coming around the corner. >> i'm glad you advised me about that steve. watch the -- steve show the next revolution with steve hilton sundays 9 p.m. eastern on the the fox news channel. sorry to cut you off short there
stuart: at the very last moment the just as the palm administration came to an end the national security advisor, susan rice sent a memo to herself. it said president obama ordered the fbi to handle the russia meddling investigation by the book. she emphasized that expression by using it twice, by the book. she was going on the record. president obama was not askings about, initiating or instructing anything to law enforcement about russia. his hand were clean. two republican senators, lindsey graham and charles grassley found the memo and they have questions. did the president know that the fbi had used the clinton finance dossier as an excuse to spy on
the trump campaign? did know, did the fbi tell him? remember, when mr. trump tweeted that he had been tapped he was laughed at, dismissed but it was true. in the waning days of his administration did president obama know that? another question. did the fbi conduct its probe by the book? not if it used clinton's foreign dirt mongering to spy on her opponent's presidential campaign. oh, no. another one. why issue a memo to yourself is on january 20th, 2017, literally in the last minutes of power? senators grassley and graham say it is odd. yes it is. we've all sent memos to ourselves, usually as a reminder of something. this rice memo looks a lot like covering your tracks on behalf of the president. do you remember plausible deniability? bill clinton used that frequently, coming up with a vaguely plausible excuse when confronted by unfortunate facts.
the rice memo seems like a leaf from the clinton pay book of plausible deniability. second hour of "varney & company" is about to begin. stuart: we're holding fairly consistently to a loss of just over 100 points. that is where we are. ashley: stability. stuart: stability. careful. careful. ashley: just saying. stuart: now look at it now. look what you did. ashley: oh, boy. stuart: big tech names, check them all the time. . apple holding a shareholder meeting. they may find out what they are doing with 285 billion in cash. we'll find out in a second. amazon reportedly wants to be a hospital supplier. that sent medical suppliers, way, way down.
amazon could be the cause of this. there is a potential deal here. walgreens reportedly interested in buying a large drug distributor, amerisourcebergen. this is the amazon effect, writ large across the health care industry. under armour, strong profits, it raised its outlook for the year. that thing is up 17% as we speak. talk about your money and the all the juice being added to the economy. brian benburg, kings college professor is with us. do you think all the spending, we'll get to 4% growth. >> we'll make the best run we've seen in 15 years. i don't think we'll get to four. closer to 3 1/2% but let me say there is one piece of news entirely underreported in this economy, and that is small business optimism. last month we saw the highest reading on record. highest reading for plants to expand production. this is so important in the coastal media elites never want
to talk about. they never want to talk about it, stu. you know who it is about? about guys like my mechanic, in north branch minnesota. nfib guy. loves tax cuts, regulatory cuts. his voice is never heard. these are the people saying we're optimistic where the economy is going. stuart: nfib, the small business people, they say main street is it roaring. >> main street is roaring. they're optimistic because they feel like they can do business again, stuart. it is not about wall street. not about the stock market for them. it is about expanding their production facilities. it is about hiring people and producing and shipping things and stuff that makes economy tick. they're excited about that. liz: i never understood why democrats believe raising taxes on small businesses that creates jobs, will get people jobs and get people working again. i never understood that logic. now that tax cuts rates are going down, that is lending to the optimism. stuart: that is important item
of news, small business roaring ahead with main street. there is a flip side to this you're chucking all this money, including government money, chucking it at the economy. we'll end up with trillion dollar deficits within what, 18 months? that can't be good. >> absolutely it is not food. this is an interest rate question. what does congress do? they decide to throw a bunch of more money at these problems we face in society that we can't pay for. we have higher debt, higher interest rates. that counteracts all the good things in the economy right now. stuart: jpmorgan say there is fairly high-risk, their expression, that bitcoin will be cut in half, the price, from where it is now. it is eight grand now. they say it will be cut in half. what do you make of that? >> like doing technical analysis on a rule let wheel. i appreciate they're large to do
do -- roulette wheel. if you put your money in, you have to be ready for big losses if you're expecting big gains. stuart: stay there please. i have more for you in a second. i want to turn to apple. i think they were late to the gail with their homepod. now it is getting disappointing reviews. gene munster, luke ventures managing partner joins us now. i have to say, gene, amazon is winning this battle streaks ahead of apple. what do you say? >> well from a market share you're right, they have about 70% market share of the smart speaker market but i think if you fast forward a few years from now the winner surprisingly will be google, will be google home. stuart, the reason is quality of answers. basically how smart is the smart speaker. ii want to put into perspective how smart the respective smart speakers are. i want to give our loup ventures theme asking 750 inquiries.
homepod got the questions right 52% of the time. that compares to alexa at 64%, and google home at 81%. my answer to your question, i think google home will be the long-term winner in terms of market share and the smart speaker market. stuart: you often said that the smart speakers are most important development expanding computerization in our lives. that remain as fact, does it not? >> it does. the reason how we interact with machines is changing. in the past we used a touch screen and screen board. in the future voice will be a big way to do that. so it is critical that all these companies, whether it guying fell, amazon -- google, amazon, microsoft, apple create these voice experiences. so that is the purpose. apple has done a good job saying this is about sound quality but the reality they really want to nail the voice part of this and
user interface. stuart: are we going to find out today, because it is their shareholder meeting at apple, will we find out what they will do with their $285 billion worth of cash? >> unlikely. the question will come up but they're not going to say anything and the reason is they reserve that for every year when they report the march quarter. probably first couple days in april they will disclose that. give you context what to expect, after they paid their taxes in repatriation, apple will have somewhere around 230 in cash. we expect 70 billion will be allocated next few years to share repurchase. this is them buying shares back. that can lift the stock, continue to lift the stock. they will probably give a one-time dividend around $12 billion. they may do a little bit of m&a. stuart: that is good news for shareholders, if you buy back your stock, it tend to go up. put a floor under the thing. if you increase the dividend,
one-off special that is inducement to buy the stock. do you think this move will put a floor under apple around 160? >> i tend to think so. just to put numbers a little bit of a finer point, that 70 billion over a few years would add% to the value of apple stock because they can continue to buy that stock. i think it does create this floor and it is not a pretty way for the a stock to go up. it is not the gram rouse, blowout quarters for amazon has but it is good for shareholders. stuart: shareholders will take it. gene, good stuff. appreciate it. >> thank you, stuart. stuart: here is the video. you're familiar with boston dynamic robots. they released a video. this is a spot mini. it can open a door. a weird looking thing if i ever saw one. i don't need that in a dark night. ashley: come on in. stuart: looks a bit like a snake on wheels. oh, no, two of them.
moving on. in november, they unveil their atlas robot that could backflip. elon musk going on twitter to freak out this is nothing in a few years that box will move so fast you need a strobe light to see it. sweet dreams. ashley: amazing. stuart: that is incredible. ashley: oh, my god. stuart: coming up the situation in venezuela, even more dire if that is possible. there are reports that parents are leaving children at orphanages just to get them fed. we keep saying the collapse is coming but how can it get much worse? we'll have the latest for you. susan rice looking to cover her tracks in the last moments of power and protect president obama. senators are starting to ask questions about that and we're on it. the immigration debate, six senators coming together on a deal. one of then says this is the only deal that can become law. it is senator thom tillis.
he joins us. you're watching the second hour of "varney & company." ♪ you too. your parents have been talking about you for years. sorry about that. they're all about me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. have a seat. yeah. knowing that the most important goals are yours. with 15,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing.
stuart: where are we now? we're 45 minutes in. we're less than 100 points down. 98 down to be precise. we're at 24,500. look at blue apron. they made more money. that was kind of a surprise and they dropped 15% of their customers. nonetheless the stock is up 5%. senator bob menendez, new jersey guy, could face a well--funded gop opponent. who is it. ashley: 63-year-old bob hugin. he was chief executive at pharmaceutical company celgene corporation. his campaign said he lived american dream. he will tap into a lot of money. financially backed chris christie running for president. also helped to fund the trump
campaign in new jersey. look, menendez, bob menendez had a corruption charge against him. his case finished a mistrial. prosecutors decided not to retry that case, but it has hurt him in the polls, menendez. he has come down, but, can a republican give him a run for his money in new jersey in this cycle? we shall see. certainly the one thing that he has going for him, he has money, but, does he have a name. stuart: in new jersey. ashley: i know. enough said. stuart: immigration debate is heating up, it is going on in the senate right now actually. a plan by group of gop senators. here is a plan. plan for citizenship for nearly two million "dreamers," 25 billion to build the wall, end visa lottery and end chain migration. senator thom tillis joins us now. he says this is the only plan
that will become law. welcome, mr. senator. it seems balanced, the "dreamers" get in and we'll get border security. will you get any democrat support for it? >> we'll move through the process this week. we'll take up amendments. we have the president's support. we have his support to the got house to embrace a bill that addresses the four pillars. one thing i will say, we are ending the visa lottery but we're not ending the granting of green cards of people to draw down the backlog. when you start peeling back the provisions of the president's proposed bill, it is balanced, it makes a lot of sense ends the crisis for the daca population that is looking ad a deadline. senator mcconnell says he supports the trump plan that is the plan most likely to get passed. what is the difference between the trump plan and your plan? >> our plan really embraces the president's four pillars. when we all met in the white house and agreed on bipartisan basis we should pull
together a policy, a well-rounded policy that covers the four pillars we looked at president's proposal and tried to put language that supports that proposal. our proposal is largely the trump plan. this week we may be processing amendments. there may be minor changes to it. fundamentally we need to get the plan passed and sent it house and sent to the president. stuart: i think it is generous plan the way its the "dreamers," giving 1.8 million people a path to citizenship is generous offer but the democrats will not accept that. >> well i think that they have to recognize that over 17 years of failure, even proposals that they had when president obama was in the white house and they had supermajorities, they need to recognize they need to do something different. this is a balanced plan, hopefully they look at the details, first just listening to handful of people in their conference it is balanced and
responsible. that pathway to citizenship is 10 or 12 year period, even senator durbin recognized having merit and embraced in bills he is embracing. stuart: switch gears to the suspicious email that president rice sent to herself on president trump's inauguration day, last minute thing. senators grassley and graham are questioning it. you're on the judiciary committee. what's next? >> i think we need to get to the bottom of it. i support chairman grassley to make the inquiry. we need to see where the facts lead. stuart: seems suspicious to you? >> well, you know, it seems, given the timing of it, given the fact that it was a memo to self, there is a lot of reasons to raise suspicions but what we need to do in the judiciary committee, take it on and get the facts. stuart: mr. senator, thank you for joining us. >> thank you. stuart: thanks. show me the big board for our viewers. we're down 100 points. we've been there most of the
last 45 minutes. ashley: consistent. stuart: consistent. >> stable as you said earlier. stuart: thank you. you got to say it is not up and down volatility we're used to. >> compared to the last week, wouldn't you take a little bit of this, just a little bit of this? stuart: we're down 95. liz: did we miss buying the dip, the real dip? stuart: we told you about london city airport shut down because of the world war ii bomb found in the thames nearby? the airport is reopened. the bomb is removed. they are taking it to a military range in essex, south of england. it will be detonated tomorrow. it weighs 1000-pound. they got it. and they will explode it. ♪
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it's a new kind of network designed to save you money. call, visit, or go to xfnitymobile.com. stuart: one of the themes of this program is the amazon effect. we have another example today. walgreens is in talks to buy another drug distributor, amerisource bergin. brian benburg, kings college professor is with us. amazon will get into health care, so the other health care people have to gang up and get together and oppose and counteramazon. >> the other piece, look at walgreen's historically, it is real estate play. you have to own the place in the corner where people buy pharmaceuticals. that is no longer the case with amazon. they want to go back up the chain, vertically integrate, buy the wholesaler. no matter how you distribute the stuff, we are on top, we have the wholesaler whether online or
real estate. they're doing the same thing netflix did. netflix owned distribution. they went back up the chain to own content, because they want to move depending on chain. stuart: i cannot remember american company with same kind of effect with all industries. >> good effect. good for consumers. we should be happy amazon is driving the disruption. stuart: break them up. i will cover a story which i'm somewhat dubious about, i will do it anyway. film-makers in studio, behind the movie, "peter rabbit," what many, some are calling an offensive scene. what was the scene they object to? liz: that a guy with food allergies is being bullied by peter rabbit. peter rabbit and characters whip blackberries at mr. macgregor. he is human being. the point is, he social media in uproar. sony pictures has apologized. so the question is, did everybody see the movie?
peter rabbit is flawed hero. he is supposed to be a bad guy. stuart: the objection is the sensitivity of people, parents who have got a child with a food allergy. highly sensitive. liz: yes. stuart: bring in benburg. >> i have three kids. i have two thoughts the scene does not sound funny to me at all. they would see the rabbits, what in the world is going on. number one. bad plot choice. it will not make my kids insensitive to people with allergies. it is a rabbit. part of a broader story. we are so sensitive to these things. stuart: that's right. ashley: cotton tail and peter rabbit living in a garden, when the human being who owns the garden tries to get rid of them. they defend their turf andfied back. stuart: peter rabbit is a good character. liz: i love peter rabbit. stuart: didn't you know that, we're all flawed? didn't you know that? we cover it all. get that off the screen.
next case. president trump unveiling infrastructure plan, relying heavily on states to pony up the money. have the states have the money. that is serious question. i love this one. chloe kim, made olympics. youngest female snowboarder to win gold. resident sports expert, brian kilmeade on this great story. he is next. ♪ how do you win at business? stay at la quinta. where we're changing with stylish make-overs. then at your next meeting, set your seat height to its maximum level. bravo, tall meeting man. start winning today. book now at lq.com
man. liz: you like them all. stuart: i like them. most of them i do like. beatles at 10:30 eastern, regular like clockwork on this program. we're down 91 points. that's it. not exactly a volatile day. we've been down 90 and 120 points all morning long. we've been open for an hour. big tech names, mixed picture. amazon up. facebook down. alphabet, microsoft down. apple up but only 3 cents. ashley: shake it all about. stuart: do the hokeypokey. ashley: that's right. stuart: 2.85 on the 10-year treasury we speak. scott shellady. how high does the rate on 10-year treasury go in this go-round? >> you know what? i think if you're talking like some folks are 3 1/2 to 4% you have to rip the face off the ball when it comes to innation. i don't think we'll get that much inflation. we're going so get some. we lost natural buyer bond with the qe program ending, now the
government need to borrow more. i think we're looking somewhere to 3 and 3.25%. that is probably where we're going to go. stuart: i would imagine, stock, the stock market could handle a 10-year yield of 3.25%? >> once, stuart, once we digest this idea, the stock market might actually like that, right? because that is going to put more fat in the system. smaller lenders can make money. put more margin in the system. so after we finally get over the fact, hey, some of this good news is good for the economy, the stock market could actually like it. stuart: i want to talk about oil. we're down to $58 a barrel. i think that is good news. i think cheap oil is good for everybody, not necessarily for you trader kind of guys but cheap oil is good, isn't it? >> yes, it has to be good, as i'm back here in the states i don't pay $6 a gallon like i was in london last week. you see the prices you see here, absolutely an economic boom.
but also at the end of the day it will probably stay that way too. we don't have to worry about the 140-dollars barrel of oil we used to have, we have energy dominance here in the states and west texas oil find and here in alaska. the only problem, stuart it, could really disrupt the middle east. they really relied upon the oil receipts to keep people at bay and keep people quiet. stuart: let's hear it for the american frackers who now dominate the world. >> 100%. stuart: i'm all in favor of these guys, how about you? >> yes the exactly right. they were there for us in 2008. remember, they're the ones where 20, to 25% of those jobs were because of those guys hiring folks to get the oil out. they're a big part of why we're here where we are today. they will continue to be that going forward. stuart: welcome back to the united states of america, scott. so good to see you, lad. really is. you almost got a british accent for heaven's sake. see you real soon. >> see ya. stuart: i want to get back to
the president's 200 infrastructure plan. $200,000,000,000.10 years, to encourage one 1/2 trillion dollars of investments. the plan relies heavily on states to chip in money. we have the former trump transportation advisor. brigham, a state like new jersey, where i live, they don't have the money to chip in for infrastructure programs. what are they going to do. stuart this, is about leveraging extra money, look at infrastructure, not necessarily highways and transportation projects but states account for 80% of the spending on infrastructure projects. this extra money is to get them over the hump. stuart: we want to get this done, we want to build this infrastructure. we want it. everybody wants it but in states like new jersey, you know, they don't have the money. they really don't. >> yeah, it is going to be difficult. why part of the administration's proposal has 100 million in
incentive packages, i'm sorry, 100 billion. 50 billion to rural communities and most of that money is going to go to the states, to the governors, to figure out where they want to put that money. so it is going to allow the states to have more flexibility where they spend their federal money. you're right. we need more. i actually see this as a down payment. stuart: i want to talk to you about the private side of this. i mean the president wants to bring in private enterprise to get this 1 1/2 trillion dollars worth of infrastructure spending. but how does a private company get its money back? how does it make a profit on investments in infrastructure? are we talking toll roads? >> well, we're talking a lot of different ways that companies can come in. they can help finance through private activity bond, through some tax treatment that the plan comes up with that brings the borrowing level down closer to what municipalities can get through public debt finance.
so, not just on tollways. on water projects in particular, something that, i think the administration has been looking at quite closely. stuart: you're counting heavily on leveraging. the feds chuck in 200 billion. that is leveraged to 1 1/2 trillion. that is a big and very optimistic bet. >> well, i have to agree with you, stuart. if you remember, originally, the dollar value was 100 billion to a trillion. that is now been moved north to 1.5. even i'm a little pessimistic whether we're going to get to that point. but when we're looking at this plan, it is an offering, it is version one. there are things that need to be tweaked and modified. this is the first time i can think of in 40 years where we had a president and administration wants to be serious about infrastructure. if we can't come together to figure this out, we may be talking about this for another 40 years. stuart: biggest thing in my mind, speeding up approval process that would make one huge
difference. sir, thank you for joining us. we're much obliged to you brigham. >> thank you, stuart. stuart: shortly, in fact just seconds from now, we'll be joined on the radio, we're joining him live on the radio, brian kilmeade is the host of the "brian kilmeade show." i believe bang, we are with him right now. you have to time this thing to the second. >> right. stuart: i want, brian, i want your take on the email that susan rice sent to herself at the very last second of her power on inauguration day which said president obama had ordered the fbi to handle the russian investigation by the book. what's your take on that memo? >> i think she is trying to get on the record for something but more importantly was she told to get on the record for somebody else? think about who is in the meeting. you have sally yates, president obama, vice president biden and susan rice and james comey. he never mentioned a january 5th meeting. maybe he will get around and say
i wasn't only one with the president at the time i didn't think it was important at the time but they talked about the investigation or she wouldn't have written the memo. and i saw sekulow, jordan sekulow talk last night about this were they spotted? was this meeting found out? were they trying to get ahead of it so they don't look like they were caught not telling the complete truth. what this was done, written, officially after they leave power 12:15, pushed out to the national archives in case somebody wants to look at it in the future to write a memoir or look at years in the white house. stuart: it is covering your tracks. >> i think so, it is covering your tracks. you're quite right. january 20, inauguration day, president trump took office. at 12 noon he took office. susan rice writes the memo at 12:15. you're quite right, who tolder had to write the message and why did she write it? i say covering tracks.
last word to you. >> i think i would like find out what they talked about january 5th. she is getting 10 questions from senator grassley and senator graham. she has nine more days to answer them. she is lawyer. she works for a lawyer. she has lawyers all around her. they will finesse their way through this which means we won't actually get answers. my problem is the credibility issue. remember bowe bergdahl served with honor and distinction. no one believed that we find out video caused benghazi. fy different stations. no one believed that. she has a rich background and obviously very intelligent and trying to put one over on us. a lot of people talking to us this morning on facebook from what we did this morning promoing the show and on the show are a little ticked off how we have to go through these mysteries again. stuart: best story of the day, winter olympics, choe wee chen,
she qualified for sochi olympics at 13. she was too young to compete. this young lady is a phenom. >> she said before her last run she already locked it up. think about how many years we will get a chance to see her. four more after this. her parents leave south korea for a better life in america. when she won her gold, her dad said that is my american dream. emigrating, emigrating to the u.s., the traditional way. you sign up. you apply, you go ahead and you serve. next thing you know you're american citizen. your daughter in this case win as gold medal in native land, south korea. that is a great story. stuart: i think we hear this far too infrequently. immigrants who like america, succeeded in the american dream, and say so. you just don't hear that often enough. that is my opinion. last word to you. >> i mean absolutely the same thing. we haven't heard the last from her. there are other competition there is.
there are other stories besides north koreans presence there. then this. i hope we get more of that. the fact that the russians are there is a story. the fact that the north koreans are there is a story. the fact it is unbelievably cold is another story. almost impossible to go outside. but here is the good story. pure competition and competition we can understand. stuart: yes. and a wonderful winner, a fine young american. good stuff. brian, thanks very much for joining us. i'm joining you. not sure which way around. we appreciate being together. >> the magic of a simulcast. stuart: thank you, brian. we'll at the you what we got coming up. the company that makes the narcan nasal spray developed a new spray to treat opioid overdoses. the ceo is on the show in a moment. first the situation in venezuela is getting worse. much more dire if that's possible. reports that parents leave their children at orphanaging just to get something to eat. we keep saying the collapse is come but how much worse can it get? we have the latest for you.
check the big board. look at this, we're down just 72 points. we're not going to say stability but we could. ashley: we could. stuart: we're down 76. leave it at that more "varney" after this. ♪ we've been preparing for this day. over the years, paul and i have met regularly with our ameriprise advisor. we plan for everything from retirement to college savings. giving us the ability to add on for an important member of our family. welcome home mom. with the right financial advisor, life can be brilliant.
♪ ashley: in the last hour congressman bill highs singer, those high speed computer programs, they are having impact on the markets and need to be watched carefully. take a listen. >> high frequency trading is part of the marketplace. you have seen players tried to get involved and do something on their own, whether it is iex or others trying to figure out exactly how to smooth this out a little bit. securities & exchange commission is going to have be involved in this conversation, but a conversation we should be having. stuart: not much you can really do, be honest? >> there are certain things regular torely you can do. technology is huge. we don't see an end to how fast or how quickly it could be done. people are thinking in innovative ways. we have to make sure the markets are sound, that's the bottom line. ♪ ol. but before you decide, you should know that chevy silverado's are the most dependable,
stuart: all right. we have the dow jones industrial average down, no, sorry, we're looking at pepsi. ashley: that's okay. stuart: pepsi, declining soda sales. snack sales up, soda down but the important news from pepsi is, they're giving bonuses up to $1000 to their employees because of the tax law. okay. general motors, the stock's down. it announced it is closing a plant in south korea and it says more cuts in asia are possible. 41 bucks on general motors.
let's get to venezuela. reports that parents are leaving their children at orphanages because they don't have enough food to feed them. that is a shocking story. vanessa newman is with us, the author of, "blood profits." can you confirm this, this is indeed happening? >> yes, absolutely. thanks for having me on again. i'm always the harbinger of horror on this show. stuart: it's a terrible thing. we keep hearing that venezuela is collapsing. >> it is. stuart: it is, but where is the end point here? >> well i keep hearing rumors, the keeps churning, volume is going up, i was there, the border crossing depicted in the media last week about 10 days ago and yesterday morning i was sent a video by my friend who run the ngos who take care of the refugees of the military sending armored personnel carriers with 50-caliber guns on top to stop the flow. it has gotten so bad that the locals are beating up the
homeless venezuelan refugees, there are too many of them, even though they consider themselves as brothers. they're militarizing. brazil sent military to the border. and have now made it illegal for any of the locals in the colombian border towns to feed the hungry venezuelans. stuart: good lord. so they're trapped. itthey can't get out. they haven't got enough food. they're totally trapped. >> exactly. >> what is the endgame? this can't go on forever? >> it can't go on forever. i was on the phone with a friend of mine, one of the big leaders and leads one of the venezuela business syndicates and they have flown down to discuss what is going to happen. what you have now, hyperinflation will hit 13% a year according to the imf. so, but then you don't know, you also don't have cash. let's say you need a wheelbarrow to buy a bunch of eggs. you can't even get the wheelbarrow full of cash. so it is hunger on proportion
that is much bigger than war. venezuela is suffering effects of a country at war. we all expect the other thing, that venezuelans have joined some of the terrorist groups because they were giving them food and uniform and the job, that have launched 11 terrorist attacks in colombia. the colombians won't take this sitting down. they will go and cross the border into venezuela and then they will have military assistance from the u.s. then you have an uprising from within. so what we're looking at is perfect storm of military, humanitarian crisis, counterterrorist operations. stuart: that is what you think will happen? terrorists crossing into colombia, colombians retaliate. they go into venezuela. >> yep. stuart: america helps the colombians going into venezuela it is over, that is the scenario you see? >> that is what i see. that is what i see happening as well as more violence within venezuela because of the food. people are now just killing each other for food. and the border towns, when they
do escape i see them, selling gasoline, selling their own hair, selling their bodies, giving away their children. i saw it first-hand last week. this week it is much worse. this doesn't last much longer. stuart: not much longer. okay, you were at the border where colombian troops are pushing them back into venezuela. >> they're pushing them back. now the venezuelans, some of the venezuelans are saying please, they are not, never really advocated for american intervention before but now they're like, we're so hungry, this is so bad, please come help us. stuart: would you like to see that? would you like to see america intervene? >> yes i would, actually. i think there is no democratic outlet. the calls for some, you know, joke of an election, on lynn anyone's birthday no -- lenin's birthday no less. it's a joke. people are starving. people want america back. and are viewed as liberators. so i would very much like to see
them come in and help. stuart: vanessa, thanks very much for operating as our reporter on the scene so to speak. we appreciate it. >> thank you for having me. stuart: horrific story. bucking the retail trend. stores are for experiences like, the pga golf store customers are offered the full golf experience. that is how to get ahead. the ceo of the superstar pga is next. ♪ hi, i'm the internet! you know what's difficult? armless bowling. you got this, jimmy! you know what's easy? building your website with godaddy. pick a domain name. choose a design. you can build a website in under an hour. now that's a strike! get your domain today and get a free trial of gocentral.
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and here's the best part... you still own yohome. call now! take control of your retirement today! stuart: the professional golfers association, the pga, they have got a superstore. it offers customers the experience of golf. you can try on the clothes, you can go to a putting practice at the center right there. dick sullivan is the pga superstore ceo. he joins us now. dick, as i understand it you're doing quite well with offering experiences? you had a record year in '77? >> thank you, stuart. yes, we had a phenomenal year last year. it is really fun. stuart: and the key, i keep going back to this is, you don't just sell them a shirt or sell them a golf club. you let them try it on. you give them the experience. that's your success point,
right? >> yeah, it is totally different. we're so different than a retail store. we gave over 50,000 lessons last year. we have clinics our stores for kids. it is very similar to what we did at home depot. as you know arthur blank is our chairman, our owner and we many millions of bird houses at our stores. we make it fun for kids. we make it fun for golfers. we have leagues. everybody is playing in leagues, which is different than any retail store that i know of. stuart: that's true. am i right that golf had its setbacks in the past few years? it takes a long time to play a round. it is rather expensive and tiger wood is no longer dominating the scene. i think i'm right in saying golf has had a setback? >> i think if you go back a few years ago there was consolidation, and i think now though, the i think we've turned the corner. i really feel positive. just came out of the pgo show in orlando. there was so much positive vibe
out of the show. i think i read other day, callaway first time in 10 years surpass ad billion dollars in their revenue. i think we've changed the corner. i think more kids are coming into the game. golf round have stablized. we're seeing great sales as reported earlier in our company. stuart: well, i'm a fan. i watch on tv every saturday and sunday afternoon. i just love to watch it on tv. i don't play, however. you know, i don't do that. but thanks -- >> we need to get you into a store. we need to get you in a store, stuart. i was in new york last week and new jersey. we have stores in new york and new jersey. we have to have you come over to the store. we'll custom fit, whatever clubs you need. stuart: if you're not careful i will come. thanks for joining us, we do appreciate it. good stuff. >> thank you, stuart. stuart: i say the state of the economy hasn't been given the prominence it deserves. there is plenty of good news. small business reporting much better profits, wage increases. i will have my take on the economy, the great economy, after this.
stuart: the remarkable state of the economy has not been given the prominence it really deserves. the debt bomb and the trillion dollar deficit, they've taken all the headlines, we turn to the negative too often. so let's turn positive. there's plenty a very good news on the economy, small business, for example, so important for the american way of doing things. mainstream is roaring, small business owners are not only reporting better profits but also ready to grow and expand. profit expectations best since 1988, wage increases best since 1989. that's from the small business organization, small business is booming. big business firing fewer people than any time in a generation and hiring just about anybody they can get. odds are we will see a 3% unemployment rate by the summer, haven't been there for 20 years,
job openings at a record high and we are spending money too. we have come out of a terrific holiday shopping season and the retail guys forecast more to come. three and a half million people getting a bonus with more to come, tens of millions getting a bigger paycheck because of tax cuts despite the recent pullback your 401(k) is way back, in short, we have gone from slow growth to rapid growth, from pessimism to optimism, that's important because spro -- prosperity, it's a feeling, scope and upward mobility, it feels really good. that's where we are on the cusp of prosperity after years of just stumbling along. america 2018, a pretty good place to be, the third hour of varney & company is about to begin. ♪
♪ stuart: for much of the morning we have been down 100 points. now we are down 76. we don't have that much volatility and the loss is limited down 80 as we speak. that's not exactly a huge selloff, i'd say. let's bring in ron carson with the carson group. do you think that is good for the stock market in the longer term? >> for sure on the longer term n. the shorter term, yeah, we -- we are going to have increased volatility, as you may recall last fall we were talking about the fact that tax package in the short run could be negative for the market because interest rates would probably move higher, the fed would raise more than expected and i think that's what we are seeing play out here, the wage numbers are stronger, inflation is starting to percolate in people's minds, that's a four-year high and
there's some adjustment going on but the point you make are right on. i mean, main street is doing great. people are actually -- have real opportunity, feel great about jobs, ceo's feel wonderful being able to make decisions because they are a businessman running the economy. make sure you have appropriate levels of risk in your portfolio, longer term, this reminds me of reaganomics. stuart: the market did extremely well with ronald reagan. all the spending that will lead to huge deficit, a trillion dollars in 2019. you keep hearing this debt bomb, keeps on surfacing, is that a worry for you? >> you know, debt is a real issue. if you look at debt to gdp, five times higher than what it was in 1982. so even the ratio is lopsided but that's really because in my
mind we have had mismanagement of the economy for such a long time. we have to get growth, if we can have growth actually starting to occur in the economy, you will think of growth or gdp on the equation, the debt will take care of itself. really debt, what are we doing with debt, infrastructure or needless government bureaucratic spending that provides nothing for us in the future. i think now we are on the right path, we will get the economy growing, debt is a concern but it will, i believe, work itself out. stuart: reaganesque almost. i want to bring bill cassidy, republican from louisiana. senator, it seems to me that gop has abandoned financial restraint, we are all big spenders now, what do you say to that? senator -- senator cassidy, can you hear me okay, senator? no, you can't.
we will try to get the audio fixed. in the meantime i will show you the big board, literally seconds ago i said we were down, what, 40 odd points? ashley: yeah. stuart: now we are down almost 100. a little volatility on the downside but that's nothing compared to what we had in the past couple of weeks. ashley: by comparison. liz: morgan stanley equity strategists said the s&p 500 at this level is pretty cheap. he's wondering if we missed the dip, it's 16 times forward earning, that's a cheap level. stuart: just look at it. now we are down 108, 106. there is a degree of volatility, okay, we have fixed the audio for senator cassidy, republican from louisiana. good morning, mr. senator, thanks very much for joining us, sir in. >> thank you for having me. stuart: gop seems to have abandoned all types of financial
restrain, you're big spenders? >> number one, i'm not a big spender, i voted against the budget. there's a lot of good things but should have been offset. so i can't speak for others, but i recognize what you said and voted against the budget for that reason. stuart: do you think there are any votes in real austerity, cutting back, there don't seem to be any votes for that? >> everybody recognizes the military has global responsibilities, that their budget is in strap and increasing amount of money are going to retirement benefits leading less for training and for maintenance material. that is what created, if you will, momentum for the bill to pass despite the fact that the spending was not offset. stuart: you voted against it? >> yes, i did. stuart: what would it take to make you vote for it? >> i would like to see the money offset. when they were spending for katrina, 33 billion-dollar package, that was offset by 1%
rescission by all federal agencies. 1% rescission was offset for relief for hurricane katrina. something like that or some offset would get me there. stuart: i want to torn immigration debate. we have a group of senators, republicans in the senate, they came up with a plan that basically you allow 1.8 dreamers to stay and get pathway to citizenship but you also build the wall, you end chain migration or you limit it and you end the lottery. that seems to be the kind of balanced approached that the republicans are taking but i don't think you'll get 60 votes in the senate for that, will you? >> i don't know that because it's whether or not democrats want a solution or they want an issue. if they want a solution for the daca issue, the president gave them the solution in the state of the union which is now in the legislation. you give border security, stop the human trafficking, the money laundering, the drug trafficking
and he will allow a more generous pathway to citizenship for the daca kids and more daca kids would be included. as the president said, you don't get everything you want. but he's willing to trade that for the increase border security. stuart: and you think you can get 60 votes for that? >> it depends whether democrats want a solution or an issue. if they want a solution, yes, we will. stuart: we had the audio problem but you came through for us and we appreciate it that. >> thank you. >> yes, sir. the city of chicago is digging out after nine consecutive days of snow. that's not been widely reported. 18-inches fell on the windy city during 9-day stretch. with temperatures warming up a little pedestrians are willing to look out for ice sliding off the high building above their heads. watch out. let's take a look at the news this morning, apple holds annual shareholders meeting today, we
might find out what they'll do with overseas cash, the stock is up just a fraction at 163. walgreens wants to buy drug distributor amerissuoce. opioid pharmaceuticals, invented the narcan spray, now they are developing a stronger version that could save more lives, the ceo of opian pharmaceuticals is with us. the new york times suggests that nancy pelosi is losing the grips of the democrat party. the white house rolling out the long-awaited infrastructure that would help rebuild the nation's roads, bridges, et cetera. up next republican mayor of fort worth, texas, we will talk to her about that.
stuart: uber will require drivers to take breaks after they reached 12 straight hours of driving time. uber says it'll make the drivers take six-hour breaks, they will make the app inaccessible during the breaks to prevent drowsy drivers being on the road. that's from uber. now this, president trump unveiling his infrastructure plan at the white house. he wants states to chip a whole lot of money.
joining us betsy price, republican mayor of fort worth, texas, betsy, your honor, welcome to the program. >> good morning. [laughter] stuart: your honor is the correct form of address, is it not? >> whatever you want to say, mayor or just betsy the fine by me. stuart: well, your honor, the president wants the states to chip in a lot of money for the infrastructure program. i put it to you, betsy, the states don't have the money, a lot of them are really broke, what are they going to do? >> many of them don't and many of the cities don't but some of us do have money and this will allow us to leverage those funds. we've already been successful leveraging that here in our part of texas and many other states too, but the good news is this cuts down on the regulation process, it'll give us time, it'll stretch the freshous dollars a whole lot further than if you're waiting ten years to get a project approved. stuart: can you explain the leveraging thing. a lot of people don't understand that and i certainly don't. federal money comes to you in fort worth, texas and how do you
leverage that fed money into even bigger investments? >> you know what we have been able to do so far, prime example is i-35, 3c project where we have a managed lane and free lane and private investors doing the managed lanes and they get the toll back on that but it's been incredible way for us to leverage the precious dollars that we do have against that. they also did maintenance and upkeep, the biggest problem with that project has been exactly what the president said, it took ten to 12 years to get it approved to move forward. stuart: senator schumer held up a big sign yesterday trump tolls, i think he's suggesting that you put a toll on a road, built this infrastructure plan and not very popular, how do the tolls go down in fort worth. >> the tolls in fort worth at first were not very popular and people who object to them, in fact, i would prefer that we had the funds to not have to toll
but offers the ability to deliver new free lanes, expansion resurfacing of the free lanes and the option to those who want to use it. stuart: you were in the meeting. >> i was. stuart: right there with everybody else, did the president or anybody say how these very -- very -- the states that are in a difficult financial positions, the new jerseys of this world and the new yorks of this world, how are they supposed to put money on the table, they don't have money? >> they really didn't get into that level of detail yesterday, a lot of that will be worked out. many of the states don't have money but many of them can ledge privatetivity bonds and cities fund 70% of infrastructure from their own budgets and from bond capacity. stuart: you think some of the states are getting a real hard time, have been is hit with the salt, high-taxed states, they
have big government states, they are going to take another hit, aren't they? >> it's quite possible they will, that's right. those of us who are in a better business climate, lower taxation states are liable to see a lot of benefit from this. stuart: are you going to get influx of people into fort worth and elsewhere in texas coming out of california, are you seeing it yet? >> we are already. fort worth gained 25,000 citizens a year. we have been one of the fastest-growing cities in the nation in the last 15 years. we moved from the city of 500,000 to nearly 900,000 in nearly 12 years. stuart: i guess that's growth and progress, that's good stuff. >> it is, indeed. stuart: your honor, thank you very much for joining us. we like success stories. >> thank you for having me. stuart: sure thing, ma'am, appreciate it. how about this from remington, gun maker, filing for bankruptcy, they will stay in business while they restructure debt, they lost some of their investors after one of the rifles was used in the sandy hook school shooting six years
ago. amazon laying off several hundred employees, most of the layoffs happening in seattle. they are going the use robots, i believe, they are going to use technology, automate, that's what they are going to do. unusual move for amazon which usually expands all of the time. facebook is losing younger users to snapchat at a faster rate than originally thought, we are talking about people age 12 to 17, meanwhile, snapchat which redesigned its app, getting some backlash for that. nonetheless the stock is up just a fraction but facebook is down sharply, down another 1%, down the 174. no financial broadcast can be complete without bitcoin, 8,525, $518 per coin. down a little. now this, legendary bond manager, in the headlines but not for market advice, he's selling rare stamp collection,
it's worth more than $9 million, the first sale is set for september and will include about 150 items, that's called filatolism. ashley: i think you just swore at me. [laughter] stuart: i'm off the script. meet the new california bald eagles, hatched in realtime through streaming cam. first sunday morning and the second yesterday afternoon. you really get it all on varney & company. ♪ ♪
stuart: we have some headlines for you, extraordinary images from space reveal a snowy paris captured by european space station satellites showing rainfall. the winter storm was so badly the eiffel tower had to be shutdown, unusual. they saved american from burning building. to two firefighters spotted it and others contained the fire,
nobody injured. they did the right thing. the robots getting smarter, boston dynamics inventing robo dog able to open doors, it has long trunk arms, open it is door with relative ease and opened the door for its buddy to go through, if you wait long enough -- ashley: i got it. stuart: ducks down. ashley: i got it. stuart: creepy. all right. move on. look at that. look at that. that's gigantic wild hog, dumpster diving in hong kong. happened outside a school. looking for dinner and siblings, offspring to say the least. liz: they are calling it
hogzilla. stuart: the company that invented narcan nasal spray, they are looking at another nasal spray, biggest overdoes killer, ceo of pharmaceutical joins us next. as for markets, we have settled down a lot. we have been in a narrow range all day minus 120, now we are down minus 59. coming up, we have a guy who say it is selling was overdone, he's not worried about a bear market, stay right there because you are going to hear him next. (female vo) breaking news from washington as lawmakers; (male vo) raging wildfires continue to scorch parts; (male vo) allegations of misconduct; ♪ oh, why you look so sad,
♪ the tears are in your eyes, mvo: how hard is it just to take some time out of your day to give him a ride to school and show him you support him. ♪ and don't be ashamed to cry, ♪ let me see you through, ♪ 'cause i've seen the dark side too. ♪ ♪ when the night falls on you, ♪ you don't know what to do, mvo: when disaster strikes to one, we all get together and support each other. that's the nature of humanity. ♪ i'll stand by you, ♪ won't let nobody hurt you. ♪ i'll stand by you, ♪ so if you're mad, get mad, ♪ don't hold it all inside, ♪ come on and talk to me now.
♪ hey, what you got to hide? ♪ mvo: it's a calling to the nation of how great we are and how great we can be. ♪ i'm alive like you. ♪ when you're standing at the cross roads, ♪ ♪ and don't know which path to choose, ♪ ♪ let me come along, ♪ 'cause even if you're wrong ♪ i'll stand by you. ♪ i'll stand by you. ♪ won't let nobody hurt you. ♪ i'll stand by you. ♪ even in your darkest hour, ♪ and i will never desert you. ♪ i'll stand by you. when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price.
stuart: dare i say stability, if i do, we will probably go all over the place. we are down 100 and down 100 for much of the take give or take 20 points on either side. our guest says that all selling is overdone. he has a book out too, crisis of responsibility. david, ceo of the bonson. welcome to the program. >> good to be with you. stuart: you're not worried about a bear market, you think we are going up from here, do you? >> i never worry about something happening in the short-term
because my clients are investors and not traders, i have no opinion what happens tomorrow or thursday, for that matter, probably not friday either. what i do care about is the next big movement that people not panic themselves out and miss out on something that's fundamentally important to portfolio result. stuart: is the next big move up? >> the next big fundamentally is up. there's always things that can happen that are fundamental that can shake things up, something in china, geopolitical event, military event but all of that not withstanding, a lot of reasons why we are able to see that. stuart: you don't worry about rising interest rates, i say that because the yield on the ten-year treasury is 285. i don't think there's much reason to worry about 285 ten-year yield. >> a 285 ten-year yield is not something to worry about. if inflation is coming, the yield would be moving higher and put strain on the multiple, you
would want to put on earnings. that isn't what i see happening. the idea that higher wages creates inflation is one of the most absurd economic things that is uttered in our society. it drives me bonkers in case you can't tell. the reality is that higher wages last time i checked are a good thing. we are talking about 2.9% year over year in wages, that's what putting everything coming on the back of biggest corporate tax return in again ration, 2.9% problematic, ultimate real inflation would be an issue. it's not going to happen overnight. we are going to see cpi numbers tomorrow. plenty of things to be monitoring but ultimately growing earnings drives the market, earnings are growing. stuart: now you have clients and they pay you to tell them where to invest. i know they do, they pay you. >> yes, they do. stuart: good living. treat our audience as non-paying clients, which stocks are you
buying? i understand that you are into blackstone. >> we love that stock, classic case of nonbalance sheet sensitive, meaning, free crash flow generator that's sharing cash flow with us. stuart: $33 a share now going to what? >> fourty-five dollars. stuart: david, be careful there. >> you ask them where it's going. 8% yield while we wait. stuart: 8% yield. you should have said that right up front. >> i'm leaving you in suspense. stuart: next one is johnson & johnson. >> that's one we owned for a long time. i intend to own it for the bulk of my career. however, it really got cheap in the sell ah last week. it was sitting at 145, came back to 125. i didn't think i would get a dip, we are buying more. stuart: where is it going to? >> i will answer if you want me to but it's not important. the point is it's growing
dividend every year until kingdom come. stuart: exxon. >> got a little cheap and the arguments for the integrated oil that is we are going to benefit downstream and upstream, fundamentally, they just simply have great margins right now that they are able to sell into the marketplace. undervalued stocks. stuart: you know what got me going blackstone with 8% yield. >> they have to share the free cash flow. stuart: where have i been? free advice for viewers. >> any time. stuart: what do you mean any time? be careful. pepsi, the latest big company to announce bonuses because of the tax law, they'll pay a total of $100 million to their workers, up to a thousand dollars a piece americans for tax reform guy, he keeps track of all of this, this is a big one, isn't it because there's a lot of workers at pepsi? >> it is, the numbers keep
growing but we have complete list of everybody who said we are giving a bonus because of the republican tax cut, we are over about 3 and a half million americans, we should hit 4 million probably by friday but we will let you know. stuart: so you think -- the time where every single time, fortune 500 companies pays a bonus? >> yeah, we keep hearing from companies, well, we are going to do it when we have earnings report, they make these decisions, it didn't all happen in january. i don't think we have seen more than a tenth of the fortune 500 companies reporting but we are getting there. stuart: okay, you're a tax guy. you don't like taxes, you're all about cutting taxes. but how do you feel about the government spending all this money, an extra $300 billion in the next two years. i mean, you know, we face a bet bomb, you can't be happy about that? >> no, the government is spending too much money, now to the increase is expensive, you
know, look, we have a serious of reforms, i would be much happier if the pentagon had spent the last year looking for reforms in spending and then come and said, well, we could save this much, they own a lot of spectrum that they don't need that they should be selling off. they own a lot of land that they could be selling off, they have a pension system that needs to be reformed, we need to move towards defined contribution. stuart: we are not. i can't see a political party and certainly not the president who does not want to spend money, we've all become big spenders haven't we? >> there's good news in the budget but a list of things that won't happen until the republicans get the house and senate reelected. they want to reform a series of the entitlement programs, particularly welfare, some of the things, i think, they can do immediately, as for social security number if you want to get a refund on your federal
income tax so that there's only one of you and it is you. they ask for social security numbers so the benefit that is people get to make sure that people are citizens and they actually live here and there's a person -- stuart: it just worries me when we say that we should do this, but we don't, we keep on spending and we have a trillion dollar deficit 18 months from now. last word to you. >> i agree. the reform is written down all things that can and will pass when we can do it with 51 votes in the senate. this can be done through reconciliation, so i look forward to that. i don't think they happen this year. they decide not to do reconciliation for reasons that i don't understand or agree with but we have a republican house and senate then, all of the list that they want to do that are substantial on reining in government spending can be done. stuart: i'm out of time, thanks for joining us, appreciate it. thank you very much.
next with the opioid crisis. the pharmaceutical company that invented the narcan nasal spray is working on a new nasal spray that targets a specific type of opioid, that would be fentanyl, ceo is with us this morning, roger, welcome to the program. now then, you are developing a new nasal spray that goes after fentanyl, what's the big deal here? why that? >> fentanyl is a huge concern. we have the opioid crisis overall that continues to grow. within that, the biggest issue is these synthetic opioids which fentanyl is the main one so over 50,000 opioid overdoes deaths in 2016. about 20,000 plus of those deaths contained fentanyl, a more potent opioid, stronger than heroin, cheap to make, easy to make, it's a real concern. stuart: so you come across someone who is od'd on fentanyl
and if you put that spray, it saves their life, brings them back to life? >> similar to what nacan works. it gets them breathing again. fentanyl is an opioid, i might add that narcan, which is the brand, does still reverse fentanyl overdoses, the big concern is that fentanyl is such a long more active more potent opioid that people can potentially stop breathing against once they've been revived. our new product has a longer life, hangs around the body longer so it protect it is longer acting affects of fentanyl. stuart: you developed this, opiant pharmaceuticals developed this. >> we are working on the next generation. stuart: when do we see it?
>> we met with the fda last week. we presented our data to them, they gave us a very straightforward way to getting towards approval. we are aim to go file an nda, new drug application by 2020. stuart: if successful all first responders would have spray? >> we would see how that plays out. again, we see this product being -- having great potential and if the opioid epidemic continues to evolve as it is the likelihood of requiring longer acting products will be greater. stuart: i'm sorry to cut it short, are you public or private? >> public, opmt. stuart: dr. cristal, thank you very much for being here. aetna facing legal trouble, they're a health care company under investigation after a
dr. jay ken, admitted, he never admitted patient review records, company in southern california medical director, both of california's regulators will investigate how aetna makes coverage decision. no impact on the stock. it's actually up 8 cents. new york times suggests that nancy pelosi may be losing her grip on the democrat party. we will ask our leading conservative voice in california about that in just a moment. also in california they could see 4-dollar gas there for the first time in more than two years. we will explain it all momentarily. ♪ you can't predict the market,
nicole: i'm nicole petallides with fox business brief. collaboration between disney and alibaba in china, facebook, twitter, not allowed there. they are blocked in that country. alibaba and disney, of course, there's obviously regulations in china but in this case now it's going to 30 million households beauty and the beast, duck tails
stuart: california drivers could soon be paying $4 a gallon for gas. gas buddy forecasts that the price hike could come as soon as memorial day, 4 bucks, memorial day, the average statewide is now 3.30, that's up nearly twice since the gallon from last month, gas buddy predicting 4-dollar gas in california. "the new york times" reports several house democrats are questioning nancy pelosi's leadership. national radio show larry elder is with us. this is a story on the front page of "the new york times". ms. pelosi losing her grip on the democrat party. well, she's from california, you're in california, did the times get it right? >> well, i'm hoping that she's not losing the grip on the democratic party because i want somebody who thinks daca is more important than growing the government. i want somebody who thinks that fighting climate change is more
important than the growing class. the democratic party is at a cross roads, stuart, they lost an election to a guy whose agenda test quite well even if he's disliked by a lot of people. the agenda test well. people want the border secured. they want the middle class to grow, they are concerned about immigrants taking jobs from americans, the issues that donald trump ran on test well. that's why the democratic party has a huge problem. what are they going to do? are they going to drop daca and start talking about cutting taxes on rich people? are they going to become more republican-like in the problem is they haven't won the white vote since 1964, they decided to win the left vote through immigration. and something that the american people are now having reaction to. the american people are in trouble and don't know where to go, they have a 77-year-old leader named nancy pelosi that believes that a thousand dollars are crumb, a net worth of $200 million and she's out of touch and young democrats
realize that. i hope they don't realize that until 2020. stuart: california is totally split, from san francisco, to los angeles, to san diego, that is out there on the left, dominated by greeners, unions and leftist generally, the rest of the state, the imperial valley -- >> is normal. [laughter] stuart: it is. >> it's normal. stuart: such a total different in the state and that's not going to change. >> absolutely, absolutely. and when you drive through the central -- center of california during the election in 2016, you can actually see trump signs, i didn't realize i was still in california. there are two very different states and it kind of is democratic party, which way are you going to go, are you going to talk about growing the middle class, growing the working class, talk about lgbt rights and fighting climate change and 15-dollar minimum wage and all the things that obama was pushing which gave us the worst
economy recovery, is that what you want to do and lose more elections, then stay with nancy. tauter tauter but you -- stuart: but you know it's not going to change. in your heart of hearts, in vowr -- your california that will never change? >> well, i don't know about that. a lot of rich people are beginning to leave the state as margaret thatcher pointed out the problem with collectivism you run out of people's money and we are running out of other people's money. a lot of ceo's still rate california as the worst state of all 50 in which to do business. sooner or later people are going to wake up and realize that there's an iceberg and take evasive action. stuart: you still have the problem of voter registration, and illegal can get himself or herself, they can get a license to drive and as soon as they get -- coming with that license, they have reghted to vote,
registered to vote. you can mot police the system, they're not supposed to vote but you can't police it, can you? >> and illegal al line is not supposed to get automatic registration to vote but the concern is whether or not they'll be cracks that that can fall through. but in theory, anyway, and illegal al line is not suppose today get a registration to vote, in theory. stuart: right, if they do vote, by the way, the proposal in california says there's no penalty, so this is encouragement to get out there and vote illegally. >> that is true, if your name ends up on voting rolls and you're illegal alien, there's no penalty to you. that is true. stuart: got it. larry, we will solve california's problems one day but not today, appreciate it. keep plugging away. >> i will. stuart: now this one, campus watchdog group rates california berkeley the worst on free
speech. new york's university and harvard made the top 10 list. bottom ten in my opinion. a couple of stocks we are following, barnes & noble announceing staff cuts. the market seems to like it. really going nowhere. ge, they have another downgrade, we follow it closely to see if it's still around. they are at $14 a share. a newly uncovered memo from susan rice raising questions about president obama's role in the russia investigation. this is serious stuff. napolitano next on that.
stuart: two republican senators calling on former national security adviser susan rice to explain what they call an unusual e-mail, she sent it to herself at the very moment the that president trump was sworn in, why did she do that? it was about president obama and the russia investigation. president obama began the conversation, she's referring to a meeting january 5th, about a meeting with the fbi, he began the conversation by stressing his continued commitment to
ensuring that every aspect of this issue be handled by the intelligence and law enforcement communities by the book. in other words, his hands were clean. all rise judge andrew napolitano is here. do you mind me adding the last line. in other words, his hands were clean? >> no, i don't mine. a meeting that he didn't know about, sally yates was running doj, jim comey was still the fbi director and susan rice. those five were identified in the memo, the e-mail from which you just quoted. she writes it 16 days after the event that she's purport to go memorialize. do it the way jim comey does, write the e-mail as soon as you leave the meeting on the car on the way you are being driven on the way back to office, you don't write it 16 days unless something came to her or her former boss' attention in that 16-day period that required this sort of over the top goody too
shoes memorization. stuart: or somebody told her to write memo at the last memo to keep president obama out of the russia investigation. >> which she did more harm than good because of the 16-day lapse and this was buried in the national archives of all places. now, is it in the context of other emails, we will find out. will she answer questions about this, they are, i believe, going to subpoena her before the senate judiciary committee. this is one small part of an enormous investigation by the senate judiciary committee, senator grassley and graham taking the lead as to whether the instruments of government in the obama administration were used either a to prevent donald trump from winning or b to frustrate from governing him. stuart: look, i think the whole thing is unraveling. we are learning piece by piece and all of the development that is we hear about are negative
for president obama and for the fbi and the justice department. >> yes. stuart: it's unraveling, judge. >> yes, yes. i'm a little down because i spent all morning watching this hearing and every time there's a juicy question the answer is, we will tell you that it's secret this afternoon. it burns me up like this that they know the secrets, they work for us and we don't know them. so they can cherry-pick from among the secrets for political narrative and we don't get to to see from which they have cherry-pick. stuart: calm yourself. what's the italian calma, calma. more varney after this. i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7.
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said stability. ashley: we started down 150. we kind of calmed it down a little. stuart: we have been active trading now for 2 1/2 hours, almost exactly, we're down 85. not exactly volatile. >> right. stuart: see what you do for you, charles payne, sittings in for neil? >> is this the calm after or before the next storm? charles: i'm charles payne in for new cavuto this is "cavuto: coast to coast." the president is saying it is now or never from a "dreamer" deal. connell mcshane is at the capitol. reporter: members the senate have a chance to go back down to the storm to propose amendments. items like daca and border security that we heard so much about. the president did have