Skip to main content

tv   Varney Company  FOX Business  April 4, 2018 9:00am-12:00pm EDT

9:00 am
i worry about the markets being down and worry about confidence, those few can kiss my grits. maria: throw f- bomb and we will block you. [laughter] stuart: we hit them, they hit us. trade war, stocks sell off. hold on a minute. the tariff proposals that emerged in the last 24 hours are just that, they are proposals, nothing is being imposed, in fact, china today talked to commentary period, talks, negotiations continue. just backtrack for a moment, yesterday america detailed $50 billion worth of tariffs in china. this morning china details 50 billion worth of tariffs to
9:01 am
america and markets start today selloff, here is we are to start today, loss of 500 points, 31, big drop for s&p 500. look at that, triple-digit loss for the nasdaq, across the board stocks are down. no surprise, america's exporters like boeing and caterpillar are taking huge hits, would you look at that, boeing down 4%, cat down. so too are car companies which would be hit by extra tariffs, they are all down. the words trade war have clearly upset the market. is it an emotional response just to those words? well, we are going to find out. i've got one more big development, president trump announced he would use the national guard on the u.s.-méxico border, he's had it with an out of control border and the failure of control to do much about it. yeah, another big day and varney & company is about to begin.
9:02 am
♪ ♪ stuart: all right, let's deal with the shooting at youtube headquarters yesterday, ashley, who was the shooter? ashley: 39-year-old nasim aghdam, she traveled to san bruno where the headquarters of youtube are, according to reports she was upset with youtube because she said they stopped paying her for the video she was posting and she believed that her views were being -- she was missing and she was found sleeping in a vehicle near car park near youtube headquarters but it's unclear whether the police found that she could potentially be heading to youtube to, you know, to open fire, which is exactly what she did, three people were wounded,
9:03 am
one man is critically injured, two women seriously injured before she took her own life. stuart: got it. president trump tweeting about china's proposed tariffs literally 55 minutes ago this came across, we are not in a trade war with china, that war was lost many years by foolish or incompetent people that represented the u.s., now we have a trade deficit of $500 billion a year with intellectual property theft of another 30 billion, we cannot let this continue. again, look at futures, we are going to open sharply lower all across the board, trade war fears hitting stocks. i want to go back to boeing, biggest loser among dow 30, right now down 4 and a half percent. that shaves about 150 points off the blue chip average. just that one stock boeing takes the dow down 150 points. how about those tech stocks? look at amazon for a start, down
9:04 am
another 2%, that's $30 lower, the president maintains and continues his attacks on amazon. all the rest of the technology stocks on the downside quite significantly. on days like this you turn to this man, charles payne, do you think that the selloff premarket is an emotional response to the words trade war and later this morning, maybe this afternoon we will settle down? charles: i know we will settle down and i agree. it is an emotional response. there's no news since we close -- we knew we had 50 billion-dollar trade tariffs with more specific detailed items and we knew china said they would respond in kind. none of this is knew. both sides said it's proposals. given themselves 60 days to hash it out. we will have talks here, what people need to understand and realize and president trump's tweet hit at that, if people are
9:05 am
saying and mainstream media banging away at the administration's use of tariffs, right, if you consider tariffs to be the key tool in the trade war, then we've been at one for a couple of decades and we are losing mightily. stuart: right, as the president pointed. charles: as the president pointed. since late 1980's china's economy is growing 10%, they pulled 10 million people out of poverty. a wonderful thing, as they have been doing that our nation has come to grinding halt with respect to the kind of growth. another part that's not getting played enough and we need to pay attention to, this is not about fixing trade today, it's about slowing china-innovation technology. i went through the whole thing and there's a key focus on made in china 2025. remember china put out a communicate, they made xi emperor, being innovation nation
9:06 am
by 2020, to be global innovation leader and be power house of technology by 2050 and including hopefully replacing america as the world's most dominant economy and currency reserve. ashley: you know how they are going to do that by stealing -- charles: that's how they got the jump-start. there's couple of reports that said of the unicorns, these are billion dollar companies around less than ten years, we have 105, china has 96. they are catching up mightily. they have been able to rip us off, so this is a two-prong battle. riding the ship now but slowing long-term goals to sur plant -- supplant us because we are thinking weeks in the country, they always have 15-year and 30-year plans and they are in the middle of one right now. stuart: you approve of the
9:07 am
president's hard stance? >> i do. to charles point we have been in trade war but we haven't taken the shot yet, now is the time. charles: the only thing i would do different is i would articulate to american public. what could be painful now and what the outcome would be. he should articulate now rather than letting mainstream media paint the picture for him. stuart: there you are. all right, do you -- this is the emotional word, trade war, trade war, that's what's taking the market down so much first thing this morning, what's your position here, do you approve of the president's strong stand right from the get-go? >> no, i think charles and ashley are wrong, they are wonderful people and smart but wrong on this, china is our natural trading partner over time, they are advantages in china, first person in modern times to go to china and in october of 1970, this is a
9:08 am
wonderful country that's growing rapidly, to catch up to the rest of the world. now, i'd like to make two things about trade wars if you use the word that way, every time we've had a major trade war-type of thing, 1922, 1929, 1974, all of these periods have have been huge drops in the stock market, all the times we've had freeing of trade, clinton, under reagan, under the 20's, we had huge rises in the stock market as well. you know, these things are very, very important for -- stuart: let me jump in, art. >> yes, sir. stuart: number one, these are proposals, there's not a trade war in terms of ta rays on this and that and on both sides. proposal. we are still talking. >> the second one starts with proposal. stuart: how do you stop china ripping off our technology and our intellectual property because we should do that? >> you don't do it by shooting yourself on the foot. you know, our trade barriers hurt us as well as china.
9:09 am
stuart: how do you know that negotiations are going underneath the surface to get rid of this intellectual theft -- >> let me just say, i talked to the president exactly on this topic and that's what he said he was trying to do, get the negotiations. it if it works out that way, god bless him and i really trust this very much for wanting to negotiate. i think he is a free-trader and wants to make this happen in the correct way, i'm terrified, however, by the threats and by the counterthreats of putting on tariffs. as you can see, you're following the markets, you said it very clearly, exactly when china announced the countertariffs the markets collapsed 500 points. that's the type of stuff that we don't need going into midterms, stuart, we don't need it to mess up the politics of the u.s. now after the midterms if you want to do a little bit, maybe then, but goodness gracious, xi does not have midterm elections, we do. stuart: okay, we clearly have a difference of opinion around
9:10 am
this table and wherever art is, i think he's in tennessee, nashville, good place. charles: can i chime in in one second? stuart: 20 seconds, go. >> the u.s. stock market is no longer a pure proxy for the u.s. economy. art is right, a loft the stocks in dow jones industrial average are making profits overseas, doesn't mean to u.s. worker sitting at home without a job. >> 1930's, i will go with you, 1974, i was there, i watched it, charles, you're wrong. once this thing starts, it then feeds into the main economy, that's where it is, it has a huge effect. charles: i'm not saying there won't be short-term pain. we must make a stance -- stuart: i have to wrap it up, charles payne and art. i hate to break up -- >> ding, ding, ding. [laughter] >> rematch some day. stuart: i will call it round
9:11 am
one. stuart: thanks, art, charles, look at this, dow industrials is down at the opening bell about 470-odd points, look at the nasdaq, home of technology, down big-time again. now this u president trump stepping up attacks on amazon, he says we are subsidizing them to the tune of billion dollars every year, he wants them to pay up and amazon down another $31, the president says he's prepare today send troops to our border to stop that caravan of migrants from crossing into this country. you'll hear what he had to say next.
9:12 am
welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn.
9:13 am
save up to 15% when you book early at hollidayinn.com that's it. i'm calling kohler about their walk-in bath. % when you book early nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors.
9:14 am
the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call to save $500 off bath walls with your walk-in bath, or visit kohlerwalkinbath.com for more info. stuart: no change, we are still going to be down very sharply at the opening bell, trade war worries is what has everybody going. down 400 on the dow. president trump talking about sending troops to guard our southern border, roll tape. >> we have very bad laws for our
9:15 am
border and we are going to be doing some things, i've been speaking with general mattis, we will be doing things militarily and until we have wall, proper security, we will be guarding the border with military, we haven't done that before, certainly not very much before. stuart: now the president just tweeted about the border this morning, here it is. our border laws are very weak, while those of méxico and canada are very strong, congress must that i think the obama era laws now. crime, listen to this, we will be taking strong action today. liz peek is with us this morning, what do you make of this, look, the president is taking a very strong stand on just about everything. >> well, he is, this is a signature issue for president trump, he came into office on the heels of president presidena basically opening up the border to remember the stream from south america and central america of young people and
9:16 am
families, thousands, tens of thousands who arrived tat border and americans were appalled, i think it was the first time that we saw that we had no control over our border, so for president trump seeing this caravan approach the united states really brought back a tremendous amount of political issues and everything else and his determination to make sure it didn't happen, so, look, other presidents, including president obama have used the national guard to control our border and to stem those kinds of people, we can't let that happen. stuart: i want to move onto another issue where the president has taken a strong stand and that's amazon. the president says they are getting a free ride from the postal service and he wants them to pay up. roll tape. >> if you look at the cost that we are subsidizing, we are giving a subsidy to amazon and we are talking about billions of dollars a year, the real cost
9:17 am
and a report just came out, they said 1.47, i believe, or about that for every time they deliver a package, the united states government, meaning the post office loses a 1.47, so amazon will have to pay much more money to the post office, there's no doubt about that. stuart: liz peek, does the taxpayer subsidize amazon by cheap delivery from the post office? >> yes, it does, citigroup did a pretty thorough analysis because they are interested in fedex and ups looking at the post office and what it charges and whether or not it's being charged full freight for delivery system, it is not and so i think that's pretty conclusive. stuart: i want to welcome back elizabeth mcdonald to our panel. has been away for far too long, you, i think, have a different opinion on amazon and the post office. >> i think liz peek is right and the u.s. president is right, the u.s. post office borrows money
9:18 am
from the u.s. taxpayer, treasury department, they borrow $15 billion every year, pay workers much higher than the going rrait, so, you know, the taxpayer does subsidize amazon, citigroup says it's 41% lower than the going rate is what amazon is getting. stuart: what do you say, ash? ashley: take amazon away and they will be out a lot. don't blame amazon, the post office has tremendous pension liabilities and union that makes it almost impossible to fire a postal employee. that's why they are losing so much money. they got bulk-rate discount. >> people working there not doing anything. [laughter] stuart: can i interrupt for one second? i think the president's beef is amazon is really a personal thing about jeff bezos who owns the washington post. >> you know how he gets back at them, he will give the pentagon cloud contract oracle instead of
9:19 am
amazon. stuart: amazon stock is way down this morning. stocks are selling off this morning, fears of a trade war, i use that expression lightly. larry kudlow, great guy, he will join us in our next hour. there will be more varney after this. welcome to the xfinity store.
9:20 am
9:21 am
9:22 am
i can tell you about... streaming the most free tv shows and movies on the go. yeah, and... xfinity internet. it's so fast! and you can save by... by getting up to 5 mobile lines included. whoa, you're good. i'm just getting started. ♪ simple. easy. awesome. come see how you could save $400 or more a year with xfinity mobile. plus ask how to keep your current phone. visit your local xfinity store today.
9:23 am
stuart: just coming out right now another trump tweet short and sweet, when you're already $500 billion down, you can't lose. we have other news and this one is on zuckerberg as in mark, as in founder of facebook, he is going to testify. when? ashley: yes, a week from today in house and commerce committee, the chair congressman, republican congressman from oregon says, look, we need to opportunity to find out what happens to our personal information online, we look forward to him, they say answering our questions. stuart: is it tobacco committee -- executive moment when they stand up? >> it could be. this is going to be a test of zuckerberg. they are going to say what about privacy controls and how do they
9:24 am
stack against apple, microsoft and google which let's users people turn off seeing the data. mark zuckerberg, he's going to have to -- you know what the earnestness will have to go. >> i think they can't control flow of data and all the algorithms of the world will not keep penetration from bad actors. stuart: ladies and gentlemen, do we have news for you today. look at that, we are going to be down 500 points at the opening bell and down 120 on the nasdaq composite. trade war, worries about that, zuckerberg testifies one week from today, the president has another go at amazon, it's all happening, folks, and you can follow it all here, the action begins momentarily.
9:25 am
9:26 am
sometimes, they just drop in. obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪
9:27 am
when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices.
9:28 am
stuart: now the backdrop to today's market action is the trade problem with china and president trump just tweeting about it literally minutes ago, short and sweet. when you're already $500 billion down you can't lose, he's referring to china's surplus of
9:29 am
half a trillion dollars a year with the united states. now that's the backdrop. what we have here is a stock market that will open sharply lower because the words trade war have been floated this morning. backtrack a little. yesterday the president detailed $50 billion worth of tariffs on china. this morning, about 5 and a half hours ago to be precise, china responded with $50 billion worth of tariffs against america, however, what everybody is forgetting in the expression trade war is that these are proposals to impose tariffs later. they've not been imposed at this point. there is a 60-day talk fest going on where the two sides literally talk this thing out. a trade war has not started and the president is maintaining his very strong stand. where am i going wrong? anybody want to call me out on this one? >> i think that's right, there's a -- the only thing that was
9:30 am
startling about this move from china is it happened right away and i think that is why the market is down so much. stuart: bells are ringing and when they stop ringing you will see trading, here we go, 9:30, wednesday morning, we are off and running and i expect to see a great deal of red and that's exactly what i'm seeing, right from the get-go we are down 471 points and -- all 30 of the dow stocks are in the red. that means they are down, you are looking now at a loss of 2% for the dow industrials. we are back to 23,500. ashley: if you look at the chart, biggest loser is boeing. >> correction territory. stuart: 2% loss for the dow. show me the s&p, let's see what that is doing this morning. broader-base indicater. it is down 1 and a half percent. show me that nasdaq as liz just said -- >> it's in danger. in correction.
9:31 am
stuart: 121 points lower. 1.75% drop today. that means it is negative for the year, but that loss on the nasdaq is not as big as the loss on the dow. why would that be? i will tell you why, because there's some huge losers among the dow 30 including boeing which is down $18, that's 5 and a half percent, that stock alone accounts for about 150 dow down points. caterpillar, major exporter, also taking it on the chin, down 5 bucks, 5.80 to be precise, that's 4%. how about tesla, still embroiled in all kinds of problems with production and what an earth they will do to get some money, the stock is down 15 bucks this morning, that is 5.7%. the automakers, now they would have strata riffs slapped on american cars going to china if the tariff proposals are acted upon, that's why all of the automakers, gm, ford, fiat,
9:32 am
toyota chrysler, especially gm, ford and chrysler. how about amazon, still under attack from the president of the united states, look it go down, $27 lower, 1.7%, 13.67. there you have it. the first two minutes of action, all in downside. ashley is here, liz mcdonald is back and we welcome you back, great to see you. >> missed you guys. stuart: liz peek -- [laughter] stuart: elizabeth peek is with us and so is david deets. david to you first, we are told this dip is all about a trade war problem, is it? >> well, certainly it's a knee-jerk reaction to what china did, that was the most foreseeable response that ever anyone could have made, remember, this is a mating dance, we have 60 days for the united states to bring up some legitimate beef on protection of
9:33 am
intellectual property, the way to bring people to the table is announce tariff, china respond in kind and now they will sit down. stuart: you expect a bounce-back? >> i think it'll be resolved. stuart: you are buying this dip? >> absolutely. stuart: say it again? >> i'm buying. >> korea and taiwan saying, who are you going to side with here, by the way, components end up in chinese products, this could expand to other countries and also it could hit nafta because china products, component come from canada and mexican-made products. stuart: i want to move onto amazon, they, amazon getting a free ride from the post office, he wants them to pay off. liz peek, do you think that amazon shareholders are in real danger here, the stock is down about 300 points already. >> clobbered already.
9:34 am
stuart: more to come from more presidential opposition. >> i don't think -- he's a dog with a bone, i don't think he will let go of amazon very easily, the truth is this is a jugger of a company, i don't think even raising its shipping costs which is probably the likely outcome here modestly is going to make much difference. stuart: would you buy amazon on the dip? >> i would because i wouldn't buy amazon because there's no margin of safety because the valuation is so high, having said that, the post office needs amazon a lot more than amazon needs the post office so if you like amazon otherwise, then take advantage of the dip. stuart: good line. [laughter] stuart: tesla, new concerns that china tariffs could hurt tesla even more that's hurt already. what's the theory there? >> relies on american-made vehicles for all sales in china, china is second market, also portrait of miniature of what the trump administration is saying, tesla has been trying to
9:35 am
get a foothold in china, we need joint ownership over the factory, it's fight over the ownership structure of tesla's factory in china, tesla is pushing back on that, that's why it doesn't have chinese-made vehicles over there like gm. this is a big problem for tesla right now and delivery problems as well. stuart: liz peek, the word collapse has been attached to tesla, would you go that far? >> i wouldn't yet, i think investors gave this company far too much rope and at this point they have to prove themselves. i said before, there's too many things the ceo is trying to do, i think he's a genius but ramping up to make a serious production maker -- ashley: i thought the numbers were pretty good. >> compared to toyota and chevy bolt. stuart: if i'm not mistaken, tesla stock is down 100 points from its high, that was probably
9:36 am
january, 258. >> i meant toyota electric vehicle. stuart: let me talk about mark zuckerberg, he will testify on capitol hill one week from today. ashley: house energy committee commerce, they say, look, we put out the invitation, we got one back, we are delighted that mr. zuckerberg has decide today come and talk to us, we want to know what happens to personal identification online, we have a lot of questions and we hope he has the answers. stuart: does he have a problem? ashley: yes. >> he has his problem with his own personal credibility, this earnest ploy that he has been doing with apologies won't fly. how did you make $41 billion in sales last year, what are you doing with our data? i'm not saying users will ditch facebook, this is a personal problem for mark zuckerberg right now, he has to pony up and say what are you doing for privacy like apple does and microsoft. ashley: he doesn't instill
9:37 am
confidence, he has to work on that. >> he so needs congress to like him if you know what i mean and the american people because otherwise i think he's subject to a lot more regulation because people are very concerned about privacy. >> goes right to their business model, that's really what we are talking about here, challenging business model and that's a scary thing, i think. stuart: we were down 500, now we are down 416 points. quick check of the markets, where is the price of gold this morning? when the stock market tumbling like this, what happens to your -- you want to call it that, up 9 bucks. how about the price of oil, i think we are down today, roughly down $62 per barrel. look at the yield on the 10-year treasury, key interest rate benchmark, 2.77%. ashley: yeah. stuart: if we are in an economic boom why -- ashley: bond prices go up. stuart: you have it exactly
9:38 am
right. flight to safety is happening now. jpmorgan says sell general electric because credit rating downgrade is likely coming and they are selling, $12 -- wait for it, david deets, you will be buying this thing? >> exactly. people should not be selling on the jpmorgan analysis because credit downgrades were announced back in november. this has been an issue all along. it's been reduced but not eliminated. i think actually investors would love to see them cancel the dividend completely, get it all of the system and use the money to pay down debt and keep focusing on businesses that are generating 120 billion a year. stuart: okay, we heard it right there, all right, david. here is a story, gun sales surged in march, record number of fbi background checks increased interest in rifle and long guns because the fears of more regulation following the
9:39 am
florida shooting. that's what's driving this surge. anybody surprised here? >> no, it happens every time. stuart: it does, doesn't it? >> amazing. stuart: as soon as you start talking control, boom, you have -- ashley: after the glory years of mr. obama where the gun sales went through the roof, but when you have incidents, you see the surge. stuart: gun sales are fine, but gun stocks are down this morning. that's a surge from the downside. all right, an ohio coal company called ohio coal power company bankrupt and asking the president for a bailout, bankrupt, they declared bankruptcy? >> they are, the coal and nuclear divisions of ohio power first energy, they're in big trouble, killed by cheap natural gas, there's no coal -- for the coal energy and also the nuclear
9:40 am
energy. what they are doing is something unusual. they will ask for a bailout from the trump administration through part of the federal law that's usually used in times of disaster in the wake of a hurricane or something like that. >> wait a minute, natural gas is a natural disaster? [laughter] ashley: to the coal companies it is, but they are pushing back saying, don't bail them out. >> on the other hand, clean air regulations have basically art -- lifted and what they are doing is following on campaign pledges from president trump who promise today make the coal industry healthy again. stuart: and natural gas is a product of fracking and we are being held as american heros, the frackers. [laughter] stuart: don't forget spotify, big debut yesterday, went straight up. it's pairing gain today, down 6 bucks, would you be buying spotify? >> you know, no, we are old
9:41 am
fashion, we would like to see our companies make profits. [laughter] >> but seriously, there's a lot of competition there particularly apple and amazon, they are delivering music too, they don't need to make a profit with music, it can be ancillary to other businesses, spotify has to make a profit. how would you handle spotify, netflix decided to offer music as well. a lot of risk in that business. >> has market value like ratheon or cbs, no profits. >> right. stuart: do you pay for streaming service? >> i don't. stuart: i knew it. interesting item on the economy, private payrolls grew by 241,000, new private sector jobs, up 241,000 in march, let's not forget that we've got job's friday coming up day after tomorrow. we could have a very handsome number from the job's report but is that good news or bad news for the market, liz peek?
9:42 am
>> you have to step back and say it's good news, expected job levels that will be booming first quarter report and second quarter report and all the nay sayers that say we can't grow above 2%, they are wrong, that's what we are going to see from the job numbers. stuart: you tipped your hat there, liz peek, they are wrong. [laughter] >> but the fly in the ointment is what the hourly wage growth will be, because the concern is strong employment job's numbers but too much inflation which could cause the federal reserve to accelerate rate hike. >> the best news on that was the fourth quarter, 6 percent in capital spending. i don't think -- i think you are right, it's not necessarily an inflation number. stuart: i just want to point out that we started with a loss of
9:43 am
over 500 points, now we have a loss of 400 points. ashley: it's a rally. [laughter] stuart: could it be that the market is having second thoughts about trade war and realizes that these tariffs are proposed only and not -- >> the choppier the markets feel -- that erodes in mentality. stuart: i don't understand why the big technology stocks are down, i don't think they are particularly affect bid the trade talks. >> regulation. stuart: i can understand amazon coming down and facebook under pressure because of zuckerberg testifying next week, apple, microsoft. >> if you want to get out of the market you sell etf, what's the biggest one around, it's the tech ones. it's all lumped together right now. stuart: 393 as opposed to 400.
9:44 am
>> ashley spoke. ashley: the rally goes on. [laughter] stuart: 13 minutes into the trading session, i'm afraid it's that time that i have to say good-bye to david. i have to say good-bye to you, david. liz peek, you just have to go. but a fine performance, thank you very much. [laughter] stuart: look at that, now we are down almost exactly 400 points. i want to go to gerri willis, she's up at the new york stock exchange, give me the mood, can you sense the mood down there? >> listen, we have been talking to traders all morning long, here are the words that i'm hearing, unnerving, painful, scary even one person told me that but i have to tell you, everybody down here is not happy with the state of trade with china and they are willing to go through this as one person told me to break a few eggs to make the omelet to get a better deal with china. i have to tell you there's a lot of patience with this, it is unnerving to traders, they see what's going on in the markets, they are living it, it affects
9:45 am
their wallets but most of them are confident that some kind of good resolution will be gowned. i was surprised by this, but i want to show you something we came up with that i think you'll be interested in. i want to usda website this morning to figure out, hey, how many of these state that is went for trump are actually top soy producing states, this is as you know soy targeted by china today, 8 of 10, these are the states that went for trump, only two of the top 10 states went for hillary and that was minnesota and illinois, so just a little background there on soy production and how that plays into politics here, but i have to tell you, these traders down here, they are not thrilled with it but they believe what china is get get away with here is probably not good, not good for the company, country, that is, and not good for actually our wallets, right. stuart: yeah, you're right. very balanced report there gerri willis, that was excellent.
9:46 am
thank you very much, indeed. >> you're welcome. stuart: come back soon. how about this one, wichita realway services gives the nation's highest tax cut bonuses to date, how much? >> up to $6,000. 3,000 to $6,000. this is the best part of the story, stuart, shows the slices of americana and the small mom and pop businesses out there saying, you know what, we are going to give the tax cuts back in form of bonuses, 401(k) boosts, my crumbs are a little bit better than what nancy pelosi thinks. we have 480 companies, 480 companies giving back tax cuts in forms of bonuses, 401(k) boosts, utility tax cuts. this is what they are doing. stuart: very strong, got it. check the dow 30. when we opened this morning all 30 of the dow stocks were in the red, 29 of them still are. but coca-cola has manage today go into the green.
9:47 am
we are down 441 points as we speak and we will be back with more varney after this. ♪ ♪ i can do more to lower my a1c. because my body can still make its own insulin. and i take trulicity once a week to activate my body to release it, like it's supposed to. trulicity is not insulin. it comes in a once-weekly, truly easy-to-use pen. and it works 24/7. trulicity is an injection to improve blood sugar in adults with type 2 diabetes when used with diet and exercise. don't use it as the first medicine to treat diabetes, or if you have type 1 diabetes or diabetic ketoacidosis. don't take trulicity if you or your family have medullary thyroid cancer, you're allergic to trulicity, or have multiple endocrine neoplasia syndrome type 2. stop trulicity and call your doctor right away if you have symptoms of a serious allergic reaction, a lump or swelling in your neck, or severe stomach pain. serious side effects may include pancreatitis.
9:48 am
taking trulicity with a sulfonylurea or insulin increases your low blood sugar risk. common side effects include nausea, diarrhea, vomiting, abdominal pain, and decreased appetite. these can lead to dehydration, which may worsen kidney problems. to help lower my a1c i choose trulicity to activate my within. ask your doctor about once-weekly trulicity.
9:49 am
9:50 am
stuart: i want to bring this to your attention, chip makers down quite sharply, all down on fears of trade war, that's the story
9:51 am
of the market, fear of trade war hurting the overall market and we have special guests on this, senator tim scott and congressman trey gowdy, republicans both from south carolina. senator scott first, if i may, do you approve of president trump's very strong stand in these trade talks with china? >> i think he's doing a masterful job so far. in the past you look at where we were with south korea, we have seen progress made on the renegotiations, renegotiating nafta as well. china has done a great job of at least inappropriately if not illegally taking ip, so what he's doing is creating a fire wall and i think his strategy so far has proven to be effective. i'm looking forward to what happens, let's remember, let's take a step back, the announced new tariffs don't even go in place until next month. we have plenty of time to negotiate, but frankly it is time for us to be at the table negotiating with china as opposed to saying, whatever you give us, we will take.
9:52 am
that's not an effective process. stuart: let's see if you affect the market. >> t going to go back up. stuart: careful, careful. oh, no. also in the news president trump just tweeted this about the border, literally about an hour and 15 minutes ago, our border laws are very weak while those of méxico and canada are very strong, congress must change these obama-era and other laws now, the democrats stand in our way, they want people to pour into our country unchecked, crime, exclamation point. we will be taking strong action today, we are waiting for that, i don't know what it is at this point but trey gowdy, congressman trey gowdy is with us now, he wants to send troops to the border, do you approve yes or no? >> i do, no country should ever apologize for border integrity, the president is right, it's a misdemeanor to cross the border without permission, it doesn't become a felony unless you
9:53 am
reoffend and not a crime at all to overstay visa. i don't know what gets weaker than not being a crime and misdemeanor, no sovereign nation should ever apologize for border integrity. by whatever means that needs to be accomplished -- stuart: i think he's doing this, president trump is going -- taking a very hard line because he's disappointed in what congress did. you didn't give him a wall, they didn't give him wall funds, you didn't give him any action on immigration, it's your fault, trey. >> when you write a book called unified, you don't want to pick on the u.s. senate. [laughter] >> nor should we. stuart: we will right now. let's talk about this book, it's called unified, you wrote this thing together, it's about race relations. i've lived in america for 40-odd years and seems to me that race relations are not good, what are we doing wrong? >> well, one of the things that we could do right is hard to hate what you know, so more up close and perm we have --
9:54 am
personal we have in our relationships will be easier to solve issues, you need rapport, credibility to address problems, we are always rushing to problems and very seldom do we take a look at over provocative and rich history and race in the country and recognize that progress that we have actually made. when we were kids we would not have been able to play together, drink fountain, eat in same restaurants and stay in same hotels, less than 50 years, that was a joke, stuart, we have seen amazing progress in this nation and state, the fact of the matter one of the reasons we wrote the book unified we understand that in a polarized country we can remain one nation if we have serious conversations. stuart: if i were to stand in the program and say i think race relations are very good, i would be shouted down, i wouldn't last
9:55 am
five minutes. >> that's because we are in a culture that loves negativity, conflict is commercial successful, the reality is we have made progress, but we've not gotten where we need to get. law enforcement, the criminal justice system is a perfect example, white communities and communities of color view that differently. so it's really hard to hate something you know and i think what tim and i would like people to do, what we advocate and unify is have a conversation hopefully leads to a relationship with someone who doesn't look like you, who doesn't have your same political ideology, that doesn't have your same religion, quit going to the conflict, contrast is okay, but quit going to conflict and focus on what we have in common. stuart: a lot of the young black folks who appear on the program are activists, they are in politics or the law, i would like for them to go into business, start a booming business. >> trust me, my life has changed when i meant mentor who was
9:56 am
chick-fil-a owner and he wanted me to spend more time on academics and maybe less time in athletics and frankly buy mom the house or getting her the new car all that happened through business success. the reality is that you have 1 in million shot at being proathlete but you have 1 and 10 shot of being entrepreneur and probably one in 11 be successful in business. you don't quit, you win in business and you do have to learn the lesson it is hard way but our book unified talks about ways to deal with the challenge that is we face and you could be hopeful that our best is yet to come. stuart: we like that, you did very well, mr. senator, trey gowdy, both of you, gentlemen, much obliged. as you can see bottom-right-hand corner of the screen, stocks are down, concerns of trade war, not as bad as an hour ago.
9:57 am
larry kuklow, he's with us in our next hour. we will be back now i'm thinking...i'd like to retire early. let's talk about this when we meet next week. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours. .. ..
9:58 am
9:59 am
welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com
10:00 am
stuart: four times in the last week the president has attacked amazon and it's had a dramatic affect on the stock and value of the company. amazon shares are down close to $300 each from the high they reached in january. it is one of, if not the most exciting companies in the world. certainly one of the most powerful and it's highly unusual for a republican president to go after such a successful all-american company. so why is he doing it? scream at the president says amazon is killing mom-and-pop retailers. i think he's on shaky ground bear. surely it was wal-mart that closed on main street a generation ago. the president does amazon avoid some taxes. that is true.
10:01 am
and he says it gets a taxpayer subsidy by using a cheap delivery deal with the postal service. in a way it does. the postal service will be losing a lot more money if it weren't for the cash against amazon. perhaps the president is representing all those interests, which have been really hurt by amazon's power and there are a lot of businesses which are scared to death. amazon's enemies are legion. the president leaves their charge. but you know, maybe one more reason for the president's attacks. amazon's founder jeff bezos owns the "washington post" and if you've ever read that newspaper in the last two years, you would know it is the most severe event of all the trump attacked machines out there. the post attacks the president in personal terms, questioning his sanity, intelligence, integrity and character. maybe the president takes it personally. maybe that's why he's gone after
10:02 am
amazon. the swedes are his personal counterpart. it's the way he is. the second hour of "varney & company" is about to begin. ♪ stuart: fears of a trade were hurting the market. caterpillar and boeing are big exporters. they would be hurt in a trade dispute. both of them are down sharply. caterpillar down three bucks. knowing down nearly $14. that accounts for a big part of the dallas loss. big tech names. you got a check in every single day because that's where the action has largely been. all of them down including amazon down another $2613.66 as the price on amazon. facebook mark zuckerberg testifies before congress one week from today. facebook is down $4.80. 151 is your facebook quote.
quote
10:03 am
tesla still in trouble, down another $4 this morning. $2.63 as the price right now. china's proposed tariffs clearly dragging on the market. look, just look who is our guest this morning. put them on. there you go. i know that man. everybody knows this man. right from the get-go, larry kudlow is an old colleague, friend, admirer and truly great guy and he's the new chief economic adviser to the president. let's get right into it. talk is cheap, larry. now, is this a trade war because that's what the market is worried about. >> absolutely not. let me just say right at the top, number one, blame china, not president trump because they been going on for many years. the first president to fight
10:04 am
rack and put a shot across the bow. the only intellectual property rights, technology transfers, high barriers from investment limitations, high tariffs. this stuff is really not just unfair. it's unlawful. every country in the world knows this. every analyst knows this is the case. somebody's got a deal with it. president trump is going to deal with it. there's no trade were here. you've got the early stages of a process that will include tariffs, comments on the terrace, ultimate decision for negotiations. there is already back channel talks going on. i understand the stock market anxiety. i get that. on the other hand, don't overreact. we will see how this works out. i'm a growth guy appeared i think that at the end of this whole process, the end of the rainbow, there's a pot of gold
10:05 am
and if you open up the ipad, you will see better economic growth, more trading going on and improved wages for both sides. anytime you lower barriers and that is the key to the president will say this. lower barriers is the key. don't raise the barriers. anytime you do that it's good for growth. good for american growth in american workers. good for china growth in the rest of the world's growth. that's the intention here. this is a growth play, stuart varney. stuart: okay, the pot of gold you talk about is growth lowering barriers here but the pot of gold surely is to get china to stop stealing our intellectual property and change the way it takes over our technology. i understand that the process of negotiation. how do you knock it off, stop the theft of intellectual
10:06 am
property? >> this is part of the process. i'm not a fan of tariffs. but i think the president is completely right to take these actions now. bear in mind, these are just the first proposal. in the united states at least, we are putting it out for comment. it will take a couple months. i doubt if there would be in a concrete actions for several months. we will see how that plays out. nothing concrete is actually happened. these are proposals. the message is clear. china has got to stop the unfair and illegal trading violations. they've done it for years. they are operating outside the wto. part of the process here is the united case is going to the world trade organization and i would be very surprised if we didn't have huge backing. i call a trade coalitions of the willing. other nations around the world
10:07 am
are going to join the u.s.a. not only enteric complaints, but also wto complaints. i think this is right, fair. trump is putting his cards on the table. he's standing up for this country, but it's also standing up for a better world trade. he regards himself. this is something people have missed. he said it to me. president trump regards himself as a free trader. i do too. but the path to free trade must include tremendous reforms into stopping the illegal and unfair trading practices which you mentioned. stealing intellectual property rights, technology transfers. china has a lot of tariffs on products going in. they have a lot of barriers. this has got to stop. a free trade action at the end of the day is progrowth but we have two grind it out and let the rest of the world no president trump in the u.s.a. needs this.
10:08 am
stuart: i take it there are talks going on under the surface. we've got a team in place. they've got a team in place. what is the mood between the two? obviously both sides realize there is no wind and a real trade war. so what is the mood? is there a realization that this has to come to a conclusion? >> what i can say here is president trump has a very good relationship, as you know, with president xi and president xi cabinet and cabinet advisors and we will all be involved over a period of time. i do want to make any predictions. i'm just saying it's an unusually good relationship between the u.s. and china and between the two heads of state are not very hopeful. stuart: president xi does not want to lose face. he cannot back down publicly. he can do this.
10:09 am
>> i don't know. backing down is kind of a funny way to put this. this is business. this is the business of government and it's not a question of backing down. we have the case against them and the rest of the world agrees. president trump is bleeding. it's a question, for example, in getting china back with international trade laws. that is not backing down. that is taking steps to be law-abiding. i think china has, the united states has made bad deals in the past. we cannot sit up to them in the past and we will now. trump is the backbone and courage to take this leadership position. tranter at the top of the hour i editorialized about the president's beef with amazon and concluded part of the trouble between amazon and the president was personal between president
10:10 am
trump and jeff bezos, owner of the "washington post," a truncating machine. would you comment on that? >> i think the president's intent here is to develop a level playing field between online retailers than land-based retailers with suspect the tactics and other issues. i think that is his intent. create a level playing field. positive steps have been made in some cases. the supreme court is going to make a ruling very soon on this that will again move towards a level playing field. there was a time when we wanted the united states as a matter of policy, wanted to protect internet businesses by keeping down the tax burden, but that time is long gone. the level playing field is the best way. >> should the president be the one treating like he has? >> the president of the united
10:11 am
states is the president of the united states. trying hard to move in my new position. i love to treat. i hope they let me. it's a pleasure to see you again, sir. thank you for being on the show. thank you very much. i'm going to speculate that because of the market. it's not a trade war. the president laid out a perfectly rational position and said it many times in the dow was down about 400. when a candidate it was down to 95. transfer his others are due back channel negotiations going on. that's what he told you. stuart: he made the point these are proposals. ashley: it's not a trade war. >> very interesting and we would like thank you. check this out, please. this play impressed that doesn't
10:12 am
really care for soccer. that is a brilliant, rinaldo, madrid. he is probably at this point the best soccer player in the world and they are playing the italian team with the quarterfinals of the big european contest. rinaldo brilliant. he is 34 years old. ashley: i taught him everything he knows. at the age of 33. soccer is a twentysomething game at that level. enough of that. president trump said the military will secure our southern border until a wall can be built. brandon judd, head of the border patrol union will tell us how fast this could be implemented and whether or not he approves. president trump going after amazon. scott galloway has long argued the big tech should be broken out. he will tell us what steps the
10:13 am
president could actually take. you are watching the second hour of "varney & company." how do you win at business? stay at laquinta. where we're changing with contemporary make-overs. then, use the ultimate power handshake, the upper hander with a double palm grab. who has the upper hand now? start winning today. book now at lq.com.
10:14 am
10:15 am
10:16 am
stuart: down 300 on the dow. white house economic adviser larry kudlow told us there'd be no concrete actions on tariffs until the middle of may that appear to help the markets. the dow is now off it session lows. the price of gold is up on this down day in the stock market. eight dollars higher. that border issue. resident trump says he wants to put the national guard on the border. brandon judd is with us. porter virtual union president. >> it's a radical shift to the border. you agree with that? >> i do. you get to talk about sports, politics, market, business. you are like the wal-mart of this program.
10:17 am
stuart: amazon. >> exactly. i agree with this 100%. this increases certainty of apprehension of both illegal aliens as well as illegal contraband like opioids. what it does is it allows the military or national guard, whichever one it is that will go to the border. it allows them to take over our surveillance position such as watching the cameras and the camera rooms, watching the sensors were beaten in the skybox is and all of the other surveillance act committees we perform and that allows us to put our agents on the border, which will then allow us to apprehend things crossing the border, which will put a dent in this multi-billion dollars industry that the cartels are currently running. i agree 100%. stuart: the key question is are they going to have guns?
10:18 am
i remember in the distant past troops were on the border. there was an incident in which an american soldier shot someone coming across the border and that led to the withdrawal of the military. so will they have guns? will they use them this time around? >> i don't think so. the last time that we had the military on the border, national guard on the border, we had agents with them to provide security so that they wouldn't have to. i don't know what the process is going to be this time. you have to understand on whether or not the military should be on the border. there are laws that say the military should not be a police agent need to enforce laws in the united states. they are not going to be. they will be in our surveillance role as far as i can. they are going to be our eyes and put up on the traffic that
10:19 am
allows us to apprehend the traffic. again, it is going to help us secure the border. stuart:.caravan of migrants had to be on its way to our southern border, can you give us an update? is it gone the way? is it going to arrive? >> is constituted a couple days ago i don't believe so. president trump got a lot of comments, a lot of pressure saying he shouldn't be telling the mexican government what they plan to do. in reality he did exactly what he should have done. the mexican government was facilitating a large group of individuals that would come to our border and presumably crossed the border illegally or in other words they were helping a group of individuals violate the laws of a sovereign nation. that should never happen. what we've heard is they started
10:20 am
to turn around or these groups are starting to break out. i believe what happened because we know this to, through mexico you have to pay. most likely they will break off into smaller groups so it doesn't become this huge story and they will make their way up to the border. we still have to apprehend them, and taken into custody, but that still falls on republicans because we have to change the laws, get rid of the catch and release program so we can take them into custody, hold onto them in secure borders. stuart: this is the wal-mart of television. we have to take a commercial break. reading judge, we appreciate you being here. stuart: a trade were pulling the market down in president trump says when you're already $500 billion down as in a negative situation with china, you can't do as he says. dow industrial down 341. we will be right back.
10:21 am
10:22 am
10:23 am
10:24 am
stuart: at the top of the hour editorialized about the spat between president trump and amazon. i said it's personal because jeff bezos is the founder of amazon and he is vigorously anti-trump and trump is pushing back. ask leo's editor-in-chief is on now. am i on to something? you agree it's personal? >> i think it was very a couple points would make as a follower. when we first wrote trump was excessive amazon, my colleague jonathan swan assured of coin-op that there's people who run retail businesses in enzi that is playing unfairly in the retail investors. a lot of those places went out of business in shopping center so he sees the impact they are.
10:25 am
do your second point absolutely. to read the president street come he conflates the two issues. amazon "washington post." if we read those at face value there's a personal element here and how he views jeff bezos. utterly separate. it is jeff bezos personally. stuart: the only thing the president could actually do would be to unleash the justice department and the antitrust division to really hurt amazon. is that roughly accurate? >> either in the administration of actual concrete steps to takedown on amazon. they are to pay sales tax on estates that collective. and the retailer against this. we see in our reporting that makes that in the work. legislatively on the hill there is no desire. for the moment they are focused
10:26 am
on facebook right now. stuart: next time you're one of our best guess you have excellent sources in the administration. so it was only two and a half minutes. thank you, sir. there will be more "varney" after this.
10:27 am
10:28 am
10:29 am
♪ stuart: everyday at 10:30 a.m. eastern time. it brings back memories. that one in particular was good. good day sunshine. >> the dow just went up a quarter of a point.
10:30 am
stuart: very funny, jack. everyday 10:30 or that's what we do. check the big board. we are down 348 points as we speak. getting the number just coming into his now about how much oil we've got in torrance. that makes a difference in the price. right now the prices down a buck a barrel. do we have those numbers yet? ashley: we are expecting some 246,000. stuart: a build means you've got more in storage. ashley: one point for one. there is a slight build an oil. prices down .462 million. i've got two numbers. stuart: wait a second, clarify. ashley: thank you for the update. stuart: 4 million barrels used this week. ashley: we are using a lot more. it doesn't always work that way. stuart: is not a sign of a
10:31 am
stronger economy? 241,000. okay. no difference stock market thus far. to check the big tech names because they are down universally. amazon is dow 24 bucks. microsoft is at 88. amazon down to bucks, facebook really taking it hard, down $4.37 per share. that is 151 right there. chipmakers underwater today, on the downside. intel again down, taking hit after hit recently down another 2%. fears of a trade were hitting the markets that china proposes more tariffs. they did that about six hours ago in the market went down. president trump tweeted this. we are not in a trade war with china or that war was lost many years ago by the foolish or incompetent people that represent the u.s. now we have a
10:32 am
trade deficit of $500 billion a year with intellectual property theft of another 300 billion. we can't let this continue. jack continue. jack our spirits editor and and he is with us now. i would like to point out that these are terrorist proposals. they have not yet been imposed and they are not going to be imposed until the middle of may. >> that is true. i was comforted by the words on the program minutes ago. the dow came up 100 points out he was talking about not letting this escalate. i'm trying to envision a scenario for china says alright commie tactic into it. we didn't think you were serious, but now will crack down on intellectual properties and go back to normal. i'm worried it's a lot of chest thumping and escalation. even though the tara stone take effect right away, they are a real-time pricing affect. i am worried that american farmers are going to how going to have a really tough year this year no matter which way things
10:33 am
go. stuart: i do believe soybean and corn prices are down because china proposes to levy tariffs on american soybeans and corn that go there. those basic food prices down 3%, 4%. >> they were not looking great before the start of this. the last thing people need right now. stuart: that is a political ploy to go after president trump space. >> i understand. it's not just about terrorist. in china they don't need terrorists. a wink and a nod from the right people can greatly influence the type of goods they buy. stuart: can i summarize like this. you don't think it's a trade war but you're worried one is actually creeping up on us. >> is something to watch but the numbers are not alarming but it's something to keep an eye on. stuart: kitty pi which is with us from d.c. fox news contributor, townhall editor. do you think that the president is taking a strong stand? does that worry you?
10:34 am
would you rather him be softer with china? >> i'm not surprised at all and nobody should be surprised that this is a people problem they voted for donald trump in the 2016 presidential election. he made it a big part of his platform. obviously the numbers of the stock market are concerning. we have heard from a lot of farmers that the tariffs are concerned for them. the administration and the president or the president or taken a huge risk here in hoping that the reward and the benefit of them going after china, saying they need to stop their intellectual property payoff. he had the meeting of the white house with all of the ceos and aluminum ceos. he repeatedly said to them, you need to now go and grow your industry. he is saying we are going to take on china, applied the steel tariffs. it is now your responsibility to make sure that it's worth it back here at home. stuart: would you approve of what the president is doing? >> i think we have to wait and
10:35 am
see. he is carrying out what he's been promising to do for a while. stuart: you go the wobbly and president trump. that is not like you. you are usually a strong supporter. >> i am a conservative objective person who likes to look at things from all different angles. based on the history about trade worth: the president saying we are not in a trade war, let's call it a trade battle and we are hoping to win the trade war. but there are certain concerns for sure. on intellectual property front, it's important to point out i was in china last fall and i don't think china will stop stealing intellectual property because that's a huge part of all china has. a lot of fair economy is stealing our stuff, stealing stuff from other countries than just reproducing it. i don't think the pressure on them is going to change that because it's such a big part of what they do. stuart: hold on a second. a sidebar to this tariffs and trade story.
10:36 am
these proposals could hurt tesla. tesla has been heard already, but this could hurt them even more. can we get that picture of the screen, please? so why -- ashley: elon musk one such minority charges a 25% duty on cars. that is 10 times the 2.5% levy the other way around. also, the car factory in china cannot own 50% or more, whereas five china owned automobile companies have 100% of an inch of their facility here in the united states. the bottom line is a person buying tesla and china pays 1.5 more than they do in the united states. you throw an extra tariffs that will make it that much harder to get a very big market for electric vehicles in china. stuart: tassel has come all the way back to 267. jack how, the word collapse
10:37 am
surrounds tesla in the collapse of its business. >> china's 27 on my list of concerns about tesla. there are many other electric cars about the flood market the chevy volt, there's nothing like that and it's arguably a better car than tesla. they lose the tax perks for buying the car. the big investors note free cash in the foreseeable future. at some point, with the stock tumbling it reduces its ability to secure the financing or secure favorable terms going forward. stuart: they've got a money crunch. i want to bring back katie pavlik because this is your area, katie. gun sales surged in march. lots of interesting long guns and rifles if you are not surprised by this i take it after the florida shooting? >> not at all. march was the number one on
10:38 am
record guns sales for march after. and when it comes to getting when the gun rights are attacked, people take it personally. when you see the government of florida headed by republicans, republican governor rick scott, raising the age of long guns to 21, people go across the country and feel like they need to protect their rights and exercise them by purchasing more firearms. whenever we hear about gun control legislation, this is why president obama was quote, the number one best-selling gun salesman in the country for eight years ago he was constantly threatening gun control. we see americans going out and take in the second amendment rights very seriously in voting with their wallet. stuart: got it. thank you indeed. appreciate it. one republican congresswoman about a blue wave in november. the house is most at risk. katie mcinerney, rnc spokeswoman will address the blue wave and
10:39 am
shall discuss it on the program. first, president trump is going after amazon. scott galloway has long argued the big tax should all be broken out. he will tell us what steps the president could take against amazon after this. afi sure had a lot on my mind. my 30-year marriage... ...my 3-month old business... plus...what if this happened again? i was given warfarin in the hospital, but wondered, was this the best treatment for me? so i made a point to talk to my doctor. he told me about eliquis. eliquis treats dvt and pe blood clots and reduces the risk of them happening again. not only does eliquis treat dvt and pe blood clots. eliquis also had significantly less major bleeding
10:40 am
than the standard treatment. eliquis had both... ...and that turned around my thinking. don't stop eliquis unless your doctor tells you to. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. if you had a spinal injection while on eliquis call your doctor right away if you have tingling, numbness, or muscle weakness. while taking eliquis, you may bruise more easily... and it may take longer than usual for bleeding to stop. seek immediate medical care for sudden signs of bleeding, like unusual bruising. eliquis may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical or dental procedures. eliquis treats dvt and pe blood clots. plus had less major bleeding. both made eliquis right for me. ask your doctor if switching to eliquis is right for you. ♪ ashley: last hour, former reagan economist art laffer says no one
10:41 am
wants a trade war but he does trust president trying to negotiate with china. >> i talk to the president on this come exactly on this topic and that's what he said it was trying do is get the negotiation. if the works that way, god bless him on the bull market like you've never seen when that's done. i trust this president very much for wanting to negotiate. he is a free trader. he really wants to make this happen in the correct way. i'm terrified, however by the threats and counter threats of putting it on tariffs. as you can see, following the markets you said very clearly exactly china not the counterterrorist of the market collapsed 500 points. you know what they say about the early bird... he gets the best deal on the perfect hotel by using tripadvisor! that's because tripadvisor lets you start your trip on the right foot...
10:42 am
by comparing prices from over 200 booking sites to find the right hotel for you at the lowest price. saving you up to 30%! you'll be bathing in savings! tripadvisor. check the latest reviews and lowest prices.
10:43 am
stuart: we are down 330 points. when we opened we were down 500. with com back of it is a blast. don't use that word, stuart. i will leave it at that. let's go back to amazon. president trump is going after him, sameness. roll tape. >> if you look at the cost we are subsidizing, we are giving a subsidy to amazon and we are talking about aliens of dollars a year. a report just came out. they said $1.47 and for every time they deliver a package.
10:44 am
the united to its government, meaning the post office loses $1.47. amazon will pay much more money to the post office. >> the president has gone after amazon four times in the last week. the stock has fallen significantly. scott galloway is with us. nyu professor of business and a critic of amazon, even though he is a shareholder of amazon. right on both counts? >> i love amazon as a consumer and investor in the time to be good for the economy and middle-class and plan it. stuart: the planet, come on. i'm not going to be sidetracked by that. so the president is going after them. what can the administration actually do to break them up? is it antitrust, that's always got? >> not a lot. there's a difference between being right and effect is. the president's actions have
10:45 am
have effectively immunize the amazon from regulation because he's turned it into a partisan issue. it's now seen as a personal attack between bathos in a post which will take people including bernie sanders who raised concerns around big tech and raise them in front. to be blunt, i think he has blown it. the doj is commissioners appointed by the president that can't reboot -- be removed by the president. doj is a set of antitrust laws. and i trust be rewritten by congress to ftc is commissioners who can be removed by the president. if he was serious about the come he would have made the argument against big tech and privately gone to democratic and republican senators indicted a bipartisan issue. the place to go gangster on disguises to read straight a tease. that's what he should have done. stuart: he didn't do that. he took to his twitter account. you think that's an effective although the stock has come
10:46 am
down. $1600 down to the $1300 level. you don't think it's broken up? >> watch it rip rap. we're about to see a trillion dollars market company that effectively pays no corporate tax. he said this company doesn't pay its fair share of taxes, which was right and then he blew it and said state tax on local taxes. the bottom line is he comes across as uninformed using weak data and then there's jeff bezos in the background feeding the press data to refute everything the president said. one of them attacking presidential come in the other is president. he has blown it. stuart: because you think he's going to come to you think that the stock comes roaring back to become a trillion dollars company? >> the most profitable part of technology, called as the number one market share leader. the future of technology will no longer be done on current. it will be done via voice. the most viable retail channel in the world coming u.s.
10:47 am
e-commerce of the 45% share. the biggest consumer market in america. amazon is now the fastest growing brochure with whole foods. amazon is about to become the only entity in the world outside of the fire and police department that can make it into house without your permission because 62% of households that amazon prime are going to install ring and say we like and trust you so much you can come into my house and put up in my refrigerator. trillion dollars by the end of the year. that's the good news for the bad news is they will pay effectively no corporate income tax. stuart: a trillion dollar company, what stock price doesn't have to doesn't have to reach to get to market valuation? >> it has to go to 50%. stuart: you are talking about $2100. transport has to go to 2060. for apple is 26. stuart: the good professor here thinks will do at this year. >> i'm not a stock market analyst here and there no stopping amazon.
10:48 am
the only thing between the market valuation was regulation on the president had unwittingly immunized amazon against regulation. he's blown it. stuart: your book -- [inaudible] stuart: you're welcome. you take up against other big tech companies. like facebook should be broken up in some way? by the toxic fats can be westernized by a foreign enemy has a community more vast than christianity, than christianity coming as they a see other proposes breakup of share such that he could tell a stock could not be removed from office commotion effectively makes it an information age autocrat overseen a population greater than the sum of the southern hemisphere and added the value of india. what could go wrong? i think they should be broken up. more higher income a broader tax base, if we had facebook, instagram, wife app instead of just facebook.
10:49 am
stuart: i'm surprised you're such a popular guest on the program. scott galloway, i do think you're all right. appreciate it. the caravan of migrants in mexico reportedly dissipated raking a. this is the president wants to secure the southern border until an official moral is built. we are en masse dory. -- we are on that story. ♪
10:50 am
10:51 am
retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would
10:52 am
stay with their families until their 40's. if you're approaching 65, now's the time to get your ducks in a row. to learn about medicare, and the options you have. you see, medicare doesn't cover everything - only about 80% of your part b medical expenses. the rest is up to you. so if 65 is around the corner, think about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they help cover some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. so don't wait. call to request your free decision guide. and gather the information now to help you choose a plan later. these types of plans let you pick any doctor or hospital that takes medicare patients. and there's a range of plans to choose from, depending on you needs and your budget. so if you're turning 65 soon, call now and get started. because the time to think about tomorrow...is today.
10:53 am
go long. stuart: well, well, well, did remove the markets? flattering myself, but maybe we did. larry kudlow was on the show at 10:00. he told us it's not a trade war, that they are just proposals for terrorists. minus 352 minus 220. president trump says he wants to send national guard people, troops if you want to call them that to patrol the border. here was his tweet. our border laws are very weak while those of mexico and canada are very strong. congress must change the obama air and other laws now. the democrats stand in our way. they won't go to pour into our country unchecked. we will be taking strong action
10:54 am
today. not sure that we've seen the strong action yet, but we are waiting for it. martha mccollum, host of the story with martha mccollum. troops on the border is a radical suggestion. >> it is a radical suggestion. it is that they are talking about here under president bush and president obama as well. with that tweet, the president is talking about constituencies. he wants to see hinges on immigration. he's pointing a finger at democrats in saying to the american people, do you not want a secure border? i will put some troops on the border and i know you spoke to the border patrol union earlier today who believes they will be in a surveillance capacity. he's pushing the envelope, saying to democrats on daca we've got you back against the wall, an opioid problem in this country that is incredibly intense and horrible.
10:55 am
so is pushing the envelope on all of that, hoping to break free from the negotiation. he is also negotiating with mexico on this clearly. the president wants bilateral trade agreement and you see that happening with his discussion going on twitter and elsewhere with mexico and also that china. i will go into put down a pretty dramatic opening bid. stuart: he does it on every single issue. hard-line right. >> be interesting treated the morning was how much worse could it get. that's a negotiation. a friend of the 380 billion in deficit is, i myself a winner. this is an opening negotiation posture. stuart: you must've noticed this. you anchor on the fox news channel and cover the president. he makes news all the time and
10:56 am
he's absolutely consistent. he always plays down the hard-line right from the get-go and generally sticks to it. i can't think of a time when he's caved. >> but he doesn't negotiate. he gets a little bit of what he wants. where can i go back for more later. this is about nafta when it's a cannot mexico and the interesting thing is the language we hear absinthe enchanted fox who is gone and no longer in power. he says mexico is now largely a company that resists immigrants. it's a source of immigration, so we understand this clearly. president trump is saying you know what, they come across your southern border. we don't necessarily need to add them to the problem coming across our border, so let's figure something out, mexico. stuart: negotiate. you should do a financial show. you really should hear it martha, we'll be watching tonight at 7:00. thank you indeed.
10:57 am
there will be more "varney" after this. . .
10:58 am
10:59 am
11:00 am
stuart: it is a hardline president trump especially recently, he's standing firm on all fronts. i think he's so annoyed at the spending bill that he's turned to his own gut instinct, he's letting trump be trump. classic example yesterday in the white house he's entertaining leaders from the baltic states, the media fires a barrage of questions and the president announces, well, he plans to send the national guard to the border with méxico. that is a hard line. and he's taking it because that spending bill did nothing to fix the immigration mess. then he announced $50 billion worth of tariff proposals on chinese products coming here, hard line, this morning, china responded with $50 billion worth of tariffs on our products going there. remember, please, these are proposals only at this stage. the president is holding to his
11:01 am
strong opening position as the negotiations continue. and the president taking a firm line with california which is resisting everything and anything the president proposes. the president is going to court on the sanctuary state issue and now he's suing over the use of federal land in california. several counties have vote today oppose state government. don't forget the president's hard line with méxico, he's saying, you'd better do something about the migrant car vane heading to america because it's going to be part of the nafta renegotiation. what's really going on here? well, the president is looking to the november elections and has concluded that his presidency will emerge a winner if he does what he said he would do when first elected. the gop is not helping him much so he's going it alone, it is really trump unlearned. third hour of varney & company
11:02 am
is about to begin. ♪ ♪ stuart: we are coming back, we were down what, almost 500 at the opening bell. ashley: we hit 500. stuart: we hit it, now we are minus 217 points. we are still down but no where near as low as we were earlier in the day. we will have more on this in just one moment. but now i want to get back to my editorial at the top of the hour, listen, president trump is hold to go a very hard line standing firm on all fronts. karl rove is with us this morning, karl, i say this is what america voted for but i'm not sure you approve of all the hard lines on every issue, what are you thoughts? >> well, i don't. there's a mixture of good and impulsive here. good, for example, california has no right to put that sanctuary law, this is the modern-version of nullification
11:03 am
where a state says we don't like a federal law so we will ignore federal law. the lawsuit against sanctuary cities is good. the law against california law that say that is the federal government is going to sell surplus federal land, nobody can buy it before california gets a chance to buy it. that's also a form of nullification, these are good well-thought-out efforts by the justified department. take, for example, yesterday impulsive comments about sending the national guard to the border and i'm going to take tough steps if méxico doesn't stop the 1900 marchers from guatemala and honduras that are making their way north to the united states. this is impulse and mexicans don't want to have 1900 guatemalans and hondurans making way, a bad sign, that's why they designed them access to normal route which which is to get on top of the train to make their way north, and finally, this
11:04 am
group finally began to collapse when it became clear that the mexican government was not going to cooperate and making them easy to get to the border, they were 900 miles from the texas border. it's a really rough terrain. stuart: you called argue that that march, car vane wouldn't have been broken up and the mexicans wouldn't have done anything unless president trump's -- >> no, i don't agree. i don't agree. the mexicans know that it would be really bad for them, imagine the message that it sends to them, sends to central america if they let this caravan make its way north, come on, come on more of you, come across mexican territory, march through cities, place a burden on our social services, represent danger to us, represent danger to our people and your people, they didn't want it, they were work to go stop it, remember, this stuart, this is why i'm really concerned about it, the mexicans have election, the leading candidate is american
11:05 am
left-winger who praises fid el castro --fidel castro, it will make it likely that he goes in run-off with big league, this would be bad for america, better to be working these things through the mexicans and saying, to the ambassador and mexican city officials, we are concerned about this, are you concerned about it, because if you are not concerned, we will do something. i'm sure mexicans would have been comfortable in sharing concerns and we would have avoided something in doing something that probably made the president feel good, some of the supporters in the united states feel good but advanced the cause of an enemy of the united states of america. stuart: all right, karl, we hear, fair point i must say, we thank you as usual for joining us. >> you bet, stuart. stuart: thank you, karl. china is proposing $50 billion worth of tariffs on our products
11:06 am
that go there, however, white house economic director larry kudlow says this is not a trade war, roll tape. >> what you've got is the early stages of a process that will include tariffs, comments on the tariffs, ultimate decisions, there's back-channel talks going on. i understand the market has anxiety, i get that, on the other hand, don't overreact. stuart: don't overreact. he brought the market back. ashley: he did. everything is where we could be and point well made, this is all potential and we get back to the art of the deal and shooting high as far as the president is concerned on dealing with china. i do believe -- you try to get out a larry kudlow of what's going on behind the scenes, he wouldn't get into that. if we could cut 500 billion
11:07 am
trade deficit, we get it down to 380, there's 120 billion-dollar win. >> that's a lot of angst on the companies taking the hits. china has to be law abiding again, that china is the one in violation, he's also said to you he's looking for a trade coalition of other countries willing to take on china as the wto, so that's what's really interesting, china has not been in conformity with trade laws, so he's putting the focus on china's violations of trade laws which have been ongoing and chronic. stuart: not a trade war at this point. ashley: no. a threat. >> the tariffs are months out or weeks away, right. ashley: do you think china will change modus operandi overnight, they sell it back to us, that's what they do. >> china has no soft economic power, they don't have the brain
11:08 am
power that we have. our companies built over r&d and china takes the r&d. stuart: the president is right to take a strong stand and demand change. ashley: if you don't, what is going to change, hasn't changed up to this point. stuart: if they are talking and they are talking and they will keep on talking at least until mid may when the tariffs may actually be imposed, that's not a trade war, that's a tough negotiation. that's what it is. no, i don't think anybody does. >> by reducing a hundred billion that's quite a hit. stuart: they are talking about as we speak. minus 243 and we were down 500. we cut the loss in half in just under two hours, got it. electric cars, now they are among the products included in china's proposed tariffs.
11:09 am
emac is taking a sip of coffee. i see tesla up almost $7 at 274. there's a turnaround. >> tesla said it will now go back to do financing, that remains to be seen, free cash flow under duress, ford and gm have operations in china, they can make cars there, this exposes the problem that the president has been talking about that tesla has been saying, we were trying to build a factory in china, china is joint owner obstructor and foot-dragging over that has been a problem for tesla. ashley: i own 49% of the company that you build if china. stuart: i understand how tesla would be clobbered. ashley: you add more -- >> tesla took over toyota-gm
11:10 am
factory and hasn't auto maxed the production. stuart: mark zuckerberg we learned this morning, he is going to testify next week on capitol hill. it's all about that data scandal, obviously, in a bit before the house oversight panel. the stock is down, i believe that's because people are worried about his performance and regulations. >> stop with the corporate flanel and get back to the bread tax. stuart: facebook 151 as we speak. a spacex dragon capsule arriving at the international space station, carrying 3 tons of supplies, spacex's 14th mission to the station under the company's contract with nasa, that's elon musk company if i'm not mistaken. ashley: yeah. stuart: tesla and spacex, there you go. president trump continues to go after amazon, is this actually
11:11 am
personal for the president going after bezos, the man who owns the washington post and is the founder of amazon, we will ask that question, is it personal? stocks still sliding on the fears of china that i had war but we have come back a bit. rnc spokesperson, we will ask her, should the gop be worried. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com
11:12 am
11:13 am
11:14 am
stuart: all right, get back to the story of the day which is china's proposed tariffs on more than 100 of our products going over there. it's a proposal, okay, it's -- they've done actually done it yet, kayleigh, larry kudlow told me you don't have to worry about a trade war, it's not a trade war, kayleigh the market is worried about a trade war, what
11:15 am
do you say? >> both you and larry kudlow have been spot on about this, this is not trade war, this is negotiations and as mr. kudlow said you have china to blame for that, they have been taking advantage of the united states, 500 trade deficit with china alone, $30 billion in intellectual property activity, the time of action is now, the american worker deserves better. stuart: i think you're getting support from democrats on this, there are a lot of senate democrats who are upset with the china trade position, elizabeth warren was over there just the other day and said, we don't like the trade situation is going, so the republicans are actually getting more support on china trade than on any other issue, i think. >> that's right. no doubt, and we welcome bipartisanship on this, we know that president trump was a unique candidate, he came onto the
11:16 am
the national stage with a new platform on trade, with a new outlook about nafta and tpp and withdrawing our country from that bad, bad trade deal and he won this election, democrats are right we are on board with this, bernie sanders, for instance, very tough on trade, you mentioned elizabeth warren, we become the bipartisan, it's rare when we see it but welcome it when we get it. stuart: the other day we had republican tom cole, he was worried about a blue wave, what are you doing about that? >> well, we have national ground game, we are building ground games in every single state, we will be present, the rnc will have people on the ground, staff on the ground in every single state in this country. we are using our mass u.s. stock market futures fundraising advantage for times, cash at hand advantage to build places where we can have phone banks, knock on doors, target a very small universe of persuadable
11:17 am
voters, knock on the doors and explain to them the good news that republican policies are winning for their families. stuart: i think you might actually increase your majority, the republican majority in the senate, but i think you might lose a lot of seats in the house, that's my analysis going in. what's yours? >> sure, i think that's right. i think the battle is in the house, we are fighting for every seat in the senate, of course, but that's set up to advantage republicans, but this house battle, stuart, we cannot afford to lose 24 republicans and therefore lose control of the house of representatives. that would have grave repercussions, who wants to see nancy pelosi as speaker, she will take back your tax cuts and target this president and try to remove him from office for no reason at all, but she will try to do that. stuart: are you running against nancy pelosi, running against chuck schumer, running against hillary clinton? >> yes, our weapon, believe it
11:18 am
or not. stuart: i remember you on the program way back when when you were accepted into harvard. >> that's right. i do remember that. i think you broke the news to my mom, so thank you for that. stuart: you're welcome. look at you now. in charge of the republican national committee and spending billions of dollars. you have come a long way since you appeared on this program. >> who would have guessed, thank you. stuart: i guessed, i knew. kayleigh, you're all right. the mayor of hopetown in iowa hopes that the promise of freeland will bring in permanent residents. the town mare, a program which allows anybody to take small piece of land with no cost as long as you build the home of your own on that plot. over the years, the ten years that the program has been existence, i have the tole you only one family has taken them up on his offer, we thought you would like to know. it's been a whip-saw kind of
11:19 am
week for stocks all over the week, big tech, same story, up and down all over the place, this is a very big day for your money, big week, in fact, it's our bread and butter, this is what we do, we are all over it. more varney after this.
11:20 am
11:21 am
11:22 am
11:23 am
stuart: the market news is this, we are really coming back. the market opened 9:30 eastern time as it always does and we were down 500 points. less than two hours later we are down 146 points. now before we went on the air, before the program started and the market opened, it was assumed that we were getting into a trade war because it was tit for tat tariffs china and america, now the realization is that it's a proposal, that's all it is. ashley: now maybe buying opportunity. stuart: well, said, some of our guests have said exactly that. >> i think the big headline for kudlow already back-cut negotiations underway. stuart: you're right, that was in the interview. commodity prices, boy, have they taken a hit after the dueling proposals, jeff flock at the
11:24 am
chicago exchange, jeff, looks to me like farmers have taken a real beating today, spell it out, please. >> well, they are, it's also coming back soybeans also coming back, by the way we never come over into the agriculture mix, that's the soil bean pit, and over here the soybean pit. it fell when the news broke but we have recovered, the prices got so low, guess what happened, guess who came in when the prices got real low, the chinese apparently came into the soybean market and bought a huge number of soybeans. you know, you've heard things don't amount to hilla beans, a very large hill because this is $1.4 billion in trade between the u.s. and china. it is a huge winner for the u.s., but they've got to get these beans from somewhere, if
11:25 am
they don't get them from the u.s., they don't have other options, brazil is another option, but they can't get all that they need so they've got to buy u.s. beans, this is why when people say this is going to hurt the chinese more than it's going to hurt the u.s., certainly when it comes to soybeans, there's something to that. ly leave you with the bean pit. stuart: they are buying a ton of those beans without the tariffs, smart move. jeff: did them a favor today. stuart: concrete evidence of how the tax law is hurting high-taxed-democrat-run states. example condo in manhattan, down 25% this year, people are not moving in to these high-taxed states and cities, actually just wait until you see the numbers of people moving out, there's another story. big board, down 144, stocks are coming back at least a bit. we will be back. you know what they say about the early bird...
11:26 am
11:27 am
11:28 am
he gets the best deal on the perfect hotel by using tripadvisor! that's because tripadvisor lets you start your trip on the right foot... by comparing prices from over 200 booking sites to find the right hotel for you at the lowest price. saving you up to 30%! you'll be bathing in savings! tripadvisor. check the latest reviews and lowest prices.
11:29 am
stuart: i keep saying it, it's coming back, it's coming back. we are down 150. we were down 500, joining us now -- ashley: it's coming down. stuart: thank you very much, indeed. [laughter] stuart: the man who wrote this book, the book is called crisis
11:30 am
of responsibility, the man is with us, david barnson, he's a big-time market watcher and investor, aren't you, david? leave it at that. larry kudlow said we are not in a trade war, what do you say? >> well, that's the whole issue, the jitters from the fear that we are going into one and china has been pretty smart here, they started off real small, originally targeting 2 or $3 billion of import, the market dropped huge, we start to regroup a little, they come back with something much bigger overnight, futures down 700 points when i was up at 3:30 this morning and now after larry comes on your show, no, no, we are posturing, we are doing this and that -- stuart: proposals. >> on both sides. stuart: neither side imposed a tariff. >> proposed, not impose.
11:31 am
stuart: negotiations as oppose to flat-out trade war. >> i think that this is a tricky time to be doing it in this way when you factor in the fact that the fed is slowly normalizing, we had the big run, markets are certainly vulnerable. stuart: just a moment ago we had facebook which is still down significantly. the news this morning is that mark zuckerberg, as you know, will testify before congress a week from today, this is a very big deal, is facebook down because they don't he'll perform very well? >> i don't think so. he has an opportunity to perform quite well, fundamentally, the issue is just valuation, you can't have this much bad news come into -- stuart: investors are trying to valuate facebook. >> that's right. you remember back in the day after a financial crisis whenever they had the goldman
11:32 am
guys in senate hearing, the stock would bounce around with it. the investors are the ones saying the stock needs repricing, it's valued too high, the whole new-tech arena that's had such monumental moves upward got rich and have to adjust. stuart: i'm surprise today hear you say that. if you gave facebook users a free choice, you have a free choice and facebook gets to use your information because you are using the service, what's wrong with that, 90% would say nothing wrong with that. >> i don't think that's the issue at all. the issue is even before some of the more recent controversy with cambridge, the stock was trading 80 times earnings, if you go forward at 50 times, so now we think it's cheap at 42 times, i mean, it's still expensive. price for perfection sometimes works if they execute perfectly. they've shown vulnerability in execution. not the kind of thing we want to buy. let's say it goes much higher from here, does it make me wrong? no, it's still not a good play
11:33 am
when you the ciscos and intels and ibm's trading 10 to 15 times earnings paying 3, 4% dividend. it's a safer play for what we do. stuart: look at this, now we have come even more, now the down 116 points. was down 50 two hours ago. >> we are going to close up today, stuart. stuart: you think we close up? >> i do. stuart: why? [laughter] >> the feeling here -- when you this kind of movement, kudlow piece was a big deal. they are serious about this, they can posture but avoiding a trade war, having that kind of grown-up supervision in the room at any seat is a big deal for markets and came out and calm markets, if pete navarro had came on the show, we would have been down 800. stuart: really? >> i mean that seriously. i'm happy that it was very delivering the message today.
11:34 am
stuart: david -- >> free trader like me. stuart: he is. david, thanks so much for joining us. >> always a pleasure. stuart: thank you. to the tax plan, why not, high-taxed states are taking a big hit under the new tax law, we are starting to see some evidence of this. condo sales, manhattan, down 25% the first quarter this year, that means rich folks are not moving to these high-taxed democrat run states, wait till you hear how many people are moving out. joining us dan mitchell, it's a double whammy, isn't it? the rich people, the 1% are not moving in and those that are there already, a lot of them will move out, am i right? >> you're exactly, right, stuart, the whole story is shot on steroids for me because for years we have seen the trend of well-to do people, successful entrepreneurs and investors
11:35 am
deciding it's not worth it, the amount of tacks i have to pay to live in new york city, to live in california, it's just not worth it for me. i will move to zero-income tax states like florida and texas and elsewhere. because of tax reform and we no longer have the federal government in effect subsidize high-taxed states the process is continuing. you know what i think is stronger evidence than what you cited, look in new jersey, you have a new hard-core-left-wing governor with state legislator that's dominated by democrats who are in the pockets of the public employee union, even they are getting squeamish about raising taxes. they know that there's not a berlin wall that traps rich people in the state. they raise taxes even further, people disappear. stuart: by the way on that note, on new jersey, i studied just the other day and quoted it on the show, 10.2% of all new jersey households, that's about
11:36 am
300,000 households will actually pay more in tax overall because of the new tax plan, they are the worst-hit state in the nation, i suspect that a lot of people will move and i suspect we will see an exodus from california, new york, new jersey and maybe illinois as well. >> again, it's already been happening but been dribbles. i think it will accelerate because of tax reform plan and i think that's good news because i want a state like new jersey or illinois to realize, okay, we are going to try to just raise people with high taxes, we will suffer feedback effect and that's the only thing at tend of the day that might actually force the state governments to become more rational. stuart: do you think we will ever see the day in our lifetimes where these high-taxed
11:37 am
democrat states actually lower taxes? >> that's the key question. you ought to have a contest, which state will go bankrupt first, because they don't do the things that they are suggesting, will it be, new york, connecticut, they have huge unfunded liability for the government workforce, they have the taxes that are driving out the successful people that are paying bills in the state. think about it, in illinois, in all likelihood you will have hard-core-left-wing governor take over this fall matching what new jersey did last fall. some of the states, they are heading in the wrong direction and the political class wants to step on the accelerator and the question is will the rational left, if there's such a thing, would they say behind closed doors, we better not do because the geese who lay the golden eggs, they will fly away. stuart fascinating question. we have to follow this one very closely.
11:38 am
i never expected the salt provision to be in the tax reform bill but there it was and that's the killer of high-taxed -- >> great news. stuart: flat out is. thanks for being on show. i want to update the exodus story. it's a great one. we have an ohio coal company firing for bankruptcy, asking the federal government for a bailout, energy department spokesperson says the request is now under review. got it. two to have biggest drags on the dow today, first of all, look at boeing, down 8 bucks, was down a whole lot more than that and caterpillar still on the downside but, again, was down a whole lot more before this market started to come back, so two stocks in particular we are looking at there. fewer people are using obamacare, new numbers show 11.8 million people enrolled in this year's exchange plans, down 3% from last year. then there's this, president trump not letting up in his
11:39 am
fight against amazon, he says they are taking advantage of the postal service and he wants them to pay up, that will be amazon pay up, we are on it after this.
11:40 am
11:41 am
>> hello, i'm gerri willis from the floor of the new york stock exchange, stocks turning around here, we are seeing better numbers from the dow jones, 158 points, had been down 500 points. the nasdaq flirting with going positive, obviously stock up session low but traders telling me moments ago it's larry kudlow rally, kudlow's comments on our network at 10:00 a.m. turning stocks around, what they liked about it is stock market aggression was mild but overdue, that the market will like nafta, kudlow is a voice of reason and tariffs are only proposals at this time. big change in stocks, looking better this afternoon, we will stay on it. thank you let's begin. yes or no? do you want the same tools
11:42 am
and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. ♪ with expedia you could book a flight, hotel, car and activity all in one place. ♪
11:43 am
stuart: the shooting at the youtube headquarters in california looks like another example of a person with mental health issues going into the workplace and opening fire. fox news medical correspondent dr. mark seagal is with us now, let's get right at it, can a doctor ask a patient whether or not you have a gun in the house, can you say that? >> yes, if i have reason to suspect that you might be planning something. there's no across-the
11:44 am
-board law but i can say, what's going on and if somebody starts talking about having intent to hurt himself or harm someone, it's extremely important that i find out what kind of weaponry they have. stuart: highly unlikely that a mentally deranged person will say to a medical doctor, yeah, i will go out and shoot somebody, it's much broader than that. >> yes. stuart: you to figure is violent bubbling under the surface of this patient and then you ask them if they have a gun. >> bingo. you figure out how they are feeling, you know, what they trust you usually. i've had patients say things to me like this, not that they are bound to kill himself, but that they have rage. stuart: really? >> patients do not hide rage from doctors they trust. i'm betting that she would have talked about this, she has hatred all over her website, quote, adolf hitler. real and terrible horribles that
11:45 am
she was circulating. i bet she would tell her physician about it. it's not about guns, everyone says it's about guns, it's not about guns, it's what's inside somebody's head and what they have an intention to do. this is hock -- homicidal rage. stuart: if you know that somebody has a mental condition, should that be used as grounds to say, no, you can't have a gun and if you have a gun, we will take it off you, would you go that far? >> i will go this far, stuart, tell me if i've answered the question, i have a right as physician licensed in the state to report to the state any type of activity that i believe it's either suicidal or homicidal. i think we are already covered with that. i should report this to the state, if i have a patient that will do harm, i am under
11:46 am
obligation to report that. hippa goes out the window. hippa does not cover times when a patient would harm himself or others. stuart: how come so many people that are mentally deranged get a gun and kill people? if that's the situation, if they go to a doctor and the doctor perceives rage and the doctor has an obligation to report that rage to the local police or the fbi, how come this kind of thing happens so often? >> because a, i don't think we do enough mental health screening in the country, we are focused on gun and not intent, we don't have enough psychiatrist, enough psychiatrists that are seeing patients like this. there's plenty of signs in this case. i'm not talking about 1984 where you see on the web and some psychiatrist comes knocking at your door, i'm not talking about that, but our primary care doctors like me should be out there looking for behavior that's very strange and potentially violent. stuart: we expect to see more on this, more doctors understand
11:47 am
that you have an obligation, fair this out? >> i'm doing this on a daily basis. i'm not looking for murderist rage, are they stable, what's bothering, are they sleeping, are they eating, are they angry, how do they feel about their life, how they feel about the relationship, how they feel about youtube, that's something that i should be thinking about. ashley: that's a lot. >> she wasn't hiding -- stuart: everybody has some trouble in their relationships, don't they? >> the person they talk to about it is their doctor. after many years of experience how severe it is and how stable they are. i'm a gatekeeper. stuart: you're advocating doctors be the first line of resistance -- ashley: of defense. stuart: of defense i should say against people with mental disability getting a gun, you are the first-line guy now.
11:48 am
>> i don't think it's the issue, i don't think it's guns, school teachers have the same obligation. stuart: you put your obligation on defining behavior. you taught yourself into a corner? >> no, stuart, because if i miss it, i will feel terrible about it. stuart: do you think the public opinion is shifting in america towards a position where some form of restriction on guns is going to be acceptable to the massive population, do you think we are moving there? >> yeah, i do. i don't know, but seems that way. stuart: subjective thing to say, seems that way to me. ashley: it does since parkland shooting for sure. >> i don't want us to miss the mental health issues. ashley: big part of it. >> i have seen the big injuries that you get from the ar-15, we
11:49 am
talked about it on the show here. underneath it all there's a deranged individual and i want us to be able to get that out. stuart: nicely said, youngman. check the markets, please, yeah, we have come back, we are down 500. down 129 now. more varney after this welcome to the xfinity store.
11:50 am
11:51 am
i can tell you about... streaming the most free tv shows and movies on the go. yeah, and... xfinity internet. it's so fast! and you can save by... by getting up to 5 mobile lines included. whoa, you're good. i'm just getting started. ♪ simple. easy. awesome. come see how you could save $400 or more a year with xfinity mobile. plus ask how to keep your current phone. visit your local xfinity store today. if you're approaching 65, now's the time to get your ducks in a row. to learn about medicare, and the options you have. you see, medicare doesn't cover everything - only about 80% of your part b medical expenses. the rest is up to you. so if 65 is around the corner, think about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they help cover some of what medicare doesn't pay.
11:52 am
and could save you in out-of-pocket medical costs. so don't wait. call to request your free decision guide. and gather the information now to help you choose a plan later. these types of plans let you pick any doctor or hospital that takes medicare patients. and there's a range of plans to choose from, depending on you needs and your budget. so if you're turning 65 soon, call now and get started. because the time to think about tomorrow...is today. go long.
11:53 am
stuart: home buyers reportedly busting budgets, a survey finds one-third of the people shopping for a home spent more than they plan, $16,000 more than they plan, why? starter homes are getting more expensive, according to case seller, that's a big jump. i want to talk to eric about president trump going after amazon. he happens to be with us right now. i'm trying to get this out. help me. you're a former white house press secretary, have i got it right? >> there you go, you nailed it. stuart: at the top of this hour i said that president trump was going after jeff bezos, owner of the washington post, founder of amazon because it's a personal spat between the two, do you agree with me? >> i100% agree with you. stuart: really?
11:54 am
>> if amazon and amazon's owner jeff bezos owned say trump magazine, donald trump would not go after him at all. i think this is 100% because of the coverage of the washington post and that's what drives this. stuart: if that's the case, ari, what do you think of this, should a president of the united states take on a very important company and trash its founder and go after the stock? should the president do that? >> no. no, i don't think this is the right way to do things but what you are seeing something that donald trump is used to doing, using leverage, how do achieve an outcome, he will use whatever leverage he has external in this case, amazon company to influence the washington post if he think that is will create a result. i think that's what he's doing. i can tell you he will create any result of the washington post, they are too fiercely independent, they will never cave or buckle to commercial pressure.
11:55 am
i think he does have the ability to change amazon to some degree, job-owning can be effective but i also think more effectively presidents should not go on companies unless there's clear malfeasance and i don't see that here. stuart: do you think the whole approach of the president which he's consistent, opens with a very strong bargaining position right up front, hits them between the eyes before they can start moving, moves on from there, do you approve that strategy or that style? >> well, it's the president's style. and i think it remains to be seen how effective it is, i'm open-minded the president doing it. i think the president has come to the conclusion that china has been taken advantage of america and america has not fought back and he will hit china between the eyes even if it creates volatility short-term in american markets, he ultimately
11:56 am
wants to be the one that changes china's behavior which would be a good thing. what he does to change behavior pushes the bounds but maybe necessary to change behavior. stuart: if the white house director is offered -- >> no. stuart: how many seconds would it take for you to say no. >> understand, this is not aimed at the president or anybody inside the white house or his team. i'm done. i spent 21 wonderful years in that town and if john mccain had won in 2008 and offered me the job my answer would have been no. mitt romney, no. president trump, 2016. i loved what i did, i love the private sector better. [laughter] stuart: may i ask is that because you make more money in the private sector, just asking, ari? >> whatever i took out in
11:57 am
government salary i have repaid in taxes, let me put it that way. stuart: i think that's a pretty good answer. ar, thank you very much for being with us, you're a good sport and we appreciate that. >> thank you. stuart: i promise you they'll be more varney after this.
11:58 am
. . . .
11:59 am
stuart: 10:00 eastern time this morning on this program we interviewed larry kudlow, the president's new chief economic advisor. i am told that what he had to say moved the market. lizzie, prove it. liz: he said there is already back channel negotiations underway with china. the market was down 403 points according to senior editor charlie brady at the start of your interview. now it retraced back. stuart: so we moved the market? ashley: basically what you said at the outset. this is not a trade war. it's a potential trade war. we haven't gotten at the stage.
12:00 pm
liz: it's a process. stuart: when you move the markets talking about a few billion dollars or sideways whatever. that is what we did. i'm very proud of that. i will hand it over to neil. what will you do for the market, neil? neil: i thought his comments were idiotic. here is why. i'm watching official response to this all fronts. minimizing tariffs two different products have broken to more than 1100. everything is contained, everything is fine. i don't care whether you're own the right or left, trying to step back saying this is all fine, i don't know. this seems to me. you were very good pursuing this. the fact of the matter is, and i saw his counterpart on that other station with the consonants in it, just as

76 Views

info Stream Only

Uploaded by TV Archive on