tv Varney Company FOX Business May 14, 2018 9:00am-9:36am EDT
you have a great day everybody. that will do it for us sail place same place. "varney & company" begins charles in for stuart this morning. take it away, charles. >> good morning maria in for stuart varney but back tomorrow we have a lot of big stories for you today. a historic day in the middle east, parking lot american embassy moving it to jerusalem after decades of promises by other presidents, president trump,s we're going to take you there live. also overseas, mike pompeo says there will only did a deal with north korea if a totally dismantleses its nuke program ad president trump in a surprise tweet offering deal to chinese tech giants set trump wants to get them back into business and the stock now market on seven day winning streak in opening in 30 minutes to kick off monday "varney & company" to be begin.
>> this is a momentum -- president trump is making history and our people will be e trnlly grateful for his bold decision to recognize jerusalem as israel's capitol and move the embassy there. >> well, happening right now the american embassy is officially opening ceremonies in jerusalem ashley you have to break down. >> hear from the president fairly shortly not in jerusalem by the way and speak to those gathered in jerusalem video link but we have a deputy secretary of state john sullivan is leaving the delegation in jerusalem he's there along with ivanka trump and jared, of course, advisor to the president. treasury are secretary -- steve mnuchin will be there and peace jason greene, this is going to be culmination of something that is talked about for many years by previous presidents and looking at remarks that we got ahead of
time from jared kushner who says while presidents before him have backed down from their pledge to move american embassy once they're in office this president says jared kushner delivered because president trump makes promise e he keeps it. that's the theme. >> and this is where a lot of presidents make a promise and only one able to do it. thanks a lot ashley. meanwhile israeli troops by the way -- you're going to ask about a lot of violent clashes on gaza border seen this going on but let's not forget that opening l moving of the embassy to jerusalem coincides with 70th anniversary of creation of the state of israel back in 1948s that led to vinyl clashes on the border with -- the palestinians upset last report i've seen 37 dead, hundreds injured as they continue to attack israeli force on that border there and israeli soldiers using bullets. trying to keep -- >> by the way is on top of the
42 killed since march 30th and 1800 wounded? seems like this is escalating right now. it's on top of it i think -- it was 16 and then 42 palestinians killed. >> number keeps climbing joining us now danny, the israel i can ambassador to the united nations thanks for joining us. >> good morning. what an amazing day for israel opinion for a date of king david and capital-of-the- jewish people and to trump first -- that and people who follow the u.s. tomorrow guatemala president will arrive they're embassy and will come also shortly who see more and more embassies moving to jerusalem we're grateful for president trump for taking a bold decision. >> why is this controversial in the first place so many american presidents have said that they would do this none of them actually accomplished it. what stopped them from -- from getting it done? >> issue of timing you have a advisor somebody from the state
department or other agents who tell you this is on the right timing even when president truman wanted to recognize back in 48 and you could do it but not now. wait. so when it comes to to do the right thing there's no issue of timing also about iran. another strong decision, and issue of time was crucial when you have one to take and that's right today we're celebrating with the american delegation which arrived to jerusalem. >> ambassador all of the united nations not -- not an organization has been very friendly to israel per se and certainly the majority of them to have been slengt or condemn iting this move what do you make that have? >> unfortunately focusing on the real issue instead of focus on what's happening today in syria, instead of condemning -- worth sending as we speak thousands of to clash with our forces. the u.n. is not common deming the hamas but focusing on
condemning on either his u.n. and you see a change in this building. >> wow. but it has been going on for quite a long time. what had is it that the u.n. doesn't understand about the history of the region? what are they getting wrong? >> i think it's easier for them to pox on israel you see number of revolution against the embassy and security counsel instead of the real issue and this iran which responses to the entire middle east in the lebanon, syria, yemen, you name it you'll find one. so i think it is easier for those u.n. members to focus on israel and also the real issue. >> ambassador liz, emac and ashley talked about -- how many palestinians died since march protesting this also to my understanding not -- massive day of protest and outrage, obviously, tensions gong to be pretty high now for the next few day perhaps weeks or month the. how does israel what do they do to help tamp down the
frustration of the palestinian people here? >> outrageous what we're seeing now hamas is committing double war crime and attack civilians by using palestinian orchestrated and a lot of demonstration that is trying break the fence to enter israel and attack next to the fence to befriend we have to protect our border. but you know, i feel for those palestinians sent by hamas saying behind hiding and send to the fence. i think that could condemn what we're seeing here today. >> ambassador thanks for joining us. my pleasure. >> well the stock market right now, the index indices pointing that we're going to open higher this amid easing trade tensions with china. and part of this -- , of course, might be a tweet that we got from trump on chinese tech firm president shi of china and i are working together to get massive phone companies way to get become into
business fast too many jobs and china laws congress department has been destructed to get it done. joining us now is fox news contradict tore with editorial board so can president trump fix this and this is going to be part that have grand bargain you think? >> i'm not sure we want them to fix it. this is, obviously, not something he xawned on to save jobs in china. we do want to get the benefits of trade but this is an interesting one because zte tell come equipment china is source of a lot of cyberattacks an high profile ones in recent years. but big hack of government information personnel records. so in terms of wanting to help chinese companies, i would think this would go pretty far down on the list so as you suggest the question is, what is the president getting returned because i think this is a big gift if he help it is revive zte and question is, is he getting huge pressure on kim jong-un from the chinese or is he
gettings something big in terms of opening access to the chinese markets for our companies? >> going to have to give something in other words shi will not completely flex to president trump, the emperor of china to wait out for a eight year term no matter what hen he has to look good in front of his people and a brands bargain done here. >> he's dictator so he has discretion that our president does not have on the other hand china -- relies in terms of size of their economy more on trade with us than we do on trade with them. so i think there are cards to play. i think what you would like is that -- you see the market opening companies in the u.s. not having to join and venture tariff walls coming down but if he's saying zte -- you know, let's help you welcome you back to business with the u.s., he ought to be getting something big in return and don't forget the reason this is cut off is because they cheated on sanctions to iran and north korea. >> i will say biggest winner
this morning when open could be a communications up 17% because zt serks fourth largest smart phone seller in america so all of the big winners in america quite a few including and gas price near a three-year high. some are driving and a couple of weeks away, so big question is, more pain at the pump? james. >> i think what's interesting is you think about where oil prices go. there's a -- story in our paper the news side of our paper todays about how drilling has really gone up outside of that famous basin in texas so they've had bottlenecks there and trouble getting supply to market. oklahoma, north dakota this higher oil price over the last year, so is inspiring more drilling, rig counts are going up so i think the ability of american frackerses to meet this market puts some kind of a lid on oil prices. >> also you know dollar
strengthening drives oil prices down. you know what the president is doing with israel -- is major for the middle east you wongd per we're on the road to middle east because now you out of scraib and bahrain siding with israel. so you know we know that supply has been, of course, hurt by what is going on there iranian supply as well. it's whether or not we can -- you know fix those supply issues. and off the market. >> also i guess these guys don't want to ms it up thank you all very much. the new hawaii volcano warning -- we've got coming right up right after the break. ♪ with expedia you could book a flight, hotel, car and activity all in one place.
he's a new hawaii volcano warning ashley has -- >> a volcano that continues to rumble and grumble we've had what they call these fissures that open up so a lava comes up through the ground we've had 18 of those now that have opened up below actual rim of the volcano. now, officials are very concerned eruption could be
brewing that whats again, they say bolders the size much refrigerators could be blown far into the sky. this is a situation that continue it is to -- unfold they don't believe this is going to calm down any time soon. for those, of course, trying to get back to homes if they have any home it is this is a frustrating situation the president already declared a disaster in hawaii because of this. >> you know, for people trying to get back to homing a lot of them you know are not ensurable so it's really -- we, obviously, hope people survive but even beyond surviving it's a -- real tragedy financially for them if they have a lost home without insurance. >> i find it strange to have two subdivisions within a proximity act aive for last 35 years one of the most active volcanos in the world so -- >> a lot of them in this area and down west coast and it can trigger earthquakes as well. that's terrifying. tragic thanks a lot guys secretary of state meek pompeo says president is seeking a long-term arrange wment north korea and already be a deal if
they just totally dismantle their nuke program. i want to bring in fox news contradict tore jason former republican congressman from utah. all right, there is a big question everyone continues to ask is that kim jong-un will give ugh nukes in nuclear ambitions? empleght well they've got the best shot at doing that that we've had in decades and president trump i think through strength is pulling off mike pompeo has done a trick job been in that position a short time but certainly in his position of this cia -- at the, you know, and you know, understanding the intelligence behind this scene. whatever they're doing it's working because it's moving in the right direction. >> you you know so interesting u say that because former secretary of state robert are gates over the weekend that north korea gotten attention and brought them to the table and made confessions that jason really we've never seen before. i know they've done things before and sort of debate and
switch. but there are reasons to believe that maybe this time kim jong-un is considering different path. >> well, you have the dynamic in china you also have the dynamic in south korea and japan. and those partners along with the united states i think, and tough position that donald trump is taking, you look over the last year, every critic of donald trump was out in force beating their drum say this would be a disaster but if yowment a dichght result you have to do something different and president trump did something different and now this meeting coming up in june is a pivotal one. >> jason and president trump tweeting about the budget, quote, the senate should get funding done before the august break or -- not go home. wall border security should be included also waiting for approval of almost 300 nominations worst in history, democrats are doing everything possible to obstruct all they know how to do. stay. all right i bet you don't -- >> president trump -- >> yeah, go ahead.
for president trump is absolutely right on this. i mean, it is embarrassment republicans have lovers and house of power and presidency and they immediate to move forward on this budget process to house is traditionally even in the last year, moved the 12 appropriation bills but the senate doesn't even pretend to do if they don't pretend to do the appropriations bill. now they have a chance to are redo redecision of 15 billion which represents barely more than one day of spending but you know that's good and they should do it. but get their act together. don't wait until the very is last minute when there's hours to go before a shutdown and do another continuing resolution or they should be doing these appropriation bills now. there's no excuse to go under recess without getting this stuff done. >> what is then, what is the -- position and mitch mcconnell and is this a traditional thing it feels like it's all about tradition it doesn't want to use nuclear option but use regular order and do things done in a
general fashion etch though there's a different kind of tone in d.c. these days nothing to do with governorring. >> well, the problem is, the leadership gets into position and they don't want people to take tough vote and if they don't have to take tough vote they say it is an election year but perpetually hired to do and make tough votes so they try to protect themselves an play defense as opposed to allowing members to offer amendment tas may put other members in a difficult position to make tough choices that's why on both sides of the aisle both leadership, they avoid these types of things but that's also why we end up with 20 trillion in debt everybody says yes to everything. >> that's also why to your earlier point continue to come up with last minute deal where is it is just this crazy horse training that no one reallyies certainly big loser is the american public. >> yeah. this is expensive folks we're paying nearly 700 million a day
in interest. we doapght get anything for that. we're spending more than $12 billion the day most deep budgets are two or three times that but we pay that on a daily basis. now they're trying to resend 15 billion dollars in make a little sliver. but move in the right direction, but put a responsible budget together and take some tough votes and do it before the deadline so we don't have to have this -- silly issue. >> let you go they be because we're run aring out of time president trump put this public pressure on congress will this help or just kind of, you know -- again stick to their old script they don't think they have the votes or make a tough decision but avoid them. >> hey, really is up to the senate because traditionally house has been doing this. the house has been doing its work. but when the president says then when the senators go back for their town hall meeting they hear from the public that's what does make a difference. >> thank you very much. really appreciate it. >> thank you. all right here's the big number for you.
student debt just hit 1.5 trillion that's trillion with a t up from 600 billion just ten years ago. more varney, next. liberty mutual stood with me when this guy got a flat tire in the middle of the night, so he got home safe. yeah, my dad says our insurance doesn't have that. what?! you can leave worry behind when liberty stands with you™. liberty mutual insurance.
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crowd via video. we will take you there when that happens. meanwhile students just 1.5 trillion dollars and good at 600 billion years ago james with us. is this the next decide bomb we should be concerned about? >> this is a big way that consumers kind of -- rained in their spend and debt after the financial crisis a lot of other categories credit card debt and mortgage debt went but student loans exploded and particularly concerning is the taxpayers much more on the hook than they used to be due to changes during the obama era and every once in a while there's so much news now kind of gets lost. but periodically the government will report those default rates and they keep going up and as a taxpayer you have to be concerned, obviously, it is an issue for these kids burdened with huge debts. >> there a level of defaults or, you know, with the delinquencies that sort of red flag number that we should be looking at?
5% 10%? >> a lot of categories we're there so ting that -- there's a red flag and it is different for other debt markets because these are loans not extended after a careful evaluating person ability to pay. >> and pricing of colleges and universities keeping tuition high and gouges middle class families they get a bailout of federal grant money and financial aid. so you know, they don't have any incentive to keep tuition costs low as long as they're nonprofit. >> not only big changes made on obama change but you may not have to pay for this save it there. stock market will open here real soon on one heck of a winning streak looks like keep it going. take a look at this folks dow futures across board all higher and also watching russell 2,000 that is the best proxy for u.s. embassy a great chance to open at a new high. we'll be right back, "varney & company."
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benjamin speaks we'll take you there live in the mean tile it will raise in ten seconds ab market is on remarkable rally seen major gains across the board tech is on a remarkable but still have industrial name and building blocks of the economy and looking fantastic up 62 points out the gate. populating board so far most of the dow components are in the green being led by general electric might be bottom fishing there. dupont again chemical name you don't hear about it. caterpillar coming out gate very is strong. take a look at the s&p 500, a broader index doing extraordinarily as well pretty good start right here out of the gate then, of course, there's nasdaq, it is been a jugger not continuing to be up 25 points right here out the gate. joining us now elizabeth macdonald ashley webster jeff, and james freeman, we could actually now see eight session in a row with dow up.
i say two days ago we made a turn that i'm jeff might have been near term aflexion point that takes us considerably higher. >> incredibly impressive is level of momentum but what i've been saying all along is that declines we're getting are not nearly declines that we will eventually get but once this gets momentum it is very difficult to reverse that momentum. >> and a test to ojai to retest that january 26th? >> i certainly think we're going to retest that high but i think once -- once market wins to absorb sort of concerns about trade and concern about rising interest rates and maybe some flaws in the five text stocks priced to perfection we're going to see yet another sell so i don't have what i would consider a real selloff. we have a textbook correction more than 10%? >> when you have a market that's up 200% 10% correction is not enough of a correction for me to
be in. >> stock buybacks that will help market tremendously right -- share numbers will look great. jp moore ban is seeing 800 billion that's bold. >> thing with stock buybacks is -- that timing of the buybacks. they give the impression that a stock is, is rebounding when, in fact, it's a byback program being initiated. >> well, i don't know. warren buffett likes apple buyback. a shareholder with 100 billion in stock. interesting you brought it up but because about buybacks one point to fact that it is a welfare program for ultra are wealthy. but i will ask you this, james. with respect to these possible headwinds that jeff brings up, some of could be tail winds if we resolve china in a positive way if we resolve nafta and north korea in a positive way these are catalysts aren't they? >> not welfare when you you own assets an you derive a profit -- by the way, but yeah.
they could be tail winds. i mean, i think with nafta you're just hoping that the president wraps it up and call it is a win and doesn't do too much damage. what he's seeking not good for growth to be clear. having the government say -- we want more products built here versus in a different part of north america setting wages. this is not good for growth. but i think maybe markets are thinking it's not going to be the disaster it might have been. >> you're sayingish is, and modeling when i do my modeling for markets begin with peace and prosperity if you don't have that at the base of your work then it doesn't matter. nothing else can happen there. talk about oil for a moment because it is sitting above 70 a barrel and we know gas prices down to three year high. more pain at the pump ahead. >> now on iran, and o'speck keeping supply and very, very low -- russia is going to -- going to intentionally keep supply low, i think we're going
to get more of an increase in oil prices through the summer. but i think there's a lot of volatility so oil traders have to be very careful that they're not on the wrong side of this street technology >> what about oil stock investors because there's a oil started, oil rally did time off lows for oil related stocks are just now getting moving. >> i think there was a concern that we go through these cycles that are companyies aren't going to be as responsible as investors would like with their cap, they've shown that discipline now i think as price rises we've been talking, there's an argument. not so much for the majors who tengd to do big project but frackers to drill more. >> spirit of wild catting what they are all about. so not saying long-term planning first they say let's make the cash while we can make it. >> i think that piert is alive and well an that'sy wonder how much higher. >> who has most influence because saudi arabia says next
month at the opec meeting they push for crews to get to 80 do they have upper hand and have we taken it in this country? what do you think? >> unfortunately at least or for time being they have upper hand and i think they're going to continue to restrict -- to initiate our power by restricting supply, so until we do something drastic with opec they hold reigns. coming top producer ahead of russia, and the reason look the crown prince is trying to completely revamp his society because of that because it is too reliengt. ashley point is right also that ipo study is -- and mankind all right hey, tesla got to take a look at it with another crash this time in utah and company chief -- of nrmings taking a leave of absence all right yen so we know that headache are piling up and elon musk on tremendous amount of pressure but stock has been hanging in there above 3,000. >> i hope he doesn't ruin self-driving cars for everyone because -- this technology really should be better than humans.
when you leave it up to software, you should have lower accident rates, and whether you know the particular tesla models can be assembled correctly on team that's really the question with that company. >> i just think that the whole self-driving car thing -- i know so many people are excited about it.