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tv   Varney Company  FBC  July 6, 2018 9:00am-12:00pm EDT

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administration some guidance on what their strategy is on trade. >> yes conclude these agreements get a great deal and put mnuchin in charge of trade tell people go back to academia. >> charles payne you were missed but you have three hours go, my friend. go. >> have a great weekend stuart will be back from vacation next week we have a ton of big stories for you first let's start by the way this the first friday of the month it is a good one a lot of things at work here. government moments ago releasing that big monthly jobs report coming in better than expected 213 jobs added last 2.7 year over year. whole thing all arranged very solid. meanwhile 34 billion in tariffs on chinese goods went to affect the midnight last night. comien responding by slapping tariffs on american made
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products calling, quote, the biggest trade war in economic history. that's money here's the politics a big shakeup at the white house. epa director scott pruett stepping down yesterday this after months of ethics controversy and secretary of state mike pompeo arriving in north korea for another meeting with kim jong-un in a big question. will they stop their nuclear program? "varney & company" starts right now. >> the wall lost trade many years ago say the not a free trade. no, no the war was lost but now we're going to win it because we have all of the cards. african-american and hick american unemployment have reached the e lowest levels in our history of our country it is incredible. we have created think of this, since the election, we've
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created in wealth 7 trillion dollars. that was president trump stomping for republicans in montana last night in rare form indeeds much more on that later. but i want with take a quick look at stock futures an jobs report released a mixed bag right now stronger than expected report. we're certainly off much lower levels of the morning, in fact, at one point this morning, all of the major agreeing so a mix open and up right now. on economy tariffs went into effect at miect, our next guest says trade war with, quote, be horrible joining us now former economic rage began economist, art laugher all right art interestingly enough ronald reagan used tariffs to save harley-davidson and -- didn't say overall this was a huge mistake. >> no. i don't think this was a huge mistake i'm sorry. trade war would be a huge mistake charles. that's what would be bad.
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that's what nixon did in 1972, 71, 72 what happened we're nowhere near that level of a trade war just for the record. we're not. now hing harley-davidson or whatever it was that reagan did i would not have recommended it but it surely wasn't bad. it didn't do any damage to the economy. harley-davidson was deras eggly damaged by 82 downturn in the economy. they have -- losses for 81 and 82 reagan kale in to put on protections but it wasn't that that saved harley dade son it was the tax cuts taking effect on january first 1983 and then an enormous boom from are january first 838 to june 30th we grew in a year and a half. that's at an 8% annualized rot that saved harley-davidson it was not the tariff protection. >> interesting you talk about a booming economy now historically i don't think president trump is doing this. to spark our economy, per se, but everyone talks about that.
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no one talks about mcit was in a serious depression 1921, 1922 we put on tariffs and all of a sudden sparks a greatest decade at least a seven-year pored and no one ever talks about that. what am i missing here? >> we dropped highest marginal income tax down from 77% to 25% that's what caused the roaring 20s and republicans have always had a taste for tariffs. they always have. and i've been through so many qhowses. but it was the tax cuts of the beginning of the 1920s. on january first, 1923 the tax cuts took effect and bang you've got the roaring 20s which is never been seen in u.s. history. and you know when you look at donald trump, donald trump's policies are wonderful so far. they're had terrific. and the last thing i would want to do is try to diminish those the deregulation, the tax bill. you know, the gorsuch and oh, my
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god what they did it on this one is the -- on the union on the union decision was amazing. that put it right to work in california. in new york, and other states it is a huge effect. so -- >> i just worry. worry about trade. i'll get to the tariffs then we won't debate that one today maybe for another the show. >> we can do that any time yowpght i would love it. i know those periods really, really well. >> let's talk about -- talk about today, though, because this morning art we have a phenomenal jobs report in my mind you have 600,000 people come back to the jobs labor force rather to me that is ultimate sign of optimism of 213 net folk got jobs led by goods producing what i calls call dirty fingernail job 53,000. what do you make of it? >> it is fantastic i think you're right everyone is missing big point is 600,000 increase in the labor force is amazing. that's a 4.4% in that labor force which when you get a
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growth rate of population 1% that is the one area where we immediate to pull people back into labor force to create the economic growth that's possible and will actually occur in their donald trump. this is the first sign i've seen for where the crack has occurred and now people are coming back into the labor force. we have stopped taking all of the jobs out of unemployment roles now bringing back people in the labor force and that is the most optimistic sign i've seen in ages i have this -- i had this debate with jay saying how we can't grow all of this stuff the new left has there -- the, you know, the new normal or all of that. i said no, the labor force is beginning to be why that growth is coming. the labor force and productivity growth you're going to start seeing charles those two will create horrendously good economic growth for next decade. tnches famously we were told it would node a magic wand to bring back manufacturing jobs 36,000 bringing total over 350,000
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since january of last year. art you're the best my man. >> remember i did not say i think there's a trade war coming. i don't know how that got out there that's been reported everywhere. i don't think a trade war i think this president knows exactly what he's doing. but a traitd trade war would be horrible but i don't think that is going to happen. >> mckinney pro and cons of that -- j my guy. [laughter] all right charles if another look at the futures looking -- listen, with there again going to have it open. bring if fox news contradict tore james freeing man with the wall street journal jobs with tariffings how much of it do you think already in the markets? particularly last night's news which was already telegraphed? >> on the jobs i'm a little more optimistic maybe most investors are. i think art laugher is on the right track here. you look with upward revisions 250,000 new jobs, lots of new people coming into the labor force. broad base hiring.
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i think it is a really encouraging report. as far as trade, i think what's bakeed in right now to margins is uncertainty and great economic performance, stock market is kind of moved sideways this year if you have trump say i resolved issues it is fantastic the best ever. i think markets would rally big time. >> but we have to resolve it, though, we can't back out of it and we've gone too far. >> on the other hand if we get to the full blown trade war we have a lot further to fall if that's ultimately result of all of this. >> do you think federal reserve anticipates reax to job numbers. they have a tough position right now in trying to i guess cap inflation which is already running at 2% at their target employment to boost growth incase they bite. >> more than likely what fed is looking at is the wage because when you talk inflation chasing too few goods wages up 2 tenths
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and 2.7% looked like that magic number is 2.93%. we haven't been there unfortunately, that's not great main street but it is good enough to keep wheels going right james but not so good that had the fed feel like they have to put the speed bumps out. >> been kind of a puzzle this year given in survey month after month i see it a lot in the small business survey employers want to hire. this is a big change from the obama era. they want to invest they want to hire. they can't find the workers. so we can kind of woundier are you not seeing wages go up a little bit more and the part in the report with all of these people off the sidelines is, there are still people who can work. who can join work force if they see the opportunity and let's hope this is a trend. >> they talk a lot about this this is a skilled gap every level of ploimght. small to large businesses all bring up the same thing skills gap. i want to ask you about this
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james switching a little bit to plucks epa chief scott pruett he's out, of course, there's a huge ethics scandal and some people are wondering why did it take so long? >> well some of the -- charges against him maybe had nor merit than others but i think, obviously, he had a target on his back and reason it took so long because he was doing good things for the economy and i think that was maybe the dilemma for republicans who might. the to defend him in washington is that, he really has changed the trajectory of that agency toward better science, to cost benefit analysis. toward fighting what are -- what are essentially sort of positions of faith matters of faith for people who are committed environmentalists and that, obviously, earned them a lot of enemies within the swamp. >> well thing i commented on yesterday in fox news is that the epa and under barack obama been something scope of the ep airings i thought it was used to punish businesses to curb motivation whether farmer,
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manufacture i think it took a tole on the economy. >> no question. it added a lot of uncertainty and saw that in reluctance to invest over years an you saw regulation where is waters of the united states -- going after tiny ponds, puddles you will almost. >> dust particles on hand. and part of a necessary correction. >> all right thank you very much folks let's check on futures again here. again, we were down a lot initially. look like we're going a mix open nasdaq leading way to upside lots of economic news today of course is also the news of this so-called trade war with china. the jobs report we've got it all covered with you. in fact we've got a real big guest to come up to help us cover it all the white house counsel of economic advisor chairman kevin will join us live later on this it hour. and then there is some traj aric news we know about this story out of thailand with these kids -- who are -- who are stuck there in a cave and rescue worker died trying to
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save this young soccer team trayed again in that flooded cave for more than two weeks he ran are out of oxygen. we're going to have more details on that coming up. also the secretary of state mike pompeo has arrived to north korea third round of talks big question, though, is can he actually get kim jong-un to denuclearize jordan chang will help us next on that.
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to thailand cave rescue effortings suzanne. so the guy who died the thai former navy s.e.a.l. a tragedy trying to replace oxygen canisters in overnight dive. he died of a lack of oxygen. now he was rying to rescue and help save a 12 boys and soccer trapped in this cave in thailand. and right now they're trying to think of different scenarios because water levels are still rising so they think they have draining the cave the water level in the cave there.
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they're coming up with some potential options and scouring them out to decide for back channel in so they could get boys in soccer coach out. but you know it is a tough task right now as you can see a dangerous mission for all of those -- >> in the meantime trying to train boys on scuba-diving. it is scuba-diving is something they're exploring as well. but time is teching right -- >> it is thank you very much. secretary of state mike pompeo hoping to fill in now those details on how to actually dismantle that country the nuclear program joining us now is art of nuclear showdown jordan chang what ultimately is going to happen here. i mean, we've had this discussion many times but -- it feels like kim jong-un put out olive branch here and near but since meeting with president trump and singapore there have been evidence of back to business as usual with them. with respect to his nuclear ambitions. >> certainly there's been that
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evidence of increase production of material. they've completed facilities at a place where they build ballistic missiles. so you know you have all sorts of evidence that there's been no decision on the part of kim jong-un to give up his weapons and that is really the basis of our foreign policy. that he, in fact, made that decision and because of that charles, we've led up on a lot of pressure with regard to north korea allowing them hallow out sanctions for instance so this is not on a good path. j well we've taken a softer approach -- right i mean it was a tough approach pulled back a little bit. would that be enough, though, with other insentives to get north korea to do that. they understand alternative is a harsh reality. j e women they understand that but they think that president trump is not going to employ that harsher reality. you know, u.s. policy towards north korea was really tough through the end of may that's the reason why president trump was able to push arranged kim
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jong-un get kim to make all of the confessions we made none of them through the end of may but after that, trump sort of switched to the friendly approach we started making concessions kim made none and that's now trajectory we're on. that's not to say that trump can't change it but it means we have to change -- you don't put a lot to put down propaganda posters. it was nice they did and they took it out of the gift store and did all of that but yeah no that's not sufficient. >> was it a mistake to call off the war games, the, you know, was that a one of the big key mistakes there do you think? >> certainly. these exercises are meant to counternorth korea exercises. we are now postponing and suspending freedom guardian exercises in august. but north korea has not suspended its summer training cycle that is also for august so at the end of summer training
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cycle they are prepared to invade south and it will decline especially if it last a year or so because then we just won't be ready to counter counter north n negotiation. >> won't with last a year and we'll know soon enough whether they're sures enoughs and give us location of the nuclear sites, well before a year won't we? >> i that we are not going to allow had this to draw out a long too many but president trump talked about three or four summits now they're talking about a second one in new york. and in september the u.n. general assembly meeting so i'm afraid that they have a very long time frame. president trump at that rally in fargo at the end of last month talked about negotiating with north korea is like slow cooking a turkey. he said it is best done when it is slow so i'm afraid they have a year time frame that make st's not to turkey. appreciate. let's check on futures market will open up in ten minutes we've been over the board and
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significantly off e lowest points of the morning we have a big pop initially off the jobs report. you can see nasdaq look like it will open up fairly strong here. up next more from trump big campaign style rally last night in montana. here he's heaping praise on apple for bringing cash back home trump says it is all thanks to tax changes you'll hear it right after this. i'm a tin can tied to your bumper, 'cause i don't think enough people heard about your big day. now you're so busy soaking up all the attention, you don't see the car in front of you. (tires squealing, crash) so get allstate, and be better protected from mayhem like me. i couldn't catch my breath. it was the last song of the night.
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>> president trump talking up apple for bringing its cash back home. roll tape. >> apple, computer is spending 350 billion on new campuses, on new facilities they're bringing back 350 billion they're putting up their own money. they're going to actually have probably subject to the tax code of our 230 billion comeback. >> all right back to james freeman certainly we would all call this a win. absolutely. apple earlier this year, obviously, very pleasedded with the tax reform tim cook apple krrk oh telling the president they're going to be investing 350 billion in the u.s. over the next five years. in materials of the cash coming back i don't know if 230 will be
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right number but close because they did say of the 270 billion the law kicked in probably be bringing back most of it. >> yeah, and it's interesting i think they may get a confer out in tariff stuff weal see. i know that cook seems to believe they will. the stock sup, in fact, stock got an upgrade this morning so on its way to being a -- >> he was thinking if you're just assembling in china and bringing them back to the united states they shouldn't face a tariff. and i think this was also a reason why you want to wonder about trade deficit numbers if it is put together in asia is that really an imfort to the u.s.? >> right are. it's interesting that's same thing become and forth in mexico supply chain. the debate. all right folks we're going to open here in about five minutes it has been a wild week for the markets interrupted with july fourth holiday you can see now s&p is joining nasdaq with pretty good momentum we may open higher at the open.
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both to downside and upside yesterday the market had smant day knowing that we were going to kick in tariffs and did not matter right now we're looking at nasdaq, rustle and sm perhaps close ohming higher, whereas dow may open flat and opening again here with a quick look at big board the 30 stock starting to pop late already. caterpillar at the bottom that would be proxy for so-called trade war and mcdonald's taking us high per out the gate about even split on it shall on stocks up and stocks down again that's the dow 30 let's attack a look at the s&p 500 actually performing better for the year. slightly higher here at the a open and, of course, jugger naught nasdaq and looking like it would be much higher and certainly it is. we saw a big rebound yesterday and some of those chip names that took it on chip and chias court ruling on few. joining us right now suzanne lee, christina park -- james freeing man, and keith
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fitzgerald all right folks we have to start with this jobs report. keith before i go through it. let me share some stuff with the audience hispanic lash force went up. the employment went up 250,000 and hispanic unemployment rate from women labor force participation 646,000 women came back to the labor force. 342,000 men got jobbed and unemployment rate down to 3.7% what do you make it have overall? >> jobs create growth. growth is happening and it is very real and you cannot mess up those statistics. so that's very compelling. >> christina. >> do you think that this helped president trump in the sense of the trade war right now because here's a strong economy once again so it is more of a reason for us to go to war with with all of these countries at the moment because we have, you know, strength and we can handle it. >> i think it hes them. i think trump voters think he has their interest at heart and trump voters know that old
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school hasn't worked. the idea of hobbling together are so-called trading partner. many of our partners live up to nato obligation to fight back against china. how many of our so-called trading partners don't want to get out of the knew leer deal to fight back against china. we would be nuts to set around waiting for france to get the nerve to fight back. this is only time in the history right now in the history of time we have this last chance i think -- to make a move because susan here's the point, in 1979 china is the percentage of global gdp less than 2% now 15% in the meantime 27 to 24. we are drifting we are drifting and it is something scary a red flag not a yellow flag. >> china during that time is a $10 trillion economy as well so yeah they are growing. they're set to overtake in fact on purchasing power basis bigger than the u.s. but i don't think they want to engage had in this trade war to be honest. they are probably pushed into it. because at the end of the day
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they know that -- they probably are at a disadvantage they saw a lot of goods here to the u.s.. j but not necessarily push in to but they have a average already. so here's irony if you have high tariffs you can't grow an economy they have pretty good for 25 years or so with significantly higher there was a time average tariff was 15% james. listen everybody hopes this negotiation everybody hopes short live and meantime this job report was phenomenal. >> i think that that's why you see smch downside in the trade dispute is that everything else is quite a few clicking right now. the trump tax cut is working and deregulation is working, and one with of a number of really encouraging sewns we've got lately really good read aring on the services as part of the economy from ism. so there's -- there's really a -- i wouldn't say it's a great opportunity of to a fight. why have a fight when things are going so well and i think what's the trade -- resolution whats investment gets
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higher. >> if you were just you got passionate when you're talking about it but why not go after a sectors within china because is this addressing the festive ip which was what this whole trade tip for tat started with? enings trying to make economy derail their my is the goal. >> seeing it on shanghai and which was e by the way -- nasdaq of china. >> that is -- do you know this morning than anybody elsewhere he gets his power from. this is where it comes from this is epicenter of made in china 2025 and now 49% in the last year threes in free fall so you know, listen if the idea and by the way, the tariffs associated with technology going into effect in probably two weeks that will be next 16 billion. but last night, president trump will be as much as 500 billion. overall keith, what are your thoughts on how we're approaching that and risk we're taking? >> well it's, obviously, a huge risk because we need china as much as china needs us.
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that's not a very popular thought but they export every dollar roughly to every dollar they import they trade the change and the key -- is that they used to. port low value goods now they're produce technician high value goods. that's what's allowed them to step on to world stage in fact that you have internal exchanges shanghai and exchanges crumbling means that speculative is in real danger because he can't afford internal unrest. that's the the real consequence of a trade war for him. >> some people call me weird because my favorite story of the week is trucking. [laughter] class a trucking to be exact those beg rigs. but let me tell you something let me tell you about what's going on with the big rig okay. we have had 42,000eded orest lat month we have a record amount of rig ares orders this year and by the way let me tell you something they have index called market demand index it is a index that put the the low
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versus rigs it is if reading 250% higher than when president trump inaugurated that was all time high my point is there are a lot of thing we can look at that point to the economy being -- absolutely phenomenal. i tell people all of the time when you go to the doctor even in emergency room first thing they want to do it take your pulse and check your blood pressure that's what truck aring. this is the artery this is our artery this is the blood this is what's happening. it is remarkable what's going on. you see demand for truck and drivers and put a lot drivers of the work but that's not happening in the immediate future that's a six month period actually l for truckers. >> another indicator of a very -- if you see the reason we're seeing so many rigs ordered
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because it is before it is settled in. >> i'll share my chart with you that i made we didn't get it up through but industry said long time veterans in the industry said it is best freight market they've ever seen and this by the way going on long before there was any mention of -- of the trade war. it is spike last year started spiking in november hasn't stopped since. all right folk let's check a big board down like 60 points. >> down about what -- 7 right now the market dow coming back your other indices exploding higher oil got near a four-year high recently. pull back let's see consolidating as gain not a bad thing if you're holding stocks. certainly it is surprising move, though, considering that opec said they would increase production. meanwhile national average for price of regular gas is still hovering arranged $2.86 all right facebook we haven't talked about it on the air for 37 minutes you're kidding me. facebook top the list of the most download apps believe it or
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not folks we have a headline for you there facebook looking higher. impervious a morning star analyst qarng that well there won't be any real return from u.s. equities over ten years keith i'm not sure how i can figure out that long but are you buying that? market sideways? >> he's talking his own book he's a analyst so i think he's trying to say my own book is pretty good don't do this. but you have a real economy firing all cylinder and put numbers on the board a lot of analysts here. >> as far as -- the u.s. if you look at the -- at the trailing earnings i suppose the stocks looking pretty price you you look at forward earnings they don't look that pricey as long as we're continuing to set these records on earnings on dividends huge capital going back to investors -- bingo and then very good myc growth, of course.
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i think ten years is a long time to -- >> i like to forecast on cheaper on the market than we were back in january susan and success, you know when again when you order these kind of truck are this is kind of stuff it is not a one-team event then you teach someone to drive and then they drive and drive these lows i say that because this proof look at the economy. >> i'm looking at the earnings you came up with that first quarter that saw the best profit growth in nine years, and still there's s&p went sideways. and you have inflation that cuts by .8% by every gain so that might be biting into bottom line. >> but what do you think christina because -- i'm not worried about market going sideways after one of the best years in the history of the stock market. but you take last year the lack of volatility how much we went up very few years better than 2017 welcome consolidate gains money is not coming out on market some of it and ets but i
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liking where we stand right now. >> i think we've hit coming to end of the beginning and earnings expected to be strong i know -- >> as dangerous when we say that because people say that investors sell everything. i know people right now still waiting to get there for selling from 2009. so the dangerous thing to guess when we're at the top. right now because when you miss aally it is hard to get back in when you miss it. i don't know how much we can see going forward. i don't agree with this. but -- >> yes. the debate here right now is -- is are we enjoying a sugar high quote unquote from the tax cuts or have we made the u.s. much more competitive for long-term roads? and i would be in the latter camp if you're talking about government spending that is a sugar high but a long-term reason to invest in the united states versus other countries i don't think that goes away in a year. >> goldman upgraded to technology sector a week ago after the big run that we've --
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>> get in here keith i say a huge difference between that artificial cycle the fed can never get going with all of those -- that money in the psych that will we're experiencing right now. >> but i think james nailed it that's why you have that you can listen to politicians who want to spend where are money to have you follow them or listen to the ceos who are going to earn you money. because they know what they're doing and you know i go with the ceo any day of the week and i think this sets it up for powerful growth if you have broader market the company definitely. >> i agree with that. it is such a terrible cliche. a stock market but it is really i've had so much success with brick-and-mortar retail and everybody is -- nike and -- >> that is hardware. >> it is coming on they vpght really rallied as much as this chart has. but you know, i just think assuming top is a big mistake and people do it and it is human
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nature we doapght do them to your point match the first quarter. but -- if we can continue to grow, which was what i was saying before, though, there's still growth but i don't know if we may have hit that peak and -- i'm just cautious that's all. just going forward. j you have to be cautious. you have to be cautious real quick keith -- q1 and 2 and 3 and logically slow down but with right companies they're growing triple or double the broader market that's where you want to be. >> having so much fun stay with us for a bit we're open at the 12 minutes. dow essentially unchanged. but the the other indices looking better right now. remember are this is index you're looking at that makes all of their profits from growth overseas this is index that best reflects impact of potential impact of the so-called trade war. hey forget about self-driving tesla model 3, well now it is out all about this new killer feature. also a big guest coming up kevin is a chairman of the white house
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counsel of economic advisors. and we're going to get a take on this jobs report are, of course, what he thinks about this traitd war with china. he's up next. we'll ask him. i'm ray and i quit smoking with chantix. in the movies, a lot of times, i tend to play the tough guy. but i wasn't tough enough to quit on my own. not until i tried chantix. chantix, along with support, helps you quit smoking. it reduced my urge to smoke to the point that i could stop. when you try to quit smoking, with or without chantix, you may have nicotine withdrawal symptoms. some people had changes in behavior or thinking, aggression, hostility, agitation, depressed mood,
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welcome back dow down 18 point. again, you're looking at the index this is a dow jones industrial average these companies grow profits primarily outside of this country. so it's a better proxy for the ore indices with respect it our so-called trade war. i want to get become to junes job report joining us now kevin chairman of the white house counsel of economic advisors.
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kevin, another pretty good report, in fact, on wall street they're calling a goldy locks report on maybe not as excited because of the qaij numbers give us your assessment on it. >> actually i think it is a great report. it's if you look at the jobs creation we have yet another month right around 215,000 which is average for the year. if you look at the wage picture, then the thing that really jumped out at me is the average weekly earnings went up 3% so they went up at a healthy pace that means because there's maybe getting a little bit harder to find workers that -- employer are asking their workers to work longer hours so take-home pay is going up. hourly earnings as you mentioned were a little bit disappointing. on the unemployment rate side it did go to four but that was because of labor force that is like the best sign this is on this jobs report because what we want to do is reconnect people that were diskowrminged by bad economy. that president trump inherited and we want to bring them back into society get them jobs, back to work. it is clear that that's, you know, the real main message this
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have report is that almost the stampede back into the labor market. >> kevin i do agree with that. you know, i think we've got ton a place where there's a lot of people who have given up on this economy. and they could actually participate in it so to me this is ultimate sign of optimism 601,000 coming back to job market but we have a problem because you have got.7 million job openings and in the labor pool and still, you know these wage should be a lot higher. folks point to the skills problems, i know there's been talk in this white house about somehow trying to influence education. more vocational education, things like that. is there anything that this white house can do to help with this -- steal gap problem that is a chronic problem at this point. >> it is really all of the above but main point right now that we're seeing in the data is that what normally happen it is in the cycle is that you get close to full employment i'm not exactly sure what number that is that is 4.6 or below it and
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close to pull employment and then employers invest to make the workers they have more productive. right so you give your worker a better machine and then you don't need to hire another guy because guy you have is more productive so you want to see at the end of a cycle a capital spending boom that increases wages and at the time in history where income equality is dropped the most it is that point where booms happen and practicivety and wages go up so we just passed tax cut bill don't forget we have the six month anniversary last week with so tax cut is causing a capital spending boom very clearly of the data and that should have the normal cyclical effect to take a lot of pressure off employers. because you're right because there are more job openings right now than unemployed workers. >> i'll let you in. ito ask you mentioned machineryi have 118 things that tariffs went into effect last night. some pretty long list. right a lot of this stuff has machinery on it a lot of this stuff has things we don't have to have a tv made in china right
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afnlg american can skip that. but some folks are saying 118 things they can't be skipped and that means -- we can't avoid kiewrls and businesses paying higher prices what do you say to american public respect to hey, obviously, if it is a trade war or it was a harsh trade squish m there's a short-term period of pain for some folks. >> i don't know about short-term payment but yods know that the president promised the american people that he would fight for them that he would fight to make trade deals fair and reciprocal moving in that direction you know, he's going to i think in the next few months you see a lot of improved deals that stop this game that we've been in for years and years that this advantage american workers you know foreign countries putting up nontariff barriers so different from ours denying firm and workers access to market so president is moving world towards a positive but you're right. right now you can see in markets styles that there's anxiety and will it work out to have a happy end but as an economist what i
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have to do right is look at the data so one of the thinkings itch watching closely in jobs report today which you could find and pull new a minute is what's going on in down stream metal using so it was in effect so if you thought those would be disruptive let me finish the point is that industries saw employment go up in the last month and so right now, in the the data i'm not seeing sign that tariffs are causing disruptions that some fear. >> okay i think it is dangerous, though, when you want to cherry pick certain things you're honest with american public say hey -- that's not cherry pick that's necessary and for some folks it will be pain, but we hope it is short lived. my question is, though, we saw other presidents try something similar to this. maybe george bush he gave up on it. is this -- a administration now committed to this against world or china or blink if it gets too tough. >> president trump wrote the art of the deal he's committed to making better deals.
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he's going to deliver better deals. and right now -- he's called the bluff of other countries that have basically been abusing firm and workers for a long time but he wants better deals and the oe krrgs d a couple of week ago put out a study of what would happen with the world economy and u.s. economy from trade deals were realized and, of course, better for everybody. if you're worried about the stress you should understand it is extremely worthy one. >> i'm with you listen first of all congratulations -- you guys have done a remarkable job for this economy. a great jobs report we want to see wages get better. i want to make sure that you guys are committed to winning this war and sounds like you are. thank you very much. really appreciate it. all right folks more varney, right after this.
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>> quick check of the big board dow up 16 points and major indices are higher this morning i want to get back to oil "the wall street journal" reporting that there are now growing to feel it will ever happen. details on that. >> the largest ipo in history 100 billion dollar float. 2 trillion dollar evaluation this is a ground jewel of saudi arabia. and really the pillar of the modernization and opening of saudi arabia by the crown prince.
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it look like after two years now of consultation which includes engaging like of jpmorgan, and other investment banks it is probably not going to happen. because they don't want to open the book to scrutiny everyone can look through it and probably see what's happening. >> although you know what they're fighting that yemen war they're doing a lot of things they need -- >> oil prices have doubled by way they floated the idea so, you know, might be opportunistic but hey -- we'll see. >> so medieval society with the prince trying to pull into 21st century and they weren't ready for rules. >> good point. meanwhile trump taking a big shot at democrats last night in montana. he says, a vote for the dem is vote for ms-13 and wait until you hear what he's say about nfl kneeling protest. more varney after this. into booking a hotel. with expedia's add-on advantage,
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charles: here it is. the big story. full-blown trade war brewing at this point, tariff versus tariff. u.s. versus china. 213,000 jobs added last month. by the way, much better than wall street expected. president trump in the campaign trail in montana. the target? senator jon tester. we have all the highlights. how about this smart tv spies on you. it targets what you watch to target what they think you want. annoying, harassing robocalls, four billion made in may. the question. how do you stop them? we might have an answer for you. the second hour of "varney" starts right now. ♪
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charles: check on the big board. we were down 60 some-odd points. the dow was crawling. other indices were significantly higher. the dow is up, despite caterpillar, boeing, two major proxies for the china-u.s. trade battle were down. we expect them to be down. it with be amazing and inpress sieve if they find a way to close higher. big tech names we check every day look very impressive. apple getting another price target increase would make it a trillion dollar company. facebook, the most downloaded app out there. of course we can't forget oil. major story in the last two weeks. it hit some resistance, 74, 75, putting back. want to switch back to politics, president trump rallying for the gop in montana. one of the topics, immigration. roll tape. >> a vote for the democrats in
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november is a vote to let ms-13 run wild in our communities. democrats want anarchy, they really do. they don't know who they are playing with, folks. we will always stand by proudly the heroes and there are heroes on i.c.e. and border patrol and law enforcement and military. charles: here is a headline from our next guest. quote, abolish i.c.e. narrative is recipe for disaster for democrats. come on, tammy bruce. if it's a recipe for disaster no one told them because they are gloming on to this more and more every single day. >> they are. here is the issue. what the president is referring to, not just hyperbole that they want ms-13 to run wild. they're calling for abolition for an agency has nothing to do with border security. they are saying separation of families. that is the customs and border protection agency. i.c.e. handles criminality in
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the interior of country. they're the ones going after i.c.e., dealing with sex trade, money laundering criminal illegal aliens. the call for abolition of i.c.e. is call for an end to that focus in dealing with the crimes that are affecting first the immigrant communities. ms-13 preys on them first. all this crime, sex trafficking. those young women being disappeared. african-american girls, hispanic barrels in the inner-city. one, tells you they don't know details of what the agencies do. secondarily it would really destroy interior of the country. mostly we realize, this is the point of my column, this is about getting names and raising money, winning a new cycle, which does not deal with issues of serious policy. charles: the abolish i.c.e. narrative, they're ripping children from the arms of their mothers. >> supposed to be attached to that but the two are not linked at all. charles: some would say better
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read critics would say i.c.e. is involved in removing people who although here illegally have established themselves as otherwise law-abiding citizens. they have been here for a long time. they have kids here and that i.c.e. also plays big role taking them out of communities where they're living amongst everyone else and not committing crimes and pushing them out of the country. >> i.c.e. deals with criminal illegal aliens. the president made it clear this is the focus whoth dealing with internally. part of my column, we're supposed to be divided on this. a new harvard "harris poll" asks a question about abolishing i.c.e., 59% of democrats are against that. on issue of sanctuary cities, whether or not you alert the feds to criminal illegal aliens, 51% of democrats want that to continue. they don't hike that going on. a few democrat leaders positioning entire liberal framework where we stand. in fact maybe we're not as divided they say we are.
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democrats are in fact moving with the president in what looks to be a mainstream immigration program. charles: to that point, there certainly is sort of calculus out there that there has been very few things that democrats can use in the midterms. they have been grappling for a message beyond anti-trump. >> yeah. charles: images of these children, some were used in the media go back to the prior administration resonated pretty loudly. >> they did. charles: president trump in many peoples minds blinked. he did an executive order to change things. they jumped on this. this is one issue, at least the leadership galvanizes around. i don't think they have any confidence. what will you talk about? the jobs report? >> the president was following the law. he issued actually an order that may be against a court order. this is what the president was doing. he did what he felt then at the time which was the right thing making that change. what they have also seen in this poll is that while all of this was going on in the argument
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about separation of families the president has stopped, approval rating for the president among hispanics risen 10 points. charles: mind-boggling. >> supposed democrat leadership. the american people want policy. they want things to continue as they are. yes, as a result, the democrats are in trouble in a number of ways. charles: 10 percentage point increase might have been a harbinger for the jobs report. i got to tell you if all the subsets, hispanics did better. >> that is what matters. pocketbook. future for their families. they're americans first. we're seeing results. charles: tammy, thank you a lot. u.s. increased tariffs went into effect at midnight against china. china is firing back. david, describe the degree of the trade war where we are with respect to this trade war? if it is possible even now to see an endgame right now?
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>> i don't see exactly how the endgame will play out, but i believe an endgame will come. i think more and more the president will get victory, end up in coming some form of nafta renegotiation. possibly some deal with the eu on the car imports. i think the china thing, he is digging deeper and deeper. it is becoming more problematic. i certainly agree we have a lot of leverage to hurt them. they have incredible leverage to hurt us. i don't see a winner coming out of the china side of it. hopefully cooler heads can prevail. give the president appearance of victory on nafta renegotiation. let us get back this trade ard tariff stuff, really holding back so much of the great stuff going on in the economy. charles: david, on that note, china did come with an offer. there weren't any details attached to it increase of 70 billion of imports they would
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accept. i know that is one big part of it, opening up that economy. another big part is the ip stuff, intellectual property. it feels to me china wanting to move away from export-driven economy to domestic driven economy like america, they could find a way to lower tariffs to help that aim. >> i think there is some truth to that but i don't believe china is moving away to be export-driven. i think they're looking to rebalance their portfolio, if you will. looking to diversify sources of economic activity. they have been in need of doing that a long time. i don't know simply dealing with the tariff side will do it. you're exactly right, opening up more markets. the issue is not the tariffs are keeping that, it is that china has been a very low-cost producer made them attractive as an exporter. i don't think anyone believes there is anything wrong with that. i assure you american consumers don't think there is anything wrong with that.
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so for china to meet their objectives i think it's a matter figuring out the way it can look right to both countries leaders, constituencies. to do more trade together. a gross level of higher trade should be the priority, not the ratio of import-export. ultimately our economy grows when there is more trade taking place, period. charles: right. bottom line i think as president trump says. he wants ultimately, that aim. lower tariffs, free, fair trade. open markets on both sides. i want to switch gears a a little bit. we know you've been very bullish on oil. the saudi aramco ipo, supposedly was going to be the largest ever. a lot of speculation it won't happen. you're in like chevron, schlumberger, you like the master limited partnerships. what is your take with oil with a nice rally but spinning its wheels a little bit. >> it is in the mid 70s, an incredible rally far more than
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we even forecasted. i don't think there is anything that can keep it coming back into the 60s in the short term, that is meaningful double-digit move higher where people thought a high level was going to be. and it is not being fed because of supply. it isn't that everyone is artificially decreased supply. this is a demand story, charles. this is about the strength of economic growth and, that the global demand can not be met by our supply capacity now in the next year, two years, three years. i don't believe for a second that the aramco ipo is not going to happen. i think saudi is in desperate need of accessing global capital markets. for them to diversify their economy into the next generation or two. and i also don't believe that ipo can happen with oil in the mid 60s or lower. i think they want, 70, 80-dollar oil. but the key thing here, and i believe the president knows this and some of his tweets don't
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necessarily indicate so, but the u.s. is driving this. this is not about opec. it is not about saudi arabia. we are the marginal producer. we should be happy about that. there is a lot of investment to be done around that story. charles: absolutely. no doubt about it, the fracking miracle has been remarkable. to your point, we don't necessarily have the infrastructure certainly in the permian to keep up with this miracle. charles, thank you. >> thank you. charles: secretary of state mike pompeo is in north korea and he vows to get details from north korea with respect to their commitment to to denuclearization. walid phares will join us. he advised president trump on foreign policy. president trump going after montana senator jon tester in his campaign rally. tester always has such nice things to say about the
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president but never votes in line with the white house. we're on top of that. how about this? the country's biggest nail manufacturer, laying off workers because of higher tariff costs, that the tariffs could force the company into extinction. the business owner next on "varney." ♪
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charles: you're looking at the big board. that is the dow. that is the index most connected to this so-called trade war. it has been dipping in and out of plus or minus territory all session long. other indices are higher this morning. want to check on gold. we haven't looked at this. you talk about being range-bound
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between 12 and 1300. >> tight. charles: very tight. not going anywhere. meanwhile there is this. president trump on north korea. >> i got along very well with chairman kim. i got along very well. that's a good thing i got along well. what hasn't happened in eight months? in eight months, first we got our prisoners back before i even went, right? eight months, no nuclear testing, no missiles, no anything. mike pompeo over there right now. charles: joining us fox news national security analyst walid phares. your thoughts where we are with respect to north korea. i thought the singapore summit was very hopeful. but now it is time to get to the nitty-gritty, get some tangible results that we can guild on, right? >> absolutely. i think the president and the administration in general are making points with facts. north korea has changed, is changing. specifically on the layer of not
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threatening us or anybody else with missiles. not engaging in skirmishes here and there and speaking with south korean leadership on releasing hostages. the reason why secretary pompeo went to north korea to talk about the technicalities of denuclearization. it will take a long time. it is not overnight issue, even if they decide they can not do it very, very fast. charles: i think everyone realizes it is not overnight issue but should there at some point be some concrete steps that we can, that we get north korea to commit to? this is the third meeting. and i think the world is watching. certainly americans are watching. critics say north korea will never do anything. they will string us along. we're elevating kim on the world stage which he does not belong? >> i don't agree with that. during the cold war at times we
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had negotiations with the soviet union, much bigger than north korea. it took actually years to a agreement on denuclearization or lowering level of nuclear weapons. take that as model. i would say there are two measures with north korea. number one if we form a joint task force, check on them, verify. there is another measurement, charles. what is north korea doing on a strategic level. if they start to allow citizens to visit the south, allow seven south korean citizens to visit the north, it means they are very serious about denuclearization and going through with -- charles: should secretary pompeii come back with knowledge of where north korea's weapons are located? should we expect that much from this meeting? >> we can not open pine on details. only him would know after meets with the counterparts and leaders. i would say this, every time secretary pompeo came back there was something.
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remember when he went for the first time with the leader, the result was the meeting in singapore. i am confident he wouldn't have gone to north korea if the prenegotiations had not offered what he wanted to get from north korea back to washington. charles: in addition to fallen soldiers, mimia, some we feel strong bring back those, some more information, north korea, they have to give us something i would think. walid, i want to ask you about this, president trump, there is a report that he was at some point in the not-too-distant past he was asking his advisors about the viability of invading venezuela this is actually last year. what is your reaction, understanding what is happening there. 1.5 million refugees. a country in complete chaos? >> in general terms let's inform the public because the public is submitted to stories and journalistic stories and not educated in the form how our government functions. of course the president of the
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united states always asks national security defense agencies give him all the scenarios, including emergency scenarios. i'm sure we have scenarios on iran an afghanistan and beyond. most likely what the president asked, he should have, ask his task forces to say, if things go very bad in venezuela, millions of refugees would leave. civil war could erupt. economy would be affected. we are not far from venezuela. this could affect us and our allies in the region. there is no doubt that a scenario for what can we do humanitarian level or security level, is something that any president should ask their governments to prepare. charles: walid phares, thank you very much. really appreciate it. >> thanks. charles: well it is a summer friday. so we decided to show someone really enjoying the sunshine. if you're not sure how to chill out this is it. a couple in their pool drinking margaritas, when a bear showed up. they rushed inside, but kept the eye on the bear in the backyard.
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the bear initially started in the jacuzzi. then of course margaritases, knocked that out, strolled around, that is what you do with a margarita. decided to take a two-hour-nap in a tree still on their property. listen, we try to bring it all to you. >> where is the barbecue. charles: that is next week. more "varney" next. ♪
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charles: this is going to shock you, right? the number of those harassing and annoying robocalls rising. the feds an an app are fighting
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back. hillary vaughn is here with more. hillary. reporter: charles, yes, this robocall problem is getting a lot bigger. in may, there were around 4.1 billion robocalls that harass people in the u.s. that is 1.5 billion more than tracked last may, the year before. these scam calls are costing consumers. true caller, estimates in 2017 the total consist could was $9.5 million to consumers. spammers can spoof telephone numbers why a lot of these calls come across on the cell phone in your area code. regulators having a hard time weeding through multiple telephone networks to track down who is behind this flury of scam calls. even people on the national do-not-call list have been dealing with nuisance. but there may soon be a better solution. instead of hitting ignore, hanging up, telecom carriers planning to role out a system would verify legitimate calls. the fcc working on a standard for authenticating calls.
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given phone companies the go ahead, the power to block malicious robocalls before they pop up on your device. these are things you can do. meantime, while they're working out the fix. download apps like robo killer, that help preempt the call. keep the spammer talking, record the conversation. if you do get these calls, try not to answer, just hit hiking nor. charles? charles: oh, boy, 4.1 billion. i feel like they were just to me to be quite frank. somehow my cell phone number got into the system is. that is all she wrote. hillary, thanks a lot. coming up concerns over user and data privacy, mostly focused on tech giants like facebook. most have giant data concern sitting right there in your living room. we'll tell you how your tv could be spying on you next. ♪
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♪ charles: "varney & company." >> i haven't been here for this. this is all right. charles: hey, folks, over hour of trading. it has been mixed. we're gaining some traction on the dow. other indices look pretty good. off the very, very strong jobs report, what call street calls goldilocks. unfortunately for main street, wages didn't go up enough for the fed to panic. earnings season kicks off next week t starts with these four banks putting up on the full screen. we're higher. banks have been unmitigated disasters. they have been big disappointments. everyone on wall street said they would outperform. looking at world wrestling
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entertainment. btig, one of the safeest play in media. they missed a 2,000 point run. it has been on fire. dow proxieses for the u.s., china, proxy trade war. down fractionally. going gets their more business than here. stay on tariffs. largest nail manufacturer, mid-continent says the president's tariffs would bring down the company. we have mid-continent spokesman. >> thanks, charles. charles: i want to ask how are these tariffs putting this much pressure on you can already say this is it, the company may go out of business? >> there we go. >> the tariffs affect the price of raw material used to make
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nails. it's a big component in nail manufacturing. as a result of tariffs, the the price of nails manufactured in the united states by mid-continent gone way up. by contrast, the chinese, who are sending nails into the united states, lots and lots of nails, they're unaffected by the tariff. their prices are a lot lower. so what you have got is a phenomenon the chinese benefit. charles: chinese nail imports are not part of a the 818 items last had 25% applied. >> that is correct. so the nails, as finished products are not affected by the tariffs. the raw material, wire used to make nails, is affected. as a result, 60 people have lost their jobs at mid-continent. there are 500 workers at this plant in a town of only 17,000, popular bluff, missouri. whose jobs are now in severe
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jeopardy. but, the administration can do something. president trump can issue an exclusion and save these jobs. that is what we're hoping for. charles: exclusion on wire input? >> okay, correct. exactly. charles: what about leveling a tariff on these finished nails coming in from china, 25% tariff there? would that level the playing field for you? >> well that is a possibility. it takes a long time to do. and by then, this company could be out of business and 500 people could lose their jobs. the other way to handle it, which is by issuing an exclusion, and that is part of the law. in other words, the president and the commerce secretary, wilbur ross, have the power to issue that exclusion. they could do that tomorrow. charles: sure. >> with the stroke of a pen and save 500 jobs. that is what the workers in popular bluff are hoping for, expecting from their president. charles: hopefully someone at white house is watching. maybe they run this up the flagpole. >> i hope so. charles: there were 1300 items. they whittled to 818 items.
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i do want to ask though, because we've seen canadian lumber tariffs increase homes, according to national association of homebuilders $9,000. yet they have been able to pass their prices along. are these products coming in china such quality that they, that there is no pricing power for you? are you unable to pass some of these prices along? >> it is a good question but the differential is so great, the answer is no. our customers, customers of mid-continent have been willing, throughout our history to pay a little bit more for american-made nails, which are bert and they're made in america. charles: right. >> but we're talking about a very wide differential, some cases 30%. so it doesn't make any sense. charles: before i let you go, some of the viewers, one viewer asked, others jumped on this, how was the company positioned before this? you know, was it in good shape
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before this or convenient excuse? >> no, no. it was in terrific shape. charles: okay. >> the number of jobs doubled, has doubled since 2012. and, in addition to that. this company has been fighting dumping cases against the chinese and winning. so we were in terrific, terrific position. unto the -- unfortunately, the tariffs have done what the chinese competitors couldn't do. they really put us on the brink. charles: you stated your case very well. i hope the white house pays attention. hopefully we'll have this discussion again real soon, in a more positive manner. >> thank you, charles. charles: i want to bring in scott wren, wells fargo senior global equity strategist. scott, your thoughts on all of this. huge session in the market yesterday. today we're doing okay. as of right now the market looks like it is handling this okay. >> charles, a couple things going on today. obviously i think the market has done a good job of reflecting a
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profitability, low probability of, actual trade war. so i think that your last guest obviously i think there is short-term pain for some long-term gain but i think the market has properly discounted a low probability of a real trade war. now, has the rhetoric and probability increased a little bit lately? i think it has. but i just don't think we'll actually see that i think what is going to drive the stock market over the course of the next 12 months is the things that traditionally do when you're late in a cycle. are we going to have inflation? is there going to be margin pressure from wages for instance? what's the federal reserve going to do about it? is global growth going to slow? those are things determine where the market will be 12 months from now. charles: i got to tell you, this week alone, last week, i'm looking at data from ism manufacturing, ism non-manufacturing.
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>> great numbers . charles: the kind of money suggests that they expect the economy to continue to the upside. >> i mean if you look at these ism surveys. you would certainly expect more cap-ex the balance of the year into 2019. you talk to any industrial sector analyst, they will tell you the companies are backlogged basically into 2019. are some customers starting to get a little nervous with this trade talk? they are but the fact is there is strong demand for those types of things. so i think that what we're going to see is that the trade war is actually not going to happen. i think, i'm a believer that
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over the next two or three years you will see the level of global tariffs go down, not up. i think that is going to be a positive. but there is going to be some short-term pain. charles: right. >> so i think, you know, if we can grow this economy, 2 1/2, 3%, without much inflation, you see some cap-ex, that is good for the stock market. we'll get a blowout number here for the second quarter but i don't think you can extrapolate that forward on a rolling four quarter basis. in any case we're looking for 2.9% fdp here. that's a good number without much inflation. i don't think there is a lot to complain about in terms of the u.s. economy. charles: scott, you have always been one of my favorites. you're level-headed, smart, know yourself, you explain it in a way everyone can understand. thanks a lot. have a great weekend. >> i appreciate that, charles, you do the same. charles: here is a scary headline. your smart tv might be spying on you. connell mcshane here with more. if it is spying on us is there
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anything we can do about it. reporter: you can opt out of the service that is helping this happen. a piece got people talking about the idea they didn't know what was going on with their televisions, right? there are a up about of companies, well-known one is sound tv, but there are some others going into your smart television, installing smart weared on your television with consent companies. they pay the companies. they collect data on everything single thing you watch. you are watching "varney & company." you're watching netflix, they know exactly what you're watching. the advertiser can come in, place the ads for that company targeted at other devices. your cell phone or computer in the house, knowing what your interests are. here is the thing. we all opt in for this but, many of us don't know we're doing it. when you turn the television on, when first buy it at store. all the screens come up, most
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people thought, how quickly i can get this done, i can watch, whatever i want to watch. when this comes up from samba tv -- >> 4,000 word privacy policy. only if you go on-line look it up. >> on the screen -- >> cumbersome. >> i want to make this go away. >> 90% of the opt into it. it is amazing. the put up makes and models on the tv. samba tv. be aware. >> sony and phillips. other companies work with other smart tvs. >> something to be very conscious. charles: i hope these companies get smart enough they don't lure government into it. at some point it could be republican administration if this gets too crazy, they will start putting more rules. >> one last quick point, i got a message from samba tv, ashley webster is drunk watching. >> i'm not surprised.
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charles: thanks a lot, connell. >> hey, ashley. charles: coming up, senator elizabeth warren, one of the most outspoken democratic leaders calling to abolish i.c.e., in the next hour we have a republican trying to unseat her in november. ♪ [ cell phone rings ]
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>> yeah, i'm watching it too. i see them every day. >> the curtains, they're always drawn in this place. >> i know. >> that guy, it seems like he's in charge of them. i don't know, i don't feel very good about this. >> we have to report this. >> yes, absolutely.
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♪ >> last hour, kevin hassett, council of economic advisors chairman, told us what makes this morning's jobs report particularly positive. take a listen. >> yeah, i think it is a great report. if you look at jobs creation, yet another mon around 215,000, which is average for the year. if you look at the wage picture, the thing that jumped out at me average weekly earnings went up at 3%. they went up at healthy pace. because, getting a little bit harder to find workers, employers are asking workers to work longer hours. take-home pay is going up. hourly earnings as you mentioned were a little bit disappointing. unemployment went from 3.8 to 4, that is increased labor force participation. that is the best sign there is in this report.
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charles: shares of drugmaker biogen soaring after disclosing what they're calling positive results for a clinical trial on their experimental alzheimer's drug. the stock doing pretty well here. price mart, the wholesale retail chain, quarterly costs rose more than revenue. that stock taking pretty big on the chin there. to politics, president trump
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campaigning with four republicans in montana. even went after democrat senator jon tester. roll tape. >> i see jon tester saying nice things, but he never votes for me, he never votes. i would rather have him say bad about me but vote, right? charles: joining us now "washington times" associate editor, larry o'connor. so tester still makes nice comments about the president, montana is known as trump state. he is walking this incredible balancing, this nine line if you will, but caught the president's ire with, with the appointment of the, fda, i'm sorry veterans administration. president trump has, larry he hasn't forgiven him for that. >> nor should he. nasty move by jon tester. a lot of senators like jon tester, democrats running for
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re-election in states trump won big. talking about montana, missouri, west virginia, north dakota, florida, may have been a slim win. he has pretty good candidate with rick scott. this is the president going out in these rallies making a case why he needs more votes in the senate. they have a slim majority right now. what i found interesting last night he made a point to say that senator tester voted against neil gorsuch for the supreme court. we have this vacancy. will announce a nominee monday. the president is more than willing have the vacant seat number one for the election in 2018. that could make a difference in many of those states. supreme court vacancy, cavanagh, kethledge, reportedly two front runners that the president is considering most. what do you think, do you have any thoughts who you think it might be? >> yeah. >> weil get the news monday night. >> this is the big parlor game
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it could be. i want to throw in amy combey barrett. she is darling of social conservatives, grassroots conservatives, she was lambasted coming from law professor at notre dame. dick durbin and other democrats challenged her because they take her catholic faith seriously. like they were putting a religious litmus test. kethledge and cavanagh darlings of the establishment. a lot of people who weren't supporters of donald trump, republicans saying kethledge is the right guy. i will throw a dark horse. parr the indian-american who lives in kentucky. mitch mcconnell majority leader from kentucky. a lot of sources say if you want an easy confirmation, pick a guy
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from the majority leader's home states. charles: dems are up against it. i'm not sure how they can stop any of those, particularly applying a religious litmus test. larry, thank you very much. >> thanks, charles. charles: another week of bad headlines for tesla. another major car company getting into electronic cars. big-time war. we're on it next. ♪ to your bumper, cause.... i don't think enough people heard about your big day. but nothing says "we got married" like a 12 ounce piece of scrap metal. yo! we got married! honk if you like joint assets. now you're so busy soaking up all this attention, you don't see the car in front of you. and if i can crash your "perfect day", imagine what i can do to the rest of 'em. so get allstate,
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charles: checking the big board, it is having trouble, but gaining traction. down almost 200 points preopen. nice rebound with the jobs report. russell, nasdaq still outpacing thus far in this session. there is volkswagen outlining plans for the new electric car sharing service. joining us to car coach lar run fix. lauren, volkswagen getting involved in a crowded space. what do you think? it speaks to the potential? >> car sharing trying to get manufacturers out quicker.
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how do you get people to buy cars. i can hear. charles: so, this is what i'm trying to understand. are we ending up being a society people don't have cars but we all sort of are involved in this car-sharing, ride-sharing schemes? where does volkswagen fit in the uber lyft world? >> volkswagen is fighting for car-sharing like every other manufacturer is doing this. toyota is doing this, mercedes, volvo. they're trying to get people don't own cars, get used to the driving a brand, when they are in position to buy the car because they have a large family, it's a great way to buy the brand and get recognition. charles: who is winning right now? we hear these announcements. i'm not quite sure if anyone has a solid lead in that area, from a manufacturers point of view? >> yeah, i agree with you. i don't think anyone is leading in the category at all.
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you think volvo might be leader in subscription services. mercedes is there, cadillac with book by cadillac. manufacturers are trying to do anything they can to sell cars. if you look at total annual sales this year, substantially less from previous years. we don't know where it will end up. right now if there is not incentives, cars are not being sold. charles: some saying peak auto. do you subscribe to that? >> as far as the peak of the auto i would say two years ago. right now we're looking at a dip right now. it will always rise and fall. that is part of any stock market, any industry, this is going to be a slight fall. everybody has been buying new cars like crazy. charles: rising and falling, ask but the business insider report on elon musk. apparently words he ordered tesla engineers to stop doing key tests on model 3 s. they're facing a lot of scrutiny. there. is big probe from osha in california. litany of bad headlines for this company.
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the stock down a lot this week. if they made this, if they had to do this, the company by the way we should note to the audience is pushing back on this story. but they gave, elon musk gave himself a pretty tough target. they said they reached it. people are skeptical. what are your thoughts? >> i'm pretty skeptical too. i've seen drone footage inside the tent he claims are building cars. didn't look like cars were being produced. but i'm not there on the ground. break and roll, internal lingo, the truth that the national highway traffic safety administration, the department of transportation has a, fmvff. federal mother vehicle safety standard. charles: right. >> number 105 is a huge document, i've been reading through this morning. it says you have to do these tests. charles: we have to wrap. coming up on a hard break. add your skepticism to the group. >> yep. charles: more "varney" after this.
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. charles: it's 11:00 a.m. in new york, and we are starting off with your money, trade and markets. you can see the dow right there on your screen, up 40 points. it's been struggling all morning long but we're in a grain led by the indices in the nasdaq and the russell 2000, a great domestic proxy for economy, near all-time highs. the trade, tariff war went up another notch at midnight. america lobbying addition tariffs on $34 billion on goods. suzanne li on set. christian, i want to stay with you. my premises, i understand the old school way of thinking, i understand smoot holly and don't necessarily agree with it. i understand states craft and
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traditional diplomacy have not worked as we've lost millions of jobs, as china's economy has gone from less than 2% of gdp to 15%, now is a time to draw the line in the sand. what's your thoughts? >> i agree with you, charles, time for the u.s. to give some of china and other nations a dose of their own medicine. this is reciprocity. they're going to put tariffs on u.s. goods. we can do the same. and the good news is we're advantaged when it comes to trade. i think now is a great time with our economy, our markets doing quite well to give them a dose of the medicine and try to negotiate better terms that will benefit the american worker and investors in u.s. companies in the long term. charles: i had kevin hassett on earlier and wanted him to acknowledge, hey, if there is a trade war, there are going to be issues, right? susan, have you information on how much more consumers have to
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pay. >> consumers have to pay, it's a tax on consumer goods. washing machines increasing this year by the most we've seen over a three-month period in 12 years. buick envision if you're looking to buy the suv's, made in china. 41,000 sold in the u.s. this year. volvo cars, they have a south carolina plant, recently up and running but most of the cars come from china. nest thermometers made by google, classified in the 1% classified goods category going up as well, chinese vaping machines, yes they're sold in the u.s. on a consumer level, there is more to pay for in some of the goods. charles: we'll see how long this lasts. but right now a lot of americans understand that jobs losses, it's a luxury to be able to buy something in the first place but the only way to be positioned is if you have a job, and i think people hope that this will actually shift
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the tide of massive jobs in the heart of our economy for a long time. christian, speaking of jobs, we had our june jobs report out this morning. great number. 213,000 jobs, certainly beating what wall street expected. i always highlight goods-producing jobs, dirty fingernail jobs. 4,000 mining, 13,000 construction, 36,000 manufacturing, bringing manufacturing jobs, they said none will come back. the experts that are warning on tariffs said we could never get manufacturing jobs back. they are coming back. it is a renaissance, christian? >> great news. to see the productivity return to the u.s., we're making a lot of our own materials and goods. not necessarily going overseas. again, as you said, many people never believe this could happen. it's happening now. operating in a position of strength here in u.s. stocks, in the economy from the job
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market, and i think it's setting the stage here for america to act strongly to really renovate these old types of trade relationships that aren't working for us over the long term. charles: susan? >> we're looking at the nasdaq losers at this point. i was looking at technology because there's a rotation out of tech, money still on the sideline as you pointed out. people want to get into this market. the jobs number that we saw, are you sure it's a goldilocks number? the fed moves afterwards, how does the fed respond, that's what plays into the market, and they have a tough position, trying to bring up consumption if the tariffs bite in and goods are expensive and cap inflation as well in a full jobs market. what do you do in the scenario? raise interest rates four times this year? charles: christian, here's the thing on that. we know we saw the fomc minutes and the fed acknowledged the
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trade skirmish, more and more businesses are talking about it. the other hard data, not surveys or opinions, hard data, ism nonmanufacturing, other things show that the economy is moving pretty good. christian, i think the magic number from the fed, 2.9% or more year-over-year wage growth, what do you think? >> i think we're in a tough spot, and could see the trump administration try to talk down more often here the fed from doing further rate increases. i think it's going to be interesting to see the dynamic. i'm hoping the fed is prudent and slows down here some of their rate talk, especially given what's going on with some of the tariff talk going back and forth between the u.s., china, canada as well. other european union countries. i'm hoping fed eases back here and let's things develop and allows the u.s. to operate from a position of strength going into the end of the summer. >> i like the head of the fed
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was with the carlyle group, maybe not a classically trained economist, he understands wall street and main street. one of the hot stories, everyone talks about the driver shortage. one of the reasons it's so acute, we are having so much demand out there. market demand index, these are the lows ready to go for trucks at an all-time high. up 250% since january 2016. the orders for trucks in the first six months of this year have gone through the roof. never, ever seen anything like that before in this country. to me it's the ultimate side of confidence. not a survey. somebody is plunking down $200,000 for the big rigs, what do you make of it and could the driver shortage be the thing that hurts it most? >> the big rigs baby is showing a great trajectory for the u.s. economy. these are the building blocks what ends up showing up as economic growth. you're right, charles, when you see unprecedented orders, more orders in the first half of
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2018 than have ever been recorded going back to the early 80s. that's good news, early inputs that turn into economic growth. driver shortage could be issues, that means wages need to inflate a little bit to attract the drivers. that's a great microsign of what the economy is doing, and i think it's going to turn into good things in the third and fourth sghoort accelerating for two straight months, i'm wondering about the trade tariffs and how does that impact business spending? the federal reserve noted that people have and companies have been cutting back on spending. in fact, if this trade dispute gets worse, looking at accelerating reduction in business spending and investment. do they still buy the $200,000 big rigs and big trucks to ship their goods across the country. charles: last january there were 18,700 orders. the first year-over-year
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increase since 2015. november 2015. last month, 42,000. think about that. 16,000 was a big number. 18,000 was a big number. 42,000 a much bigger number. we'll see. we'll see. thanks a lot. quick check of the price of oil. it had a huge move and i think our guest talked it up. he's been long, this talking about it and has done very, very well. >> we're off the $74 level, aren't we? . >> we are. the national average for a gallon of gasoline is $2.86. and this actually could signal a shift on venezuela. we're going to explain it all to you as secretary of state mike pompeo is in north korea. up next, we'll talk to the former national security adviser to dick cheney. he says it appears the north
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koreans may be exploiting america's eagerness for diplomacy. and elizabeth warren joining the calls to abolish i.c.e. we'll join the manage challenging the senate this year and mike pence will speak at i.c.e. in 30 minutes from now. the big story today and every day, your money. the dow jones industrial average at the highest point of the session, up 77 points. more "varney" next.
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. charles: get this. mexico's leftist president-elect wants president trump at his inauguration. susan has the details. >> still a ways off, talking about december 1st. he's not only inviting u.s.
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president donald trump but justin trudeau, the prime minister and heads of state and others for his swearing-in. when replying to a question about his approach to venezuela, mexico's president will be shifting stance, more of a nonintervention as opposed to president pena nieto talking about actual intervention. not intervention goes against what president trump has been saying in terms of venezuela looking for a tougher stance. there has to be a bridging of the gap between u.s. and mexico when it comes to immigration and that's something that obradar and trump have discussed by phone. charles: you reach out to fellow socialist country, that's a death spiral. if he's going to watch it play out that doesn't help his own agenda. >> he has his own problems. big domestic problems in
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mexico, trying to boost economy, renegotiate nafta. when you are newly inaugurated in office, you want to take care of business at home, first. charles: thanks a lot. secretary of state mike pompeo in north korea right now. president trump talked about the visit during the rally last night. roll tape. >> i got along very well with chairman kim. i got along very well. that's a good thing they got along well. what hasn't happened in eight months? in eight months, we got our prisoners back before i went, right? [ cheers ] >> eight months, no nuclear testing, no missiles, no anything. mike pompeo is over there right now. charles: joining us john hannah with the foundation for defense of democracies. john, just how worried are you with respect to president trump's administration making the same mistake that a lot of other administrations have had with assuming that north korea was serious? >> i don't know, on a scale of 1-10 charles, i'm a 5 or 6 right now.
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i'm more worried than i was before singapore. the administration has assured us they're not going to repeat the mistakes of their predecessors and allow north korea to use diplomacy as a tool to buy time, to expand their nuclear missile programs, to ease their international isolation and to secure economic benefits from the international community. i hope that's not what's happening here, but we've got to say, especially since we got the recent intelligence leaks that show that nothing has changed in north korea's expansion of its nuclear missile programs. not only in the lead-up to the summit but after the summit in singapore. that's starting to get me a little more worried than i was before. charles: by the same token, john, certainly the same issues that have bogged them down, their economy, or lack thereof. there's the sanctions i think
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are still in place, biting sanctions that have a major impact on them which brought them to the negotiating table in the first place. those things haven't happened and the belligerence we saw last year up until the last missile test in november. so there are positive takeaway, what should we expect from secretary pompeo? what will bring your number from a 5 or 6 to a 2 or 3? >> we've got to see initial concrete progress on america's core objective which is actually to begin the process of reducing and dismantling the north korean nuclear missile sites. so secretary pompeo has talked about transparency as a first step. actually finding out what does the north korean nuclear weapons program consist of, including just a basic question of how many nuclear weapons do they have? which the u.s. intelligence community has a range of
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anywhere from 20 to 60. there's enormous uncertainty. even that transparency would be a positive step, improving the atmosphere, and a concrete step on the way towards getting the verification and eventually some kind of dismantling of that nuclear weapons program, which still today poses a massive threat to the united states and allies in northeast asia. charles: another one for you, this meeting, president trump with vladimir putin later on this month, what do you expect to come out of this? >> i've got low expectations. i do think there is some value in this meeting, charles. it's worth reminding ourselves that these are the two largest nuclear weapons states in the world whose relations have been at the lowest point they've been in an entire generation. so the fact that you have leaders meeting, looking to reduce areas of conflict, find, identify some areas of
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cooperation is positive, but those areas of cooperation i fear, whether it's syria or ukraine, nato, obviously our election, the question of election meddling continues to hang and cloud all of this. those areas are minimal. i don't expect a lot coming out of the summit. charles: john hannah, always a pleasure, thanks. >> thanks. >> golf superstars, tiger woods and phil mickelson are reportedly going to face off in a multimillion dollar winner takes all one on one battle. more on that in a minute. listen to this, if you have a smart tv at home, it may be watching you. the details coming up. first check this out, m.i.t. showing off latest creation from robotics lab. that's the cheetah 3. here's the scary part. this robot doesn't need eyes to run, climb or jump around. think about that until we come back. ♪
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this out. a drone captured this video. shows a baby blue whale swimming near a boat in san diego. whale is much bigger than the 21-foot boat, it's a great, great -- reminds me of jaws a little bit. >> i wasn't going to go there. charles: check this out. researchers at m.i.t. working on a robot that can run upstairs without watching its steps. >> called the cheetah 3, a robot designed by engineers at m.i.t. can, run, jump, can climb across complex terrain. all without the benefits of sight. i'm not sure you really need sight for robots but this is what they're dubbing as blind locmotion. m.i.t. very smart people and the use of algorithms, you're looking at the future. charles: should is supposed to be working towards search and rescue type of stuff. >> hopefully.
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charles: hope they're never searching -- it's a scary think, i know progress has to go on. that's all. speaking of progress, if you have a smart tv, viewing habits may not be so private. >> 45% of people already have smart televisions, including me, now i'm freaked out. charles: are they spying on you? >> if you opt into the programs, the largest one is samba tv, they can track what you're watching second by second, they can't sell the data directly to advertisers but figure out what you're watching and what you might need so they send targeted ads to your speakers and to your phones. how scary is that. charles: it was predicted a long time ago by many people including philip k. dick. sports facts for you, tiger woods and phil mickelson going to face off in a one-on-one battle. >> you love this. this is dubbed the greatest match in golf history if it ever happens. almost happened on july 3rd.
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this is a head-to-head between two of the greatest names in golf. $10 million, winner take all. 18-hole death match. i'm not sure it's a death match. we both want both of the superstars to survive, but they obviously have combined 122 pga tour wins, 19 majors, basically made for television. i was thinking when was the last time either of them actually won a major. charles: they haven't won majors, phil is hot and tiger is coming on. mayweather-mac gregor, the gegest one night sporting event. pretty good money. thanks a lot, susan. our next guest says it's time for people to declare independence from the federal government. he's going to make his case next.
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. charles: breaking news, homeland security chief kirsten nielsen speak at i.c.e.'s
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headquarters and going to introduce mike pence. after they speak, pence and nielsen will get a briefing on i.c.e.'s overall mission. we'll bring you the highlights as they come in. then, right now check on the big board. the dow 30 remember how it struggled early in the show. not right now. this is a high of the session. it is gaining momentum. have you caterpillar as the loser, something of a victim, if you will, in the so-called trade war, but boeing which does more business in china has turned higher. mcdonald's leading the way, merck up along with microsoft, apple and the usual suspects in technology. our next guest has a new piece on foxnews.com. he says it's time for people to declare independence from the federal government. joining us is chuck devore with the texas public policy foundation. chuck, what exactly do you mean by that? >> well, what i mean by that, it's some advice to the resist movement, to the never trump
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movement, to realize that in our federal system we've got 50 states, and each of those states has their own ability to tax and to spend and to regulate, and that, you know, the president, president trump being able to pick a second u.s. supreme court justice, it's not the end of the world for these folks. certainly i like it, but they ought to focus locally, focus on families, communities, their cities, counties and their states. so much policy at the local level. charles: well, i get that, but i guess their retort would be, we're talking about the supreme court which could dictate the rules of our land for decades to come, including some core issues that really people are very passionate about. >> well, again that is true, however, under our federal system, the states have the ability to tighten things up or to have their own rules. just because the federal government says that, for
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example, states can't regtate abortion doesn't mean that, for example, california couldn't have looser rules than other states. so what we're talking about is going back to where we had significantly greater policy latitude at the local level. that's the way this country was designed. that's what the founders did when they crafted the constitution. they understood that not only do you have separation of powers at the federal level between the executive and the legislative and the judicial, but you also have a separation between the national government and state government. and that's the way it's supposed to be. if folks realize that, i think they might reduce the temperature a little bit. charles: all right, chuck, you brought up california. want to talk to but this, you used to be an assembly member there. former san diego city council member carl demaio says he's raised more than $1.1 million in his campaign to repeal that
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state's gas tax. what do you think of the repeal efforts and could it actually help republicans win in california in november? >> first of all, carl demaio is a political genius, if he's behind this, i'm certain it's going to pass. first of all, california voters, they're perfectly fine with taxing what they views at super wealthy, which is why in california you have the highest marginal income tax rate in the country. in the case of this gas and vehicle tax, it hits the average california family of four with two cars for $500 a year in additional taxes. and i don't think the average californian is going to stand for it. what you're likely going to see based on past evers that are similar efforts to put tax increases out to the voters. if the tax increase is broad-based and hits the average californian, they're going to vote against it.
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i don't care whether the other side spends 20, 50 or $100 million. proposition is going to pass and the money, the $5.4 billion a year is going to go back to the taxpayer. now the problem, charles, with california politicians is that they raise plenty of money. they have a huge budget. among the highest taxes in the country, but put that money into other things like, for example, government employee union pensions. charles: sure, sure. >> and then there's no money left for roads. charles: they call that the bait and switch. i think to your point, run out of things to tax and people are pushing back and the bigtime democrats in california could see the writing on the wall. thanks a lot, chuck, appreciate it. >> thank you. charles: hey, more calls from the left to abolish i.c.e. listen to what senator elizabeth warren said about it. roll tape. >> the president deeply immoral actions have made it obvious,
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we need to rebuild our immigration system from top to bottom. starting by replacing i.c.e. with something that reflects our morality. charles: joining us now jeff dale, republican senate candidate in massachusetts. jeff, what's your take on senator warren. taking on senator warren in november. to replace i.c.e. with something that reflects our morality. all of a sudden i.c.e. is like the ku klux klan? >> charles, thank you for having me on. yes, elizabeth warren, the most progressive, extreme legislator in washington, no surprise, she wants to run for president in 2020. going to take the extreme views. i've been down to the border wall. seen what's happening down there. we need to finish the wall. that's the most humane thing to do and need to allow i.c.e. to do their job. we have ms-13 gang members rounded up. we need to make sure i.c.e. is allowed to identify those and
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make sure those folks are deported, committing crimes in our country illegally, with elizabeth warren, there are no borders for her and wants to make sure law enforcement can't do their job. charles: jeff, again, she must know the official functions of i.c.e. and must understand that polls reflect democrat support for i.c.e. and this kind of rhetoric makes their job harder. the shaming of a law enforcement agency they think has a pretty good track record. they're not at the border ripping babies from their mothers as being portrayed by democrats. i'm sure you're going to pound away at this and try to educate folks because this is a narrative that's getting pushed out there. >> that's right, charles, in fact a year ago a poll came out showing 46% of massachusetts residents wanted to see someone other than elizabeth warren and hasn't gotten better for her. i've been traveling across the state talking to people. our state has a budget up for
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consideration, voting on it soon that would allow for sanctuary status which means not working with i.c.e. to make sure we deport those here illegally committing crimes. maureen maloney's son milton denise was killed by someone here illegally. those are the families ripped apart. elizabeth warren is putting people out of our country ahead of the citizens's safety. she needs to leave before november. i'm going to make sure we do that. charles: thank you very much for coming on. >> thank you. charles: pick to fill justice kennedy's spot on the supreme court during the rally last night in montana. roll tape. >> as you know, there's now a vacancy on the supreme court. [ cheers ] >> and if you turn in monday at 9:00, you're going to be extremely happy with the selection, right? and they're all great. jon tester voted against neil
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gorsuch. incredible justice who supports fully our constitution. that's a hard one to vote against, isn't it? charles: all right, susan, who are the lead contenders? >> close call but president trump said he's narrowed it down to four. out of the four thinking about two or three, and there you go, those are the leading contender on the screen, brett kavanaugh, kethledge and amy barrett. looks like president trump is preferring kethledge and barrett over cavenaugh, odds are going with cavenaugh. >> those are the establishment picks, please a lot of republicans who otherwise might not be happy with president trump. we'll see what happens. >> should be very interesting. >> thanks a lot. we've got breaking news right now, folks, prime minister theresa may's office releasing president trump's schedule for when he's in the uk next week. susan, you have what he's up to?
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>> most of this will be outside of london. we have protests expected in the capital city of the uk. so basically we're hearing that trump will have dinner with the uk prime minister theresa may and business leaders next thursday, he'll hold talks one-on-one with prime minister theresa may at her country residence friday. trump will then travel to meet the queen at windsor castle friday as well and melania, the first lady will have a separate itinerary, she will be hosted by theresa may's husband, there will be a separate private trip to scotland for the u.s. president and first lady. charles: thank you very much. now there's this, moviepass customers listen up. the company taking a page out of uber's playbook and implementing price surge protection. we'll tell you how much more they'll charge, when we come back. and if you don't -- if you haven't paid your taxes, you might not be able to get a passport. that's a big deal. details in just a moment. listen to this, a new
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"gallup poll" found 55% of the americans believe the country's best days are ahead of it. more "varney" next. ♪ ♪ you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia. i couldn't catch my breath. it was the last song of the night. it felt like my heart was skipping beats. they said i had afib. what's afib? i knew that meant i was at a greater risk of stroke. i needed answers. my doctor and i chose xarelto®
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. reporter: i'm nicole petallides with your fox business brief. facebook and cristiano ronaldo, is it in the works? there are reports by variety that facebook is in discussion for what could be the biggest original yet for facebook watch. cristiano ronaldo of real madrid and portugal's national team, the 33-year-old whose value is $440 million on forbes, could be putting together $10 million for 14 episodes. facebook has done well with sport programming including ball and the family, following lavar ball and tom brady's series and this series would be patterned after that. facebook is up 1.5%.
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. charles: thousands of americans could be denied a passport because of unpaid taxes. susan, what's this all about? >> economical numbers. 362,000 americans have overdue taxes still. and you'll be denied renewal of passport or even a new passport if you don't pay you. only for those that owe $51,000+ in overdue taxes. enforcement starts in february. start paying your taxes, according to the irs. charles: if you want to leave
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the country. >> that's right. charles: if you're not paying taxes -- >> $51,000 in backtaxes. the movie subscription service moviepass, implementing surge pricing, how much is that? >> i'm paying $9.95 a month, moviepass could add $3-6 extra. if you want to get into watch "avengers: infinity war," it's going to cost you $3.43 more on top of the $9.95 monthly fee. might as well buy a regular ticket to see a movie. charles: overall pretty good deal. >> i guess, it's the principle, i'm already paying, why do i have to pay more? charles: good point. a new "gallup poll" shows majority of americans are optimistic about our country's future. >> 12-year high when it comes to satisfaction and 55% of americans think the best days are ahead of us.
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41% think that the days, the best days are behind us. last time i did the "gallup poll" was in 2012, pretty much split 50-50, the satisfaction has improved and we're at a 12-year high. patriotic. charles: i like when people feel good about it. that's a key ingredient. next guest says california's governor jerry brown and state lawmakers jeopardized criminal justice reform. joining us is the candidate for the california's 60th assembly district. bill, when you say that, what do you mean? what are they doing? >> i hope everyone in california is sitting down. this is the most reckless and irresponsible bill i've ever seen. what the legislature just did is create a get out of jail card for every possible crime in california. it's a mental health diversion program. so if you can convince a judge that the reason you committed a crime was due to some mental illness and can you pick whatever one you want, there's a million out there.
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you will do a diversion program of no more than two years and will not be prosecuted for a crime. vul a dismissal. charles: you are saying they take your word for it? you don't need professional assessment? you could just say this self-diagnose? >> almost. what it does is allows the defense to make the argument and you get to pick as the defendant the psychiatrist of your choosing or psychology, and the prosecution has no say. the prosecution doesn't get to challenge it. they don't get to challenge the defendant. i can tell you as a prosecutor there's a lot of malingering in the courtroom. it's funny when people are caught and looking at prison time, all of a sudden suffering from all kinds of mental disorders to avoid responsibility, and the prosecution is going to be excluded from this process. it's going to be a defense-run argument and program. can you imagine what can be done with that. i'll give you a clear example. imagine heaven forbid someone's relative is raped, a woman is
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raped. a defendant can say he suffers from a disorder known as hypoactive male sexual disorder. if he can prove that can be treated, he'll be entered in a diversion program of no more than two years and let out. no prison time done. victims don't have a say, the prosecution doesn't have a say and it's a terrible, terrible legislation and what's horrible about it, charles, it was passed in the cover of dark. it was passed in a budget bill with no debate, no author, no one is claiming responsibility for this and no one had the opportunity to challenge or stop it or provide input. i can tell you my colleagues in the law enforcement community and deputy d.a.'s across the state are still in shock that this passed and it's already in effect now. it's horrible. charles: shocking, and you would think we'd know who the author is. whoever put this -- cobbled this thing together, we'd like to know who they are and find a way to fix it. bill, thanks for bringing this news us to. we had no idea.
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thank you very much. >> thanks for covering, it charles, thank you. charles: i want to stay in california. huge medical convention pulled out of san francisco because members didn't feel safe there amid the growing homeless problem, and doesn't seem to be a solution yet. where is the end game here? ♪
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which is what we do. crowne plaza. we're all business, mostly.
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. charles: two years ago wall street wrote the stock off. that's world wrestling entertainment, now one of the safest plays in media after the company signed five-year deals with usa networks and fox sports. earnings season, of course, kicks off next week, going to be these four banks up right now. but banks have been massive, massive disappointments, they all pass the so-called stress test. we'll see what happens with them. a huge medical convention pulling out of san francisco. members, get this, they actually didn't feel safe because of that city's homeless
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problem, and there are some signs that tourism in that city are taking hit as well. joining us is the property man himself bob massi. what's going on? we're seeing this. i've got to tell you on my way to work this morning, i walked past three homeless men in cardboard fixtures, i can't describe how the sidewalks look. this is in new york city. san francisco, seattle, what's going on? >> well, obviously, to some extent, charles, i would suggest it's connected to the local government that they aren't taking the precautions they need to make it safe for one of the most beautiful cities in the country. as you know, a place so many people frequented. beautiful, beautiful, city, great landscaping, you have opioid -- you know what i'm saying, in addition to that, we have the homeless people all over the street, mental illness and not taking care of business. this large convention and other conventions, charles, are basically saying i'm not going
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expose my own people to dangers and they're pulling out. charles: bob, is some of this being victimized by their own success, all of the tech companies in the area. if you live in that area, particularly before the companies and you don't have the skills, they're pricing out folks who have been there for a long time. >> you are right on the money, charles. what happened, is as you know, the tech companies came in and literally bought up san francisco. literally. and chased everybody out, and this is sort of a consequence. what's remarkable as you know because i've seen you cover it. the cost of real estate and high-rises and the cost of living in san francisco is like manhattan. so have you this sort of this paradox of the homeless people on the streets everywhere, charles, it's not two or three. honestly, i've been there, it's horrible to see, and yet, these tech companies as you articulated, basically saying if you want to be here, this is
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what you're going to be, but we're controlling the destiny of san francisco, and for what i see, to any situation. charles: this is something amazon is going to consider as they look around for the new headquarters. they move to a city which has high property taxes and expensive real estate. they're going to blow marginal folks out the water. you mentioned governments, what seattle tried this tax on businesses and starbucks, amazon, they stood up and said no, we'll leave if you do this. what can you do? feels like things like higher minimum wage have backfired in the cities. >> you know what? i have so many friends in the bay area and in california. and they say that the politics, they call it the politics of confusion, there's nothing that is proposed that appears to help businesses make it grow, which honestly, charles, is to
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the benefit of nevada and particularly las vegas because the migration has been unbelievable from california, just because the business tax issue over there, so i'm not sure what the formula is but they're not taking care of business are in beautiful state. charles: and also should point out a lot of vets among the homeless. bob massi, the property man, thank you very much, appreciate it. >> see you, charles. >> more "varney" right after this. (♪light musical cords)
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charles: all right. this is pretty impressive. we were down 170, 180 this morning, then the jobs report out out and fill even then the market couldn't get any traction. at least the dow jones industrial average. but now even the dow, which of course is the one with the most
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exposure to a trade war with china starting to get some exposure. not bad. >> and jobs, best jobs market we've seen in 50 years. i would say that participation rates best concerned. charles: you got a rally. take it away. neil: we are following this. how long this can last is anyone's guest. it's surprising a lot of folks, concern that the formal escalation of trade tensions, the $34 billion this tariffs that we slapped on chinese goods, slaching bac slapping bar goods. that is 800 goods between the two countries. that's expanded from aluminum and steel to hundreds of items and it's not bumping the stock from the time being. the expectation is that the cooler heads will prevail and too the chinese, little ed of that so far but we're keepi

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