tv Varney Company FOX Business July 27, 2018 9:00am-12:00pm EDT
maria: great show today, everybody. thanks so much for joining us. james freeman, dagen, morgan ortega. great to see you. thanks for joining us. join me on sunday for vice president mike pence. here is stuart varney and "varney & company." stuart: good morning, to you and half hour from now president trump speaks on economy on white house lawn. you will see it live right here. the backdrop of the speech is another trump win. it is a breakout. the economy thrown off sluggishness last 10 years. here is the number, 4.1% annual growth, best performance any quarter in the last couple years. politically it's a trump win because this stellar growth is largely the result of the trump growth agenda. that is what he ran on, make
america great again. it is a financial number. means more jobs, more income, more business startups. the number came out half an hour ago. not much reaction from the stock market. here, sr. we open, flat to slightly higher for the dow jones industrials. i mean slightly higher. another big story. amazon, another astonishing number. $2 billion numbers in. the race is on to get to trillion dollar valuation. it has got to get to 203. amazon has to get to 2050. it's friday, july 27th, summer doldrums are you kidding? "varney & company" is about to begin. ♪
>> big numbers will be announced tomorrow. i don't know what they are. somebody predicted, 5.3, i don't think that is going to happen. [applause] if it has the 4 in front of it we're happy. >> you will get a very good economic growth number, big. stuart: that was president trump, white house economist larry kudlow. they were speaking before the numbers. now we got them. 4% annualized with the economy. he works with art laffer. do you think the economy can keep up this pace? >> no question about it. with the huge tax cut in december, no reason for the economy not to grow at 4, 5%, as it did in every great boom in the 20th century. i think we can do that again. stuart: wait a second, brian, democrats, a lot of republicans, some republicans are saying you can't keep up a pace like this.
some of the reason why we got the 4% spurt, one-off reasons, big sale of soybeans in may or early effects of the tax cut. you say not true, we'll see four or 5% growth as far as the eye can see? is that your forecast. >> the new normal was that we grow 2%. we always grew at 4% in the great booms of the 20th century. that is the great american experience. if we clear government regulations and taxes out of the way we can see the historical match again. stuart: inflation tends to tick up with a strong economy, what about interest rates? we're right around 3% on the 10-year treasury. are those two downsize of this growth rate? >> no. i think inflation ticks up when the economy's weak. the economy was terrible in the 1970s when we had double-digit inflation.
we had three recessions in 13 years. in the great booms of the 1980s, 19 thes, inflation collapsed. as more goods are produced the pressure on prices will be down. it could be nothing of good things when government gets small. stuart: you're out on a limb be, aren't you? i don't know anybody else that says we can keep up the pace. i'm sure there are others. would you accept you're out on a limb? >> the great supply side tradition my coauthor larry kudlow and good friend art laugher, all the supply-siders in the reagan administration agree with this. this was the principle of the kennedy administration in the 1960s. the united states has always grown at historic rates. the only time it hasn't when big government reared its head. stuart: brian, thanks for coming on with us this morning. an, thank you very much indeed. big companies reporting twitter, fewer monthly active users.
that's a problem. they warned that number, monthly active users could keep falling as it deletes those phony accounts. that stock is down 12%. look at chipotle. better he sales, they raised prices and i'm told their demand for the queso cheese dip is strong. chipotle is a turn-around story. it is up 6% this morning. starbucks, not so rosy forecast, when you do that the stock goes down. this time not so much. it is down just 10 cents. they're apparently feeling the heat from competition. he chevron, there was a drop in natural gas prices and that offset it. that stock down 1 1/2%. profit falling short at endings on mobile. believe it are not hit by maintenance costs. it must be pretty strong because that stock is down 4%. stock of the day, here it is, amazon. it reported blowout profits.
this morning premarket, up another 4%, $73 higher. this is premarket. 1881. ben walsh with us, "barron's" finance reporter. as you look out to the future, they're looking forward to going to 2050 a share, trillion dollar company, what stops them? >> hard to say but i don't think much. if you look at amazon they're incredibly dominant retailer. they attract incredibly sticky customers. prime members are incredibly loyal to the company. they're expanding into new businesses. stuart: i didn't see numbers but have they expanded number of prime? >> they have. interesting thing, they show with prime users they have pricing power. this happened last year. they started to ratchet up the cost for prime membership. saw really no reduction in, in those memberships. so people stick around which is important. stuart: is this most dynamic
company that you have seen? you're much younger than i am. i've been around a long, long time, i frankly never seen anything like amazon. >> it is incredibly power. that is the most interesting think about it the way they can reshape multiple different industries from top to bottom, i think it is something similar to what walmart did in the '90s where they completely reshaped american retail but it is happening now. stuart: it sure is. one other one for you, i believe amazon had a job posting. they're looking for an executive who knows about mortgages, has mortgage experience. >> yeah. stuart: what will you read into that? >> what i read into that amazon wants to be pretty much into every business and they're always thinking about, if they're not in a business currently, is it attractive? what makes sense? can we sell this product? if we're not going to sell this product i think they have a pretty good reason why they're not going to. they're looking to sell everything. i don't see why they couldn't explore that. stuart: wait a second. mortgages implies financial
services. >> sure. stuart: financial services is a whatting great big industry. >> absolutely. stuart: if they get into, other players in the industry are going to take a hit. >> absolutely. they're looking at partnering. working with, "the wall street journal" reported they are exploring a partnership with jpmorgan. what that exactly is unclear. but that could be extremely interesting. there have been rumblings from people in the asset management industry, maybe they want to sell investment fund but i think the key here amazon will want to do what they can sell to get more market share without bringing the burden of bank regulation. they want to avoid that. stuart: obviously. the thing is amazon is so brilliant lee'sing with the customer. it is so efficient and seamless. if i could get a seamless mortgage i'd do it. >> a lot of online lenders trying to speed up the mortgage process and what they found is that it is very tough to write
mortgages extremely quickly because there are lots of layers. there is due diligence. there is regulation. it's a big transaction. the thing interesting to me amazon provides a customer experience that white house people. that is what they want to do. stuart: that's right. >> the issue with mortgages you're most happy on the first day. after that is just pain the rest of the way. so i don't know whether they want to be in a business where people don't enjoy the service for 30 years involved with the company. stuart: unless they can correct it. >> that's right. stuart: ben, the first time on this program. >> that's correct. stuart: do you want to come back? >> sure. stuart: really? >> it has been painless. stuart: ben walsh, everyone, thanks for joining us. >> thank you. stuart: look at facebook. $119 billion lost yesterday. that was the biggest-one day loss for any company in stock market history. this morning up a buck at 177. some wall street types saying it's a buying opportunity.
buy the dip. maybe that is okay for traders in and out real fast, but what about long term investors? liz: long term is an issue. investor buy an expectation but when they see expenses at facebook outpacing the rate of growth of revenues that is an issue. they loss equivalent of virtually a mcdonald's in market value for that very reason. the question, did they hit saturation point? all the users on it, are they going to stop spending as much time? we talked about how it's a virtual living room, that is what facebook touts itself as. you don't want to talk politics at the family table. >> 2 1/2 billion users around the world visiting whatsapp, the new feed for for for instagram. trading 21 times cash on forward basis. stuart: that is positive outlook for long term investor. i'm moving on. where do we open the market 19 1/2 minutes from now?
we'll be up ever so slightly. nice gain for the nasdaq. that is probably amazon at work there. 10 points up for the dow probably. president trump will speak live from the white house lawn about 20 minutes from now. you will see it. we believe he is speaking on the economy. why not after today's news? north korea making good on promise to return remains of soldiers killed in the korean war. 55 cases believed to contain american and allied soldiers believed to arrive at a air force base in south korea. president trump calling it a great moment for many families. the remains will be sent to hawaii for genetic testing next week. s house minority leader nancy pelosi hitting at republicans and their immigration policy, she referred to the 9/11 terrorist attack as an incident. you will hear it. we've been covering the story all week, ritz crackers, goldfish, recalled because of possible salmonella. fda says even more snack food
products could be contaminated. more recalls coming. roseanne barr speaking with sean hannity. the first interview since her hit show was canceled. she says she is not a racist. you will hear it after this. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪ add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia.
stuart: well i guess the news of a 4% growth rate for the economy was already baked into the market because we don't have much of a pop. we don't have any pop at all actually, bearing in mind we did get the 4% growth rate news this morning. we'll be up ever so slightly at opening bell. there is intel. they had a strong quarter. there are strong concerns about delays rolling out new chips. that is why intel, big stock, big company, down 5.6%. better profit at merck, the drug company. strong sales of that blockbuster cancer drug keytruda. they gave a rosy forecast as well. i don't know why the stock is down with that as the backdrop.
we'll find out for you. sales down at colgate-palmolive, the world's largest toothpaste maker. sales in latin america were down. the stock is 4%. roseanne barr on "hannity" talking about the racist tweet that cost her. >> i paid a price for it. i wish i worded it bert. i will net let them tell me what i meant. i'm not a racist. people that voted for trump either. trump isn't a racist, sorry. when things will go too far left i will two left. when things are going too far left, i will go right. i like the middle opinion that balances two extremes. most people in america i think like that. stuart: joining us the author of this book, it is titled, uncensored. zachary wood is the author. the assistant editor with the "atlantic." welcome to the program. >> what do you make of the
roseanne bar. >> she is talent comedian and always said wildly inappropriate things. that goes back in her career. she says all trump supporters are not racist. it is important to realize you can you assume you know why someone support as political figure, right? stuart: look there are some people on the left who made outrageous comments. >> sure. stuart: they keep their jobs. they're not censored. roseanne barr, made an outrageous comment, kicked off the air. is there double standard? >> you have to take it on case-by-case basis. there are some examples of people on the left said offensive things that lost their jobs. the comment about valerie jarrett i think something racially insensitive. it was highly inappropriate. in that respect the show didn't want to be associated with it anymore. stuart: let me bring this to your attention. you know the story here. the fresno state professor said she wanted to dance on barbara bush's grave. now she tweeted that white
editors should resign. her twitter account is private but, campus reform.org, they got hold of it. they took a screen shot. i will show it to you. at many so point all of us in literary community demand that white editors resign. time to step down, hand over positions of power. we don't have to wait for them expletive deleted up. the fact they hold these positions is expletive deleted enough. seems to me the left says i got free speech, i can say what i want, you can't. >> one this is ridiculous statement. i mean these are the kinds of comments that detract from civil debate. these are the kinds of comments that detract from public discourse. these are the kinds of comments we have to call out for what they are. persons like this say language is violence right. that is argument we have to counter. stuart: your position in the book is that you want free speech. >> absolutely. stuart: i want people to being
abe to express themselves. >> but that doesn't mean, this is tactlesss not thoughtful. not a serious argument, right? >> no, it is not. that is extreme. >> what we want is thoughtful, speech. we want logical arguments. stuart: what happens when you don't have thoughtful, logical speech? >> you end up with more and more people saying things like think, should they be banned? >> they should not be banned. stuart: i agree with you. >> people put their lives on the line every day so we have the right to say what we think. stuart: absolutely. free speech for all. >> absolutely. stuart: zachary wood. >> thanks for having me. stuart: check futures please. no reaction i can see to the 4% news we got this morning. dow flat or slightly higher. true of all stocks. the president will speak on the economy about 10 men's from now and you will see it. what about him?
stuart: president trump has tweeted about that gdp number that we got earlier this morning. here it is. great, in all caps. great gdp numbers just released. will be having a news conference soon. yes he will. we're expecting him to speak around 9:30 on the white house lawn. you will see it. check futures. it is flat, i am calling this dead flat, that is how we'll
open virtually across the board. the nasdaq will show a gain of about 20 point. look at amazon. a blowout quarter. they brought in two billion dollars worth of profits in the one quarter. that is 12 times higher than the profit one year ago in the same quarter. the stock premarket is up another $70. 1878 is the price. how about facebook, a route yesterday. the company lost 11 the billion dollars, big loss in stock market history. it is up a buck 60 at 177. before the numbers were released it closed at 217. we're way down from that. look at twitter, they reported fewer monthly active users. they wanted that that number, monthly active losers could keep falling as it is deleting phony accounts. the stock is down 13% now. that is nearly six bucks lower.
intel, there are apparently concerns about lingering delays in rolling out new chips. that i'm told is why the stock is down a full 6%. that is a whopping great big drop for a company like that. now when you get a strong performance from the economy, you worry about interest rates. are they going straight up? this time, no. 2.98% is the yield on 10-year treshtry. it has been right around there for some time. big day for your money. liz: feels like a big day. what is interesting the gdp number. consumer spending is up. this number is what charles payne likes to talk about. i'm watching restaurants and mcdonald's, chipotle performance. people are going out to restaurants. the gdp number, best in five years. despite talk about tariffs, our manufacturers are still going full guns right now. not full guns but going strong. stuart: one of the things the export number which helped the overall gdp number, is soybean
exports were up 50% in may. >> the fear was doomsday stockpiling in advance of tariffs but listen, the president has a trump card. he can say tariffs, we're going to do it, do it, they have to be enacted. he can pull the trump card if the markets go south. the president does not want to see the markets go down on his watch. so that is his play. he can always pull back, dialing it back, claim whatever victory he seasoned whatever he is doing. stuart: what have you got? >> i'm looking at technology because of amazon's results last night, up 3%, doubling when it comes to profit. basically got 100% above analyst forecasts in terms of rest of this year. couple that with the rates of one trillion. stuart: huge. >> apple reporting next week. it's a technology run. stuart: it is 1881. that's premarket. if it gets to 2050, the stock price that is, that company is worth a trillion dollars. >> we have to get used to the fact that amazon is a profit
machine because for a while, right, they weren't making money. any money that they were making is what is put back into the business. also advertising, the ad business doubled in the quarter. people are thinking, oh, my goodness is this a new challenger to take advertising dollars away? liz: wall street is it watching the cash flow and cash on the balance with m&a deals they could do. stuart: show me facebook. i'm questioning why it has not bounced. a lot of people said it would bounce. it dropped heaven knows how much yesterday. the bounce may have taken place this morning but it hasn't. it is up $1.64 at $177 per share. now i am told, actually it is reported here in the financial ties there has been -- "the financial times," deceleration in revenue growth. >> what they said on the conference call. then the stock dove 20, 25% in the after-hours. stuart: i don't understand a deceleration in revenue growth from the first quarter by 7%.
liz: every quarter they have done down. stuart: the bottom line you bought facebook because you thought it would go up forever because it would grow forever. the growth is restrained and plateaued. that is why i think there is no bounce. jeff sica, david dietze joins me. no bounce for facebook. why? >> it has been refreshing how facebook handled deceleration in earnings in future growth. there is no bounce because there are a tremendous percentage of institutional owners of the stock that want to see momentum. i believe when you start to see momentum you will see people piling back into facebook. stuart: we shall see. that would be long-term investors? >> long-term investors, absolutely. stuart: david dietze, what are you doing on facebook? >> what was the pullback, all the way back to may?
it has had a hype -- hype every bolick move since the congressional hearings. look at core market, north america, europe, subscriber engagement has stalled out. they're growing in the developed world but those are not the high-spending consumers. stuart: look at it is up $3.31. they're listening. tell me about amazon, jeff sica, you could never say a bad word about amazon before but what are you going to say now? >> this stock is up 56%. you know, stuart, i love amazon, they have done a lot and what i will say, i would bet that they will be the first trillion dollar company. this is the the first time they have exceeded $2 billion. stuart: in profit. >> in profit. which is great. the prime day, which doesn't count in this quarter, they sold 100 million items on prime day, which to me is very, very
impressive. they have aways to go. stuart: okay. we've just been told that president trump is running a little late. he was due to speak on the economy from the white house lawn at 9:30. [opening bell rings] he will be a little late. we'll focus on the stock market about to open. bang. 9:30 eastern time on a friday morning. where are we? we're down six. we're down three. i will call this pretty much dead flat with a slight bias to the downside. now we're up -- enough already. it is a no-change open for the dow jones industrial average. okay, got that. it is actually up .01%. show me the s&p. i'm pretty sure the same story there. the s&p right now is, put it on the screen, up .16%. slightly bert. the nasdaq, that will probably show a nice gain because of amazon which is way up. yes it is. up half a percentage point which is the nasdaq. show me how amazon opened. yes you can. all-time high.
1871. 3 1/2%. she me twitter, please, under a lot of pressure today. monthly active users did rally down, the stock is up. facebook, looking for a bounce. up slightly, slightly. up two dollars at 17. formally introduce everyone. elizabeth macdonald being susan li, jeff sica and david dietze. 4.1% annualized growth, everybody is asking is that sustainable? can we keep it up? david dietze, what do you say? >> mr. trump, some of his tweets outlined some of the headwinds. the headwinds are rising interest rates versus rest of the world. the rest of the world is struggling a little bit. 70% of dow revenues come from overseas. we have to look at gdp elsewhere not just united states.
we're a big exporting nation. the dollar keeps going up. that makes our goods and services less competitive. stuart: answer the question, can we keep it up? >> look today, the stork market today be -- stuart: no, i'm asking you can we keep up 4% growth in the first quarter this year? >> assuming the interest rates don't go too high, u.s. dollar goes too high, absolutely. stuart: jeff sica. >> no, it is not reasonable. tax cuts inspire consumers to spend their money. we have coming up very clear potential of a trade war which is going to ultimately affect the consumer. the consumer has driven gdp up to this. i'm surprised it wasn't even higher the consumer spent so much. the consumer will be negatively affected. it will pull us back. if we're able to avert a trade war, we see momentum.
i don't think we can avert it at this point. i think the consumer will be somewhat affected. stuart: you don't think we can avoid a trade war? we have a deal with the europeans. looks like a deal maybe with the mexicans and canadians but china? >> china is the issue. europe has been wounded for years. they had to comply. stuart: you think there is a trade war with china? >> yes. stuart: we can't resolve this? >> of course. i want to be encouraged, i want to encourage people we can resolve it. but china is not going to back down, nor is president trump going to back down. we're going to see some damage to the consumer. now if that dan is longer term, then, i think it is going to of a affect g did dp in a drastic way. if not, let this be quick, let it be over but it will have an impact. stuart: susan li? >> yes. stuart: speak. >> those gdp numbers are encouraging. we haven't seen a full year 3%
read since 2005. stuart: yes. >> unbelievable. it took 13 years. government spending, budget plan, tax cuts in place and strong, strong earnings for the first six months of this year i think we'll get past 3% for 2018. see? >> we've been in this mediocrity for so long where we average 2.5% gdp. now we're getting good numbers, 4%, but we have to realize how vulnerable we are if the consumer isn't affected in any way. the consumer got the tax cut. now the consumer need to be supported going forward. stuart: you know, i was having dinner the other night in new jersey. >> oh, no. stuart: sitting outside, very nice gentleman came up to me, said, why on earth does kica take the negative opinion? no related to you. i don't know why i slip that one
in. did we get the two minute warning? we did. you get a two-minute warning in advance of any press -- presidential appearance. that is to get the cameras in place, warm everybody. he tweeted about this. great numbers on the economy. we'll hold a news conference 9:30. we're waiting for it. do i see movement behind the doors? not yet. look at the dow. we're up 22 points. maybe i'm grasp at straus but that is some movement for the dow industrial. a lot of people may have expected a big pop. you get a number like 4.1% annual growth. you would think wonderful news on the economy up goes the market. not so at this point. do you want to explain why not so? >> absolutely. stocks anticipate next quarter's gdp, the following quarter's. don't look back.
one reason too, wall street was expecting a 4.2 number. so 4.1, not quite what people were expecting. stuart: this is your fault. you are throwing cold water on the next set of gdp results. the market is listening to you. >> because the market doesn't care, david said it, it doesn't care about this number. it cares about the next number. there are ominous threats on the horizon. >> on friday, really? stuart: not sure about that. yes, it does look forward. >> it does. stuart: you about it doesn't totally discount a 4% growth rate, thinking, maybe it won't be so good next quarter. >> keep in mind -- >> one thing wasn't expected inflation number embedded in, only 1.8%. that was lower than expected. that is why the bond yields are going down a little bit. that will keep the fed a little bit on hold. stuart: may i get back to amazon for a moment. i think i have got the reason why amazon has kept on going. that is alexa.
apparently in their report, there was a final paragraph, talking about alexa, how it is everywhere and starting to make money out of it. >> that's right. stuart: enormous number of products sold through alexa. >> i said all along, alexa is a search engine. it is the next search engine. it is driving consumer. one of the most brilliant inventions we have had in this century. what we'll begin to see, we'll begin to see a lot of the people who have been reluctant to use alexa stepping up and using alexa and increasing the amount of money they're spending just -- >> a lot of business expansion anyone the earnings call. there is questions about bundling prime music offerings. music subscriptions were up in the quarter. they're getting into everything. content, you name it, pharmacies. >> look at the bigger picture here.
consumer spending is most important thing driving the u.s. economy, online retail is only 12% of that there is a huge runway and amazon is the leader. liz: go ahead. >> keep in mind on prime day 100 million items were sold. that is an astronomical number of items. they're just getting started with this prime day concept. the prime day numbers aren't even going to show in this quarter. they will show in next quarter. they will begin to see. they could take advantage of this prime day structure with alexa to really drive numbers. stuart: i think there is similarity between facebook and amazon with respect to privacy. lots of worries about facebook. it is not private. they're selling your information. but consumers don't seem to care. i don't think there has been that many cancellations of facebook. same with alexa. concerns about privacy. this thing is maybe listening to you. people don't care. they're buying enormous quantities. liz: i agree.
a important point you're making. it is about the experience. you go on facebook, people are shouting and trolling, being abusive, talking politics, you don't want that experience. that could reduce the time you spend on facebook. with amazon alexa, you get rapid, fast service. by the way that platform is disrupting so many different businesses the ceo is talking about tariffs or amazon. so when you see them, they have a cloud business which is going full like gangbusters, taking on microsoft. if they go into health care, health insurance, if they go into banking, they can store all the information up in the cloud and get a solid profile on each of us. stuart: before we see the president, we got the two minute warning four minutes ago, as my producer said he is exceeding expectations even with the two-minute warning. that was a pretty good joke, justin. not bad at all a. where was i going with this?
up 36 points on the dow industrials. can i conclude, zika, you would buy amazon at 1881 if you were a amazon investor. >> i don't like to chase stocks. i like amazon. i can't buy it at this price. it is up 56% from where it was. stuart: you would not buy amazon? >> absolutely not. you do not chase stocks at this level. we saw what happened with facebook. 20% poof. can't take that kind of risk. stuart: would you buy facebook at 177? >> i am at the edge of my seat wanting to buy facebook. it is very unlike me, out character. whoever came up to you in dinner should remember what i'm saying now. i'm not that negative. facebook, i was so excited it was falling. i'm somewhat disappointed it is rising today, because it is still not buyable the. liz: question do you buy it on lower dip you think is coming? stuart: how dong do you wait?
what is the dip you're waiting for? >> way facebook handled this. they were transparent about some of the challenges they face which i found very inspiring. so they will continue to be transparent. the momentum players will not feel comfortable with that. >> the challenges are so important. they're reaching the limits how much more advertising they can put in the main news feed on facebook. north american, european subscribers are starting to level out. you have to look at instagram. messenger, whatsapp. we don't know exactly how they will monetize that. there. is a lot of questions with facebook. very pricey stock. stuart: just to recap here, the economy is growing at 4.1% annual rate. we found that out at 8:30 eastern time. i do believe i see doors opening of the president is about to come out of those doors. this is the white house you're looking at. he will approach the podium and he will speak about the economy. why not. as i say we got 4.1% growth rate
reported 8:30 eastern time this morning. that is a win for the president. that is the fastest rate of growth in the past four years. it was 2014 was the last time we saw a single quarter of 4% growth or better. liz: under obama we hit decent numbers in various quarters. stuart: it was 4% in one quarter in 2014. as far as the overall growth rate for entire year, we've not seen 3% for the whole year since 2005. liz: what is really solid indicator, philly fed index of manufacturers. four out of 10 manufacturers will increase spending building out factories. we have not seen that robust optimism from factories in a little while. stuart: national federation of independent businesses reported absolute all-time high. 95% of all their people.
liz: they are collecting it. stuart: the doors are opening. i see the red tie. the president of the united states is approaching the podium. let's listen in. >> good morning. moments ago the numbers for america's economic growth, or gdp, were just released. and i am thrilled to announce that in the second quarter of this year the united states economy grew at the amazing rate of 4.1%. we're on track to hit the highest annual average growth rate in over 13 years and i will say this right now and i will say it strongly, as the trade deals come in one by up with, we're going to go a lot higher than these numbers and these are great numbers. in previous administration we averaged 1.8% gdp growth.
by contrast we're now on track to hit an average gdp annual growth of over 3% and it could be substantially over 3%. each point by the way means approximately $3 trillion and 10 million jobs, think of that. each point. you go up one point, doesn't sound like much. it's a lot. it is $3 trillion and it is 10 million jobs. if economic growth continues at this pace the united states economy will double in sizemore than 10 years faster than would have under either president bush or president obama. perhaps one of the biggest wins in the report, and it is indeed a big one, is that the trade deficit, very dear to my heart, because we've been ripped off by the world, has dropped by more than 50 billion dollars.
52 billion to be exact. dropped by more than 50. think of that, the trade deficit has dropped by more than $50 billion and that's added, and adding 1 point to gdp. that's a tremendous drop. that we have not had a drop like that in a long time. tough go back a long time before you find it. by increasing growth to 3% over the next 10 years, that would mean 12 million new american jobs and $10 trillion of new american wealth at least. and that's not including the fact that since i was elected we've created approximately $7 trillion of new wealth. the year before i came into office private business investment grew at only 1.8%. last year it jumped to 6.3%.
that was my first full year. we had to do a lot of things to get it to grow. this year it is growing at 9.4%. so that's a very tremendous increase. there hasn't been an increase in that in many, many years, decade and i think the most important thing, and larry kudlow just confirmed to me along with kevin hassett that these numbers are very, very sustainable. this is not a one-time shot. i happen to think we'll do extraordinarily well in our next report, next quarter. i think it's going to be outstanding. i won't go too strong, if it is not quite as good you will not lot me forget it. but i think the numbers will be outstanding. we accomplished a economic turn around of historic row portions. when i came into office,
1.4 million fewer prime age americans were working than eight years before. we had almost lost 200,000 manufacturing jobs under the previous administration and you all know, they say you have to lose manufacturing jobs, it will get worse and worse. manufacturing jobs are obsolete. no, they're not obsolete. they are the greatest jobs we have. more than 10 million additional americans had been added to food stamps in past years. but we've turned it all around. once again, we are the economic envy of the entire world. when i meet the leaders of countries the first thing they say invariably is, mr. president, so nice to meet you. congratulations on your economy. you're leading the entire world. they say it almost each and every time. america is being respected again and america is winning again because we are finally putting america first. everywhere we look we are seeing
the effects of the american economic miracle. we have added 3.7 million new jobs since the election. a number that is unthinkable if you go back to the campaign. nobody would have said it. nobody would have even, in optimistic way projected it. we're in the mid -- midst of the longest positive job growth streak in history. new unemployment claims recently achieved their lowest level in almost half a century. the african-american unemployment rate has achieved the lowest level in recorded history. african-american unemployment is the best it has ever been in the history of our country. the hispanic unemployment rate has reached the lowest level likewise in history. the asian unemployment rate has recently reached the lowest
level, again likewise, in history. women unemployment rate recently reached the lowest level in 65 years. soon that will be in history. give it another two or three weeks. veterans unemployment is at its lowest level in 18 years. that number is rapidly going up. on top of which we just received and won from congress choice where veterans can go out and see a doctor if they can't get service, the service that they deserve. unemployment for disabled americans has hit a record low, lowest in history. more than 3.5 million americans have been lifted off food stamps, something you haven't seen in decades. 3.5 million americans have been lifted off of food stamps. that's because they're able to go out and get a job.
and they are going to love their jobs. 95% of american manufacturers are optimistic about their company's outlook and that's the highest level also in history. that is an old survey. been around a long time. manufacturing wages are expected to rise at the fastest rate in over 17 years. business and consumer confidence has reached historic highs. so far this year american exports are up nearly 20%. i've only been here a little more than a year-and-a-half. over the same period, in the year before i took office, we have become a net exporter of natural gas for the first time since 1957. gotten rid of tremendous amounts
of regulations which allow us to do things. we have tremendous regulations on clean air, clean water, the environment, very important to me, very important to everybody but we had unnecessary regulations that were hurting our economy and hurting our country. we have eliminated a record number of job-killing regulations. and with the help of republicans in congress we passed without one democrat vote, the biggest tax cuts reform in our history. as you know the democrats want to end that and raise everybody's taxes. that would be a disaster for our economy. as a result, more than 6 million americans are now enjoying new bonuses, better jobs and far-bigger paychex. yet every single democrat voted against the tax cuts. every single one. we didn't get one vote. they voted against working families. they voted against small businesses, not good. in the first three months after
tax cuts. over $300 billion poured back into the united states from overseas. we think it is going to be in the end, when completed, over $4 trillion will be back into our country. apple alone is bringing in $230 billion and they're building new plants. they're building a magnificent campus. they will be spending their money very wisely but they're spending it in our country, not some other country. that was made possible by the new tax cut and reform plan. tate we're finally cracking down on decade of abusive foreign trade practice. we were abused by companies. we were abused by the companies within countries. but in particular, we were abused by countries themselves. including allies. abused like no nation has ever been abused on trade before. because we had nobody watching.
they stole our jobs. and they plundered our wealth. but that ended. yesterday i was at granite city steel in illinois. it was an incredible sight. we had an audience of steelworkers. some of the roughest, toughest people you have ever seen. and half of them had tears coming down their face. i don't know if these people ever cried before in their life to be honest. half of them had tears coming down because we opened a tremendous united states steel plant. they're opening up seven other plants. and the steel industry is back. they're open for business. and we need the steel industry. and the tariffs did it. and nobody mentions the fact that these plants are creating tremendous numbers about jobs, tremendous.
and, billions of dollars are pouring into the united states coffers. billions of dollars. but we're getting jobs, we're getting money coming in. we're respected, and eventually the steel prices will really start to go down because all of these new plants will be competing against each other but we won't have foreign countries dumping, that is the word they used, dumping steel all over the place and destroying our factories, destroying our plants, destroying our companies and destroying our jobs. since i was elected we've added 400,000 new manufacturing jobs. remember that was the obsolete deal, obsolete. i used to say why is it obsolete? we have to make things. manufacturing jobs are among our best jobs and we're just getting started. we also liberated millions of americans from the crushing burdens of obamacare.
the cruel individual mandate penalty is gone. that is where you pay a lot of money for the privilege of not having to buy bad health care and pay for it. it's gone. nobody thought we would get rid of it. that was the most unpopular provision by far, probably on anything, but certainly in obamacare. obamacare is now on its last legs fortunately and through associated health plans we're giving americans the ability, just opened, millions of people going to be signing up. millions and millions. we're giving americans the ability to join together to purchase much better and more affordable health care and health insurance, including bidding across state lines. so all of the insurance companies are going wild. they want to get it. you will have great health care at much lower price. it will cost the united states nothing. nothing.
think of that. it will cost us nothing. that is secretary acosta. secretary azar coming out with a plan somewhat different, the result the same, much less expensive health care and a much lower price. will cost our country nothing. we're finally taking care of our people. finally there is another matter that's of profound importance to me and i wish to discuss it right now before we leave. because there is nothing like what we've been working on, so important for the lives of not only americans but lives all over the world. at this moment a plane is carrying the remains of some great fallen heroes from america back from the korean war.
they're coming back to the united states. mike pence, our wonderful vice president will be there to create the families, and the remains and i want to thank chairman kim for keeping his word. we have many others coming. i want to thank chairman kim in front of fulfilling from the promise he made for me. i'm sure he will continue to fulfill the promise as she they search and search. incredible heroes lay at rest on sacred american soil, even during the campaign, people would come up to me, long time ago, many decade ago, often
times they were older. in some cases they were younger. great-grandfather, my grandfather, my father. they asked if i could do something about it. we don't get along too well with that country. they said whatever you could do. it is something that was i asked the vice president to pay special tribute be a they will do. we honor the memory of every single patriot that who died in that war. in every action we take, we fight for loyal, hard-working patriotic citizens much our blessed nation. we're making our country great again. we're respected again all over the world. our military will soon be stronger than it has ever been by far.
that in itself will produce thousands and thousands of jobs. known makes equipment like we do. whether planes or missiles. or any form of military equipment. we make the best in the world by far. allies to buyç that equipment quickly where they don't have to wait for two-year approvals and more. we're doing great. i'm very honored to see that 4.1 number. perhaps i'm even more honored to see that deficit shrink, the trade deficit shrink so much. with that i'd like to ask kevin hassett, chairman of the council of economic advisers and my very good friend, larry kudlow, if they could both step forward or and say a few words. thank you all very much. it's a great day. [applause] >> thank you very much, mr. president. and and thank you for your leadership and for the faith
that you put in me when you offered me this job. and thank you for standing up for our veterans. my father and my uncle both fought in the korean war, and you just can't imagine how much it means to those veterans that you didn't forget them. you know, as an economist, it's my duty, sir or, to remind that we should not make too much of one number, right? how often do with we hear economists say that. but when i think back to the first time i met with you in the oval and we talked abouáç your vision, you might recall that in the end i agreed, yeah, that stuff really ought to work. and the fact is if we look at the data today, we can see the proof in the pudding that the president's policies are working. it's not just in the top lines, but it's in the details. the president said if we deregulate the economy and have tax reform, there'll be a capital spending boom because the factories will come back to america. if you look at the data, the factories are booming again. the president said that be with we emphasize -- if we emphasize
energy production here in the u.s., that we could become a dominant energy economy, even an energy exporter. well, if you look at the data today, one of the reasons why the data are so strong is that drilling and mining activity skyrocketed in an almost unprecedented way. and finally, and this is the thing that at times, sir, you've kind of looked at me and smiled about whether i really agreed with you, you said you would bring the trade deficit down, and you have. if you stand up for america's workers and let our allies know that deals that aren't reciprocal are unacceptable, then you can make a lot of progress. thank you very much for your leadership, sir,ç and for your faith in me. >> thank you, kevin, great job. thank you. [applause] >> thank you, sir. thank you, sir. it's a little warm out here, so i'll be as quick as i can. i want to reiterate what the president said and my pal, kevin hassett. look, we've had a pro-growth agenda. it has been in place for a short while, it is already beginning to work. low tax rates, rollback of
regulations, unleashing energy and trade reform to fix a broken world trading system. i just want to note in the numbers -- and this is becoming a trend -- business investment is booming. 9-10% growth in the first half of this year. i believe that's going to continue. why do i talk about business investment? well, that's the key to productivity which is the key to growth which is the key to rising, real wages and very strong jobs, a point that kevin and i made during the campaign a million times, and we continue to make it. these tax cuts particularly on the business and investment side are going to be boostingç wage, livelihoods and jobs for middle american, ordinary working folks. and it's starting to take effect. and that's why i agree with the president, this is a boom that will be sustainable.
frankly, as far as the eye can see. this is no one-shot effort. so that's me. thank you, sir, appreciate it very much. [applause] >> thank you, larry. thank you very much, everybody. thank you. [applause] stuart: as you saw there and you heard there, the president wrapping up his news conference. this follows a report came out at 8:30 eastern time this morning that the economy is booming. it's growing at a 4.1% annual rate. the president said we are on track to hit the highest annual growth rate in 13 years. if it's above 3%, it's the best rate in 13 years. he said that the trade deficit has dropped by more than $52 billion. didn't give a time frame for that, but he said that was a bug shot in the arm for the u.s. economy. most important of all, the president and larry kudlow look to the future.ç the criticism is that this 4% growth rate was recorded in just one quarter, and we can't keep it up.
the president said, not so. he actually said it's going a lot higher. that's what he said. it could be substantially above 3% for the entire year. the next quarter he said, that would be the third quarter of this year, that would be outstanding. that is his wording. okay. big deal, if you ask me. david barnson is with me, he's the cio of the barnson group and tammy bruce is with us here in new york. david, i'll get to you in a second. tammy, i want you to compare and contrast what president obama said about the economy and what president trump's doing with the economy. go. >> yeah, look, people will remember during the campaign in 2016 during the carrier air conditioner problem where they were laying off workers who were going to leave the country, president obama -- well, then-candidate trump said he was going to change. that he was going to keep those jobs. he was going to keep companies in america. president obama then made a speech saying how, how is trump going to do this? does he have some kind of magic
wand? there's no way th@d this can occur. that was the theme of his speech. and this is the difference between it's not just obama and trump, it's the democratic philosophy that relies on controls and regulations. they do not trust a free market because they don't trust the individual. stuart: i -- >> president trump is the opposite. he trusts the american individual. the conservative ideal relies on individual foresight and power and the free market, and that's difference that you're seeing now. a democratic party that still is saying this can't last, it's because they don't understand the american dynamic, they don't understand the american will, and they think controls are the things that work. clearly, that is incorrect. stuart: it's a sea change in the philosophy of economic policy. >> exactly. stuart: or ill say that. >> exactly. stuart: david barnson, the president was saying some very important things about the future of the economy. the next quarter, that's the third quarter of the year, he said it's going to be
outstanding. and he said, this is his expression, it's going a lot higher. 4.1% second quarter, the president says it's going a lot higher in the thursday quarter. what do you make of that? >> well, i thinkç the key segmt was what larry kudlow said at the end, 9-10% growth in business investment. the first half of the year. if all of this 4.1 was just export-driven from the soybean issue and so forth, you could argue this thing was going to fall off in the future quarters, but it's not. the business investment leads to that further productivity. i agree with larry and the president that leads to wage with growth and other things that really have a big impact throughout the whole economy. but the whole piece missing, the gdp growth that gets back to trend line during those slow growth or no growth obama years was business investment, cap-ex. the tax reform bill is working. stuart: on that note, the
president said that in the end about $4 trillion will come back from overseas, it will come back to america. that's the kind of business investment p that you're talking about, david, in which the -- and which the president was talking about. he mentioned that apple alone, the computer company, would bring back $230 billion. that's just one company bringing back -- and that was becauseç f the tax cuts. that's the shot in the arm that you're talking about, right, david? >> it is. and, of course, the use of that proceeds for stock buybacks and dividends and other things are tremendous for investors. but i really want to make the point that what they're doing with the capital is also leading to further business investment outside of financial markets through the, quote-unquote, real economy. there is this reinvestment into machinery, into technology, into new hiring, and those things from repatriation and the additional monies they have from the lower tax rate, those things
are the shot in the arm, stuart, absolutely. stuart: so having listened to what the president had to say, you think that that was a bullish speech on the economy and for the markets too, right? >> oh, absolutely. stuart: yeah, that's really my question, david. okay, bullish for the economy, obviously, from what the man said and what was reported, but what about the market? why isn't the market popping after that kind of news conference? >> oh, well, you know this, stuart, the market is a discounting mechanism meaning it's always pricing in what it believes about the future. theç market has been pricing in the entire month of july that this q2 gdp print was going to be very good. so we have a big move up. we're a full 2,000 points now off of the lows back in march when i was sitting there next to you complaining about the trade war. so that's how much things have already been able to be priced in, and we have to keep it going. business investment, cap-ex and profit growth. always and forever, profits.
stuart: gotcha. liz? elizabeth: really great points, and what's interesting is the exports number in that gdp number. liz peek pointed this out, it's a good point. the financial times this past week has been running stories about how the chinese respect president trump. the officials there say he's thinking long term about rebuilding the manufacturing base so you have better, high paying jobs. that money will be spent. he's not thinking short term, he's thinking long term. so when you see these trade deals involving liquid natural gas into the e.u., that's our exports, that's our big, heavy machinery, high paying job sectors. and, you know, soç you've seen texas now, people in texas are saying we could displace iraq and iran in being the biggest oil producers in the world. the oil sector is very important here in terms of those exports. stuart: that was a big win, 4.1% growth is a big win economically. tammy, is it a big win
politically for president trump? it's got to be yes. >> of course, yes. but mostly because every single day we're told by his opposition that it's impossible for this to even be occurring, that this can't continue. they've been saying that from the beginning. donald trump is the individual who shouldn't even really exist, and he's like a unicorn to them. but every time he delivers, and it's consistent. and it's consistent because it proves that it's not a fluke, it's not from four years ago. it's now, it's his philosophy, it's the nature of the conservative ideal, and they can trust what's coming up. it gets baked into the market. but obviously, as we know, the economy a great deal is the optimism, it's an emotional response by the individual and the consumer. their vision of the future is high, their vision of what's possible has skyrocketed and, of i qr#ferently as consumers. optimism, his consistency and the legitimacy of what's going on. stuart: good -- david barnson,
maybe i'm picking a bone or a fight here with the president. i am not, believe me. [laughter] but he did say that on the issue of trade, david, we've been ripped off. billion by the europeans. that's not quite right, is it, david? >> no, it's not. and i understand the political language, and i understand his extraordinary talent with using rhetoric to impact folks he's trying to talk to. but you're talking to me as a finance and economics guy, and of course we're not being rip off when we buy things and they deliver things, okay? we gave 'em cash, they gave us product. that's not a ripoff. i am not getting ripped off by my barber when they cut my hair and i give them money. and yet i didn't trade anything with them, you see what i'm saying? so that's okay. i'm not trying to pick on president either. i don't -- i have the same view that he does about the philosophy of trade deficits.
trade deficit dropping $50ç billion is not the biggest thing happening economically. trade deficits collapse during recessions. so the fact of the matter is that there was such great news on the trade side, and liz referred to it a moment ago, the liquified natural gas story. i've been talking to you about this for months. the e.u., no one's reporting this except for, of course, varney on fox. the e.u. says that's where they want to start buying more from the u.s. this is an energy growth story. the pipelines, our infrastructure are going to benefit. it's u.s. jobs. i think the president should focus on that, because that's a real story. the other stuff you know how i feel. stuart: okay. i've got to wrap it up. david barnson, thank you very much for joining us, we do appreciate it. tammy bruce -- >> my pleasure. stuart: we appreciate that. we started the press conference at 9:30, and at that time the dow industrials -- it was about 9:40. the dow industrials were up about, what, 40 points i think
it was. well, the press conference -- it wasn't a press conference, it was a statement. that ended about 5, 6 minutes ago, and we're now up 25 pointsç so absolutely no market move despite all that the president had to say. the most important thing, i think, that he had to say was we're going to keep this thing going. the left is saying that that 4% growth rate is a one-off shot, you can't sustain it. the president says, not true. it's going a lot higher. that's what he had had to say. joining me now is charlie kirk, a man that i'm used to talking to about politics, but this morning you're going to talk about the economy. >> well -- stuart: and the politic obviously the economy. >> that's right. exactly right. stuart: i say this is a huge win for the president. >> bigtime win. everything they predicted about donald trump has been wrong. they said he won't run, couldn't win the primary, they said he'd taint the economy. what i find the most humorous is the very same people who said, oh, donald trump's going to wreck the economy now says he
has zero respondent for the success of the economies. either he was going to be responsible for the wreckage or for thes prosperity, and it's because of his deregulatory agenda the, his optimism and tax cuts that we're seeing record economic growth. stuart: larry sabato, pundit, pollster kind of guy, he says theç democrats will retake the house in november, and you say a what? >> i think it's going to be very, very close. if i was a betting man, i'd say republicans maintain a slight majority, but it's going to be determined by the suburban areas around main petro poll tan -- meant propoll tan areas. it should be a red wave . if you look at the metrics, it should be. stuart: you don't think it could be? >> it could be. i think there's going to be something that happens in late september, early october that will make or break the election for republicans or democrats, and ask we'll see. it could be a tragic event, a new political issue, but i think that the midterms have yet to be decided. but the economy is roaring, and that's going to be very
beneficial -- stuart: are you sort of dancing around the issue of russia, russia, russia, you think that's what's going to pop up? >> no, no, not whatsoever. i think mueller's going to come with whatever he has by september 1st and then go completely dark until christmas or new year's. that's conventional wisdom. stuart: i think we've got a tweet of yours. show it to me, please. you're poking some fun at the democritr in 2018 on twitter. let me -- i'm going to read this, o.k.? or do you want to read it? >> sure, it did quite well. bring back isis, keep north korea nuclear, raise your taxes, war with russia, let's crash the stock market, get back on well fearks abolish i.c.e., sympathy for ms-13, all news new jobs need to go and there are no genders. i'm being facetious, of course -- stuart: oh, yes, you are. >> but there's some reality in there, that's the funny thing. when you're not able to tell distinct reality from star -- sarcasm, that's when you know
you gone off the rails. the pathological obsession with the resistance to donald trump made the democrat party the party of carl marx. stuart: now you're going a bit far. >> really? hold on a second. the recent election here in new york, she's an outward socialist. she says wonderful things act marxist policy, she refuses to denounce venezuela. stuart: you're a conservative. >> yes, i am. stuart: you are determined to pin karl marx on the democrat party -- >> they're doing it to themselves. which i'm quite happy they are.ç or bernie sanders who got half of the votes in the democrat party. he honeymooned in soviet union. it's all very true the. said venezuela's a wonderful model for the world, and we should embrace, you know, neo-marxist policies. stuart: tammy bruce is on my left here, geographically -- >> yes, thank you. not anymore. [laughter] stuart: do you think the lad has gone a bit far? >> no, i think, look --
[laughter] this is what's so remarkable is that the curtain has been pulled back. we're just seeing the natural reality of -- they've been more secretive and more subtle in the nature of what it is they've been pushing. but now you've got the reality, and i respect it. i want everybody to just speak their minds. i want liberals to be honest about what they want. and the strange thing is that they really prefer that even though they know that in some ways -- it's like bill maher saying if it takes a recession to get trump out of office, bring it on. they don't really care about the nation as a whole. they care about a narrative and a theory that maybe works in seminars in colleges, but it doesn't work in real life. stuart: i'm going to go backç o charlie for this one. "the new york times," as you know, wrote an article about a conference that you hosted for young conservatives. it was in d.c., and here's their headline. opinion: how trump won re-election in 2020. >> well -- stuart: that's the wrong one, i'm sorry. here's the -- >> that's a good headline, we
like that. >> a really good one, by the way. the other was a place where conservative teenagers feel free to be themselves. stuart: yes. >> we hosted this wonderful conference this last week. we had over 700 high school students from 40 states. the amazing kyle who is from parkland high school who is the more conservative voice after the tragedy, he's our high school director. he helped put it together. and what really is amazing, "the new york times" did a very, very fair piece. the success we're having is becoming impossible to ignore. there is a movement happening amongst this generation z, and they're on pace and the data shows us to be the most conservative generation in modern political history as the pendulum shifts from postmodernism. there's going to be a rebalancing happening. as you seeç in sociological and generational trends, and turning point usa is on the cutting edge of that. [laughter] stuart: we're proud of you. and i still think you're going to be the president, but i'm stretching it out, 2044, i think, is your year. >> thank thank you.
we'll see. stuart: by which time you might get out of your teens. [laughter] bring you up-to-date on the market, the economy is growing at a 4.1% annual growth rate. the president issued a statement about i 9:37 this morning. vigorously supporting the growth now and suggesting it gets even better in the future. no response on the market. look at that. we're up just 9 points. that is it. breaking news, have we got this? shareholders for disney and 21st century fox have approved disney's purchase of fox entertainment assets, that's the movie and tv the assets. all merger proposals have been approved. 21st century fox is down a fraction, walt disney down a fraction. "varney" will be back after this. (phone ping)
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stuart: big tech names, gotta check 'em. first of all, amazon and alphabet, all-time highs. why is amazon up so much? $2 billion inç profit in 13 weeks. that's 12 times the profit they made in the same period last year. next story, the race to a trillion dollar valuation. apple's getting real close. if it gets to $203 a share, it's worth a trillion. if amazon gets to $2,050 per share, it's worth a trillion. facebook dropped almost 20% yesterday, wiped $19 billion off -- 119 billion off its market value. no bounce, no serious bounce, it's up just $1.50 at 177. intel, here we go. intel, huge drag on the dow. there's concerns about how fast it can roll out new chips. it's having its worst day since
january 2016. it's down 8%. whopping decline are. exxon is down. its profit fell short of what they were all expecting, and we're told it's been hit hard by maintenance costs. don't know what they are, but it must be big, down 3%. a winner, higher sales at chipotle. here's a turn-around story forç you. better prices and better demand for case sew cheese dip dqueso -- queso cheese dip. look at it now, 4.81 on chipotle. twitter reportedly -- they reported fewer monthly active users. they warn there could be fewer active monthly users in the future as well because they're deleting these phony accounts. the stock is down 17%. amazon's facial recognition software getting some criticism from civil rights groups. what for? elizabeth: the acl are u of northern california fears this facial recognition software will
erroneously, mistakenly send people to prison. so they gave the software a spin. they took 25,000 photos of arrests and mug shots, and then they compared it to members of congress. according to the aclu northern california, it erroneously tagged 28 members of congress as having been arrested. so the aclu is saying, you know, this is bad, this software's already in use by u.s -- twoç u.s. law enforcement agencies. excuse me, amazon is touring back saying this helps -- firing back saying this helps find lost children, human trafficking. you, acl are u, set the bar too low in doing these matches on your own. aclu fired back saying we used your default setting. we just follow the way you guys do it. the fear is this software could mistakenly, erroneously be used to throw people in prison for crimes they didn't commit. stuart: i do believe for the first time in a long time, i
might be in agreement with the aclu because that's a fair point to make. big tech racing towards that trillion dollar valuation, is big tech too big? author of "life after google," he says so. he's been wrong about tech for a few decades. he says facebook won't recover from their security issues. mr. gilder will make his case. speaking of issues, facebook, we'll have an author who tried to advertise his book on the social networking site but was denied. he'll tell us their explanation. you're watching the second hour of "varney & company." ♪ç ♪
>> the most important thing. larry kudlow confirmed with me along with kevin hassett these numbers are very sustainable. this is not just a one-time shot. i think we'll do extraordinarily well in our next worth next quarter. stuart: that is very important. moments ago he said today's growth number is not a one-time shot. it is sustainable. 4% growth. that's what he said. no impact on the market at all. it is still up a handful of points. 12 points higher for the dow industrials. mixed picture. apple getting up there, 194 today. alphabet, all-time high earlier today. microsoft is down about 50 cents at 109. starbucks didn't give a very good forecast. they are feeling the heat from the competition. the stock is rebounding up 80 cents at 52 bucks a share. our next guest says facebook
will not recover from its security problems. here is george gilder. author of the book "life after google." very good to see you, sir. tell us in what way facebook will not recover? >> security problems of facebook and all these companies are fundamental and without security, you really don't have a network and so this is really the first step in what i foresee is disintegration of aggregate and advertise model where, all you have a porous internet stark and all the money and power gets sucked up to the top. stuart: wait a second. are you talking about, i mean, is facebook going to collapse? are people not going to use it any longer? are they going to write off the
facebook accounts? in what way do they -- >> it is just a slow disintegration. ibm didn't collapse or disappear. it just subsided into the background of our lives. stuart: do you think, do you think we're all fed up with social media, that there is too much sure trail lance and censorship? -- surveillance. >> it is not social media, it is not censorship. it is none of those problems. the problem is the fundamental aggregate and advertise model. giving things away for free in order to have a monopoly. and to avoid security issues because on the grounds that nobody wants to steal anything that's free. that free model is going to break down in the coming years with the rise of the crypto
khasm, with blockchain and a return of the power over data and security to the actual users of the network rather than depending on these silos of data. stuart: would you extend that to the amazons of this world? >> amazons of this world actually collect money. amazons don't try to achieve monopoly through giving away free stuff. they are brilliant at collecting money from real customers. facebook doesn't have any real customers. facebook, except for its advertisers. really, who wants to see an advertisement in the middle of their timeline? it is just, these aren't ads. they're treated as ads but they're in fact minus, as everybody knows.
value sub is tracked. stuart: what takes the place of facebook? look it has got two billion users. something has got to take its place, doesn't it? >> i think there is going to be a massive scheme of micro payments across of our goods and services of the internet and facebook will have to adapt to it. the idea you can get to be a monopoly, giving away your product free, then you can collect all the data from your customers, without giving them security is just failed business model. it is not going to succeed. stuart: would you say, this is the last one, i'm got 30 seconds. would you say that facebook and google will disappear from what they are now? they will not be around, they will disappear within what, five years? >> yeah. they will be radically different
in five years and will not rule our lives the way they currently do. he they are currently dominant force and their freed model because they don't have real prices they can't really learn and build as companies like amazon that actually collect money from customers do. stuart: george gilledder, that is fascinating. thanks for joining us this morning. we appreciate it. >> thank you. stuart: food for thought. okay. let me get back to the economy. the president touting how, how well nearly every sector of the economy has been doing. there is one area that appears to be struggling a little, that would be housing. come in our real estate guy, bob massi. i think accurate to say housing has been struggling. tell us why. the. >> first of all, if i had a
video camera jogging around vegas, nobody would have to convince me. in some parts of country it is, here is the irony of all this, the people complaining how they're slowing down, are the exact people that caused the problem because they bought up all the inventory and raise the prices to the point that now they're saying, they're over paying, they realize a bubble of some sort will happen in the future. so those who caused it, are the ones complaining. everybody else by the way is suffering as a result. stuart: we're told some of this slowdown, i don't see much of a slowdown, but i'm told there is a slowdown, is the result of higher mortgage rates. but look, the mortgage rate, 30 year fixed-rate loan, that is standard issue. that is the baseline for mortgages, is what, 4 1/2%? >> sure. stuart: i don't think that is particularly high number for me at least? >> we're spoiled. i mean, you know, i'm old. i remember jimmy carter. i remember how high it was then. and so we're just spoiled.
i mean, listen, what was interest rates, 3%, 3.25, be 3%, now it is over 4% everybody is crying. the problem is those people that are investing. those people that want to build, they're saying construction loan rates are too loan, permanent mortgages are too high. the thing that you and i talked about before, this is what troubles me honestly, young people need a place to start, stuart. young people today in cities like las vegas, in cities like in different parts of florida, it is tough for young couples because investors have raised the prices. as a result of that, young couples can't even get into some homes, which is why many of the millenials have moved out to rural areas because they can't, they can't even buy quick enough now. so now they're saying it is slowing down again. as i drive around las vegas, i was just in southern california doing some research in the san diego area.
it is booming everywhere. yes, i guess some extent some wilsey it slowed down. stuart: do millenials still want to buy a first home? they like to rent, parents regard the home best investment they ever made, sea change in attitudes, what do you make of that? >> i have to tell you, i have three children and everybody says, how blessed i am to have my kids in las vegas, i have five grandchildren, how lucky are you? all you have to do is cosign on their homes. they can't leave. the bottom line is, what's sad is, a lot of these young couples, they do want to own but they don't have necessarily the financial capabilities of buying a home. so the baby boomers are helping them. i remember when we did the showdown in arizona, i interviewed kids in university of arizona, you know what? we don't want to be hooked up to a 30-year mortgage. these are 19, 20-year-old kids
that haven't had life experiences. once they have a family, of course they will want to own. stuart: bob massi, you know a thing about real estate. pleasure to have you on the show. we like the show on weekends on the fox business network. >> always a pleasure to work with you. stuart: flattery is the mother's milk ever television. that is pretty good, bob. god luck, young man. >> thank you. stuart: coming up america and europe make a trade deal. the white house working on one with mexico right now. so where is the uk? that would be britain. the british trade negotiator with us next hour. check this out. wide receiver for the pittsburgh steelers, antonio brown, arriving in training camp, landing in front of his team in a helicopter. wrong, wrong picture. we'll tell you more about jerry jones and the anthem stuff in a moment. meanwhile, left's go out with the beatles.
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course. we got this morning that gdp number. >> we turned it all around. once again we are the economic envy of the entire world. when i meet the leaders of countries the first thing they say invariably, is, mr. president, so nice to meet you. congratulations on the economy. you're leading the entire world. they say it almost each and every time. america is being respected again and america is winning again, because we are finally putting america first. everywhere we look we are seeing the effects of the american economic miracle. ♪ revolution in sleep. the new sleep number 360 smart bed. it intelligently senses your movement and automatically adjusts on each side to keep you both comfortable. and snoring? how smart is that? smarter sleep. to help you lose your dad bod,
stuart: intel had a strong quarter. had a strong quarter. it is down 8%. we're told there are lingering delays about rolling out new chips. apparently that is what caused the 8% selloff. that is the news i'm hearing at the moment. intel big drop there, down four bucks. better profit at merck. strong sales of the blockbuster cancer drug keytruda. rosy forecast, same story. why is the stock down 1% when you have a backdrop like that? it is down 1%. change the subject, get to football, nfl training camps starting just as the nfl meets again to talk about the anthem
protests. look who is back. jason whitlock, glutton for punishment. he is the man who runs "speak for yourself." he is the host thereof. i can't believe the season is almost upon us, and we're still talking about the anthem protests. so look i know you're a football guy. i know where you're coming from. i watch your show. you're grieving for this football season. who do you think is at fault? >> listen, varney. i think the players are not being led effectively by the nfl. it is time to put the issue to bed. time for the nfl to say look, if you have a problem during the national anthem, if you have a problem respect the national anthem, maybe this isn't the league for you and we're moving on. if you can't for three minutes, show some respect for the
national anthem, show some respect for the flag, honor this country for those three minutes, we don't need you in this league. this league is about the game, the fans, making money, and respecting the country and opportunity we all have to make a great deal of money in this country playing a game. and so i think nfl ownership is bending over backwards being supportive of the players, much their issues off the field. they have thrown a lot of money at the players coalition. nearly $100 million, to support those causes. what more do they need to do? these gestures, that guys want to do during the national anthem, they don't help people. they just cause people's twitter brands to grow. that's it. the gestures have no impact. they don't raise awareness. they don't point to the issue of
police brutality. it points to a controversy about the national anthem. it is time to talk to these young people in the nfl, as an adult, and get them back on course, representing this league and themselves properly. stuart: jerry jones responded to the comments on the anthem. he says his players will stand he says. here is the trump tweet. way to go, jerry. this is what the league should do. is this anthem protest in part against president trump? i get the distinct impression that it is? >> it has certainly moved to a way of resisting president trump. the players were baited into a trap thinking they're in a war with president trump. it is a mistake. again, that's not the way to
battle president trump over twitter, over an issue that does more harm to the players. stuart: right. >> than it does president trump. the players are damaging their own brand and their ability to make as much money as possible in a game that is very dangerous. and rewards aren't what they're talking about. all the gestures have done is create a controversy about the national anthem. it is not raising a awareness to the issues they are concerned about. stuart: i can tell, i watch you, i watch you on tv, i can tell you are upset about what is going on in football. but it looks to me like this, this stuff, this nonsense, as i would call it, is going to extend and spoil yet another season. >> there is a handful of nfl players who are caught up in this. there are 1700 nfl players.
there are 50 that care about this issue who are convinced that somehow they're going to change the world by kneeling during the national anthem. and it is boeing gus. they're being misled. -- bogus. i am very concerned about this game. if you understand this game as an african-american, this game has been great to african-american men, created opportunities, transferred wealth. it has done an amazing things. we should not throw it away over a gesture and a feel-good moment over social media. stuart: well-said. >> we're making a mistake and i'm trying to plead with these players, let's get back on task. do what makes sense for you economically. and take that money, and support the issues you say you believe in. stuart: jason, i have got to leave you. thank you very much for that heart-felt plea. we'll watch you. we want you to come back on the show, say the same again next
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patience of a saint. the new sleep number 360 smart bed, from $999. smarter sleep will change your life. stuart: breaking news for you. yes, i do. press secretary sarah huckabee sanders says president trump is open to visiting moscow. the white house says they are waiting, just waiting for a formal invitation. now vladmir putin will be visiting the white house sometime next year. interesting news. our next guest says, he was censored on facebook. yeah, he wrote a book about nationalism. he says that facebook censored his ads for it. here is the author of the, the virtue of nationalism. sir, take me through it. you wrote the book, wanted ads on facebook, what happened, give
me the story. >> we've been working on this for 10 weeks, stuart. you're constantly harassed on facebook, boost post, boost post, you're supposed to advertise. they love it what you do. you press boost post. i had an ad two weeks advertising the "the virtue of nationalism." it was going great. much after two weeks, a big red warning sign comes up. you're not allowed to do this. this is political advertising. you have to rejigger and the ad gets pulled. stuart: do you think facebook is taking the position that national system bad, because you wrote a book about the virtues of nationalism got to get you off? in other words were you censored what might be your conservative politics? >> well this actually is two levels to this. the first level facebook is on a campaign to generally sweep very large numbers of writers and media and small businesses into this political ads category. what the purpose of the strategy
is completely unclear to me. what is clear is that after you do the 10 weeks of work to register, you send them all of this personal data, and personal information. get little green check marks, go ahead you're cleared, after all that, they say this is political advertising. you're not allowed to run that. that is a story i haven't heard from anybody who is writing a book about you know, the virtue of globalism or the virtue of feminism or something. stuart: are you a conservative? >> i am a conservative. stuart: and got 30 seconds. you tell me the virtues of nationalism. you have to be fast about it. go. >> all right. the argument is real simple. is it best for the world in principle if we have a whole lot of different countries each with their own traditions, with their own constitutional and religious traditions, each one an experiment, trying to figure out what's the best way for humanity to live, is that the best order
for the world? or is what we snead an international order where there is rules imposed by someone, by some set of organizations and then everybody gets forced to do it? stuart: that is very interesting argument. i shall read the book. thanks for joining us, sir. we appreciate it, very much. >> thank you very much. stuart: more "varney" after this. ♪ go your own way copd tries to say, "go this way." i say, "i'll go my own way, with anoro." ♪ go your own way once-daily anoro contains two medicines called bronchodilators that work together to significantly improve lung function all day and all night. anoro is not for asthma. it contains a type of medicine that increases risk of death in people with asthma. the risk is unknown in copd. anoro won't replace rescue inhalers for sudden symptoms and should not be used more than once a day. tell your doctor if you have a heart condition, high blood pressure, glaucoma,
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stuart: take a deep breath and catch your breath, look at this, 4.1% annual growth for the economy, that's where we are now. the president spoke about this morning, just as the stock market opened. basically he took a victory lap for the economy's performance. he said the 4.1% growth rate is amazing. perhaps even more important, he said, the next quarter is going to be just as strong if not stronger. now that is a direct contradiction of what the left is saying. the left says this 4% growth rate is not sustainable. the president, at that statement in front of the white house
there, he said jobs market, wages, manufacturing all going strong. he said his tax policies are working. his trade poll sys are working. he says more trade deals in the work. britain, canada, mexico, all leading up to the big one, china. is that reaganesque? certainly in the the economy's growth rate. it's a big win for the economy. it is a big win for president trump. the democrats? they voted against this growth agenda. by the way there is 102 days until the midterms. summer doldrums. are you kidding? the third hour of "varney & company" is about to begin. ♪ >> will announce in the second quarter of this year the united states economy grew at
the amazing rate of 4.1%. i think the most important thing, larry kudlow just confirmed to me a long time ago, along with kevin hassett, these numbers are very, very sustainable. this isn't a one-time shot. i happen to think we'll do extraordinarily well in our next report next quarter. but we've terned it all around. once again we're the economic envy of the entire world. stuart: you saw it right there, the president speaking right after the big number on gross domestic product was revealed earlier this morning. jonathan hoenig is with us. he is the capitalist pig hedge fund manager. love to say that. so too peter morici, former international trade commission head. peter you're the economist. he says the growth rate is sustainable. in fact next quarter it gets better. what says peter morici? >> oh, i don't think so. we were coming off a low rate in
the first quarter so we got this big bump. what is sustainable, this is morn important. mr. obama was about 1.9% a year. on top of that, i think that we're going to hit secretary mnuchin's goal of 3% growth going forward. that's pretty darn good. unfortunately the president gets carried away with his statements. i doubt kevin told him we could have 4% growth every quarter. it is a bright picture. i want to know one thing, at what hardware store is mr. krugman shopping for the pail for his head? remember he is the guy who said we would have calamity if donald trump became president. stuart: he did. he did. peter, let me switch to jonathan hoenig -- >> are they laughing on set there? stuart: they are. capitalist pig guy. quit moving around jonathan, stay still for a second. the market, i don't think it responded at all to the 4% growth rate and the president's
statement this is sustainable. why not? >> yeah. well, stuart, you said it. you said the 4% growth rate is where we are. in fact, that is where we've been in the market. as always forward-looking. i'm not a party-pooper. i'm not cassandra, stuart. some of the action today in intel, as you point out, 6, 7% move down in intel. this is a big stock. facebook, i don't think this can be discounted. these are not small stocks, offbeat nasdaq names. these are major engines of the economy. these big tech names are what is driving the market forward the first half of the year. i'm a bull on america, a bull on the economy. if these big cap tech stocks can't get out of their own way here, i'm fearful of the second half and early 2019 could forebode. stuart: that is very interesting, jonathan. the next question will be applied to you. amazon, doesn't seem anything can stop them. $2 billion of profits in one quarter. 12 times the amount of money
they made in the same quarter last year. are you saying jonathan, maybe the big techs have peaked, are you saying amazon can't keep it up? >> perfect example. this is a fang stock. this is a fang stock, stuart continued to perform well. look all-time high here today, but so was facebook before it got 20% of its market cap lopped off. to me the big issue with amazon isn't whether it can continue to perform, whether it continues to at track the ire of the president who continues to make mention specifically on facebook. that has, on twitter. that has not rocked the stock just yet. it could, stuart, if those attacks continue. >> i disagree. disagree. facebook is a one-trick pony. they have only one business over there -- >> it only goes up. only going up for 20 years. >> listen to me, now. okay? most of amazon's growth is not driven by retail business. that has become more efficient. they're getting better margins
there. what is it being driven by its new businesses for example like cloud computing. the way to look at amazon today the way we looked at ge back in the '50s, '60s. it is multibusiness enterprise. they're constantly moving into new businesses. guess what? they are a two-piece model, business only conceived by two people fed with two pizzas, is low overhead model, they are growing rapidly because of that i don't think amazon is in the same place. amazon is our generation's general electric. stuart: which company will be first to trillion dollar valuation, is it apple or amazon? apple has to get to $203 a share, then it is worth a trillion. amazon has to get to $2050 a share. then it is work a trillion. who gets there first. jonathan, please answer. >> put my money on amazon.
first of all trillion dollars isn't what it used to be although you have to applaud it. they didn't get to trillion dollars not because of subsidies or farm aid, giving people what they want, inventing peel for people what they want. to peter a es point. that is why they're worth a trillion dollars. i would put my money on amazon, i'm sure as hell not invested in the stock at this point. stuart: peter, what do you say first to a trillion? >> apple is closer in market valuation right now, so it has a head start. i would bet on amazon, i bet on amazon coming up with new businesses, that is the trick over there. they keep building out, with their platform they seem to be able to find them. stuart: interesting neither of you thinks that they will not get to a trillion. nancy pelosi, wait for it, she we will read a special category on "jeopardy" tonight. roll tape. >> i'm house democratic leader
nancy pelosi, here to present clues about the u.s. congress. stuart: okay. so, what clue would you give nancy to read? jonathan, you're first. >> you know, my clue would be, oh, god, i would like to ask her, i would like to ask leader pelosi or speaker pelosi, what is the nature of government? what is the purchase of government? who owns your life? if she says peel, greater good, you know this is a politician you can't truly trust. stuart: the answer would be, what is socialism? peter what would be the clue you suggest for nancy pelosi? >> when are you turning over the leadership to alexandria ocasio-cortez? stuart: that's cruel. hold on, gentlemen, relax for a second. liz? liz: i would ask her what would be the most difficult thing for you to do, that would be stepping down from trying to be house speaker again. i should have said what is? liz: what do you got, susan? susan: i don't know, what is retirement? stuart: we're all on the same
page, i think. i think we'll ask our viewers, right. scroll up. i want to get this right. we'll read some of your suggestions from our facebook page at 11:45 eastern. bring them along, please. jonathan and peter, thanks very much for joining us. appreciate it. nancy pelosi, more on that. she is on a roll. she called 9/11 an incident. then continued to blast the republicans on immigration policy. claims they have been weaker than the democrats on border security. tom homan, former acting i.c.e. director responds to nancy this hour. the european union and u.s. trade -- struck a trade deal, no barriers. that is what they're working for. liam fox, with international trade. will there be a trade deal with the uk? that would be another big win
for the president, would it not? check this out, louisville, kentucky, whoa, what a flies clear day in louisville, today. wish i was there. third hour of "varney" continues. ♪ hey, no big deal. you've got a good record and liberty mutual won't hold a grudge by raising your rates over one mistake. you hear that, karen? liberty mutual doesn't hold grudges... how mature of them. for drivers with accident forgiveness liberty mutual won't raise their rates because of their first accident. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty ♪
stuart: chevron, they reported sales falling a bit short. a big jump in oil prices was offset by a dip in natural gas prices. not much change for chevron, up a buck 25, at 125. exxon, i can't fet over this. they were hit by big maintenance costs? they must have been huge. the profit did fall short. that is something to do with the selloff. oil is $69 per barrel price of gasoline national average, 28.5, that is for regular gasoline.
move on to taxes. the largest average tax cuts, $3331 in democratic california anna issue's district. political analyst larry sabato, he says the democrats will win the house, even though it was the gop, the republicans who gave out those huge tax cuts. what say but the dems taking control of the house this year? >> well, i don't want to get into the politics but i will say, that if we look at the benefits of the tax cut, that they are widely dispersed, i mean we've seen both low, middle and high income folks get tax cuts in every congressional district. the tax cuts and jobs act is creating jobs, leading to higher take-home pay, leading to lower taxes, more investment, more
charitable giving, really all good things across the board. stuart: wait a minute, you don't want to talk politics? weren't you an assistant to president trump? >> i was an assistant to president trump, but working here at the heritage foundation i have to say the policy really speaks for the politics. i will ultimately carry the day. if democrats, perceive that they end up winning on message of repealing tax cuts, ultimately i don't think that is a winning argument. as time goes on. and as the economy keeps growing, as more of those benefits go into people's pockets books, ultimately, i think the tax cuts are here to stay. stuart: well, do you think that, look, i have always been taught from way back when, that when it comes to pulling the voting lever, you vote your pocketbook. that the economy, the economy's performance, is the gut issue
which always comes out on top, unless it's a time of war or chronic national crisis. so on that basis, i would have thought that the republicans are looking pretty strong because we really do have a strong economy, and the president says, it is going to get even better than it is now. what do you make of that statement, that the economy will get better than what it is now? >> i think that is exactly right. what we've seen over the last year-and-a-half is not just tax bill, but deregulation. the gdp numbers that came out this morning, 4.1%, gdp growth in the last quarter that is extremely strong number. one of the strongest numbers we've seen in the last few years. i think it will continue getting better over the next few months. especially again we see the effects of the tax cut bill come through. then also the effects of the continued deregulation we've seen from this administration. stuart: would you characterize
president trump as free market kind of guy? i always think of heritage as free market organization? do you think president trump is in line with free markets? >> i think the economic policy we've seen from the president is in line generally with free market economics, generally supply-side econmics. i don't think you can argue with that. when the president is doing on regulatory front, obviously the president trusts people. he knows wealth is created by the private sector. not created by government. ultimately the economy is showing signs from all of the good policies that he is putting forward. so, you know, everybody can ultimately quibble on this or that. and, here at the heritage foundation, one of the things we would quibble with the president on potentially his trade policy we would like to see more free trade than less. but at the end of the day, what he is doing on taxes and regulation is great.
stuart: paul, thank you very much for joining us. next time, young man, we'll talk politics seriously. that's a promise. >> sounds good, thank you. stuart: just before we go to this story. look at the dow. virtually no change, despite a 4% growth rate, the dow is, nearly two hours into the trading session. we're up just nine points. that's it. next story, total change of subject. do you remember flippy, the burger flipping robot that made its debut in pasadena, california. flippy is working full time at the burger restaurant. flippy will start soon working at dodger stadium in los angeles, cooking chick 10 tenders. alongside human workers. he will make the dodger debut in mid-august. can't wait. virgin galactic, soaring ever higher than it has been before.
watch it. >> beautiful black sky. amazing view. oh, that is a million dollar have you out the window, dave. stuart: the vss unity, took its third rocket-powered test flight yesterday, venturing in the the mesophere for the first time. customers could experience five minutes of weightlessness before gliding back down to earth. check this out, the george washington bridge. i know it well. it's a lovely day? new york city. check it out. ♪
stuart: all right. there it is. a limited edition ford gt. it is at the center of an auction controversy. i don't know what this is about. but our guy, gary gastelu, foxnews.com automotive editor knows the story he will give it. >> i will give it. when you buy a ford gt, you don't just buy it. how famous you are, car collection. all sorts of factors. stuart: you're kidding me. not just good enough to have the
money. >> not even close. jay leno, tim allen, they get approved, a bunch of youtube stars. when you buy it, says you won't sell it for two years to keep out of hands for flippers. basically what the ford said about it. john cena, professional wrestler got one, sold it citing financial concerns. ford sued him and person who bought it. settled out of court. got apology for sina. another gt showed up meek couple auction. before they put it across the block. dana mecum we went to court, they approved free and clear. anybody can buy it. a court decision ruling from a judge. ford had filed a, injunction to try to stop the auction. basically what the judge ruled was that since the car had been
sold to a dealer who is the one who brought it to the auction, there was no way they could stop it because they didn't have a contract with ford. now ford is still suing for damages both mecum and the dealer brought it to the auction. don't know what happened to the original owner. this week the car showed up on dupont registry listed $2 million. it is off that. it is going to another mecum event in august. it sold for 1.8 million. 450,000-dollar car. stuart: i would be a flipper if i possibly could for that kind of product. ford wouldn't let me. gary, good story. interesting. president trump says his trade policy is working. he made a deal with the europeans. the deal is, they will work towards no tariffs, no barriers, no subsidies. they will buy, yeah, the europeans will buy a lot of our soybeans and our liquified natural gas. there is the deal. our next guest liam fox
negotiates trade deals for the brits. is he on the show. memphis, tennessee, all i see the sky, lovely, cloudy blue sky, but that is the sky in memphis. ♪ how can we say when you book direct at choicehotels.com you always get the lowest price on our rooms, guaranteed? let's say it in a really low voice. carl? lowest price, guaranteed. just stick with badda book. badda boom. book now at choicehotels.com
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year. we do need to have a much freer trading system. need to go back to ideals when the wto came into being in 1995. tremendous potential if we cut the barriers. stuart: how far are you prepared to go. mr. trump outlined working towards real free trade. as i said, no subsidies, no barriers, no tariffs. go as far as possible. the uk contact negotiate anything in. cite a much more free trade environment. so we get our tariffs done, if we get some of the quotas that we have. if we get rid of some of
non-tariff barriers. much more difficult to identify. that would be great. but sometimes they're a lot more representative of vested interests and they're harder to get rid of. stuart: now the president, president trump says you can't get a trade deal between britain and america unless the uk is out, totally out of the european union. so, can you get out totally from european union from exit date which is marching of next year? depend on deal with european union. we set a offer with the european union. they rejected it. the question will be this. if it is going to be a people's "brexit" about the economy ands prosperities of people of europe. going to be a bureaucrat's "brexit," which is about the ideology of the unelected european commission. now we want to see our european partners, strayed, with us, they're an important, about 43% of our exports but at the moment
it does seem as though the european commission are putting what i would call the theology of ever closer union ahead of the benefits of free and open trade between the united kingdom and rest of europe. that would be a pity. that would be damaging to all of us. stuart: do you think a crutch is coming? there is not that many time left to negotiate a complex deal? would you be at the point we're leaving, we're gone, could you ever see that? >> we have said we will leave the european union on the 29th of march next year. we would like there to be an agreement in place. that makes it easier for us all to trade with one another. we're very important markets. you have to remember that the united kingdom has an almost 100 billion-pound trade of good in deficit with the european union. that means they require access to our markets. we think that if we don't get an agreement, that could be tremendously damaging to some economies, particularly, ireland or the netherland.
we hope that prevails. we get an agreement. can you hop -- only trading parters in with one another and legal identity. it should be entirely possible for us to get that trade agreement as long as politics of the european union don't get in the way. stuart: i was born and raised in england. probably tell from my accent. i have lived in america for 40 years but i was very much in favor of "brexit" from a distance, okay, from a distance, okay? i was in favor of it because i don't like the idea of the european continent having any input on the rules and laws which govern englishmen. so can you, will you guarranty that we will get the brits, my former home country, will completely divorce from the europeans when it comes to the rule of law? >> well, you and i both, the reason i voted to leave the european union, the reason i
campaigned to leave the european union was primarily about legal sovereignty, i couldn't accept that there was a legal authority above the courts in the united kingdom. to explain that to an american audience like saying there will be a court in ottawa or mexico city that will have ultimate authority over the supreme court. that wouldn't be tolerable here for a moment and it wasn't tolerable to many of us in the united kingdom. for me that is the main element. what i want to see is exactly as you described it, there is no real authority over the united kingdom as a sovereign nation. that for me was entire point of leaving. stuart: i will ask you a question i'm sure you will not wish to answer, probably cap answer, would you like to see boris johnson the prime minister? >> as you know in the british system you're well aware everyone is touted as next leader. we're kind of on a rota with the media. it is not wise for anyone to tell the boss they are going to be taking their job, especially
when there is no vacancy. stuart: sir, you're a diplomat, i do declare. very good answer. liam fox, pleasure to have you on the show. come see us again anytime you're in america. >> thank you. stuart: i will stay on trade. actually switching fierce towards mexico. bilateral, that is america and mexico. a bilateral trade deal is possible, within months. that's according to mexico's top trade official. joining us now is a ceo and president, gaston periea. for give me for the pronunciation. >> that is very good, stuart. stuart: you're a good man, appreciate it indeed. he was the top trade advisor to the incoming president of mexico who said we can get a bilateral deal within months. that sounds very ambitious to me, bearing in mind the way many
mexican folks feel about president trump. is it possible within months? >> a lot of things have happened the in the last few months. there has been a lot of anxiety as you know regarding this free-trade agreement. mexico has been very successful. it really propelled mexico to almost first-world country. and things were not looking too good at the beginning of the year. but now with the election of president elect, lopez obrador things have change ad lip bit. the tone between mr. president trump and mr. lopez obrador has changed. we can see from the exchanges between two the presidents or and the president-elect they both want a quick turnaround on this. so i'm encouraged something will happen faster than we thought a few months ago. stuart: does the incoming government of mexico want to do a deal with president trump? the relationship is not exactly
warm, is it? >> look the relationship was not warm but president-elect obrador and president trump have exchanged pretty interesting letters in the last few weeks are showcasing a change of tone. even though the administration in mexico will not change until december, the trade negotiation team has been embedded by mr. lopez obrador's people. he is impacting the negotiations. stuart: i'm sorry, if you got the exchange of letters, referring to tone, has the exchange of letters involved tangible changes the way we relate tradewise now. are tangible suggestions on the table? >> well look, you know, i think that the consensus is that nafta has been a positive free-trade agreement for free countries. there are exceptions. there are certain sectors have
suffered more than others. others can really done extremely well. it has really improved the standard of living of the three countries. there are certain issues obviously are very sensitive to mr. trump because of his political platform and, and really reducing the trade gap. there is one element in the nafta agreement that is probably very sensitive is the automotive sector that is about a $40 billion, you know, exports from mexico to the united states. mr. trump wants it to increase the wages so that there is not additional wage depression in the united states and also he wants to increase the percentage of content in cars exported. so those are the type of little things that i think should be addressed and are solvable. stuart: i find that fascinating is negotiating higher wages for mexican car workers. that is a very big deal. that is good stuff.
you might get agreement on that. thanks for joining us. we'll see you again very soon. >> thank you. a pleasure stuart. thank you very much. i hope to see you again. stuart: you will, gaston. nancy pelosi will ask questions on "jeopardy" tonight. earlier this hour we asked you it submit your questions for nancy pelosi. and we're going to read some next. more on nancy pelosi. she called 9/11 an incident, and then said the republicans are weaker than the democrats on border security. well, tom homan, former acting i.c.e. director, responds directly to nancy pelosi next. ♪ ♪
>> comes with heavy dose of snark, topped off by sarrism. jay says what what use as donkey as a mascot because they are a bunch of blank. stuart: next one? >> oh. kenneth said, here is the clue. this has more than one state, borders pacific and atlantic oceans and has a southern border and northern border.
what did i tell you about sarcasm. stuart: an can i guess the answer what is california. oh united states. country. liz: first time stuart buzzed. susan: geography for 1000. stuart: go. susan: simple, straight to the point ones. blaze writes in. how can nancy pelosi give any clues, when she has no clue? stuart: blaze, come on. last one. susan: daniel says, what is a swamp monster? stuart: that's good. that's good. you know, not too snarky. not giving the answer. that's good stuff. i have some news on nancy pelosi. listen to what she said about which party is stronger on border security. roll tape. >> we have a responsibility to protect our borders, make no mistake about that. democrats have been strong on that point, all of our borders.
stuart: democrats are stronger on border security than republicans. what would former i.c.e. director thomas homan have to say about that? we'll ask him directly. let me put it to you directly. stop laughing. democrats are stronger on border security than republicans. speak. no what color is the sky in her world? false. say it 100 one times, no one has done more on border security, i worked for six presidents, started with ronald reagan than president trump. what nancy pelosi misses on her side misses there is no border security without interior enforcement because if the message is, get by the border patrol you're home free because nancy pelosi and others think we shouldn't be arresting those who don't commit another crime in the country that sends a message of enticement to keep coming. there is no border security without interior enforcement. she is wrong, dead wrong. stuart: she made a factual
statement which was after 9/11, there was a commission, it came up with suggestions for border security. nancy pelosi says that the republicans rejected them. is that true? >> no. what 9/11 commission came up with, law enforcement should talk to law enforcement. she supports california sanctuary laws which prevents law enforcement talking to federal law enforcement about illegal aliens that commit crimes in her state. again, wrong. stuart: i understand that would be a winning political proposition is in california, but i do not believe it's a winning political proposition elsewhere in the country. what say you? >> 100% right. the american people are smarter than that. they have to understand, if we don't have border security. if we don't have interior enforcement. you had hide out long enough to have u.s. citizen child. we'll never solve the border crisis, never control the border unless people think to the right, this president and this secretary neil -- nielsen are
doing the right thing. we can't fix the border without interior enforcement that is the important thing the dems miss. stuart: we have pictures of the wall, prototypes of the wall, on the screen, moments ago. are we building the wall, when is it going to be done? >> answer to your first question, has the dems done more than gop on border security. dot dems support a wall? shown every place they build the wall, back in my days in the border patrol, in the '80s in san diego, they built a wall. illegal immigration declined. do they support the wall? no. this president want as wall. i think the wall works. american and women of the border patrol think wall works. what price on national security? the gop doing right thing. this president doing right thing. we have to stick with him. stuart: you speak in sound bites, tom. that is very good. you can come back anytime, mr. homan. appreciate it. listen to the headline,
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stuart: states in the northeastern part of the country will not meet their climate goals, despite politicians and ton of regulations for the region they enacted regulation for carbon emissions. not meeting targets. john champion is chairman of apr energy. big shot in the energy world. isn't that right, lad? issue, it is worse than that. the goal, in 1990, over 60 years, in 2050, was do 80% reduction of carbon emissions. barely got to 16%. we're halfway through it. the energy price, the electricity you pay in new england is some of highest in north america. for instance. about 21, 22 cents for kilowatt-hour.
florida, 11 cents. stuart: is that because of green climate change regulation or in part? >> you need a balanced energy portfolio. you can't be all of one thing or the other. you can't be all of nuclear, or coal. you have to have a balanced energy portfolio. cheapest and efficient and green is natural gas. three pipelines to get to new england are choked off because governor cuomo in new york not going to happen. stuart: that's right. that governor of new york state says you can't have pipelines. >> those pipelines would feed cheaper u.s. natural gas up to new england. the new england problem it is collective of states, one iso, one independent systems operator. one grid. you have various factions trying to do various things, act collectively. as a result of that they haven't met their goals. most expensive electricity in the country.
56% more expensive than the rest of the country. stuart: if you can't build the pipelines, you said they can't, be choked off. you can't get our american natural gas to the ports to export it to the europeans and they want to buy it. >> correct. look, we've talked, you and i talked about this several times in the past. american gas to europe will solve a huge political problem, and potentially worse problem than that. because the gas is coming from your friend, my friend in russia. that's a problem. that is used as a political tool. when, your hammer everything looks like a nail. stuart: you're going up against governor cuomo, aren't you? >> think that is a problem. cheap gas in america is fueling this economy. you talked earlier what the president is doing. we talked about the gdp. we have a energy policy that's beginning to get better. we've got cheap gas in this country. who would have ever thought we would have largest gas reserves
in the world. what is becoming from this president's policies. he is knocking down barriers. cheap gas, cheap electricity, is fueling this economy and tax cuts, again all things being balanced. stuart: john, thanks for joining us. >> thank you very much. stuart: see you again soon. more "varney" after this.
stuart: susan, tell me about twitter. looks like it is on track for a terrible day. >> terrible stay. worst day since october 2016. down 18%. facebook and twitter because monthly active users have fallen. they're shutting down fake accounts. they will decline for rest of the year. stuart: if these social network companies can keep on growing they're okay. the moment the growth rate pauses they're in deep trouble.
>> new reality. stuart: twitter is down 17, 18%. >> 18%. stuart: our time is regretly is up. i hope everyone has a wonderful weekend. we plan to. my time is up. i have three seconds. neil, it is yours. neil: stuart, thank you. look what we have going right now. we have the economy on fire. a lot of people saying, can we maintain that fire? we'll exploring that next couple hours here. bottom line you already know. the markets already expected this. maybe hoping for even better number. that is why they're kind of soft on this. never satisfied these guys, bottom line. deirdre bolton here to break it all down. what is happening, what it could portend for this economy. deirdre. >> neil, the headline, 4.1%. that is the second quarter. u.s. gdp. that is essentially all the goods and services that we are producing. this is the best level since 2014 in the third quarter. so there we