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tv   Varney Company  FOX Business  November 28, 2018 9:00am-12:00pm EST

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christmas tree. >> all right sorry than. gerri willis back back big opening coming up final thoughts real quick guys. >> white house doesn't have to do anything to take away subsidies they began expiring shortly as soon as gm hit that 200,000 vehicle mark. they have to stand back to say you don't get anymore. have a great day everybody. stuart take it away. >> i will good morning march why and good morning everyone. so what's the state of the trump growth economy? pretty good thank you. july through september, the third quarter, the economy grew at annual rate of 3.5% no change from earlier estimates. what's the state of the trump stock market rally? oh, just fine thank you this morning. look at this another triple digit gain at the opening bell. up 100 yesterday. maybe up what, about 150 at this morning. today here are rkt pas that play, fed chair powell makes big speech at 12 noon eastern fox business will carry it.
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president xi and trump meet this week i heard trade fight truce that apparently is helping market today. and i hear the words, santa claus reallily. we'll see but it helps the market. it is a horse race to be the most valuable company in the world. a physical worth 826 billion. microsoft 822 billion. it is neck and neck both stocks by the way are up premarket actually microsoft just slipped to unchanged. politics it shall a solid win for cindy hyde-smith republican senate candidate in mississippi she beat mike espy by eight points. president trump backed hyde-smith with two big speeches the day before the election. he calls it, a big win. big show coming. caravan leaders issue their demands, what? the nerve, and gas don't you love it. way down again. "varney & company" is about to begin.
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♪ all right migrant caravan on southern border the leaders have wait for a list of demands. they do let's start with those demands. end of all deportations they say. speed up the asylum process they want the new government of mexico to form a commission to help their polite. they want names of those deported released publicly not sure if that's what they want and they want 24 hour access to human rights attorneys and it is interesting when you listen to what they're saying to reporters one saying look, i don't to go to the side because i'm bad meaning i want to go to u.s. but work is work it is here, there, anywhere i want to work. what you need to point out is that is not a valid reason for asylum. right are it does not qualify that they don't seem to understand that. >> thank you ashley. thank you okay. it is obvious but it needs to be
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pointed out. thank you and staying on caravan and the leaders list of demands. liz peek is with us. have you ever heard expression hood defined as a man who kills his mother and father and pleads for innocence before the judge on the grounds that he is an orphan that is what -- [laughter] i do declare that a little bit of that own part of the caravan leaders am i, quote, out of bounds here, liz? >> look i think ashley put his finger on it issue is that these people think they have a right to come across the border illegally into the united states and to basically stay here. that's what their expectation is. they do not have that right. they have a right to apply for asylum but to ashley point many of them have expressed a view they're basically coming for better life. now what's happening is, hundreds are being sent back to their home country and hundreds have been deported by mexico, ones that charge the border. and i think what's -- what you're seeing here every day is more evidence that there
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is a group or many groups backing these people really with the purpose of embarrassing president trump. that's really where all of this came from the beginning this was not organic restive group that left and went north to come to the united states. would they look to come into the country absolutely but do they have right to do so, not necessarily. >> ashley and liz make important point that you know getting tries to get a job is not covered by our asylum laws other thing too is stuart, these migrants are saying credible fear, they have credible fear that's under asylum law here. is that or so why don't they accept mexico offer of asylum to, you know, with -- based on that -- >> based on coach to say magic words that they're in fear for their lives et cetera but that is not. begin, this is all a political theater and people really who are being harmed by this are these migrants who are basically being used as pawns by --
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proimmigration activist who basically want to as i say embarrass administration. >> on a related issue and this is related, liz, president has d politico he be totally willing to shut government down over fund border wall if democrats refuse to budge from their position. that's very much hardline trump. do you think we will get a government shutdown and do we care? >> well it is a good question. i mean there's always a question what does that mean exactly he's already talked about shutting down border and he did that for a moment or two. which -- , obviously, solidified his posturing on this whole issue. democrats sound unwilling to budge chuck schumer has said we have an agreement it is 1.6 billion or whatever in the appropriations number we're not going to change that. you know, trump can play hard ball on here and he doesn't have much to lose at this point i think republicans in congress will be -- basically opposed to shutting down government but he want it is this to be a -- a central issue going into 2020
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and i think all of this -- afnght at the border even though it is not being reported very aggressively are to put it mildly by "new york times" an other left wing left leaning organizations -- left wing too -- you know, it is something that is actually helping resistance to this idea of open borders. americans don't like these scenes we are rule of law nation qept to see that in acted so -- >>let see. thank you liz peek now i want to get back to your money that's politics now let's get to money look at futures please. the doug, the s&p, the the nasdaq all of them going up at the opening bell. all of them have been up for past two days look at that nasdaq half percentage point up. joining us now market watcher jim hayward can i use expression santa claus rally here it comes? >> yeah. i think -- seasonably it is a good period, people are optimistic business is good. seas are going to be good profits in the fourth quarter are going to be good.
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we have to get through two finishes first is the speech speech today hopefully he won't disappoint and he has to thread needle and secondly, china -- over the weekend with trump. and as long as you don't get disappointment from either of those events market is likely to sprint through -- sprint i like expression are. written through. right now we're at the point with a positive or no gain -- or negative for the year. and tends to be a grass half full period and business is good. so market i think wants to go up between now and end of the year is as long as we don't get -- hurdles aren't too high and thoadz are two. >> speaks at noon today and carries that speech and see about that now we have a revision actually no rescission on gdp numbers growing in third quarter at annual rate 3.5%. i'm disappointed -- >> well you know we are going to slow -- you don't grow at 4% with the demographics and productivity
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numbers the way they are. we did it with reagan. structurally trump has bump that rate up from obama period from above you're above the 2% kind of growth that we were stuck in. i'm not sure we're with at a 4% able i would say eliminating tariff issue would with eliminate business uncertainty and stimulate more business spending to get us closer. >> let me get to that larry kudlow i want to show everybody what he said about about traitd war, trade fight with china. roll tape please. >> i'm not here to critique or second guess the chinese economy. but most observers believe china to in a slump where has united states in a strong solid position going into this summit, however, again to repeat, president said there's a good possibility that we can make a deal a he's open to it. in other words we can last hmm out because we're doing better than they are. >> absolutely i think that's
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true but if you look at trump position he's starting his campaign to be reelected, and most people think that the longer this tariff issue goes on, it's a cancer that will grow through the economy, hurt business spending, hurt the business major finance raise consumer prices, and a he needs a good economy to be reelected. especially in the battleground states. so peening he's been classic trump being a very is hard negotiator, and is going to come up with some set of dynamic allow him to declare victory to say we're great friends with china and he'll get some structural improvement but -- this is a trade battle that's going to go on for year if >> it james i like the sants clause rally i'll take that. [laughter] okay we have a horse race going on here. that would be between apple and microsoft which is -- going to the most valuable compy in the world. listen -- >> who would have thought microsoft -- [laughter] slowly and steady.
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microsoft, they would blast the top i think back way back in 2003. microsoft is all guns going. but what's happening right now a big horse race between apple and microsoft. microsoft temporarily took crown away from a l day yesterday what's going on with apple is, of course, iphones if you have tariffs what's going on with microsoft is cloud and cloud computing is corporate america. it dupght rely on volatile consumer america. so wow, what a story microsoft could be the biggest company. >> most valuable company. most valuable that's right. i own a small piece. let me tell you the dollar, they have to trade 130 to be a trillion microsoft. for a trillion and apple to be back 210 to 110. >> the time okay i have amazon story is amazon story of the day a big one starting to sell software that mines patient medical, records for information, so ash, i have two questions. where are they getting the the
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information from? >> no. no -- what are they doing with it? >> okay. it is a very data heavy sector of the industry is health care records and they're digitized now, you can imagine that tech companieses that develop software that can analyze all of those medical records what they can do is use algorithms that can pluck out key factor and streamline for health care providers to pick out those areas that are most critical to your medical records. and it is a huge area 7 billion a year, this industry is worth, amazon is getting into it it is not easy they have to develop algorithm to develop abbreviation yes doctors note, all of that makes it difficult. but if they can get it right, this is a huge very lucrative area for amazon to get into, and doctors use that soft square to streamline and speed up and improve their -- treatments and assessment of you. >> and in up market amazon is up 28 bucks premarket that's close to a 2% gain is back above 1600.
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thanks ash. got it. check futures overall, they're going to be up about 150 at the open opening bell that is a nice gain of a big solid gain yesterday and on monday too. next case, the opioid crisis -- has it become a feintal crisis that's used to treat overtoeses he's on the show today and tell us what his company is doing to do what he's going to do about this sentinel threat. forth nite sending some kids into video game rehab. we're on the story. >> what? >> president trump not happy that gm is cutting jobs and closing plans does he have a point in is the company acting in the best interest of shareholders? quite a debate there. businessman herman cain joins us, next.
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politics, house in thes holding leadership vote today, emac, this is all about minneapolis being the next speaker. >> here's the back story to how to watch the vote. she only needs a simple majority 118 votes from the caucus meeting today. however, when they have the full on official vote january third she's going to need 218. so they'reed to a vote count that falls less than 218 that shows weakness in democrat party for nancy pelosi. that means democrats would be emboldened to oppose her. but that's you have to watch that count today. watch ouch on sings is there and oppose nancy pelosi? >> that's correct. i don't doubt that she's next speaker. but the science of the opposition will hamstring here to some degree in the future. i guess. >> that's right and more democrats could peel off to oppose her if the vote is weak today to nancy pelosi. >> fair point good stuff now president trump as question all know is not happy with gm's plan to cut jobs and close plants
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especially since gm still owes taxpayers about 11 billion from the bailout. ten years ago. herman cain is with with us with the protrump america fighting backpack. let me spell out way i see it. general motors is defending the interest of its business and its shareholders wants to stay competitive. the president is critical because we bailed them out and didn't get money back. i see both sides of this argument. where do you stand? >> first, in the short term, they may be making the right move but we don't know what the p and l looks like nor to we know how quickly they'll cut these costs they could be trying to achieve a profit goal for this year next year. which is why maybe they did this. howeverly no and a here's why. best business climate in the world we have the hottest
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economy in the world. we also have some of the best most productive workers in the world so long-term, i don't think this is a good decision. and here is one of factors to or consider in this whole scenario. they are not looking at the product itself. maybe they need to reengineer the products and they're not competitive maybe that's the right problem that they ought to be working on. >> what about other side of the fence which is president trump? a lot of people say look, the of the united states should not be jawboning and threatening a private enterprise company no matter what the circumstances. what do you make of that? >> i don't think it is threatening. we have a president that does not hold his feelings back -- >> herman threatening to withdraw subsidies -- >> well, if you want to call it a threat, then it is a threat. but we have a president that does -- that does not hold back feelings about anything he's been
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critical of the federal reserve chairman and critical of general motors of anybody. but that's his had nature. so i don't see that threat as real until he makes a final decision that indeed that might be something that he does and he would have eve right to do so. under circumstances. you're coming down on side of the president i think -- >> i am. okay. and it gets back to -- look, i was in business for 50 years. the first thing that i would look at is, is my product competitive? and if the answer is yes -- then i find out i find a way to make my operation more productive. to me it appears as if it was somewhat of a knee jerk reaction on part of general motors not to get become at the president not to throw the -- terrorists or money old in his face. no. i believe that they are not looking at the the real problem which is the product itself. it is not selling there was a reason why it is not selling and they need to make it more
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competitive. >> i understand exactly what you're saying i did again. thank you very much mr. cain thank you so much. see you soon. >> thank you, stuart. hey look where do we open this market up 100 yesterday up about 130 when that bell ring ares in ten minutes time. how about this one? black box data from that doomed lion jet is released the pilots thought in a life or death tug-of-warover computer malfunction it is a dramatic story. you'll hear it. helped put a roof over the heads
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all right the black box from the boeing jet that crashed in i understood indonesia fought to get the the plane up. tug-of-war between man and machine it lasted 11 minutes. before the plane crashed in the black box showing that the plane's nose forced dangerously downwards over two dozen times as pilot desperately tried to bring the nose back up they were unable to do that. the plane crashing into the ocean at 450 miles per hour. killing all 189 people onboard. they have yet to find the cockpit voice record or which will also help to fill in some of the gaps as to what pilot very deaning and saying at the time this was going on. boeing is refusing to comment --
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but officials saying this was not airworthy before it took off. that new system in this 737 max had sensors on plane that were providing inaccurate information to the computer onboard and that is the problem. boeing is yet to comment directly to that. >> drama. thanks ash. gas prices -- national average for the price of gas is literally tumbling. we're now down to 252 down 49 straight days. where is the cheapest gas in the country? >> in texas at a buck 69. a buck 69. who would have thought. ash and i won't be seeing you and driving down there to get that. anyway gas is now cheaper inflation is -- versus when the years all of us were born inflation and basis. >> how many states can i find at least one station at a dollar -9d 9? >> 19 states. 19 states that is correct. so -- thanks for cueing me up on that. >> don't have to drive too far. look at you go. look at that.
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new york city actually new york rather and ohio. will you go. see you in a little bit. stu -- christmas -- [laughter] all right dow industrials will open high or this morning, we're taking you to wall street in one moment up 150 maybe.
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you know, this stock market this
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week could be on a role. look, 350 points up monday, 108 yesterday and we are going to open with a gain of about 150 points this morning. two factors which are encouraging for investors number one, the word trade troops when it comes to china and no damage expected from jay powell speech today from the fed. bam here we go. it is what day is it? wednesday morning that's correct we're up right from the get-go we're up 128 points at 131 points 24,800 that's where we were up 128 that is about half of one percentage point. that's where we are in the first 30 seconds. how about the s&p 500 is that up? yes it is about the same amount actually a half percentage point higher. now the key indicator for tech stocks, the nasdaq up a solid 3 quarters of one percent that's a better gain than the dow or the s&p. let's have a look at apple and microsoft because -- it is a horse race are between
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these two, as to which is most valuable company they're neck and neck as we speak. more on that in just a moment. joining us jack, jonathon elizabeth macdonald and ashley webster. that's your name. got it right. bottom left now i can see it right there. jack first of all, apple versus microsoft. which emerges as most valuable company in the long term not today or next week, long-term? >> apple does. i mean apple -- they're in same position by market value but they're vastly different situations when it comes to evaluation microsoft is twice as expensive as apple relative to earnings or free cash flow. and if you think that best predictor of long-term stock return is the price you start at you would say there's upside from here for apple. i think microsoft means it has okay shape but good growth there but fully priced to me. >> really? >> i'll take -- i'll take that side of that actually. i'll take other side of that stuart if you want.
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look apple i love it i'm a user apple is emblematic what have we have now is a cult stock in the nasdaq. apple is one of those fang stocks lower priced. >> trades like an airline how could it be a fang stock? >> because cheap stocks continue to go lower and that's why i think stuart, the the entire trend for the market look i'm not a hater i don't hate the president or the economy. but the trend for this market even despite this week is still lower almost 300 new lows yesterday for s&p only 30 new highs. >> okay we hear you thank you very much indeed so you think that it is going to be microsoft that emerges as winner and you think this had -- well i've got my money in microsoft there you go. let's talk amazon they're starting to sell software that mines patient medical records for information. jonathon, that looks like amazon is making a really big push into health care because look they already bought the the online
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pharmacy pill pack. now it is medical records that are getting into. what do you say? >> love it. love it i love when these big companies come in and what do they say they call is cannibalization i call it improvement. this is a history of you know great big companies and yes they'll be concerns about privacy but we have a justice system to protect us against that. so i'm elated about this, however, i do think it is going to be amazon one of the fang stocks even as they make more money evaluation will go down so will the stock. >> all the way i love to see -- companies with all of that money spreading out into other industries and improving them. what's wrong with that? >> justice system that protects us and privacy way after the fact. i mean already seen that with -- privacy -- >> amazon is at 605 as we speak let's take a look at facebook, apple, netflix. all three of these stocks in month of november have come down sharply. let's see we're down almost 11%
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netflix 10 point whatever it is there. jonathon, you wouldn't buy any of these at the moment would you? >> at the moment, stuart i think that's -- forget the the proverb what is it time and place for everything urpdz the sun. now is not the time for tech stocks yes we're up this week but -- thanksgiving was the worst week for stocks in 80 years you know technology was leading way down. they reminding me very much of tech stocks in 2001, it is not that those company went out of business but a lot of them were dead money for ten, 12 even 15 years. >> in contrast jack you would buy facebook. facebook is now cheaper than wal-mart relative to earnings it is cheaper than mcdonald's. among these three companies one of them is going to double its revenue over next four years and wal-mart aingt mcdonald's. no one admits anymore to being on facebook by the way everybody suddenly too cool to admit it because they're worried about seem too old for facebook and keep in mind own instagram for the young.
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and it is like mcdonald's. we all eat there. we all eat there but no one likes to admit it but -- exceptional value -- >> facebook may be jumping the shark on the time spent right people are checking in and getting off site not spending a lot of tile also big, big embarrassing showdown with u.k. and other country leaders yesterday. you know, they have problems in europe and here in the states. >> 135 on facebook. got it. check the big board almost a high of the day thus far. we're pup -- 150, 160 points as we speak that means we're at 24,900. how about this from twitter? out with new rules about labeling transgender people. if you call someone who has transitioned from a man it a woman, you call that person sir mislabel them gender wise you could be banned from twitter. that's happening. 32 buckses on twitter that's the price. higher sales at the discounter burlington stores look and go 6% higher. lower sales at chicco women
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clothing retailer and that is -- down. [laughter] oh. 31%. ouch. >> i feel that one. going other way rosy forecast in dicks sporting goods should be good for a gain no it's not fractional loss 13 cents not so rosy forecast for smucker oak well born someplace else. [laughter] the jelly and jam people -- they're down nearly 4% and never try to reare pete that again. okay got it. lower profit at tiffany, they're newscasts in more stores they're down 8% okay. let's look at general motors president trump is not happy with them cutting jobs and imposing plants especially since gm still owes taxpayers about 11 billion from the bailout. should the president jawboning and threatening a private enterprise company jack? >> jawboning yes. threatening no. there's no problem with
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president battering about keeping jobs here and bringing more jobs here. that's what we ought to be doing but changing deal on tax incentive for electric cars yeah businesses have to invest they have to have a plan. >> go ahead jonathon. >> job owning is threaten when you're the force. you know, if president is forced the president is government, him job owning the threat of force, and we have a fair government a fair society a economy that means hands off, and stuart you say that gm owes the public taxpayer owes taxpayers money. they don't owe us anything. we are to blame for giving the money for bailing theming out in first place and they'll tell you president trump wases for the the bailouts. so you know, gm steel stocks now they are cheaper than they've been over a year that's my worry it see more bailouts because current president favors last one. >> so you don't pay back a loan it is fault of the person who -- gave you the loan. >> i don't know if i agree request that. >> bet your mortgage quick with with a tin cup through the
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public shaming of gm, the labor can contract is coming up next year biggs car maker in mexico. and that's with uaw will go to public shame to mexico that's up and coming that site. >> so far on this program today not covered price of oil i think we should. where are we? 51 dollars a barrel that is a expresessed price is it not? that's why gas prices are literally tumbling we're down to 2 president 52 a gallon. that's natural average and we're down 49 straight day. get the latest inventory today and expecting a build again. >> more supply -- modestly but expecting another build. 19 states have gas station with prices below $2. >> 19 states. go ahead jonathon. >> and some of the weakest stocks have been oil stocks the the move from oil from its 52-week high to 5 week low was historic and look at some of the those they call them master limited partnerships. these are partnerships that trade often track oil and gas
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stocks many of those also at 52 week lows so you can say that depressed price but we used to think of 50 a barrel for oil, as the ceiling we used to say never give up a 50 now it is floor. that floor 3450eub broken. >> you are betraying your age -- i remember when oils was below 50 and a was the top -- i remember those days but a long, long time ago and that's a fact. >> it was before television. by the way, we did gas buddy has -- no he's not we have -- one gas station is in texas -- gas buddy found it for us a dollar 69 for regular. a buckies in denton texas look at that. i'm on my way. people are hanging on to cell phones much longer. and that means fewer people are trading in their old phones and upgrading to new one. so -- a l is now offering you more money if you trade in your old phones so i guess you get a better deal on the old one. is that work?
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>> i think it would. this is really about apple knowing that i personally just traded in my two phones me an my wife and two went hog wild at the apple store like couple of week before this announcement. >> is that right? [laughter] >> don't shed any tears for me i think of softer demand than they expected so you know it is a better deal for customers and hopefully to work. >> stock is up nicely up $2.50, 176 on apple as we speak i think the g20 meeting actually begins today president trump flying down to argentina or very soon. let's go around the block. are we going to get a -- any kind of positive announcement from the meeting of president xi and president trump any kind of positive announcement jonathon you first. >> i sure hope so. gm, obviously, in the news a lot this week stuart has talked about about tariffs costing them a billion dollars. one billion dollars u.s. steel the most expensive in the world excuse me because of the the
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tariffs so you know, president likes to think this is some kind of a game between him and president xi it is costing americans especially now around holidays real money i think we would all be happy to see these taxes. that's what tariffs are. taxes taking off backs of american kiewrls. >> a positive announcement from xi and trump yes or no -- >> definitely getting declaration of victory from the president that goes -- [laughter] i think president has seen the stock market wobble as people are concerned about the the tariffs and you know maybe he'll be looking for some sort of a compromise. >> you're a cynic nothing is more -- no. nothing. nothing substantial. i think yes. you think yes -- well done. so do i. some wording i don't to be a cynic like jack, but i think that we'll be a positive announcement because president always has a positive announcement i have to say good-bye to jonathan you're all right jonathon and jack -- so are you -- all right. gentlemen thank you, check the big board again because now we're up a molt ago we were up 200 points. now we're up 184.
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we'll take it. fed chair, jerome powell giving big speech on financial stability today is speaking in new york. could move the markets you're going to see it live right here on the fox business network starting at 12, noon today alexa in your car -- smart parking meetings tech is taking center stage at the l.a. autoshow. we'll take you there, later this morning. but migrants at southern border want to end all deportations, they want the new mexican government to help them. plenty of demands from the caravan leaders what do we make of that i call it hoodster but ice guy on the show today and ask him that same question we'll be right back. play the music. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know?
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well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
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kremlin that president trump will meet with vladimir putin at the g20 meeting this meeting between the two will take place on saturday. president trump is criticized russia putin after russia ships fired on and ceased ukrainian ships off coast of crimea but two will meet saturday in argentina. check the big board, just coming off the high of the day that was still up about 175 points that's about three quarters one percent. we have paypal's mobile payment service. it is called then no it lost a lot of money this year. in part due it fraud. with digital money transfer services because they are easily hacked by stolen credit cards into the system and then transfer money to their accomplices to hack accounts of existing then mo customers it was a real problem and losing 40 million in the first quarter. they've since put in steps that
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will -- slow down can't stop these entirely. but that in turn is upset customers who have had their ability to do things because they're trying to hold back the con art soys you know this dimmingal money transfer is wonderful because it is convenient it is easy. the problem is, it is convenient and a easy for the bad guys to get in there and steal money. >> precisely all right got it. thank you. i want to get become to economy. john economist with us now. all right john you saw the number in the third quarter of the year, we're growing at annualized rate of 3.5% i'm disappointed inthat's solid growth i think we're going to continue to see expansion of the economy going forward. into 2020 -- >> but that's not good enough for me 4% second quarter 3% third quarter, maybe the 2% range in the fourth quarter i don't like the down trend. >> you may not like it but those people that are worried about higher interest rates will like it. we want to have mod pest growth and in order that we prevent an
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overheeding of the economy that might send interest rates skyward and bring this recovery to a quick end. >> what did you -- you read something into this report today about profit. >> what happens in the second or third revision they include an estimate of pretax profits from current production. notice i say pretax profits in the third quarter, incredibly pretax profits are are up 10% year over year, if i focus just on nonfinancial companies that year to year increase is 15%. and again, that reduces the risk of any economic downturn over if near term. >> let me interrupt here year over increase that's not including benefits of the tax cut that's huge. smg >> that's it telling me they have positive macro repercussionings one of the reason ares why profits grew so rapidly is because a measure of business sales well, outpays
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rate of growth for employment costs. well here we are. we have a 3 7% unemployment rate yet we have employment cost under control. telling me that that unemployment rate can go significantly lower before it becomes an inflation risk problem. >> so are we going to get a santa claus rally on stock market? >> i think there's a good chance that indeed is going to happen a. you know profits are very much holding together. quite nicely -- with indications from jerome powell but a nice upit can by equity market through years end. >> that's a fine way to start a wednesday morning we'll take it. thank you very much indeed look at the market here's a fine way to start the day. we're up what about 180 points for dow industrials. up 100 tuesday, 350 monday. pretty good week so far. we've set it on this program, republicans seat in the midterms were lost, because the tax cut
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plan got rid of duction for state and local taxes next guest disagrees with that and betsy will make her case in a moment. s under care by focusing our mind on whatever's on yours. our new, hot, fresh breakfast will get you the readiest. holiday inn express. book now for at least 20% off during our annual sale.
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we're going to put on screen
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five high tax states where republicans lost a lot of seat. my los angeles is they lost those seats because of the gop plan, the trump tax cut plan which got rid of the deduction for state and local taxes. that's my opinion. that's why they think theys lost and lieutenant governor of new york betsy mccoy with us and she disagrees with you. >> that's right i have plenty of experience in a tax health state namely new york but fox exit poll show that these are not reasons that seat want. >> i say those really lost in five high tax states because of soul and tax cuts. why -- okay you disagree so why did they lose? >> i'll tell you because immigration and health care with the top issues in those exit polls and those seats changed largely because of one big lie and democrats big lie that republican would have abandon people are preexisting conditions it is a lie clearly that president's plan and
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congress is republican plan to reare obamacare protect people with preexisting conditions but they failed to convey that message so that was -- the major reason that those seats change across the country two million taxpayers less than 1% were with affected by this -- cap on salt deduction only 1% paid more. but here is the other big lie that swung the election stuart and it was a tax lie. the democrats vilified demagogued trump's tax plan calling it a give away to the rich. the irony is that the rich took it on the the chin. in fact, this tax plan is now more progressive than what we have before. the top 20% of taxpayers used to pay 83% of the taxes they now pay 87%. the top 1% used to pay and they pay 43%. so it is clobbering pole at the and turn the the election it was
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not major issue in the exit poms. >> what worked for the democrats was this idea is a give away to the rich. a give away to the corporations and big business did get the vast majority not the vast majority but a big chunk of the tax cuts. they got it. >> that is true. hay did get it but fact is, it is ironic that the nation did not respond more powerfully to the booming economy which had is directly related to those tax cuts, stuart. >> got it but i will i want out new jersey has only 1 republican congressperson left what's it. there's only one in the entire state and in the state -- >> and right. but in state of new jersey, 10% of households will pay more in tax. to the feds because of the tax cuts. >> and 6.3% of taxpayers overall in the nation will pay more. right, only 1% because of the cap on salt but fact is it didn't swing election because
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people told exit pollster that was not the issue. >> on frill 16th i'll disagree with you again. betsy thanks. >> just the facts sir. >> a season of giving charities are expecting a drop in giving this year. now why would that be? >> well less people itemizing because tax law increased and actually doubled standard deduction to 12,000 for single filers 24,000 for married couples. look at this number. 46 and a half million people itemize in 2017. now expected to joint community taxation 18 million that means a big hit. thus people taking charitable -- donations. and worried about that. >> i see logic i see that got it. thanks. next case, government out with its report on the future impact of climate change. it forecast a 10% cut in economic growth by the end of this century. it is a climate scare. another one, my take on that, next.
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stuart: almost 10:00 here on the east coast here in new york city. it is 7:00 in california, washington, oregon. right now, we have the markets on a rally. we're up about 160 points for the dow. that puts us at 24,900. just coming to us, we have a report from the federal reserve on financial stability. i think we have the headlines from it. ashley: we do. the headlines are positive. the nation's largest banks say the fed are capitalized strongly. credit risk of outstanding mortgage debt is generally solid. that is all good. the quality of bank loans appears to be strong. a couple of things the fed is flagging. risks to the u.s. financial system include "brexit," the on
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going italian budget drama. the escalation in trade tensions. things that the fed flagged could impact stability. overall compared to where we were prior to the pence al crisis the system is looking strong says the fed. stuart: we have the headlines. we have brandenburg chief market strategist. this is not what fed chair jerome powell will say. this is on financial stability. what do you make of the headlines. they sound positive to me? >> i think standard boilerplate stuff. u.s. financial system much healthier this side of financial crisis. higher capitalization of the banks. this is good stuff. stuart: banks strong, good credit on borrowers. bank loans -- ashley: does say, one other note, does say among businesses debt levels are at historical highs. >> we know that sort of thing a lot of corporations have been buying back the own stock issuing bonds to do so.
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changing capital structure of corporate america. stuart: hold on a second, mark, i have more for you later. i want to tell our audience, fox business will carry the chief of fed chair jerome powell. he is speaking less than two hours. speaking at the economic club of new york. you will see it live on this network. as for the big board right now not much of a response to the financial stability headlines. we're still up 171 points. that is where we are now. by the way we got new home sales. >> liz: not good, down 8.9% year-over-year. 544,000 annualized. they were looking for a much bigger number for that, 575-k. all regions down for new home sales. northeast, 18.5% plunge in new home sales. prices are hanging in at 309-k for a new home. stuart: sluggish housing market. liz: fifth straight month of
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plunges in new home sales. stuart: no visible reaction to the stock market. liz: yes. stuart: got it. now this, last week the government issued a 1600 page report on future impact of, climate change. the conclusion? we're going to suffer. the report forecasts a 10% cut in economic growth by the end of the century. oh that was dramatic headline a climate scare, another climate scare. i will not take side here. this is not a climate debate but i will quote holman jenkins in the qsj today. he read the report. he has done the work. the rest of the media apparently did not. jenkins points out to arrive at that damning scary conclusion, government researchers made all kinds of assumptions. for example, there will be rapid population growth for the rest of the century. really? that is not what demographers forecast. there is the assumption that technological change will be minimal. really?
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science will stand still in the face of the climate challenge? here is another one. improvements in energy efficiency, will be, minimal. again, really? one more, it is assumed that the world is going to take more carbon out out of the ground ine nexentry that is known to be there. or as the report puts it, extraction of large amounts of unconventional hydrocarbon resources well beyond presently extractible reserves. sorry, folks that is how these reports are written. my point here is that the climate report is a scare. that is what the media picked up on. it is not so scary if you check the assumptions on which the scare is based. one last point. and for this, we are indebted to "investors business daily.." the official nasa temperature figures show that from february 16 to february 2018, quote, global average temperatures dropped a half degree sill sy just.
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that is the -- celsius. a biggest two year drop in half a century. a stunner totally ignored by the media. the second hour of "varney & company" is about to begin. ♪ now this, house democrats picking their leaders today. they meet at this hour as a matter of fact. pete hegseth with us, "fox & friends weekend" co-host. no doubt that nancy pelosi is the next speaker. >> i think no doubt. the party donors, the party bosses, the screws are being put to the junior members, if they want committee seats, legislation pushed she is promising the world. she will have a contest in the caucus vote which will happen, but when it comes to the floor i think she will be confirmed as speaker. i don't understand how if you're a member of congress ran if you are not voting for nancy pelosi, your first action is to vote for
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nancy pelosi. stuart: assuming they do. >> they may not. stuart: the important part of this vote how many people will not support nancy pelosi. >> right now is at hairy edge, if those democrats didn't vote for her, she would not have the vote for her to be speaker. i will deliver you 55, you got them for me. stuart: he wants her to be speaker not out of the question republicans will be asked to vote for nancy pelosi in house in january. >> if you're conservative republican that you want to vote for nancy pelosi you have to love it. fun stuff. stuart: get back to my editorial at top of the hour, otherwise known as a rant on climate change. i say the report on the government was a scare tactic. and that if you look at the assumptions on which the report was built, that conclusion of serious damage to the economy at the end of the century, i don't think it stands up. >> no, it doesn't stand you.
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if you read similar reports of 30 or 40 years ago, this studio would be underwater. the armageddon predicted by climate scientists for the last 50 years is wrong, wrong, and wrong. they ratchet up the headlines, make it more extreme, last point about global temperatures going down. they call it for climate change. for 50 years they couldn't figure out if the earth was warming or cooling. climate change is religion for the left and scientists that enable that view they will do anything possible, including, your point about innovation was such a great one. like the cbo never factors in growth. they only take in two other factors. science, how can we not factor in innovation and technology at this point? humans improved their position. look where we are today compared to where we were 15 years ago. this cell phone has more technology in this cell phone than on the apollo 13 that went to the moon. literally a fact. so it is foolishness and your assumption points it out. stuart: so you agree with me?
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>> i salute you, sir. well-done. ashley: he will be back. >> i know how to get invited back. stuart: that is good stuff. thanks very much, pete. thank you very much. let's get back to the market to check it please. we're up about 128 points. maybe there was pushback after the report on new home sales. probably hurt a little bit. marc chandler is still with us. i want to ask you about a santa claus rally. do you see one? >> we tested lows last month. it held. the scare in the market. we've been waiting for a long time for the correction. we had it. i think people are putting money back in the stock market. stuart: did you see the report on gdp today? one of our economist guys dug into it, found 10% year-over-year gain in pretax profits. you're up 10% on profits without help from the tax cuts. >> this is important part.
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second revision of the gdp includes first time look at corporate profits, stronger than people expected. that is also giving a boost to the stock market here. stuart: let's suppose, well, president trump will meet with china's leader xi xinping. takes place tomorrow. >> saturday night for dinner. stuart: saturday night for dinner, thank you, marc. do you expect any kind of positive statement to come out of meeting? >> here is what i think happens, under bush the lesser, under obama, we had regular talks with the chinese. trump canceled those. i think those come back on, regular talks. whether we get the progress we want on trade is a different story. i think the chinese are reluctant to give recessions u.s. wants. giving up made in china 2025 which is the chinese version of america first. stuart: but our president has the leverage. we're doing okay. china is hurting. >> you're right the fiscal stimulus we got. the tax cuts, spending increases gave us a little bit of cushion
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to absorb the stocks but what happens next year when the fiscal stimulus wears off, when trump got votes in the midwest, those farmers are getting hurt. stuart: are you scottish? >> based in cincinnati. a lot of scottish influence in illinois. stuart: i should have known. marc, you're all right. check the big board. we're coming back a bit. we were up 200. we were up 120. now we're up 144 points. we'll take it. check apple and microsoft, vying for the world's most valuable company. they're running neck-and-neck as we speak. look at facebook, apple and netflix. these three companies have come down sharply, facebook and netflix down sharply in the month of november. not much of a bounceback so far. amazon will sell software that mines patient medical
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records for information. getting into another area here. that's amazon for you. the stock is up 32 bucks at 1613. the price of oil hovering at $51 a barrel. preciously close to 50 even. how about that? we get a read how much oil we have in stock at 10:30 this morning that could make a difference in that price. president trump said he would be willing quote, totally willing to shut down the government over border wall funding as members of the caravan are making demands. i will talk to the former head of i.c.e. about that. solid growth in the economy in the summer quarter. we'll talk to a former ceo who says it's trump who kicked the economy into high gear. plus the gaming revolution, here is a big number for you, more than 200 million people are playing the game "fortnite" worldwide. that is 2/3 of the population of the united states on a global
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basis. we'll have the story. you're watching the second hour of "varney & company." ♪ ♪ when heartburn hits... fight back fast with tums smoothies. it starts dissolving the instant it touches your tongue... and neutralizes stomach acid at the source. ♪ tum tum tum tum... smoothies... only from tums
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stuart: president trump tweet just in about general motors. here it is. the reason that the small truck business in the u.s. is such a go-to favorite is that for many years tariffs of 25% have been put on small trucks coming into our country. it is called the chicken tax. if we did that with cars coming in, many more cars would be built here. and, gm would not be closing their plants in ohio, michigan and maryland. get smart, congress. also the countries that sinned us cars have taken advantage of the u.s. for decades. the president has great power on issue. because of the gm event it is
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being studied now. piling on pressure from the president. let's get to the caravan of migrants. they are arriving at our southern border. by the way they have given out a list of demands, from the caravan leaders, demands, including end deportations. speed up the asylum process. that is just two of these demands. tom homan with us, former acting i.c.e. director. happy birthday, tom. >> thank you. i'm a big 35 today. stuart: me too, actually. what do you make of demands from the caravan leaders? i call it a lot of nerve. what say you? >> it's a joke. these people, they want to come to this country claim asylum. they have certainly the right to due process, they will not make demands of this country. given them due process, show up at port of entry their case will be heard. they can't make demands. that is ridiculous. stuart: seems to my the president's policy, they shall not come into the country is
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working. i understand some of the people in the caravan are turning around, going back home. >> president threw down the gauntlet like we should have. a great president taking border security -- he is taking border security seriously and sovereignty of this country seriously. the president realizes we need to take a strong message f we don't, go back to catch and release if we don't have a strong response the next caravan will arrive shortly. there will be more caravans forming this is the time to act, show the rest of the world we're a nation of laws, and we'll take those laws seriously. stuart: we have a problem on the other side of the border. looks to me like there is a tent city, squalid tent city emerging. that is a problem for mexico but, we're going to have people saying we're inhuman, we americans are inhuman for allowing that on our southern border? >> we're the most giving country in the planet. people want to say we're inhumane. look at our history. we welcome more refugees into the united states than every
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other country in the world combined. so we're a very giving country. we'll give everyone of the folks in the caravan we'll give them due process. they have to wait in line. they have to be interviewed. they have to prove their case. we have the right to decide who comes into the country. we have the right to make sure we know who the people are and are they a danger to this country. most importantly do they actually qualify for political asylum. you look at current data for central americans, 90% of these folks will lose their case because they don't qualify for political asylum. finding a job, getting a better job, rejoining family members in the united states doesn't qualify. they should understand that. stuart: by the way illegal immigration to america, reached a low point, a loy level in 2016. how do you explain that? >> president trump. i mean his first year of being president we had a 40-year low. 45-year low. 45-year low in illegal immigration. that is not a coincidence. that is a four decade low. i've been doing this job 34
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years. 45-year low on the reason of presidency. the reason numbers are ticking up. caravan figured out what the loopholes are. congress fails to close the roop holes. why are caravans here, more caravans coming? congress failed the american people. they put their political ambitions, especially democrats, their political ambitions, hatred for this president, national security ahead of public safety. that is stone cold fact, anybody studies issue will realize that. the dems do not want this president to have win on border issues. 45-year low, they don't want to hear that they don't want a win for the american people. they're worried more about the political future of the democratic party. stuart: tom homan thank you for coming on your birthday. >> thanks for having me, stuart. stuart: you're all right. thank you very much indeed, sir. coming up, president trump days away from meeting with china's president xi. he is keeping up a very hard-line on trade. brian kilmeade and i have had arguments about this.
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he will join me shortly. more "varney" after this. ♪
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stuart: the jelly and jam people at smucker did not give a rosy forecast and the stock is down 6%. >> no lower profit at tiffany. they will invest more in their stores. look at it go down. a-10% loss for the stock price of tiffany. then we have this. the beauty industry changing because of celebrities and social media. you have got to tell me about this. liz: there is a big shake-up in the beauty and makeup industry. it's a 52 billion-dollar industry. going beyond the kardashians.
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these are the independent outfits that are selling at places like ulta. cody, p&g, cover girl they sell at drugstores, these independent makeup beauty shops selling online and touting their wares on instagram and social media. it's a big, big shake-up. stuart: the ulta stock has taken off. i asked what is ulta. i found out. ashley: now you know. stuart: straight up. next case, amazon, they are getting into the health care industry even more i should say. they're starting to sell software that mines patient medical records for information. so, ash, a, where are they getting information and b, what are they doing with it? ashley: the information already exists. it can read digitized patient records, other clinical notes, analyze them, pluck out the key elements, data points and then provide those to health care
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providers. it does a lot of the work for the doctors and, they developed software that creates algorithms that can do that. it's a big business, 7 billion a year in this part of the health sector alone. stuart: so long as the information remains within the health care business and not out there. ashley: it is correct. it is for the health industry to help them streamline and analyze your individual data. stuart: investors like it. the stock is up 32 bucks. ashley: very lucrative area of business for amazon. stuart: in it again. there you go. check the price of oil now because in a couple of minutes we'll give you the latest read how much oil we've got in storage. okay. that is the supply side of the price versus the supply equation here. right now, we're up $51 per barrel. let's see what the price is after we get those numbers. do remember, please i'm on "fox nation" today. i will talk to howie kurtz, media guy about those new rules
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at press briefings. 1:30 today on "fox nation." we'll be back. ♪
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♪ liz: finally. stuart: you have to crank this up. if you listen at home, up the volume. get your remote. press the volume clicker. hear the sound. sergeant pepper. what an album. i better check -- dow industrials are up 120 points. that is half a percentage point. quickly let's check the big tech
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names, mixed bag names. facebook down a buck 90 at 133. amazon holding on to a very nice gain, nearly 30 bucks higher. apple is up. alphabet is down three bucks. microsoft down 1.57 to the up side. what we're waiting for are the numbers on oil and how much oil we have in america on storage. i think we got the number. ashley: we are waiting. we are waiting. stuart: what we're expecting -- ashley: up 3.5 million. we were only expecting a build of 769,000. stuart: oh, okay. ashley: so again, i think this is week 10 in a row that we continue to build up those inventories the amount of crude we have in stock. >> that means the supply of oil is very strong in the united states of america. ashley: we're swimming in it. liz: will it break toward 40? stuart: extra 3 1/2 million barrels in storage in the latest period. show me the price of oil. where are we? got it.
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under 51. tough figure that would happen. when there is more and more supply the price tends to go down. that has got it. come on in rob funnel. a long name but i got there. rob, your reading on this increase in oil in storage. is it going to push the price down, maybe below 50 bucks a barrel? what do you think? >> well, so, here's where we're at, stuart. basically over the last several months the market has been oversupplied, right? opec in particular raised production in anticipation of iranian exports going to zero. when that didn't happen it sent oil markets into oversupply situation. so inventories built. if inventories continue to build we'll see pressure on oil prices and likely see oil prices go down from here. we have a opec meeting that could rectify this situation. stuart: bottom line the future
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price of oil depends heavily on the opec meeting next week and whether or not they really do cut production. i think they will because think don't want 50-dollar oil, they want 60-dollar oil. what say you? >> we would agree with you at tortoise 100%, stuart. we think the key indicators to watch are global oil inventories, and they have been below average for last seven months but because of the oversupplied oil market lately we've gone from below average to above average. that indicates a supply glut. how opec fixes it, by cutting production a million 1/2 barrels a day. if they do it, that balances the market which returns oil prices to $60 a barrel which is both a pretty good price for both the consumers and producers. stuart: your argument is premised on two things, number one, that the market believes the market will cut production and number two, we in america,
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the frackers won't keep pouring oil into the storage tanks, right? >> it does but there is a history. first of all if you look at opec, they have cut production in the past. they just recently boosted production like i said in anticipation of iranian exports going to zero. so i think, the market is a little more comfortable that opec will actually cut production. the other point important to understand, u.s. oil and gas companies will be more disciplined. if oil prices stay where they are, if drop to $50 a barrel or go to who as you're there will be a lot of oil rigs not outized. they will cut number of wells they drill. that will cut production next year in 2019. that will help production and boost prices. we wail have less storage being built over next couple years. stuart: i understand your arguement. i agree with it but i want to
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see cheap gas, i want to pay buck 99 somewhere. rob thummel. we appreciate it. >> thank you. stuart: elon musks boring company, the tunneling company, abandoned plans to build that massive tunnel under los angeles. wait a minute? they abandoned it? i thought they built it. liz: they were building it. under western l.a. local groups because they excepted the tunnel from environmental review. however, all is not lost. the boring company, elon musk's tunneling company will continue to build a tunnel that will connect dodger stadium to a subway station 3 1/2 miles away. there is more boring tunnel activity with elon musk in l.a. that first one that has been abandoneds was going under the 405 freeway and another big boulevard. there were concerns about it. stuart: that is not going to happen. liz: that is not going to happen. but the hawthorne city one is still underway too.
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elon musk continues to build tunnels underneath the environs of l.a. stuart: not that particular one. i got it. serious subject here, the boeing crash, the jet that crashed in indonesia last month. they got the black box but it shows the pilots have to fight literally to save the plane almost from the moment that it took off. >> it was literally a fatal tug-of-war between man and machine with the nose of this plane constantly wanting to move down. the flight lasted 11 inches. the nose went up and down over two dozen times before the plane eventually crashed at 450 miles per hour into the ocean killing all 189 people on board. the pilots were simply unable to gain control. the indonesia officials initially believed a censor on the outside of the plane was providing incorrect information to the computer system in the cockpit and forcing that nose to head down. boeing is not saying anything. they're saying we need to let
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this investigation play out. they have not yet found the cockpit voice recorder as well which could also provide some interesting insight into what happened. needless to say this is a big problem from boeing. there is continued to believe that this new system within the new37 max has a problem. stuart: that is a problem for the company. president trump is in a standoff with china's leader xi xinping. they meet on saturday for dinner at night actually. now president trump consistently taken a very hard-line on china trade. come on in brian kilmeade, host of the "brian kilmeade show" on the radio. brian, you want president trump to take a hard-line. you approve of that hard-line, right? but i suspect that it's a negotiating tactic and that you will get some kind of nice word at the end of this meeting that satisfies everybody. what say you? >> couple of things, stuart. i want a better deal for generations. i don't even want it for the next year or the next cycle or
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president's election, i couldn't care less. i just want a reconfiguration of all the complaints we've heard about from the mid 1990s. with the emergence of china, we hear about intellectual property theft and dumping and this battle with this belt program, this road and belt program where they lend people money. build up their infrastructure. they manipulate policies in places like pakistan and brazil. all this stuff has to stuff. let alone the military build-up. guess who is on board? technically if it wasn't president trump democrats want to be tougher on china. the european union wants to be tougher on china. this president is the first president to get tougher on china to throw tariffs at whole system. the whole world is looking, watching waiting for something to happen. i doesn't want a quick deal, stuart. there are other interesting things taking place, within the administration and mnuchin and kudlow saying cut a deal. there is robert lighthizer says
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i've been down this road before, let me lead. we have to get a good deal. i don't think china is ready yet for a deal. i'm very curious to see were the president stands and who he will listen to. stuart: i'm curious what announcement they make after dinner saturday night. will it be smiling and feeling but a lot will be read into the communique. president trump knows how to grab the headlines. in the past few days he made headlines on general motors. he went after them. he rallied in mississippi for cindy hyde-smith and he won. he said he would have a government shutdown over the border wall. it is the trump show. >> that is before we got the job. now everything he says impacts our wallet, our pocketbook and our security. so you can't look away. you could choose to look away.
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but that is something we don't understand because we're into the news and global impact, national impact, local impact. with everyone of those statements it affects, it affects how we live. so now we have to pay attention. he does this other thing. he actually answers the question directly. you don't need a source within the white house who tells everyone how president trump is thinking. when he invites "the washington post" in, he answers the question. before he hops on marine one he answers your question. by the way he also vents on twitter and to you, to your face. so that's what's fascinating. i think a show looks as if it is an act. my sense the show is wrong. it is called, it is called your reality. reality of america right now by the man in charge and people around him. and the whole world can't get enough of it. by the way a lot of people who take on the president are struggling. angela merkel is just about out of a job. macron is 26% approval rating. vladmir putin has never been as unpopular as he is right now in
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russia. you have other world leaders looking now, who used to look down on president trump wondering i will take that 45% approval rating right now. stuart: i think you're right, brian. the trump show rolls on. brian kilmeade. thank you, brian. got you. >> 1- stuart: that was brian. read on economy, 3.5% growth annualized that is in the third quarter of the year. we'll talk to someone who says it is all about trump's growth agenda coming up. president trump threatens to cut off all gm subsidies after announcing plant closures. we'll talk to state treasurer of ohio. one of the states primarily affected. that is in our next hour. more "varney" coming up. ♪ seminole. had had what matters to you?
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step up to the stage here. feeling good about that? let's see- most of you say lower a1c. but only a few of you are thinking about your heart. fact is, even though it helps to manage a1c, type 2 diabetes still increases your risk of a fatal heart attack or stroke. jardiance is the first type 2 diabetes pill with a lifesaving cardiovascular benefit for adults who have type 2 diabetes and heart disease. jardiance significantly reduces the risk of dying from a cardiovascular event... ...and lowers a1c, with diet and exercise. let's give it another try. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. do not take jardiance if you are on dialysis
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or have severe kidney problems. other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. so-what do you think? well i'm definitely thinking differently than i was yesterday. ask your doctor about jardiance- and get to the heart of what matters. ♪ ashley: in the last hour herman cain told us gm's decision to cut thousands of workers is a long-term mistake. take a listen. >> in the short term they may be making the right move but we don't know what the p&l looks like nor do we know how quickly they're going to cut these costs. they could be trying to achieve a profit goal for this year next year which is why, maybe, they did this.
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however, definitely no in the best interests of the stockholder long term and here's why. we have the best business climate in the world. we have the hottest economy in the world. we also have some of the best, most productive workers in the world. so long term i don't think this is a good decision. ♪ [speaking in italian] ...i just got my ancestrydna results: 74% italian. and i found out that i'm from the big toe of that sexy italian boot! calabria. it even shows the migration path from south italia all the way to exotico new jersey! so this holiday season it's ancestrydna per tutti! order your kit now at ancestry.com
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stuart: we've got a triple-digit gain. we're up 125 points. that is about half percentage point. 24,800 is the level. we have way fair, if you know them that is online furniture and home goods retailer. they reported a whopping 58% increase of sales from black friday through cyber monday. the stock is up 11%. look at burlington stores. better sales. burlington is a discounter. sales go up, the stock goes up. 7, nearly 8% higher for burlington. the economy, yes, grew at annualized rate at 3 1/2% in the third quarter. i have a headline from "the wall street journal." look at this, trump kicked the sluggish economy into high gear. obama wants credit for faster growth. compare obama's last 21 months to trump's first. the author of that headline joins us now. andy puzder, former cke restaurants ceo. andy, your story is really that this is the trump growth economy
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and it has got nothing to do with president obama. is that where you're coming from? >> absolutely. as you noted, if you compare the end of the obama presidency with the beginning of the trump presidency, the number of people working is up about 36%. the number of people working full time is up about 47%. weekly earnings are up about 40%. if you look since the tax cuts, they're up about 76%. that alone would be enough for an op-ed but the number that really blue me away, caused me to write this article was job openings. under the last 21 months with president up obama, there were 857, 8, 5, 7, job openings under president trump. under obama, 75 a month. this is economic sea change based on what you and i have been talking about for years. smaller government, lower taxes, reduced regulation and domestic
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energy. that is really driving this economic surge. it is not obama's economic surge in any respect. stuart: but is the surge, and i agree with you, we got a surge and it is president trump's surge, is it running out of steam? i ask this because second quarter, 4% growth. third quarter, 3% growth. fourth quarter, they're looking, atlanta fed is looking at 2% growth. that is a downtrend. is it running out of steam? >> projecting what happens in the fourth quarter, the atlanta fed does a very good job, but they're never right until the very end. hold off on fourth quarter. if you look this year, so far this year we're up 3.3%. if you look at the last six months, we're up about 3.9%, 4.2, plus 3.5 which was confirmed this morning. i was concerned that the number for third quarter might come down because of the hurricanes that we had. it didn't. it stayed at 3.5. it was based on business investment.
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they expanded inventory. they invested in plants and equipment. that is what liberals have been saying has been missing. that's what held it at 3.5 in the third quarter. i think we're seeing very, very solid growth. again, fourth quarter we'll just have to wait to see what it is. even if it is the 2.8% that the atlanta fed is projecting we'll have first 3% gdp year since 2005. we're seeing a lot of progress. i agree with you, it should be more. i agree it will be higher. even if what they're saying, still very solid. stuart: 20 seconds all i got. recession next year? >> no. there is no recession next year. there are people claiming that, claiming there was sugar high from the tax cuts. they're exactly the same people that were claiming the tax cuts were armageddon and gut punch to middle class. these people have no shame. they claim the tax cuts kill the economy, but when they don't
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they claim they're only sugar high. stuart: go get them, andy. thank you for joining us. >> my pleasure. stuart: we have been covering the gaming revolution here on "varney." i have a big number for you related to that look at that, 200 million people around the world have signed up to play the hot new game, "fortnite." 200 million. we're talking gaming next. ♪ i am a family man.
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i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome.
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stuart: big announcement from discovery. check the stock. it is up. they're partnering with, tiger woods, who will give weekly golf instructional videos. they will air on discovery's golf tv streaming service. stock's up two bucks. got it. now this, videogame "fortnite" has 200 million worldwide players. there are 300 million people in america. 2/3 of the american population, that is the equivalent, 200 million worldwide. there are reports that kids are sew addicted to the game they have to go to rehab. that is another story we'll deal with. here is captain rob steinberg, gamer world news host. "fortnite," it is made by epic games.
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is that the most popular video game in the world at this moment? >> i would make the argument, yeah, i think "fortnite" is probably the most popular game in the world. you just mentioned they have 200 million registered users. that is 200 million different accounts that they have currently registered to play the game which is incredibly massive. you're right. it would be equivalent of 2/3 of the united states. stuart: but 200 million accounts means than you have more than 200 million players in all probability. >> it is actually the opposite. so they have roughly 80 million players that are playing on a monthly basis. this is 200 million accounts on the gail as a whole. you have to remember "fortnite" is game can be played on multiple platforms even on your phone. there is a lot of situations where somebody might have multiple accounts. so that 200 million is made up of roughly 80 million players that have over 200 million accounts. stuart: it is made by epic games. probably the most popular game
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in the world at the moment. as you look across the spectrum of these videogames are most of them created by americans? >> i would say that it is sort of a tossup. there is a lot of really great companies outside of america making a ton of really great games. there are companies here in america making a much of really great games. riot games with "league of legends" was made in america. it is mostly owned by tencent which is chinese company if i'm not mistaken. blizzard which makes "call of duty" is here in the united states. stuart: what about kids going to rehab because they can't stop playing "fortnite." what's that? >> that is probably a discussion stuart, we have roughly he have five years. every time a major game comes around we talk about gaming addiction. it is important to recognize that the american medical association and american psychiatric association does not recognize gaming addiction as an
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addiction. the world health organization does. it is i believe a very serious problem and actually a significant issue. but it is important to understand that just because you're kids play as ton of for the knight. doesn't mean the kid is addicted. you have to see the symptoms of addiction, causes somebody to have an addiction. are they canceling plans to play the game more? are they lying about amount of time they're playing the game? do they feel guilt when they're not playing the game? we don't want toe overanalyze whether people are addicted to play games. stuart: in my day, it was addiction to television. generational thing. >> exactly. stuart: rob stipe berg, thanks for joining us. we'll see you soon. >> thank you very much. have a great day. stuart: president trump going after gm. there are two sides to this story. i will way both of those two sides out for you.
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my take next. ♪ snacking can mean that pieces get stuck under mike's denture. but super poligrip gives him a tight seal. to help block out food particles. so he can enjoy the game. super poligrip. each day our planet awakens but with opportunity comes risk. i'm .. banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances.
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stuart: in society. general motors planned layoffs and plant closures. gm is defending its business ventures. on the other side is president trump year he's not happy with gm from especially the job cuts in ohio that helped him win the oval office. he's threatening to cut subsidies. it's a fight that pits political interest against financial interests feared starr with gm side of the argument. the chevy crew the chevy cruz, chevy and paula and the bolts are not selling well, so they want to close a plant that makes them. doing that was a $4.6 billion every year.
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gm altaba money into more profitable truck and suv production, which is now 75% of sales. they've got to stay competitive. they've got a card. president trump sees it very differently. 10 years ago tax years about general motors. the government poured in billions. now they're making money. show some gratitude and i doubt you. we will look at ending subsidies. of course the president is particularly upset the gm is cutting thousands of jobs in ohio. candidate trump had pledged to support manufacturing in that state. so here's the argument. should general motors cut jobs when the making big money and owes its survival to taxpayers and should the president be threatening a private enterprise company that hurts the political base. here's my answer. general motors has an obligation to protect its business and its shareholders. it is doing the right thing as
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it sees fit. president trump has every right to jawbone gm. we save them. politically he's doing the right thing. i don't normally sit on the fence, but on this i see merit on both sides. it is a fight and it's nowhere near over. third hour of "varney & company." president trump is tweeting about gm this morning. here is to eat rather lengthy. the reason that the small chart business in the u.s. is such a go to favorite is that for many years terrorists have been put on small trucks coming into our country. it is called the chicken tax. if we did that with cars coming in, and many more cars would be built here in gm would not be closing their plants in ohio, michigan and maryland. get smart, congress. the countries that send those
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cars have taken advantage of the u.s. for decades. the president has great power on this issue because of the gm event it is being studied now. look who's here. the state treasurer of the great state of ohio, josh mandel here with us. welcome to the program. are you mad at gm? >> we are. we're angry. we are sad for the people. this is a very hard-hit part of ohio and america. this is the corridor between youngstown and pittsburgh the children the steel companies went away in the 70s and 80s. these are good people. good midwest, modest people. i hope as soon as possible president trump gets to youngstown, looks the workers and eye and and tells them he will fight for their jobs. he should continue on to detroit and the air and executive's office in detroit and be aggressive. >> is the state treasurer of
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ohio separate for many jawboning pressure the president can put on gm, what can you do? >> i'm doing it right now asking the president to get to ohio to talk to the workers. >> you can take action yourself to punish gm estate -- >> i'm doing everything i can to fight for those people in fight for their jobs. when you think of the heart of america, grady hard-working people that youngstown area we call the mahoney valley epitomizes the heart of america. stuart: do you agree with the other side of the home which is general motors defending its financial interest in looking out for shareholders. you understand that's what they're doing. >> remember, they were bailed out by the taxpayers. it's important to understand the taxpayers of americans said bail us out. the tax year is obliged and now gm is turning around and killing
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these jobs to taxpayers in ohio. sure into the political side of things. don't do it. one other thing. you're going to allow the people in ohio to pay their taxes with bitcoin. i know you're the first in the nation to do this. i don't get it. how do you price it because it changes all the time. if i pay my prices do you value to $4000 according, what happens when i give you the coin and it drops to $3000 in value. you lose. >> great question. the state of ohio will now hold crypto currency. the way it will work if the taxpayer will use their crypto currency and take their eye funds and qr code. the crypto currency will then be transferred to a payment processor down in atlanta and the money will be converted into u.s. dollars in the dollars will be transferred to the state of ohio. stuart: why you're doing this? are you true believers in
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crypto? >> i am a crypto in d.c. is spearheading it's more important to project to the rest of america that we are a leader in blocked gene technology and if you're a software developer, entrepreneur in america, come to ohio. we are open for business in innovative and wear the pointy tip of the spear when it comes to block chain technology. sure into interesting stuff. thank you for joining us. check the big lord gone back up a bit more up 160-point in about two thirds of the dow 30 and the green that means they are out. let me show you apple and microsoft as well. a horse race going on to see which is the most valuable company in the world. they are literally mackinac at around $825 billion apiece. about a billion dollars either side. it's a battle which is the most valuable company in the world. the overall market is chief
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investment officer, steve foale michael. your name is michael. your big point is that profits are very strong and that will support the market next year, correct? that's correct. 20% earnings growth in 2018 made for the balance of the year. looking forward 9% to 10% earnings growth. ee states where they are. that is the return of the market. three into that's a really good year. very, very good, even if it's coming off a 20% gain this year. i'm sure you saw or dug into the gdp report this morning which showed the pretax profits in the last year are up 10%. that is a huge number because it doesn't take any account of all the gains for tax cuts. stuart: that's right. that's when analysis we did is to look back and say look look
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at it before taxes with the 8% to 10% rate. stuart: can you give us any levels we might reach on the dow and s&p for next year? >> i am allowed to do that. it's a dangerous game. we are starting our process in the thick of planning for 2019. we are seeing a return in the u.s. equity market. by my calculations looking at 27,000 to 20,000 on the dow. stuart: he's on videotape. 27,000 to 20,001 at that level on the down next year. that will be roughly 10% from where we are now. any particular area that's going to do well? >> think of it as the need for the market to be more diverse. we've had big tech dominating the market. it's obviously corrected. what we see is return sort of
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broaden out and we think that will continue looking forward. stuart: is a pleasure having you on the show. we just love that. mr. o'keefe, if you're not careful you will be back. thank you, sir. let's get to amazon. the amazon story of the day. they are starting software that mines patient medical records for information. doctors and hospitals could use the information. amazon says it could use treatment and cut costs. stocks up $25 back above the 1600 level. other tech companies getting into the health field as well. apple talking with the veterans administration about using software to allow that to transfer their health records to eye funds. apple slightly higher today. google also higher in a hospital executive to oversee their health care initiatives in this. google's chief will testify before the house judiciary committee on social media
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practices december the fifth and that is a week from now. that stock is down. audio moving $50 a barrel. the latest read on oil that is an extra three points 5 million barrels in the ridge. that means the supply of oil is very plentiful in america. down goes the price. fifty dollars a barrel and down goes the price of gasoline. the national average is now 252 down 49 straight days. don't you love it. you'll love this. the cheapest gas in the nation. that is their gas station in texas. it has gas for $1.59 a gallon. wait there's more. there are 19 states and d.c. or united states where gases under $2 a gallon. small business up to miss them
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at historic highs. there is a problem. some companies having trouble finding workers to fill the jobs available. in an interview, president trump once again threatening to shut down the government over the border wall. remember, congress has 90 days to send the president a bill that would include 5 billion for the wall. fox news confirmed with the kremlin that president kremlin that president trump will meet vladimir putin and the g20 summit. the meeting takes place saturday. president trump is criticized putin as they fired and seize ukrainian ships off the coast of crimea. the president will also meet china xi jinping hoping to hammer out a trade deal or at least get something positive on the table. national economic council larry kudlow remains optimistic about that. it looks like the market are optimistic, too. this is the high of the day. up nearly 200. stay with us. the third hour of "varney"
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ahead. hi, i'm joan lunden.
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stuart: they just keep rolling in. tweets from president trump. steel dynamics, i believe that the name of the company announced that it will build a brand-new 3 million-ton steel mill and the southwest bill will create six are in good u.s. paying jobs. kill jobs come back to america just like i predicted. congratulations steel dynamics. politics, house democrats meeting behind closed doors to vote on leadership post. a dozen democrats want somebody other than nancy pelosi to be speaker but she is still at acted to win. the full house vote in january. today's vote, watch out for how many people voted against nancy pelosi. new numbers show small-business
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optimism remained near record highs near it however, some companies are having enough trouble finding workers. the president and ceo of the nfib is with us. how big of a problem is that? which kind of jobs can't you feel? >> thank you for having me, stuart. nfib has been in the small business optimism index for 45 years. over the last two years, 23 months, and there has a stretch of amazingly high numbers. we've set records for optimism, hit records for inventory. what has emerged as the single most important business problem for small business owners is finding qualified workers are having no applicants for jobs. this is a serious problem for american small-business owners. stuart: defending it to start raising wages? >> we are raising wages. at last report shows we have record competition increases.
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this is very good news for workers. we know right now with the unemployment rate at its historic low number that there's not enough bodies to fill the jobs that are open. stuart: would you like to see more immigrants? >> we need to bring people back into the labor force participation that dropped out. stuart: how do you do that? >> raising conversations. wages are high enough. that's a conversation increases are designed to do. bremer people into the labor force. which area. >> nfib did a survey on this survey to find out what precisely is not qualified about the workers applying for these jobs.
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it was a little bit unexpected for me. only about 25% of the aspect of being unqualified had to do with skills or needing to be retrained in something. about 75% of it had to do with things like attitude, conduct, things like that. things that would require to go back to school. stuart: your very believed. that is the most important point you've made today. >> i think it's really important. stuart: they can't get to work on time. that is the important point here. >> some of it is social skills. some of it is seriousness, showing up on time, appearance. that shows out. certainly there is a need for the retraining that we hear about a lot out of government.
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stuart: a lot more in your last point because that's a very big deal. thank you, when he does. quality of the workforce. check retailers now. the national retail federation says 165 million people shop in stores and online from thanksgiving to cybermonday. that is about half, more than half the population i believe. check online retailers. remember cybermonday broke online retail sales records all of them on the up side including amazon and 27 bucks. sporting goods has a strong forecast. i don't know why the stock is down but it is. tiffany reported lower profits. 11% down on tiffany. check this out. a dutch carpenter re-created a life-size noah's ark. spending almost $5 million to
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build it. it nearly 400 feet long and get this coming he wants to sail in from holland to israel. good luck with that. he says this is a copy of god's ship. it only makes sense to take it to god's land. one problem come in the art doesn't have a motor and another million dollars is needed. how about a passenger jet with no middle seats. bigger cabins -- sorry, bigger luggage, larger windows are equal special edition tiger and eagle imagery. the jet has been making appearances in various air shows around the world that has been in commercial operation with norway's wide row since april. didn't know that. arcs, planes, automobiles. our very own jeff flock live in los angeles at the auto show their fear he's got something covered up. the big reveal is next.
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♪ ♪ there's no place like home ♪
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argh! i'm trying... ♪
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yippiekiyay. ♪ mom. ♪
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>> los angeles auto show is underway. moments ago we showed you better own jeff flock is there. he's promising a big reveal. do it. >> four hours away from the unveil of the lincoln aviator. there were three of them. they will let us do it right now live on the barney program. magic, look at that. this is the new three seat suv giant coming beautiful suv. one of the cool things about this is not only can you get it in a hybrid version, but you can also -- it will lower suvs are too tall and i will lower when you open it up to allow you to enter. the times that you can and it, well, unlike other times you may hear that her kind of crazy, and the detroit symphony actor has recorded at times. adrian, jim and joe.
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tommy what it's like when i leave this a jar. what does it sound like? and what if i leave the fuel gauge undone? what do you think? >> i love it. stuart: you are a genius with live television. that was really good. nobody was in the sound effects. reporter: i've got more sound effects if you want to come back later. you're all right. i really like the suv. we will be back to you all day long. the g20 meeting starts real soon. president trump will meet chinese president xi jinping. here's my question, which country is better positioned to withstand the trade we are in. larry kudlow thinks we are. watch this.
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>> i'm not here to critique or second-guess the chinese economy, but most observers lead china to be in a slump whereas the united states is in a very strong solid position going into this summit. however again to repeat, the president said there is a good possibility that we can make a deal and he is open to it. ♪ as one of the nation's largest investors in infrastructure, we don't just help power the american dream, we're part of it. this is our era. this is america's energy era. nextera energy. this is america's energy era.
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stuart: would've gone back up again. 181 points higher. 24,900. left-hand side of your screen about two thirds of the dow 30 are in the green. earlier today we've got the latest read on economic growth. 3.5% on an annualized basis in the july through sub number quarter. richard moody is with us, chief economist with regions financial. richard, forgive me. i'm a little disappointed with 3.5% growth because it's not as good as the 4% growth in the second quarter. where am i going wrong? >> sir, it's not.
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keep in mind before this year gdp growth over the course of this expansion average dew .1%. all things considered i'm perfectly happy with that 3.5%. stuart: i don't like the down%. 2% may be in the fourth quarter. are we heading towards recession? >> not anytime soon. we thank you for will be closer to 3% and 42018 as a whole, we are looking at growth rate of 3% and this'll be the best year of the expansion which is now in its 10th year in growth will slow next year, but still going to be a solid year. stuart: that's a pretty good outlook. we've got is china-u.s. trade spat at the moment. who do you think is in the best position to withstand a prolonged fight russian markets at us in america or is it china? >> it's in everybody's interest to settle this before it
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escalates. to your point come in the u.s. is in a better position to withstand it simply because where that six is to trade, many other foreign countries are. trained to argue an outlier? a lot of economists we've had on the show are saying we are going have a recession by the end of next year. there was really not in the "washington post" or "the new york times". forget the question, but are you an outlier? >> i've been called worse. in terms of how we see things, a lot would have to go wrong for us to keep under next year. if you look at how the balance sheets and how strong the labor market is and how confident they are. that doesn't mean girls is not going to be accelerated. we do expect one to get by next year and the 2020 and beyond in some of the fiscal stimulus
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starts doing from the economy, growth will decelerate, but there is still a long way between that and an outright recession. stuart: richard moody, thank you for joining us. we do appreciate it. outlier or not we like your stuff. our next guest has been on the show before. important guy. he made the narcan nasal spray to treat opioid overdoses. he says the opioid crisis is now all about sentinel. roger kristol is our guest, ceo of opioid pharmaceuticals. why do you say it's no longer just the opioid crisis it is the fentanyl crisis. what's going on? >> fentanyl is no. 50 times stronger than in these other opioid painkillers. also last a lot longer. over half of the opioid overdose deaths in 2017 came from
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fentanyl. so when someone is overdosed and they're not responsive, we have to assume that overdosed on fentanyl rather than just hair when her a lot of pain killers. tree into your narcan nasal spray is designed to treat overdoses. can i treat an overdose of opioid mixed in with sentinel? >> we believe it can however they're certain limitations and that's why we are developing another product that is better suited. now machine is similar to naloxone except that last for longer and binds tighter to opioid receptors in the brain. what that means is we believe if you were to overdose on fentanyl it would be a better drug to treat the type of an overdose. no luck so does work in narcan is being used very broadly and we are pleased about their saving lives. trade to wear we are the president and others in the executive branch that is
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fentanyl is coming largely from china. is that true? >> as far as i'm aware absolutely. the main source of where fentanyl comes from. we do know it's a relatively easy job to manufacture. it doesn't take much more than tennis. with what we have in this field and we still hope we do restrict the invitation of fentanyl from china but nevertheless people would be able to have it here. stuart: how long before you got a product which could take care of an overdose? >> we are targeting fighting for approval in 2020. relatively quick in terms of drug development. >> if you think about the timescale, and i was about three years. sub this is still quicker than not. in the meantime we do have narcan nasal spray available. it does require no locks on to
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revive someone who's overdose. but it is out there that's been used and we are pleased to see it getting out. we appreciate it, sir. eli masks boring company has abandoned plans to build one of the tunnels that was planning to build under los angeles. the decision comes after community groups, which have sued los angeles over its plans to expand the project from environmental review requirements. there is no building tunnels but not that particular one. check the homebuilders. remember, new home sales down a .9% in october compared to a year ago. the housing market is not that healthy and not the fact. homebuilder stocks all of them way, way down. we studied before in this program. a lot of republican seats in the
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mid-terms lost because the tax-cut plan cover the deductions for state and local taxes. california's orange county, for example, is now all blue. we're on the story. california incoming governor gavin newsom wants to revamp the state tax system. is there any chance taxes will actually go down? not a prayer. house house democrats are holding leadership vote today. a big test for nancy pelosi. they are counting the votes as we begin we are on now. in fact, we are on it all. i am not for colds. i am not for just treating my symptoms... (ah-choo) i am for shortening colds when i'm sick. with zicam. zicam is completely different. unlike most other cold medicines... ...zicam is clinically proven to shorten colds. i am a zifan for zicam. oral or nasal.
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...and i found out that i'ma from the big toe lian. of that sexy italian boot! so this holiday season it's ancestrydna per tutti! order your kit now at ancestry.com transfer this morning carson michael burgess joined maria bartiromo. here's what he had to say about general motors. >> texas gm plants was not one of those funds targeted for closure. folks in arlington, texas won't be faced with that. in 2008 at the end of the bush administration, i was not voting to allow the president to move t.a.r.p. money over to general motors, to not bail out the automobile companies. i did not think that was a good idea, but it happened and it was
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done.
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stuart: the deadly california wired fire on pace to be the costliest natural disaster in american is great.
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he's from accuweather. they will cost $400 billion it says the fires will cause more people to move out of california. that will lead to a drop in real estate values and tax revenue. that is accuweather $400 billion. all week we've been saying that the five high-tech states on your screen right now lost republican seats in the midterms because that the count on salted actions trump tax bill. california republican party's been really decimated. larry elder is with. nationally syndicated talkshow host from the great state of california. my position is that the lack of dassault inductions was in the defeat of their publicans or do you agree with me? >> in california i don't see that being a relevant fact there. you look at first about the math. democrats outnumber registered republicans three to one.
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independents are now a bigger voting bloc than republicans. the new look at demographics. california 40% of the state now is disbanded or 13 by 5% asian and pacific islander and 5% black in those groups do not vote for republicans. look at the money spent in these elections. republicans outspent five to one, 71, told the one depending upon the district and then there's issues. immigration, health care, environment and donald trump not necessarily in that order. republicans -- and doubly assaulted very much to do with it. stuart: i take your point. he listed some good reasons why republicans lost. can you see that turning around at any time in my lifetime? >> the democrat eventually will as overreach. super majorities in both houses of the legislature. we have a left-wing governor who has to do something about the lopsided tax structure in the only way to deal with that is to tax more non-wealthy people. that's a nonstarter.
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people in california feel they are overtaxed that the wealthier under tax. he's got a real problem. stuart: this is the incoming governor, gavin newsom. he says he wants to revamp the tax system for california. you don't see any chance has taxes will go down, do you? >> i don't. i see them going up and not a problem. most californians believe they are overtaxed. they are perfectly happy to raise taxes on the wealthy. the problem with that is the top 1% of california taxpayers account from us half a the income tax revenue in california and not the single largest source of revenue for the whole state. the rich are being overtaxed. you add salt and maybe the wealthy people will be leaving for states like california. you added out. you can't keep taxing the wealthy and expect them to stay here in california. that's what the democrats are facing going ahead. stuart: if he wins by a large
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margin all across the state by wide, wide margins, they don't have to lower taxes. they don't have to appeal to people's pocketbooks. they're going to win anyway on issues in dislike of donald trump. >> that we are running out of money, and stuart. the pension liabilities will probably have unfunded pension liabilities of almost a trillion dollars here in california and sooner or later you can't get more money in knots over facing. you have a governor who wants a single-payer before he became governor legislators push something like that. they came back with a $40 trillion figure bill and even the democrats tabled the measure. i don't know what you get the money from. i really don't. at some point there's no more money. stuart: is there any doubt in your rented a californian, nancy pelosi will be the next speaker of the house? >> are only rival was marcia fudge. we talked about that last week you marcia fudge in nancy pelosi
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then could the question is what's going to be the agenda. fifteen dollars minimum wage, free tuition, single-payer, abolish i.c.e.? i don't get it. they will overreach and come 2020. american people will have another backlash and donald trump will be reelected. stuart: okay. i was going to say you're killing me with all the stuff about pelosi and california but your last line was a good one. larry elder come to see you again soon. >> my pleasure. stuart: solid rally. remember please wear a 350 on monday. 108 yesterday. now we are up 186 pushing close to 25,000 on the dow. how about this, twitter out with numerals about labeling people. if you call someone who is transitioned from a man to a woman come to you call that person sir, you could get banned from twitter. higher sales of a discounter.
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burlington stores up she goes 10%. lower sales that she goes from the women's clothing retailer down it goes. 35% down. not a very wrote hastert from smucker and they are down six by 5%. watch out for those forecast. in a new interview, president trump is once again threatening to shut down the government over funding for the border wall. congress is nine days left to send the president a bill. that would include $5 billion that ain't much time. >> if this isn't the right time to get funding, when you look at what's happening at the border they will never be a right time so we are going very strongly for funding for the wall. ♪ place, the xfinity xfi gateway.
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stuart: and a new interview, president trump is once again threatening to shut down the government over funding for the border wall. senior capitol hill producer
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chad pilgrim joins us now. he knows a thing or two about the ins and outs of government. how likely is it? and he capped it for us the spot here. >> a lot of people think that this is a more bright scenario to have a partial government shut down potentially not at the end of next week. the government is funded through 1159 on december 7. if they can't work something out, they think there might be a standoff here. there was a meeting at the white house yesterday between house republican leaders and the president. the president seems more dug in at this time. remember who got blamed for the short shut down in the winter. republicans think they're in a stronger position right now in one of the reasons is because this would be a partial shutdown. they've approved five of the 12 spending bills. only 12% of the money which hasn't been approved yet. the flashpoint is the border wall. here is a lack of risk for the president. they've already funded the military. if you're not a full full
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government shut down that would involve the military, other agencies. as to be a more narrow shutdown and that's why a lot of people think president trump is willing to go to the mat. stuart: that makes a lot of sense, chad. if republicans don't get the blame and it's only a partial government shutdown, the ministry is not affected. sounds to me like the president wins. last word to you. stuart: here's the other point. keep in mind this is the last couple weeks they will have the white house, house and senate. the last time you have republican array in the branches of government. it flips to democrats in january. that's why republicans think this is their last best chance to get the border while that would probably not have been come january when democrats control the house of representatives eared stuart: great stuff. thank you, good stuff indeed. don't forget, everyone. you can see more of me if that's what you really want on fox nation. all have sharp opinion on politics and anything else that gets me fired up.
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today i'm talking about the new rules for white house press briefing with the decision to not have comedian said next year's correspondent dinner. it is called my take. 1:30 p.m. eastern on fox nation. and now this. the highest-paid tv host made nearly $150 million in the last year. we are going to tell you who it is. here's a clue. it ain't me. [laughter] ♪ . .
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stuart: before the break we said who is the highest paid tv host of all. here is the answer. the lady on the left, "judge judy." wait for the number. $147 million in the past year. whoa. most of the money came from selling rights to her shows 5200
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episode library. got more numbers for you. ellen degeneres, number two, 87 million. a big chunk came from a new stand-up comedy special from netflix. dr. phil, 77 million. ryan seacrest, 72 million. steve heart have, $44 million. we've been telling you who is most valuable country in the world. it is next and neck between apple and microsoft. it is really neck-and-neck. microsoft worth $835 billion. apple is worth $835 billion. neck-and-neck. what a good horse race. check out the big board. this is the high of the day. now we're up 211 points. there is some optimism that maybe we'll get something good coming up out of the g20 meeting
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with xi and trump. literally in couple minutes, the fed chair speaks publicly. there is optimism about interest rates in the future. >> perhaps the fed won't be asking a agressive as he is suggested in 2019. maybe only one or two rate hikes in 2019. they being hawkish could be hurting the economy. stuart: financial stability. >> correct. stuart: this was 10:00 eastern time. this helped the market this report. banks remain strong. the credit of borrowers remain strong. the bank loan, the quality of people borrowing money from banks. that is strong. >> no major warning signs when it comes to financial stability. >> maybe more dovish comments out of jerome powell. >> you will find out in 30 seconds thereabouts. plus we actually have the yield on the 10-year treasury, really moderating. we're down at and 3.06% as we
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speak. >> that means money coming out of bonds. stuart: look at this. up 210 points. powell, jerome powell will speak in about ten minutes. we're going to carry it because this is a very, very important speech. regrettably my time is up but neil, it's yours. neil: i know with this "fox nation" thing we don't have time to bond and talk anymore. have a good one. we are waiting to hear from jerome powell, the fed chairman. we always are looking for these signals we might get out of the fed boss, whether he will react to the president's criticisms that he is not even a little bit happy with the guy he chose to lead the federal reserve or respond to market volatility or something to say about the global trade wore, how that affecting things. we do know the fed chairman has been speaking publicly and privately to anyone who wants to hear that he is concerned about what has been happening to asset prices and whether there is

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