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tv   Varney Company  FOX Business  December 19, 2018 9:00am-12:00pm EST

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>> final thoughts in seconds pleasure filling in for you this morning and great to see you maria's hot seat. >> yes. [laughter] you're amazing. always and thank you lawn for being there right now mr. varney equally amazing -- [laughter] take it away. perjury good morning dagen. good morning everyone. this is interest rate day, the day when federal reserve tells us what they're going to do about the cost of borrowing money. well, there's some consensus emerging this is what's expected one small rate are hike today. but go easy next year. we find out for sure at 2 p.m. eastern but after that, the fed chair will take questions a lot will be read into what he has to say. well, five hours before all of this breaks, the market shows a mod fest gain investors like the idea of one rate are hike go easy next year. the dow is going to open with a gain of had been 140 points nice gain for the nasdaq too.
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i would like you to show me price of oil please. look at that. 46 dollars a barrel. talk about about a selloff. despite future production cuts by opec and russia, the oil glut is still with us. that is a problem for oil companies with big debt. and -- [laughter] you know the annual gathering of the global elites. president trump is going. i call it into the belly of the beast. he's going to shake them pup again and he's taking most of his cabinet with him. it is going to have big impact. got one more headline for you senator elizabeth warren 79s the government to manufacture, to make generic drugs. the senator believes this is government makes your medication we have more on everything "varney & company" is about to begin.
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viewers not familiar with that song it is called the of the road why are we playing it, it is the drop in gas prices national average for regular is 2.36 it went down for 69 straight days. but it staid unchanged overnight in other words, the downward streak has taken a pause. >> you called out streak yesterday and jinxed it. state of missouri if you want a talk over missouri a buck 94. very impressive indeed but there are 28 states where they have at least one station there well under $2 a gallon. once again san marcus texas a gas station selling it for a buck 61. actually there's one in new york
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irving new york a buck 67 a signal there. a stu get in your old chrysler van and off you go. >> you can make it. really good do you think maybe they've dropped price so low so they can get on this program they know they're going to get a shoutout -- >> that's the thing to do. we encourage that. >> it's what we live for. we have to move along i'm told. >> at a pace i'm told. here's a story that i really like this one. president trump is heading back to jan for big meeting of the elite. liz is here columnist pick your cliche into the belly of the or cat of the pigeons. >> last year if you remember that's where he launched his excellent speech theiring america first. and it a whole series of initiatives to make america in his words the best place to invest in the world. okay, fast forward where would you rather have invested a year ago? the united states or name it any
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other country in the world. right? between lower taxes deregulations so forth, yes market has been extremely volatile and we're with questioning the slowdown next year possibly. but the truth is he laid out an agenda that caught the world's eye, and i think he goes back this year and says guess what, i wasn't kidding. we're going to continue to push very is hard for trade and reciprocal trade things we talked about are coming true and we're going to deliver more of the same. >> all kind of policy meetings which could take place because president is taking his cabinet with him. pompeo you name it. >> that argues well for trade talks i think. he laid out last year ambition to do bilateral trade agreements i think that's on table and look, the whole -- everyone in the world all of the elites hate donald trump because he has questioned some of their most solid underlying tenants like climate agreement so no one is agreeing with the agreement these days but last meeting on
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the thing was a sputtering failure he goes back in strong shape. >> i love it. i really do this is where he sort of confronts rest of the world an says what's wrong with you guys. give to him, police mr. presidet that's the point of view. stay there quick a lot more for you. interest rate day, and again i'll go back it a consensus about about what fed will do today. consensus is they raise today but they go easy on rate increases next year. look who is here in the studio with us. the economist, man himself brian -- welcome back brian. do you agree with the consensus one rate hike today go easy next year? >> that's exactly what's going to happen. oddly enough i think gold price has gone up because fed will raise rates that is so say gold market think the fed is being now it doesn't know what to do and intimidated by the president. so the fed is going to raise rates today and be dubbish for next year.
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>> that's a different question with from will they? should they? >> i think they should not when you have a big tax cut cult and deregulation there's demand for money in the my it is self-regulating there's no reason to interfere with that wonderful process. you have really big problems in the money market when is you have high tax rates and when you have increasing regulation. >> put it to you brian if they did not raise rates today market take that as a signal the fed has lost its independence because it is down to donald trump. >> we have to get beyond that. if we could get to gold standard world again to stop the fed from watching which is kind of a deadweight loss in economy. if we can get past this, i think the economy could start to boom again. >> stay there brian more in one second let's get to politics. white house press secretary sarah are sapped percent suggested that the white house is found another way to get the $5 billion that we need or the country needs to build the border wall.
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liz peek, did the president blink because it sure look like mr. schumer pelosi won this one. inch yeah. but should we be talking about winners and losers when we're talking about national security and this issue of border -- you know erecting some wawlg or barrier on border? everyone has mentioned that. this is just politics it is just show boating by democrats showing that they can stand up to donald trump. as others have remembered in 2006 they all voted for that 700 mile fence/wall, and that went through. it was passed. and we have about a 700 mile fence along the border what trump are is ugh tay about is enlarging that making it more secure. i think this is just a sort of bologna position but to answer your question which i final will do yes he did blink and doesn't want to shutdown, and they've made that a big political issue. >> but he had to blink because the republicans in the house wouldn't vacuum they would not back him with pelosi and schumer
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many are not there. >> left town and ho have left congress already. they're leaving as january one. but they've left town and haven't is shown up for the vote. >> i think president was defeated by his own party. ening they don't want a deal to me that's a traj aric thing congress needs to fix our immigration system an they keep hunting they keep doing little fixes and it is all political gamemanship and if i was a member of the hispanic caucus or community at large, i would really start to say, come on folks get this done. you know, we have been waiting around for an awful long time we've given in thes or vote what do we have to show forth? >> well said liz. we've covered the wall covered a shutdown better talk about price of oil because it really does make a difference in our society. and in our market look at the price. 46 dollars a barrel. brian still with us. now, is i think the the cheap ol is flat out great for the economy. except the oil companies with
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with a lot of debt. but for the economy i think it is great what had say you? >> sure, my coauthor he calls it oil price decline a tax cut. and oil represents a hedge against the dollar it always has when oil price goes up there's a lack of confidence in the pus courage city if oil price is going down that means world thinks that the dollar is a really good investment vehicle. that's why fed should just let the dollar demanding take care of itself in natural market gold will follow. if we continue the tax rate cut deregulation story of the trump presidency. >> you keep talking about gold, your gold bug -- >> not a gold bug they think that gold will keep going up and up to 10,000. gold is supposed to be low and stable that's what it always is in era are as of gold economic growth. 1250 an ounce for six years. if you can maintain that, then that's our new gold standard and we're off to the races. >> brian you worked that one out if nicely done son.
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the wall about with the shutdown, oil, i think it is about time we got to facebook. what is the "new york times" reporting about facebook? >> another bombshell it gave access to 150 companies your user information, your message it is that you're sending other users on facebook, so company are microsoft spotify and yahoo! so it is mostly had tech also could ins media and car makers got access without you knowing it to your information and your messages on facebook. there's news crossing right now out of facebook, facebook is saying -- [laughter] this what it did was when you access facebook via devices, or via other platforms that's how these companies got access to your information. it is try aring to deny that it let them in the door. but certainly i don't know if users know this, that facebook is allowing access when you access companies access when you go on to facebook via
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other devices other platforms so they're -- >> another bottom line for me is they allowed outsiders third parties -- like netflix i understand to read my messages. spotify as well. read it or get your contact information for your friends or yourself and so -- you know, it is like listen -- say they're on a world mission to connect the world and it is all no they're driven by growth and profits in bottom line and getting more users. >> capitalist i can understand that but nonetheless don't read my messages. thank you. thank you, liz. all right, check futures please. we're going to go up about 100 points for opening bell. maybe about 120, 130. a 30-point gain that's a half percentage point for nasdaq now this, the surgeon general sowpgding alarm on e-cigarettes and then some he issues a dramatic public health advisor he says e-e-cigarettes can increase the risk of a heart attack and may even contain toxic metals like led. then we have senator elizabeth
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warren flexing her socialist muscle out with a new bill that would turn the federal government into a generic drug are maker. i can't wait to hear what herman cain has to say about that because he's coming up next. but first we're remembering an american comedy legend penny marshall laverne laverne & shird from complications from diabetes. marshall directed a hollywood blockbuster including a league of their own and big regular them both and made history to become first woman to direct a film that made over 100 million dollars. in the box office -- penny marshall was 75. i'm snow. and just like you, the further into winter we go, the heavier i get. and while your pants struggle to support the heavier you, your roof struggles to support the heavier me. [laughter] whoo. [crash] and your cut-rate insurance might not pay for this.
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going up at the oning bell about about 140 points an green arrow for opening bell in 15 minutes time. now look at the banks, the s&p 500 financial sector, is now in what's called bear market territory. the sector as a whole is down 20% from its highs. this is premarket today. most of them -- well jpmorgan and goldman down again, modest gains for other three. then we have senator elizabeth warren she wants a lower drug prices. here's how she wants to do it. let the government make, make cheap generic drugs. that a good idea who better to ask than herman cain you not going to like this idea the government making your generic drug go on go for it.
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>> another bad idea. here's why she aspires to run for president. so what the liberals to, they try to find one of the sources that from from frustrates the md promises government solution you and i know that promised government solutions for those kinds of things do not work. here's an example stuart. when they pushed obamacare down our throats, americans were frustrated some of them not all of them they were frustrated withs cost of health insurance. so the democrats broke the health insurance system now they expect republicans to fix it. and so she's going after another area of frustration that's part of her move toward socialism. that's all she's doing it is a bad idea. >> it just sounds like a voice from my distant past when i was growing up in socialist england in 50s and 60s. ownership of the means of production that was a classic socialist line, and now it is
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come here. >> before we with run out of time herman i want to ask you about chick-fil-a it has poised to become number three fast food chain behind mcdonald's and a burger king how did that do that so fast? >> they did it very simply owners run things better than workers. this has been their philosophy from the beginning. when you become a chick-fil-a franchisee, they help to develop a path to ownership. and so as a result, the people running most of the chick-fil-aing are on a path to ownership, and as a result, the operations run better, the food quality remains can be consisted that's how they've been able to do it i know ceo of chick-fil-a dan cathy he continued legacy that his father started when he started chick-fil-a owners run things better than workers. that's how they did. >> what surprised me they've come so far so fast and don't
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open on sundays so that huge revenue is not on their books. i think that would have come much further faster if they did open sunday but they're never going to do that. >> never going to do that because that's part of the legacy of the founder of the company. and here's the thing, even though they're not e open on sunday same store sales are better than most why? you don't bring your people out if you don't require them to work 7 days week. you don't have to put together a seven-day a week schedule everybody knows they get sungdz off and maybe some other days so -- it's part of their philosophy and it is clearly working based upon the numbers. >> yes based upon numbers you're good with that. herman cain thank you very much tin deed may i wish you a merry christmas to you and yours. >> merry christmas to you and yours. >> thank you so much herman see you soon. check that market opens new 11 and a half minutes. pup triple digits for the dow jones industrial average. we've got some negative news
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from fedex. they say a slowdown in global trade is hurt hadding their business. a year ago, the ceo of fedex was on this program talking about giving bonuses and raises -- today they're offering buyouts to workers. my -- times have changed and stock is going down 7..
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>> i remember please this is fed day interest rate are day as we run up to big announcement at 2:00 this afternoon we have a modestup side gain for the dow we're going to open about 140 points higher we have to get to fedex last time chief executive was on this program he was talking about giving bonuses because of the tax cuts. roll tape. >> you're going to do with the extra cash are you going to give
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bonuses? >> the tax bill means that businesses like fedex already a major investor cap exbudget 5.9 billion dollars but it means that we can't increase it in the future. because of the new provisions of the tax bill. that was then, this is now. fedex is cutting jobs. why, liz? >> they're seeing peek now appears to be behind us they're worried about europe they're worried about asia. this is an extreme selloff we're seeing in fedex we haven't seen a selloff for this month of december. in fedex in about nine years. last time question saw this january of 2009, so this is pushed the stock down about 33% off its record high so that at the beginning of the year, so if fedex is bell weather stock sort of the canadian we know that giving bank of america mayor lynch saying half of global fund managers are expected global economic growth to weaken over next 12 months so weather for
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the the imloabl economy not good news and down goes 8% is huge decline for stock like that all right there's a rare, really i think it is a dramatic warning from the surgeon general on what -- >> on e-cigarettes. you know we're kind of getting grips to this amongst youngsters in this country use among teenagers up 78% year surgeon general say there's no doubt this is a dangerous product you get hooked, and you could be creating a whole new generation of americans adibted to nicotine but also evidence now these things have toxic metals in them lead and vaping could be linked to increased rate are of heart attacks also they don't know about developing brains young kids smoking this stuff but starting to do studies already seeing some disturbing signs with addiction rate of these things is incredibly high so, they're trying to restrict it and they say if we can get kids
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off these things sooner the better. problem is they are incredibly popular among teenagers. >> they are you've got it ash thanks, sir. next story, question what do you buy for the gardener who has everything. well look at that. that's a tiffany watering can. okay tiffany it is a watering can how much liz? >> it is worth wait for it -- i think 25,000. 25,000. that is correct. 35 forgive me. i'm wrong 35,000 i was looking at another price so this is silver and copper limited e edition part of the tiffany bling bling of regular household items they have a what i was looking at 20,000 dollar lantern, a 1500 tin can, you can also get a -- 1, 50 tape measure. so this is -- good value. wait, you're missing the point not functional items they don't fill watering condition and -- >> they are works of art. i'm on their side on this one. you like it i'm not buying back
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work -- >> my producer is saying if that's a work of art get out of here i've seen that thing. and i like it. now next case. the market please we're opening up very soon and dow only up about 130 point out of time back in a moment. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.
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>> all right we've got 45 seconds and this market will open this wednesday morning, we're expecting about about 100 point gain. but the really big story today comes to us at 2:00 eastern time this afternoon. that's when the federal reserve reveals whether or not it is gipping to raise interest rates today. and whether or not it is going to raise interest rates next year and at what pace next year. those are the key questions. and a after a 2:00 when we get some answers you should see
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reaction currently market will go up in ten seconds time because consensus raise today that go easy next year. the market like it is that. so in three seconds it shall about when we open up we are opening up we will have a gain of what -- there we're early going here we go 17, 22, 14 not much of a gain is it? >> the wait and see. yeah for the fed. and most of the dow stockses are open and we're still up only what 24 points. hours, futures indicated more than 100 points up but we're not there at this point. up 15, 10, 7, wow. hold on 8 -- [laughter] okay. i call it dead flat to ever so slightly higher. now it is ever so slightly lower. show me the s&p have we got same story there? yes we do. virtually flat, how about the nasdaq i think it is the same story virtually flat we're down 11 point 1.7%.
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now interesting is the price of oil. 46 dollars per barrel. that's way, way down. not today is up a little bit okay got that. but yesterday i think it was down% back to 46 what's going on with that? joining us eded did jack, liz mcdonnell ashley webster start with the fed let's get on with it. i mean, you know wait until tuesday to get official announcement but get on with it now should the fed raise interest rates today? >> absolutely not. every indication on the market that tenure, everything you're hearing and seeing is not pointing to a reason for rate hike. the problem is that fed put themselves in a corner with their comment a couple of months ago saying that they're nowhere near neutral so because of those comment they're probably going to raise are even though they shouldn't -- but the most important thing had about today's meeting that the market will watch closely not whether they raise today or not but what they'll say about next year.
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>> i think you're right should the fed raise rates today? >> i agree with 97% of that is just a part of raising today. i choir that if they "don't ask, don't tell" it will be such abrocket change it might make investors neives about a economic slowsdown. i think you just change the language looking forward. >> they don't want to be stew's point earl lier president is vocal on his tweets about what fed is doing. >> investors qowld say you're doing to president trump telling him not to raise race today you've lost your independence and i think market would go down 4%. no rate rise today that's my opinion. >> maybe you agree with that? >> indication will be two months ago you said nowhere near neutral and economy is growing on cylinders now all of a sudden you say we're going to stop raising rates so as a consumer i'm saying wow maybe things are a lot a worse than what i think. >> but market dow has what lost i think 3200 points since fed share jerome powell and talked
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about raising rates from neutral. j quarter point that does not come out of today is not a big decider it is about the guy and language. and a the tea leaf reading industry will have a field day today. because when jerome powell answers questions you're going to be passing every single word not to mention tone of voice all will be passed and market will pass judgment. >> i want to say see the price of oil we're getting close to 47 or dlas a barrel. there's a statement in itself. 4682 is the price. jack, let's go into this. [laughter] look i say that cheap oil is good for the economy. good for consumers what's the problem here? >> you're right so far you're right. i mean it is god before it comes bad if it does, in fact, become bachelor's degree a lot of companies use fuel and take airline as for example. cheaper jet foul a third of their cost so great news for airlines unless the price of oil is coming down to signal a recession that's coming and then people travel us and take fewer
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flights less top lying growth for airline so far so good in lower price are of oil and not want to see it go down. >> quell said jack now i opened up "new york times" sort of a negative article on facebook. this is a real headache for all of them. another headache, one on top of another. what's the latest? >> despite facebook saying it built a privacy wall around user data gave special access to -- for 150 companies to come in, look at your user information, look at who you're sending messages to, and some instances letting companies delete your messages spotify netflix saw messages, russian search engine had access to this royal bank of canada car makers they facebook signed a agreement in 2011 saying you don't give out user information without explicit permission, and a so they're in a corner right now with what just is -- >> i would not buy facebook
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stock where it is now at where is it, 141 i think it is. i wouldn't buy it would you? >> no obl every investor has a rick talent but me personally i would stay away from it. there's one thing after another hitting this company that means probably continue to be more problem. this is a very disturbing thing to read about. >> ladies and gentlemen well we have with us a facebook testifieder. his name is jack. >> disconnect between the negativity and cash and a i would point of point out some te think are outous today and change we get used to them when people who sell ads for let's say fox business when had they go -- when your rep ares go out to customers, they tell them certain thingses about their viewers they say hey, stuart varney they're rich wrowpt to put your ads with them but not as a much as facebook. >> we're not sending messages to each other on fox business platform. [laughter] you know, so the fact that they sign that fec agreement is an
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issue for facebook saying you have to tell users when your stuff is out there. >> i think issue ultimately will lead to some sort of big change at the top and executive leadership going forward. but i do think that company will remain very necessary to advertisers. >> will the company become less profitable because any kind of regulation that comes at a them? that's the question. >> if anything more profitable and now to take kaish of their problem which -- >> congress could lift immunity across all platforms against class action lawsuits so that's something that is now being discussed in congress. check the big board we eventually ended up after six minutes worth of business with a 50 point gain for the dow we were expecting more. we got 49 as we speak. another top executive leaves amazon there's been several departures in past year, and amazon is dare i say wallowing around at 1 rksz 500 a share. that is 500 dollars below its high.
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better profit coming in at general mills. you know cereal people cheerio people up 8% on stock. computer market swimmings in memory chips. that is hurting micron bottom line big time hurting stock down 7%. how about winnebago no i'm not buying one for my retirement but they are doing well and stuff is up 5% now. 5% up. winnebago. got to get to fedex, they are cutting jobs. okay, express delivery and acquisition in europe that hurt their profits as well but the news here is, they're cutting jobs. eddy, i see that -- they're cutting jobs as a global economic indicator. what say you? >> yes, i agree so that is not good news for the global economy. but one thing is we have been watching the overseas economy slowing down all year so this really is not that big of a surprise. i think it comes back to trade again. if we get trade taken care of, i think that's going to stabilize
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markets. and then we have the fed hopefully being dubbish or nextier and hopefully we're starting to form a bottom in international markets but the international markets have been slowing all year. so this is not new news. not good news but not new. >> you're an optimist if we get a fix of trade dubbish line from federal reserve we go up, stocks go up from here that's your acquisition. >> i do believe that absolutely. we have to take a look at blue apron, delivery people the meal kit delivery peel they're down to 88 cents. >> stock yeah they're below a penny actually down two and a half percent. the problem jack is what -- what? >> who needs this thing? do you really -- food hole from the store and cook if you want to cook. not only that but there's competition for a service that people don't even need to begin with so it is not a good -- i'm not optimistic. >> nor am i. you have missed the story, though. story is -- that you sign up to get these
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kits you get tired of it. and you don't renew. don't lock you in. no, they may lock you in for a certain length of time and don't lock you in forever and as soon as you can get out a lot of people get out. >> but i know there are blue apron fans out there that are ravid right now. but worst ipo of the past decade. a competitive market and acquisition cost for clients is competitive. this is a huge story, we've not gotten to is so or far but we are doing it now. pize per and smith cline they plan to combine their consumer health care units. it creates the world's large pest seller of drugstore staples like advil, et cetera, et cetera et cetera world with largest over the counter drug company will be created by this proposed get together. are they sort of protecting themselves gns against amazon getting into health care is that a move? >> i think it is. but you know everyone is trying
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to compete with amazon in every sector there is. you have amazon effect right so this is one way to continue to scale. get larger and hopefully cap which you more market share that is their position from the business perspective. when you combine precipitation business over the counter you say diversifying revenue when you split them apart we're catering to investors really it is to have more markets and half going forward so i think -- both stocks are up. also by the way you don't go to the it shall to see anymore to fill your prescription med and buy rolaids so the world that has changed there's no longer synergy between two businesses. >> point well taken thank you everyone. by the way, eddy jack thank you very much gentlemen 9:40 we have to move on we will be there. up 63 point on dow industrials. still shy of the 24,000 level. okay. president trump going back this year -- he's bringing most of his
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cabinet with him. i can't wait to see him shake things up over there with the global elite i would love to be a fly on the wall. and a former sheriff suing netflix. he claims that the hit series making a murderer wrongly accused him of planting evidence in a murder case. we have the story for you netflix stock is up. ♪ metastatic breast cancer is relentless, but i'm relentless too. mbc doesn't take a day off, and neither will i. and i treat my mbc with new everyday verzenio- the only one of its kind that can be taken every day. in fact, verzenio is a cdk4 & 6 inhibitor for postmenopausal women with hr+, her2- metastatic breast cancer, approved, with hormonal therapy, as an everyday treatment
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wat t. rowe price, hundreds of our experts go beyond the numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story. t. rowe price. invest with confidence. president trump tweeting about syria this morning here it is we have defeated isis in syria my only reason for being there, i guess he means american troops there during the trump presidency. this after it was announced that administration is preparing to pull troops out of syria that just kale to us. check that big board, we're 15 minutes in and we're 62 points higher for dow on fed day. remember that please.
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and now we have a former sheriff suing netflix. the full story please. >> this is from the netflix series making of a murderer which got a lot of viewers. the conviction of steven and avery in the 2005 murder of theresa, the county sheriff former detective that is featured in this sears is filing a lawsuit against netflix and the filmmakers saying that -- they basically edited the piece to make viewers think he and others planted evidence to frame steve and avery with events left out key fact, bottom line made him and the county sheriff's department look terrible and he's suing to set a straight to restore his good name to comment from netflix but it has been a popular series many believe that -- the the person that was convicted -- >> but you have to get it right. you do. to all parties. got to get that right. yeah. switch gears to global politics
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president trump heading back in january for big meeting of the global elites. flf john, is here -- he is the scene of the university of miami business school. he's going shake things up isn't he? >> good morning stuart i think he is truth to power perhaps. you like the idea of him shake things up amongst elites. >> it is very important that president go into this form and speak exactly his mind. meanwhile remember he's taking an and substantial entourage of cabinet secretaries behind him behind scenes do all private meetings with major corporate leaders, and international elite leaders reassuring as best they can but in public forum president will speak truth to power. >> now i know that you pay very close attention to the trade talks with china. that's the very much an area of yours. do you expect to resolution a deal coming out of these talks 90 days? >> i expect an interim deal but i do not expect a complete
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resolution. >> what is interim deal? >> probably going to have a road map a that's much more explicit than anything we've seen before regarding if protection regarding forced technology transform and regarding a level playing field for investments in the two countries. the chinese cannot give all of that had off in 09 days but i believe there will be articulation of a road map to resolving these kinds of issues. >> that would be a win. the president trump the way you've described it that's a win, trump. >> i would say it is a win for trump also a win for xi jinping and also win for the global economy. >> how will xi jinping portray this as a win for him granted man has to save face but how would that be a win because from chinese point of view, many chinese would look at any destableization of this trade relationship with the united states as something that is going to upset consumer
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confidence in china. and if there's one thing that the chinese communist party cannot afford to have happen, it is for consumer confidence to be upset. that is because consumption domestic is so important to restructuring of the chinese economy at this point. >> so you would say john, that trump's very hardline ever tays, tariffs, tariff more tariffs if you don't get along, that's justified. you believe that? >> there is a strong argument and favor of calling china out at the same time, if you call them out to the point where they cannot find a way out without losing face, then you have probably jeopardized the global economy. >> i'm surprised to hear you say this because most business schools most economists don't like the idea of tariffs. they shy e away from it. even if it is used to get leverage. but you say it is okay because that's the only way you can get
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a deal. >> well there is such symmetry in china u.s. trade balance that china will run out of american products to tariff long before the u.s. runs out of chinese products to tariffs. asymmetry favors the united states. ordinarily the bondage says this is a bad idea. but in the short-term, as an attention getting device to show that we are serious, to show not just that chinese communist party but the chinese people that we are serious, i think it's not a bad move. >> why does the dean of the business school is -- in miami have a british -- [laughter] >> did you not grow up in the middle of britain? about do you not understand meaning of rain -- [laughter] i will take -- i will take one hurricane every five years exchange for 100 day
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of rain guaranteed. [laughter] each -- >> that is not the the response at all but i like it. john, i like it a lot. john thanks for joining us come back soon. thank you, sir. check the dow 30. we've gone up a bit more now up 80 points and two-thirds of the dow 30 are in the grown they're up. up 81 to be precise. latest brexit madness book is in britain taking bets with a familiar face they come back. to replace theresa may as prime minister, we'll tell you who the book is backing after this.
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we were expecting a triple digit gain at the opening bell it took about 22 minutes to get there. but we're there. we're up 104 points for dow industrials. 43 for the nasdaq nice gain there too.
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how about the price of oil, remember please we've got numbers on how much oil there is in storage in the united states. that's coming up next hour that could make a difference to the price right now it is at 47 dollars a barrel. brexit question to you ashley what are the british bookies saying about david cameron coming back as prime minister? >> guy got us in the first place testifies rank outsider 80-1 but a lot of money come in on him last couple of days down to 33 to one. technically i'm not sure he can be but he's mp. eddy said that guy said i'm going to find a doctor and lie down that was his reaction the favorite by the way, and you're going to love this one jeremy corybn at 5-1 leader of the labor party. , though, for the -- who is a rank are socialist and everything else. boris johnson second 6-1. >> okay. okay. but jeremy corybn is the favorite. to replace theresa may. >> theory that they'll get
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kicked out in next general election and he'll have a strong -- >> never. never -- by the way the president is tweeting on the wall this morning. let me show you that tweet in our country so much money has been poured down the the drain for so many years. but when it comes to border security and military, the democrats fight to the death. we won on military had is being completely rebuilt. one way or the other, we will win on the wall. congressman andy biggs republican arizona winners with us now. he didn't win on the wall this team around did he? and house republicans would not support him and i think you guys forgive me for saying this, you guys handed a win to chuck schumer nancy pelosi didn't you? >> we served up in baseball what we cull a meatball with a slow group pitch over the fence. exactly what we did here. and you know, we talk about this but we forget about reason we're even having discussion is what's happening on border an my home
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state, california and texas. this is reare dig louse, and here we are again -- and we're asking 25. >> andy you didn't get the five billion you didn't get it and republicans were not there to vote for it. i mean this is -- this is unforgivable. >> no, i'm with you. it is unforgivable. we have the chance for two years to do something that was the keystone of president trump's campaign, and it was the keystone of most republicans and part our platform and good grief when chuck schumer saying it is just a -- just a campaign promise, i think that's what builds a party unity, it is what builds strength and chose character of a political party and we didn't show that character strength. there's still some time left. i am you may think i'm a optimist but i'm a straight bill by friday i hope they do.
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or else i'll stay here. >> odds are very much against it aren't they? >> yes they are kind of like cameron becoming prime minister odds are against that. but -- but with reality is, we can do it if we choose. if we choose if we have the will to do it. >> okay. congressman i have to leave you. it is a big heavy news day i'm sorry about that. but look thanks very much for being with us and answer question directly we like that. thank you very much indeed. let's check the big board because we just taken a leg up that more up now we're up 180 point and rising as we speak. that's a three quarters of one percent gain. the the dow is at 23,850 stocks across the board are up and what is fed day. okay -- that's what we've got coming at 2:00 fed day. senator elizabeth warren wants to turn the federal government into a drug manufacturer. is that really the answer to get drug prices down? i've got an editorial on that, coming up next. alerts -- wouldn't you like one from the market
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oral or nasal. stuart: as we say every day at this time, 10:00 in new york, 7:00 in california. a gain of a little better than half a percentage point. the big deal is this afternoon, at 2:00 eastern. that is when we figure out the federal reserve will raise interest rates today. then we'll try to figure out whether they will raise interest rates next year. as of right now though we're getting breaking news of great importance to realtors and housing market. it is pretty positive. ashley: up 5.32 million on annualized basis. that is better than estimated. it is up 2% from october. october was up from september, the first rise in six months of the bottom line, we had somewhat of a decline in existing home sales through much of the middle of the year but now it is
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picking up again. up in october. up in november. up 1.9%. stuart: wait a second, i have the numbers. down 7%. ashley: year-over-year. stuart: 7% down, that is a steady decline. ashley: we had a stellar year last year. month to month we're down slowly but comparison to last year it is down mortgage applications are down 5%. that speaks to the slump. stuart: we need a professional. ashley: yes we do. stuart: to sort this out for us and we've got one. where do you find a expert on short notice? you find it on "varney & company." this man is luke tilly. wilmington trust chief economist. got it. why is the housing market in such in disarray? i think it is in disarray. what is going on? >> people tend to buy houses using borrowed money with interest rates. when you see interest rates moving up it has a big impact on home sales. stuart: luke, come on, mortgage rates are 4.8%. >> they're low.
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but a big change from where they had been in the past. two times during this recovery, overall home sales, when you add together existing home sales, new home sales, they have been don't year-over-year. right now is one of those times. first time was after so-called taper tantrum, bond rates went up in 2013 and 2014. people respond to interest rates. that is what is hitting home sales. stuart: what about millenials. they don't want to buy homes? >> i heard that story a lot. millenials are fundamentally different. there are certainly some things about millenials are different. our view they are postponing a lot of purchases. that clearly has big impact on the housing market. we don't think it is fundamentally different. they are doing it in later in life and that is one of the impacts on the housing market. stuart: let's talk about fed rates. this is fed day as you know. we talked to our viewers, there is consensus, we will raise rates today, but we'll go easy next year.
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are you in line with that? >> we think they will raise rates later on. that is appropriate given where we are. stuart: with the data. >> absolutely. market has it priced in. it would probably cause more volatility if they were not to hike today. that would be a bit of a surprise. sure. stuart: i want to break in. suppose if they did not raise rates today, if they did what the president wants them to do, don't raise rates, i think the market would sell off. what say you? >> i think that the market would have a hard time digesting that information. for one thing, just on its face, rates not moving up, it should be a boon for equities. but the sort of bad news, what people would be wondering about is, did they cave to the pressure from the president or white house? stuart: are they independent? >> you certainly in the long run you don't want a central bank responding to whims -- stuart: you think the rate will go up today, yes, that is the right thing to do. what about next year? >> we do think they will need to slow the pace of rate hikes next year. this will be the fourth one this
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year if they hike later today. they already communicated they think the rate hikes will be sloyer next year but with three. we think it will be lower than that for a couple of reasons. stuart: okay. that will be communicated in the q&a with jay powell and the media. >> right it will be communicated. stuart: you will be one of those tea leaf readers. you are watching for every word and nuance? that is what you're looking for? >> we'll get the release of fed members projections how they adjusted their view from september. stuart: if you are right, they only go two rate increases next year, powell signals that i think the market foes up? >> i think that would be a good sign, absolutely. the fed will respond to a couple of things. one they're watching continued flattening of the yield curve. which i'm sure you're aware presaged each recession. stuart: don't buzz him. he is new to the show. anybody uses technical jargon
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like yield curve they get buzzedded. you know what i mean. you rephrase that. >> i will take my first buzz. [buzzer] when short term moves above longer term interest rates that happens before recession is. we're getting really, really close to that i think the fed is likely to see that and slow down the pace of rate hikes. stuart: good. you only got buzzed once. that is not bad. >> i appreciate it. stuart: you might come back. luke, thank for joining us. >> thanks for having me. stuart: fedex, big news, they're cutting their annual profit target. they started a voluntary program of buyouts for some employees. earlier this year, what a contrast, they were giving bonuses. my how times change. so why are they doing this, liz? >> they're basically saying global economic growth may be slowing down. and off its peak. so this is a, really, the canary in the coal mines for you know,
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world growth. fedex is saying this. it is at lows we haven't seen -- month of december alone, it dropped at a rate we haven't seen since january 2009. talking about the stock of fedex. stuart: wow, that is a big drop for fedex. luke is still with us. waiting for his next buzz no doubt. >> i'm not leaving until i hear more buzzes. stuart: fedex that is a nasty indicator after real slowdown worldwide. do you agree with that? >> it is a indicator of worldcom mers worldwide. their outlook going forward looks a lot weaker. that is indicative what we're expecting. it is slower growth in the two largest economies in the world, the u.s. and china. it is not recessionary level we believe but we're look forge a slowdown of 2019. that is coming through not only in fedex but other reports. stuart: another reason for the federal reserve to go easy next year. >> i suspect. stuart: luke, thank you very much for joining us again. we have another story.
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i think this is another pr nightmare for facebook. what is this, ash? they gave away data? ashley: they did to some big tech companies and many others. microsoft, netflix, spotify. gave access to user data including by the way private messages. even yours could be included. stuart: if i was on facebook. ashley: you're not on facebook. now you know why. gave netflix and the spotify the ability to read private messages. allowed microsoft search engine bing if anyone uses that, to see names of facebook friends without permission. 150 companies were added to the list, banks, tech companies, retailers, media organizations. "new york times" that did this report, back in 2011, facebook signed a deal with the ftc said they wouldn't share any of this with a third party without explicit permission. so "the times" reports, wait a minute, i think you just violated that. netflix did respond, not netflix, facebook responded to some media organizations saying
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look, the partnerships do not violate our users privacy which is not jelling with a lot of people saying wait a minute, how could that be. did you know that your private message, that your stuff was being handed out to 150 plus companies who could get access to some pretty personal stuff. stuart: facebook stock is down six cents. ashley: every day a negative headline. stuart: up day thus far because the announcement later on today could change that right now we're on the upside. facebook down a fraction. amazon down 15. ample up a few cents, 91 cents. google up 20 bucks. microsoft up as well. look at this, micron, a chipmaker, came out with a weak forecast. it is down 2.7%. how about the price of oil? i believe we're still around 46,
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no, $47 per barrel. we get the numbers on the amount of storage shortly. do look at mcdonald's. a nice pop after barclays, rbc both raised their price targets on that stock. mcdonald's up another half percentage point. and now this. you would think we'd learned lesson. government doesn't make things very well. it shouldn't be in the business of making anything at all, really. and experience bears that out. growing up in socialist england i learned early on government-made cars are not very good, and government-made steel is extremely expensive. nonetheless america's socialists are now demanding our government get into the business of making, drugs, pharmaceutical products, actually making them, the government. senator elizabeth warren introduced legislation. the senator wants the government to buy manufacturing rights to generic drugs, then start making
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them. she believes this is the way to get drug prices down. and these government drugs would carry, quote, a fair price, whatever that is. this would be a real departure for america. in europe government ownership of manufacturing operations is fairly common. heaven forbid it comes here. do you think these drug factories would be run efficiently? would prices really come down? efficiency and competitive pricing are not the hallmarks of socialism. there is speculation that senator warren will be a presidential candidate in 2020. her government-run drug factories are no doubt a plank in her campaign. quote, ownership of means of production, that is the classic socialist line. profits for the people, not for the wicked capitalists. that may sound attractive to someone who has never ever run a business but socialism doesn't work over there and it will not work over here. all right. you heard my little rant there. later this hour i will be joined
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by jason chaffetz. i will see if he agrees with what i've got to say. i know he will. the u.s. and china are planning to hold trade talks in january, negotiating a broader truce maybe. that is according to treasury secretary steve mnuchin but we'll talk to someone who says there is something china will never give up. what could that be? we will tell you. a "new york times" op-ed wondering if human extinction would be such a bad thing? really? all of that climate change. we're tackling it for you. you're watching the second hour of "varney & company." ♪ i'm ken jacobus, i'm the owner of good start packaging. we distribute environmentally-friendly packaging for restaurants. and we've grown substantially. so i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back.
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stuart: president trump is tweeting about his foundation that has been shut down. this is a series of tweets. i will go all the way through them. first off is this. the trump foundation has done great work and given away lots of money, both mine and others to great charities over years with me taking no fees, rents, salaries, et cetera. as usual i'm getting slammed by cuomo and dems in long-running civil lawsuit started by sleeze bag ag eric schneiderman who since resigned over horrific women abuse. when i wanted to close the foundation so has not to be in conflict with politics, shady eric was head of new yorkers for clinton and refused to even look
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at the corrupt clinton foundation. in any event he goes on and on and and the new ag, who is now being replaced by yet another ag who openly campaigned on a get trump agenda does little else but rant, rave, politic against me. we'll never be treated fairly by these people. total double standard of quote, unquote, justice. we went through the whole lot there. new impact on the market. we're still up 190 points now and rising. that is .8%. solid gain thus far today. general mills, cereal people, stock is up 5%. darden restaurants getting an up frayed to a buy from an investment firm. the stock is down 40 cents at $103. >> in this is a interesting headline from and in "the new york times." it is an op set, the title is,
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"would human extinction be a tragedy"? i guess i could answer that. liz, what is this about. liz: clem mon university law professor todd may put it up. human beings causing large parts inhabitable earth. causing suffering to animals that inhabit it. would it be a tragedy if human species elimination would be a good thing. never mind, human beings given reason, art, science to the world. stuart: really extreme, isn't it? to pose a question like that. liz: that might be an understatement. stuart: i need help covering this. who better to bring in former state department advisor christian whiton. your thoughts on "the new york times" and their op-ed, what do you say? >> i remember when "the new york times" was only rooting against the united states of america as they do whenever they're at war.
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they broaden the their horizons rooting against all humanity. the punch line is climate change, other environmental destruction, putting aside advances in science. the fact we get more energy, more progress with less impact on the environment every year. it goes to show this climate change is really much more about becoming its own type of state religion. it is a philosophy more than it is any sort of compilation of science. stuart: but they failed to get the public on their side. granted a lot of people think it is an important issue but when actually, you start to do something about climate change, raising carbon taxes or energy prices, they don't want it. it is a hysterical reaction, and i don't think doing their cause much good. >> it isn't. again, all of these things, you have seen climate change in the news recently. there was just a booing hootennanny one every year, conference of parties for u.n.
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framework in climate change, met in poland. came up rule book to implement the paris accords. it is phony, doesn't require china, indonesia, india, big carbon emitters, we're a big carbon emitter but we get more efficient every year. instead after approach that embraces science and technology, in the private sector they want to put government bureaucratses in charge of the economy and energy. stuart: i want to break in for the producer. christian, forgive me, i want to forgive this. senate majority leader mitch mcconnell, he just tweeted this, and let me read it to you, put it up there please, i need to see it. can i see it, please? okay. later this morning -- read it for me. ashley: later this morning will introduce a continuing resolution that will insure continuous funding for the federal government mitch mcconnell says. the measure will provide the resources necessary to continue normal operations through february the 8th. stuart: i suspect that is why the stock market just put
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another leg up to 200 point gain because it looks like we're going to get a cr, continuing resolution avoid government shutdown. liz: kicking it to february. stuart: no government shutdown. kick it down the road. the market likes it. we're up 200. back to christian whiton, this is really important one to me. president trump is going to davos again. he is going next month. i love it. what about you? >> it will be good. last year he went and really kind of just explained his point of view, sort of countergloballist point of view. this time you get a lot of complaining again. we saw a little bit of this already when ministers talked about change at the world trade organization. it turned into a big complaining session about the u.s. on trade. really these people should be grateful donald trump is pushing, particularly on china. the u.s. is really, we're sticking our necks out. we're trying to get china to respect intellectual property and reform. i'm not sure it is going to work. we should be grateful we're
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trying. stuart: i think he will have a big impact. taking mostly of his cabinet, certainly big hitters in the cabinet going with him. a big impact there. >> commerce secretary going with him as well as ivanka his daughter, and jared kushner. i think this is a important signal. we are going to engage. we're not going to accept the status quo. donald trump is one of the most popular political figures going over. certainly one of most powerful compared to macron or may or empress of europe, angela merkel, outgoing empress. stuart: empress? christian, you're out there, aren't lawed? christian, thanks for joining us. i won't be in davos. i will look forward to the president going there for me. >> thank you. stuart: we have this one for you, elon musk unveiling the high speed underground tunnel in los angeles. he did this last night. ashley: yes. stuart: fox business by the way was on the ground there. i wonder if people will really
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use this? we'll take a look at the tunnel. later this hour, one ceo handing out millions of bonuses to his employ reese. that ceo will join us in a moment. ♪ hi i'm joan lunden.
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stuart: getting our first look at elon musk's boring campus for underground tunnel. he says it could alleviate traffic in los angeles. good luck with that hillary vaughn is live in hawthorne where she got a sneak-peek. tell us about it? reporter: this tunnel could be bring more to the surface than
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getting rid of gridlock t could help city planners map out utilities. the magic here, musk's boring machine, stronger, 15 times faster, super efficient all electric. simultaneously digs and builds the tunnel as it works through the earth and uses earth it digs up to build concrete slabs to line the tunnel. this lets musk build a tunnel system and public transportation network at one 10th of the cost today? >> don't normally, tunnels cost up to billion dollars. sort of like, a discount tunnel would be $200 million. we're able to build this tunnel for about $10 million. reporter: the plan to let drivers zip through traffic free tunnels at 50 miles an hour. there is a catch, only electric self-driving cars are allowed. musk says there will be public transportation vehicles constantly cycle through the fun nils. people can ride for dirt cheap,
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about a dollar a ride. they heard from as many as 20 municipalities, hearing cities want these tunnels. chicago is expected to be the first, stuart. stuart: thank you very much, hillary. now this, nigel farage, i will call him mr. brexit. he is going to be on the set with me here in new york. i want to know what he thinks of all these contingency plans that europe is making, calling up the troops for heaven's sake, if britain's brexit is, what does nigel think about that? we'll be right back. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems.
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♪ say you want a revolution stuart: taking a guess which beatles song will be played. ashley got it right. ashley: thank you very much. stuart: there are two versions of the song. one they slow down and this is the original version. liz: i hope you will not sing either of them. stuart: i will not do that. 200 point gain for the dow jones industrials. that may may change today as this it fed day whether or not the fed raises rates or night. we have news on how much oil america has in storage. ashley: we do indeed and we are down 497,000 barrels, close to half a million. the expectation was down 2 1/2 million. so we have, you know, we don't have a bigger drawdown as we thought we would. that's the bottom line. very exciting. liz: riveting. stuart: that's it?
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wow. ashley: i thought it was exciting, come on. liz: i thought it was riveting. stuart: viewers watching this show. ashley: it's a revolution. revolution, baby. stuart: not much after drawdown. we're at $47 per barrel. check the markets again. now we'll keep the viewers. we have a gain of 200 points for the dow industrials. ashley: thanks to me. stuart: no, it wasn't. it was thanks to mitch mcconnell, senate majority leader, he tweeted just about half hour ago he is planning on introducing a bill today to keep the government funding all the way through february 8th. that essentially means no government shutdown. we're up 213 points. we have a star economist with us now. the gentleman on right-hand side of your screen, ken rogoff, former chief economist at the imf let me look towards next year, ken, if i may. i would like to see 3% growth
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for the united states. can we get there? >> i think it's plausible. i think the u.s. economy is doing fine. the question will the rest of the world have a, you know, pickup? europe slowed down. china probably slowed down a lot. i'm optimistic europe could pick up. that would help us, china, who knows. i think if the trade war can get resolved, things could be pretty good. stuart: okay. so what about interest rates? the federal reserve is going to tell us today whether they're raising rates now. they will give us some indication whether they will raise them next year. the consensus seems to be, yes, a rise today, but go easy next year. are you in line with that kind of consensus? >> well, if i were them, and could backtrack i would probably would be waiting right now. i think the risks of overtightening are greater than the risks of going too slow. but that said, they have this communications policy.
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they have broadcast this. they have said they are going to do it. i don't think there is anything out there, you know, nearly strong enough to make them backtrack. the question is, what are they going to say about next year? how are they going to recognize this slowdown, particularly in china? i think we will see something. but, you know, that said, i think there is a fair chance the global economy could pick up next year and we could end up seeing three hikes. but that would be fine. stuart: now the global economy could pick up next year if we get a settlement of the trade fight. i take it that's a big caveat here? >> more generally, who knows what is going on in china? the data is very murky. i think it is clear they have slowed down quite a bit more than the official numbers suggest. they have real problems. they have for a long time. you can't just, you know, grow to the moon. they may have hit peak housing.
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they have trouble expanding credit. they need to strengthen their private sector. they haven't done that. there are ways they could do very well but there is, you know, every chance, their slowdown will continue. stuart: amongst the major economies in the world, is america the standout, the best performer? >> oh, easily. i mean, the u.s. has been the country outperformed this year. europe, sort of gone back to normal, really. it was growing very rapidly last year. you know, at the beginning of this year. and, i think, all the big action is eminating out of china and asia. that is where all uncertainty is. i've been on your show, stuart. i certainly said china is the biggest risk to the global economy. that is doubly true today. stuart: i don't know whether you will go to davos in january of next year. i suspect you've been frequently. >> i am. stuart: you're going?
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what do you think will be the impact of president trump? because he's going? he announced that today, i think, he is taking most of cabinet with him. i think it will be a big impact. i think he will say i told you so. what do you think? >> i think it is very positive having him go there. he sort of has this thing about not wanting to engage the global economy but when he goes to davos he is very much in sales mode and the tenor of his comments last year were very different than what he says out of washington. for example, last year he said, well, maybe i will sign the trans-pacific free-trade agreement. he didn't. maybe i can think about some things i wouldn't normally. i think it will tend to be positive as far as the rest of the world goes. whether this is just an act for them and doesn't have any significance, you can decide. stuart: i want to see him shake things up as he always does.
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he does. just love it. i mean i just like that kind of thing, i'm sorry, but i do. ken rogoff. >> i can understand that from your position. stuart: exactly. ken rogoff, thank you very much for joining us sir. we wish you well in davos with the president. thank you, sir. >> seasons greetings to you and your team, stuart. stuart: indeed to you. appreciate it. i will stay on the issue of trade because the clock is ticking on that 90-day deadline to reach a deal with china. stephen moser, author of the book, the bully of asia, which if i'm not mistaken is china. you say one thing china will never, ever, agree to. what is it? >> oh my, stuart. how much time do we have? you recall, you recall when president xi sat down with president trump eyeball to eyeball, man to man, he went over a list of 140 items and
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promised that china would change its behavior on almost everyone. now robert lighthizer in his 301 report basically listed 50 areas in which china was taking advantage of the united states. china was cheating. you can summarize his report saying that china cheats. which one of those 140 promises won't he keep? the one that is most vital to china's plan to dominate asia and dominate the world of the future in high-tech terms is clearly the cyber espionage aspect. cyber enabled technology theft. has enabled them to leapfrog whole generations of military technology, industrial technology, and computer software technology. so that's what they will not give up. people need to realize every day there are at least 100,000 government-paid hackers who go to work in their keyboards
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industriously away at not just private companies, military contractors, government agencies, but private individual account as well. this massive cyber enabled technology theft is something china won't give up. we have already seen that. three years ago president xi told president obama they would stop doing it. the only thing they did at that time, stuart, they renamed the agencies that were carrying out the cyberattacks. they ditched one bureaucratic designation and used another. it was simply a shell game to confuse us what was actually going on. stuart: if that is the hard bottom line, they will not give up their technology espionage so to speak, is a deal possible? will president trump let him get away with that? >> well, i don't think we can let them get away with it, because it means giving up high-tech dominance in the 21st century. giving up, turning over the crown jewels of our innovation to china, on the cheap of course because they're not paying for
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them. what i think we will reach by march 1st an agreement to reduce the trade deficit by china to buy more american-made goods. as far as we're concerned we simply have to get a lot smarter stopping this cyber espionage. we need to work with our partners, japan, south korea, the english-speaking countries around the world have already come together said we'll not use huawei's 5g equipment. that will give the chinese government the inside track to controlling the economy and assuring economic dominance for them in the future. we have to simply do a lot more of that. we have to be a lot smarter. stuart: we got it. thanks very much indeed, steven moser. thanks very much, sir. i have got this for you, customs and border protection just discovered an illegal cross-border tunnel in arizona. i want to know if this tunnel was for drugs or people? we're on the story for sure. senator elizabeth warren wants the government to buy
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manufacturing rights for generic drugs and have the government make those generic drugs. i say the government shouldn't be in the position of making anything. that is my position. more in a moment. ♪
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♪ ashley: senator elizabeth warren wants the federal government to be provider of prescription drugs. in the last hour herman cain told us that is the last thing the american people need. take a listen. >> you and i know, promised government solutions for those kinds of things do not work. here is an example, stuart. when they pushed obamacare down our throats, americans were frustrated, some of them, not all of them.
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they were frustrated with the cost of health insurance. so the democrats broke the health insurance system. now they expect republicans to fix it. and so she is going after another area of frustration as part of her move toward socialism. that is all she is doing. it is a bad idea. ♪
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stuart: 200 point gain. mitch mcconnell will provide government keep money going until february, so no government shutdowns. that is a plus. it is fed day. we'll get news on rates and rate rises. senator elizabeth warren, wants the government to become a drugmaker, actually manufacture drugs. former utah congressman, fox news contributor jason
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chaffetz. i think is a real departure for america. there is a tradition in europe, yeah the government actually makes things but not here. i think it is terrible. what say you? >> oh it is a horrific idea. they can't even run amtrak. what makes you think you can make pharmaceuticals. you can't get an online appointment at veterans administration. go fix the va first before you get into the manufacturing business, senator warren. it's a terrible idea. stuart: and yet i think it could be politically attractive. if you say i will get this stuff to you, cheaper, no matter what it takes, you will get your insulin, one of the generic things they're trying to produce, if you say i can get it to you cheaper, you can win votes that way? >> bell the senator is being core to her belief all solutions involve the government. the government can change the law. in fact we had hearings on this when i was chairman of the oversight committee. there are multithings they can
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do to loosen up requirements to be more competition and more players in the generic drug categories. but thus far congress is unwilling to make those moves, to allow the competition to come more readily into the marketplace. stuart: i think republicans have been rather weak on this. >> yes. stuart: they have not come up with a plan to replace obamacare. this is the achilles' heel of the republicans in 2020, i think. what say you? >> yeah. i think they blew it in the last election. there should have been a distinct, here are two or three things we need to do. republicans need to grab ahold of that man tell, every single member of the house and senate, this is what we'll do to reduce the cost of pharmaceuticals for you, the american people. then actually do it. i wish they would go forward and do that and i also think they have to deal with preexisting conditions and being able to purchase insurance plans across state lines. if they could just do those three things, i think it would
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be a winning message in 2020. stuart: you missed something out, jason, tort reform. if you can take a little bit of the lawyers, take a little bit out of the health care system i think that would be a good way getting costs down? >> i totally agree that the democrats are wed to those personal injuries attorneys. they won't want to go there at all. this could be a wedge issue that the republicans could push for, totally agree, that that could be another pillar that the republicans -- but they haven't been succinct. they haven't been able to repeat it en masse and pass legislation behind it. that's obvious. stuart: forgive me for asking, jason, i will go off base for a second here, are you happy having retired and left congress? >> oh, yes. ply blood pressure has gone way down. i don't have to go out and fund raise. i could talk english football with you and ashley. i love it. it's good. ashley: there you go. stuart: unfortunately you're a man city kind of guy, aren't
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you? >> well they are the better team. ashley: oh. stuart: okay. it's over. all over. >> who won the cup between the two? i can't remember. i think it was, man city. ashley: ah. stuart: sarcasm is a low form of wit as you well know, young man. i'm glad you're enjoying your retirement. come back on the show anytime you're available. thank you, jason. thank you, sir. >> thank you. stuart: some colleges trying to teach students it is okay to fail. this is coming at me. i don't know this story, ashley. ashley: interesting. a number of colleges saying it is okay, there is no shame in failing. van per dealt, princeton, other schools offer workshops -- vanderbilt. florida state university, fsu requiring students to complete online program addressing stresses. they don't mow how to move on from moments of failure. they say social media playing a
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role. everyone is having a perfect life and you're not. that is very powerful emotion. parents who are overprotective of their kids. they haven't had to face failure that much. pricey college, you're under pressure to do well in academics. all of those things. they're encouraging teachers tell stories of failure. they can be funny but it is no shame to try and fail. that is the message. stuart: it's a good message. it really is. we all fail at something somewhere along the line. ashley: of course. stuart: it is how you deal with it that counts. liz: that's life. stuart: in my personal opinion. i have had my fair share of failures. a string of them, for heaven's sakes. let's move on, shall we? [laughter]. one ceo who is giving back this holiday season. literally giving back millions, plural, millions of dollars in cash bonuses. the money is going to his employees. we like these kind of stories.
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it is the holiday season. we'll bring you the full story in a moment. briefly the check the market. we're up 180 points as we speak, back in a moment. ♪ what if numbers tell only half the story? at t. rowe price, hundreds of our experts go beyond the
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stuart: i believe this is the high of the day. we're now up 226 points. that is the best part of a 1% gain. look at winnebago. their sales are up. they have increased their dividend a little from 10 to 11 cents a share. the stock is a gain of 11%. that's winnebago for you. this is story you want to hear about during the holidays.
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floracraft, they manufacture products for the craft and floral industries. the company did something at the holiday party. he gave his employees, nearly $4 million. we happen to have lee shona. he is floracraft's owner. i have to get the name right. good to see you, sir. >> thanks very much. thanks for having me. stuart: take us through it, will you. you walked into the holiday party. did the ememployees know they were going to get some money or did you spring it on them? >> they did know it. i think that since i was coming back from florida, and they realized, well something is going on. i thought to myself, you know, i'll bet they're thinking i'm going to sell the company. so when i made the announcement as what i was going to do, it was quite a reaction. stuart: how many employees have
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you got to split $4 million? what i'm really asking, how much did each get? >> well, each one, we have about 200 employees and, depends on how long they have been with us, what they're going to get. but the average would be probably 15 to $20,000. those have been with me longer, are going to get 60,000 plus. stuart: whoa. whoa. >> so -- stuart: i take it there were some big smiles at the holiday party? >> there were smiles. there was cheering. there were tears. in fact it brought tears to my eyes too. this is the most, best christmas i ever had too. stuart: why did you do it? >> well, joan, my wife and i have, have made some charitable contributions locally and every
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time that we did that i realized that you know, the reason i can do this is because the company is successful. why is it successful? a lot of reasons, but one of the biggest reasons is the employees that i have. they're hard-working, and they're loyal. i couldn't ask for a better team than i have. so i thought, i ought to do something just for them to really show that i appreciate them. stuart: i think you're a good man. i think you did a wonderful thing. and now i want to ask you about your product. i buy flowers, and often when i buy flowers, there is this green foam in the bottom of the vase or vase, whatever the pronunciation, you stick the flowers into the green foam. you make that foam, don't you? >> that is one of the things that we make. water absorbent foam for fresh flowers. we make foams for permanent flowers, et cetera, are used instead of the fresh.
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so, we do things for the home decor industry. so we make quite a few items and import some also. stuart: supposing i wanted to buy some of this foam, could i get it cheaper from china instead of buying from you? >> i don't think so. and one of the things that protects us it is the fact it is so lightweight and cost of shipping is so great it kind of protects us from that market, although some shows up once in a while, but it hasn't been meaningful. stuart: lee, we think your product is great, we think you're a fine man and what you did was adjuster risk. anytime you want to come back on this program, you, sir, are welcome. >> well, thank you, thank you very much. stuart: sure thing. lee shoerer, floracraft. big board close to the high of the day, 210 points higher. remember at 2:00 this afternoon, we get the announcement on
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interest rates. the market could change, depending what we hear. president trump is heading back to the belly of the beast. he is going to davos where all the global elites will gather. bringing almost his entire cabinet with him. i think it's a terrific thing. my editorial next. ♪ there are chefs, bakers and food order takers. doctors and surgeons and all the life savers. the world is alive as you can see, this time of the year is so much more than a bow and a tree. (morgan vo) those who give their best, deserve the best. get up to a $1,250 credit on select models now during the season of audi sales event. ..
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stuart: it's back to the belly of the beast. president trump returns to dallas next month. for those of you do not follow the globally closely, tablas is the annual great gathering of the rich and powerful. it is all liberalism all the time with a sprinkling of climate change worry income inequality anxiety and open borders nonsense. putting trump, putting donald trump in the middle of all that is like putting a cat among the pigeons if you're allowed to say those things these days. our president stands for everything dallas does not.
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he went last year to get a big speech. he really stirred things up. he talked about tax cuts, job creation and holds a good idea to bring a business guy into the oval office. the audience was having none of it appeared they knew there is a new sheriff in town and a new president trump is not one of them. this year, the president is taking all the big hitters in his cabinet with him. treasury secretary mnuchin, nielsen, ivanka and jarrod are going to appear at now there's impact spirit our president will present his worldview to the elites and he'll do it in a struggling europe. he will stand in front of the wallace business leaders and tell them about our booming economy, which is in stark contrast to the malaise elsewhere. i think he's going to make a big splash. good. in a failing world, that's exactly what our president should be doing.
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the third hour of "varney & company" is about to begin. all right, 15 minutes from now, nigel farage will be with us here in the studio. we're going to talk to mr. trump going to davos doubletalk brexit as well. check the big award. this is within a couple points of the high of the day. 220 on the upside for the dow industrials. the market did get a bump after mitch mcconnell said he is going to introduce a stopgap funding bill that will stop any kind of government shutdown. now we're waiting for the fed to make a decision on interest rates. i've been talking about the consensus view, what we're likely to get according to the consensus is a rate hike today, but we go easy on rate hikes next year. joining us now is the ceo at trend macro.
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let me start with this. you don't think the fed should raise rates at all today, do you? >> i don't think they should and you heard it here first. i don't think they will. i think we'll have a big bullish surprise and all you've got to do is go back to what fed chair jerome powell himself says about what kind policy. the most important thing he watches as the 10 year treasury yield good he said this on july 17th of this year and when the fed funds rate starts bumping against the 10 year yield, which is what it will be doing now, that means you're too tight. so the 10 year yield has come down like what, 40 basis points in the last two months. it is sending him a signal saying just take a cause. after all, you'll have a press conference in january, right? if it turns out you kind of regretted it, we'll see you in six weeks. you can do your rate hike then. i don't think it's going to
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happen. it will surprise the market and all the people to davos and it will be great. stuart: i love your pronunciation. i'll take issue with one thing. if you're right and the fed does not raise rates today, i don't think the market goes up. the market could actually come down because it would signal a slowdown in the global economy and it may signal the fed is not as independent as they like to be. they take their marching orders from president trump. quick 20 seconds to you on that. >> i don't know why any investor would take his cues from whether the fed is optimistic or pessimistic. no institution in the issue of the human race with the worst forecasting record here just throw that one right out. stuart: stay there, please. we'll get back to you in just a moment. we have gotten is of another canadian -- liz: a third.
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we don't know the name or identity of this individual, that canada is now confirming a third individual has been detained by china. so this is a hostage diplomacy. this is what's going on and it's escalating. china has warned of grave consequences if the huawei cfo is not returned to china. she is out on dell, but this is again the third in canada not confirming again if this is a diplomat or a notch for newer as other individuals from canada. so this is an escalating situation. canada and china are trying to do a trade deal and it looks like this is really problematic for that. stuart: donald, come back into this. the third canadian detained in china. that is going to make a trade deal more difficult, is it? >> i don't think so. at our request when they detained, and jesse called by capturing the queen.
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which side you want to be on? stuart: it's an interesting piece of diplomacy. hostagetaking in treating human beings like this. >> hostagetaking is diplomacy by other means. stuart: you're holding to it. america holds the upper hand can you think we'll get a deal? >> look at the global reaction we've gotten since the arrest. every allied country has come out in bed, yet, we are going to stop whining huawei products that address by chips in them. all the nations horribly silent but offered no support at all on our trade initiatives on the security stuff bill steve breda appeared we are starting to put together a coalition of the willing that starting to create a tapestry of a trade war and a security work is going to work together to put china back in its place among the community of nations. this would be good for the world and good for china.
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stuart: donald, thank you for joining us. dramatic statement and we appreciate it. i want to check the price of oil. about 40 minutes ago we got the latest read on how much oil would not in storage. we drew down about a half a million barrels are the not much of a change. the price of oil has gone up. forty-seven dollars a barrel as we speak. i'll tell you about gas prices. we've had a 69 days straight when every single day for 69 days the price has gone down. well, the streak is over. it's caused. we have the same price nationally for gas now as we had yesterday to the downward streak is over. however, i'm going to tell you this. missouri has the cheapest gas in the nation. $1.94 per gallon and that is the average of the gas station and the estate. there are 28 states now whether it's one gas station or you can buy a gallon of gas for $1.99 or
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less. i promised you a map. not quite sure it's going to make it. there it is. there you go. right down the middle of the country is at least one gas station in the states read and get it for $1.99 or less. stuart: what a time to be alive. >> that is sarcasm, liz. >> no it's not. i'm happy to be alive. stuart: grover using now driverless vehicles to deliver groceries in scottsdale, arizona. they're partnering with a couple called narrow. they make the car. compass timorous pay $6 the same day for next day delivery. no minimum order requirement. by the way, the mayor scott still joins us tomorrow morning in our 9:00 hour. we're going to get whacked to president trump going to davos next month. he'll tell the world business
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leaders about our booming economy. he's going to give them to us. i think it's great. my question is this. what does nigel farage thing? he's on the show in the studio coming up shortly. what does he think about trump? the presidential election taken shape in the current leading candidates are all moving in my opinion to the left. elizabeth warren call for the government to make manufacture generic drugs. we'll talk about that one. this is the time of year when you decide where to put your 401(k) money next year and with all the volatility in the market, you may not be so sure about where you want to put it. look at some good advice for you. from fidelity and a moment. ♪ air velocity is reading at fifteen fpm.
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so you don't have to stash antacids here... here... or here. kick your antacid habit with prilosec otc. one pill a day, 24 hours, zero heartburn. stuart: the senate passed the criminal justice reform bill which gives judges more leeway when sentencing drug offenders in this rehabilitation for prisoners. i believe that six acted to lower the federal prison population by 50,000 about 10 years. the president reading about this and here's what he has to say today. america is the greatest country in the world and my job is to fight for all citizens even though those have made mistakes.
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congratulations to the senate on the bipartisan passing of an historic criminal justice reform bill. this will keep our community safer and provide hope and a second chance of those who earn it. in addition to everything else, billions of dollars will be saved. i look forward to signing this into law. he likes it, he'll sign it. that's an editorial at the top of the hour all about president trump who is going to go to davos next month. i say he's going to stick it to the elite. nigel farage is that that's actually he's on the side. but, i think it's great that our president goes to face the elite head-on. how did you do last year? >> you did well. you see, the globally think those of us who believe the nationstate is the right building block somehow want to build a wall around ourselves to the whole world there were not for trade, not for business.
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we are. it's just that what we recognize as we want national democracy, not global bureaucracy. i think what trump did last year actually surprise some people. he genuinely surprised some people by showing he believes in america first but not america alone. that was the message that came out last year. this is a wonderful opportunity because president macron six weeks ago used the armistice to lecture the world about the evils of nationalism, about why we should all sign up to a higher global order. this was then followed by five weeks -- here's a wonderful chance. big can come from trump to say actually we need to work together with neighbors. in the western world.
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the hard exits out of europe without a deal. we are being told if you crash out the drinking water may not be fit to drink. planes won't like reminiscence will run out. just scaremongering. if we move. if we move to trading with europe on world trade organizations what is happening. we tried america all that means is terrorist. manufactured goods. average 3%, 3.5%. at the end of the day goods are
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bought and sold across the world not because of governments. they are part because the consumer likes a good, likes its reliability and price than he or she will buy it. they are trying to stop us break free. the referendum wasn't about voting for any deal could the referendum was about leaving the european union. frankly a clean break. we are able to make our own rules, choose their own relationships across the world. in short-term could there be some disruption. stuart: are the brakes repaired for the short-term disruption? >> would've been a lot -- there a lot worse in the history. stuart: i know these things. >> you will be a liberation or forget it. the problem is will parliament
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allow that to happen? this is where we are. mrs. may negotiated a withdrawal agreement that was wrapping us back into the european union rules, possibly for the next decade or more. she didn't put it in the house of commons because of it that have gotten voted down by huge number. bring setback on the 14th of january. if that fails again, which i believe that well, they're than two choices choices. one if we leave on the hard exits or the kleenex as i would call it, the other is a second referendum and that's where we are. i think coming up is going to be one of the most important political moments in modern british history. trying to guess it is. and ashley webster is going to go over there. we certainly will. stuart: nigel -- [inaudible] be appreciated. thank you very much. individual markets and products look at this.
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bitcoin out. gold still around $12.50. his gun up to 12.60. and now this. customs and border protection within a legal cross-border tunnel in arizona. i want to know if the tunnel is for drugs or people. we'll talk to the border patrol council about this tunnel here. first, check out this. elon musk's boring company unveiled its first test tunnel last night. you're looking at it. and we have oprah winfrey. she is number three on "forbes" list of the wealthiest celebrities. she is worth to point a billion dollars. we have the other numbers for you coming up in a moment. ♪
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stuart: we asked users to wealthiest celebrities? the answer is that "star wars" creator george luke is. he's got an estimated net worth of $5.4 billion. number two, steven spielberg's net worth reappoint $7 billion earbuds round out the top five. oprah to point a billion, michael jordan one 37 billion, kylie jenner $900 million. they can all afford one of these. selling a $35,000 as part of its new everyday objects collection. that is what it's made of. you can have it engraved for an additional cost. it is a work of art.
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>> i thought it was a watering can. did you? stuart: check out fedex. they got their profit target offering buyouts. they say a slowdown in global trade is hurting their business and look at.. fedex down 10%. now look at apple. iphone sales reportedly flat and so is the stock. virtually no change up 166 is the price. the 2020th presidential election already taking place. leading democrats are moving to the left, the far left. the latest is elizabeth warren wants the government to manufacture, to make generic drugs. we're on it. and this is the time of year or it will be in january when you can decide where to put your 401(k) money. stocks, bonds, would you want to do? with all the market you need some advice and was gone before you. fidelity on your 401(k) money coming up for you.
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stuart: still up nicely a gain of about three quarters of 1% up 170 points. up ahead of today's fed meeting, the expert patient is that they will raise rates today, but go easy next year is the consensus. i think the market kind of likes that. now we are waiting to see exactly what happens at 2:00 when we get the real news. this is the time of your order will be in early january when you can decide where you want your 401(k) money to go, your
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retirement money. stocks, bonds, cash or a mix of all three. with all of this volatility in the market, he may not be sure where to put your money. he is with fidelity. they are big in the 401(k) business and is at the today. you get to choose our allocation. depending upon your age of course. someone who is 60, 65. one of our viewers. should they be putting more of their 401(k) money into stocks or less? >> the closer you get to needing the money, the more conservative you should become. the thing to keep in mind is retirement -- we're living longer in retirement. we want to make sure that you maintain equity exposure and you can have an inflation hedge. 68, 65% is age-appropriate.
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he's got a lot of money control -- stuart: you're 60 years old. you'll be comfortable with about 60 to 65% of their 401(k) money in stocks. and that doesn't depend on your outlook for stocks. planar pension money right. the 401(k) plan in most cases you have options for mutual funds and asset allocation programs. it may take all the guesswork out of making sure you maintain the asset allocation or you could even have a managed portfolio in a 401(k) plan. so you're not reacting to the stock market. you're staying true to your target risk and again you don't want to be too conservative just because you're approaching retirement age is the money has to continue to grow for a long time. stuart: you hope you will for a long, long time. it's a good point. if you've reached the age of 65, i think your life expectancy is about another 20 odd years.
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is that right? living longer. so you're going to make it stretch out over 20 years. you can take a little bit of risk in stocks. >> the one concern many investors have as they get closer to retirement is withdrawing money into the market. one of the ways people protect themselves as they made sure they got maybe three to five years worth of living expenses in a safer bucket so to speak. that is one way to make sure number one you can grow your money because the biggest concern americans have about retirement is running out of money. number one biggest concern. you don't want to be too conservative. stuart: i've got a pet peeve with retirement plans. i'm going to tell you all about it. i'm going to be 70.5 in january. that means i've got to start taking money. they forced me to take money out of my retirement savings.
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i think it's about 4% a year that i've got take out no matter what appeared i don't want to do that. there's no way around it, is it? >> there's no way around it to the required minimum distribution rules are little bit complicated. most people know they have to do it, but a lot of people don't know how to calculate it, how much do i really have to take out? so right now you are required to do that. there's some strategies that can come into play. you can annuitize some of that money. there's some strategies you can use. most people would not take the money out if they didn't have to. >> i don't want to. i'm still working. i might come and see you. if you're not careful i will. fidelity. we appreciate you being with us. now, your credit score is likely going up next year.
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that's because experience is going to start counting cell phone payment. what's that going to do with my credit score? it will be a boost. they're telling me keep reading all find it. it will be a boost because most people pay their phone bills on time since they don't want to lose service. utility payments will also be factored in for the first time. politics. let me get into some nitty-gritty. the 2020th presidential election taking shape in the leading democratic candidate all going to the far, far left. elizabeth warren, for example wants the government to manufacture, get into the factory business and make generic drugs are the aforementioned doug schoen is with me now. >> i can't think of a worse idea .
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exactly. i don't think the american people, even the most left-wing people want to nationalize pharmaceutical manufacturing production and distribution. stuart: but they want lower drug prices. that's what the good editor is offering you not jump at it. >> have you ever seen a case for government getting into a business does it cheaper than private enterprise? >> you forget i come from socialist britain. >> i got myself a private doctor right away. and because it doesn't work and what i think my friends on the democratic left don't understand is that while it sounds good medicare for all as a practical matter it's a financial animal just tickled disaster for the health care system. stuart: but other candidates are going to the left in a different way. they're handing out free money. corey booker, for example wants to give every newborn baby in america $1000, just give that to
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him with an interest-bearing account in the government would have maybe 2000 years to it so you've got a steak when you turn 18 or 21. the far left wants it. >> some on the far left. i've looked at this closely. the energy and enthusiasm in the party on the far left. a healthy percentage of us who are sort of moderate liberals who reject outright socialism. stuart: i remember that from way back when. when it comes to the primaries in deciding who your candidate is going to be, the far left is going to command very solid and they will put a far left candidate into the running. >> right now is divided the far less support between bernie, the aforementioned elizabeth warren. the newly assertive sub six.
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kamala harris. >> free money. >> release the earned income tax credit requires work, stuart. that is something that is a republican program started by ronald reagan and i tend to like it. free money, free health care. this will go down politically, and ultimately in terms of the 2010 election. go into florida as well happily willingly. stuart: are you going to stay down there? i'm just interested. you would gain enormously untaxed ways if you lived in florida. you've got nothing to gain by living a knee-jerk. you can come back soon. this is crunch time for
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retailers. christmas less than a week away. jeff flock is with us. actually he's had a lamp and distribution center in wisconsin. there he is. how is the catalog business doing? >> well, businesses booming. you wear the pants are loose or broadcast. i don't know about your house or i would show you something you've never seen before. this is a having department at lands end. look what this guy is doing. he's measuring out your pants, sticking them through the thing there. puts it in the machine, measures that and then cuts it right like that. they are doing this all over. this whole joint is full of pants. backed by the way is the end. they recycle those by the way. and then they come over here. i guess gray is a big color apparently this year. put them in the machine to have
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them. i don't know if we can see one go. there you see. the pants are hand. and then they bring them over here where they get packed and shipped out to you. six straight quarters of growth. here is the deal and the thing i want to leave you with. by the way up at the head of design here. you have returned lands end to its iconic american roots. this is an iconic company who tries to get fancy with all the fancy fashion. >> it didn't work because we are really an american heritage brand. we went back to our roots, back to our archives and it's been amazing. timeless classic pieces. we reinvented them. and they love it. stuart: i want to show stuart the hole in the remedy of this place. this is their busiest time of the year. look at this.
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i've got an entire room of pants. it's crazy. as i said, six straight quarters of growth robust quarter was a big one for them and they've done it by, look at this, american jobs, folks here from wisconsin. some of these people worked here for 40 years and are happy to do it. the main christmas season. jaime and i guess. sure into whatever you say. that was good stuff. an interesting report on having of pants. jeff, we'll be back to you later. thank you very much. more serious now, customs and border protection just discovered an illegal cross-border tunnel in arizona. i want to know if this is her drugs or people. we would talk to the border patrol council in a moment. as your holiday travel begins, we have a list of the most stressful airports in the country. i'm flying friday.
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looks like congress may have been able to avoid a partial government shutdown. mitch mcconnell is going to introduce a short-term spending bill that would fund the government early february. the president is not getting his $5 billion for the wall. that's not good. we'll be right back. ♪ what if numbers tell only half the story? at t. rowe price, hundreds of our experts go beyond the numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story. t. rowe price. invest with confidence.
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>> kellyanne conway not holding back when talking about congress. even republicans when it comes to the fight for border while funding. roll tape. >> he is a responsibility to keep the government moving forward and a responsibility to get border security. if you can do it by himself he would've done it already. we are relying on a congress that has proven many times like the tax reform regulation, obviously too great supreme court justices are willing to, then make the move. yesterday the historic criminal justice reform, but on this they're walking away. i think that is lost to be honest with you.
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stuart: president trump is treating the most serious this morning. he says we have defeated isis anterior. my only reason for being there referring to american troops there during the term presidency after it was announced that maybe they would prepare to pull the 2000 troops out of syria. in response, lindsey graham republican said isis is not defeated in syria, iraq war in
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afghanistan. the president reading about the wall again and here is factory. far more money coming to the u.s. because of the dangerous borders including large-scale criminal and drug inflow, the united states military will build the wall. meanwhile, the border people have discovered a cross-border tunnel in arizona. vice president of the border patrol council. how big it, was that? we saw some video there. how big was it in what was that for? people or drugs or both? >> that's the big question is what was that for? that is why agents out there actually make physical apprehensions has always been a big issue. people seem to think it's just individuals crossing our border that just want a better life, but we do not know that.
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this tunnel is a big example. we don't know exactly what they're crossing. they could be crusting drugs, people, but wouldn't she want to know what is coming into your country? wouldn't you want to know what's coming into your homes and that is why securing our borders is such a big deal. stuart: a tunnel however could be built under a wall, couldn't it? >> you definitely could be built under the wall but that is why we've said the wall is not a be-all end-all. obviously you need technology. you need boots on the ground. you need the wall because it deters, but it's not the be-all end-all. the simple explanation as to close her door at night but you know somebody can still break in but she still close the door. >> i just want to get back to the physical structure. how long was it and when did it come out in mexico and when did it come out in america? >> they're still looking at it. there's been some back-and-forth on it so i don't know all the specifics on it yet.
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but we do know that it was a tunnel that started in mexico and came into the united states. they've discovered these tunnels before numerous times and it just shows and improves the true dangers and the reality that a lot of these criminal elements would do anything they can in order to enter our country illegally be a people or drugs. stuart: can you tell me if you use technology to find the tunnel? the israelis use technology to find tunnels into israel for hamas and other difficult groups. >> there's different parts of the entire aspect of how these things are found. sometimes it's technology, a lot of times it's word-of-mouth. sometimes it's as simple as arresting these individuals in them actually telling the border patrol agents were telling our intel department what it is that's happening and where it's coming through. there's so much different types of infrastructure that is used to discover these things.
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that is why i say it's important to not just focus on one specific thing in general, but the reality is there's a bunch of things that go into the agency that helped detain, deter and the rest criminals entering our country. stuart: thank you, sir. we'll see you again soon. got a corporate story for you. pfizer and glaxo smith kline are going to combine the consumer health care unit. they make lots of over-the-counter medicine. advil, robitussin, censure him. i think when they get together if they do eventually merge together they'll become the largest over-the-counter drug company in the world bar none. they have to be i think. both stocks by the way i wrote. it does look like we'll avoid a government shutdown. mitch mcconnell introducing the stopgaps vending bill, panting essentially too early february. did the republicans blink on this one?
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we will certainly ask that question. ♪
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stuart: looks like no government shutdown. majority leader mitch mcconnell has a short-term spending bill that would hold the government through early february. oklahoma congressman mark mullen is with us now. congressman, the president did not get a $5 billion for the wall. looks to me like senator schumer and nancy pelosi won this one. what say you? >> well, i would agree with that. the white house we've been speaking to a lot on this matter
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when they come out and said they had a different way to fund the wall, it did allow us a little bit of flexibility because the majority of republicans here support the wall because it has nothing to do with immigration. this is about national security risks that we expose the american people to buy having an open border. at the end of the day it still takes 218 members to pass that bill and we didn't have that number as of the day. stuart: congressman, that was the republicans. >> keep in mind that night, we had 40 members blew and not all of them are here. and so, that brings our numbers significantly down. stuart: yeah, but it's a failure of the republican party anyway you slice it. >> i think the majority of the republican party and i say the majority of the republican party. there's all types republicans. i'm quite different from oklahoma to the then republican from california or new york. as all types of different
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republicans. at the end of the day we all agree the border wall has nothing to do with immigration and everything to do with national security. we want to get there. it's just what the best path forward is. it is a magical number that you've got to massage a lot and try to figure out the best approach because were all trying to equally represent our districts. stuart: okay, i'm not going to pursue this. it looks like the president and the republican party blinked. >> of the president came out and said we have to have this number or else the republican party would stand with him without question and we would be happy to follow him on this because we understand its national security. we are not wanting to take a risk and allow something to happen to the american people while we're trying to play politics. the president assured us that there is other ways to fund this. so we are letting him work this out. he has a lot of tools at his disposal that we don't.
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stuart: okay, let me just go back to the tunnel under the border there that we've discovered recently. how was it discovered? are we using sophisticated technology to look for this kind of thing? >> this specific tunnel i haven't been briefed on the we do have technology out there. there's astra technologies out of houston that has fiber-optic technology that can discover movement underground as light as a simple movement up to 250 feet deep. that is when the fiber-optic is laid on the surface. it actually came off oakley: virtual wall. it's brand-new technology and i've had the privilege and been able to see it developed throughout the process. it also can develop a difference between a human and an animal crossing the barrier to which it lays out. maybe an open area this to be a great concept to be able to have border security because they can easily tell the difference between a human, between an animal and how large the weight
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of the individual. stuart: it sounds to me if you combine technology and other kinds of interdiction on the border, were going to have a tight border within a couple of years. it sounds like we're going in the right direction. >> if we combined the two together, there's areas where we need a virtual barrier because people are going to run across it in urban settings. a massive rural areas you have the opportunity to be able to have a virtual wall which can send information to the border security and allow them to respond accordingly. that technology exists today. along the walls where we do have it, they can bury this technology and it will detect as i said tunnel since delay. it is phenomenal. the technology we have out there that is at our disposal is phenomenal and we can have a secure border but without a separate politics. stuart: understood.
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thank you for good information. as your holiday travel begins, we have a list of the most stressful airports in the country. we're going to tell you which one takes the top spot. and now -- here's some more of that wonderful secular christmas ♪
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stuart: sorry, the most stressful airport in the country is? laguardia. a study found laguardia is the worst for flight delays and cancellations. number two, never heard of this one. norfolk international in virginia. round out top five, charleston, south carolina, rochester, new york, and philadelphia. >> no big surprise on laguardia.
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stuart: no, laguardia wins everything. uber is conducting self-driving tests in pennsylvania. are they on the road? >> you letter that fatal accident in tempe, arizona where a woman was killed by a car, uber car. it did have a tester inside the car. they're bringing it back in pittsburgh. on a mile loop between offices in pittsburgh. the future is call up robot uber on your app and it takes you wherever you want downtown. it will be on dedicated loop. stuart: a set route. liz: that is correct. stuart: established route, everybody knows where it is going. ashley: i do think that is great idea. stuart: i do think it's a great idea, but introduced on a mass scale on new york city, wouldn't you have a traffic jam? liz: you need a dedicated loop. stuart: a driverless car dedicated lane? that is what it would have to be. liz: or buys can he leans. stuart: an hov lane for
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driverless cars. not in new york yet. my time is up. but i do believe neil cavuto is standing by in the next three section. he will take it. wait for it. still my show. 12 noon, it yours. neil: i'm actually sitting. i'm thinking of this driverless car. how would that affect you? you're in the back seat. no one in the front seat, right? stuart: i guess so. i guess so. neil: great. another brilliant segue to our show. thanks, buddy. we are following what is going on. whether we see another hike in this cycle. would be the ninth since all this began in late 2015. expectation, you know the drill by now, that the markets are expecting one more quarter-point hike in federal funds which would bring it up to the 2 1/2% range. we've essen


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