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tv   Varney Company  FOX Business  January 8, 2019 9:00am-12:00pm EST

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thanks for joining us everybody a big thank you to dagen mcdowell and lindsay great show ladies. >> great interview maria bartiromo with jamie. >> thank you so much see you everybody tomorrow. stuart take it away. >> not bad maria. not bad. good morning to you. [laughter] i'll take it. >> very good and we're going use it on the show today okay got it. thanks maria. good morning everyone. in the last two trading sessions, the dow has gone up fearly 850 points investors really liked fed chair powell going easy on future rate hikes. the president tweeting about that this morning. imagine what the market would do he says that be no rate increases at all more on that in a second. look at this. another solid gain for stocks at the ohming bell this morning dow is going to be up well over 200 points the s&p up about one
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percent. the nasdaq strong gain also up about 1%. however, it is all downhill for the smart phone business, perhaps the most important tech product of the generation. we've harled about weakening iphone sales at a now trouble is spread so samsung galaxy people and similar trouble at lg another south korean smartphone maker people are hanging on to old phones longer and not everyone is infused by latest speeches more on this too. coming up for you. as for mycs, with tonight at 9 eastern the president addresses the nation from the oval office. he's in a tight struggle with democrat leaders to build border wall he may declare an emergency to get it built. he may offer confessions to win support but this is the first big fight of the year. mean while we're now in the 18th day of the government shutdown. yes, it is another big day. good-bye sears by the way, and
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good-bye banner. "varney & company" is about to begin. ♪ let's get right at it ousted carlos ghosn faces financial misconduct charges in japan. ash, he was in defiance wasn't he? >> he gave a point by point rebuttal to everything that's been leveled against him hiding in deferred pay he said in court i've been wrongly accused unfairly detained based on meritless and unsubstantiated allegations. you know, there's no camera in that courtroom so you've got these things drawings, of course, but looked grayer wearing suit no tie handcuffed with a rope around his west as is what they do in japan.
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and the judge said look, you're beginning to remain behind bars because you are a flight risk. and because you might destroy evidence if released now doapght forget kneeing san the company that he was fired as a chairman from said they uncovered stable and convincing evidence of misconduct by ghosn so he really is fighting for his life here. but he was defiant no doubt in a ten minute statement first time we heard from him since he was arrested a month ago. >> what a story. what a story. >> most powerful autoexecutive. remarkable. he was -- in japan. and now he's not. right, okay. right 97 to turn to smartphones samsung now anticipating dismal fourth quarter profits may be a decline of 29%. that comeses week after apple lowered its forecast. james freeman is with us assistant editor for "the wall street journal" editorial board. i think smartphones are the most important tech product of the generation. if that business is now in trouble, what the --
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devil excuse me what the devil is going on? >> it's a concern samsung largest smartphone maker in the world and we wongdered when we got the bad news from apple is it an apple specific problem? apple really blamed the chinese situation slowing economy there trade disputes samsung and now other makers showing the weakness across the sector so then investors wonder is the whole economy -- or just a smartphone issue i think we are seeing -- certainly samsung by the way is blaming the -- the whole economy basically but we are seeing sign of softening we've got a strong economy in the u.s.. great jobs report on friday, but also yesterday softness on services side of the economy that's in the ism report manufacturing data last mojt saying things are slowing down so this is -- more reason to think we're heading into a slower period. >> wait, wait, with isn't this
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internal to the smartphone business? people don't replace their phones every two years. as they used to in 2015 now they wait for three years not everybody is infused about latest little gizmo attached to the thousand dollar new phone. >> that would be hope that they have specific issues related to market saturation are maybe not with huge innovative new product this is year or more incremental among these companies in terms of the advances. so i think that's what you're hoping for and we get some it shall i would say on the positive side you know, besides the job report, still very relatively optimistic consumer businesspeople especially here in the u.s. >> okay got it james hold on for a second i want to talk about earning season. by the way, it starts next week this is the time when the big corporations tell us how much money they have made and how much they're going to make. this gin the screen right now is name is james let me introduce him properly of clear said advisors. what do you expect next week when we get these profit
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reports? >> well i think the profit reports themselves will be good because the economy wases good and corporations and great shape. real question is the forward looking guidance. >> but how good? had had 20, 25% increases in 18 -- how much? >> i think people are looking for a deceleration to around 10%ish in the fourth quarter. and six or 7% next year, give or take depending on how things play out but most important thing is not what the companies report but what they say about 2019 because concerns in the market are that you're going to slow down worldwide and there's some people who are worried about earnings reare session some were worried about a recession i don't think we're going to have recession but what companies say about you we're talking about the effect of the world economy and smartphones. what people say about what's going on in china, what's going on in europe, what's the effective tariffs what's going on in terms of the slowdown of the united states. that's much more important than the earns that they report
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what's the outis look for 201? >> you, however, remain bullish you think market is going up some more. left to economics market is going up, economy is going to be fine. only if washington doesn't muck it up the real risk comes from washington. that you get real degeneration down there, that is dysfunctional in terms of the economy and business psychology. ivelgt hold on one second lock at this from the president this morning tweeting about interest rates economic numbers looking really are good. can you imagine if i have long-term zero interest rates to play with like passive and the rates that we have today that would have been so easy still markets up big since 2016. that's trump class pick trump he's a real estate guy he likes low rates he's running for reelection. he needs a good economy there are people who would say if you have zero interest rates now, you would be creating tremendous financial and excuse me imbalances and it would leave the fed with no ammunition next time there's a rescission. >> but market would go straight up if we haven't had rate
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increases at all. >> market could go straight up for a while instinctively but people worry what does fed see that we don't see that they're keeping rates at zero when everybody knows economy is good and there's 2% inflation? i think the fed is doing a phenomenal job. i think -- i think he did a great job in his testimony on friday. i think the realistic they're gradual incremental. they're clear thinking and they're independent which the markets want to see they don't want to politicize. >> law school good right now futures show a 250 point gain for today. add that on to the 700 friday nearly 100 yesterday. you're looking at about 1,000 points. >> volatility in mood swings are pretty substantial dramatic and they're not going away it is going to be a volatile year i think it is likely to break on upside but you have lots of mood swings, and you're going to have lots of days that are going to scare you on downside and please use on the upside. >> i'll try to remember that. thanks very much indeed let's
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get to jam knee sat down with maria bartiromo here's what he had to say about the economy. roll tape. sentiment changed dramatically for a bufnlg of different reasons but still globe is growing united states is still growing 2.5%. there's possible a slowdown -- a big shift in sentiment maybe tick a deep breath and open up a little bit. >> a slowdown in the my? james freeman what do you make of that? >> well, that friday jobs report is hard to square with the slowdown. but as i said you've got some other data it is not -- not shrinking but by some measures we mention the the services side of the economy. not grow quite as fast as it was -- early 2017. so i think like a lot of ceos, a lot of investors around world he's probably watching these trade talks hopping we get a resolution with with lower barriers to trade which is --
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i think huge fuel for the economy. >> thing he did say which may have help market this morning because we've been running this all day he said banks are are going to keep legending even though it is a tight market they keep lending that is a positive. >> especially given his track record his place in the industry, and, obviously, firms they have a better read on u.s. economy the the global economy. because they have so many customers they're financing so many customers. so i think you where always take that seriously. great interview, i think it really is a right now it's about resolving this china trade dispute and i think the president knows that. >> okay got it james freeman thank you very much, sir check futures because you like what you have to see here. we're pup about 250 points on the dow industrials. a a % gain for the s&p, with a 1% gain for the nasdaq. the rally continues. from airlines urging passengers
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to tip their flight attendants. what do you feel about that they bring you a drink they want you to give them a buck you do that ashley webster? >> let me ponder. ponder -- as in think about it. newly elected congresswoman calling out the president a vulgar name now taking heat for what some are calling anti-semitic tweet we're on that one for you as well. and president trump making a big oval office address tonight 9 eastern all about border security and shutdown. the big question, will he declare a state of emergency to get money for the qawl? we're on that one too. more varney after this. well, it means i can trade after the market closes. it's true. so all... evening long. ooh, so close. yes, but also all... night through its entirety. come on, all...
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stock futures showing a very nice gain thank you very much up about 250 on the dow industrials. how about sears, reportedly going to ask about a bankruptcy judge to liquidate suzanne that
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means going, going, gone. year history rejected bid on the table from chairman eddy and his company esl so eventually in a essentially this bid was to forgive debt on his own book but he fails to convince share holders according to these reports put forward a 4.4 billion bid to save sears the 400 stores are left job and this is a store history of a famed retailer once the large test in america before wal-mart took over. and you can see throughout the decades some would say they failed to spot online trend and also a victim of their own failed strategy as well that look like liquidation is not that far away. >> got. thankvery much suzanne to shutdo government shutdown now president trump addresses state from oval office you can watch if here on fox business i think the president -- i think he's got to win this one he's in a fight with the democrats build the wall, get
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the government running again. but build the wall give me the money. jason is with us now. i say he's got to win. he's say what? >> you're right. this is a golden opportunity to make the case to american people you can't be overtly partisan or political. but if you state the facts the president will win. there is a crisis at the border in november alone, the border patrol apprehended nearly 60,000 people coming across illegally. judge on your program yesterday was talking about the only apprehend one out of eve two people trying to come across border and as you make it about what the border patrol needs in ordered it their job the president wins this. nancy pelosi continuing to say that the wall is immoral i don't think maybe makes any sense to averagemen and president in a very tempered way can make that case factual, and talk also about the human toll human trafficking drug all of the other things flowing across our border. >> but he needs support he has
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to have -- he has to have the senate on his side with 15 days to say, no. it's not a state of emergency. so maybe he offers some confessions to make sure he has support from both sides of the aisle. >> i think president has signaled he's willing to do things with the daca kids but when nancy pelosi says no wall, no, never that doesn't sound i think to the average american that she's willing to come to the table and do some sort of negotiate she's spending time in hawaii. she's -- drawing a hardline at some point. i think more reasonable democrats are coming to table to say yeah we can pinged a balance to approach here, and we're talking about national security and protecting our border. something that democrats have long supported in the past. they voted in authorized it in the senate to have the wall. now they have to fund it. you can't have it both ways chuck schumer. >> he's trying to reach over the heads of his if base. to an expanded audience, about
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and get some support on a broader scale. at end of the day do you think he does it? >> i do. i do. i think that the moral imperative is on president's side on the side of law enforcement national security, and i do think it will get to the democrats at some point and he's talking about about supporting federal workers. something democrats say that they're favor of and again what changed? they supported a border wall in the past. and now that donald trump is for it. they seem to have -- got to get the country on his side. and he's got to win. because he's got a lot to lose if he lose this is one he goes into future debates really weakened. glad to see major networks air this because president is talking directly it an audience he doesn't normally. >> a twitter storm doesn't make it oval office. jason thank you, sir. appreciate it don't forget you can see the president's address live here on fox business. 9 p.m. eastern and it is
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tonight. here's a look at futures again, about still up. nicely, 252, 252 up from the duh a one percent gain same for s&p and nasdaq also up about 1%. here's quite a story this one. the washington wizards -- they're going all in on legalized sports betting they're going broadcast an ultimate version of their gains specifically catering to gamblers this is a big deal. we'll tell you all about it, next. this is huntsville, alabama. aka, rocket city, usa. this is a very difficult job. failure is not an option. more than half of employees across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job.
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have we got the video yes clemson won the national championship they blew away alabama last night. big upset. this score was 44-16. however, there is an a issue with people who fry to place bets on the fan dual app. i do not understand this. but suzanne lee does. okay so fan duel bakely people can place that certain play that take place dug the game the game slated to open up at 8 p.m. eastern time. fanduel website crashed before then and irate betters, because in the first play, there was also a pick 6 meaning that there was an interception return for a touchdown. which some betters could have
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actually made money on but because of what they call a system failure according to fanduel, of course, they have apologized to fans and users on the app. some people missed they're very irate i should point out, though, because you know for the game it was a blowout right, so actually faan fanduel paid out money for those who have bet on alabama money. >> it just crashed because of so much usage was that? >> clear on that one. actually i think we have more important gambling story here. it is about the washington wizards. their simulcasting a recent game with live betting information on the screen. now look guys this is the the future. describe how it has been -- >> it is interactive so you want to sit at home or bet real time this is the broadcaster they want you to watch. something will come up here well this player score 10 points before halftime you have change whatting odds on the screen. the overunder. i think this is where the the
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future is going. this is first of eight a broadcast of they're testing out but really you can sit at home and they'll ask you questions do you think blah blah blah as i said do you think this play will score x number of points yeah i'll put ten and odds are 3-1-whatever but this is the future i think of gambling. you know, gambling is an addiction. it is, and some people are hooked. a lot of questions about this morality. but also the, you know, the kind of forcing you into a pat pengt of behavior. because this is kind of broadcast that the -- prone to gambling addiction would be for itself. those are other questions all of this change to that supreme court decision last year, of course, opening up -- gambling new revenue. the revenue huge. absolutely huge. we've got to move on unfortunately i think that is a very interesting story. and we're going to be up 245 points at the opening bell today. big gain for the s&p and look at
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the nasdaq a solid gain there as well let's see if those big techs recover a little bit more. we'll be back. great news, liberty mutual customizes- uh uh - i deliver the news around here. ♪ sources say liberty mutual customizes your car insurance, so you only pay for what you need. over to you, logo. ♪ liberty. liberty. liberty. liberty. ♪
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♪ stuart: this could be quite a day futures are pointing towards a roughly 200, 250 point gain at
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the opening bell. if we get that kind of gain, with add up the gains on friday and a yesterday, monday. and you are looking about a thousand point higher from last friday morning to this morning. we'll take it. here we go 9:30 eastern time. it is tuesday morning. we're off, we're running and where are we going look at that. right from the get-go up 180 points and yes up 243 points. at 251, 260, come on any advance -- 254 leave it at that 28 of the stock open all of them on upside two remain unopened when they do open tell you whether they're up or down see how we go but we have a gain of over 1% for the the dow industrials there you go. only one left to open. that's dupont -- we're waiting okay let's move on we're up 1% from the dow. the s&p we are up, almost one percent. the nasdaq composite show me
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please. we're up over 1% looks like the techs are doing well. check the tenure treasury yield. look at this. 2.7% okay that's up. coming up yesterday. but that's still nothing if you've got a rip roaring economy isn't it? big tech names we check them all of the time here are they. this morning, with all of them up, apple 149 amazon 1660. facebook 140e google a thousand 87 and microsoft but 103. dr barton is here mike murphy here along with suzanne and ashley. all right dr you're first. this rally it's all about the fed calming things down right? >> and this leg of it is exactly because of the powell's comments, and you know when you threaten to take away the punch bowl to reduce amount of money out there, and then you say well maybe not so fast. that had a big calming effect on investors. >> i think it is chyna trade they're talking and gauging and
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beijing at this point, and both sides need a deal. i know china definitely needs one given how sharp that slowdown is with more empirical evidence week after week so i think that's encouraging for investors as well. >> you've got it what about you dear mike? >> selloff was due to the fed and a the concerns that the fed could be too aggressive. so this rally or this bounce off recent lows is also i'll attribute to fed suzanne is right are china play in here but i think it's big money saying okay we're not going to be dealing with an overaggressive fed in 2019. therefore we can focus elsewhere so we're seeing buyers come in. >> next week when we start getting profit report, they better be good. they better be a 10% gain over the previous year. we going to get it? >> well for certain companies yes we will and those companies should be rewarded and go higher so if we can focus stuart on company specific about ors, companies that do well go higher companies that don't do well go lower that's what investors want. that's what we to see. what guidance is that's had the bottom line. >> guided no doubt and there's a
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little secret here too remember, fourth quarter of last year was people were kind of pulling back waiting to put new revenues on the table when the tax came so this might be a little better than people are expecting stuart. smg here's a negative. and negative is the smart phone business. iphone sales not great demand not great. same story with samsung they've got a problem. what are you looking at your phone for? seriously this is the -- this is the ultimate technological product of the generation. and it's slowing down. >> well, slowing down because the phone are better, and phones are lasting longer so people aren't going out and ring them as often and you can argue there's no new innovation to get a us in one but here's the thing companies like a physical they may not sell as many iphones or they can't stick on the same trajectory that they were on for new iphone sales but what have they done they created a mote around their business where you have the cloud business you have
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the music business, you have the services business. you have the gadgets business so you have so many other parts of the business, so when tim cook said we're not going to give iphones sales specifically he made a great point we didn't give ipad sales specifically or aye ipads sales specifically but not as many as they were in the past but they make great money and they're large -- >> their revenue that's your main money driver isn't it services are still maybe, maybe at this point less than 20% of revenue. >> well it's beginning to shift from the iphone sales into the revenue into the -- services part. which is a much high per margin business. so -- >> are you buying it at 149? >> buying apple right here. and bought a physical l high per brought it around 168, 169 and buy it here -- >> 149 bought it friday at 143 bought it before that at 159 so my balance is around here and i think it is still a buy for all of the reasons he said and we're
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see peak ping peak big, big the high end thousand dollar phone sales. i think the growth is going to be finding those products that will sell into india into china, at a much lower price point. apple is going to have to kind of find a way to penetrate those -- >> latest news from china this morning i don't know if you saw it but smartphone shipments are down 15% -- 15, to affect already in china. >> apple is right there a become 94 higher at 149. okay but both you guys would buy it for the long-term. >> absolutely. okay. look at netflix that stock has gone up, 16% since thursday. it is biggest two-day gain at it be two years. you know, netflix is the new hollywood. it is giving hollywood a run for his money. >> they're beating hollywood to death in this way stuart. they are -- have figured out the production game they're paying so much for the production but they're distribution and all of the other costs they have narrowed down so much that they're
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putting all of that into marketing for eyeball that's why this is still going to be a long-term play. >> check the big board because we're about to go up 300 points on the dow. i think -- we're up 289, 290 very close it a 300 point gain. look at the level. 23,800 that's where we are for the dow right now with a gain of one and a quarter percent nice gain. how about the price of oil. we're at 49 bucks yesterday. we're up 49 becomes today. how about the price of gasoline? national average 223. down just a tiny fraction of one cent but down nonetheless. don't you love it 223. [laughter] >> a buck 5 gas last night. >> in delaware -- >> i did. nice, in delaware -- >> i live there. >> oh, i'm sorry. okay that explain it is. this is interesting too. a new tesla board member larry elle he's just revealed he has a billion dollar stake in tesla
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that is -- >> he revealed it back in october in analyst meeting he just filed with the fec with with that billion dollar stake that accounts for tesla in total as you know larry ellison named as a independent member of ford at tesla. >> got a billion dollars worth of that stock? >> independent right it is a personal hold physician as well not part of orr call so second largest personal -- >> big independent that makes all of the difference he's betting on future of electronic cars. has he made a good bet? >> i think he's made a good bet but less on the -- total future of electric are cars more on near term future for the company. because as a board member he's entitled to some nonpublic information. and remember, tesla has a money that's coming to. they have bonds that are being called if they don't hit the certain level. and it is near future, so if there was something out there that made you as a board member think they weren't going to hit there and it was a material negative or for the company, you would be not be putting a billion dollars to wok.
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so i read through this that there's something that mr. ellison sees and he's, obviously, extremely smart individual, great investor, he sees something there that for the near term tesla will clear that hurdle. >> i'm not sure it is a good bet on electronic -- i'm not so sure about this. >> i like parking lot electric car business but i think tesla is in the range of squandering their lead this year if they cannot move forward quickly, they've got all kind of competitors that are at their heels. we have a china bet that broke ground in shanghai. which by the way, mike serviced a new bernlgens electronic car market, since they finally topped million vehicles last yore andst there's growing demand there. >> maybe i'm wrong. maybe i just i'm not an early adopter of new things. [laughter] as you can tell. of course. amazon surpassed microsoft as most valuable company in the world. all right, you still own amazon you do don't you? >> i do.
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and i'm underquarter. >> you are. you -- 1530 you bought it still smiling? >> down a percent or two. i didn't add to the position. when it sold off i wish i had. no not really so much but the timing of the overall market if the -- market was very volatile i didn't see it as a reason good time to go in and buy more. >> you should buy microsoft get it above amazon. [laughter] [laughter] >> by the way, apple was in this free horse race are wasn't it apple is now like 95 billion short of where amazon is, and that's because of smart phones. but that's the outset. >> that evaluation because amazon is 77 billion to take the crown as a world largest company. >> but good news for you, the big deal this year is going to be the cloud expansion. these companies that are already there doing well, your microsoft, my amazon which i got at 1480 will --
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[inaudible conversations] i've said it on this show this morning when i got in and that's the wave of this year. >> you have to understand mike he lives in delaware. [laughter] makes all of the difference. what have you got now dow industrials up 272 points. it is 940 eastern time i regret to say i have to say good-bye to our two all stars here mr. murphy and dr good stuff today thank you very much indeed again we're up 270 odd points for dow joans industrial average at 23,800 that's where we are. then there's this. beto o'rourke meeting with voters as he had decides whether or not he wants to run in 2020. beto is reportedly looking to travel alone. no press, no staffers. but he will document his journey on social yeetd. thought you would like to know that. national federation of independent business out with their optimism index this
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morning down ever so slightly but for fourth month in a row big problem shortage of qualified workers we'll tell you all about it.
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well it happened we're now up over 300 points that is one and one-third percent. add up the gains since friday morning, and you well over 1,000 points for the dow industrials. mercedes parent company of this is investing in self-driving trucks. what will you say this was a big area of development they're going to put in 537 million creating 200 jobs. this is trucking industry is really experimented with this volvo has trucks working at mines and sweden physically
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automatic. now these are not on public roads by any means but they call them level four vehicles able to completely drive autonomistly this is what they're at for the trucking industry within the next ten years they believe that trucking industry, and part of the company are investing wal-mart has a private flee of 6,000 truck they too are starting to look very seriously how to automate these. >> electronic car we're told here they come self-driving cars, trucks here they come. it seems like there's an awful rush on here i'm not sure it is beginning to be coming on that fast? >> you're not seeing it in new york city but wamo but you have to test before a big city like new york. >> to the economy whatever you say. small business optimism remain basically unchanged last month. unfilled jobs and lack of qualified applicants that is a
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big factor. economist peter with us now. is that a problem for the economy? if you don't have enough qualified workers to fake the job. wouldn't that mean you put wages up and that's good for the economy? >> welt putting wages up only goes so far i interviewed the manager of a large bicycle shop. recently, and a his basic gripe was i have plenty of applicants but i don't have bicycle enthusiasts and a lot of way, small businesses want people to come pretrained. or preoriented and they have to get over that. they have to put in time training one of the reasons that big businesses continue to expand is they put money into training and training doesn't have to be a big program it could be one-on-one mentoring but small businesses want people to hit the ground running, not a lot of training, don't pay much wages, so they have a problem are. >> but this -- small business optimism index is down but ever so slightly they're painting rosy fir of the
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economy aren't they? bottom line? >> look where we are in the cycle. we can't just stay in 4% growth as we did the middle two quarters of last year but we probably can sustain two and a half to flee so all of your sentiments indicators come in a little bit lower. and that's exactly what's happening. folks aren't swinging into negative territory as they are in china. so my feeling is that -- that we're okay. that we're okay, the biggest problem we have is the liberal press talking down the the recovery. literally trying to talk investor into the notion that it's over trump is a fraud. tax cuts a fraud and all of this. you know one of the most violators are economists it is as if decades of economic research that show lowering the corporate tax rate will increase investment is false when it is true. >> the economics business is become politicized i think and that's -- >> look, it's hard to tell from msnbc and nobel prize because afterall, the nobel prize committee is msnbc.
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>> i have to talk china trade for a moment. there's continued speculation that xi jinping china's lead shows up unexpectedly in late january, stands on the stage with donald trump, president who is beginning to be there. and makes her announcement ab new trade deal. have you heard this speculation and do you faculty much into it? >> well, it wouldn't be a surprise as you said it. but i don't put a lot into it because i have a deal first and we know about the teal through other means. my feeling is we're going to get a deal the the question is it worth anything? is it just another piece of paper like the wto recession agreement really what they're talking about doing is taking the 2002 or 2003wto agreement that china signed with the united states and putting some teeth in it. we with haven't been able to with anything with china robert lighthizer carries around a
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folder opens it when president waivers and shows him a list of 20 different trade agreements that chinese have violated. most recently their agreement not to -- engage in states sponsored industrial espionage this is crazy. this is like bleeding -- this is like chamberlain at munich this is nuts. >> wait a second are you saying two sides are miles apart? and the odds of any kind of deal are slim and none is that what you're saying i'm trying to read between lines here? >> there's a very good chance there will be some kind of dole and i think that in this situation, i know this is not popular on fox. donald trump will be the sucker he'll be -- chamberlain because at the end of the day you're talking about changing the culture of chinese business. and i don't think you can do that with the trade agreement. >> okay. all right well we hear you're on videotape by the way. feater -- >> i understand that send it over to the white house put me on the dart board yet again.
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>> okay peter see you again real soon. thank you peter. all right check the dow industrials. we're up now 260. and we've got 29 of the 30 dow stocks up one is -- on the downside can't quite read that what is that jpmorgan chase only loser among dow 30 and it is up 250 as we speak. president trump tweeting about the college football championship. here is the quote, congratulations to a truely great football team, the clemson trying ergs on incredible win last night against the powerful alabama team. a big win also for the great state of south carolina. look forward to seeing the team and their brilliant coach for the second time at the w8 is in white house. more varney after this.
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now about just a couple of minutes ago we were up 300 now we're up 245 has something happened on trade? getting headlines from these lower level trade negotiations in beijing. we understand according to sources the two with sides still not ready to conclude a trade deal though i don't think that was the expectation but they do it say narrowing differences on trade they have made progress on issues including purchases of u.s. goods and services, and we also understand according to to
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these headlines the the cabinet level follow up tackses are expected later this month. so it goes on, it goes on. and that's regard as a slight negative i think it sets the stage, obviously, for an agreement possibly in meetings at the plan between trump and -- >> but narrow their differences it is very vague isn't it? you know, how much have they narrowed but it's -- cautiously optimistic. >> i think i should take it back i don't think the dow qepght from a plus 300 it a plus 250. on some kind of negative, he was in negative. narrowed it it is actually positive. >> let's get that straightened out how about the price of oil this morning i think it is still around 49 dollars a barrel. we have a guest this morning that is beginning to address the issue of america exporting oil. how about that? dan is with us, he's with the oil field services company canary llc you are.
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>> good morning to you. thank you p good morning thanks for having me back we are exporting oil for first time in a long, with long time are are we going to become a major exporter? >> i think we are a major exporter we're exporting 2.2 million barrels day. 2.2 million a day from zero to 2015 they think we should keep our oil here to get the price down and gas prices stay down. how do you feel about this? >> i think it is a world market you know first of all, the price worldwide price that's what tbas lean has strongest correlation to, with and i think it brings in hard currency to the u.s. and something we're good and getting better at with u.s. shale and i think it's making our economy stronger. >> what's holding us up? why can't we export more? >> i think there's a number of things first of all we have an infrastructure problem and first of all there's a -- lack of pipeline in the three coming on to add to or decrease make us more competitive near the end of the year. we also have got export terminal
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problem we're going to hit peak capacity to export it somewhere around 3 to 3.2 million a day and so without -- without more construction and without quicker fermenting we're going to hit a ceiling on what we can export somewhere in the last half of this year. >> is canary llc part of this? >> not apartment of it directly but we push to increase the behind and god for u.s. shale and country and u.s. region. >> do you think oil will stick around 50, 60 bucks barrel? >> i think it will be raised amount. i think the u.s. shale is flatlined saudi arabia is pulling off more production than they told markets they were going to do. and i think where oil goes depends on macro stuff u.s. china trade situation, government shutdown and you know strong -- >> i'm going to interrupt you would be surprised if it went become to 80 or 90 bucks barrel. >> it heads there to the end of the year. smg really save the best to last. dan thank you very much for joining us appreciate it. thank you.
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new york democrat repghts part of the wealthy suburb of westchester now making a big push to bring back state and local tax deductions and federal level. the biggest winners of that will be top 1% people. what do you think about that a democrat helping 1 percenters does that makeceps in it does. we'll be right back. . .
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stuart: 10 a.m. in new york city. is 7:00 in california on the tuesday morning. markets show a very solid rally. we were up 300 for the dow. now we're up 233. still a 1% gain. we have breaking news. it is on the economy. this is, so-called jolts report. in other words how many job openings there are. ashley: i do. 6.88 million. in november. which was shy of the just over 7 million anticipated. 6.88. number of job openings coming down a little bit.
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stuart: still at a very high level. down a little bit from the last reading. ashley: yes. stuart: scott shellady with us, tjm europe managing director. what do you make of that. it was seven million job openings. it is now 6.8. >> not that big a deal. obviously some of them got filled. over last five years, stuart, that number was four million five years ago. so we've come a very long way. doing very well getting economy going again, getting demand to hire people out there. in the big picture a great number. like you say. not worry about estimates so much. we missed we when were thinking it would be but still good. stuart: scott, i have more in a second. check the big board reaction to the jolts number. it moved market up a little, not much. we were up 230 when the number came out. now we're up 250. how about individual stocks making news? tesla, oracle founder, larry ellison has revealed a one
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billion dollar stake in the car company. that stock is up 3 bucks. netflix, oh, what a performance, up 16% since last thursday. biggest two-day gain more than two years. this morning down just a buck at 314. big tech names, first of all, amazon, it has surpassed microsoft as the most valuable public company in the world. the big techs this morning on upside, apple, amazon, facebook, alphabet, all up. now this. ask any high income earner in a high-taxed state what would they like most? ask them. and this is what they will say. oh, please, please, reinstate a much-loved tax deduction. please, please, let us deduct our state and local taxes like we used to. yeah, we're talking about the salt deduction. which was done away with in mr. trump's tax reform. taking away that deduction really hurt the 1%ers,
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especially those who live in new york, new jersey, california and other high-taxed states. so who is now rushing to help the rich folks? none other than than a leading democrat, new york's nita lowey, democrat. she wants to bring back the salt deduction. now think about this. soaking the rich is classic left-wing policy, yet here is a democrat wants to restore a big tax break for the rich. make no mistake, if the deductibility of state and local taxes comes back, the biggest winners will be the one percenter. since when has a democrat championed the rich? miss lowey represents a wealthy suburb of new york city, where the median household income is 96 bucks a year. she is defending her own constituents who happen to be wealthy. this tells you a lot about politics these days. first off, all, not all, but
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most wealthy people now vote democrat. wasn't always like this but it is now. and democrats will support their wealthy constituents. it also shows the big split among democrats. do you think the bernie sanders's wing of the party really wants to help the rich? nita low which chairs the house appropriations committee. she is powerful. her salt proposal will have a lot of support from both sides of the aisle in high-taxed states. ironic, to many on the left, rich are not so baddest specially when they are your constituents. that is my take. now get reaction from congressman jason smith, republican from missouri. what do you make, nita low which, champion of the rich? >> stuart, great to see you. we are talking about salt again like we have last couple times. i think there are definitely sensible changes as i discussed
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here, eliminate marriage penalty with salt. be serious, the fact that people who have median income household of $40,000 a year in southeast missouri, they shouldn't subsidizing coastal elites in california, new york, new jersey. it is simply not fair. stuart: do you think there is enough support on the both sides of the aisle for this powerful democrat to actually push this through? is it a possibility? >> i don't think so. i don't think so. stuart: i want to talk to you about congressman john yarmouth, democrat. he is from kentucky. he is the new house budget chair. he wants to raise corporate tax rate, up to 33%. you're on the house budget committee. what do you think about that? >> look how the economy is doing. for the first time in nine years we've seen the fastest increase in individuals wages. so basically what he is asking for is to increase taxes on family farmers in southeast missouri. this is ridiculous. we've seen the tax cut an jobs act has proven to have a great
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track record for this economy. the last thing we need to do is reverse this that apparently is the priority right now. stuart: democrats run the house. can congress fight off this kind of tax increase, when the democrats run the house? >> i mean look at this. the democrats do run the house. in fact in the first six hours of nancy pelosi's speakership, we saw that they found ways to increase taxes easier. since 1995 they required 3/5 majority to raise taxes. now changed it by the rules you can do it by simple majority. they eliminated the debt ceiling. so there is no transparency increasing spending. you know we're going to have to do everything we can from a minority perspective to push back. we also have to continue to push back from our colleagues on the other side of the building in the senate and of course the president. stuart: you would not be surprises if there was some tinkering with taxes, we pay a little bit more? you wouldn't be surprised at that, would you? >> not at all.
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they campaigned on increasing taxes from day one. that is how they try to get the majority. not one democrat supported cutting taxes under the tax cut and jobs act. they're all about increasing your taxes. they think they know how to spend your money better tan what you do. stuart: was i right saying that these days, wealthy people vote democrat? i look, i had to look at zip codes and income in zip codes, which way they vote. seems to point towards wealthy people voting democrat. you see it that way? >> you know i would say it is more of the folks on in california and new york and new jersey in the last election tend to vote democrat. i wouldn't say that just wealthy people vote for democrats or lower middle income vote for republicans i will tell you that people believe in personal freedom or individual liberty will vote republican. stuart: jason smith, republican from missouri. >> stuart, always good to see you, my friend. stuart: thank you. get back to a strict
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conversation about money. scott shellady still with us. is it the federal reserve going easy on future rate increases, is that what's going i is giving us nice rally since last friday? >> everybody thought it was about the jobs number. what powell had to say later about the fed going forward. they were a lot more dovish. that market went up a little bit on the jobs number. it went up a lot more on on the rhetoric. it is about the fed instead of actual numbers economy. stuart: where do you think the market is going? we got up 1000 points since last friday morning. where are we going? >> i'm a little skeptical. that is a little too fast, too soon. we still have some danger out there. we could make one more move to the lows, make sure the low is strengthened if your a technician out there, that is
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how they talk. the economy doing well, it could be a little fragile. we think it's a little bit fragile. as long as that is the case, we still see earnings the way they are, it will be hard to have a recession with that in place. stuart: we got it. we hear you. scott shellady. see you again soon. >> all right. stuart: congresswoman ocasio-cortez wants super-rich to pay a top tax rate of 70%. that would pay for her green agenda. grover norquist says, it is opening shot in the war against all taxpayers. he will make his case about that later this hour. president trump will deliver a national address from the oval office tonight. he may declare a state of emergency to justify building a wall on the border. how will that sit with voters? that is a very good question to ask. we will ask it. stuart: i will talk about college football. clemson beat alabama. i can say that can't i, 'bama. thought nick saban was unbeatable. we'll see if brian kilmeade
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wants to take me on. we cover it on the program, guaranteed. second hour of "varney & company" getting going. ♪ i'm a bunch of wind. and just like your stomach after that strip mall sushi, well, i'm a bit unpredictable. let's redecorate. whatsyamatter tanya, i thought you loved being spontaneous? i do. and if you've got the wrong home insurance coverage, i might break the bank too. so get allstate, and be better protected from mayhem, like me.
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stuart: still holding on to a gain of 200 points. that is a little shy of a 1% gain. uh-oh, sears asking for a bankruptcy judge to liquidate. that means they are going, going gone. president trump's big address from the oval office tonight. katie pavlich, from "town hall" and fox news contributor. >> good morning. stuart: i was about to launch into what i expect. i think there might be some concessions here, like i will give you the dreamers, if you give me the wall. do you see any concessions like
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that at all? >> i don't see any kind of conflation between amnesty for dreamers or their parents who brought them here illegally and border security. they are two very separate issues. the reason why washington, d.c., is unable to solve the problem, because they conflate the two. there is a crisis at the southern border. i've been saying it for years. this one with the unaccompanied minors and family units coming from central america has been ongoing since 2014. president trump, tonight i believe will appeal to the individual american citizen by talking about how this impacts them. whether it is you through drugs. 90% of heroin comes through the mexican border. the i.c.e. intersected more fentanyl last year, fentanyl capable of every single american in this country, if it was put out on the streets and everybody used it. these are very serious problem. to conflate a daca or dreamer issue only creates a bigger problem. they have to cut off the crisis
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from the source and president will make that case tonight. stuart: he reaches out over the media, reaches out to a broader audience to convince america this is an emergency, this is a crisis at the border and that's why i'm doing this, that's why you should support me. hard-line all the way through? >> not just that this is a crisis at the border. this is a crisis that affects you no matter where you live. whether you live in illinois, a border state like arizona or california, this is a crisis affects you. i believe he will point out how far he has come in negotiations with the democrats. look president trump want ad cron create wall, now he has gone to compromising a barrier or steel slats, right? democrats have asked for more humanitarian aid, more beds in these i.c.e. facilities. well the president compromised on that, sure we give you more funding for that absolutely. we'll put those things on the table. so the white house hand been working for two weeks on this nancy pelosi on the other hand was in hawaii on vacation during
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the shutdown, i think that he actually has the upper hand. he will make the case from the oval office. stuart: katie, bear with us. hold on for a second. i want to segue to another story here. newly-elected democrat congressman rashid today tlaib, made headlines calling the president a vulgar name. she is accused of sending an anti-semitic tweet. ashley, what did she say. ashley: they for get where he represent. boycott something fight. this is about a senate bill that would punish companies take part in the so-called boycott, divestment and sanctions against israel. marco rubio shooting back, you're just trying to further the argument there is a dual loyalty, if you like in washington, basically gives israel control over congress. stuart: katie, that was always a form of prejudice that jewish people have a dual loyalty, israel and america.
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and that's what this congresswoman may be getting at. >> correct. stuart: is that, what she is getting at. >> this congresswoman needs to look at her own loyalties. she has loyalties to palestinian leadership in the west bank and ramallah that doesn't believe israel has a right to exist. believes using violence against the state, not just bds, that is not just focused on boycotting for humanitarian causes. the entire purpose of the bds movement is to destroy israel as country. the bds doesn't just hurt jewish israelis they impact negative way palestinians, israelis work hand in hand side by side in peace with jewish counterparts in companies all across israel. what she is doing is not only anti-semitic, but anti, her cause, she claims she is for the palestinian people. stuart: how do you keep the democrat coalition together? >> i think we should ask
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nancy pelosi that question. going to be very fun to watch. stuart: must be difficult though, this is disparate coalition with seeming contradict at this forces here? >> not just contradict e contradictory forces, far left, very extremist points of view being carried out in this manner. so i think this woman needs to take a look at her own allegiance. why she is so focused on boycotting a country thousands of miles away. stuart: always appreciate you being with us. >> see you soon. stuart. stuart: in our next hour, mercedes schlapp, white house senior communications advisor. she will join us. we will talk about the president's speech tonight. looks like he will have to make an appeal to the entire nation, not just his base. let's see what she has to say about that. watch full coverage of the address right here on fox business, 9:00 p.m. eastern, tonight. check that big board. we've lost half of the gain.
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we were up 300. now we're up 140. more "varney" after this. ♪ i am a family man.
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stuart: we note the moments ago, we cut the gain in half. we're up about 150 roughly speaking. why was the gain cut in half? it has to do with "wall street journal" report just out. it said that two sides, china and the united states, are narrowing their differences, but the journal report also said they are far from striking a deal.
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it was those words, far from striking a deal, that did it. the dow up 140, but not 300 we had earlier. how about roku? i think it is down sharply. they make the streaming boxes. well citron research, that is a short seller, andrew left's firm, they bet against companies, they say the stock will go down, they say roku sun investable? why? because apple is bringing itune streaming to samsung tvs. citron says that is bad news for roku. it is down 7%. newest gauge -- gadgets are on display at ces in las vegas. that is where liz claman is, "countdown to the closing bell." ces used to be about gadgets, seems more like data privacy is center stage, right? absolutely, data privacy, what you were talking about as it trade tensions, trade truce, trade war with china. not to mention things like steel
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and aluminum. all of this stuff, this gadgettry is made out of steel and aluminum. i want to explain where we are. we're not at the las vegas convention center yet. we're at the hard rock hotel. harman international, number one infotainment is had to move. their business is so big. they're squarely at intersection, privacy of data, exactly what you're talking about, not to mention everything involving trade over different, you know, countries this is what we're really watching here. it is really cast a serious cloud, not negative entirely but ces 2019. let me say, there is a company that won't even be here already making news and that is apple. apple sort of really focusing on that privacy issue, took out a huge billboard right across the street from the las vegas convention center, playing on that what happens in stays in vegas theme, they said what happens on your iphone and what's on your iphone stays on
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your iphone. taking a swipe at all of the electronics companies here who very much feel i'm sure they are data supportive and secure. harman is interesting. harman has something called the data shield, the harman shield, when you have a connected car like this, this is one of their examples. you have everything from a personal assistant that you can speak to. it all goes up into the cloud. i will run over to this side, so you can actually see what these cameras can do, but it all goes into the cloud. this is an issue. i talked to the ceo of this company, look at this camera, this is a side mirror you can see. this stuff could be there. he said privacy has become the number one issue for many companies. years ago they for saw that, they said this is major. trade, i want to tell you, quickly, stuart, it is costing them. they're starting to see shortages of materials. they're starting to see all kinds of issues. at some point it will have to be tacked on to the price.
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up at 3:00 p.m. eastern on "countdown to the closing bell," we're talking to samsung, lenovo, 5 about, cox i believe cable the own by company bidding on this frequency. we'll show it all. it all matters to our viewers. stuart: good, because i want to know about 5g, that is the next big thing. liz, we'll watch 3:00 this morning. thanks very much. day two of trade talks in beijing. the two sides have narrowed their differences but are still far from a deal. coming up i talk to a china expert, who says china is in recession and a trade deal is the only thing that can save them. he will make his case on the show a little bit later. >> >> look at this, washington wizards simulcasting a recent game with live betting information on the screen. this could revolutionize how we watch sports and bet on it too. we're on it.
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♪ stuart: oh, a personal favorite. susan: get better all the time. there are only some beatles songs we can play. stuart: there are a couple hundred of them all together. susan: ones you like. stuart: that is a limited number. i do like this one. i would sing along with it if you weren't here. just laugh at me. susan: oh. stuart: the gain cut in half. we were up 300. now we're up 150. all right, make it 162. big tech names. jpmorgan jpmorgan naming facebook one of its best ideas as an investment for 2019. facebook this morning, there it is, 141. pg&e. stuart: california utility, s&p cut its rating to junk.
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there is talk of bankruptcy. this stock is down another 10%. pg&e at 16 bucks a share. let's get to wall street. journal reporting that two sides, china, u.s., are far from making a deal. joining us, author of, "bully of asia." is with us now. china's slowing economy, you believe they're in recession, i think that is the way they're putting it, which means we have a enormous amount of leverage in the negotiations, doesn't it? >> well it does. you know anyone who reads the state statistical bureau of china figures growth being 6 1/2%, that is just a fairytale. what chinese economists say in the internal reports growth is somewhere in the negative. and it has been negative for a couple of quarters. we're technically now in a recession in china. and you can see that by non-traditional economic indices. clearing skies over beijing.
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the skies have not been this blue over beijing since the 2008 olympics, when all factories within 100 miles of the capital were shut down to give clean air for the athletes to breathe. those clear skies are an indication industrial production is down. we have lots of other indices as well. stuart: okay. >> what is happening in china though is strange, stuart. we see president xi xinping centralizing control over communist party, over various religions, over society as a whole and over the private sector. we now have communist party cells in every company in china, private company, anomaly private company with more than 50 employees. political commissars sitting on board of directors of many private companies. no wonder private investment is down. no wonder investors are looking overseas for opportunities, rather than in china, because they feel their private property is now at risk. stuart: what do you make of all this speculation?
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i keep hearing it from different sources, that maybe xi xinping will go to davos at the end of january, meet with president trump, stand with him on some kind of podium and announce a trade deal? there is all kinds of speculation about that. what do you make of it? >> i think xi xinping would like to grand stand on the international way. he tried that at davos last year as you remember saying that china was now going to take the banner and hold it high of free trade, free markets, all of which, all of which, i mean is totally contradictory to what is happening in china where you have increasing government controls over the private sector. increasing, sinking consumer confidence in china. so would he be interested in doing that? yes. would it sell to the world, i don't think so. stuart: do you think, with this pressure on china, its economy as you think is in recession, this concentration of power
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under xi xinping, does that make them less likely -- i mean are they hunkering down so they're less likely to make a deal? >> well, i think china faces a historic choice here, right? they have had 40 years of opening and reform yet you now have marxist scholars in china saying the era of free enterprise in china is over. china is developed to the point, state ownership of the economy can come to the fore. we need to abolish private property. you have that going on which is repeating the communist mistakes of the last century by countless countries. then you have the pressure from the united states, no, you need to open your markets. you need to protect intellectual property. you need to respect private property. we need fair trade. if xi xinping listens to donald trump, he may save his economy from collapse. if he doesn't, if he continues down the socialist road, i think we know where that leads. stuart: that is a strong word, collapse. you're really talking about the collapse of china's economy?
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strong stuff? >> i'm talking about bubbles in real estate. the bubbles in privately-owned companies. the enormous leverage from the state sector to state-owned enterprises to county governments that loaned out money that will never be repaid. there is tremendous amount of leverage in china. if the bubble in china collapses, this is not an ordinary bubble. this would be the biggest bubble in human history. i hope we reach an agreement on trade. i think ironically enough, donald j. trump the capital it, who is in the position to save communist xi xinping from his own mistakes. whether xi xinping will listen is up to him. i think we'll get a trade deal, stuart. i think we'll narrow the trade deficit. make no mistake about it. these are perilous times. stuart: they are indeed. mr. mosher, thanks for joining us. we'll keep in touch. thank you very much indeed. let me bring you up to date
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with the stock market. we have a triple-digit gain. nothing like the 300-point rally we had when the market opened this morning. right now we're up 115, 23,600. okay. i'm going to bring in brian kilmeade now, host of the brian kilmeade show. he is with us on the radio. i'm with him on the radio. clemson crushed football's number one dynasty, bamma. they won the national championship. i thought alabama's coach nick saban was unbeatable. you're the sports guy. explain it to me. >> these two teams over last three years exchanging victories. they go in and underdog, clem ton, trevor lawrence, 44-16, this 19-year-old freshman reminded me so much of peyton manning in college. i don't think peyton manning was this good as a freshman. he was at the tennessee for a while. the poise showed against the best defense in the country,
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formerly best defense. to play that good as true freshman 19 years old, highest college football game of the year, ratings are almost as high as stuart varney, come on. not quite. >> about even. it's a dead heat. stuart: he is only 19 years old, freshman? >> 19-year-old freshman. they say, they say this young man, this college freshman, is as mature as anyone they have ever seen come into college. in fact he is so settled, people wonder about his dedication to the sport because he is almost acts if he doesn't need it life is so good for him. man, does he need it after sophomore year he is probably going in the draft, you would think. stuart: got to talk to but the washington wizards. i know you know this story. they simulcast a recent game, put a lot of live betting information there on the screen so you could literally bet on the game as you watch it in a bar or somewhere i guess. this is a revolution for sports and sports betting. do you approve of it, brian?
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>> personally no. i feel the same way i do about legalizing marijuana. it is out there. i get it. betting is out there in las vegas, atlantic city, certain areas, certain states. i get it. i think you have more and more opportunities to poison what we like, for people who might be vulnerable around other people that want to make a lot of money. there is a lot of money in it, somehow susceptible to negative thing. we want to look at sports, whatever happens, for example in baseball, you could do steroids, you can do illegal drugs, you can get a dui, but if you bet on sports you're banned for life. case in point, pete rose. stuart: okay. >> but there is something, i get it. i know what governor christie was saying. why is this just in atlantic city and las vegas? should be everywhere. okay. fine. but it just inviting some negativity into something we want to see as competition. stuart: very much so. >> i think it's a bad road to go down. stuart: a lot of people can get
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addicted to gambling. if it is absolutely everywhere, very, very easy, do it on the ipad, moment to moment, that is an enormous temptation. that is a real problem i think. but i think it is coming. i don't think anything will stop it, right? >> gambling is the easiest thing for addiction, especially for athletes. what do we want? we want to compete. something is at stake. what is at stake? usually you're money, somebody else's money, watching a game, there is no script. that is the perfect thing for a competitive person, worry about making it too easy like you said. stuart: understood. >> i will never be all-in on it, but i understand in a free society you should be able to have access. stuart: mr. kilmeade, puritan. >> i showed a maturity you weren't expecting, right, stuart. stuart: let's not get carried away. brian. great having you on the show. >> i appreciate it. stuart: president trump will give a prime time address tonight all about border
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security. he is heading there on, he is heading to the border, by the way on thursday. will mr. trump offer some concessions to get everybody in on a deal? we're asking that question. democrats now have the house, got it. so the tax-writing an budget committee is coming up with new proposals, like maybe raising the corporate tax rate back up to 33%? what would grover norquist think about that? we'll ask him. ashley: not much ♪ 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 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,
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stuart: pizza hut is part of the yum brandses empire and they're expanding, wait for it, beer delivery, to five more states and 300 restaurants. this is ahead of the super bowl coming up shortly. how about that? you order a pizza, get beer delivered at same time. not bad.
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congresswoman alexandria ocasio-cortez proposing a new green agenda and she wants very rich people to pay a 70% tax rate to pay for it. grover norquist, who wrote an op-ed, titled, ocasio-cortez's 70% income tax rate is an opening shot in renewed war against taxpayers. grover is the americans for tax reform president. are you basically saying, not just the super-rich get a tax increase, it is everybody, is that what you're saying? >> absolutely. couple innings. cortez is talking about one tax increase, giving us top rate 70%, which would be highest in the world. higher than communist china. higher than everybody else. there is nobody in europe with a 70% individual rate. so, her proposal is to take us to the highest in the world on that tax. yarmouth, the 71-year-old democrat from kentucky, supposedly grown-up in the room,
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called for taking the corporate rate from 21 to 28, up by a third to 28, higher than china. higher than britain, higher than canada. higher than germany. to make us uncompetitive in the world. and add to that, all of the democrats and democratic party endorsed the trillion dollar tax on carbon dioxide, the carbon dioxide tax, they want to use to fund stuff on green things. so, these, and that is tax on middle income people. rich people use as much heating oil as you and i do, drive cars as much as i or you i do. this hits middle income people, lower income people, dramatically as happened in france. so this is a three-headed beast we're looking at. higher individual rates, higher corporate rates, gas taxes, energy taxes. stuart: i don't see how you can fight it all off. granted there is not going to be a 70% tax rate on super-rich.
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there will not be a huge new tax on businesses. i got it. but they will get something. they run the house. they run the important committees in the house. the democrats universally want taxes to go up. you can't fight everything. they're going to get something, aren't they? >> well the democrats wanted a tax increase for the last six years of obama and they didn't get anything. they only got tax increases when they had the house, senate and presidency. the only time taxes have been raised in the united states since bush left office, george herbert walker bush, back in 90, he raised taxes after promising not to, since then, they have never passed a tax increase unless the democrats had the presidency, house, senate. first two years of clinton. lost the house and senate. first two years of obama, lost the house. stuart: but look, only, i think it is less than, it is half the population, half of income earners pay any federal income
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tax at all. half of the to population pays none. why shouldn't that half the population hey, wait a minute we want improvements in our health care, improvements in the education, let's have the other half, the rich, have them pay for it? we're at that tipping point, aren't we? i know we've been there before. we're right back at the a tipping point where a tax increase on the rich may be more popular you would like? >> you would think that would be more true however, people who don't pay federal income taxes pay property taxes and sales taxes and energy taxes and gasoline taxes and all of the puritans who like cigarette, liquor taxes particularly hit lower and middle income people, middle income people, lower income people are battered by property taxes and all these other do-gooder taxes that bloomberg and other guys like to put on poor people. so they feel overtaxed. you may go, but not doing the income tax yet. they still feel hit.
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so that is one of the things that helps us fight taxes in general. lower income people are not excited about raising taxes because they think if you raise taxes on the bloomberg billionaires of the world, you know what? they're next. stuart: got it. grover, thanks for joining us. see you again soon. >> you got it. stuart: sure thing. secretary of state mike pompeo headed toed mideast. it is an eight-day tour. this after president trump announced his intention to bring troops out of syria. i want to know what is secretary of state mike pompeo main objective here? we'll ask that question. check the market please, because the nasdaq has now turned negative. oh. we were up 1%, a full 1% when the dow, when the market opened this morning. now we are turned south. more on that in a moment. ♪
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stuart: secretary of state mike pompeo kicked off a big trip to the mideast. it is a eight-city tour, in bahrain, united united arab emi,
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qatar. what is the over all objective of this big trip to the middle east? >> i think it has to be a message of reassurance, stuart, particularly after the president's announcement last month we were getting out of syria, which caught all of our regional allies by surprise. i think there is a lot of confusion and uncertainty about americans stays power in the middle east. was that part of -- stuart: was that a mistake on the part of the president? >> you can merit the debate of policy whether we're in syria. i think the way president handled it, to do prediplomacy, talk to the allies, warn them, put together a plan with them to mitigate any negative consequences. i think that probably should have handled better. stuart: in the president's heart of hearts he would like to get america out of the middle east whether that is syria organ fan. he wants everybody out really, doesn't he?
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>> i think that is certainly the message he sent during the campaign. he sent that message on and off during the first two years of his administration. and i really think he manifested that in his tweet last month, he really doesn't see return on investment of having thousands of american troops in the middle east ad infinitum. that we need to bring this to a close. the local parties need to step up and really carry their share of the burden for policing their neighborhood. stuart: what do you think about that? do you think we should be there for some time to come? >> i think the thing about the deployments, particularly inside of syria and iraq since 2014 and the fight against isis is they have been done at relatively low cost. this is not george bush's iraq war of 2003, with over 100,000 american forces. this was a very small american footprint of special operations
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forces, working in tandem with tens of thousands of local allies who have died in very large numbers at the front lines, having american assistance and really defeating isis, very much to a hair of its life. stuart: okay. sir, we appreciate you being with us. i'm sorry, this is so short. i have super heavy business news day today. thanks again seeing us, john. >> thank you. stuart: president trump will make the national address tonight from the oval office. maybe he is trying to reach beyond his base to the overall american voter. add that to his trip to the border on thursday, the president looks like he is putting the ball in the democrats court. my take on that coming up, top of the hour. ♪
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stuart: to steal an expression from the godfather, president trump has gone to the mattresses that is, it is far but the democrats over the border wall. no holds barred. he is all in. that is why he is making a national address from the oval office tonight. a tweet storm just won't do. when you've got it when you reach beyond base. you do what ronald reagan did or do, dear the airwaves and speak directly to the people. he may declare a state of emergency to justify building a wall. if he does not, he has to shore up support among republicans because the senate has 15 days to approve or overturn the emergency declaration. it is not a sure thing. to get that support, he may have to offer concessions. he wants to look reasonable. how about letting the dreamer stay in return for wall money or dropping a concrete wall and just going with border security.
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he needs wiggle room, but not too much or looks like he's caved. the president holds a strong hand. good think that's great. we've had an illegal immigration problem and it needs fixing. this is the time to do it and this is the president who can do it. an address from the oval office tonight in the church of the border on thursday. max and on pressure from the president. he's about to put the ball in the democrats quarter. the third hour of "varney & company" is about to begin. ♪ you heard what i have to say. in 15 minutes reaction from former i.c.e. director tom holman. i want to know what kind of concessions he would support. he's on the show shortly. check the big word. we're back to a triple digit gain.
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stocks off the highs of the day and here is what moved the markets. the reports in "the wall street journal" that the u.s. and china are far from reaching a trade deal. however, fox business has confirmed that the two sides will meet again tomorrow because talks are, quote, going well. right now we've got 112 gain from the dow industrials. we've got a new jpmorgan survey and it shows the number one concern for businesses this year is the shrinking talent pool. there aren't enough qualified workers. joining us now with anthony chan, chief economist at jpmorgan chase. that's a big problem, shortage of talented workers. >> approaches which is higher and there's a concern about inflation. stuart: that's a wonderful thing for the economy. >> the central bank worries about inflation but there's some good news. higher wages are causing people to come out in the labor force is increasing.
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the labor force in the last employment report if we continue to see the surge coming that will mitigate any inflation issues or problems were worried about today. stuart: so you're fairly confident in the state of the economy through 2019. but i understand, anthony chan, that you're worried about a recession in 2020. >> i think there's a risk. stuart: how big of a risk? >> the risk is bigger than 50%. i'll tell you why. if you look at an index put up by the federal reserve public said national financial condition, it has gone up 15 consecutive weeks. it's gone up about 0.14%. my research shows when it goes up as much as nine tenths of a percent 12 months later you get a recession. we're not there yet so i'm still pretty optimistic. i'm watching it because it's creeping higher. stuart: better than 50% chance of a recession in 2020 would be
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terrible news for president trump. >> there's a lot of things that can offset that. you get a trade deal is somehow the federal reserve continues to fall. all of these things are great possibilities and we don't get a recession. there's some hope. stuart: stay there for a second because i want to bring in the other side of the coin. you think there's a better than 50% chance recession in 2020. jason trejo, global investment chief, that view. you don't think there's going to be a recession, do you? >> not a seer and unlikely next year. maybe a third chance because the further you look out in the future the more likely recession will happen in that time frame. but you look at what anthony alluded to in that its conditions. concerned about the fed raising rates. last week chairman powell basically use the word patiently wait. we are going to be on pause and it gives us comfort that the concern the fed would raise
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rates to match. that was one of our big concerns. with dialback at risk for the time being. stuart: why do you wall street titans have a guide to each other. >> i see the economic data slowing down a little bit. if you look at the manufacturer, one of the most cyclical sectors in the economy, not slow down and people said don't worry about it. wait until the services sector comes out and guess what, that actually softened a little bit. the numbers are getting softer. a lot of the tax cuts boosted not only corporate profits but growth in 2018. a lot of that is running off as you go in the 2019. by the way the fact the government is closed, every two weeks this attracts a 10th of a percent off economic growth. these are all things that go away, but these are distracting from economic growth. stuart: all right. i just think politically a recession or a nasty slowdown
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right before the election in 2020 would be very bad news for president trump and the republicans. very bad news indeed. you'll get yourself a tax increase on last what happens to the economy then. >> i'm not political. i simply watched economic tide. stuart: thank you or anthony. sorry i had a go at you. it's harsh on wall street. i had to bring you down a sector. i want to talk market and back to jason. you say i believe the market is doing well. nice rally over the last three sessions because the fed is not going to raise interest rates aggressively. >> so we go back to christmas eve, the s&p is up 8% since that point in time so it's got a nice little rally over the past 2.5 weeks. some of it is the fed may be walt raise rates as much as people thought. positive news between u.s. and china.
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so that's getting better. the biggest factor is there's a lot of really bad news and pessimism. we talk about the recession. we can estimate pricing about a 50% recession by the end of this year. 50% think there will be a recession by the end of this year. 80% by the end of 2020. that means a lot of bad news in the price. if that's not the case, that means the markets have room to move higher. both this year and next year. stuart: i don't see how the two sides, china and america can totally walk away from these talks with no smiles, no handshake command real anger on both sides. i just don't see how that could happen. >> for both at this point in time. working with the resolution. the idea happens quickly as unrealistic. you had an existing deal between three friendly parties. it took a year for that to take
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place. the idea we can get a dual china in five or six weeks i think is optimistic. we want to see continual progress being made. stuart: if we've got any announcement that's positive, they'll import more of our stuff and will fix the problem with intellectual property, letter appeared that would make the market door. >> would definitely be good for economic growth. futures decide if the ceo for business, where do you invest? not sure if you should invest in the u.s., china or the market. if you take that off the table you have transparency and you can move forward. the economic data is companies just aren't sure. they're getting rid of that big positive for the market. stuart: thanks for joining us. this is the moment where we checked different markets. start with bitcoin. $4000. how about gold.
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it's been getting close to $1300 announced recently. today is that 12.85, but still an elevated level compared to the last couple years. the price of gas, first of all oil $49 a barrel of today. only 70 cents, but up nonetheless. the gas price keeps on edging down. right now the national averages $2.23. new york city's mayor bill to block io has announced that the city will soon -- soon start guaranteeing health care to have a resident regardless of their immigration that is. he said that today. in california and the democrat governor newsom announced proposals in his inaugural address, but he would get health care to illegal immigrants as well. what a story appeared were on it. president trump will give a primetime address tonight about border security. former acting i.c.e. director
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tom homan pearson will be joined by a mercedes slot play from the white house. a jampacked third hour for you on "varney" just ahead for you.
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stuart: the white house the white house says the irs will issue tax refunds despite the shutdown. the irs will process tax returns starting january 28th. they'll issue refunds as planned. 90% of the workforce has been sent home without pay because of the shutdown, but they will now bring back, quote, a significant portion of the workforce. you get your refund. back to my editorial. president trump addresses the nation tonight from the oval office. he's going to make his pitch to get the wall built. i say he's going to win. tom is homan is that, former
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acting i.c.e. director. should the president give any concessions to the democrats to get the wall built? >> one thing he should not give in concession is on sunday. i will just work people. you can't talk about daca until the close the loopholes because 160,000 people in the last year and a half, that is your next population in five years. they came in the country no fault of their own, too. so they should be off the table until they fix the loopholes. there are several things on the table such as the democrats wanted but then technology at the port of entries rather than tearing a car part with sophisticated x-ray equipment. the president asked for $600 million to do less interested technology at the port of entry. after $800 million for the humanitarian crisis to have more medical personnel, more medical supplies in a temporary facility
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that can handle the populations come across. i wouldn't go any further than it already has gone. stuart: he's got to convince the nation that there is a crisis on the border. that it is an emergency situation and that's why strong action, awol is required. convincing people that this is -- the crisis has arrived. >> absolutely appeared for the last month i've been asking the president to shut down the government if he doesn't get while funding. i've been pushing for weeks for him to address the american people. nancy pelosi refuse to listen to the border data that the secretary of homeland security wanted to present at the white house. she refused to listen to it. heard chuck schumer. go straight to the american people. is he going to give them the data the secretary tried to give the democratic leader double listen to it. how many drugs have been seized.
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how many victims of trafficking from across the border. not just a national security crisis. stuart: i think the president has to win. if he doesn't win he goes into this whole year of politics really weekend. >> i was in a meeting yesterday. they need to be clear because the whole talk about the law is in effect give. it's medieval. what is got to do is somehow get the data to the american people showing every place a border barrier has been built and illegal immigration decreased significantly. 100% of the time. so then he shuts down the democratic talking point that walls don't work. they have worked. the data supports it. walls work and that's why he wants a wall. stuart: you'll be watching tonight is a well i 9:00 eastern. tom homan, always appreciated.
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president trump's primetime address live coverage on the fox business network tonight at 9:00 p.m. eastern time. i'm going to move on to your money. how about this. an icon, that would be serious, going to ask a bankruptcy judge to liquidate, gone, i'll, finished. it couldn't reach an agreement on the four-point $4 billion takeover bid. it looks like they're finally going. amazon surpassed microsoft as the most viable company in the world. here's a look at her shares of the two companies. amazon at $10 microsoft up at one point or two. amazon still more valuable to microsoft. by the way, microsoft has teamed up with kroger, the grocery store chain to create new technology to make it easier and faster for you to navigate store aisles and pick up online orders. i believe you can watch down the aisle with a smartphone pointed out what you want and you charge
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right there. i think that's how it's going to work. future risk the. check this out for the korean automaker hyundai unveiling a new car that can walk. you're watching it. the wheels with robotic legs allow users to drive, walk or climb over treacherous terrain. they can step over five-foot gap could hyundai announced this will help save lives in disaster zones. good point. if you're looking for a new job in the new year, and u.s. news & world report compiled a list of the best jobs of 2019. using factors like salary and stress levels. next we will tell you the top five jobs on the list.
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stuart: is that to tell that this i've found a little unusual. a tribute to bohemian rhapsody, that the movie, from the guys at rockingham palace just hours after they want the golden globes. watch this.
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♪ ♪ stuart: well, i was hoping for actual movement from the guards there. the video i am told has achieved 100,000 views on twitter. before the break, according to u.s. news & world report, it is software developer. this is a study that looked at things like growth potential, worklife balance and salary. software developer number one. number two statistician. number three position assistant. four, dentist. okay. nurse any statistic.
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-- beneath the test. stuart: paris has been ranked the world's healthiest city. >> have you seen the amount of people smoking on the boulevard. stuart: research looks at things like the number of parks, gyms, health food stores, hours of sunlight. paris number one. number two, i can't believe this. sheng mei, thailand. it's over by barcelona. vancouver and the top-ranked american city, miami, which was number six. we are joined now by former louisiana governor bobby jindal. while not right now after the break, he says that democrats could split jump from his base by imposing a european-style tax on big tax.
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he'll make his case in a moment. the markets right now show a gain of 145 points. but again it's been cut in half, but worst lf triple digit. and will be back.
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stuart: we are holding onto triple digit gain. i pay half a percentage point up 125. very much off the heads of the morning but holding onto a trickle digit gain. got it. look who's here. charles payne, host of making money with charles payne. welcome back. good seeing you. >> ashley steve. stuart: i do want to say i was away for a couple of weeks. thank you very much. >> a lot of work. stuart: it's a mere three hours. i think this market feels like it just wants to go out. yesterday i saw three distinct things that made me feel really good. one was a measure market up-and-down stock and then new
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highs versus new lows. yesterday was the first time since september 21st. 52 week high than 52 week lows. december 24th, 1100 stops on the nasdaq have 52 week lows. yesterday 11. remember what happened when that changed in september. that's when the market started to fall apart. i was number one. the services number came in a little less than expected. there wasn't a knee-jerk selloff even though services are two thirds of the economy. electorate and saw some positive things. employment was up. and then some of the preannouncement yesterday roku announced their earnings. just a little nuances that i'm looking for i saw three of them
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yesterday. >> you feel like the market just wants to go. you sit here every day. you watch the market on account of basis. >> i think it's still very jittery and i do think the headline that is negative right now as we saw this morning about 300 down to 80. still the volatility is here. but, to economic data is suffering. there is no doubt. i still think -- >> those internals have more ups and downs versus the market breadth -- [inaudible]
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stuart: going to make an appearance. >> we all know that it's going to be the same year-over-year. but i think the expectations are low enough to be quite honest where we can get a more positive surprises than negative. of course revenues will be looking for because that's what hurt us in the last quarter. stuart: what about guidance. looking ahead it's going to be this, this fitness. >> even if you have revenue growth is going to be 20% instead of 34%. there's a lot of businesses that would be really pleased with that expectation but i think to your point a lot of these are advocating well. stuart: look, it ain't over. it may be a little growth in the stock market. it not over. the cycle is not done at this point. >> i think wall street becomes a lot more excited particularly the technicians and the dow closes above 24,500 he'll see a
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lot of money come back into the market. between now and then the anxieties are still out there. i'm really excited. the fundamentals is hard to deny. stuart: charles, i would just love to make some money so i'm going to watch making money with charles payne on every weekday at 2:00 p.m. eastern. it will be on today and charles is the admirable post. our next guest wrote this headline. the headline reads, if democrats were shrewd, bobby jindal, former louisiana governor will explain exactly what it means. i know what you said here to read the piece. you think democrats would be shrewd if they stuck a great big tax on social networks like the europeans. that's what you're saying, right? >> first off, thank you for having me. happy new year.
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it's my oldest child's birthday. happy birthday to you as well. my point in the op-ed was two points. one that democrats seem intent on getting rid of i.c.e. they seem intent on $30 trillion plus expansion of government spending on health care. none of apple when the white house. if they really want to compete with donald trump, i think they need to split his populist voters from voters. traditional conservatives want to cut taxes, cut regulations. donald trump uniquely appealed to those voters not a big banks as a candidate, donald trump said i'm going to reform the tax code in a way that won't benefit to companies, won't benefit the wealthy. my point is these tech companies need to be worried. they been so arrogant that they might unite the left and the
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right against them. donald trump talking about potentially breaking them up looking at antitrust reviews of the largest companies. folks on the left saying you want to do a europeans while tax on tech companies. i'm not for that tax, but my point is two things. they need to stop the extremely liberal policies if they want to win the white house and secondly, the tech company will be worried about the rising populist anger against their arrogance. >> one came on this program has been a discussion of big rather. we tend to feel that facebook and google in particular acts like a brother because they have enormous power in the into every aspect of our lives. just ignore the politics for a second. don't you think it's worthwhile reining in the google and facebook of this world to stop them becoming so powerful in this big brother fashion. wouldn't you like to do that? >> i think that's exactly right.
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obviously monetizing our data and they are getting more and more concerned about that. they give us these products. they are making money and there should be stronger protections for consumers. secondly, this becomes important. platforms have gotten so powerful that it would be if you went back in time and someone is able to own all the pointing process and decide whose voice has got to be heard. that's why conservatives are so worried about bias in hiring. you saw twitter ceo admitting that most of the work force has one ideology. the large tech companies are looking more and more like large universities with the mainstream media and that means they're growing increasingly out of touch with the rest of america. >> you're right, governor. how do you bring them in. how about making them liable if
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they lost your data for soldier data, you could sue them. that would rein them in, wouldn't i.? >> will look him in two different ways to approach this. we need more regulation, i think to really answer is more competition. stuart: how do you get competition for a facebook authority got 2 billion global users? how do you compete with that? >> if they're not going to police themselves and have an opportunity to do that, that's what you're donald trump and the department of justice thing do we need stronger antitrust concerns. innovative companies want to disrupt these have become the next facebook come of google, apple or microsoft. a lot of tech companies want to sell themselves. that's not good for technology. it works best when you've got the cycle of dynamism in the structure involved without.
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they're squelching innovation, and that's not good for our economy. i don't think that's good for america longer-term. getting that back as it not only for privacy concerns and having diverse ideological perspectives , but also good for economy as well. stuart: governor, we always appreciate you being with us. much obliged. >> thank you for having me. individual stories. individual stocks. oracle has revealed a $1 billion stake in the car company, tesla. join tesla's board last month. he's a longtime friend of elon musk and he has been critical of what he calls unfair media coverage. he put a billion dollars into the company. more problems for the smartphone business. they say profits and revenue are down. apple recently reported weakening iphone sales as people hold onto their old phones longer.
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big problems in what is the most important goal product of the generation. pizza hut expanding it delivery service to 300 restaurants. plans to offer a service and a thousand restaurants by the summer. yum brands down a buck. shares have the biggest two-day gain in more than two years up 16% since last thursday. netflix 15 golden globes over the weekend after the new movie or box was watched by tens of millions of people in just the first days of release. done just $2 today. president trump will give a primetime address tonight all about border security. he's heading to the border on thursday as well. next, mercedes schlock live from the white house. she's going to be talking to us about the president's address tonight. more information coming up we
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hope.
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liz: jpmorgan chase ceo jamie dimon sat down with maria bartiromo on monday. he is taking the slower economic
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growth. he said it is making trade prices -- [inaudible] >> now they're 16. there's a good reason for that. slow growth is a good reason. people do have concern about rising rates, trade. so sometimes that adjustment is reasonable and prices are now more reasonable and high yield had no bond issuance in december. the markets going to kind of open up and it looks like there will be growth. we will have slower growth -- [inaudible] a couple months ago.
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[inaudible] [inaudible conversations] stuart: okay, hard to hear, but that was secretary of state mike pompeo. he was talking about the president's address to the nation tonight in right at the end he said he'll be making news. i just caught that. or city slap that the spirit director of strategic communications. what news will the president make tonight? share with us, please. >> what the president gave his address tonight. you know, we know that it's
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going to be presenting his case to the american people as to why we need to secure the border. why there is a growing humanitarian national security crisis. we can't continue to move forward with a status quo approach of the border. stuart: well, he's going to need support from the senate, from both sides of the aisle. he's going to need the poor. will he make any concessions of any kind to win mass support and appear reasonable? >> the president has moved forward in a compromised. nancy pelosi kept talking about the concrete wall during the meeting he said look, will design it together. listening to border patrol agents and they believe that the most effective way to ensure were able to decrease illegal crossing from the border. in essence, the president has been wanting to negotiate it. it's why he stayed over christmas here and sent over a good faith offer to the
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democrats. in fact, specific items the democrats requested including humanitarian assistance at the border in as well as counternarcotics technology. the democrats refuse to negotiate. they refuse to come to the table ready to make a deal. >> at the political question. who wins? if democrats take in their heels, absolutely refused to negotiate, won't do anything except, do they lose the political argument? >> is very passionate about this issue. he sees the suffering that's happening not only to those vulnerable families who are taking this dangerous journey where you seen children being smuggled. women basically human traffic here at the border. at the same time were talking about safety for american
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communities. they surge in gang activity. a surge of drugs coming through the border. in essence the put the politics aside. you have said that we need strong border security. if you said when you john border security, but cut together and compromise and come up with a deal. >> on the change the subject because were very much a financial program in the new chair democrat, he wants to raise the corporate tax rate up to 28% to 24% now. what chance do you think it's not a success? >> should i go get larry kudlow right now? look, we have seen enormous success coming from the president tax reform legislation that was passed over a year ago. we have seen the five that these
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tax cuts are working. just last week we saw the jobs number report. it was significant and increase the job of over 312,000. we are talking about wages increasing a 3.2%. so we know by keeping our corporate rates lower, what is happening, stuart? corporations are investing in america. we are open for as. in the direction of not only increasing corporate rates, but also except in the radical ideas of the far left for example increasing tax rates to 70%. talk about what would cause a drag, a huge drag on the economy and the inability of america in the position we're seeing right now. stuart: don't worry. we'll get through the senate. mercedes schlock that the white house. i'm sure you'll be there tonight as well. thank you for joining us. appreciate it.
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be sure to stay with fox business. you can watch the president's address to the nation 9:00 eastern time tonight on fbn. new york city mayor bill deblasio announced today the city will start soon guaranteeing health care to every resident regardless of their immigration status. california's new governor has announced proposals for an expansion that will give health care to illegals. we are talking to our voice of reason in california. guess who that is? larry elder is next. ♪ it's not there's it's mine, mine, mine. and it always will be forever and ever. the rx 350l with 3 rows for up to 7 passengers.
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stuart: new york city mayor bill deblasio announcing right now. you can watch it right there. the city will soon start guaranteeing health care -- silence wherever resident, health care for all regardless of their immigration.is. that's what he's announcing right now. california's new governor gavin newsom announced proposals for medi-cal expansion, which would also give health care to all illegals. look who's here. we like to think of this guide
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is the voice of reason in california. his name is larry elder. welcome to the show. >> i wish people listen to the voice of reason, but they don't. stuart: you know, i was looking through some numbers today and i saw that gavin newsom proposed a big expansion and i figured out how on earth are they going to pay for this? and then i found out that california has a surplus of $30 billion. so, some of this medi-cal expansion can be funded. >> well, some of it i guess. i saw a cost analysis a few months ago. if you expand medi-cal for all including illegal alien, every man, woman and child are no co-pay, no deductible, no premium, you are talking about $400 billion a year. $200 billion of which are basically repurposed funds being spent on health care but they have to raise an additional
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$200 billion every year to fund what gavin newsom wants to do. there just isn't the money for it. unlike with nancy pelosi, and two impediments. the republican senate, republican president she has to deal with. the top executive in california has a democrat supermajority in the state senate. democrat supermajority in the state assembly. there's nobody there to say no. stuart: long-term, does governor knew someone to be the president of the united states? >> yeah, he wanted to be president along time ago in virtually every governor of california has either run for president thought about running for president and he's no different. he wants to be the next president of the united states. stuart: has he just taken the state in a big step to the left? what do you think? >> the democratic party has taken a big step to the left and you have people like elizabeth warren, alexandria ocasio-cortez talking about abolishing i.c.e.
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that's not an unpopular position. single payer for everybody. popular position within the democratic party. this one's a $15 minimum wage, college tuition to be free. these are mainstream popular positions within the democratic party in california should be reflecting not in my opinion. stuart: i just don't see any room for republicans in california. i just don't care. no support for free markets and individual liberty. it's just not there, is it? >> there is that why native californians are going to places like texas and florida, taking their taxes with them. hundreds of thousands of republicans have left this state and i don't see any change. jerry brown is leaving with high approval ratings. gavin newsom is coming in with high approval ratings. there seems to be -- they haven't hit the wall yet. i don't see anything changing.
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stuart: you keep refusing the offer of renting a room at my house in new jersey. >> as i said last week, the lion doesn't leave the serengeti. i'm going to stay here. thanks very much. we'll see you again real soon. liz claman, is she there? breaking news from the ces. government officials not showing up because of the shutdown. give me more. >> okay, we already knew the sec said he wasn't coming. sources have now told me here at the las vegas convention center, 182,000 people were the high-tech resources tommy the me the trump administration officials are canceling across the board. nearly every administration official will not be coming. talking about elaine chao who's the secretary of transportation. she has been a real supporter of
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autonomous vehicles and a self or she's been very involved in the development of thought. big proponent of that. she was to walk the floor and visit certain booths. the secret service had done that here. she is not coming. she has pulled out because of the optics. wilbur ross as of autonomous ride-sharing. he will not be coming. you have the government shutdown. tsa workers without getting a paycheck. a lot at mckaren airport. people walking up to them, thank you for working when you're not getting a paycheck. i heard one of then say, we're hurts. we're here. this is important. as we're hearing it, sources to fox business network telling us across the board, stuart, because of the government shutdown, do not want to send administration officials to hobnob here in vegas with high-tech, even though clearly the future for this country. back to you. stuart: liz, thank you very much
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for that late-breaking report. liz, we'll see you the rest of the day. thanks very much. check the market. we've come back a little. we opened this morning with a gain of 300 points. ashley: we came out of the gate strong. the headlines came out of china were kind of mixed, weren't they? stuart: they were. ashley: still far apart on a grand deal. make that what you want. market has been steady. >> i think it is all about china, whatever headlines come out, i think that drives sentiment. stuart: may be computers reading the key words. ashley: every headline. stuart: every headline like the two sides remain far apart. the computer reads the headline, sell. i think that is what happened. ashley: i think so. stuart: i do think computers are starting to run this market. it's a headline driven market. computers are driven by headlines. we're starting up 158. we're starting to crawl back up
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again. as i said we had been up 320. that was the high of the day. >> oil as well, that is often a bet, right, on macro strength. oil is strong today. stuart: got it. our time is up. neil, sir, it is yours. neil: stuart, thank you very much. we're following the dow up 155 points. battle to and fro on china deal. samsung says numbers will decline anywhere 18, to 19% in the fourth quarter. a lot of that having to do with what is going on with china. officials over there, trying to cobble together a trade deal, increasingly sounding like they could get one done. that we've heard before. that is the battle royale. you get a deal, you're facing china has to make good on a deal, becomes more problematic slowing down. on going government shut down.

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