Skip to main content

tv   Varney Company  FOX Business  March 5, 2019 9:00am-12:00pm EST

9:00 am
about two seconds. maria: thank you, cheryl. really delicious. great show, everybody. have a great day, everybody. seize the day. "varney & company" starts now. stuart: good morning to you. good morning, everyone. the new leader of the democrat party has emerged. it is alexandria ocasio-cortez. she is everywhere. she dominates the party. after a couple of months in congress, she's running the democrat show. just today, on this one day, here she goes on tax policy, she's co-sponsored a new wall street tax, on foreign policy, she's opposed to any u.s. intervention in venezuela, won't condemn the dictator maduro, on anti-semitism she supports ilhan omar. on campaign finance she's got problems with the transfer of $800,000 to her chief of staff. and turns out her mother fled to florida to escape high new york
9:01 am
taxes which her daughter wants to increase. is the aoc bubble about to burst? good question. i don't know the answer but i do know that china is about to spend big to get its economy moving again. with the world slowing down, this is big news. beijing will cut taxes, slash fees to pump money into the economy. there will be a massive increase in bond issues. another sign that china's hurting and president trump has leverage in the trade talks. to the markets. down 200 yesterday and up a little this morning. the dow is looking at a one-point loss. the nasdaq is looking at a five-point gain. pretty flat to open the day. here perhaps is the most promising news of the day. another person has made a complete recovery from aids. no trace of the virus in a london man who received stem cell transplants. it is only the second full recovery ever recorded. "varney & company" is about to begin.
9:02 am
stuart: big smile. remember the $1.5 billion mega-millions jackpot from last year? someone has finally claimed the prize. ash? ashley: hopefully someone related to me. well, we have no idea who it is. they want to remain anonymous and south carolina allows that, one of the few states that does. they will claim nearly $878 million. that's the largest jackpot payout to a single player ever in u.s. history. by the way, the drawing was all the way back on october 23rd. they had 180 days to collect it which would have run out next month. but no explanation as to why they waited so long. we do know this person has legal representation and they will be holding a news conference within the week. not the anonymous winner. just the lawyer. by the way, south carolina gets $61 million in income taxes from
9:03 am
this, and the convenience store in simpsonville, south carolina gets $50,000 for selling the winning ticket. so finally, someone has come forward. i know what you're going to say. stuart: shall we go through this again? legalized lotto is a rotten deal. the payout is very limited, you are taxed on the payout. it has nothing on the old numbers game. what's wrong with you? susan: you have to play to win. stuart: throwing your money away is all it is. the producers said wrap it up. we don't want your sour face on the air very long. house democrats are reintroducing a wall street tax. alexandria ocasio-cortez is the co-sponsor of it. james freeman, a "wall street journal" editorial page guy, is with us this morning. if this thing were to pass, it would raise $770 billion over a
9:04 am
ten-year period. what effect will that have on wall street, for example? >> yeah. she chased amazon out of new york. maybe she doesn't really want wall street there. i would wonder what a lot of her constituents who are non-billionaires but may benefit from the financial economy being centered in new york city have to think about this. the point is if you want to collect $80 billion of revenue every year, you are going to have to go way beyond the billionaires that she may want to talk about. we should remind people first of all, the top 1% of income earners in this country pay 90% of federal income taxes already but if you have a broad tax on stock transactions, you are hitting everybody. you are hitting americans with their 401(k) plans. you are hitting everyone who has a pension because those pension assets often invested in equities among other things. stuart: what surprises me is she's been in congress less than three months. she's 29 years old and she's now commanding tax policy to raise
9:05 am
three quarters of a trillion dollars. that's an extraordinary position for that person to be in at this time. >> it's a warning shot. it's not going to be enacted in this congress but 2021, it's a preview of things to come. stuart: what about former colorado governor john hickenlooper, he's a declared candidate for 2020. he declared yesterday. he's the moderate in the field at this point. >> yeah. well, it's funny, relative to alexandria ocasio-cortez, bernie sanders and all the democratic senate candidates who have signed on to the green new deal, he's a traditional liberal. he has increased the size of government in colorado. he's raised taxes. he's expanded medicaid and other programs, socially very liberal, gun control, et cetera. but he's not declaring war on the private economy and he doesn't think republicans are evil. he wants to negotiate with them. so this is kind of a test in this primary process of whether
9:06 am
kind of an old-fashioned liberal as opposed to a dedicated progressive leftist can survive. stuart: is he the moderate before joe biden jumps in? >> yeah, and even biden, we're not sure where biden ends up, if he gets in the race, because he suggested maybe he's going to be the moderate, last week he recanted after saying mike pence was a decent guy. well, if you won't even acknowledge the humanity of your political opponents, i think that means you are positioning yourself pretty far left. stuart: i don't think joe biden has a prayer. if you are the kind of presidential candidate who caves at the first sign of opposition, walks back a perfectly normal comment about an opponent, you should not be the president of the united states. >> agreed. stuart: stay there. you're not done yet. switching gears to the economy, we have some weak signals recently. by the way, the atlanta fed says this economy will only grow .3% in the first three months of this year.
9:07 am
now, that's truly weak. economist john lonski joins us now. give me your prediction for growth in the first quarter. >> i think it's going to be less than 1%. stuart: 1%? >> the government shutdown is involved here, that slowed consumer spending. i think in the second quarter it grows by 3.5%. it does make a nice rebound in the second quarter. stuart: wait a minute. >> for a year we grow 2.5%. stuart: we were 2.6% late last year. you say under 1% first three months of this year. but then a bounce back. what creates that bounce back? >> you know, part of this is going to be adjustments to inventories and i said earlier, that government shutdown will prove to be costly. it's shaving real gdp, even without the government shutdown, we are probably looking at growth in the range of 1.5% to 2%. i wouldn't panic over this. a more moderate pace for the u.s. economy should lengthen the current recovery. stuart: yesterday, i think it was about 10:00 in the morning,
9:08 am
10:00 eastern time, we got some relatively weak news on construction spending, and the market started to fall down. it went down minus 400 points at one stage. was that because of the slowing economy? >> well, you know, in part it was but let's not forget, in that drop in the overall market, we did have a nice gain posted by an index of housing sector share prices. so you tell me, what's going on? residential construction spending was down in the month of december from november, yet investors are pouring money, more money into stocks that have exposure to the housing sector. the expectation is that housing's going to benefit from this latest reduction by mortgage yields. they are down from a year ago. if that's the case, we should end up doing pretty well in 2019. stuart: tell me about china. they are going to slash taxes, slash fees, a whole bunch of new bond issues. they are trying to restimulate their economy. that's good news for everybody. >> that's true. that's true.
9:09 am
they are trying to stabilize what is an economic slowdown in china. a lot of this brings back memories to me of what happened in 1998, 1999, late 1998. we had a global slowdown and in response, we had u.s. interest rates move lower and that provided a nice lift to u.s. economy in 1999. by the way, you know in the second half of 1998, the unemployment rate was very low, averaging only 4.3%. the real economy is growing by more than 5%, yet the credit market found a way, the fed found a way to bring interest rates lower to lengthen that economic recovery. stuart: john lonski, always sees the bright side of the economy and so far, sir, you have been right. kudos to you. >> i hope that continues to be the case. stuart: john, thank you very much. couple of individual companies' stocks moving. first off, kohl's, better sales, more foot traffic there. they are looking to the future. they say business is going to be
9:10 am
pretty good in 2019. look at the stock. that's a retailer up 5%. same story at target. much bigger company. sales up, online sales surging 31%. look at the stock. a gain there of over 5%. that's a major company, 5% up on its stock. overall, very small gain for the dow industrials. small gain for the nasdaq as well but an upside move at the opening bell. google continuing work on that search engine for china. it will comply with beijing's censorship rules. just three months ago, the company's chief denied any immediate launch plans for that china project but reports are they are going to do it. oxycontin maker may file for bankruptcy, facing all kinds of lawsuits over the opioid epidemic. the attorney general for texas coming up. will that state get any money from a bankrupt perdue?
9:11 am
venezuela, opposition leader juan guaido is back in the kun tra country and not staying quiet. i want to know what happens now in venezuela.
9:12 am
9:13 am
9:14 am
stuart: venezuela, the opposition leader juan guaido is back in the country. you see him arriving there. sets up a political showdown with disputed president nicholas maduro. joining us, mary anastasia o'grady. he arrived back, we have the
9:15 am
video, played it, didn't appear to be any maduro thugs anywhere near him. he's not been arrested. now what? >> i think they didn't go after him because they know that the entire country is behind him, basically, so they would make more trouble for themselves if they went after him, particularly officially. i mean, they may end up having somebody, you know, having him have an accident, who knows. but officially, they're not going to do anything to him. what next? i think basically we are waiting for the oil sanctions to work so the government, the oil fields are slowly falling apart. stuart: what is he going to do? isn't he going to march on caracas? >> no, there will be more marches but basically we have to wait for the military to take that next step. i think what's going on behind the scenes is that there's a lot of negotiation about what's in it for me. the military is not necessarily going to defend maduro but they want to make sure their interests are protected in any kind of transition. my sense is that's what's going on behind the scenes. stuart: are you still sticking
9:16 am
to your idea that the cubans might shoot maduro if he tries to leave without their permission? >> well, the cubans no doubt are part of this negotiation. whether they're there at the table or just whispering in his ear what to say and telling the military what to say. but the cubans have this, you know, survival interest which is that they need to keep their foothold in south america. they're not going to let go easily and they have the threat of asymmetric warfare where all of these thugs they have trained and armed could act up and basically cause some kind of long extended terrorism in the country, if they're not dealt in. stuart: alexandria ocasio-cortez. my pronunciation is perhaps not as good as yours. nonetheless, aoc, she declined to condemn maduro. she had the opportunity to do it and she's saying america should not intervene in venezuela. it's a complex issue. what do you make of that?
9:17 am
>> well, i think most venezuelans would prefer if she would stick to destroying the u.s. health care system. because you know, when someone calls something a complex issue in a sound bite, it's really code language for i don't know anything i'm talking about but i want to basically send a signal to my hard left backers that i denounce the u.s. military and she also took a swipe at elliott abrams, who was a hero in the cold war. she smeared him saying he had pled guilty to crimes. know what he got for his crimes which by the way, were a way to get away from the independent prosecutor at the time, he got 100 days of community service and a $50 fine. okay? he really didn't do anything except he didn't administer a humanitarian aid program for the contras properly out of the state department which he was not basically, you know, able to
9:18 am
do and so, you know, smearing him, that was just a very low comment from her. stuart: this may not be your turf but i think the aoc bubble is going to burst fairly soon. what do you say? >> i think she's going to remain a player for the very hard left in the united states, but i think what is going to matter is whether people like us and even moderate democrats are able to expose her for what she is, which is basically a phony and a fraud. stuart: okay. let's leave it right there. strong stuff. susan: definitely. >> she doesn't know what she's talking about. stuart: so good. keep it up. keep it up. thank you very much indeed, seriously. thank you. new tweet from president trump just in on the democrats. he says quote, the greatest overreach in the history of our country. the dems are obstructing justice and will not get anything done. a big fat fishing expedition.
9:19 am
desperately in search of a crime. when in fact the real crime is what the dems are doing and have done, end quote. that's the trump missive first thing this morning. take a look at futures. we are sort of flat, down a point on the dow, up eight on the nasdaq. we were down 200 yesterday, flat, i will leave it at that. we're flat. here we go again. alexandria ocasio-cortez sponsoring a new wall street tax. next, one of her freshman colleagues on the financial services committee, john rose, tennessee. i want to know what he thinks about aoc's tax plan. i'm also going to ask a congressman about his first two months on capitol hill. is it as bad as he thought it would be? we'll be right back. - my family and i did a fundraiser walk
9:20 am
9:21 am
9:22 am
in honor of my dad, who was alzheimer's.
9:23 am
i decided to make shirts for the walk with custom ink, and they just came out perfect. - [announcer] check out our huge selection of custom apparel for every occasion. you'll even get free shipping. get started today at customink.com. stuart: another tweet from the president, just in. republican approval rating just hit 93%. sorry, haters. make america great again. got it. i think we better get back to the democrats' tax proposal. they want to slap a tax on every bond or stock transaction. they say it could bring in $777 billion over ten years. congressman john rose joins us now, republican from tennessee. congressman, are you you are on
9:24 am
financial services committee. what do you think of this tax proposal? >> not a big fan of it. we have the markets that are the envy of the world and i think we want to keep them that way. generally when you tax something you discourage it. so i'm not a big fan of taxing our financial markets in this way. stuart: there's not much you can do about it. you are in the minority on that committee although it's not likely to become law. you can't do much about it on that committee, can you? >> probably it will be tough for us to stop it in the house but of course, thankfully, the american people have entrusted republicans with control of the senate, with the presidency so i'm confident this will not become law. stuart: i don't want to spend too long on this, but some of us are really surprised that someone who has been in congress for, what, a couple of months is 29 years old, should now be proposing a tax which will reap in close to three quarters of a trillion dollars. i mean, how do you react to that? >> i'm new at this.
9:25 am
this is the first elected office i've held just like is true for my colleague on the other side of the aisle. what i'm doing is focusing on trying to serve the people that sent me here, the 713,928 people of the sixth district of tennessee. i learned a long time ago that it's probably better to keep your mouth shut and listen when you don't know much, and learn as much as you can so far be it for me to give others advice but that's what i'm doing. stuart: i just saved this until the end because you have been in washington less than three months now, and as you say, it's the first elected office you have ever held. is it as bad as you thought it was going to be? >> you know, it's a real honor and privilege to be here and to represent the people of my district and to have the opportunity to serve in the congress in the greatest country in the history of the world, and this great capitalist republic that we have. so it's a real honor. but yes, washington has a lot of dysfunction and that has been a
9:26 am
real eye-opening experience over the last three months. stuart: congressman john rose, tennessee republican, thanks for joining us. appreciate it. >> thank you, stuart. stuart: quickly, we will open the market dead flat. virtually flat, almost across the board. 12-point gain for the nasdaq, maybe. back in a moment. i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen.
9:27 am
my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. it's soft... the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, and the door ensures a watertight seal, so you never have to worry about leaks. kohler's walk-in bath was designed with convenient handrails for added stability and safety. the wide, ergonomic seat is tilted back for comfort and stability. it has a channel so water won't pool on it. and it positions you perfectly by the controls. while the heated seat soothes your back, neck and shoulders, warming up your body before, during and after the bath. kohler is an expert in bathing,
9:28 am
so you can count on a deep soaking experience. honey, are you seeing this? the kohler walk-in bath comes with powerful, fully adjustable hydrotherapy jets and our exclusive bubblemassage. oh yeah, that's the stuff. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call... for a free kohler nightlight toilet seat with in-home quote, or visit kohlerwalkinbath.com for more info. would you mind passing my book there. once again, that's... and financing is available for qualified purchasers.
9:29 am
9:30 am
stuart: 15 seconds to go, we will open this market not expecting a lot of excitement at the opening bell. maybe a slight move down for the dow and a slight move up for the nasdaq. that follows a 200 point drop yesterday for the dow. here we go. 9:30 eastern time, it is tuesday morning, it is march 5th. we have opened with a fractional gain of seven, of eight. 25,800 is the level. we just dropped to the downside. flat to slightly lower open. i think it's the same story on the s&p 500. show me that, please. that is, there you go, up .04%. that's nothing. how about the nasdaq composite, what's that doing in the very first few seconds? it is up .03%. can i call this a flat open? i guess i can. come in, please. mike murphy is with us. keith fitz, susan li, ashley webster. you know, stocks were up yesterday at this time, then turned around to finish down
9:31 am
200. what happened, murph? >> gravity set in. we have a ten-week rally, people didn't see a reason to keep buying so some chips started coming off the table and that continued to kind of exasperate. we got down over 400 and rallied toward the end. >> it was interesting because optimism about the trade deal at the open quickly turned to skepticism. it was interesting because we feel like it's moving along but until we get more details of what it's about, they took their money out and went into treasuries. stuart: yes. susan: don't forget, the stimulus on the table from china last night should help the rest of the world as it can in 2008 when china spent over $600 billion. i think there might be a stimulus play here and i'm thinking it's coming from outside the border. stuart: that's worth pointing out. china will spend big in the immediate future. susan: trillions of yuan. yes. stuart: that could be a factor today. also, we have two big retailers reporting. target and kohl's. i believe both are way straight
9:32 am
up, very good profits. susan: huge. same store sales in 2018, the best in ten years. stuart: 5.4%, i think. susan: 5% for the whole year. 5.3% for the quarter. better than economists forecasted for the last quarter of 2018. don't forget, americans are expected to spend over $4 trillion, close to $4 trillion in retail sales this year. stuart: you are stealing murphy's thunder here. susan: am i? stuart: how great the consumer is doing in a sea of retail ice age. >> the consumer continues to spend. they may not be spending at certain retailers, specific retailers, but the consumer is going out there spending on amazon, spending in walmart. apparently they are spending in target as well. some of the other retailers have major issues but the consumer as of this point in time is not an issue. stuart: it's about time i brought keith fitz into this. there's a specific story i want his comment on. google reportedly still working on its controversial chinese search engine, project dragonfly. it will comply with chinese
9:33 am
censorship rules. you know, that means that we, google is helping chinese communists spy and surveil their own people. i think that's appalling. what say you? >> well, i think it's appalling, too, but here's the thing. from a business standpoint, doesn't matter whether you are talking about big macs or search engines, you got to adapt to the local market. if google wants to be there, that's a business decision. whether the social ramifications go forward, i would argue we have a bigger problem here at home with facebook and instagram, for example. we are giving them the information. there's no spying needed. stuart: would you buy google stock? >> yeah, you know, this is a lot like looking at a sin stock at this point. yes, i would because of the business proposition. i spent a lot of time in china. yes, there's a lot of problems but that is clearly where the world's growth is going to be. stuart: okay. moving on, quick check of the big board, three and a half minutes in. we are down eight points. flat to lower, that's what we've got this morning.
9:34 am
facebook, i want to bring keith into this one, facebook, you know the two fact oor syste supposed to keep your account more secure, turns out facebook might have been making those numbers public. they're not supposed to do that, are they? susan: no, not at all. also, when you sign up for that, you have to provide additional information like phone number and e-mail and you can't opt out of this as well. where is the security? people say two factor authentication is a great idea but if it's searchable it's not too secure. stuart: i take your point entirely. they are not supposed to be doing that. this is another bad p.r. for facebook. >> exactly. here's the thing. how bad does it have to get before we actually see something that looks like a real apology from zuckerberg? this is just running rampant all over the people who trust that application or maybe who don't
9:35 am
care but either way, that's over the line. if i actually had hair it would be standing on end. stuart: you would not buy facebook stock for those reasons, political reasons? >> no, in this case, no, i'm dead set against it. i think the company's got some serious logistical challenges, got some legal challenges and morally i find it repugnant. stuart: okay. you ditched your facebook stock, didn't you? >> for reasons like this. with all the investment decisions you make, to get into bed with people who are running a business that you don't really agree with a lot of what they're doing, there are better places to invest your money. stuart: what else? facebook is at $168 as we speak. then chipotle are playing up their vegan and vegetarian offerings just in time for lent, which starts tomorrow. isn't the mexican grill all about meat? >> it is, but they have plant-based meat that vegetarians will eat. you saw weight watchers' earnings last week, they were down really big because of these diets like the paleo diet and
9:36 am
different specialized diets. this is what chipotle is trying to get involved with. they have certain bowls you can eat if you are on that diet. great move for them. stuart: the stock, $621 a share. a month or two ago it was $400 or something. next case. fortnite, its rival, apex legends, listen to this, it's reached 50 million players in its first month. so murph, should fortnite be worried? >> i'm the resident expert. it's on in my house 24 hours a day. short answer, no. fortnite has created an amazing game that can go across all different platforms. you could be on your ipad, i could be on my iphone, ashley could be on his personal computer, we could all play against each other. susan: i can play too, by the way. >> i didn't know the next gadget to bring in. here's the thing -- stuart: you might win. susan: exactly.
9:37 am
>> this game is very hot, it's the game. my kids downloaded it over the weekend. fortnite got $2.5 billion last year. they have a moat around them. this will be short and sweet for apex. fortnite will be the winner. susan: impressive you have 50 million players after one month. that's already 25% of those that play fortnite. it's being sold on xbox and ps consoles as well as downloadables. stuart: keith? >> this is like pokemon go. that came and went. video games come and go. the key is do they stay with it. i think that is a very viable point. stuart: apex legend is an electronics arts game. that's important. a youngster explained twitch to me just the other day. susan: you didn't know what twitch is? stuart: i do now. let's move on to tesla. a big balloon bond payment, got
9:38 am
it, unveiling the model y crossover, but keith, you say tesla's troubles are only just starting. make your case. >> pardon the pun but he's running out of gas. you're looking at huge cash stream, introduction of so many models, this is pump, pump, pump, pump to try to preserve that stock price. i think you've got competition coming from all the major players that are better, faster, quieter. you put the metric on it, i think elon's magic, the shorts will be vindicated. >> i think there's a lot of selling pressure coming in. this selling pressure will start to pick up steam like a snowball rolling downhill. last time this happened a tweet came out saying we have 420 buyout coming so that reversed it. i don't know what saves it this time. i think the shorts will pick up momentum. stuart: interesting. okay. $276 right now on tesla. this to me is the transportation story of the day. southwest airlines has launched new flights to hawaii. the cheapest ticket will come down to $49. ashley: already sold out.
9:39 am
a few left at $79. stuart: that's the democratization of hawaii. susan: only for a two-day launch from san jose or oakland. it's promotional at this point. stuart: you're right on this. they made a big splash with this and odds are their ticket prices to hawaii are going to be very, very low compared to the competition, where prices are very high. you can't -- well, you could, your entire family to hawaii would cost an arm and a leg. >> this is good for the consumer. it gets people to spend more money on travel. susan: new market for southwest because they are looking for inter-island routes as well, selling for $29 on the low fare seat. stuart: you approve, i take it, keith? >> well, i do. i spent some time, two years in hawaii on my way back from japan the first time i was there. stuart: was that a layover? what were you doing there? >> i got my master's while i was
9:40 am
over there. inter-island transport is a big one because if you can facilitate local commerce you make hawaii stronger. getting there and back, that brings tourist dollars, it's valuable, it's a good move but it will pressure hawaiian airlines because it's been a quasi-monopoly for a long time. stuart: their stock went down quite sharply. got it. it's that time, ladies and gentlemen. mike, keith, both of you, thanks for joining us. good stuff. appreciate it. now, the big board shows a 39-point loss ten minutes into the session. that puts us back at 25,786. we are 1100 points away from the all-time high which i thought we were going to reach. ashley: yes, you did, by the end of last week. stuart: been more than 30 years since tom cruise flew into movie screens in "top gun." the founder of the navy's real life top gun program will be on this show in our next hour. i will ask him about boeing's
9:41 am
new pilotless fighter jet. will that make fighter pilots obsolete? volvo wants to reduce your need for speed. we will tell you why the automaker is putting speed limits on its cars. and from aoc to bernie sanders, socialists have been attacking the rich and calling for fairness. up next, we have a guest who wrote a book about the upside of inequality. what's so good about it?
9:42 am
9:43 am
stuart: minor loss to get things going, down 24 points on the dow industrials. here we go. volvo putting a speed limit of 112 miles an hour on all its cars. kristina partsinevelos at the new york exchange, tell us why
9:44 am
they're doing this. kristina: because they want to stop fatal accidents. i know you may not like this situation because it's regulations and they are restricting you from driving fast -- stuart: no, no, no, no, no. what's safer about driving at 112 miles an hour? why is that safer? kristina: because they believe that speeding is one of the major reasons for fatal accidents, which is why they put a restriction on their vehicles, it's going to stop people from driving fast and knocking people down and unfortunately, killing them. stuart: 112 miles an hour is fast, any way you slice it. kristina: right. for them it's one step towards their image, right, the image of being the safest brand out there. by 2020 they actually have a goal where they want zero fatalities or serious injuries with a volvo vehicle. zero fatalities. imagine how that will work in germany when you have highways that don't even have speed limits and just generally quickly, they are also working on technology to limit speed in cars driving near schools and
9:45 am
hospitals as well. i don't know how they are going to do this, address intoxication and distracted driving in their cars. they are working on a technology for this. right now, like you mentioned, 112 miles an hour, 180 kilometers per hour, restriction on their cars going forward. stuart: okay. not sure i will be buying a volvo. kristina, thank you very much indeed for joining us. we appreciate it. kristina: thank you. thank you. stuart: i don't want someone controlling my speed. thank you very much. the joys of driving. the left loves to trumpet the perils of income inequality but our next guest says inequality isn't such a bad thing. joining us, the author of the book "the upside of kwin inequa" ed connord. give me a couple bullet points. what are the upside of income inequality? >> america has middle class incomes which are 15% to 30% higher than the rest of the world's. we would be even higher, the world would be even poorer without the outsized
9:46 am
contribution of american-made innovation by some measures, america produces seven times more innovation than the rest of the world and we know why it does that. it gets exposure to cutting edge ideas and companies like google and microsoft, and that increases the payoffs for risk taking. what we find is that americans take, they work longer hours, they get better training, they take more entrepreneurial risks, they produce a lot more innovation and they are doing that with about half the amount of talent per capita as the rest of the world. i think what you find is that capitalists and socialists want the same thing from our talent. we want the maximum amount of value from others for the lowest possible cost. stuart: the difference is we disagree on the price. i think the comparisons between the u.s. and europe show that it takes a fairly high price to get your talent to work hard and take the risks that increase middle class income. stuart: is there a model component to the argument? the left will say it is wrong,
9:47 am
morally wrong for someone to make millions and millions of dollars while other people make a few thousand. there's a moral component. how do you address that? >> i think there is a moral component but i think it's different than they think it is. i think if you are born with talent, that you have a moral responsibility to put that talent to work. we know even liberal economists will agree that you have to put $5 of value in other people's pockets to put a dollar in your own pocket. so we don't want people to go off and be college professors and music teachers. we want them to buckle down and try to serve customers more effectively than competitors. we want single-minded determination. every morning you wake up and say i'm going to serve my fellow man. then you go to work to try to feed your family. the way it really works is you serve your fellow man by serving them as a customer. we need more and more of our talented people to do that. what we find in europe, when they don't have high payoffs for success, their talent works a lot less than our talent works.
9:48 am
stuart: thank you, ed. you have just given me justification for my renunciation of socialists in capitalist america. i don't care about income inequality so long as my income is vastly unequal to my competitors'. i want to win. is there something wrong with me? >> no. i think that's exactly what we want. what we want is when you do that, you increase everybody else and that's what we want. stuart: you and i are helping to raise all boats. we are good people. >> i think so. stuart: yes, we are. ed, thank you very much indeed, sir. appreciate it. check the dow 30, because we moved a little lower for the overall dow. we are down 51 points now. 20 of the dow 30 are in the red. oxycontin's maker may be heading for bankruptcy. next, one of the attorneys general who sued perdue over its role in the opioid epidemic. will that state, texas, get its
9:49 am
money from a bankrupt perdue? fair question. want more from your entertainment experience?
9:50 am
just say teach me more. into your xfinity voice remote to discover all sorts of tips and tricks in x1. can i find my wifi password? just ask. [ ding ] show me my wifi password. hey now! [ ding ] you can even troubleshoot, learn new voice commands and much more.
9:51 am
clean my daughter's room. [ ding ] oh, it won't do that. welp, someone should. just say "teach me more" into your voice remote and see how you can have an even better x1 experience. simple. easy. awesome. and our shirts from custom ink help bring us together. we just upload our logo, and if we have any questions, customer service is there to help. - [male] custom ink has hundreds of products to help you look and feel like a team. get started today at customink.com.
9:52 am
stuart: the maker of opioid drugs, perdue pharmaceutical, preparing for a possible bankruptcy because they have been hit with all these lawsuits. joining us is the state of texas
9:53 am
attorney general, ken paxton. mr. attorney general, texas was one of six states that sued purdue. other than making oxycontin, what did they do wrong? >> so they lied to doctors, told them that these drugs that they were prescribing were not addictive and as a result, these doctors prescribed these addictive opioids to patients and a lot of people were addicted and their lives were harmed or ruined. stuart: if they go bankrupt, if they declare bankruptcy, can you get any money out of them? >> you know, bankruptcies are complicated. there's different types of bankruptcies. we know that this company has made billions of dollars. they have paid out billions of dollars to their owners so you know, it's a complicated process. we certainly think that there are assets there and we think there's been money paid out to the owners. potentially we could go back after it. stuart: you would be behind the plaintiffs, as in the patients who were damaged by this. you will be behind them in the payments, i take it? >> yeah. there's always, you know,
9:54 am
creditor preferences, there's order of payments. we will be in the mix but i do think there will be money there. stuart: it will be years before you see it? >> you know, all of these cases are like that. but this is our job. i'm a total free market guy, i want companies to have as much opportunity as they can, less regulation is usually better. but when you lie to consumers, you lie to doctors and it has a harmful effect, that's a problem. stuart: the opioid crisis is a bit like the tobacco thing, isn't it, where big companies really did wrong and they are going to pay for it. >> that's exactly right. you know, as i said, we want companies to have as much opportunity to create jobs and wealth in this country, but they cannot lie and defraud customers and doctors. stuart: sir, it looks like the senate probably will vote against president trump's emergency declaration for the border wall. the supreme court might also overrule it as well. if both of those things happen, and that's a possibility, what do you do in texas? >> well, look, we have other
9:55 am
options and we are still hopeful that at some point, congress will do something about this. i certainly understand the frustration that the president has with the lack of action by congress, because we have been waiting for years to have more done to prevent the issue that we have on our border which is a porous border that affects us as it relates to drugs, crime and obviously, human trafficking. stuart: what can the state itself do? can you build your own wall? >> no. it's really frustrating. arizona v u.s. pretty much prevented states from doing anything the federal government had control over. we think they have abdicated their responsibility but unfortunately, the way the supreme court has interpreted that, we have to sit on the sidelines while the federal government often does nothing. stuart: real fast. if beto o'rourke got his way he would remove walls already built. what do you think would happen? >> we would have more crime, more drugs, more human trafficking. i don't understand the upside of that. our border would be more at risk. my state would be more at risk
9:56 am
for other problems. i don't understand that at all. stuart: mr. attorney general, ken paxton, thanks very much for joining us, sir. always appreciate it. >> thank you. have a great day. stuart: alexandria ocasio-cortez grabbing all kinds of headlines seemingly every day. her every move highlighted by the media. i say her power, influence and reach at this moment seems to know no bounds. my take on aoc, next. fact is, every insurance company hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands?
9:57 am
. .
9:58 am
might mean a trip back to the doctor's office just for a shot. but why go back there
9:59 am
when you can stay home with neulasta onpro? strong chemo can put you at risk of serious infection. in a key study neulasta reduced the risk of infection from 17% to 1%, a 94% decrease. neulasta onpro is designed to deliver neulasta the day after chemo and is used by most patients today. neulasta is for certain cancer patients receiving strong chemotherapy. do not take neulasta if you're allergic to it or neupogen (filgrastim). an incomplete dose could increase infection risk. ruptured spleen, sometimes fatal as well as serious lung problems, allergic reactions, kidney injuries and capillary leak syndrome have occurred. report abdominal or shoulder tip pain, trouble breathing or allergic reactions to your doctor right away. in patients with sickle cell disorders, serious, sometimes fatal crises can occur. the most common side effect is bone and muscle ache. if you'd rather be home, ask your doctor about neulasta onpro. pay no more than $5 per dose with copay card.
10:00 am
stuart: it is 10:00 in new york city. it is 7:00 in los angeles and san francisco, california. the market is down about 60 o points that puts us bac at 25,700, a long way from the record high, we're at the 25-k level. we have two important indicators coming across the wires at us. first off a read on the service sector. ash? ashley: good one, blow out number, 64.7. the estimate was 57.3. stuart: whoa. that has not made much of a difference so far. ashley: 59.7. i was getting too carried away. stuart: so what is the number? ashley: 59.7. stuart: 59.7. ashley: still very good. still beats the estimate. anything above 50 shows expansion. it's a good number. stuart: service sector indicator of expansion. ashley: correct. stuart: repeat, new home sales. susan?
10:01 am
susan: 621,000 on annualized rate. higher than the previous month. a bit of an uptick here. looks like the northeast is powering ahead up 45%. meantime declines in the midwest, increases in the south and west by single digit. this comes off the existing home sales we got hitting a three-year low, which makes up majority of the housing market. new home sales around 20% tore so still there is up tick here better than expected. stuart: take it. scott shellady is with us. i need your analysis of these two things. improving service sector and improving new home sales sector. your analysis, please? >> once again repeating the drum of good news here, stuart. this is exactly what the market will want to see. it will take a little bit of time before we catch up to what that is. i would like to say this. just so you get an idea about gp and growth, ism between 54 and 55. 54 1/2, portend as gdp of 2.4%.
10:02 am
so this is a really, really good number. i would like to see going forward. this is once again, all the things we've been lining up, green gas shoots of good recovery and good, sustained growth are all here so this is very good for the economy. stuart: that is very good, scott. all kinds of predictions for the extremely weak first quarter. the evidence 2 1/2% growth rate, q1. confirm that please? >> isn't it funny people are running excuses over the board and they haven't really seen the number. like they're preapologizing, right? numbers like this i love to see. stuart: i'm in the pre-apologizing business on occasion. stay there for a second. i will deal with the market. come from minus 40, minus 19, minus 20. not much impact from the two numbers. there you have it. 25,800 on the dow. and now this. the power, influence and
10:03 am
reach of alexandria ocasio-cortez knows no bounds. she is everywhere and making pronouncements on everything. look at this, just from today, this is just one day's worth of headlines. tax policy, she has cosponsored a bill to put a tax on wall street transactions t would raise 770 billion over 10 years. that is a big new tax and she is pushing it. foreign policy, on the day juan guide dough returned to venezuela, she refused to denounce nicolas maduro the socialist dictator who is shooting his own people in the street. it's a complex issue she said. u.s. intervention? i oppose it, she said. how about the anti-semitism of representative ilhan omar? last night aoc weighed in, in support of representative omar. house democrats vote tomorrow on a measure condemning anti-semitism. the party is split. campaign finance, aoc's chief of staff is accused of shifting
10:04 am
$880,000 worth of donations to private companies that he controlled. doesn't seem right. one last one. her mother, bianca, bianca alexandria ocasio-cortez is a tax refugee. she lives in florida, says, quote i was paying 10,000 a year in real estate taxes up north. i'm paying 600 a year in florida. it is stress-free down here. well, she fled the high taxes which her daughter wants to raise some more. all of the above emerged just today. foreign policy, tax policy, anti-semitism, tax policy, tax refugee, aoc is in the middle of it all. why does she get much attention? democrats and media want to harness the glamour of the new house member. they wanted to make her a star and made her a star. unfortunately for democrats her celebrity focused attention on her socialist ideas. she dragged them to the left, they are stung with policies that are economic nonsense.
10:05 am
democrats may come to regret the power, influence and reef they have ceded to alexandria ocasio-cortez. it is the second hour of "varney & company". so let's bring back in scott shellady. what do you make -- i know what your reaction is, what do you make of the plan to tax financial transactions? >> i love how people want to tax financial transactions. that is business they know nothing about especially aoc. i don't have any ideas of taxing businesses i know nothing b they want to get rid of nefarious speculators. stuart, speculators have a function. when we are too much oil, they sell oil, it goes down to the level producers go off-line. they drive prices up when we need more producers to come back online. they have an economic function. they don't understand this will be a tax on their retirement this will be tax on a lot of different things that take place in the financial day.
10:06 am
i almost can't talk about it because she is so white hot right now, these democrats are flying around her like gnats to a flame. she will burn out. just when. they will hover waiting for her to burn out and then they will be against her. it is all going to end. i don't know when. she will be too white hot for too long. stuart: fascinating, scott, with me, tim phillips, americans for prosperity for president. >> they're a bad idea, tax cuts, tax reform, president trump signed into law last year. they're making a huge difference. the idea of undercutting growth we're seeing economically in part because of those tax cuts with more tax increases, it doesn't make any sense. stuart: okay. scott, shellady thank you very much indeed. i think you moved the market. the dow is now up. well-done, young man.
10:07 am
>> there you go. stuart: you will not be taxed on the transaction you just conducted with us. >> there you go. stuart: tim, your group, americans for prosperity says you should have congressional approval before you raise tariffs. that has been your hine for a long time. >> right. stuart: you opposed the tariffs that president trump has imposed. >> across the board. stuart: across the board. you don't like them. i put it to you, without tariffs the president has no leverage with china at all t was only tool in his box that could be used to get china to the table. >> it is leverage on the backs of american soybean farmers, wheat farmers, pork produce is. it is leverage on the backs of american consumers who will see and are seeing higher prices when they go into walmart or a target. it is high price for leverage. we noticed economic growth wasn't quite what we were hoping for. it is good but we were hoping to blow past 3%. i do think, and we look at analysis of these tariffs and they have absolutely played a
10:08 am
role in lowering economic growth. there is no way around that. they are a tax on americans, that is what tariffs are. stuart: how else, if you were the president, you're trying to get a new deal with china, how do you get them to the table to agree anything if you have no tools to your box to get them to the table? >> the trans-pacific partnership was carefully negotiated in asia. china was a party to that we should look at agreements like that. we had an agreement. it wasn't perfect. we talked about some of the problems with tpp. stuart: they were breaking it. >> it wasn't even in place yet. trans-pacific partnership wasn't in place yet. stuart: are you trans-pacific partnership guy you? want multilateral trade deal? >> nafta has been good for this country that was a multilateral trade deals. multilateral traded deals are a good thing. trade raises prosperity for this country. no way around it. stuart, when you look at government picking winners and losers which is cronyism tariffs
10:09 am
do that. there are still at that tariffs right now. stuart: not good news. got it. >> i read today, ford motor company lost $1.1 billion in higher steel prices that impacts the profit sharing of line workers on those factory floors. that is not fair. it is not right, but that is what tariffs do. they pick winners and losers, and lower prosperity for everyone. stuart: i do take your point, tim. i'm not just going to flat-out dismiss it at all. i'm simply going to say, you're faced with xi xinping. he is breaking all the rules, i mean all the rules. they're stealing your stuff, forcing transfer of technology. what do you have in your tool box to say knock it off, stop isn't how do you stop him doing that? >> intellectual property theft is terrible and american companies to in eyes wide open there, but to conflate the intellectual property stealing with china and to mix it in with trade deals and tariffs is not the way to do it. keep them separate. let's negotiate separate.
10:10 am
conflating two doesn't help us. i'm telling you it is leverage on the back of american farmers, pork producers. think about that, that is not fair to the rest of the country. stuart: we disagreed for months on this, i suspect we'll disagree forever, give my best wishes to your sown. >> always. he loves you. i'm getting a little jealous. i want him to love me a little bit, the old dad. stuart: tim phillips. you can come back if you're not careful. thank you very much indeed. check the big board. we previously picked to the positive side on that pretty good economic news, top of the hour. get back to minus 16, a minor loss. check that. check kohl's and target doing very well. susan: up 5% for the whole year. best in 10 years. stuart: the stock is up 5% on target. kohl's somewhat similar story. nice profits, good sales, the stock is up 5%.
10:11 am
ashley: retailers. stuart: just a couple retailers. l brands share up after investor barrington, i don't know who that is. susan: activist fund. stuart: all right. what are they doing? susan: want to spin off victoria's secret. stuart: help from my friends. china charging two canadians with espionage. it is about huawei and getting china out of our 5g networks and computers. what a story. we're on it. >> >> you heard my editorial on aoc, unbelievable power and reach these days, i think it will eventually come back to bite the democrats. i will see if brian kilmeade agrees on that. top gun, reknowned navy pilot program founded 50 years ago, went on to inspire the movie, we'll have the captain who created it. what a story. he will be on set with me. you're watching the second hour of "varney & company." ♪
10:12 am
10:13 am
10:14 am
10:15 am
stuart: we're down 22 on the big board, that's it. just under 25,800. how about the big tech names? mixed bag today. apple is down a bit at 174. amazon, facebook, alphabet are up a bit, not much. microsoft is back to $111 a share. now this may be thetock move of the day, tesla. for a start barclays has cut its
10:16 am
price target. they think it will go down to 192 but much more importantly i think, china, their customs offices have suggest spended clearance of the model 3 vehicle imports. down it goes. $13 lower. that is 4%. 272 on tesla as we speak. what is the next one? there you go. salesforce.com. i don't know what the story is there. i think they gave a downbeat outlook. the stock is down 2 bucks. now scroll up. those two canadians detained in china have now been accused of espionage. james carafano with us, heritage foundation kind of guy. all right, james, huawei's 5g is that at the root of this thing here? we don't want their 5g dominating? we don't want their technology in our computers? is that what this is all about? >> yes. because largely it is seen that huawei is connected with the
10:17 am
chinese government which essentially means it's a tool of the military and intelligence apparatus and it brings with it just incredible security risks that no country can responsibly take on. i think the canadians have won't up to this. i don't think the chinese have done themselves any favor. i think it will harden the canadian position. british said we done assessment, we think we can mitigate the risks. we heard germans, come out and we talked to the chinese they promise they will keep the military guys out of this. i don't think either one of those are sustainable positions. i think we reached an inflection point and i think the risk assessments on huawei i just flipped from the last five years and nobody is going to go forward with a major architecture investment, not believe if they have done that that they haven't compromised themselves to the chinese. stuart: is this a global battle for control of 5g, which i think is the next big thing? >> well, i don't think it is, well i think it is going to
10:18 am
contribute to that, but in the end, likely we will see new competitors, kind of stand up and compete with way way -- huawei. australia, new zealand, uk, united states, canada we seamlessly share intelligence and the united states came out, dude, if you have a 5g backbone that is built on huawei we cannot share intelligence hike we used to. that is incredibly devastating blow to the security of those countries. so, yeah, this notion of global network, built on the back of huawei, that is just not sustainable. stuart: is there a separation between the china trade talks and the huawei story? is there total separation or are they all rolled into one? >> yeah i think it is. if there is one defining feature of trumpian statecraft and foreign policy it is the non-use
10:19 am
of linkage. that each of these things runs on its own lane. economic, you know, negotiations are one thing and security negotiations are something else. we had a case of that with india, for example, the u.s.-india relationship is growing so close together. we are just so entwined in some ways but the u.s. really just came out with a ruling against them on gsp. that is the way that trump does business. stuart: okay. the battle for 5g. james carafano, thank you very much for joining us, sir. i always like it the way you reduce this stuff to understandable level for someone like me. great job. >> i'm a simple guy. stuart: thank you, james. we appreciate it. now this, this is a huge medical development. a second person cured of aids. i will talk to doc siegel about this. is this promising treatment for other people with aids? we'll find out. check the big board. we're down 50 points again.
10:20 am
we're back down to 25,764. we'll be right back. ♪ (upbeat music) - [male narrator] i've spoken with dozens of people 50 and over who like me are actual customers of the aarp auto and home insurance program from the hartford, and they love the savings they got with the hartford. - when i first called the hartford, they couldn't have done anything better. they said "were we able to save you some money", i said absolutely and he goes, "i hear that quite often." - [male narrator] it's true, four out of five aarp members who switch to the hartford from companies like allstate, state farm and geico got a lower rate with the hartford. - [female narrator] you could save hundreds when you switch. to get your free 'no obligation' quote, call the hartford at... the number on your screen
10:21 am
or go to... the website on your screen. - you know when i'm choosing an insurance company, it's comforting to know that the hartford has been delivering amazing value and service for their customers for over 200 years. - the hartford really took care of me. after the repairs were done, they even came and picked the loaner car up. i didn't have to do anything. the hartford was with me every step of the way. - [male narrator] you know it's really inspiring to see people really living out their dreams, backed by the confidence of having the hartford by their side. - the thing that impressed me the most about the hartford was the customer service. everybody i've ever talked to, it's like i always get through to someone, and they're always helpful. - for an insurance company to go above and beyond, i would say the hartford has been exceptional from the get go. - so let the caring agents at the hartford help you find the perfect coverage. - [female narrator] join the millions of customers 50 and over who switched to the aarp auto insurance program from the hartford. not an aarp member? the hartford can help you join in minutes.
10:22 am
- when i first switched with them, i told everybody 'cause i couldn't believe the price. then i started telling everybody 'cause i couldn't believe the service. the hartford absolutely has taken good care of us. - [female narrator] to get your free 'no obligation' quote, and see how much you could save, call the hartford at... the number on your screen. that's the number on your screen. or go to the website on your screen. i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need and still save hundreds of dollars. do you guys sell, other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. get $250 back when you pre-order a new samsung galaxy. click, call, or visit a store today. who we are as people and making everybody feel welcome.
10:23 am
ordering custom ink t-shirts has been a really smart decision for our business. - [narrator] custom ink has hundreds of products and free shipping. upload your logo or start your design today at customink.com. stuart: before we check the other markets look at price of gold. that is retreat from. how about oil, we're in the mid $50 per barrel range for a long time. we're at 56.76 right now. here is an intriguing story. google giving raising after finding out it was underpaying men. ash? ashley: big problem in many industries. that is just, you'll find out in a minute what susan thinks of
10:24 am
that. susan: it's coming. >> it's coming. they did an audit, google, to look what positions who is being paid what. they did find men were being underpaid in a number of positions. however, hang on, in other cases women were being underpaid. what they will do, pay out nearly $10 million in what they call pay adjustments to over 10600 employe and apologize for pay disparity. stuart: some men will get more and some women will get more. ashley: that is exactly right. susan: that headline bothers me and should bother a lot of women as well because if you look at makeup of google employees, only 30% are women. only 30%. make that equal before we talk about pay income inequality, clearly on average, women on average make 75 cents to men on every u.s. dollar. will take 202 years according to world economic forum for gender payee quality. ashley: you are saying hiring only e more women, only 30%
10:25 am
women? >> absolutely f they deserve to be paid more should be paid more period. stuart: suppose they can't find women qualified for jobs on offer? >> can they find minute qualified for jobs on offer? stuart: yes, apparently can. susan: i don't know exact lay that is true. stuart: should they hire based on gender? susan: based on talent. stuart: right. susan: intelligence. stuart: right. susan: which will be the case of future since women -- stuart: should not hire a woman because she is woman. just because she is woman. susan: when you say men are underpaid versus women -- ashley: within some position in the the company. south sues the headline is misleading. some positions i would say women are underpaid as well. why don't we have a headline on that? it is not news apparently these days. stuart: are you upset about this, susan? you're all right, kid. did i just say kid?
10:26 am
sorry, ageism. shocking. you're all right. susan: thank you. stuart: leave it at that. president trump says he will sign an order for free speech on college campuses. here is the question, who exactly determine what is free speech is? free speech for everybody or just certain people? who decides? we'll be back. ♪ ♪ hoo!
10:27 am
- did you know, the exact same hotel room can have many different prices? it all depends on where you look. - wait, you paid how much? - oh, dear! - well, this is awkward. that's why tripadvisor checks over 200 booking sites (cash register ringing) to find you a great price, and the hotel you want, so you don't end up overpaying for your room. no offense. find the right hotel room for the right price. ♪ hoo! read reviews, check hotel prices, book things to do. tripadvisor.
10:28 am
10:29 am
♪ holt me, hold me, love me. ♪ stuart: this is very good song, very clever. ashley: eight days a week. stuart: susan knows it. your generation knows the beatles? susan: yes. stuart: we're impressed.
10:30 am
susan: age it. stuart: they are all men, we never forget that. look at this,down 60 point on the dow industrials. that is one quarter of 1%. that puts us back at 25,750. big tech, mixed bag. apple down a buck, at 174. amazon, facebook are up. facebook reached 169 again. i think they were at 170 recently. microsoft down 85 cents, back to 111. okay. our next guest says the economy is getting better. we like guests like that. brian nick is with us, he is nuveen investment strategist, a hotshot on wall street despite his youthful look. >> maybe because of it. stuart: could be. you think the economy is getting better in february. i thought the first quarter was supposed to be miserable? >> may still be miserable from a gdp perspective but seems clear december and january were probably the bottom at least for the time-being. we're seeing higher frequent data from consumer confidence, to service sector output, all
10:31 am
that is getting better in the month of february, not just in the united states. we saw signs of a small turn around in china and eurozone and uk. stuart: your view of the economy is, we did this in the third quarter of last year, we did in the fourth quarter of last year. we're doing this in the first quarter of this year. >> second quarter should be better. stuart: okay. we had a prediction this morning from an economist. you're a market guy. he said it will be 3% growth in the second quarter of the year, a real bounce back. do you see that. >> if you get a sub1% growth number in the first quarter, that can boost growth a bit in the second quarter, especially getting back some lost consumption that starts in january. that starts to come back in april, may and june. also delayed tax refunds. people could spend the money april and may. normally spend it in february and march. stuart: are we getting a market bounce back because of the economy bounce back?
10:32 am
>> the markets were leading this they were telling you everything was fine in january. really the economic data taken a bit longer, the hard economic data, how much we're spending and out put. that will be even longer delay. we won't know that until april, may june. market, highest indicators health of the economy green light. stuart: green light for the market to go up some more? or the gain we've had? >> i think we need to see a couple earnings season come in. what are corporate profits going to do this year as wethey are not beasted by tax cuts last year. we need single-digit percentage growth. that should make the market griped a bit higher. stuart: should i sell my microsoft. not making investigations into individual stocks. >> we like tech this year. stuart: should i sell my alibaba? >> alibaba is one of our favorite calls. stuart: when you say a call, china related stocks? >> yes. stuart: you think they will do well? >> they have done very well, up almost 30% year-to-date which is
10:33 am
obviously pretty strong out of the gate. get melting away of trade concerns. china stimulus to the economy, trying to do for couple quarters. stuart: announced it last night, tax cuts, slashing fees, bond issuance. that is stimulus big time. >> they're expecting slower growth, targeting 6, to 6 1/2% growth. strong for other economies but not as strong for china. they will continue to put their foot on the gas. stuart: a lot of our viewers have 401(k)s, they want to put their 401(k) money. they have a stocks and bonds, we know. that is your advice generally speaking keep a chunk of it in stocks? >> absolutely. especially for people longer to go retirement. even if you're approaching retirement or in retirement, we advocate, multiasset funds with, we have a large allocation for investors. if you have income need, whether you prefer stocks or bonds for sure. if you expect to live, 80, 90,
10:34 am
100. you will need growth asset that means stocks for investors well into retirement. stuart: we are living longer. perhaps we have to adjust our life expectancy table. >> we do that you will at time. we're constantly adjusting that based on what actuaries tell us. stuart: i'm 70. what is my life expect tan sy? >> you have to ask my wife. she is actuary. stuart: you're wife is an actuary? i want her on the show to tell me how long i will live. we appreciate it. president trump tweeting about a second manicured of hiv. this is the president's quote. hiv cured in second patient, doctor's report, "new york times." so great news for so many. tremendous progress being made. dr. marc siegel with us, fox news medical correspondent there was a man in london treated with stem cell transplants i believe and fully kurd. only the second person ever to be fully kurd. have i got that right? >> this is absolutely right.
10:35 am
this patient known as the london patient. he had an issue where he had lymphoma he need ad stem cell transplant where he replaced immune cells. he luckily got them from a donor who has a gene resistant to hiv. looks like he will no longer need the anti-viral therapy we traditionally use to attack the hiv virus to get it out of the bloodstream. we turned hiv with chronic disease with anti-viral drugs but they have side effects. this stem cell is creating an immune system that is immune to hiv. stuart: is it possible to use the same stem cell containing a gene resistant to aids, can you market that stuff, can you recreate it, can you put it with other people? can you do that? >> great thinking as usual. you will live to 90 like me or 95. you have to go to liverpool to
10:36 am
look into the beatles. stuart: go on. >> we can do it in the laboratory. we don't need to find the rare donors. you know why? we have a genetic editor, we talked about how it is misused in embryos. we can use it in grownup people and can engineer cells to be resistant, this exact gene, we can manufacture the mutation ourselves using the technology of the future. we're going to be able to make people resistant to hiv using the genetic editor known as crisper. it is fantastic. we have to do it very carefully ethically. stuart: within a given period of time, couple of years you have the process down to a point where you really can have a cure for aids. >> you better believe it. stuart: you can do that? >> better believe that. completely believe that. it is going to happen. word of caution what are the downstream effects? when you manipulate a gene what happens to future generations. you have to be careful. stuart: we don't know yet. >> we don't know yet. you have to be very careful. stuart: this person was totally
10:37 am
kurd 10 years ago, the berlin patient, i think he was called, he was completely kurd. stem cell transplants that did it. >> happened to have the mutation stuart: happened to have the mutation. >> we can make the mutation with biotechnology. stuart: this is remarkable news. forgive me, i will go to a different subject, a sad subject. i'm sure you know this the actor luke perry died yesterday. he was hospitalized yesterday. he had a stroke. he was only 52. this is highly unusual, isn't it? >> it is not as unusual as you think. 1/3 of all strokes occurred under the age of 65. 52 is very young. he hooked very vigorous, he wasn't overweight. weight is big issue. we're talking about weight on the show. saying today, maybe there was some report the he was a smoker. i don't think he was a big smoker. that is another risk factor. weight, smoking, diabetes and
10:38 am
cholesterol. we do not know if he had those. family history, his father had heart disease. there is crossover there. tell you why. you could be higher risk of blood clots in terms of risk of heart and stroke. this isn't information isn't going to come out what his exact risks was. risk factors for stroke are huge. i will go on the show, everybody should get checked. when he had colon polyps, that were cancerous in 2016, he told everybody to get colonoscopy. he want everybody to being checked risk factors for stroke? do you have diabetes? , high blood pressure? are you a overweight? do you have a family history? stuart: fascinating. thank you very much for weighing in on two extremely important subject. >> a great actor. stuart: he was. >> beverly hills 90210 terrific. the james dean of our time. stuart: appreciate it. check the markets. we've been like this most of the morning. down a few points. less than a quarter of 1%.
10:39 am
25,700 is where we are. we have extraordinary stories on the program today. next hour i will talk to a veteran who rowed across the atlantic ocean by himself. raised money for veterans. by the way on the boat, 63 days. he will tell us what happened on the open water. 63 days. 30 years ago, "top gun," it was based on the real life "top gun" program. it was started 50 years ago by a captain. that man is it with me today. i want to know if we really are the best in the skies. ♪ this is decision tech. it's screening technology that helps you find a stock based on what's trending or an investing goal.
10:40 am
it's real-time insights and information, in your own customized view of the market. it's smarter trading technology, for smarter trading decisions. and it's only from fidelity. open an account with no minimums today. and it's only from fidelity. (butcher) we both know you're not just looking for pork chops. you're searching for something more... ...red-blooded. right this way. you thirst for adrenaline, you hunger for raw power. well, you've come to the right place. the road is yours, dig in. i'm begging you... take gas-x.ed beneath the duvet your tossing and turning isn't restlessness, it's gas! gas-x relieves pressure, bloating and discomfort...
10:41 am
fast! so we can all sleep easier tonight. ♪ ashley: texas attorney general ken paxton says opioid maker perdue pharma may file for bankruptcy but doesn't mean lawsuits against the company will be wiped out. roll tape. >> you know, bankruptcies are complicated. there are different types of bankruptcies. we know this company made billions of dollars. they paid out billions of dollars to their owners. it is a complicated process. we think there are assets there. we think there is money paid out to the owners we potentially could go back after. i'm a free market guy. want companies to have
10:42 am
opportunities they can, less regulation is better. when you lie to consumers, lie to doctors, that has a harmful effect. that's a problem. ♪
10:43 am
10:44 am
>> i feel the need, for speed. stuart: you got it right there. iconic scene from the movie "top gun." joining us now the author of the book that is on your screen, "top gun, an american story" he created the navy's "top gun" program and advised on the movie. he is here. captain dan pedder son. >> i'm honored. stuart: it is our honor to have you on the show. 50th anniversary of your program just passed. so the "top gun" program is 50 years old. you started it. what it is it designed to do? be the best in the world? >> we were five years into the war. i was on a aircraft carrier out there at enterprise, five years in the war, kill ratio was two to one. stuart: the kill ratio, two to one? >> we get two migs for everyone they get. stuart: okay. we shoot down two everyone they shoot down of ours. you didn't like that.
10:45 am
>> no the truth of the matter, second world war and korea, the americans never got below 12 to 1. that is historically how good five years in which were, most of the reasons political but restricted by airplane design. rules of engagement, you hear the term still on the news every day. and so they put some restrictions on us. so -- stuart: went to a 2 to one kill ratio. >> no. stuart: you didn't like that. it wasn't good enough. you started "top gun." what happened? i hate to say it like this, did the kill ratio improve? >> that is the best bottom line of the whole thing. it went from the day we started today, in 1969, to the end of the vietnam war, when president nixon turned it off, we went to
10:46 am
24 to 1. stuart: whoa. >> yeah. stuart: that was because of the "top gun" or in part? >> 60% of that 24 to one were all young kid, kids, wrong word, naval aviators flying off aircraft carriers that got 60% of the 24. stuart: that is extraordinary. >> 24 to 1. you don't have to be old to be good. [laughter]. stuart: okay. can you fast forward to today? you tell me, are our flyers, our guys, are they the best in the world? >> still. i've been close with a couple of israelis. there is a chapter or two in there about israelis when i flew with them, but there were a couple of those guys have always been at the top but my original eight pilots and back seaters of the nine original guys, youngest
10:47 am
was 22 years old, i was oldest at 32. ashley: wow. >> and the guidance i got, navy seldom does anything important that isn't run by an admiral, they turned us loose, youngsters, nine of us. and the only guidance i got was, don't break any airplanes and don't kill anybody. and we didn't. and the students went out and made a name. few years later middle 80s along comes "top gun" the movie, and that just elevated our recruiting to the ceiling. stuart: really did. you can't beat that. but, look, here is a problem, boeing has just announced that they have got a pilotless plane, fighter plane, jam-packed full of computers and censors all of rest of it. that, pilots are decreasingly a
10:48 am
thing of the past? >> no, don't bet on it. there is, that's industry speaking. they're probably are good missions for those drones, drone, that nyes with a guidance from somebody remotely, okay. he may be in las vegas, nevada as it is today. and when you go into combat and when you read some of the combat stories in here in the book, you go into combat, i don't want somebody 8,000 miles away having their finger on the trigger, and i can't talk with them. the only thing that wins in aerial combat anywhere you want to send us is the guys themselves. they make the best of what they have in their planes, even today, the expensive ones, that is another conversation you and i could have but, but i don't
10:49 am
want somebody remotely -- they can send drones. they can send drones in to do reconnaissance. go in by themselves, i don't want to go in there first time if i don't have to. stuart: great book. i have not read it. but i'm going to read it. >> please do. stuart: dan pedersen, sir, "top gun, american story." as we go out, i would be honored if you autograph for that me, captain. >> in fact i have -- stuart: fine autograph right there. have you ever seen donald trump's autograph? it is really spectacular. that is pretty good too. >> you listen, see these bumps, i have had two brain surgeries after i got out of the flying business. i had, very poor use of my hands. i'm not nervous. that is just what's left. you know what caused that shakes? stuart: tell me. >> ucla cured me.
10:50 am
my life is beautiful now but what caused that shakes i tell my wife was, night carrier landings. [laughter]. stuart: i don't know anything about that but i can imagine. >> don't let anybody take you on one. stuart: captain, thank you so much, sir. shake that hand. we will be right back. there will be more "varney" after this. and that is a promise.
10:51 am
10:52 am
10:53 am
10:54 am
stuart: chipotle playing up their vegan and vegetarian offering just in time for lunch which begins tomorrow. the stock $617 per share. papa john's saddling is going to resign from the board and he will be replaced by an independent director of 44, up 2.5%. hold on planet fitness announcing a development partnership. planet fitness will open up to 10 stores next to select cole stores around the country. both stocks, especially colds. nice earnings report today too. reported metatarsal model three sales are being blocked in the country of go without an important update on that. reporter: the stock down as much
10:55 am
as 5%. now closer to 3% after certainly recommend are saying the customs authority have accepted to remedy the issue with their car shipment. china was suspending customs clearances in the years of model three knots because of various irregularities with 1500 imported model three cards but only recently started being sold in china. it would make them legal on the chinese markets but it looks like there might be some sort of remedy the tesla has to come up with. sure just about to remedy. the stock has come back a bit. not that much still at 270. that is better than 5%. come back a little bit. that's a break in the sock. now 274. this, please. we spent a lot of time in the show telling you everything that's wrong with socialism.
10:56 am
it kills growth from iran's economy come et cetera, et cetera. maybe you haven't spent enough time highlighting the merits of capitalism. so that's what i'm going to do. my take about a top of the next hour. here we go. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
10:57 am
10:58 am
10:59 am
11:00 am
stuart: what has capitalism done for us lately? that's a pretty good question i would say at a time and socialism is supposed to transform our society to the promised land. it's worth asking. the old-fashioned pursuit of profit has turned out. rather well actually. in fact, capitalism is an outstanding success on almost every level. it is capitalism is given a solid growth, full employment and a rapidly rising wages, low inflation and a much bigger 401(k), record-breaking stock market, in short prosperity. it is capitalism that creates wealth. but there's so much more. how about energy independence. we don't need oil from countries that hate us and were producing natural gas that heat our homes cheaply and that goss has allowed us to cut our carbon emissions more than socialists in europe. capitalism did not. socialism did not.
11:01 am
how about america's technological brilliance. apple, amazon, google, facebook and others are globally dominant. they have reshaped the world. they are capitalist enterprises. they make profit. they allocate capital to expand in the best and whole new areas, carrying society forward. what do you think you socialists made computer would look like? really. and then there is morality. capitalism is a moral system because it offers individual freedom. you choose what you want. you choose your money and where you want it to go. you can be yourself. socialism is groupthink. step outside the group straitjacket and freedom ends. this program is probably capitalist and we're very glad that you're watching. the third hour of "varney & company" is about to begin. ♪
11:02 am
calm down. we love a good capitalist success story on this program later this hour will be talking to a self-made millionaire on your screen. he wrote the book on capitalism. he is 29 years old. that's a success. set the big board. we are down 62 points. remember of a somewhat puzzling thoughts yesterday. we were down 200 or one day. market watcher brian pane the president of paying capital management is with us. before we go any further, can you explain what on earth happened yesterday? >> let's face it we had the best our first month of the year since 1991. that's a tremendous move in the market upward he take a break somewhere. stuart: wasn't much of a break. that's not a huge break now is it. >> relatively speaking exactly right. stuart: alexandria ocasio-cortez
11:03 am
wrote the democrat party. she's been ruling the show today by the way. she's in favor and cosponsored a new wall street tax. tax on all wall street transactions. when you make about? >> is a problem because you need liquidity in the market so you need speculation in the market to keep the money moving. if you stop better deter that it could be a real problem for liquidity which could create more volatility. stuart: and jumping in because you mention liquidity. i think this tax is aimed and has a big impact especially on the faster income in the rapidfire trading. analog or computer trading. it would replace a small tax on every single trade which would make it prohibitive to do this superfast constant trading. >> that's exactly right. that's an important component to the market which is extremely important. you don't want to see those types of things go away and make that prohibitive.
11:04 am
stuart: would you have for fact there is such our contributing to the economy looking up. go through all of them. focus on millennial year at you see millennial star big help and factor. spell it out. >> when you think about the economy long-term the lowest amount of americans between the age 40 and 49 in the most productive year for american economic terms are between age 40 and 49. millennial circuiting to be in their late 30s now which is hard to believe. but now over the next 20 years that's going to rise by 20% of millennial start to move into top 40 to 49 bridge which is their highest productivity here is another the largest generation right now in the u.s. the huge engine for economic growth. out to the year 2039, you think about that, that's a tremendous number. ashley: we are told millennial storm by houses. as they get older their attitudes change when they come to the start rocket investing.
11:05 am
how do we know that they're going to be contributing and not fashion? >> the hard questions and ashley. it's a good question. the thing about millennial as they relate. they are starting to farm households later in life and as it starts to happen, we give the formation stage a new start to spend a lot of money. all the things that come with high in the home. start to raise kids. as a consumer of the trend is already starting to happen. if you think about it depending on the statistic you have like 80 million people that are going to be starting a trend. it's almost like when the baby boomer set in 1980. stuart: with the bolts. it will go through society. in a couple years, that old she'll be maximum economic production. but she got away for that. >> so you want to be at the
11:06 am
beginning of the trend, not the end of the trend. when we see it too i talked about this last time we had millennial to our office every week now with hundreds of thousands of dollars in cash they been sitting on because maybe they were living at home. at the same time, they have a lot of money ready to invest in at some point it's probably going to start finding its way into the market. people walking into your shop with a lot of money. >> in a bank account. the irs has a problem with that. >> we have a lot of clients that are entrepreneurs. a lot of them starting to move up the corporate ranks in different companies. let's face it in her 30s now you've been working for at least a decade. you're starting to move up. stuart: you know, ryan, you're all right.
11:07 am
not quite millennial. thank you,. we've got a story there. the two factor authentication. that is when they tax you a special code to verify. it is supposed to keep your account more secure. however, facebook might've been making those numbers public. it is not affect in the stock of 169. the target price for tesla will be down to 192. after that, china customs suspend model three and then they resolve the dispute. it has come back down 4%. 273 on tesla. president trump announced in his cpac address a new executive
11:08 am
order and that protect in free speech on college campuses. this hour we are discussing who exactly determines what free speech is. that's a very important question. also talking about the success of capitalism with a 29-year-old self-made millionaire. he's going to take on the socialists. i hope he does. how's he going to do it? "forbes" releasing its annual billionaires list. one new member making history. where i'm not dory. we'll tell you all about it. the third hour of "varney & company." we saved the best for last always. ♪
11:09 am
as the one who is always trapped beneath the duvet i'm begging you... take gas-x. your tossing and turning isn't restlessness, it's gas! gas-x relieves pressure, bloating and discomfort... fast! so we can all sleep easier tonight.
11:10 am
11:11 am
11:12 am
train to one thing this program is all about and that's making money. "forbes" to lease their richest people in the world list. number one of course jeff bezos followed by bill gates, warren buffett. he's the ceo of luxury goods conglomerate and carl slim, ceo of telematics. they've all got a lot of money. kylie jenner is the world's youngest billionaire. 21 years old. she's made a fortune off her line of cosmetics. she's part of the cardassian family. 21 years old. mark zuckerberg dropped three places this year while watching
11:13 am
it $9 million. enough of that. we talked to yesterday about congressman jerry nadler requested more documents from the white house to investigate the president. i want to bring in michael watts, republican from florida. i think were going to be seen two more years of endless investigations. what impact do you think it will have on the present political standing? >> what you know, i was in the bush administration. i actually worked for vice president cheney in 2006 when pelosi first came in and started this avalanche of investigations we were just on the receiving end of this constant come and document requests come you name it. they ground a lot of the work we did to a halt but also ground the congress to a halt in at the end of the day of the lucio missed it in the majority for four years. people are tired of it. they want to see legislation, not const in investigation and they want to see the americans
11:14 am
nations business move forward. the president, even though this is coming out of is still moving forward. yesterday signed an executive order that helps veterans moving out of the service and in two help them with the licensing. he signed another executive order to help with veteran suicide. so we're going to move forward despite this ridiculousness. but it is going to be a long two years. true to the investigation became more personal. even spread into the family. what do you think? >> it is clear. this is about personality. this is not necessarily about oversight might democrats are trying to claim. we only get one president at a time. he's the commander-in-chief. his success is ours says in
11:15 am
wishing him to fail is pushing america to fail. at the end of the day when he succeeds, we all succeed. everyone have policy differences fine were seen that with the great new deal about the march towards socialism. this is personal and this is about personality and his entire family. >> speaker pelosi has concluded it would be a bad thing to impeach this president because it wouldn't work. so you go for endless investigations which attempt to undermine him. undermine him and his president v. i think that's what they're trying to do. are you with me on this? >> i agree. i think that's her strategy of this is about 2020 and having a steady steady drip and drab about news. not necessarily impeachment, but that can also blowback on them. people are tired of the same old, same old gridlock. they want to address
11:16 am
infrastructure, water, health care. they want to see us come together and figure common ground and move the country forward and let's have a debate on policy. that is why you're seeing -- you cite quarter of the house of representatives changeover because of frustration with gridlock here. that's exactly what these investigations are going to do. it's going to cost more gridlock. of politics at its worst. sure into a really was socialism on the rise in like her to be a central facet of the 2020 campaign, that is what we should be discussing. what about socialism? what about taxes? what about the great new deal? that's what the house and senate should be discussing, isn't it? >> us tell you what, we are going to put socialism on trial and we are going to convict it. i did not than 23 years now in the united states army defending a country that is then going to go after individual liberty and individual responsibility and how the government take over
11:17 am
these programs. we've seen it all over the world. we're seeing that right now in venezuela and were seen it fail. at the end of the day this is a government takeover of huge parts of our life in god were going to have this debate. i think were talking about the speaker strategy. she is cringing at the lapse march towards socialism. it's not good for the party. not good for the country. stuart: michael watts, don't be a stranger to this program. batman on your screen -- batman on the screen. areas. batman spent two months for when 3000 miles across the atlantic ocean on a boat and he was alone. he overcame the mechanical come equipment failures, not only did he survive to tell a story, he came in second in news on this program today. check it out come here looking at the most expensive hotel suite in the world in vegas.
11:18 am
9000 square feet, two stories. we'll tell you how much a two night stay would cost you. but first, the world's most expensive new car has just been sold to an anonymous buyer. we'll tell you how much they paid for it in a moment here in
11:19 am
11:20 am
11:21 am
comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast.
11:22 am
stuart: let's do an automobile block. an unnamed buyer has just commissioned the world's most expensive car come a custom built bugatti at $18.9 billion. at the geneva motor show. literally a black car. only making one of these so it's got 9 million lying around. take a look at the world's fastest elect or cars. night teen hundred horsepower. top speed 218 miles an hour. get this. you're the 60 in 1.6 seconds. you've got a shallow to .6 million. another geneva made the show
11:23 am
revealed. they've announced a new all electric formula race car. it weighs close to 2000 pounds and can go from zero to 60 in 2.7 seconds. it will make its debut later this year. backed by the way is electric car racing. if you're a millionaire biggest highroller watching this program, we've got a place for you. talk about the vegas hotel suite most expensive in the world. $200,000 for a two night stay designed by an english artist. own bar, pool, overlook the strips. and by the way, doesn't pay for these things. he just gambles millions. looks like congresswoman alexandria ocasio-cortez's mother is trying to escape high
11:24 am
taxes. she left new york because of high taxes. we'll tell you all about it in a moment. we'll be joined by god man, nathan locher, 29 are sold in the self-made millionaire dripping the american dream. i'm certainly going to ask him. will be back. each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs.
11:25 am
they all lead here. cme group - how the world advances. tthis is the invitation to lexus sales event. lease the 2019 is 300 for $329 a month for 36 months. now thru march 31st. experience amazing at your lexus dealer.
11:26 am
11:27 am
if ywhen you brush or floss, you don't have to choose between healthy gums and strong teeth. complete protection from parodontax has 8 designed benefits for healthy gums and strong teeth. complete protection from parodontax.
11:28 am
stuart: i think we should alert the chompers on this one because we've turned to the upside. 85,827. don't blink. look at the big retailers. target and kohl's soaring after closing words he forecast a 2019. target sales up in more people flock to polls perhaps because of their partnership with amazon to let customers returned goods they bought on amazon that site that pulls locations. that helps. both stocks up 6% upper close 4% for target. president trump announced a new executive order aimed at protecting free speech of college campuses. our college guy, peter marie
11:29 am
chi. who determines who can speak freely? i asked that question because the college campuses not going to allow a child pornographer, are they? someone is going to say you can't come on. >> if you do something like, this is a disciplinary procedure for that and that's not acceptable in any business. the real problem here is conservative speech or conservative thought and essentially that is policed by the deep stay. there's a variety of ways to do that. for example if i say something really innocent that's interpreted as ms. jeni, females suited -- mill students at well would give me a lousy teaching evaluation and i won't get a raise. things of that nature. if i say something about finance professions enabling wall street
11:30 am
financiers or something like that, while the finance chairman for the shoulder to me in the hall one day the news about 60 when weighs 220 pounds. true to that happen to you? >> will give you an idea how bad it is. one day i came in a mysterious of the furniture from my office was gone. a department chairman secretary administrative assistant in the department chairman just beyond her right next to my office and i said what happened? we don't know. we didn't even know was happening. i went in there that was my computer of the floor. i was there. stuff like that. i said courses mysteriously disappear for the calendar and halfway through registration discover ipad no students. stuart: but back to the original question. >> what i'm getting not is that there is no prohibition on concern except the system punishes you relentlessly.
11:31 am
tree into what would an executive order look like that guarantees freedom of concern to speak on college campuses? >> you can't do it because of that anymore than we can force conservatives for say a very ultra- right network to book liberals. now, if you have a situation where an administration caved in and canceled the conservative politician, perhaps the president might get away with cutting off funding. but i doubt it will hold up in court. my feeling is this was a nice gesture, but a gesture only. the president tries to cut at the university of maryland funding will taken to court. a good liberal judge who basically throw out the order. >> the point is there are places where they are centered, which you can teach in the classroom is limited and sometimes it's
11:32 am
explicit and sometimes it's implicit. that is the worst kind. retire is a good way to deal with it. stuart: may be. look, thank you for much for sharing your experience. i did not know when to stop level of harassment of people like you. thanks for sharing. come see us, soon. my editorial top of the hour we should be seeing capitalism's praises. i know that our next guest agrees with me. batman on your screen right there, author of the book how to be a capitalist without any capital. 29 years old in the self-made millionaire. you're welcome to be on the show. >> stuart, thank you for having me. stuart: how do you make your money? >> it's a good thing we have the structure. if we don't then we moved the incentive structure everything falls apart.
11:33 am
stuart: what did you make and sell? >> facebook fan pages. they is us and zuckerberg knew what they built their company in the u.s., their economic incentive to do so and got for big companies were built somewhere else not in the u.s. and china and somewhere else. not just china owned. very scary stuff. so we have to have incentive in the state and we have to keep it. stuart: back to square one here. you make fan pages for facebook. >> item of using stuart's fan page. it's a good-looking fan page. stuart: i've got one? >> you need to know this. you have a big following. it can be customized. i don't want to be broken and that so i'm going to start selling now. i started selling the product before adulthood, doctor, delivered it.
11:34 am
stuart: did you sell it to people like me? >> you don't have a thing called important he spoke in page. and i'm going 700 bucks once rock 'n roll. 100 people. >> do i want a refund everybody or can actually get the gumption to build these things? 17 grand as an incentive for a college student to stop doing school stuff and start building. stuart: is actually built facebook fans. capture e-mail leads, get your following come in future videos more views. $939,000 in sales in 2013. i hired my college professor after he dropped out. that's all really good. stuart: i'm not going to ask how many millions you've made although that would be a typical question. a lot. i've made a lot. it's an army of five people at
11:35 am
"forbes" tried to gear out how much was made. we're doing very well. stuart: but he doing with the money? >> walking up to random businesses investing. i walked up to facebook watch a year and a half ago and i had my audience say tell me what businesses i should invest in. i found a lady named ming, an immigrant from thailand. entrepreneur because entrepreneurship and capitalism works preaching or there was an economic upside. over $6000 check on the spot and hope to grow the business. she paid me back 75 cents per meal until i was payback you choose now hired in creating jobs in austin, texas and i got a great return, 18% irr. stuart: you better hope the socialist out when in 2020. >> is very scary. you said what does a computer by socials look like? the answer is called a pillow. stuart: that's a good line come in a thing. >> i two minutes to get that together. i'm 29 and i have a lot of my friends right now graduating.
11:36 am
they spent three hours a day watching netflix. how about you go hustle. there's a difference between being a bartender and owning the bar, risking everything to launch the bar. stuart: you want my job. >> i think we would do well together. you couldn't take the pay cut. nathan, were delighted to have you on the show. come back again because i'm interested in your entrepreneurial ideas. don't be a stranger. >> and for having me on, stuart. stuart: now this. we are hot the exodus from high tax states on this program. congresswoman alexandria ocasio-cortez's mother, she's a tax refugee. she now lives in florida. she says you only pay 600 bucks a year in real estate taxes, a fraction of the 10,000 she spent up north. even aoc's mother --
11:37 am
>> the irony of this story. it tells me that mother cortez hasn't done a good job of teaching her daughter the basics of economics. continued attacks, continued to take away, people are forced to leave. look at the exodus of the high-tech states. california, new york or new jersey, connecticut, all of them. the fact that aoc's mom is a tax refugee in florida is just too good. stuart: hold on the second. nathan is still with me. where you live? >> austin, texas today. we all know why by the way. if the advantage exists, use it. stuart: you've got something going for you, use it. >> by the way, you create more jobs. you pay less in taxes you create more jobs. stuart: a south carolina resident is getting a massive lotto payout. some may claim the $1.5 billion anonymously. >> this very lucky person walk
11:38 am
away with nearly 878 million. biggest single jackpot payout ever in u.s. history. by the way, state of south carolina gets $61 million in a tax cut, so they do well. what is interesting about this story, we don't know who it is. with this convenience store they let someone go ahead of them to get their ticket. a gentle act of kindness. there you go. stuart: amazon opening up a brand-new go store, a cashier at the store. we will tell you where it's going to be in just a moment. google tabled their partnership to create a search engine. it is reportedly in the works again what a story. and yes, where i met. -- we are on it.
11:39 am
♪ a tiger costume, we're finally going on the trip i've been promising. because with expedia, i saved when i added a hotel to our flight. ♪ so even when she outgrows her costume, we'll never outgrow the memory of our adventure together. unlock savings when you add select hotels to your existing trip. only when you book with expedia.
11:40 am
stuart: this is a special business brief come on ladies and gentlemen. the dow jones average of 40 points. 25,858. my business colleague -- why is the market turned around?
11:41 am
>> you know, it's meandering. we're not quite sure what's happening with the u.s.-china trade deal. we have some economic data this morning. markets are waiting to see how this whole thing plays out. we wouldn't get the details of the deal and get it sealed, signed and delivered. yesterday we've had many guest palace, day in a house they're just taking a break. stuart: you don't know the answer to the question why the markets turned around. we'll be back. that understands my business. we've got some work to do... and we need your help. we need your support. let's expect more from technology. let's put smart to work.
11:42 am
♪ ♪
11:43 am
stuart: amazon's opening its 11th cashier less amazon code location this year and same with cisco. encarta got two of these go stores in san francisco. the stores use cameras to track you picking up items than it charges your go account as you leave the store. more on google under fire for apparently payee men less than women in some job positions. that's according to their annual pay equity study. if your member come is still facing a class-action lawsuit for women employees who say they were being underpaid. contradiction there i guess. still on google. this is insidious in my opinion. their plan to build a censored search engine for china reportedly still in the works. steve hilton is with us, the host of the next revolution. i think this is insidious
11:44 am
because this is the way to control and surveilled everybody in china. and didn't the ceo say this program was dead? >> exactly, stuart. you've got it right. these are the people that lecture the rest of us about values and human rights. a brutal authoritarian regime in china by collaborating in ways to make their impression even work. plus, the ceo said to congress that this wasn't happening. michael cohen is going to jail for amongst other things lying to congress and the world now knows. what is going on here. by the way, another story to the pile of outrages involving google. it's also been reported they are still hosting on their platform in saudi arabia and allows men
11:45 am
in saudi arabia to track women, including letting them know when they can't use their passports. it is just disgusting the way they pose as these great progressives and then behave like this in the real world. stuart: i'm glad you're here to sort this out and exposed it because as i said i just find it flat-out insidious. i can't believe they get away with this. big brother in the extreme working for a communist government to survey 1.3 of her one point or billion people. i'm astonished at getting away with this. >> that's why it's so important that your shining a spotlight on it and were talking about it. the only way to do something about it is that kind of public pressure. i'm certainly going to do something on my show this sunday. stuart: i've got something for you which our audience i hope can relate to. a friend of the show, nigel for
11:46 am
roche is planning a brexit march: march to leave. it'll go from the north of england all the way down to london in parliament. you know, in the 1930s there was something called the aero march of unemployed people with hundreds of thousands of them and had a huge impact when they marched to london. do you have any input on this? this is really a change coming seachange of politics in britain. >> you're completely right to be outraged at the way teresa may handle brexit. they haven't offered by referendum in what nigel is arguing this has got to have the result delivered in the current circumstances that means leaving without a deal. that's the only one that honors the vote. the problem is even if it's not successful in highlighting the issue, we are coming up against a deadline now and the brutal
11:47 am
fact is there is no majority in the british parliament for leaving without a deal. frankly the best option right now is teresa mays deal with i completely agree doesn't deliver brexit. however, it's better than all the attorney does because of this it leaves all the future relationship between britain and the e.u. open to debate. that's the most likely outcome and one i think we should be optimistic about. stuart: got it. by the way, nigel farage as a guest on this program tomorrow. thanks for joining us. we'll be watching steve on the next revolution on the fox news channel sundays 9:00 p.m. eastern. good stuff. watch it. thank you, steve. the man you're about to see on your screen spent two months buried 3000 miles across the atlantic solo. he overcame everything mechanical problems from equipment failure, whether, you name it. he has overcome it. he also had some bright moments
11:48 am
and some dull things on his journey. these are all his own videos. up next, tim crockett on his amazing journey and why he did it. we will be back. ♪ this isn't just any moving day.
11:49 am
11:50 am
this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today.
11:51 am
in honor of my dad, who was alzheimer's. i decided to make shirts for the walk with custom ink, and they just came out perfect. - [announcer] check out our huge selection of custom apparel for every occasion. you'll even get free shipping. get started today at customink.com.
11:52 am
stuart: breaking news happening now could london police say they found explosive devices at the big transit hubs. ashley: verse one reported at heathrow, then at waterloo train station after the london city airport. counterterrorism police say they found improvised explosive devices. one is rdb made safe at heathrow. that's the only information we had. we also understand no impact on flight in the trains are still running obviously very concerning. stuart: the president set to sign an executive order. he is creating a high-level task force to offer more comprehensive health to veterans in need. on a related note, were ending today show with raw human strength and endurance. the man on your screen right now
11:53 am
grossed 63 days straight across the atlantic call to raise awareness for suicide epidemic among veterans. look at this picture. that's the man hands. 3000 miles of rolling will do that to you. tim crockett of global inc. congratulations. >> thank you. straight to you on the show before you set out by now you're back. >> again. i made it back. i would say there were several. it wasn't sort of one thing in isolation. it was when things started to stack up on top of each other. equipment failure, a bit of food poisoning. that's kind of one of mental pressure really sort of took its toll. stuart: we attempted to give up? >> never. there were times when i had to
11:54 am
get a grip of myself and say how were we going to get to the other side, how long is it going to take insert every frame my thinking because in the middle of the atlantic, there are very few options to get off and it would've been hard. stuart: i don't know how to do with 63 days on my own. i guess you've got radio contact and a computer. >> very much -- the sponsor gave me one. it was good in terms of race planning, whether from a campaign point of view and hoping they get across efficiently in the satellite phone to speak to my family and others. that was good and bad. a great conversation and when you kind of hang up, you feel a little bit or lonely and
11:55 am
depression can rip you a little bit. around the holidays christmas come to new year's, my birthday. stuart: did you try to row a certain number of miles a day? >> going into the challenge i set myself a 50 day duration in order to do that i have to 60 miles a day. we didn't get the weather. my best guess i did 67 miles are my worst a- two. stuart: the president's going to sign an executive order of veteran suicide. that is why you did this to support suicide. >> said the campaign wanted to raise money to get it kind of clinical health. one in the u.k. have wanted the u.s. here. but nelly minix. that there is a fund raising fatigue i think kind of globally. we wanted to raise awareness in the human capital
11:56 am
stuart: sir, you're all right. take so much for joining us. look out. there is a new game in town. apex legends. got a huge number of players its first month. we'll tell you all about it of course after this. as i always say. ♪
11:57 am
as the one who is always trapped beneath the duvet . .
11:58 am
11:59 am
♪ stuart: it's a video game. it is called "apex legends." it has exploded in popularity. listen to this, 50 million players in the first month. it has a long way to go to catch up to "fortnite" which has more than 200 million players of its battle royale mode since its launch. there you have it. "apex legends" coming on strong. this is story i want to give to you. blockbuster has one store left in the world. ashley: entire world. there were two. one closed down in the suburb of perth. where is it? bend, oregon. stuart: i used to live in perth. this is the blockbuster old
12:00 pm
style? >> there was one on every corner the '80s. now there is one. stuart: wayne huizenga's deal way back when. he got rid of it. time is up. neil cavuto. it is yours. >> david asman. stuart: i hitchhiked 1200 miles. david: you have to write a book. i'm david asman in welcome to cavuto "coast to coast." i'm no for neil cavuto. the dow up 11% year-to-date. all eyes are on china. as officials are lowering china's growth target, announcing a major tax cut amid growing

51 Views

info Stream Only

Uploaded by TV Archive on