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tv   Varney Company  FOX Business  April 8, 2019 9:00am-12:00pm EDT

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you've got washington. it will be a big earnings -- >> about to begin. maria: you say they will be down 2.5%. >> the "journal" had like down 4.2. maria: have great day, everybody. see you again tomorrow. "varney & company" begins right now. ashley, take it away. ashley: i'm ashley webster in today for stuart. here is the big story. kirstjen nielsen out at homeland security amid the ongoing crisis at the border. president trump bringing in a hardline immigration enforcer to run the department and yes, we are all over this story. the democrats continue to push the collusion narrative. congressman schiff says well, he has no regrets. congressman nadler says collusion with russia was in plain sight. big week for your money. stocks starting off lower, boeing is a drag but we get earnings at the end of the week. that's what everyone is talking about on the markets. will that bring the market to new highs? plenty to discuss this monday
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morning. "varney & company" about to begin. ashley: two big names on the border story for this program today. chris kobach reported to be in the running as president trump's border czar. he's here next hour to talk about that. and tom homan, former acting i.c.e. director, is all for the move the president has made at dhs. he will join us in the 11:00 a.m. hour. that's where we begin right now. nielsen out, mcaleenan in. blake burman is at the white house. blake, how did this all go down? that's a question a lot of people are asking. reporter: here's what we know. kirstjen nielsen, the department of homeland security secretary, was with president trump at the southern border on friday in calexico, california. fast-forward 48 hours or so after that, she was over here at the white house with the president and out of a job, though we do know nielsen will
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be staying on until wednesday. sources tell fox that what the president wants for the person who will oversee the southern border is the quote unquote, toughest cop. the reason why i bring that up is because the white house also withdrew the nomination for the potential i.c.e. director, ron vitiello and when asked about that, he said he wanted to get tougher, someone tougher. that appears to be the word the white house is going with and the president is going with, that they want to get tougher on the border. as for nielsen's replacement, it will be kevin mcaleenan, current head of customs and border protection, another acting role. we will see how long he will stay on the job. ashley: blake, thank you very much. blake burman at the white house. let's bring in jason chaffetz, fox news contributor, former utah congressman. jason, do you agree with this move? >> i do. look, the president knows this is a tier one issue. it is a crisis at the border.
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we can thank secretary nielsen for her long service to the country and to the department of homeland security, but the president's got to take this in a direction that he wants. i think secretary nielsen's support of ron vitiello was a terrible pick. if i was a senator, i would have voted no against him. he was up for a vote in the senate judiciary committee, was struggling and probably wasn't going to get out of there. i think that was a factor. i think homan and chris kobach are both excellent choices if the president goes that direction. ashley: you know, it's one thing to talk tough and be strong on the border issues, but you do have legal restrictions and court rulings, no matter what you think should be done, in many cases or in some cases, it just can't be done because either legally or from the court itself, it just can't be accomplished. >> no, there are the legal hindrances. you also have congressional relations, people are going to have to go up and explain in the house of representatives and in
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the united states senate. then also, in the court of public opinion, where so much of this is waged, but we do have a crisis and you have to acknowledge that. remember, homeland security is an amalgamation of a lot of different agencies, everything from coast guard to the border to i.c.e. to remember, they also are dealing with the secret service and the transportation security administration, the tsa. so it's a huge agency, over 250,000 people. a lot of moving parts. ashley: is it harsh to say kirstjen nielsen was partly responsible for not being strong enough and therefore, we are in the position we are today? >> well, look, i think a lot of what she did was very good. i think there's a great deal of frustration that congress didn't do its part. and that they did keep running up into these legal hindrances. but the president wants the strongest person he could possibly get there. again, i think she did a good job but at the same time, i think the new person, the acting
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director, will do a good job. he does need to get a secretary in place because of the diversity of things that are going on there. ashley: all right. jason, don't go away. not off the hook yet. we will come back to you. i want to take a look at the dow component boeing heading into the open, cutting production of the 737 max. american airlines also saying its cancellations due to the grounding of the boeing max will now last until at least june. before they said april 24th. boeing weighing on the dow. take a look at the futures. the boeing now down 4.5%. u.s. futures down 101 points and you can pretty much blame boeing for that. boeing, a huge drag on the dow ahead of the opening in about 25 minutes from now. of course, we have the earnings season which begins at the end of the week, with the big banks. what are they going to tell us? joining us is market watcher joel shulman. joel, you are bullish, right? i guess you are looking at strong earnings season. is that my sense, or at least a
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decent -- the guidance is always the critical factor in earnings. i think they set the bar so low, that is it that hard to get over the bar? >> i'm cautiously optimistic. we had a fourth quarter which is of course dreadful and everything went down regardless of guidance in the fourth quarter. in the first quarter, two-thirds of the stocks went up and i'm hopeful that as we report the first quarter, i'm hopeful we will see a mix. a healthy mix. the markets are way up, we are near 2018 highs. small caps still have some room to recover. i see growth opportunities in small cap, particularly the growth and value in u.s. and i think international small cap will be strong. ashley: all we heard about in the last month or more is a slowing global economy that's impacting the u.s. economy. >> right, but the u.s. is still strong. we have last week's numbers which our growth is strong despite the runaway m & a we are seeing a very strong market with an overheated ipo market.
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lyft came out last week -- i'm sorry, yeah, lyft came out, pinterest and uber is coming out later this year. ashley: what about these ipos? good time to go public? >> the market's hot. there's a lot of money on the sidelines looking to come in. what i would tdo, we usually wat six months to a year because when the vcs, there's an a-list group of vcs -- ashley: venture capitalists. >> yeah, they don't harvest immediately. they wait six, nine months or a year. ashley: setting the ipo price below the $12 billion valuation, between $15 and $17 for pinterest. does that surprise you? >> it's coming out at about 15, 16 times revenues. when we saw lyft that came out last week at 20 times revenues, 15 times, it seems like the market's going to bear that. they've got $700 million something in revenue. last year they wihad about $400 million. their margins are improving on
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the top and bottom line. ashley: you like pinterest? >> in six months to a year. it's a venture cap company. what's interesting about pinterest is the two founders or co-founders came out of google and facebook. one of the things i talk about, i wrote a book about, is when people lead these big entrepreneurial companies, they create their own, this is value loss to companies like google and facebook. we are going to see more of this in the future. i think that's an interesting outcome. ashley: interesting angle. thank you very much. appreciate it. let's move back now to politics. congressman devin nunes, ranking member of the house intelligence committee, sending eight criminal referrals to attorney general barr this week. roll tape. >> we're prepared to make those eight referrals this week so the two on conspiracy, the one on global leaks and then five that are more specific on lying, leaking and misleading congress. ashley: jason chaffetz still with us. we appreciate that, jason. you used to run the intelligence committee.
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what do you make of this? is this justified? we are talking about leaks after the two-year russian collusion investigation, someone was leaking. should there be criminal referrals? >> yeah, i was chair of the oversight committee but while devin nunes was the chair of the intel committee, he's absolutely right, the leaking is probably easier to prove. it's very easy to document this and compare and contrast the reality, the timing and the sources and where those went. the other charges are very serious. it's exactly what the chairman should be doing, the former chairman, now the ranking member, in nunes. remember, ashley, also going on here, the inspector general did a scathing report last year but he is on the verge of introducing another report on this same topic dealing with fisa abuse as well, and look for that to come out probably in the may-june time frame. i think you are going to see a one-two punch here where at the department of justice they will have to make serious decisions about prosecuting some of their
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own people. ashley: interesting stuff. investigations in the other direction. good stuff. thanks for joining us. really appreciate it. we are looking at a lower open for stocks. the big picture, are we going to see new highs soon? that's a question. by the way, we are down 93 points, putting that squarely on the boeing downfall of 4% or so in the premarket. more problems with the 737 max. forget boeing. we are actually doing okay. meanwhile, beto o'rourke calling benjamin netanyahu racist in a campaign stop in iowa. joe leadermieberman will be her react to that. and andrew makes a lot of his money betting against stocks. when he says he's buying lyft, we got him on the show. he joins us top of the 11:00 a.m. hour to explain why. and the fortnite craze is so big, prince harry says the game should be banned. it's a battle royale or is that royal? we have one of our gamer guys coming up on that. ♪
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ashley: welcome back. ge got a downgrade from jpmorgan and it's hit the stock, as you can see. premarket, down 5%, $9.50. snap, on the other hand, up on an upgrade from rbc. up 4.5%, up 55 cents, $12.39. that is snap in the premarket. israel votes tomorrow and democratic presidential candidate beto o'rourke had some strong words for israel's prime minister. roll tape. >> the u.s./israel relationship is one of those important relationships that we have on the planet, and that relationship, if it's to be successful must transcend partisanship in the united states and must be able to transcend a prime minister who is racist as he warns about arabs coming to the polls. ashley: joining us now is joe lieberman, former independent
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senator from connecticut, joining us now. great to see you. >> you, too. ashley: do you miss washington? you say no. >> not really. every now and then, something happens and i think wish i was still there. but it passes quickly. ashley: back to what beto o'rourke says. prime minister is racist, says it like it's a matter of fact. what's your reaction to that? >> look, this is an ally in the midst of an election. i would say, and i know the prime minister for a long time, i agree with him a lot of the time, i sometimes disagree. he's not a racist. i understand what mr. o'rourke was talking about, which is that one of the groups that is a likely coalition within the israeli political community with the prime minister in this election has some people in it that i don't agree with that have taken a very -- i call them
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anti-arab positions. ashley: he's tainting netanyahu with the same brush. >> that's not fair. everything i know about the prime minister, he's definitely not a racist. in fact, he's quite open and inclusive. he has strong ideas about israeli security and what you have to do for israeli security and look, like mr. o'rourke running for president, prime minister's in the midst of a tough election. he's got to put together a majority. ashley: does he survive tomorrow, do you think? >> i'm guessing. i only know what i hear from there but it sounds like it's neck and neck between prime minister netanyahu's party and the general's party. everyone seems to think prime minister netanyahu has an easier path to get to the coalitions that will bring him to a majority. i would say the odds are that he stays on. he's opinionated, he's
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controversial in some places here, but he's not a racist. ashley: let's move on very quickly. next one, listen to what president obama said about the democrats in a town hall over the weekend. roll tape. listen to this. >> i do worry about sometimes among progressives in the united states, we start sometimes creating what's called a circular firing squad where you start shooting at your allies because one of them is straying from purity on the issues. ashley: that's interesting, isn't it. straying from purity. does that mean we all have to be far left and progressive because if we don't, we form a circle and shoot each other. what's your reaction? >> i think and hope president obama was saying the opposite, which is as we used to say, too often on capitol hill, don't let the perfect be the enemy of the good.
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in other words, in a democratic society, lot of diverse opinions. got to bring a lot of people together not only to get elected but to get something done. if you strive for perfection, that's all you'll accept, you will probably get nothing done. i think the president was saying -- i hope so and i will say it for myself -- in the democratic primary for president, if they start to eliminate people from consideration because they disagree with them on one issue or as in the case of vice president biden, because of some behavior that he has apologized for -- ashley: has he apologized? i don't know that he has. >> he's trying to make amends, i would say. in other words, you can't win by being a purist. you have to put coalitions together. ashley: if joe biden doesn't run and there's not a real moderate democrat, in your opinion, does that play right into the gop and president trump's re-election hopes if he ends up going up against someone who is labeled a socialist?
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>> i worry about that. it also may play into the hands of howard schultz. ashley: schultz could split the vote, could he not? >> does he have a chance as a third party candidate? if you've got president trump, strong supporters, strong opponents, you've got a really left democratic candidate, maybe there's an opening up the middle for howard schultz. but very little history of third parties being successful. the last third party candidate who was successful was a great man named abraham lincoln. so i do think that the democratic party has a kind of not quite existential but critical choice to make if it goes too far left, president trump's going to be re-elected to a second term. ashley: great to see you, mr. lieberman. you are missed in washington, i know, but you are enjoying your 11 grandchildren. that is a blessing. >> praise the lord. ashley: joe, thank you very much. appreciate it. let's take a look at the futures ahead of the opening in about ten minutes from now.
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we are down about 93 now on the dow. the s&p and the nasdaq down about a tenth of a percent. we have an update on the college admissions scandal. the daughter of lori loughlin doesn't want to testify. she's regretting going along with the scheme, apparently. the details, next. i'm working to keep the fire going for another 150 years. ♪ to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature.
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ashley: to the college admissions scandal. lori loughlin's daughter apparently, according to the "daily mail" terrified to testify. susan: olivia jade, youngest daughter of lori loughlin and her designer husband, apparently according to a lot of these reports, she's allegedly very angry at her parents. she's not talking to them at this point. she's concerned that in this college admissions scandal, she will be brought to testify against her parents. people are questioning whether or not she knew about this heading into usc, did she know her parents were bribing to get her and her sister in. apparently according to these reports, some say she did know, some people say that she didn't know. she doesn't really want to get in front of the stand in front of the judges. ashley: wasn't she supposed to be on the rowing team at usc? >> yes. they both got in on the rowing team. ashley: you think they would
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have been told hey, if anyone asks you, you like to do a lot of rowing. susan: she's benefiting. she had a tresomme contract. that's gone now. ashley: what a story. take a quick look at the futures for you. we will be opening the market in about five minutes. still pointing lower, the dow off 94 points. we'll be right back. makes it beautiful. state of the art technology makes it brilliant. the visionary lexus nx. lease the 2019 nx 300 for $359 a month for 36 months. experience amazing at your lexus dealer.
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ashley: former nissan chairman carlos ghosn has now been booted from the company's board. it's the latest development in the story of carlos ghosn. liz: a renault official will take over. now, the wife of carlos ghosn is asking for the french government to step in and help out carlos ghosn. here's what's going on. his lawyer is going to appeal to japan's supreme court. more news coming out about his alleged corruption, that he ran the company for two decades, then allegations starting siphoning off money, including money to buy a yacht, money for his own personal use. more information coming out about carlos ghosn. an unusually vocal shareholder meeting in tokyo about this. one shareholder said quote he's an outrageous monster.
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the news continues on carlos ghosn. susan: the japanese media are not happy about this. they basically accepted him as one of their own. when you siphon off $32 million allegedly it doesn't make you look good. ashley: everyone is clapping. monday's session, starting a new week, down 115, 113 points on the dow. some green, some red. we are just getting up and going. as you can see, the dow off 130 points at 26,294. we said before, boeing really hurting the overall picture for the dow, up 4.5% in premarket trading. now still down 4%, down 16 bucks at $375. that takes a good 80, up to 100 points off the dow. pretty much boeing accounting for much of this loss. take a look at the s&p, down about a tenth, down slightly, 2888. take a look at the tech-heavy nasdaq for you, see what that's
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doing. same story as the s&p, down a couple tenths of a percent. 14 points, 7924 in the early going. who's joining us this morning? stu is out for the day. joining us, jeff sica, john layfield, liz macdonald, susan li, all the experts, the a-team and of course, we have to begin with earnings season which kicks off, by the way, friday with the banks. i guess the question is, can a really good strong showing in this earnings season get us back to all-time highs on the dow? >> i think they can but here's the problem. ashley: will they. >> here's the problem. you had about 100 companies report, about three quarters of them are warning, have warned, and you have obvious margin compression and you have -- caused by some of the tight labor market. i think what we are going to be seeing in this quarter is we are going to see that there's been an effect on earnings from the trade tensions and i think we are going to see a quarter that's going to be very
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disappointing. ashley: slowing revenue growth, really tough comps from 2018 and an uncertain picture looking forward. >> right. ashley: but if the guidance is fairly optimistic, surely that's the main, you know -- >> i think it's guidance is optimistic. we could get a little bit of a leg up but we have a market as i see being priced to perfection at this point. it has to be, in my opinion, it has to be better than what people expect. ashley: let's get on to the story of boeing, cutting 737 max production, also by the way, american airlines extending flight cancellations as that jet remains grounded. let's bring in john layfield. boeing ever going to get ahead of this? i saw a downgrade i think from bank of america, from buy to neutral, saying they believe this problem they thought may be wrapped up in three to six months, they believe it's going to run longer. that's a problem. >> i think it will. i think it will because of a vested interest in aviation administrations from europe and china. you look at what happened right
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after the crash, you had the ceaac, the chinese aviation administration come out and say there's a tie to this and the plane crash that happened before. they are pushing their own c919. the european union came out, who has the airbus 320, they also came out and said there was a problem. our faa came out and defended it. you have all these aviation administrations coming out, doing exactly what's right for their own business which is worrisome. what's worse and worse about this is the fact that europe and china are going to continue and china needs hundreds of planes in the next 20 years. liz: southwest airlines, after american did it, now southwest airlines says yes, all boeing max 8 aircraft have been removed through june 7th. ashley: cancellations. jeff, is this a buy? do you buy on a dip? >> no. i wouldn't touch it. a lot of what john says from my perspective, they have -- there's a serious crisis of
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confidence going on with boeing right now. you can't quantify exactly what the damage is going to be. i think the uncertainty is too great. i think there's a lot of political agendas that concern me, political agendas that concern me greatly. we are talking about the safety and security of travelers and people who trust the governments to regulate these industries. i would not touch boeing now. ashley: still down about 12 bucks right now. let's take a look at amazon. it wants to track your prescriptions and relay personal health care. what could go wrong with something like this? data breaches, right? susan: privacy protection. federal law as well where health care is basically confidential. amazon is trying to do this, trying to track its members'
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presippinpr presippinpr preskripgss, through alexa. they signed a deal with berkshire hathaway and warren buffett so this is an obvious strategy for amazon to go forward with. their share of the market went down last year. they had 50% of the market so there is competition from google and the like. liz: it's really about apps, too. in other words, whether people will be comfortable with your weight information, diabetes information, on some silicon valley app. just being blunt. it's about your private information with app developers. >> that information in the hands of the wrong people could destroy someone's life. i love amazon, i have liked them for a long time. i think they are rushing into this. it's a bridge too far. i think cybersecurity is a major
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issue. alexa does not have a good track record with not speaking when she shouldn't speak. i don't want jeff bezos, as much as i think he's a visionary, i don't want him to know my personal health issues. ashley: we will leave it on that note. look at the big board. down 152 now on the dow, gaining a little more, 26,270 on the dow. downgrade for ge. that stock off the highs, is that 6%? 62 cents, $9.39 for ge. we did have an upgrade for snap. that should work in the opposite direction and does, up nearly 6% on snap. 70 cents at $12.55. don't forget about tesla. we never do. up 2% on tesla this morning, about five bucks, at $280. let's take a look at starbucks. i could use one right now. down about half a percent, 32 cents at $74.71. mcdonald's shares near an
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all-time high and by the way, it's cutting its late night menu to just eight offerings. susan: that's all you need. ashley: you end up going to mcdonald's you apparently don't have to make too many choices. good idea? >> i think it's a great idea. last thing you want to do after 12:00 is try to decide whether you want french fries or not. liz: they want to be the go-to for boozers, i guess? ashley: i was going to say, what is mcdonald's doing right? they keep hitting these all-time highs. susan: a lot of things. ashley: what do you think they are doing right? >> they are going back to like the shake shack model. they do a few things well. they got into all kinds of different menus, all kind of different items being offered. they are growing about according to gdp which when you get that big, that's as good as you can do. they are finally getting back to burgers, shakes and cokes. susan: getting to digital as well.
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buying that company that will help you pick your items through the drive-through and better mobile offerings as well and mobile ordering as they call it. ashley: mcdonald's up this morning. let's take a look at lyft, threatening a lawsuit against morgan stanley. it accuses morgan of supporting short selling of the stock. what do you say about that? >> first of all, i'm no fan of lyft. the fact that they are quoting an article from an anonymous source and then threatening to sue morgan stanley, it's an act of desperation from my standpoint. i don't see anything and i did a lot of research on it, where morgan stanley did anything like this and you know, i think for them to make the claim that they did, i think is -- ashley: the basic -- liz: morgan denies it. susan: do you think it's because morgan's the lead underwriter for uber's ipo that lyft is doing this? ashley: conspiracy theory. like it.
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>> not only that, morgan stanley is not going to jeopardize their position as the leading underwriter of ipos for the sake of this product which is a violation. i don't see it happening at all. >> lyft was just lucky they were first. incredibly lucky they went out first. >> they didn't deserve to go public when it did. they are losing $1 billion. they should take their money and go away. liz: it's also smart for uber to see the shake-out. ashley: let me get to this story, the internet safety area. we talk about it every day. in the uk, ther creay're creati internet safety regulator to monitor social media companies. we know the europeans love their regulations. my question first, is this a good idea? susan: these companies will have to live up to big requirements or face huge fines. some directors might be found personally negligent and liable. how do you enforce this? some of the things they are
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looking for, do you incite violence, encouraging self-harm or suicide, spread disinformation, fake news, cyberbullying children, inappropriate material, but how do you enforce it? how do you prove it in court, especially with individuals being involved? ashley: how do you? you can have a regulator but i don't know how you regulate it. >> how is government going to do any of this? they couldn't do a drink at a brewery. ashley: they can't even pass brexit. >> that's right. i'm completely against the government stepping into this. they are going to do that because the government needs somebody with a less favorable approval rating. liz: they have been pretty lax in the oversight of their own platforms. uk company advertising is next to terrorist content. ashley: they are shouting at me got to wrap it up. great to have you here. i'm sure you would rather be on the beach in bermuda. you lucky person.
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quick check of the big board. down 172 points now, continuing to drop a little bit more at 26,257. we can't blame it all on boeing right now but we are on the downside. the u.s. and china working towards a trump/xi summit where a deal would be signed. that's the plan. coming up next, a former trump trade adviser who says the president has already won. find out why. and a big-time short seller owns lyft and is saying be patient with it. he joins us at the top of the 11:00 a.m. hour to explain. two major players in the border story. still ahead, chris kobach reported to be in the running as president trump's border czar and tom homan, former i.c.e. guy, supports the change at the top of the dhs. we'll be right back.
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ashley: let's check out the big board for you. down 153 points on the dow, 26,269. check out shares of boeing as well. cutting production on the 737 max as the planes remain grounded while a solution still being worked out, as you can see boeing off 4% right now. coming back a little bit but still dra drag on the dow. two stocks hitting all-time highs on the other side. mcdonald's and consumer products giant procter & gamble both hitting all-time highs. m.i.t. ends research funding links with huawei and zte. joining us, curtis ellis, former trade and jobs adviser to the trump campaign. curtis, if you said american companies and institutions really do need to rethink their relationship with china, looks like they are getting the message. >> they certainly are. ashley: why is it so important?
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>> china is a totalitarian dictatorship that poses an existential threat to western industrial democracy. they are subsidizing their industries, using the money they earn from walmart and every american consumer to fund a digital surveillance state, imprison religious minorities, and basically spread this form of authoritarianism around the world. they are pressuring american companies into what to say, when to say it, how to say it. so their authoritarianism does not end at the chinese borders. the message is now getting through. for 20, 30, 40 years we believed as china grew more prosperous it would grow more democratic and more free market. that's over. that illusion has been disbursed. now we are seeing people like jamie dimon, ceo of jpmorgan stanley saying i didn't support
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tariffs at first but now i understand we need to confront china and do it now. ashley: that's my point. they have been doing this for a long time even when they have been told to stop doing it. they just ignored it. now we have a president who has taken a much stronger tack and threatened tariffs. we are still driving on with this trade deal. are we getting closer? when do you expect to get some sort of announcement on a summit where something will be signed and we move on? >> well, as larry kudlow has said, we need to get it right. we're not going to put a timetable on it. we need to get it right. when you have the ceo of a major wall street bank, jamie dimon, saying we need to get this right, it's more important to get it right than to get it fast. i can't predict when it's going to happen. no one's putting a timeline on it anymore. the whole idea that the market needs a deal, the market needs a deal, is, well, the market's not going to be there in ten years if we get the wrong deal,
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because china will be pulling the strings and calling the shots. we will be, as the late senator hollings said, we will go the way of merry old england, where you have the parliament and journalists arguing but we can't defend ourselves or do anything. ashley: is one of the main stumbling blocks this insistence from the united states that we can retaliate if they break the rules, but china does not have the same right in reverse? >> well, we haven't broken the rules. ashley: or we do something they don't like, you are taking away their ability to respond in kind, as with the u.s. with china, they do something wrong. >> but they haven't responded in kind. we put our tariffs in after a thorough investigation and determine subsidies. they put their tariffs in when they say what's going to hurt trump's electoral base. that's not the same. ashley: not the same. all right. good point. great to have you here. appreciate it. how about this story. researchers at a think tank in washington say russia is
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scrambling gps devices to protect president vladimir putin. not that surprised. whenever putin gets close to a harbor, for instance, the gps or ships there go crazy, apparently. does anyone -- is anyone surprised by this? liz: not at all. given drone activity and all that. they notice this when vladimir putin went to the strait. the ships were suddenly put at an airport, the gps location, even though they weren't. yeah, this doesn't surprise anyone they were trying to -- ashley: do we do this when president trump is out there? we must take steps. susan: think tank is very impressed with their ability to spoof global gps. not just in russia but elsewhere in the world, no matter where he goes. this pioneer in the space, according to this think tank, willing to deploy these capabilities especially with important facilities at play. ashley: fascinating. let's check the dow 30 again for
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you. we are kicking off the new week as we wait for the earnings at the end of the week with the big banks. up 156 points, a lot of that is boeing but not all boeing. the dow at 26,268. coming up next, someone who worked closely with rex tillerson at exxon, has he spoken to rex since he left the administration? what's he saying? we want to be nosy. we'll be right back. ll thinking about opening your own shop? every day. i think there are some ways to help keep you on track. and closer to home. edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do.
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ashley: southwest airlines says all boeing max 8 jets have been removed from its schedule through june 7th. the stock is down about a buck at $52. american also extending cancellations related to the max jet until early june. they had hoped it would only go through april 24th. that is being pushed back. that will lead to canceled flights. american's stock down about 1%. big story of the morning, of course, change at the top of the department of homeland security. nielsen out, mcaleenan, in. joining us is the author of "gusha, a novel of the rockefeller oil empire." a former exxonmobil executive, also the speech writer for then ceo rex tillerson, who of course was the trump secretary of state.
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bob, great to have you here. let's talk politics first. >> good morning. ashley: good morning. rex tillerson was also replaced in the trump cabinet, as we know. what would he say about the nielsen move, do you think? >> well, i think if there were a common denominator among the three individuals, it would be one of frustration. certainly i think, and i don't want to speak for any of them, but i think if they got together in a room, i think it would be they would acknowledge the frustration. in the case of mr. tillerson, perhaps frustration at the lack of communication, the undefined communication, perhaps lack of goals, and the secretary nielsen i think just the total frustration about her hands being tied and not being able to do anything really out there on her own. the president as well in the face of an extraordinarily difficult and frustrating situation. ashley: of course, rex
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tillerson, secretary of state, it was a real trial by fire. as secretary of states do, they fly around the world and address difficult situations but i think he was very well qualified for that as former head of exxon. have you spoken to him since he's left the administration, and did he give any sense of what that experience was like? >> no. i want to set that straight. i wish i could say i have, but i was just one of his speech writers. there were a number of them. but no, i have not spoken with him. ashley: well, you know, i've got to say, someone on staff here said rex tillerson looks like the kind of guy you didn't want to get on the wrong side of. he was a strong leader. is that true? or was he a reasonable guy? or is he a reasonable guy? >> no, he was a strong leader. i would characterize mr. tillerson as pragmatic, as charismatic, much in the same
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vein of arnold palmer, just a very, very likeable guy. but i think one of the greatest traits of rex is his humility. that was and is very refreshing. ashley: have to leave it right there. bob davis, thank you so much for taking time to join us today. good luck with the book. we appreciate it. >> thank you, sir. appreciate it. ashley: bob davis from houston. president trump considering a czar to deal directly with the crisis at the southern border. one of the names being considered, kris kobach. he joins us next hour. we will get his thoughts on that. mick mulvaney says the democrats will never see the president's tax returns. question for their trump 2020 campaign, why not? we are asking. congressman jerry nadler still insisting there was collusion with russia. brad blakeman says the democrats are hurting the country. he's next and so is hour two of "varney & company." -all ground personnel... ...or trips to mars.
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ashley: 10 a.m. here on the east coast. 7:00 a.m. out west. i'm ashley webster in for stuart today and here are the big stories we're following at this hour. kirstjen nielsen resigning as homeland security secretary. president trump appointing kevin mcaleenan. he has reputation of hard-line on border security which is what the president wants. congressman jerrold nadler says there is still evidence of open collusion. you will hear it. latest on measles outbreak in rockland county, new york. right outside of new york city, a judge striking down an emergency declaration says the county cannot prevent unvaccinated kids from being in public places. interesting story. the power of video games. "fortnite" in particular gearing up for its first world cup. $40 million in prizes are handed
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out this summer. just as prince harry says the game should be banned. oh my. hour two of "varney & company" begins right now. ♪ ashley: let's take a look at the big board this hour. the dow off 149 points, off session lows, not a great start to the week for the dow at 26,273 let's check the big tech names. majority of them are down. apple higher at 197 bucks, apfel bet, amazon, facebook, microsoft all down at this hour. let's take a look at ge. got a downgrade by jpmorgan. that is hurting the stock at $9.42. let's get state to your money. bring in keith fits gerald out at beautiful seattle, space
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needle over his shoulder. good morning to you. the big banks, are they going to be strong enough to lift this market to new highs? >> i certainly hope so, ash because they have got very, very tough comps to make, i think reality expectations will be key. the guidance, more than the numbers will be the impact. ashley: it is interesting, stocks at end of march, posted best quarter in nearly a decade. this is a number i checked twice. we see a lot of big outflows from mutual fund and etfs. bank of america says outflows of $39 billion in the first quarter. you have all the money coming out of the markets but the market posting one of the best quarters in nearly a decade. what does that tell you? all the equity money coming from stock buybacks? >> it tells me sentiment is right on track. we have remarkable propensity to exactly the right thing at the wrong time. people instead of buying low,
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sell high. the fact they're taking money out is a contrarian indicator to me. a very strong one at that. ashley: especially the markets continue to grind on higher. that is an interesting dynamic. another one for you, keith s is china trade getting it done, baked into the markets? we say that all the time but from my perspective i think wall street says this will get done sooner or later? >> i maintained that a long time. certainly the negotiations based on my experience in that country are going exactly the way i expected. i think a deal is lot more closer and powerful than people realize. the problem when the deal hits is that baked into the cake, do we actually see a falloff? that is what i'm seeing right now, priced to perfection it means it can go either way. ashley: with about the economy? we get all the data week after week. generally it is pretty good. the housing market trying to compact and mortgage applications going up as the
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rates come down. we had period of the slowdown in the global economy sort thatting to have impact on the u.s. is that true or is that overdone? >> you know i think that is a little bit overdone. that points to making the right decision at the wrong time. i think you have to focus on quality ceos, quality companies, must have technology. if that is the case, as an investor, you don't really have a lot to worry about. because your money works hard for you overtime. the short term second guessing inevitably gets people into trouble, ash. ashley: keith, tech sector was leading the way as we went on the bull run. that has faded away. with sector do you look to pick up the man tell and lead? >> right now i'm looking at defense. i'm looking at medical tech and i'm looking at certain big tech. i think for example a company like facebook is tremendous world of hurt. on the other hand i see apple and amazon squaring off in the medical information space and
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that will significant going forward it is. we'll see how that pans out. keith fitz-gerald in beautiful sea at that time tell. we appreciate it. -- seattle. >> let let's get on to the mueller report. jerrold nadler still talking about collusion. roll tape. >> other than general said there was no obstruction of justice. he decided that. mueller did not say that he entitledded to defend the administration and not entitled to with hold evidence from congress. there may not be evidence beyond beyond a reasonable doubt which is high standard of criminal conspiracy with the russians but there was in plain sight open collusion with the russians. ashley: joining us now, brad blakeman, former deputy assistant to bush 43 thanks for being we get the report. no obvious collusion not at all, not good enough for mr. nadler
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the ag is not giving us the whole story. my feeling they put all the eggs in the collusion basket, it blew up on them, now they suggest there is something, hidden. that the attorney general is sanitizing this report. >> we knew this was going to happen. democrats would never be satisfied with a result that did not fit their rhetoric for the last two years. the fact is, when republicans were in power, democrats screamed for special counsel. they got one. two years later, millions of dollars spent. hundreds of thousands, if not millions of documents poured over. the conclusions are obvious apparent, no collusion, no obstruction of justice this is part of the collusion delusion that will continue regardless what is released it will never be good enough as the president points out. this will continue. nadler and others should listen to their leadership. speaker pelosi said impeachment is not on the table. you want to beat trump, do it at the ballot box. ashley: should attorney general barr put out as much as he can
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to dampen down these accusations? >> absolutely and he will but he is also constrained by law. congress doesn't want the attorney general to follow the law. but he is bound by it. grand jury proceedings, classified information, protecting personal information. this is discretionary. this the law that must be followed unless they seek a remedy through the courts. ashley: another one for you, brad, several women have accused joe biden of inappropriate contact. he still hasn't said if he is running in 2020. do you think he is is in, or all too much and he is out? >> no, he is in. his theory is, what has he got to lose? you will have at least 20 democrats or more running and joe biden has equal a shot as any of them declared. as a matter of fact, joe biden thinks is the only moderate that could win. ashley: well, how do you think he has handled these accusations because he hasn't really apologized. he says i acknowledge my actions
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may have made people feel uncomfortable. for that he says, you know, i understand, i understand now why that may have been the case. it is not, it is not an apology. is it good enough. >> no. he refuses to apologize. as a matter of fact he doubled down and said he never thought he did anything wrong. the fact is the internet is fodder for the capes and pictures of joe being creepy over his entire political career. now whether that is a disqualifier or not to seek the nomination i don't think in joe's mind it is because in his mind he doesn't think he did anything wrong. ashley: we'll leave it there. we'll see when he actually announces. brad blakeman, thanks for joining us this morning. we appreciate it. now this, mcdonald's hitting another all-time high today, there you have it, 190 bucks. they are making some changes to their late-night menu. what are those, susan? susan: my goodness i'm so
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excited. after april 30th you have only a few items to choose from if you have the munchies after midnight. these are what i call foundations of the mcdonald's menu. big macks are still available, quarter-pounders, mcnuggets, all day breakfast, pretty much everything on the regular breakfast menu except for the big ol' sandwiches. french fries. ashley: of course. susan: happy meals, mccafe's and fountain drinks as well. about getting your order hot and fresh. big menu items late at night with fewer workers they were not getting items fresh enough to those who were looking to order past midnight. i don't know what you're doing past midnight. i don't need to know. ashley: you're hungry. susan: just from investor perspective we're hits all-time high. this is not based on the business itself is. this has been a cash machine for the past 12 years. $80 billion in buybacks and
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dividends. treasury yields at 1%, 2 1/2 with mcdonald's. hence the shares done really well. liz: what is the choice, stay out late after a party, a hamburger, all day breakfast? what is the bet? i bet all day breakfast. ashley: as long as it comes with fries. susan: mobile ordering at the drive-through. getting high-tech, ordering less after midnight. ashley: keeping it simple. checking with lyft, he owns the stock. coming up at next hour we'll can him why he likes lyft. be patient. we'll ask him why. kirstjen nielsen is out as homeland secretary. kevin mack -- mccall lien nan. with a hard-liner like mcaleenan do we need a hard-liner?
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boeing 737 max jets, their stock is taking a big hit. more coming up on "varney & company." hour two is just getting started. ♪ brighthouse financial. build for what's ahead℠
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ashley: all right. we're just underway on a monday morning, about 45 minutes into the session and the dow is off 141 points at 26,283. part of this, of course has been the boeing story, a drag on the dow. it is off three, well, 4%. down. that is a drag on the dow as we're saying. after the company announced it is cutting monthly 737 production forecasts is that right? liz: that's right. bank of america, merrill lynch really dragged on the stock. said the grounding might stretch up to nine months.
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american airlines grounding 737 max planes. 5000 flights involved. southwest as well following american. this news is crossing that 11 more families joining a lawsuit that has been filed against boeing. these 11 families relate to the lion air crash out of indonesia. their entry into the lawsuit was triggered by the ceo of boeing is apologizing. they feel -- ashley: there was something that needed to be fixed in the software. liz: that is correct. boeing cutting production about 20%. a lot of news crossing on boeing. the shares of suppliers getting hit as well. ashley: stock down 4% this morning. emac, thank you. story of the day, shakeup at dhs. kirstjen nielsen out. kevin mcaleenan will be acting secretary. kris kobach joining us, former kansas secretary of state. thanks for joining us, your name has been mentioned as a possible
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candidate for the border czar we understand. the question being, if mr. trump is bringing in perhaps someone stronger on border security, do we need a border czar if we have a hard-liner already in place? >> you know it's possible that the white house might want a border czar in addition to -- obviously they will have a new homeland security secretary. the key is you have to have seamless communication between the white house and the department of homeland security. we have to make sure that the department of homeland security is executing very quickly if the white house wants to take a change of direction or launch an initiative. it makes sense to have both. if he has a strong leader at dhs, you could also get by without a czar too. ashley: i guess the question is would you like to be the border czar? >> you know that is obviously the president's decision to make. i have worked with him in the past and served on his transition team for immigration. if he decides it would be right for the country for me to serve i would be honored to do so. ashley: very good. another one for you, kris is
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homeland security focusing too much on the border, not paying enough attention to other threats? >> frankly i think they can walk and chew gum at the same time. it's a huge agency. ashley: yeah. >> focusing on the border is appropriate because we are facing a true crisis. in fact declaring it a national emergency now seems like an understatement, right? march had 100,000 apprehensions, highest in any month in the last 12 years. mexico talking about the mother of all caravans, their term, on the way, 20,000 people. we have to take immediate steps right now. we don't need congress to address this crisis. there are multiple things can and should be done immediately by the agency. ashley: let me ask you this one, i always wondered about it. the uk ended birthright citizenship as many countries around the world. do you think that should be eliminated here in the u.s.? could that help stem some know of migrants, no they can have a
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child born in the united states it, gives them a lot more privilege to stay? >> well, it is interesting you mentioned the uk. the majority of countries in the world do not have birthright citizenship. ashley: right. >> they have citizenship based on citizenship of the parents which is what the uk has. ashley: yes. >> there is strong argument to be made, we have what is called birth tourism, tens of thousands of people born every year by, born to mothers who intentionally came into the united states to have the baby in the united states. that endangers both the mother and the baby if they're crossing through the desert on the south border. ashley: right. >> there is a good argument to be made. ashley: is it constitutional question? would you have to amend the constitution? >> so interestingly the constitution says all persons born in the united states and subject to the jurisdiction thereof are u.s. citizens. the key is that phrase, subject to the jurisdiction shun thereof. many scholars pointed out that means if you are a, you owe
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allegiance to another country, not to the united states and you are here illegally in violation of u.s. law you would not be subject to the jurisdiction thereof. i think it probably could be done through statute or perhaps even regulation. ashley: very interesting. we're out of time. kris kobach, thank you so much. appreciate your time. good luck if you get the call? >> thank you. appreciate it. ashley: all right. big blows to rockland county, new york,'s plan to take on their measles outbreak. the judge says the county cannot ban young unvaccinated people from public places. judge napolitano will have more on that next. first take a look on the big board. we're off down 117 points, trying to come back a little bit. we'll have more "varney" right after this. ♪ want more from your entertainment experience?
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ashley: now this. a state judge put on hold a ban on unvaccinated children in public places in rockland county new york. as the county deals with an outbreak of measles, interesting story this. joining to us break it all down, judge andrew napolitano, host of "the liberty file" on "fox nation." hey, judge, great to see you. >> ashley, great to be with you. ashley: not often we get together to talk about measles. >> without varney. ashley: this is an interesting story. they have an outbreak of measles in rockland county. they're concerned if unvaccinated kids are out in a public area could help to spread measles. but the judge says you can't ban children. >> the county executive in my view, well-intentioned,
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well-motivated signed an order banning unvaccinated persons, primarily children, unvaccinated places includes all public places, places owned by the government, all sidewalks and public gathering places. new york state supreme court justice enjoined this, not on religious grounds but on the ground whatever is happening with 166 people out of a population base of 330,000 doesn't constitute an emergency. he used a new york state statute, a can clamty of the magnitude that the government cannot operate. this does not meet the standard for an emergency which would allow the government to keep people in certain areas and prevent them from, from other areas. i think this -- ashley: logic is you have to wait until unvacs neyed kids, could be spreading measles, get
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out there enough and cases ensue to meet the criteria? >> i don't know an outbreak of measles could ever meet that standard of emergency since the vast majority of the population is already vaccinated. if you've been vaccinated, physicians can correct me if i'm wrong, you will not get the disease, if you do, it will be so mild, it will build up antibodies within you and you will be rid of it. it appears this line of argument doesn't mean the standard for an emergency is upheld, there is very little that the rockland county authorities can do, short of education, trying to talk people into it. we haven't even reached the religious area. there is legislation in the state of new york which would, legislation, proposed legislation, not a law, which would remove the religious exemption. you can't do that. the religious exemption is founded in the first amendment of the united states constitution. if there is some religious belief, not cultural, not ethnic, not social, but
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religious that prevents you from having your children vaccinated, that trumps lower case t, that trumps -- ashley: it is protected. >> the government's wish to have children vaccinated. that is where we stand. around and around we go. >> how on earth do you check a child in public area is vaccinated or not? they have to carry around papers? >> very difficult. it is sort of self-policing. every works. pleasure. ashley: great to see you. democrats still pushing to get president trump to release his tax returns. drip, drip, that goes on but acting chief of staff mick mulvaney says no way, it is never happening. we're asking the trump 2020 campaign about this one next hour. ♪
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♪ ashley: carry that weight. i like the song. liz: i like you play all the songs they heat. ashley: we should play oblide he hates that one. liz: or yellow submarine. this one i like. stuart would hate it. ashley: we have news on brexit. theresa may is heading to berlin to meet with german chancellor angela merkel. emac with the details. liz: "huff" been covering this. this is chapter 80. if they don't get an extension. uk is due to leave on friday. ashley: right. liz: theresa may another extension, she wants to more time to coax labour, meaning
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jeremy corbyn, to agree with a divorce deal. listen we've been down this role with brexit. will they get what they want without doing will of the people? maybe will of the people may give them cover to get it done. this is continued deadlock. she wants further delay, watch this, june 30th, in order to coax jeremy korb byrne, socialist leader and labour into a divorce deal. we'll see. emergency summit. ashley: have the european parliamentary elections in may which confuses things. will the uk have to take part in that? that is complete and utter mess. every week is a critical week if brexit. this is the start of a critical week. exactly right, susan. happening now, secretary of state mike pompeo announcing news on iran. susan, what is going on? susan: this is big deal. a element after foreign state is labeled a terrorist organization. iran revolutionary guard corps
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designated as a foreign terrorist group. this is unprecedented. if you do any business with them, you're sponsoring state terrorism. that include as lot of fines that come your way and possible criminal cases as well. yes, there you go. looks like the state department says iranian government, primary use, using revolutionary guard means of directing, implementing global terrorist campaigns. this comes after the treasury treasury, by the way, they put a lot of, shall we say limits how many people you can deal with from iran and some of the sirens groups including as i mentioned, a lot of state departments as well. ashley: it's a big step. susan, thank you very much. let's get back to your money. come in brian wesbury, first trust advisors chief economist. brian, great to have you. >> hey, good morning. ashley: good morning. simply put, you're bullish on
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the economy, right? why? >> i am. the data got weaker late in the year possibly because they had a hard time putting it together with the government shutdown. a lot of the statistical agencies weren't staffed. so maybe there were some problems with the data but you know, people were expecting almost zero percent gdp in the first quarter and all of a sudden, boom, the data has turned and now we're up to 1 1/2 to 2%. tax cuts, deregulation, they are helping the economy. they will continue to help the economy and i don't think the fed is anywhere near tight. and as a result i think this year is going to be 3% real growth. ashley: that is my next question, brian. you know, where do we go from here? for the year you think 3%'s possible? >> i definitely do. you know the first quarter will start out weak. ashley: yeah. >> if you look back over the last five, six years, the first quarter has been weak. we don't really know why.
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whether it is seasonal adjustments or some kind of a problem with the data. but then the second and third quarter pick up and that boosts the yearly average. so i do look, by the time we get to the fourth quarter, we're going to have about three% growth for the full year, which is what we had for about 2018. a lot of people got down on the economy. they lowered earnings estimates. they were thinking the fed would cut rates. i think all of that changes the next six months. ashley: very good. you mentioned the fed. president trump nominated steve moore, herman cain to the federal reserve board. do you think he is politicizing the federal reserve? there are only two out of 12 votes. how much can they shape policy? >> other than the chairman of the fed, the members of the fed don't have a lot of power unless they have a full majority. if there are two members politically motivated i agree with you. that is not going to be able to
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shift the direction of the fed in any dramatic fashion. you know, presidents over time have tried to affect the fed. they try to affect every agency of the government. and, you know, steve moore came out, wrote a piece in the "wall street journal." said he wanted to cut interest rates. that appeals to the president who doesn't want higher interest rates to hurt the economy. i would argue to all of them the fed is not tight. 2.4% interest rates in an economy that is growing, remember we have to compare it to nominal growth because that's real. say we have 3% real growth but 2% inflation, that is 5% growth in the economy, interest rates need to be a lot higher before the fed is tight. ashley: right. >> plus, there is still 1 1/2 trillion of excess bank reserves in the system. there is no liquidity problem. ashley: very good. >> this idea of, this idea of
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cutting interest rates right now, i don't agree with it. ashley: right. just about where they should be? >> it may actually backfire. ashley: exactly. brian, thank you so much for joining us. i like your bullish outlook. very good. thank you for joining us. >> have a great week. ashley: you too. this is a strange story. the woman arrested at president trump's mar-a-lago resort, well she will appear in court today. phil keating is there in west palm beach. phil, set the scene for us. reporter: this is the u.s. courthouse downtown west palm beach. 32-year-old zang is inside of holding cell waiting for her 1:00 bond hearing which is couple hours away. theoretically she could be granted bond by the federal judge. she said last week that she has a $1.3 million home back in china shanghai. so she definitely has some financial means to make bond, however, federal prosecutors last week called her an extreme flight risk. we anticipate today they are
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absolutely going to be arguing for her to remain in detention without bond. she is charged with two federal crimes. one, making false statements to a federal officer, two, entering restricted property. all of this happening two saturdays ago at president trump's private mar-a-lago resort on palm beach when this woman lied her way into the resort. she got through the first round of security after showing secret service agents two chinese passports. she was then put in a golf cart, taken to the second security checkpoint. it was only there that a reception for the club looked at the list and found her name not to be on the list. she was denied access. that led to a heated argument which ultimately led to her arrest by the secret service. secret service tells us, look, they provide protection and security for the president when he is in town or wherever he is outside of the white house. however this private resort, for-profit resort that the president owns, who gets in is actually controlled bit club.
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so we expect mandarin interpreter to be here in the courtroom today as well. however last week the judge and fbi agents, or secret service agents they thought her grasp of english was pretty good. it should be a short bond hearing. they usually are. however her first appearance last week which is usually like a five or 10 minute procedure, it went beyond an hour. ashley? ashley: it is a strange story but we're going to continue to follow it. phil, thank you very much for laying out the scene for us. appreciate that. staying on this bring in andrew boring, director of homeland program at the hte national security institute at george mason university. thanks for joining us. how can we prevent things like this? phil keating just said, look the club controls who gets in. so it is very difficult to have presidential security level control over something like this? >> you know. i think there is a broader
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conversation we can be having about the risk of introducing hardware or software or allowing unauthorized personnel access to information systems can create. so the introduction of an unauthorized piece of equipment like a thumb drive or software or a cd-rom could do all kinds of things in terms of bringing in viruses that could steal data, that could corrupt data, create an access point for future risk. i think that you know, it is one incident in a long-standing trend of threats to american government but also significantly american industry by foreign powers, hackers and foreign competition. ashley: but, andrew, how big of a threat was this? to me it is very, you know, the inspector clousseau of spies almost. she gets into the resort. she has a thumb drive with malware on it. this is so ill-conceived. was she seriously thinking she
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could create some sort of mayhem within presidential circles or is this someone who may have some mental issues or something like that, wanders into the grounds, this brings up this whole issue but was she a serious threat, do you think? >> i don't have all the details of this, going with the investigation of the prosecution. the broader component of this, it times up with april which actually been identified as national supply chain integrity month by the department of homeland security, pentagon officials at the director of national intelligence, national counterintelligence and security center and point they're trying to do is raise awareness throughout the entire u.s. industrial base and economic and technology providers that american industry and american systems are being targeted by foreign countries and hacker collectives and organized criminals. ashley: yeah. >> so it is not just the end point that one person comes into one facility with one thumb
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drive. ashley: right. >> there is a strategic level systemic campaign to weaken the american economy, steal american intellectual property and research data and harm our way of life. ashley: right. >> so i think, again, there is one thing that happened this week but there has been a long-standing campaign by -- ashley: i get that. >> yeah. ashley: it's a bizarre case but it points out a bigger issue. andrew boring, thanks joining us. >> i appreciate your bullish nyet hness to commitment to security of america. we are bullish on american security. ashley: thank you. new poll by the way by rbc capital markets has good news for president trump. finds the vast majority of wall streeters think he will be reelected. we'll have numbers for you in the next hour. and prince harry sounding the alarm on one of the most popular video games in the world. he wants to ban "fortnite." we're on it. more "varney" after this.
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ashley: let's take a look at the big board. looks like we were coming back nicely. let's get to the gaming industry which we cover a lot on this show. uk's prince harry, well he wants to ban "fortnite." interesting. rob steiner, "gamer world news" entertainment host. rob, we did the story yesterday, the young prince saying it is too addictive, an that, you know, kids need to get outdoors and it is designed to addict players and get trapped down in
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the basement for days, hours at a time. it out right should be banned. what is your reaction when you saw that? >> ashley, to be honest i had a mixed reaction, very first time i heard this on one hand i am actually really happen to know that the royal family is talking about "fortnite." we're in 2019 where video games have intercepted the royal family. i am happy he is bringing awareness to gaming addiction which is serious topic. on other hand to suggest a ban in the uk seem as bit excessive. plenty of countries regulate gaming. timing, for example, set a time limit how long their youth are allowed to play games but to suggest a full-on ban seems a bit intense. it doesn't really seem like something that would be feasible. ashley: yeah. >> we have vpns for a reason. when you're in a country outside of the great firewall it becomes much more difficult to say no,
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you can't get access to this game. ashley: move on from a royal ban to another one. epic games announcing details for the upcoming "fortnite" world cup. this will include really big prizes. this is no another legitimizing of the gaming genre? >> i think this not only legitimatizes the gaming genre but also legitimizes "fortnite" even more. "fortnite"'s world cup they just announced will take place along 10 weeks. there will be multiple times you can compete through the week. what is also interesting, there are open qualifiers, anybody can sign up to compete for million dollars across 10 weeks. at the very end you have a chance to win $30 million at end of it all. open qualifiers are on monday and saturday sunday, they have people won the matches compete for one million dollars. it is exciting, and a lot of money epic is putting up themselves is. not only saying we think this game is incredibly successful
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but pulling a bunch of people who would attempt to win the prize money that. >> is remarkable. rob, snapchat's parent company launching a social gaming platform called snap games. my feeling they're doing this, because so many people are playing "fortnite" and not getting on snap. scott only way to beat them is to join them? >> i think you're on to something. sounds to me what snapchat is trying to do, create this sort of platform where everyone goes to hang out, talk to your friends, send pictures and videos to your friend and also you can go to play games with your friend. they said, i believe five or six games they announce sod far and two of those games are going to be battle royale titles. they will be similar in concept to "fortnite." to compare it to "fortnite" i think would be a bit of a stretch. these games will much more on the casual side and not so much into the competitive side as we see in games like, you know,
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apex, "fortnite," things of that nature. ashley: right they hope it would be compete or at least compared to "fortnite." think you're right. captain rob, thanks so much for joining us today. i'm sure we'll be talking again soon in the near future, continuing explosion of e gales, everything goes with it, carries on. appreciate it, rob. >> fantastic. thanks for having me. ashley: rob, so californiaian. fantastic. more on the crisis on the border. i want to know what does the average mexican citizen think about what is going on in their country? that is an interesting question. we're talking to a mexico city businessman after this. ♪
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ashley: now to the crisis on the border. president trump threatening financial penalties on mexico for illegal immigration and drugs that come into the u.s. joining us upaga ceo. it's a mexican business by the way, that does business here in the united states. thanks for joining us. i want to know, i'm sure our
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viewers do, how do mexican citizens feel about this border crisis? >> well, good morning, obviously they were concerned. last week caused a little bit of tension on both countries but i think that the encouraging words by mr. trump over the weekend and president owe bring door last week, -- obrador and things are a little more relaxed as we go forward. ashley: should and could mexico do more to stop these caravans of migrants coming from the south through mexico, to the u.s. border? is there more mexico could do? >> yes. i think that mexico can do more and is doing more. i think that we got into this situation with a little bit of uncoordination and misunderstanding between the two
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teams. the obrador administration didn't have experience to actually share and reaction regarding this field. one of the crucial moments, when mr. jared kushner was here in mexico on personal mission and personal meeting with mr. obrador. they came out with different agreements. apparently some of the mexican administration didn't term that, doesn't communicate effectively with miss nielsen a few weeks late they're signaled frustration with mr. trump. i think we're back on track doing much more what the united states wants mexico to do. ashley: very quickly, if the president runs out of options, he says he would shut down the border. what impact would that have on mexico? >> obviously we hear a lot of dooms day words like catastrophe, really recession. i think both countries realize we're too intertwined economically and in trade to actually get to that stage. i think a lot of things are going to happen.
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it is not best interests of mexico or the united states to get into that state. ashley: we're out of time. you so much for speaking with us taking time, from mexico city. >> my pleasure. ashley: fox news's griff jenkins spoke to the president while he was visit the border in southern california. griff jenkins joins us next hour to tell us all about his big interview. pinterest, one of the big tech companies going public, set a price range, and lower than the last valuation, we'll have latest numbers for you. also coming up lyft had a bit of a rough go since going public. one well-known short seller is bets on the stock. we'll talk to the one and only andrew left after this. ♪ now i'm thinking...i'd like to retire early.
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(advisor) so with a nationwide annuity, you can get protected... ashley: all right. it's top of the hour. let's check the big board for you. we have kind of been stuck in this range for awhile now. dow off about 112, 113 points at 26,300. boeing still dragging on the dow this morning. the stock down 4% or 16 bucks at $375. boeing up maybe about 80 points of the dow attributable to boeing. want to stay on your money. let's check lyft. down today but still above the $72 ipo price, just. it's down 2% but at $72.86. guess who's joining us now? andrew left, founder of citron research. thanks for joining us, andrew. you own lyft. you say to be patient with it. why? >> actually, it was more -- there was a lot of media
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attention to short sellers with lyft, and i guess the issue with morgan stanley was people who did early investments in lyft who are restricted shorting it against the early investment. i am an earlier investor in lyft. i'm keeping it. i'm not shorting lyft. i believe that shorting a stock just because they lose money right now is a recipe to go broke in this market. especially if you look like something like lyft, which operates in a duopoly with complete blue sky ahead of it, ride sharing is not a fad, it is a megatrend. i just think that saying oh, look how much money they lost last year, let's short that stock, is very amateurish. ashley: interesting. you're not so hard on the e-commerce platform shoppify. you shorted that stock. why? what don't you like about it? >> i think shopify is marvelous. i just think it's trading at complete stratospheric levels.
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when you look at markets and you look at valuation, you talk about disruption, whereas lyft, it operates as duopoly, shopify has seen head winds with competition. microsoft said they might be going in their space. square is investing heavily in their space. instagram, facebook is investing heavily in their space. we see some things trading at a forward multiple of say 300, you heard me right, 300, then you look at -- yeah, forward multiple right now, and they lose money -- and you look -- so it's a great company. it's just not a $20 billion company. ashley: do you own shopify? >> i'm short from these levels. i think the stock should be significantly lower than where it is right now based on the earnings, based on it's already been out and it no longer operates specifically by itself. it has significant competition. ashley: i have to ask you about a stock we talk about a lot. i think a lot of people talk about this stock. tesla. it's a fascinating stock with a
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fascinating founder. delivery numbers were way down in the first quarter. are you still hot on it or not? >> so it's not as much am i hot on it. i think it's a terrible short. if you are long, you have to be extremely patient. the question is, are deliveries down because of supply, or are deliveries down because of demand. that's the major question right here. i still think a revamp of the model s, i think the model y will just be a tremendous seller, and it's very important to acknowledge in my opinion, we are not really seeing an ev, electric vehicle, revolution in this country. we are seeing a tesla revolution. people actually want the teslas. it's so easy to look at musk's antics and get distracted from the underlying fundamentals of the stock. here's a question this weekend had huge news, they were able to go and get money from fiat in europe, and it could be hundreds of millions of dollars a quarter but it seemed to have been pretty much unnoticed by the
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press. it's more of a battleground stock. it's very tough for me to say, for anyone to be short a stock, that really is a leader in its category the way tesla is. ashley: what's interesting about tesla is no matter what you throw at the stock, no matter what the headline, bad or not, it's a bit teflon, is it not? >> it's not teflon at all. the stock actually hasn't performed well over the past three, four years whatsoever. ashley: based on -- you would expect it to be being hit a lot harder than it is. >> you know, that's true. it's funny you say that but i live in los angeles. i drive home from the studio today, i will probably see a hundred teslas. if you look past the headlines and you look -- which are all negative, musk is so easy to hate, no doubt -- and you look at the actual product and what they're selling, it's a compelling offering. people love their teslas. they are way farther than any
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other automotive manufacturer when it comes to electric vehicles. ashley: so 'fess up. do you own a tesla? >> no. but i'm actually waiting. i'm waiting for them to redo the model s and i will be a buyer, or the model x. i think there will be a refresh soon and when they do, i will no doubt buy one. ashley: we know it's a big year for big tech ipos. let's take a look on the screen right now. just a few names we are keeping an eye on. uber, slack, pinterest, you name it, there's a lot coming to the market. any in particular that really interest you? >> i love uber. i just think ride sharing, i'm an investor in uber. i think ride sharing is just tremendous. i think it's just begun. i'm not a big fan of wework or airbnb or pinterest. ashley: why not? why not pinterest?
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>> i understand what they do. i think it operates in a somewhat finite market. i would like to see them turn the corner. i don't think at pinterest business as saying this is disruptive versus maybe an uber. there's nothing disruptive, game changing about pinterest. ashley: what about slack? >> i'm not well-versed enough to give an informed opinion on that one. ashley: yeah, you know, we have it here at fox, i'm not well-versed enough to use it. i think i'm avoiding it at all costs. once i get into it, i get lost. what other stocks out there that we should look out for that you like? >> you know, as for stocks that i like, i keep it limited to what i really like. i want to find unique situations, you know. nothing really is biting right now. what i don't like is i have been
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short wayfair for a long time, losing money in that position. i still think it's a great short. they are selling furniture online. the anti-lyft, nothing disruptive, nothing crazy about that. i still short wayfair. they have been losing money and i think they will continue to lose money. other than that, i just think it's very careful that your viewers should be able to take away what you read in the media, which is oh, a company loses money, we should short them or not buy them like we have seen with lyft versus a real growth story, what you saw with amazons of the world that lost money and boom, look what happened. ashley: what's interesting, you said i'm always looking for unique situations. what is, in your mind, a unique situation when you consider a stock? >> as an investor, last time i was on your show i was long snapchat. i think the stock is up 70% to 80% from just three months ago when i was on with mr. varney. the reason why is everyone was ruling snapchat dead. everyone said it's dead, it doesn't exist anymore.
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i knew, i saw it was overly shorted, the stock. there was a lot of hate involved. i was a buyer. sure enough, i think it's up 80% in three months. same thing it was with facebook, when it was 120s, 130s. i like stocks that are overly loved. i want to short them. if there's a flaw in their business like shopify. stocks that are overly hated that possibly hated a little too much, as i saw with snapchat. ashley: snap is up 4% today. in other words, you are a contrarian as people run to the hills screaming, you run in and vice versa. great stuff, andrew left. always fascinating to pick your brain. thank you for joining us this morning. >> nice to be here. ashley: all right. he's going to order a tesla, he says. kirstjen nielsen out as homeland security amid the ongoing crisis at the border. president trump bringing in a hard-line immigration enforcer to run the department. tom homan, former i.c.e. guy, is with us this hour.
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does he agree with the president's decision? fox news's griff jenkins at the border covering it all and he snagged an interview with the president. he's with us this hour as well. mick mulvaney says the democrats will never see the president's tax returns. he's also calling them out on their trump derangement syndr e syndrome. >> face it, the democrat party is infested with trunk mp derangement syndrome. they still cannot accept the fact he won the election and will do anything they can to undo that or prevent it from happening again. ashley: tds. i will get it eventually. they can try, of course, but here's some good news for president trump. according to a new poll, wall street says he's in. we are on it, all of it. stay with us. we are just getting going.
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ashley: let's check in on a couple of the democrat 2020 candidates, shall we? new jersey senator cory booker reportedly only raised $5 million in campaign donations in the first quarter. that pales in comparison to bernie sanders' numbers, $18.2 million or beto o'rourke who just raised $9.4 million already. speaking of beto, he had a whirlwind of a sunday, caught up at a campaign rally taking on israeli prime minister benjamin netanyahu, here's what he said. roll tape. >> the u.s./israel relationship is one of the most important relationships that we have on the planet, and that relationship, if it is to be successful, must transcend partisanship in the united states and it must be able to transcend a prime minister who is racist, as he warns about
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arabs coming to the polls. ashley: earlier on the program, former senator joe lieberman said he knows netanyahu and he is not a racist. this as israel's election for prime minister takes place tomorrow. netanyahu's recent bribery and corruption charges weighing on his numbers going into tomorrow's election. now this. white house chief of staff mick mulvaney appearing on "fox news sunday" responding to the democrats' renewed push to get president trump's tax returns. here's what he had to say. take a listen. >> you believe democrats will never see the president's tax returns? >> oh, no. never. nor should they. keep in mind that that's an issue that was already litigated during the election. voters knew the president could have given his tax returns, they knew that he didn't and they elected him anyway which of course is what drives the democrats crazy. ashley: this morning, new york senate democrat introducing legislation to get the release of the president's tax returns. it's an issue that's going on and on.
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let's bring in kayleigh mcenany, trump 2020 national press secretary. good morning to you. >> good morning. ashley: i guess the first point to make is why not just release the tax returns and get it over with and move on? >> well, the president has been very clear, his tax returns are under audit. he won't release them until that's concluded. but there's no constitutional necessity or mandate that he turn over his taxes. he's entitled to privacy. voters clearly didn't have a problem with it, as mick mulvaney said. he's president of the united states. look, at the end of the day we're not playing the democrats' game. what this is about is political retribution because they were upset there's no collusion so they moved on again with the tax returns. good luck with the recycled playbook in 2016. didn't work too well then. ashley: that's it, you're not going to see the tax returns, move on? >> it's up to the president but the president has been clear on this. i refer to his statement and he said no, not now. we are not playing the democratic game. ashley: fair enough. let's move on. let's talk health care,
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specifically the gop's plan. now, the president tweeted this just a few weeks ago saying the republican party will become the party of health care, but so far, has to be said details of a republican health care plan have been slim. so what is it, killing obamacare is not a sustainable health care plan. i understand the repeal and replace, but where's the replace part of this, kayleigh? >> i think oftentimes what is ignored is what the president has done so far. he's proven that free market policies work. under president obama's plan, obamacare, you couldn't have short-term plans. limited duration plans. president trump wiped that away and said you have access to these plans. what have we seen now? this is the first year since obamacare was passed, the first year that premiums are not going to rise. it's because of free market policies. stay with prescription drugs, the approval of generics led to $26 billion in savings for consumers last year alone according to the council of economic advisers. free market principles are the
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answer. president trump is right, we will become the party of health care. ashley: to get the hard details before the 2020 election, would that not help his cause? i know he said he will get into this after the election but perhaps more details would give him a bigger boost. >> we are going to see more details. it's worth mentioning that there was a very good plan called graham-cassidy which devolved powers to the states, empowered states like florida to implement free market policies and competing across state lines. that lost by one vote. there is a plan, it's being worked on. the president is going to be talking a lot more about this in the coming two years but he's done a lot already and proven government takeover of health care is not the way to go. democrats 2020 contenders i just mentioned are not too happy with obamacare either. none of them are running on it. ashley: another issue, the mueller report takes more than two years and guess what, we find out no collusion. but that's not the end of the story. the constant call from the democrats to have the attorney general release the report in full, he says he's going to do
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that by mid-april but trying to create this atmosphere there's still something contained within there that is a gotcha moment but the a.g. is trying to sanitize it before releasing it. >> right. not true. law mandates that he remove any grand jury testimony, law mandates that he remove classified information. there's more than hundreds and hundreds of pages have to be scrubbed for that. this is democrats playing a game again. they know they lost on this. they know there's no collusion, no obstruction so they are trying to insert doubt and concern where there shouldn't be any. we are all going to see the report. the democrats should calm down. ashley: all right. take a deep breath. we will leave it there. kayleigh mcenany, thank you so much. appreciate it. let's take a look at amazon. they want to track your prescription status and make an appointment with your doctor all through tehe echo device. the company says your privacy is airtight. we've heard that before.
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of course there's a hipaa element to this as well but they say they can do this. we will talk about it. check snap, parent company of photo sharing app snapchat, on a tear lately. they have announced a new gaming platform. we just talked about that. rbc now says buy, buy, buy. it's up -- not as in good-bye, as in buy the stock. it's up 4.5% at $12.37. united nations just revealed concept images of a floating city that could hold about 10,000 residents. it's built to sturvive natural disasters, floods, even category 5 hurricanes. it would have ocean farming so it would grow things underneath the platform. this could be the housing of the future. we could also be one step closer to hypersonic jet travel across the atlantic. reaction engines just successfully tested a technology that would stop jet engines from melting at speeds up to 25 times the speed of sound. they are upping the next round of testing which could one day
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lead to flights from london to new york in less than an hour. a whole lot easier to cover brexit. that will still be going on in the future. happening now, the international space station spacewalk. i love these pictures. there it is. floating around up in space. what an interesting job. we'll be right back. i'm off to college. i'm worried about my parents' retirement. don't worry. voya helps them to and through retirement... dealing with today's expenses ...while helping plan, invest and protect for the future. so they'll be okay? i think they'll be fine. voya. helping you to and through retirement.
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ashley: we should have seen this coming. joe biden getting the "snl" treatment over the weekend. watch this. >> about all the touchy-feely stuff. >> if you're really going to run in 2020, you have to change the way you interact with women. >> okay. look, you guys know that i'm a tactile politician, right? okay? i'm a hugger, i'm a kisser and i'm a little bit of a sniffer, okay? but the last thing i ever want to do is offend anyone. ashley: he's good, right? all the material is there and they did a very funny job. what was your take? liz: it was really funny. it shows that "snl" is equal opportunity. ashley: good point. liz: there was one part where he
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said i did the 23 & me dna thing like elizabeth warren, making fun of elizabeth warren with her native american indian and turns out i am 1% eskimo so i can do the eskimo kissing thing, rubbing noses. very very clever and funny. he came off as a high energy grandpa who is set in his ways and won't change and kind of clueless. it was funny. ashley: it was funny. the question is of course does all of this prevent him from running. we have already had one guest this morning say absolutely not, he's going to run. liz: the fears we have been hearing on "the evening edit" the show that i host is that trump could win in a landslide if it's bernie sanders. democrats are worried about that. ashley: absolutely. good stuff. now this. california at it again when it comes to taxes. new legislation could put taxpayers on the hook for more than $6.2 billion worth of tax increases and you won't believe what they are taxing. actually, you probably will.
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it's california. we will tell you next. first, listen to this. a new poll has some good news for president trump. it says most of wall street thinks president trump will get re-elected. stay there.
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ashley: let's check the big board for you. we have been in the same range now for about an hour or more, down 117 points. the dow at 26,306. president trump says no one in the 2020 field of democrats scares him. he said that before. now listen to this. 70% of wall street insiders say trump gets re-elected next year. that's what they believe. let's bring in tom lyden to talk about this. tom, to you first, hello, let me just ask you, 70% of the market believes donald trump will be re-elected. probably based on what's being shown so far on the democrats' side. what's your thoughts? >> well, i think it's great news
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for wall street and as you were kind of leading into here, biden would be the front-runner and he would give wall street a big bear hug if trump lost as well. again, kind of continuation of what we have seen on the obama administration, no pun intended with a bear hug, for sure. but i think the key is we don't like disruption on wall street. we want things status quo. if you look back on all the great things the trump administration has done so far, fantastic, but also, obama let it be status quo for many number of years where we have enjoyed a ten-year bull market on wall street. ashley: let me bring in brian brenburg. same thing. how could you not want another trump term? he's all about tax cuts, deregulation, stimulating the economy. markets love that stuff. >> it's not just about wanting him but it's also looking at what's going on on the democrats' side. it's not hard to look at that, president obama came out recently and said they are at
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risk of creating this circular firing squad because it's all about progressive purity. the market looks at that number one, says we don't want any of that because that's not going to be good for business or the markets but number two, they realize the rest of the country isn't looking for a candidate who is just exhibiting progressive purity and is way out here on the left. so wall street wants to see president trump and given what's going on on the left, i think they think it's likely he's going to be the guy. ashley: on the democrat side, if joe biden runs, based on the long list of candidates we have now, many, many to the left, joe biden would probably be the favored candidate on wall street, right? >> how easy is it to win that contest? almost anybody who is not hard left, who is going to be the market's preferred guy. yeah, biden comes out on top. compared to who? sanders and warren? the bottom line here is there's nobody on the hard left who wall street can look at and say that's a sane economic policy. companies can make money, investors can make money. nobody on the left is doing
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that. biden is your one hope. but look, this survey happened before all the latest biden stuff, right? i look and see the survey again, i think the number will be higher. ashley: tom, let me bring you in on that. if donald trump doesn't win, surely wall street says well, we will have a democrat, joe biden, who is a lot better so of all the candidates right now, he would be perhaps the least disruptive to -- well, certainly to the market and the economy overall. >> absolutely. and you know, it's very fearful on wall street if biden doesn't throw his hat in the ring. bernie sanders would be very, very disruptive for wall street. something that they can't even think about right now. investors also, aside from the survey for institutional investors, have been very pro-stock market. even in q4 last year, where we had a big market correction, we look at etf flows all the time, there was more money coming into the market than was going out in the fourth quarter, which tells
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me investors continue to be very, very positive on markets going forward even though we are entering the slower growth period. ashley: it's interesting, maybe it's the aocs of this world where they appeal to the younger voter who kind of sees the big evil catalysts who are sucking up all the money and the market is just another extension of that. >> i think that's exactly right. you've got this dynamic where the leading contenders right now are really enamored by what the younger demographic thinks and what the coastal media elite think. they are ready to anoint beto o'rourke or somebody, even buttigieg. they are looking at these candidates saying they are perfect for the instagram age and the market is saying by getting caught up in the instagram age and what appeals to that younger demographic, they will miss entire swaths of the population and have the same problem they had in 2016 where they alienated key constituen constituencies who are simply looking for sane policy.
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ashley: tom, lastly to you, to that point, this is an opportunity. of course we hear socialism, socialism, they point to sweden and wherever, it's so wonderful, isn't this an opportunity to point out how great capitalism can be and how it can take anyone from one place in their life to another, and be very successful in this country and live the american dream? >> well, to your point, we have got a lot of education to do. we have got younger americans that are really getting engaged in what's going on and sure, there's some aspects on the democratic side regarding your fellow humans and americans and what we can do to better their lives, but a lot of that has come from the very big benefits we have had from capitalism and that's helped a huge amount. we have a big obligation to educate younger americans today about the capital markets and what they can do for america in general. ashley: all right. tom and brian, professor, doing
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just -- >> i love what tom is saying there. ashley: yes. teach these kids about capitalism and what it can do for you. both thank you very much. we also need to turn this into a recurring segment. what else can california tax you on? there's a long list. there are now bills making their way through the state capital that could tax you on tires, guns, sugary beverages, over 16 ounces, a whole slew of things. i don't want to take this away from you. no, no, give me the list. liz: the joke has also been what are they going to tax next, the air you breathe? watch this. they will try to tax water, tires, as you point out, pain pills, lawyers, car batteries, ceo pay, on and on and on. the thing with california, when they -- this happened when they wanted to tax capital gains after facebook debuted as an ipo, they pencil in oh, let's spend the money. when the money does not come in the door, they go oh, my god, we don't have the money coming in the door, so they go around
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taxing things like water. it reminds me of the saying, you know, nothing makes more liars out of people than the game of golf and your tax returns. boy, that's the truth. that's truly california. my goodness. that's the thing. these guys, by the way, they are going to tax soda but not chocolate shakes, not candy. you know what i mean? the attitude is taxes do not affect people's behavior. then they pencil in to spend the money and when the money doesn't come in the door they raise taxes elsewhere. ashley: more taxes. liz: yeah. ashley: good stuff. i shoot in the low 70s every time. quick stock check for you. southwest airlines are extending the amount of time boeing seven 37 max will be out of the skies. that stock down 2.5%. they will do this until the first week of june. it's a week longer than originally intended. southwest just under $52. american airlines also grounding the 737 max jets for longer than
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expected, through june. they are hoping by april 24th that they would end that program. they won't. stock down just 1%. take a look at mcdonald's. they have been on a tear, nearing record territory this morning. but they have dropped off into slightly negative mode right now. that stock has been on a tear. mcdonald's at $190. big story of the morning. change at the top of the department of homeland security. nielsen out, mcaleenan in. we are going to be talking to tom homan, former i.c.e. guy. i think he agrees with the president's decision. he will make his case, next. we will also be joined by fox news's griff jenkins. he snagged an interview with the president when he went to the border. we will talk to him about that. first, california governor gavin newsom carrying to counter the president's border visit with a trip to el salvador. the details after this. - did you know that americans that bought gold in 2005
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ashley: where in the world is california governor gavin newsom? if you guessed california, sorry, you are wrong. he's in el salvador, of course, arrived yesterday. he's trying to prove to the el salvador ian people that president trump does not represent all of america. while there he will study up on why exactly people are fleeing the country for the united states. that might be a good place to start. let's get to the crisis on the border. griff jenkins spoke with president trump during the president's visit to the border in calexico, california, and joins us now fresh off his trip. he managed to snag a one-on-one. congratulations to you, griff. you asked the president about a second generation of daca. what did he say? reporter: i did, ashley. how are you doing? mayor newsom or governor newsom will find out in el salvador, if he hasn't already, the loopholes
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that are really the driving factor, the magnet pulling people from the northern triangle, guatemala, el salvador and honduras. many are family units. when i had a moment with president trump i asked him because these numbers are so great, unprecedented with family units and children, they are being released immediately in the rio grande valley sector, they have more than 200% more than they can actually hold so they are released to the public. that is creating what i believe is a second generation of daca kids because they can't be deported. here's what the president said. are we witnessing the second generation of daca? >> no. we are witnessing people that are going to be brought out of the country. the country is full. we have -- our system is full. we can't do it anymore. we go by this horrible florida situation, you know, that decision is a horror show. we have to release after 20 days. we built big detention areas but they fill up immediately.
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there's never been so many people coming up and that's because they are gaming the system, and the system has changed for the worse because of what happened with democrats and what they have done in terms of congress. reporter: ashley, the rub here that no one's talking about but they are going to talk about, that is two laws, the flores settlement which says you can release children after 20 days and later, the law that says children cannot be deported to countries other than mexico and canada. that means all the youngsters under 18 are here to stay. you better believe pro-immigrant legal folks are going to make the case that those children should stay here. they may even have a stronger case than the first generation of daca recipients. ashley: i think you're right about a second generation. also, did you ask the president about joe biden who has been on the attack trail against the president recently? reporter: i did indeed. i'm a reporter from washington, a journalist, so any topic on the table, biden had just
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attacked the president and the president had a very interesting answer. listen. vice president biden seems to be escalating words with you, first on twitter, now he said that you are a tragedy in two acts. your reaction? >> we have the greatest economy in the history of our country. we have the best job numbers we've ever had. more people are working today in the united states than ever before. they are paying less tax than just about ever before. we had the biggest tax cut in the history of our country. the regulations are cut lower than they have ever been. i mean, we have more -- we have done more regulation cutting than any administration, whether it's four years or eight years and this country is doing well. we are rocking. the military is taken care of. the vets are in the best shape they have ever been in. we have choice now for the vets which they have been trying to get as you know for 45 years unsuccessfully. to him, i just, part of the reason i'm here is because of him and president obama. if they did a good job i probably wouldn't be president. what else do you have to say?
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reporter: i thought i would get one answer and instead i got i'm running on my record. ashley: very good. appreciate your efforts. let's stay on the border crisis, if we can. homeland security secretary kirstjen nielsen has resigned. we know that. enter border protection chief kevin mcaleenan to fill her spot. come in, tom homan, former i.c.e. acting director. all sorts of things going on, tom. the president really going hard-line on the border issue with this move. you approve, correct? >> if secretary nielsen is going to resign, i thank her greatly for her service to the country, it's a tough job but if you replace her, kevin mcaleenan is the right man. i know him, we worked shoulder to shoulder during the first crisis in 2014-2015. we talked about how to attack this crisis on the border so kevin has a good understanding of border operations so he can
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hit the ground running day one. ashley: i guess the question for you is if we had been more hard-line before now, could we have prevented the crisis that we have at the border right now? >> well, like griff said, i was listening to him, he's right on every point he made. look, first of all, congress needs to fix the loopholes. they are refusing to fix the loopholes. democratic leadership want the border to be in chaos because they want the president to fail in his number one promise to the american people. i got news for them. the president is not going to fail. he's going to continue taking executive actions when he can because the courts have let him down, congress has failed to legislate so he's going to do what he can operationally with border patrol and i.c.e. and executive action wise to slow this surge down. it's not really a trump loss. this is america's loss. you see what's going on on that border, america needs to be concerned. this isn't just immigrants coming here for a better life. the cartels are controlling everything that's happening from large family groups coming in,
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they are moving drugs and bad people. that's what makes this humanitarian crisis actually a national security crisis. ashley: you were acting director of i.c.e. at one point. it appears that that position could be open. would you be interested in being the director of i.c.e.? >> you know, i served 34 years. biggest honor of my life but been there, done that. there's a lot of qualified people out there that could take the job. i guess the answer to your question is i came back from retirement once for this president. i would never say never. but i certainly do not expect that to be happening any time soon. ashley: we shall see. a very diplomatic answer. tom homan, as always, thank you very much. appreciate it. thank you. all right. the democrats continue to push the collusion narrative. congressman nadler says collusion with russia was, as he says, in plain sight. congressman schiff says he has
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no regrets, apparently. up next, we are talking to madison kashotto, trump 2020 advisory board member.
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ashley: here we go again. sustained calls for deeper investigations into president trump by house democrats after the mueller report came back, well, with no collusion. just listen to what jerry nadler had to say about the attorney general, william barr's take on the mueller report. roll that tape. >> congress has a right to the entire report with no redactions whatsoever. so we can see what's there. we were hearing leaks that barr misrepresented in his so-called summary letter what's in the report, that he sugar-coated it, that he made it look for maifmo favorable for the president than it was. >> he's entitled to defend the administration but he's not entitled to withhold the evidence from congress. there may very well not have been evidence beyond a reasonable doubt which is a very
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high judicial standard of criminal conspiracy with the russians. but there was in plain sight open collusion with the russians. ashley: in plain sight. come in, madison gesiotto, trump 2020 advisory board member. madison, you will be dealing with this for two years because clearly they want to run on this. i thought the mueller report, you know, we all thought that's it, no collusion, time to move on, but apparently not. >> you know, they took a couple weeks to try to regroup and now they're trying to validate their two years of attacks against the president. the false narrative that they pushed both in and outside of congress as a democratic party when it comes to russian collusion from the president of the united states was not only fake but it was also dangerous. it was dangerous for this country. so the mueller report now has been given to attorney general barr. he released the presumptive conclusions on that and the american people i think are very relieved on both sides of the aisle to know we didn't have someone in the white house representing our country that was an agent of a foreign
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government. this should have been great news for everybody. instead, like i said before, they want to validate these attacks so they are going to continue to try to investigate the president. it's very disappointing. it's not what they should be doing. they have already wasted enough taxpayer money on this, almost $30 million, and they are going to lose voters over this ultimately. ashley: what's interesting is basically, the tactic is to accuse -- well, i guess now attorney general william barr that he's trying to sanitize this report, when he does release the full report it's going to be so heavily redacted that we'll never really know what some of these conclusions were that allegedly the attorney general is trying to hide and because it's redacted, they are always going to try and create that doubt. >> yeah, and this is the new false narrative they are going to continue to push. what this does is ultimately take the attention away from the real issues that the american people should be focused on and the mainstream media may not be reporting on. one of those being that congressional investigators have
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uncovered evidence of potential political influence and misconduct in the russian probe. that's what we need to be looking at. that's been a major problem, again, something that went on for two years. we had thousands of subpoenas, tens of thousands of hours, tens of millions of dollars. this is unacceptable. this isn't the way our government should function. ashley: it just doesn't seem to stop. madison, i'm sorry we're short on time today, but appreciate your time spent with us this morning. >> good to be with you. ashley: thank you. more "varney" after this. don't tell your mother. dad, it's fine. we have allstate. and with claimrateguard they won't raise your rates just because of a claim. that's why you're my favorite... i know. are you in good hands?
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ashley: on very eve of israel ace election day, prime minister benjamin netanyahu tweeted this to president trump moments ago. thank you, president trump for your decision to designate
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islamic revolutionary guard as a terrorist organization. once again you are keeping the world safe from iran and aggressions is and terrorism. secretary of state mike pompeo says that the irg is a basically a terrorist organization. liz: if you do business with irg you're bankrolling terror, they run so many sectors of the iranian count economy. they are the number one executor of children. they execute children and teenagers in that country including 12 years old and higher to age 18. they execute a large number of women. they are second to china the capital punishment it doles out. and they brutalize their people. they are completely horrific in their human rights abuses. ashley: long overdue, what you're saying? liz: clearly they're not a normal country at all. ashley: benjamin netanyahu in a very tight race tomorrow to hang on to power in israel. that will be interesting story to follow for tomorrow.
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quick look at the big board for you before we hand it over. we were down almost 200 points. we come back a little bit. we've been in the same range, down 122 points. dow at 26,300. my time is up. david asman in for neil. >> welcome to "cavuto: coast to coast." i'm david asman in for neil cavuto. neil: stocks beginning the week in the red. not all of them. but going dragging the most on the dow. shake-up in homeland security, leading to a shake up on border security. we're awaiting new details how president donald trump and the administration stop the surge of illegals at the southern border

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