tv Varney Company FOX Business June 4, 2019 9:00am-12:00pm EDT
the president is saying. maria: we are awaiting theresa may and president trump. i want to thank this fantastic panel this morning. see you again tomorrow. i will toss it to stuart varney and "varney & company" as they pick it up from here. stu? stuart: good morning, maria. good morning, everyone. moments from now, president trump meets the media in london. watch out. brexit, climate change, even boris johnson are likely to come up. it's all contentious stuff. our president will be standing next to theresa may with whom he's had a contentious relationship. he's standing in front of the british and american press corps which remain hostile. when it starts, momentarily, we will take you right to it. now look at this. i'm going to call this something of a market rebound. big drop yesterday but we are expecting big news coming from the federal reserve in about one hour. don't know what it is but it's likely to be about interest rates. we are going to be up over 100, nearly 200 points on the dow.
the yield on the ten-year treasury, talking about interest rates, still way down there, 2.12%. back to the market for a second. because you've got all eyes today on three huge technology stocks. google, facebook, amazon. the government is investigating big tech to see if they have abused their enormous power. that is a big deal. huge declines yesterday. here's where they are this morning. amazon back by a half percent, facebook is actually down some more. alphabet, up three bucks. that's it. yes, we are waiting for president trump and theresa may's news conference, expected to start at any moment. joining us, james carafano, d.r. barton, lawrence jones, susan li and ashley webster. i'm expecting a highly contentious news conference. you? >> i don't know. i feel like i'm sitting at the thrilla in manila.
look, the president i think has actually been very, very disciplined and focused on this trip on the key issues, on brexit, on the trade deal and on the big foreign policy issues, particularly iran and china, and i think he's going to come through for us and really hammer that home here. stuart: okay. lawrence, you're with me, sitting right next to me. careful what you say. what are you going to say? >> i believe the president is going to be measured but there's also, you know, when it comes to the president because of the protests that have been in london, don't expect the president to shy away from his positions because of that relationship that has been antagonist antagonistic. when it comes to theresa may, don't expect as much respect for her because she's a lame duck. he will probably give her a little praise, then move on to what his position is when it comes to brexit. stuart: it's going to be good stuff. >> it's going to be good tv. stuart: i want to talk to ashley for a moment about these demonstrations. they are supposed to be huge. ashley: they were talking about quarter of a million. i saw 10,000 to 12,000 from
trafalgar square. it's been a lousy day. this is a group -- groups put together loosely, anti-trump, climate change, all put together. the president will be able to hear them. it's been relatively peaceful. there was a small scuffle and there you can see mr. trump and mrs. may heading to the press conference. stuart: it's being held in ten downing street. ashley: actually in the foreign office across the street. stuart: got that. they just walked in the door. momentarily they will be walking towards the two podiums which will be erected there and they will get on with what promises to be quite a press conference. i can't wait. ashley: i think the president will be talking about the need for a big deal with the uk, trade deal, once they get out of the european union and that will be a big thing. the question he will be asked i'm sure afterwards is who would you like to see lead the conservative party and brexit, how would you handle that.
stuart: before it starts, look at the bottom right-hand corner of the screen. the dow is going to be up nearly 200 points at the opening bell. d.r., you are our market guy at this hour. i think that's because interest rate cuts are expected. >> i believe you are spot-on. one of the fed's representatives yesterday telegraphed that for us. we also have lots of things going on, some little snippets out of china where they said, they came out about 7:00 this morning where they said they see a path forward. so that bounced the market for about 50 dow points when it happened. we have had some interesting things going on. i think the big one for right now is waiting for the fed meeting. stuart: now, we get the announcement, formal announcement from the federal reserve, just before 10:00 eastern time this morning. it's within the hour. we are expecting an announcement on interest rates.
the federal reserve -- susan: the reversal of sentiment was the biggest on friday since brexit a few years ago. this is because people are concerned the trade battles will eventually bite into growth. two weeks ago, jpmorgan thought they were going to raise interest rates, maybe next year. they have cut that. they are expecting two interest rate cuts this year. also, barclays is expecting 50 basis points to be cut in the fall, then another 25 at the end of this year. i guess sentiment has changed in a hurry. stuart: i think so. that would help the market. the reason it's changed is because we have clear evidence the trade fights around the world are hurting everybody's economy, america's included. lawrence, you and i were talking a moment ago. heaven forbid we have a downturn in our economy right before the election next year, because of the trade fights. >> it could cost the president the next election. when you look at china right now, they are not afraid at all. they play the long game, they know it can potentially affect the president of the united states and are willing to see
this through. so the president has a decision to make, but he's too far in. i don't see him backing away from this trade war right now. so there's a risk associated with this, as i always said from the very beginning, that if it starts to affect the american economy, if it starts to affect the businesses back here at home, it can cost the president. right now, it doesn't look good for the president. stuart: okay. well, we heard that from you some time ago, actually. prescient in your comments, you were. okay. what we're looking at now, first lady of course being led into, i think that would be the room where the press conference is going to be held or certainly close to it. we have already seen the president and prime minister theresa may walk into the foreign office building. ashley: foreign commission office. stuart: for those of you who know london, across the street from ten downing street, that's where the news conference is going to be held. that is where the first lady has just taken her seat. i think everything is ready.
momentarily the two leaders will emerge, walk in front of the podium and get things going. now, i don't know the structure of this press conference. ashley: i think they will both make a statement, then open it up to questions. stuart: how many questions? will it be two from each? ashley: we don't know. stuart: i certainly hope not. because there's a lot of stuff to go at. >> it's a big moment because again, we haven't seen the entire trump family together for an event like this. when you see tiffany trump, trump's son don jr., eric and ivanka, this is a big moment for the president. stuart: they are walking towards the podium as we speak. the president and prime minister. we shall now listen. >> this week, we commemorate the extraordinary courage and sacrifice of those who gave
their lives for our liberty on d-day, 75 years ago. as leaders prepare to gather here from across the world, it is fitting that we begin with a celebration of the special relationship between the united kingdom and the united states, enduring partners who stood side by side on that historic day and every day since. for generations at the heart of the trans-atlantic alliance, there's been our shared democratic values, our common interests and our commitment to justice. it is that unity of purpose that will preserve the deep-rooted ties between our people, and yu underpin our nation's security and prosperity for the next 75 years and beyond. so i am very pleased to welcome the president of the united states of america on this state visit to the united kingdom. for the past two and a half years, the president and i have
had the duty and privilege of being the latest guardians of this precious and profound friendship between our countries. as with our predecessors, when we have faced threats to the security of our citizens and our allies, we have stood together and acted together. when russia used a deadly nerve agent on the streets of our country, alongside the uk's expulsion, the president expelled 60 russian intelligence officers, the largest contribution towards an unprecedented global response. and in syria, when innocent men, women and children were victims of a barbaric chemical weapons attack, britain and america, along with france, carried out targeted strikes against the regime. since we spoke about nato during my first visit to the white house, we have maintained our support for this crucial alliance. thanks in part to your clear message on burden sharing, donald, we have seen members pledge another $100 billion,
increasing their contributions to our shared security, and i'm pleased to announce that nato will soon be able to call on the uk's queen elizabeth class aircraft carriers and f-35 fighter jets to help tackle threats around the world. today, we have discussed again the new and evolving challenges to our security, our values and our way of life. we share the same view about their origin and our objectives in meeting them. but, like prime ministers and presidents before us and no doubt those that will come after, we can also differ sometimes on how to confront the challenges we face. i have always talked openly with you, donald, when we have taken a different approach and you have done the same with me. i have always believed that cooperation and compromise are the basis of strong alliances and nowhere is this more true than in the special relationship. today, we have discussed again the importance of our two nations working together to address iran's destabilizing activity in the region and to
ensure tehran cannot acquire a nuclear weapon. although we differ on the means of achieving that, as i have said before, the uk continues to stand by the nuclear deal. it is clear that we both want to reach the same goal. it is important that iran meets its obligations and we do everything to avoid escalation which is in no one's interest. recognizing our nations are safer and more prosperous when we work together on the biggest challenges of our time, i also set out the uk's approach to tackling climate change and our continued support for the paris agreement. and we also spoke about china, recognizing its economic significance and that we cannot ignore action that threatens our shared interests or values. as we have deepened our cooperation on security including our joint military operations, and our unparalleled intelligence sharing, so our economies, too, are ever more tightly bound together. every morning, one million americans get up and go to work for british companies in america
and one million britons do the same for american companies here. our trading relationship is worth over 190 billion pounds a year and we are the largest investors in each other's economies with mutual investments valued at as much as $1 trillion. mr. president, you and i agreed the first time we met that we should aim for an ambitious free trade agreement when the uk leaves the eu, and more positive discussions today, i know we both remain committed to this. i'm also sure that our economic relationship will only grow broader and deeper, building on the conversations we had and the ideas we heard from uk and u.s. businesses when we met them earlier today. tomorrow, we will sit down in portsmouth with our fellow leaders to reaffirm the enduring importance of the western alliance and the shared values that underpin it. and as we look to the future, in the years and in the generations ahead, we will continue to work together to preserve the alliance that is the bedrock of
our shared prosperity and security, just as it was on the beaches of normandy 75 years ago. mr. president. >> well, thank you, prime minister may. melania and i are honored to return to london as our nations commemorate the 75th anniversary of d-day and world war ii. we want to thank her majesty the queen, who i had a lovely dinner with last night, a fantastic person, fantastic woman, for so graciously inviting us to this state visit. it was very, very special. our thanks as well to prime minister and mr. may for the warm welcome they have given the first lady and me, as we remember the heroes who laid down their lives to rescue civilization itself on june 6th,
1944. tens of thousands of young warriors left these shores by the sea and air to begin the invasion of normandy and the liberation of europe and the brutal nazi occupation. it was a liberation like few people have seen before. among them were more than 130,000 american and british brothers in arms. through their valor and sacrifice, they secured our homelands and saved freedom for the world. tomorrow, prime minister may and i will attend a commemoration ceremony in portsmouth, one of the key embarkation points for the invasion. more than one and a half million american service members were stationed right here in england in advance of the landings that summer. the bonds of friendship forged here and sealed in blood on those hallowed beaches will
endure forever. our special relationship is grounded in common history, values, customs, culture, language and laws. our people believe in freedom and independence as a sacred birthright and cherished inheritance worth defending at any cost. as the prime minister and i discussed in our meetings today and yesterday, the united states and the united kingdom share many goals and priorities around the world. i want to thank the people of the united kingdom for their service and partnership in our campaign to defeat isis. as we announced a few months ago, isis's territorial caliphate in syria and iraq has been completely obliterated, defeated. the united kingdom is also a key partner in nato. the prime minister and i agree that our nato allies must increase their defense spending. we both have been working very
hard toward that end. and we are very current and some of them are not. we can't allow that to happen but i appreciate everything you've done in that regard. we expect a growing number of nations to meet the minimum 2% of gdp requirement to address today's challenges, all members of the alliance must fulfill their obligations. they have no choice. they must fulfill their obligation. among the pressing threats facing our nations is the development and spread of nuclear weapons. perhaps that's our greatest threat. the united states and the united kingdom are determined to ensure that iran never develops nuclear weapons, and stops supporting and engaging in terrorism. and i believe that will happen. in protecting our nations, we also know that the border security is national security. today, the prime minister and i discussed our thriving economic
relationship, both countries are doing very well, and participated in a roundtable with industry and business leaders. i can say probably the biggest business leaders anywhere in the world. our nations have more than $1 trillion invested in each other's economics. the united kingdom is america's largest foreign investor, and our largest european export market. that's a lot of importance. as the uk makes preparations to exit the european union, the united states is committed to a phenomenal trade deal between the u.s. and the uk. there is tremendous potential in that trade deal. i say probably two and even three times of what we're doing right now. tremendous potential. 75 years ago this thursday, courageous americans and british patriots set out from this island toward history's most important battle. they stormed forward out of
ships and airplanes, risking everything to defend our people and to ensure that the united states and britain would forever remain sovereign and forever remain free. following this press conference, prime minister may, mr. may, the first lady, my family and i will visit the legendary churchill war rooms beneath the streets of london. i look forward to that. in his famous speech on this day in june, 1940, prime minister churchill urged his countrymen to defend their island whatever the cost may be. as we mark this solemn anniversary of d-day, we remember that the defense of our nations does not begin on the battlefield, but within the heart of every patriot. today, let us renew our pledge engraved at the american
cemetery in normandy and inscribed by president dwight eisenhower in st. paul's cathedral right here in london that the cause for which they died shall live. prime minister may, it's been a true honor. i have greatly enjoyed working with you. you are a tremendous professional and a person that loves your country dearly. thank you very much. really an honor. thank you for the invitation to memorialize our fallen heroes and for your partnership in protecting and advancing the extraordinary alliance between the american and the british people. it's the greatest alliance the world has ever known. thank you, prime minister. thank you. thank you very much. [ applause ] >> thank you. now, we are going to take two questions from the uk media and
two questions from the american media. i will start with beth rigby. >> thank you. thank you, prime minister, president trump. for you, president trump, as you hold talks with the current prime minister, the leader of her majesty's opposition has been addressing a protest rally against your visit in trafalgar square. he says he's disappointed you attacked the london mayor and he criticized your record on refugees. what do you have to say to him, and is this man someone you could do a trade deal with, and to you, prime minister, do you think that sadiq khan is a stone cold loser? thank you. >> you are talking about the mayor of london. is that who you said, yes? i think he's been a not very good mayor, from what i understand. he's done a poor job. crime is up, lot of problems, and i don't think he should be criticizing a representative of
the united states that can do so much good for the united kingdom. we talked about it before. he should be positive, not negative. he's a negative force, not a positive force. and if you look at what he said, he hurts the people of this great country. and i think he should actually focus on his job. it would be a lot better if he did that. he could straighten out some of the problems he has and probably some of the problems that he's caused. thank you. [ inaudible question ] >> he wanted to meet with me and i told him no. yes. well, i don't know jeremy corbyn. never met him. never spoke to him. he wanted to meet today and tomorrow and i decided that i would not do that. i think that he is, from where i come from, somewhat of a negative force. i think that people should look
to do things correctly as opposed to criticize. i really don't like critics as much as i like and respect people that get things done. so i have decided not to meet. as far as the protests, i have to tell you, because i commented on it yesterday. we left the prime minister, the queen, the royal family, there were thousands of people on the streets cheering, and even coming over today, there were thousands of people cheering and then i heard that there were protests. i said where are the protests? i don't see any protests. i did see a small protest today when i came, very small, so a lot of it is fake news, i hate to say. but you saw the people waving the american flag, waving your flag, it was tremendous spirit and love. there was great love. it was an alliance. and i didn't see the protesters until just a little while ago and it was a very, very small group of people put in for political reasons. so it was fake news. thank you.
>> i would say fwoet tto both tr of london and to jeremy corbyn, the discussions we have had today are about the future of this important relationship between the u.s. and the uk. as the president described it, the greatest alliance the world has seen. it is this deep, special relationship and partnership between the united states and the united kingdom that ensures our safety and security and the safety and security of others around the world, too. and it is this relationship that helps to ensure there are jobs that employ people here in the uk and in the united states, that underpins our prosperity and our future. that is a relationship we should cherish. it is a relationship we should build on. it is a relationship we should be proud of. >> very big, this really is a very big and important alliance, and i think people should act positively toward it because it means so much for both countries. means so much. and it's been so good. go ahead, steve.
reporter: thank you, mr. president. what is your current view on brexit, sir? should britain leave the european union if there is no agreement by october 31st? and for the prime minister, what will be the ramifications for the uk if there is not a deal? >> well, i don't like to take positions in things that i'm not, you know, really -- i understand the issue very well, i really predicted what was going to happen. some of you remember that prediction. it was a strong prediction, a development we were opening the day before it happened and i thought it was going to happen because of immigration more than anything else but probably it happens for a lot of reasons, but i would say yeah, i think that it will happen and it probably should happen. this is a great, great country and it wants its own identity, it wants to have its own borders, it wants to run its own affairs. this is a very, very special place and i think it deserves a special place.
i thought maybe for that reason, and for others, but that reason, it was going to happen. yeah, i think it will happen and i believe the prime minister's brought it to a very good point where something will take place in the not-too-distant future. i think she's done a very good job. i believe it would be good for the country, yes. >> from my point of view, i believe it is important for us to deliver brexit. we gave that choice to the british people. parliament overwhelmingly gave the choice to the british people which is now deliver on that choice. i continue to believe that actually it's in the best interests of the uk to leave the european union in an orderly way with a deal. i think we have a good deal. sadly, the labour party and other mps have so far stopped us from delivering brexit in that deal. but we will -- but obviously this is an issue that is going to continue here in the uk. i think the important thing is we deliver brexit and once we are out of the european union, we will be able to do what we have been talking about today and develop not just a free trade agreement but a broader
economic partnership into the future. reporter: mr. president, are you prepared to impose limits on intelligence sharing with britain if they do not put in place some restrictions on huawei? >> no, because we are going to have absolutely an agreement on huawei and everything else. we have an incredible intelligence relationship and we will be able to work out any differences. i think we're not going to -- we did discuss it. i see absolutely no limitations. we have never had limitations. this is a truly great ally and partner and we'll have no problem with that. okay? reporter: mr. president, do you agree with your ambassador that the entire economy needs to be on the table in a future trade talk, trade deal, including the mhs, and prime minister, are you prepared to take his word and stick around until the trade deal is done? >> i think we are going to have
a great trade deal, yes. i think we are going to have a great and very comprehensive trade deal. i can't hear him. look, i think everything with a trade deal is on the table. when you are dealing on trade, everything is on the table. so nhs or anything else. or a lot more than that. everything will be on the table, absolutely. okay? >> the point about making trade deals is, of course, that both sides negotiate and come to an agreement about what should or should not be in that trade deal for the future. as regards your second question, nice try, but no. look, i'm a woman of my word. mr. president, would you like to? >> john, please. reporter: mr. president, thank you. mr. president, domestically, in recent days, mexico has stepped
up apprehensions and deportations of central american migrants. this could possibly be in response to your threat of tariffs. has mexico -- has mexico done enough to avoid tariffs which will be imposed in some six days from now? >> no. we haven't started yet. reporter: but the threat is out there. >> yeah, the threat is out there but we haven't really started yet. no, this will take effect next week at 5%. reporter: what do you think of republicans who say that they may take action to block you imposing those tariffs? >> i don't think they will do that. i think if they do, it's foolish. there's nothing more important than borders. i have had tremendous republican support. i have a 90% -- 94% approval rating as of this morning in the republican party. that's an all-time record. can you believe that? isn't that something. i love records. but we have a 94% approval rating in the republican party. i want to see security at our border. i'm going to see great trade. i'm going to see a lot of things happening and that is happening. as you know, mexico called, they
want to meet, they are going to meet on wednesday. secretary pompeo is going to be at the meeting along with a few others that are very good at this and we are going to see if we can do something, but i think it's more likely that the tariffs go on and we will probably be talking during the time that the tariffs are on and they are going to be paid. and if they don't step up and give us security for our nation, look, millions of people are flowing through mexico. that's unacceptable. millions and millions of people are coming right through mexico. it's a 2,000 mile journey and they are coming up to our border, and our border patrol which is incredible, they are apprehending them but our laws are bad because the democrats don't want to pass laws. they could be passed in 15 minutes, they could be passed quickly, in one day it could change, but even beyond the laws, mexico shouldn't allow millions of people to try and enter our country and they could stop it very quickly. and i think they will. and if they won't, we are going
to put tariffs on. and every month those tariffs go from 5% to 10% to 15% to 20% and then to 25%, and what will happen then is all of those companies that have left our country and gone to mexico are going to be coming back to us. and that's okay. that's okay. but i think mexico will step up and do what they should have done and i don't want to hear that mexico is run by the cartels and the drug lords and the coyotes. i don't want to hear about that. lot of people are saying that. mexico has something to prove. but i don't want to hear that they're run by the cartels. you understand, you report on it all the time, a lot of people do. that would be a terrible thing. mexico should step up and stop this onslaught, this invasion into our country, john. reporter: prime minister may, you tried three times to get a deal on brexit. at this point, do you believe that a deal on brexit is possible, or is this a gordian
knot? president trump says you didn't take his advice in terms of negotiation. should you have? would that have made a difference? president trump, if i could ask a follow-up, you had a conversation with boris johnson. could we ask what you spoke about and will you meet with michael goeth today? >> first of all, on the first issue, as i said in answer to an earlier question, i still believe, i personally believe that it is in the best interest of the uk to leave the european union with a deal. i believe there is a good deal on the table. obviously it will be for whoever succeeds me as prime minister to take this issue forward. what is paramount i believe is delivering on brexit for the british people. and i seem to remember the president suggesting that i sued the european union which we didn't do. we went into negotiations and we came out with a good deal. >> i would have sued but that's okay. i would have sued and settled maybe but you never know.
she's probably a better negotiator than i am. but you know what, she has got it in a sense, john. that deal is teed up. i think that deal is really teed up. i think they have to do something. perhaps you won't be given the credit that you deserve if they do something but i think you deserve a lot of credit. i really do. i think you deserve a lot of credit. okay. yes? [ inaudible question ] >> so i know boris. i like him. i've liked him for a long time. i think he would do a very good job. i know jeremy. i think he'd do a very good job. i don't know michael. but would he do a good job? okay? good. thank you very much, everybody. thank you. thank you very much. stuart: all right. it was not as contentious as i and my colleagues thought it would be but there was some news
right there. i want to zero right in on what the president had to say in answer to a question of fox news' john roberts. he asked him have the mexicans done enough to prevent the imposition of tariffs next week. the president's reply, no, it's not even started yet. he went on to say he insisted that mexico should not allow millions of people into our country, he described it as an invasion. he thinks they will step up and do something about it and unless they do, those tariffs will be imposed. i thought that would move the market. ashley: he didn't really answer the question because john roberts was saying look, it appears they are taking steps, stopping the onslaught, arresting more migrants, stopping the flow, but he said no, they're still due to go into effect next week. >> it's very clear the president was very frustrated. he kept saying the cartel does not run mexico. when we all know that actually, they do run mexico. what the president was actually
saying is that he's tired of the excuses from mexico. get ahold of your government. so as he said from the very beginning, border security is national security. stuart: we have to look at the market because it's up 250 points. obviously nothing negative for money was announced at that press conference. we are up 256, over 1%. the nasdaq up over 1% as well. susan? susan: i would say trade was actually very positive in terms of the bilateral trade agreements the u.s. and uk could sign. president trump says it could be two to three times what we are currently doing at this point. a lot of pleasantries exchanged between prime minister theresa may and president trump as well. she is leaving office on this friday and he has basically said she deserves a lot of credit in terms of the work she's done on brexit. stuart: james carafano also observing what's been going on. james, the president was talking about a trade deal, united states and great britain. he said it could be a phenomenal trade deal with tremendous potential and as susan said,
could be two or three times the level of trade that we've got now. is that helping the market and is that what we were expecting? >> yeah. let's roll back the tape where i was right, right? so this is exactly what i said they were going to do. they talked about trade, they talked about brexit, and they brought up both iran and china. so the president has been very, very good about pointing out these issues. i want to go back to the mexico thing because i think it's very important to go back and look at the executive order. there's two very important things in that. one is the incremental raising of the tariffs and the other is there is nothing in the executive order that says exactly what the deliverable is for mexico to get that. that's important. that was clearly designed, as was the president's statement today, that this is, i think, about the third or fourth time that he's been negotiating it and so this is a negotiating process and i think the center of gravity is the next week or so, and we'll see that the
mexicans have come to town to deal but they have come to town, they don't know what trump wants and what will make him happy. i don't even think his own administration knows that. so the next couple of days are going to be super interesting on that front. stuart: yes, they are. >> he really teed it up today. he teed it up at this press conference. stuart: he put the pressure on the mexicans. ashley: he said the 5% tariffs would go into effect on june 10th. then less than a minute later said more than likely they will be imposed, negotiations will continue. stuart: wait a second. i would have thought when the president comes out again and says we will impose those tariffs next week on mexico, they have got to do something. he's putting the pressure on. i would have thought that would have been taken negatively by the market and it was not. market watcher d.r., what have you got? >> i believe that what we really saw right after this, because we were watching the market, pre-market all the way through, at the moment the press conference ended and traders and
investors knew there was going to be no new uncertainty thrown out, none of the contentiousness we thought might be there, there was a little bit of a relief pop, about 50 points in the dow when that happened. i think that's largely because he didn't bring anything new. he reiterated old stuff. didn't bring anything new to the table. >> i don't think it's just that he's not going to bring anything new. i think many people believe that mexico will eventually buckle unlike china. china's going to go through the entire time. they want to punish the president in the next election. they are willing to stay with this. but mexico will buckle. stuart: back to london. edward lawrence was at the news conference. i believe he's still in the room. what do you have for us? reporter: i'm still in the room. n you know what really struck me? what really struck me was the answer from the prime minister. she kind of got heated a little when talking about the relationship between the u.s. and united kingdom. she raised her voice a little bit talking about how good that relationship is and the relationship could be very good with a trade deal coming between the u.s. and the united kingdom.
that struck me the most in all this. you heard a wide range of topics that were discussed here. this is a very ornate room. you want a little color from inside this room, it's like something out of the 17th century. it's called dunbar court within the foreign and commonwealth office building. both the president and prime minister you saw made the grand entrance. his family is also here in the room. all of the kids are here as well as cabinet members. secretary mike pompeo, secretary of state. treasury secretary mnuchin. they all walked in with an escort, sort of a grand entrance to this room through those same doors you saw the president and prime minister come through. but it was a very interesting debate about trade going back and forth. i know that the u.s. has been negotiating with the united kingdom for about a year or so with a committee because they can't officially negotiate until eu leaves -- until the uk leaves the eu. they are very close, i'm hearing, to a deal. the president indicating that he would like to see that deal
announced in several weeks after brexit actually happens. so this is a very interesting day here today. a lot of topics covered but the big one, it looks like trade. back to you. stuart: thanks, edward. now, we have got the market, i say the market, the dow industrials as we speak up 235 points. a very solid gain. i do want to remind you that about 20 minutes from now, we will get an announcement from the federal reserve and it will be i think about interest rates. david barnson, market watcher, joins us now. david, i think this market rally is because of expectations about interest rates at 10:00 this morning from the fed. am i right? >> i don't think that you are, but that is because you are expecting there will be a rate cut, then i expect the market would be up a lot more than 235 points. we'll see. stuart: so why is the market up 239 points? why is it? >> because there's up and down volatility.
up 200 after being down 300, 400 in the last couple days. that's what we're going to experience until we're on the other side of this trade war. there's enough uncertainty baked in that it naturally increases market volatility. stuart: okay. i want to go back to that press conference. what struck me was how pleasant it was. there were so many smiles. prime minister may referred to donald twice. that breaks protocol. ashley: yes. stuart: he did not refer to her as theresa. prime minister may, rather formal. but he broke into a smile on many occasions. he was given the opportunity to go after the mayor of london, who had gone after him, or jeremy corbyn who is also speaking in the middle of london against president trump and his whole visit. he was offered the opportunity to go after these two guys. didn't take it. walked away from it. ashley: we were speculating, he looked a little tired. he's had a heck of a schedule. he was very measured, i thought.
answered the questions, he was not full-blown donald trump as we have known him. >> until he started to talk about nato. every time he's on the national theme, he wants them to give 2% of gdp, okay? he made it very clear he's expecting all the rest of these countries to give their fair share. susan: prime minister may says she understands it. there is burden sharing to be contributed by the uk. as they both said, this is the greatest alliance the world has ever known in history. stuart: quite a moment, wasn't it. kumbaya many times over. susan: wouldn't you think the message is to protect the world oshg order, whether it's the united nations or nato. i feel like they are on the same side. stuart: correct. i think the prime minister was very clear how she really wants a tremendous trade deal.
ashley: of course. stuart: with america. really, that was president trump's message. that was the deal he went over there for, get a trade deal. when britain gets out of europe, and they will be getting out of europe, here we come, america to the rescue. huge trade deal, two or three times the current level of trade, phenomenal trade deal is what he said with tremendous potential. that's what resonated throughout this whole press conference. susan: an agreement on iran, on huawei. >> he gave some cover. let's be clear. she's a lame duck, okay? she's a lame duck. she could not get the deal done. but as the president said multiple times, she teed it up. that is unlike the president because he calls failures as failures but because she -- let's not kid ourselves. they have had a tumultuous relationship in the past. so to see this unity even after she failed at getting this agreement, the president provided her a lot of cover. he really did. stuart: he said the prime minister has done a very good job. >> yes.
stuart: maybe he would have been a better negotiator, i think he said that. but she had teed up britain's exit from europe. it's not there yet. that was kumbaya between the prime minister and donald trump. >> also, i also think there was a lot of humility coming from theresa may as well. going into this, the president could have canceled this trip and said you know, i don't want to meet with the prime minister, she's a lame duck, let's move on but he was very gracious to her. so i think she appreciated that. stuart: what do you say, james? come back in again, please. i'm saying it was rather pleasant. >> i thought he was channeling luke skywalker there. he's only doing positive force, not negative force. so the big thing that nobody has mentioned yet is this is the first time in ten years where we have had an american president be so effusive about the special
relationship. i think that's really important. it's not just economic. i agree with you, i think the trade deal would be a phenomenal boost in our economic relationship and it would really, really make this special relationship really special but also on foreign policy, they did mention the agreement on nato, different approaches to iran. they did mention china. i think the next conservative leader is going to be much more like-minded with the president on foreign policy and that one-two punch of foreign and economic policy, that is really going to make the united states a much more powerful force in europe and it's really going to make the special relationship elevated both in american policy and in the impact on the trans-atlantic community as well. this could be a real game changer. ashley: as long as conservatives stay in power. stuart: as james said, that is a real game changer. ashley: yes. stuart: to reopen the special relationship, get it back together again and get in there with a phenomenal trade deal, that is a very big deal indeed. that really is a completely different approach to the
relationship that we have seen for the last ten years. it's as good as that. ashley: let's not forget president obama went over, was not a fan of the uk and its history and said you are going to the back of the queue if you get out of the eu. we have a president now with a completely different point of view. as you saw today. >> i think the markets have agreed with that, ash, in this way. we look at, we watch things happen in brexit, we keep an eye on, as traders, what happened with the british pound. and it has been on a terrible downslide for three weeks upon trump's visit, it got a bounce and at the end of the press conference today, it's gotten another nice little bounce. it's very supportive. stuart: we are up 250 points following a presidential press conference in britain with the prime minister, theresa may. ashley: now we wait for the fed. which could also have a big impact. stuart: 15 minutes from now, we are going to get word from the fed, i do believe it's about interest rates. i don't know what they are going
to announce. if it's the federal reserve, there's a big announcement, it's got to include interest rates, does it not? susan: especially with the commentary from fed officials like clarida, the vice chairman this week said he would rather see a cut than a hike and also with bullard, saying with the inverted yield curve maybe it is time to cut interest rates as many people have priced in. stuart: steady as she goes. up 230 points. 14 minutes to go before we hear from the federal reserve. who knows what they are going to say. say that again. i'm sorry. it's 9:55 is the official announcement. so eight and a half minutes away. susan: five minutes before the top of the hour. stuart: i didn't know you had to do math to be a fox business anchor but apparently you do. ashley: we're in trouble. stuart: still nine minutes to go. okay. can you just put up on the screen, please, i want the big techs. i want to see amazon, i want to see google and i want to see facebook. show them to me, please.
i ask this because yesterday, they took enormous hits. all of them down in percentage terms. amazon is down a bit more today, $1691 is the price there. facebook barely moving, a 40 cent gain. that's all you've got. $164. google has come back to the tune of five bucks but they have had an enormous -- susan: they hit bear market territory yesterday, meaning down 20% from recent peaks because of reports of antitrust and reports the department of justice opened these investigations to maybe, maybe rein in some of the big tech and some of the businesses they have run and the power that they oversee. now, apple's ceo, tim cook, was on cbs this morning in an interview and said the u.s. scrutiny to him is fair but rejects that apple has a monopoly. apple is caught up in this with reuters sending out a headline in the afternoon. however, that stock moved down, down 2%, bounced back up toward
the close because it's a different business model. reuters is separate from the "wall street journal" reporting. i think there's an understanding there. stuart: point to be made here is that microsoft, i do own a little of it, but microsoft is bouncing up a little bit here. they were not as badly affected by all this talk of antitrust action against big tech. nowhere near as badly hit as amazon, facebook and who is the other, google. william, no bounceback for amazon, facebook, google. no bounce there. >> you just mentioned one of the keys, stuart. as you say, you have owned a little bit of it. if you owned a little bit of it in the '90s, you may remember that they went through one of the original big tech antitrust suits and they underperformed for several years as they went through that. now, google also went through this when they were still google before alphabet in the early -- around 2010 and didn't get resolved until 2013, and they
didn't suffer as badly stock-wise as microsoft did before, and they only had to make minor concessions. it's shaping up and many analysts are digging into this, this is shaping up that it could be a stronger headwind for a period of time for these big techs which is why microsoft is outperforming right now. >> they are not -- stuart: it is google, it's facebook and it is amazon in the crosshairs. if the government comes after you, on any grounds, makes any charge against you, you've got a long-running problem. >> it takes a lot of your company's ram, a lot of your resources to be able to deal with that, where you can't work on other expansion ideas. susan: microsoft, which went through this experience for two to three years, fighting the breakup, the antitrust suits against the government for years. stuart: they were held back for years. susan: that's why the stock price is in stagnation during those years. stuart: that's when i bought it. i do want to go back to the press conference.
i'm sorry. just an extraordinary event. as james said, it is a game changer. i want to ask lawrence, still sitting with me, hanging in there, lad, thank you very much indeed, were you happy with the performance of our president today in britain? >> i think the president was well measured on the national stage. i really expected the president to come out swinging, especially as i said, after the protesters and all that but the president essentially said it was a small crowd, okay, that he felt like the british people loved him, that it was a unifying front when it came -- and as you saw, the president, he's all about the word reciprocal. when he got to the press conference it was about a unifying front when it came to him and the lame duck prime minister, because he felt the energy there. so he was very presidential. he also didn't take the bait when it came to the london mayor. because he had an opportunity to swing at him because the london mayor swung at him first but he said you know, i don't think he's a unifying person. i think he's a very divisive figure. i'm trying to come here, talk about business with the uk, talk
about our partnership and this guy is criticizing me. i don't think he should be doing that. very well measured. ashley: a negative force. stuart: keep going back to that question. it was one of the first questions asked about what do you think of the mayor of london. ashley: we all sat back and waited. stuart: what do you think about jeremy corbyn, the socialist leader in the middle of london criticizing the president. what do you think of all of this. he did not take the bait. he simply said oh, when i walked out of the meetings with prime minister may, all i heard was cheers. i saw american flags. i saw a few of them this morning but really, a few thousand people. not that bad. >> normally trump, when he hears about this stuff, they get him all flustered and he attacks. stuart: goes for the jugular. >> short term of the british
upper lip. susan: i want to note the symbolism. right now trump and his family are off to the churchill war room. as a gift, this is where the symbolic nature of the closeness of the relationship comes in, theresa may is set to present president trump with winston churchill's personal draft of the atlantic charter which is a foundational text of the u.n. as a gift. think about that symbolism of president trump to winston churchill and the protection of that special alliance across the atlantic and again, protecting that world order with nato. stuart: president obama was none too keen on winston churchill when he became president. we heard that story. we did. all right. look, let's summarize here. in about two and a half minutes' time, three and a half, i'm trying to do the math, two and a half minutes, okay, we are going to get news from the federal reserve. we can't break this news until 9:55 precisely. when that time hits, we will break the news on the federal reserve. as we walk up to it, the
market's been remarkably consistent. we have had a gain of 200 points plus throughout the morning so far. we have been in business for 22 minutes. now we are up 222, 25,043. why you laughing? my math, is it all wrong or something? ashley: not at all. we are right there with you, as always. stuart: why is this market up 200 points before we hear from the fed? what's the big factor here? was it the press conference? >> there are two factors that helped. one of them, david said it earlier, was just a jgeneral rebound. but the china commerce ministry said we could solve this, we are going to solve this with dialogue and respect were the words they used. the dow jones, 100 points when that crossed the wire. i was on the train watching it hit. that helps. then at the end of the press conference we got another 50-point jump in the dow. if you just watched tick by tick as we are able to do even on our
smartphones now. that's 150 points right there. susan: i think the expectations are we are going to be seeing an interest rate cut. 80 p 80% of the market expects it some point this year, maybe more than that according to barclays, we could be looking at 75 basis points. jpmorgan says 50 basis points could come off interest rates. stuart: look, we have got some positives here. working for and in favor of the markets. we have this possible news, we have news coming up in less than about 50 seconds. we have positive news from china on trade. we have -- well, we had the positive news on a massive trade deal which the president wants to do with the brits when the brits are out of europe. what else do we have going for us? the yield on the ten-year treasury, 2.12. as long as it doesn't keep going down, that's a positive for the markets. if it went up a little bit, you would have a real positive. susan: what goes down, comes back up. is this a bounce back from the 400, 500 point selloff we have
seen over the past week? it could be bargain hunting. stuart: i have an atomic clock in front of me. i know exactly when it's 9:55. at that point when it says 9:55, five seconds away, we will be able to break the news from the federal reserve. three, two, one. jackie deangelis, what have we got? >> good morning, stuart. this is going to move the market. the headline here, fed chair powell saying today that the fed is closely monitoring implications of recent trade developments. we will act as appropriate to sustain the expansion, definitely a dovish tone in that statement. the market is going to key in on that. but chair powell also going to say the proximity of interest rates to the essential lower bound has become the preeminent monetary policy challenge of our time. looking at interest rates, look at the yield on the ten-year note, just around 2% and also looking at the lower bound targets on inflation. so there's two places where the
fed really is focused here and not necessarily meeting its target which implied what susan was saying earlier, that a cut is definitely in the cards here. that's what the market is going to look for. now, the other aspect of this is that the expectation is for two to three cuts this year. i'm not necessarily seeing that in this tone or in this speech that chair powell is giving. stuart: but the expectation for cuts -- >> is there. stuart: that's what's there. so they are monitoring the trade situation. they want to keep the expansion going. >> yes. stuart: that implies interest rate cuts. >> that's what it implies. susan: also trade is a main factor as you heard from jerome powell, the dollar index has fallen because he says they will act as appropriate in the face of trade risk. does that mean there is an extra mandate now on the federal reserve instead of just employment and inflation, is it trade risk and is it market moves, market movements and where stock markets go. stuart: is it the economy? that's what he's talking about. >> monitoring trade. stuart: if it hurts the economy.
susan: still, it's the strongest rate we have seen in 15 years. inflation is nonexistent. i think that's probably the main concern right now. stuart: i'm not a fed watcher, but you are. today you are. he's going to move to keep the expansion going. >> that's what he said. and trade risks. stuart: well, he has been monitoring trade risks. if trade gets in the way of our economy, they are watching it and they will move to keep the expansion going. ashley: high likelihood rates will fall. susan: i think there's a shift in tone here. i think before powell was somewhat more neutral. i see this as moving somewhat more dovish. stuart: okay. look, the market has responded but not vigorously. we are up 250 points. there you have it. back above the 25,000 level. now, the news from the fed has hit. jackie, thank you very much indeed. right there with it. it did not have a profound impact on the stock market. it did not. maybe i'm missing something in what chair powell had to say, but it's not a huge impact.
we are up >> to susan's point, it was priced in. this was a bit, to jackie's point it was a bit bullish as well. a bit bullish, not overwhelmingly so. if any trade trouble slowed the economy down at all, we're willing to act and backstop this expansion. so i think that is a overall positive what market expected coming in. we got a muted move up. stuart: we were expecting this. this is what we were expecting fed chairman powell to say. when he said it didn't -- >> his speech was embargoed. market watchers had it. stuart: we were speculating it is about interest rates, maybe pushing them lower. you can tell from the market itself, there is 80% of expectation of rate cuts this year. that was all baked in. that is why he you didn't get a
huge pop. ashley: like captain obvious, right? things turning south, trade issues start to hurt the economy we will be prepared to cut rates. stuart: ashley, if it is all so built in, so obvious, why are you and i not billionaires? ashley: where do i begin? >> silver lining we also didn't have a sell the news moment. people said that is what we were expecting. we didn't have a sell the news moment. stuart: we're all digesting exactly what the fed said, what the president and prime minister may said. thanks very much for your great coverage. mr. bahnsen, i know we didn't use you very much. we are glad you hung out with us briefly. jackie, fine stuff from the fed. mr. carafano. thank you very much. as you said this, could be a game-changer. we hope it's a game-changer. thank you very much. it is almost. i have the atomic clock. 18 seconds to go, it will be
10:00 on the east coast. we have very busy day for news. start with the money. check the big board. as you heard fed chair jay powell speaking right now. he says the fed is closely monitoring trade impact of issues on the economy and the fed will act appropriate to sustain the expansion. that is the important phrase. we have the market going up. we heard from president trump and britain's prime minister theresa may, a big joint news conference. covered a wide range of topics. both of them are said they are committed to a big trade deal between the united states and britain. they agree iran cannot obtain nuclear weapons. president trump said "brexit" probably will and should happen. the president also said tariffs on mexico will more than likely go into effect next week unless the mexicans do something but negotiations continue. president trump will be on the move throughout the show. you will see it all right here on "varney & company."
big day for politics. ♪ stuart: well, big day for politics and your money, if you've been watching this program. we have it covered for you. we're just about to get some very interesting economic news. i think it is factory orders. ashley: it is. stuart: have we got it yet? ashley: we do. fell down in april, .0.8%. the estimate was down 0.9% f you're looking for a bright line or silver lining but march was also up 1.3%, not the 1.9% previously reported. we have a downgrade from march factory orders and we have the april factory orders down 0.8%. stuart: scott shellady is with us. why don't you deal with the factory order decline here. doesn't seem to be hugely important news item but react to it, please.
>> no. when we start to see more and more of these small little things creep in, stuart, that will make the fed chair nervous. so tying it all together here what we have is an inverted yield curve and because interest rates are higher in the short term than they are in the long term, that is a daily advertisement he got it wrong in december, right? number two, as you mentioned before, $10 trillion that is negatively priced out on the curve around the globe. my question is, why shouldn't it be inverted right? because what we got going on. we have come out because he is worried about inflation, right? he is worried about the recession talk and deflation. he has to show guns are ready. if we talk about recession because of an inverted yield curve which you ask me should be inverted, people will tighten up their pockets, tighten up their budgets, spend less and a self-fulfilling prophecy. he has to guard against that. >> am i right the interpretation of what the federal reserve is
saying we will lower interest rates if there is any threat to the economy from the trade wars? is that pretty much what the fed chair is trying to tell us? >> 100% correct and i also think he is trying to walk back the rate hike in december. he is ready and willing to take that back off the board. that is a large degree why we have this inverted yield curve. why people are chirping about recessions. one thing we can't have happen the deflationary aspect when people stop spending. stuart: i think you were working over there in britain and we were interviewing you from london. your interpretation of what president trump and prime minister may were saying specifically about that enormous, phenomenal trade deal that they will get together on when the brits leave europe. that was music to your ears, wasn't it? >> yeah. you had a guest on earlier, the first time in 10 years we've had real positive talk that way. 100% music to my ears.
stuart, earlier in your show last week, whatever it was, you said you spent time over there recently, yes, in the city of london there was a lot of negativity. i'll tell you that is like president trump trying to hold a rally in new york, chicago, l.a., they will not like him in the big cities. if you move out to the countryside, boy, oh, boy, a ton of people absolutely love him. wish they had a prime minister that said, did what he is doing. i listed some of those things on social media accounts. i'm getting a lot of support from folks back in the uk, boy, oh, boy, he is a such a breath of fresh air. stuart: that is exactly what i heard. as my audience knows, i was back there couple months ago on a i talked to a lot of people. they knew i am on fox, essentially a trump growth program supporter. quite a few people came up to me, said, you know, i wish we had a guy like trump over here. we could use a man who gets things done. i heard a lot of that. that surprised me.
i thought it was universal condemnation of our president. i didn't get it. sounds like it is the same for you? >> yeah. all those folks out there in the shares -- shires, all those counts, they would get knee in elevator or escalator where there wasn't a lot of folks around. it is still around here a lot like 2016. london is very liberal city. hence you have a mayor like sadiq kahn, hence you have a mayor in chicago like rahm emanuel. why they wouldn't like him in chicago, new york, l.a. but you go out into the surrounding counties, where trump gets support from. it is much the same as it was in the states. stuart: the president dealt very well with the critics today. he almost laughed at them, you're of no consequence. the right thing to do. very restrained president trump this morning. scott shellady good stuff indeed. >> appreciate it. stuart: let's stay on trade.
president trump announced on possible tariffs on goods coming here from mexico. come on in, peter morici, former international trade commission chief. good to have you with us. the president was not dramatic, but almost pounding the table that mexico has to do something about that border, if they don't, those tariffs will be imposed. now what do you say to that? that was a pretty strong stand. >> there is two aspects of this. in the short term, the china thing, tariffs don't mean nearly what the press is saying. with regard to mexico they do. the supply chains are so integrated, goods go back and forth some times. a car with parts goes back and forth four times this could have doctor cronian effects. that is one level. fed chairman moved way he has. didn't make a mistake in december, now he recognized changed conditions. at another level this is very harmful to our brand. what does a free trade agreement
with the united states, if for reasons foreign policy, immigration policy we'll pull the rug out of a free trade deal we have in place? nafta is a binding agreement. our argument with regard to china we are justified because they have broken the rules, they haven't played by the rules, justified with tariffs. fine, i like that. but what is the argument with regard to mexico? whose rules do we play by? how can we call out china if we'll use this tariff mallet on anything that comes along. it's a real problem. it is hurtful to us long term. we're spending a lot of capital. stuart: are you worried that the trade fight with mexico, usmca, and certainly with china will be extended to the point where it really does hurt our economy, regardless what the federal reserve does about that? but the economy gets hurt by these trade fights and going into next year an election year, we're looking at a real slowdown
in the economy, wouldn't that worry you? >> that is what kept me from sleeping last night. stuart: be serious. >> i'm serious. i'm serious. to me bernie sanders or one of the others as president is a nightmare. those characters appointing people in the supreme court and what it does to our culture and society. my feeling. we can absorb the problem, press, "wall street journal" is blowing it up out of proportion to keep eyeballs on website. i don't think they're blowing mexico thing out of proportion. i did my tenure literally on nafta. it is extraordinarily important agreement, it has profound effects the way this economy runs. this is terribly disruptive, i think it could have very consequential effects. in both cases, china, mexico, the exchange rate adjustments on paper wipe out effects. in china what it means is the supply chain, stuff comes to us
moves from china to southeast asia, someplace in south asia, then comes to us. with regard to mexico it, disrupts factories in michigan. there is no place for them to move very rapidly. this is not a good thing if he puts them in place. i'm not supportive of this policy. stuart: peter morici, thanks very much for joining us. very poignant moment for you to be on the show. thank you. >> i understand what peter is saying, my question perhaps to him or anyone, what else have we done up to now that worked? nothing. so is this the step that needs to be taken to get the deals that we should be getting, and to stop bad behavior by other countries? that is my question. stuart: that's a good question. suppose there really is damage to our country from china trade, mexico, whatever it is, trade hurt the our economy, will rate-cutting by the federal reserve be enough to bounce us back up to a solid growth rate again? i don't know the answer to that question. but that is what the fed is
saying. we're watching trade. if we get into trouble because of trade we'll cut rates, don't know how many times, they will cut-rate. susan: there is not a lot to work from. lowest amount of dry powder they have had virtually ever, even since the great recession. stuart: it was quite an interesting news conference today between president trump and prime minister may. both say they're committed to a free, no to a trade deal between the united states and britain. the president is moving throughout london again today. when he moves, you will see it. we'll bring it to you as fast as we can. we also have this, joe biden unveiling his climate policy, calling for a clean energy revolution. he is using aoc's "green new deal" as a framework. wait until you hear how much this thing will cost. antitrust investigations into big tech hurting amazon, google, facebook. down big yesterday. no serious rebound today. in fact amazon and facebook are
down some more. we're on it. ♪ heading into retirement you want to follow your passions rather than worry about how to pay for long-term care. brighthouse smartcare℠ is a hybrid life insurance and long-term care product. it protects your family while providing long-term care coverage, should you need it. so you can explore all the amazing things ahead. talk to your advisor about brighthouse smartcare. brighthouse financial. build for what's ahead℠
stuart: pretty consistent rally throughout the morning. been up 250 points virtually throughout the day. the dow is above the 2500 level. president trump talking about those possible tariffs against mexico. that was in the news conference with prime minister theresa may. >> i think we'll do something. more likely the tariffs go on. we'll talk during the time tariffs are on and they will be paid. stuart: probably more likely the tariffs go on. joining us former mexican ambassador to the united states. mr. ambassador, what happens if
those tariffs are imposed this monday? >> it will certainly cloud the ongoing conversations that will start tomorrow here in d.c. it will create significant domestic political problems for president trump and the united states, as we've seen gop opposition on capitol hill building with these measures. in mexico, there is a poll came out today, shows 57% of are opposed to mexican president bending knee on immigration pressures president trump is demanding on mexico. it will strain the wiggle room both countries have to resolve this. stuart: president obrador said he is willing to work with mexico but my question is, what has mexico done thus far? >> in six months of 2019 alone,
mexico deported 75,000 people back -- stuart: forgive me, mr. ambassador, the question is really about what has mexico done since president trump threatened these tariffs about a week ago? what have they done since? what is new? >> you can't, you can't enforce your way out of migration crises. that is not the way it is going to happen. you can't move the needle in seven days, since the president put out his ultimatum. that is not going to happen. it is very hard for a government to have these threats. if we work as both countries have been doing since 2014, when we first had the very important uptick of unaccompanied minor migrants coming across mexico into the united states, then there is things that you can do in medium and long term. you will not solve this in a week. stuart: well is there nothing you can do about, look, just the other day, a large group of 1000 migrants simply walked across
the border. on memorial day, it was 2,000 just in el paso on one day. is there nothing that mexico could do, just as a statement, look we're trying to do something here? we'll stop this group. we'll stop that group. is nothing you can do short just to try accommodate president trump? >> i don't think you accommodate a bully -- stuart: you just labeled our president as a bully. >> that is not enough. i don't know what will be. stuart: you just labeled our president as a bully when we have thousands of people per day walking into our country from your country. we're a bully? >> yes, you are. stuart: i would disagree with that, sir. >> if again, you don't think that 75,000 deported in the first six months of this year, plus, 18,000 that have already been returned to mexican soil by the u.s., to wait their asylum
hearings in the united states, at an important economic cost for local municipal state governments on the mexican side of the border, again what is your benchmark? what is the benchmark for success. you want mexico to start shooting them on border? stuart: no, i do not. mexico take rational action, state what they are going to do, get on with it. i think it is reasonable to say america is being invaded. in the face of invasion, you do take strong action. that is what our president wants to do. >> the only way you're going to two do it in relationship complex as this one, both countries work together to resolve the root causes. stuart: i think that is happening now. talks are ongoing as we speak. >> they will start tomorrow. stuart: mr. ambassador, thanks very much for joining us. we really appreciate your point of view. i want you to come back soon too, there is a lot to go at here. >> yes, there is.
there is a lot the a stake for both countries. stuart: thank you, mr. ambassador. >> thank you for having me. stuart: the president has a busy day in london. that follows the news conference earlier this morning. dinner with prince charles and camilla, later on, you will see it all right here on "varney & company." there is this one. "jeopardy" champ james holes winning streak is over. it answered with this question. >> here is the clue. the line, a great reckoning in a little room, ins, as you like it, is usually taken to refer to this author's premature death. stuart: i guess he got it wrong. ashley: he got it right. stuart: he got it right. we'll reveal the answer for you next. ♪
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stuart: well, look here, maybe the market is digesting what the federal reserve has to say. ashley: taking its time. stuart: we have a new high for the day. we're up 310 points. now this. i know you've been waiting for it, james holzhauer, winning streak come to an end. watch it end. >> over to james, he had 23,400. his response was, correct. his wager? a modest one for the first time. that takes him to 24,799. so emma, it is up to you. if you came up with the correct response, you will be the new "jeopardy" champion. did you, you did. what did you wager.
oh, god. 20,000. what a payday. 46,801. what a game. stuart: they both got the right answer, but the librarian lady bet more and won. ashley: she had more going in, even if holzhauer bettering he had he would have lost he won $2,462,216, second only to 10 jennings. his daily amount of winnings far in excess of ken jennings. he holds single game record, $131,127. end of era. he lost to a university of chicago librarian. she was terrific. i watched it last night, she was very, very good. >> bold. ashley: i never thought it would come to an end. stuart: it was a great ratings run. ashley: yes. stuart: how about this one? the trump administration says it is tightening sanctions on cuba,
including cutting off group travel. that is interesting. more on that, ash? ashley: they decided to un, take away some of loosening you like that of the rules president obama put in. they say cuba is destablizing force especially in central america, in places like venezuela and cuba. ratcheting back on allowing educational groups is a big blow to cuba. it's a big source of american tourism to the island. this is a strong message to cuba. we know you're interfering in other parts of the world. we are now going to take away all of the lit loosening of sanctions put in place in the last administration. stuart: interesting stuff. now this too, democrat senator, 2020 candidate, kristin gillibrand, slammed at the nra. this was a fox news town hall. she called them in the worst organization in the country. wait until you see how the nra responded. it is priceless. believe it. we'll tell you which museum
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market. number one, fed chairman powell's comments, looking nicely at low interest rates. get this, house minority leader kevin mccarthy, says he thinks a solution will be worked out with mexico over tariffs. positive trade news, up goes the dow industrials. nice gain. amazon, google, facebook, they're facing antitrust investigations from the feds. kristina partsinevelos joins us now, i want to know, kristina -- >> is it going to happen? stuart: are they going to break them up. you want fine them up the wazoo, we know that. but can you break them up? >> you know how long that would take? it would take years and years, which would be a negative overhang for the companies. $140 billion wiped off market cap, apple, amazon, alphabet and facebook. we know the federal agencies are
reviewing to see if they engage in monopolistic behavior. tim cook, from apple was on cbs, within the last 24 hours. he said it is good to look into it. but they don't have a dominant position in the market. saying no, apple does not operate a monopoly. to your point, to your question, what could happen to the future of a lot of these companies? one, it could be good for legislation so that lawmakers can change it. if you think about it, how much has the technology industry grown so quickly? most of these laws are slightly outdated. the other issue, there is one scott galloway, guest frequently on the show, sometimes you break up a company, you can find a lot of value added created. paypal, for example, spun off from ebay. both doing relatively well. there is opportunity. analysts on both sides of the fence. stuart: however, if the government comes after you the way they went after microsoft,
you break that stock for a long time to come. you just beat it down. >> very good point. stuart: if you take action against google, facebook, amazon, government, did you do that? the stock does not go up. the stock stays right there. >> it could be a huge overhang for years to come. the question, you want to get in? wedbush analysts think 235-dollar price target. this could be a short-term buying opportunity. could be. only if you can stomach it. stuart: kristina, thank you very much indeed. good stuff. democrat senator, kristin gillibrand, 2020 candidate, slammed the nra at a fox news town hall. you better listen to this. >> most outrageous thing that happened to our democracy, how much fear, division, hate has been spread. i think the nra is the worst organization in this country for doing exactly that. stuart: fear and hate and
division, the worst organization in the country. okay, got it. now listen to this response from the nra i will read it to you. gillibrand called us the worst organization in the country but when she represented new york 20, that is her district in upstate new york, she wrote us, quote, i appreciate the work that the nra does to protect gun owners rights and i look forward to working with you for many years. now that she's looking to crack 1% she'll say anything. that is from the nra. strong stuff. i think we need katie pavlich, "town hall" editor, fox news contributor to come into this one. >> good morning. stuart: good morning. doesn't look good for mrs. gillibrand, does isn't. >> the old gillibrand was correct about the nra. it proves a, how far left the democratic party has become, b, kirsten gillibrand is
opportunist. president john f. kennedy was backer of the nra. joe biden is spreading around this fake story he marched in the civil rights movement. guess what? charlton heston, former nra president actually did march next to martin luther king and for the civil right movement multiple times. the nra is the oldest, longest living civil rights organization in the united states. they are not the reason why there is hate and division in america. they simply want to defend the constitutional, god-given second amendment rights every american is afforded being born in this country. that is what they do. they're not spreading hate as kirsten gillibrand accuses of them doing now. i would be interested to see what he former constituents in upstate new york have to say about her changes, what they think considering a number of them are supporters of the nra? stuart: i think we dealt with senator gillibrand. why don't we move on to joe biden. >> sounds good. stuart: he revealed his climate
plan. it calls for achieving net zero emissions, no carbon emissions, net zero by 2050. katy, have at it. >> you know these big government plans are bound to fail when they are so expansive, so expensive, and lofty bowls of 0% for example. they are bound to fail when they don't incorporate any private sector partnership. there is accusation, and smear that is often thrown around if you don't believe in climate change that you're a denier and you don't believe in preserving or cleaning up the environment, there are a number of organizations for years, private sector companies and private sector groups who have been working to clean up the environment without government assistance or subsidy. actually it is much more effective. if you look at the paris climate aagreement for example, the united states is actually still doing better in terms of emissions even outside of that agreement while countries in it aren't doing their fair share for the country. so joe biden wants to mandate
these big government programs that will cost americans trillions of dollars with little effect. stuart: he was supposed to be a moderate but i don't think he is. katie pavlich, thank you very much indeed. >> thank you, stuart. see you soon. stuart: 10:36 precisely now, i think we're joining him on the radio, he is joining us on television, let's get it right, brian kilmeade. host of the "brian kilmeade show". paul manafort, former trump campaign chair, transferred to rikers island. he was serving time at minimum security. he is going to one of the most nasty prisons. >> it is way over. i don't believe what this guy is going through. i don't care what he did internationally. he has been in solitary confinement before. evidently his health is declining. this isn't going to help. he is going into solitary confinement. rikers island will close. that is how bad of a facility.
charged with 16 counts, including residential mortgage fraud, falsifying business records. does that seem like a mob boss? does that seem like the "son of sam"? those are the type of people at rikers. stuart: have we no reason for transfer to rikers? no public statement why it is being done? it's a dreadful prison. >> it is terrible. prison is terrible. this is really terrible. he is being flown to laguardia airport to rikers. word he faces charges in new york, they will bring him here. it is also a show. it's a democrat-controlled state. democrat attorney general want as piece of him. this is a guy they thought they could break. the problem breaking paul manafort, he wasn't trying to hide anything except for his unethical perhaps dealings with eastern european nations. stuart: by the way, brian, did you see this, a virginia pastor apologized to his congregation for praying for president trump? the president made unscheduled stop at his church after
shooting in virginia beach. the pastor apologized because he let the president in and prayed for him. what is going on? >> he said he got notice late. called into the back room. get a notice president will be there in a couple minutes. he blessed president with a prayer appropriate for leaders and kings. some of the congregation was so upset by it, he felt he had to come out and apologize. stuart: that is ridiculous. >> it is embarrassing. stuart: this is ridiculous. i go to an episcopal church, we pray for our lead earns every sunday. we do that, part of what i go to church for. you apologize for this? i think that is absolutely outrageous. >> virginia, purple state, guess it is an area in northern virginia he didn't win. it's a church which he doesn't really have the dominant part of the congregation. or some squeaky wheels feel as though really not getting the lord's message of trying to pull for all people at all times, especially saying from selfish point, he is running your country. maybe you do want some
additional help in making the right decisions? stuart: yeah, really. >> i don't know what they're doing in the congregation if they are upset that the president showed up. stuart: pathetic. i don't go to church for politics. i go to save my soul. and i think most people are the same as me. >> i don't think your soul is in i jeopardy. i like to turn that question over to your panel though. stuart: very god. that was good, brian. we will not turn it over to the panel. keep them out of it. thank you, brian. see you soon. >> go get 'em, stuart. stuart: i shall. the nba moving away from using the term owner when describing the person who controls the team. they say it has racist connotations. fox sports jason whitlock coming up next on that one for us. big competition for beyond meat, the meatless hamburger people. nestle wants part of the action. it is planning to launch its own plant based burger. beyond meat is up big again.
they dropped back a bill. close to $100 a share. watch out hollywood casting directors. we'll meet the guy whose artificial intelligence software is being use to cast lead actors for their rolls. we'll cover it all on "varney & company." ♪ i switched to liberty mutual, because they let me customize my insurance. and as a fitness junkie, i customize everything, like my bike, and my calves. liberty mutual customizes your car insurance, so you only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ i'm workin♪ to make each day a little sweeter. to give every idea the perfect soundtrack. ♪ to make each journey more elegant. at adp we're designing a better way to work, so you can achieve what you're working for.
stuart: we're holding on to a very strong rally. 1.3% higher. that is nearly 350 points. the fed may be easing up on interest rates. that's good news. the story out of london is, major new, actually the story out of china was there is a softening of the china trade talks, possibly there. that helps the market, up 345. have a look at mattel. it cosigned a licensing
agreement with a franchise owner of hello kitty. that is why mattel is up nearly 6%. sports, ratings for game 2 for the nba finals were a massive disappointment for the league, down 20% this year, compared to game 2 last year. down 20%. jason whitlock, "speak for yourself" guy on fox one sports. good to see you,. >> good to see you, varney. stuart: that really surprised me, down 20%? i thought there was enormous interest in the game? >> you got to remember we have a team from canada in the nba finals, rather than a second american team, you will lose some audience for that reason. look, lebron is not in the nba finals. he has been in them for eight straight years. that storyline is missing. i'm not, i think this finals has been compelling and interesting, and i think the nba should
satisfy itself with that. the ratings are not going to be topflight for this finals. stuart: should you have an nba team in canada? >> yeah, i think it is great to have an nba team in canada. toronto is very supportive. the ratings in canada, they had more than four million viewers in canada watching the nba. i think it is good for the nba overall. sometimes you have to take one step back to take two steps forward. if kawhi leonard returns to toronto next year, they're back in the nba finals, i think the ratings will improve. stuart: i want to talk about something much more serious than mere ratings. a number of nba teams discussed dropping the term owner, describing the person who controls the majority of the team. they say the word owner has racist connotations. how do you feel about that, jason? >> this is laughable. this is why i laugh at this woke sports movement and social
justice warriors this is what they consider racial progress, demonizing the word owner. listen, man, slavery has been gone more than 100 years. the word owner is not remotely racially insensitive. ownership is one of the greatest things we have here in america, owning a home, owner a small business, owning a sports franchise. that is a sign of accomplishment, something people take pride in and should take pride in. what used to separate us from communist countries. you could can be an owner, you can own things in america. this is stupid. my dad took grade pride being a homeowner, small business owner. this is word is not racially insensitive. it shouldn't be demonized, but this is the kind of stupidity we have going on, varney in this politically correct environment. we have allowed people to create. stuart: got it right again, bit lock. i have got one last question for you. have you been watching fantastic
soccer recently? i ask you for one very good reason. soccer is a free flowing game. you don't have stoppages for flags on the play, checking videotape or commercial break. have you turned on to the really freight -- great football, yet? >> i love soccer, varney, it is probably my are 15th favorite sport of all time. i love it. after watching professional foot ball, college football, high school football, peewee football, madden video football, i would say soccer is right there. stuart: for once you got it right. 15th sport? you can't name 14 that is above it. i know you can't. is chess a sport? no it is not. jason whitlock, for joining us sir. time is up. see you soon. >> thank you. stuart: got a couple of meatless burgers stories for you. number one, nestle is launching
a veggie burger. beyond meat? susan: beyond meat sunk 7% on that news. nestle is apparently to launch it is own plant based burger in the u.s. starting in the fall under their sweet earth brand. look at today, beyond meat shares, were up 300%, quadrupling since the ipo. we're up 3 1/2%. stuart: why is it up today? >> there is "wall street journal" report there is not enough meatless burgers to go around. there is a tight supply. that market will go to $140 billion over next 10 years. currently worth $14 billion. barclay says it will grow 10 times over the next 10 years. everyone is jumping on board. take a look at the statistics. you tried the white castle impossible burger. stuart: we did. >> since the white castle introduced the impossible burger, store sales are up 4%. stuart: because of the meatlessburger? >> because of the meatless
burger trend. other locations that offer the impossible whoppers. you have investor interest as well. stuart: i ate the free one on the set. i didn't buy one in the -- >> this is what i found really interesting. meatless costs twice than amount of ground beef burger. in fact they cost a dollar more the impossible meatless burger. stuart: really? a dollar more. ashley: to buy not meat. stuart: what is next? what is coming up on the show, we have, okay, 5% tariffs on goods from mexico. less than a week away. i want to know, does kentucky senator rand paul support the president on tariffs on mexico? we'll ask him because he is on the show. hollywood stars make-or-break a film's success. so casting directors are turning to artificial intelligence to help determine which star will break box office records. we'll tell you how this thing works. that's next.
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stuart: we're holding on to a very solid rally, up 1.3% for the dow industrials. we're back above 25,100. good news from the fed. good news on trade. up the market goes. the lead actor of a hollywood movie can make-or-break at the box office, we know that that is where our next guest comes in. he is the ceo of a company that uses artificial intelligence to help hollywood determine the best star for the job. the ceo is with us. tobias, good to see you on the show this morning. >> thank you for having me. stuart: so what do you do? you run, you go this movie, and you run an actor's name through, into the movie, your artificial intelligence can project how well that actor will do in that movie, is that what you're saying? >> correct. i mean, actor is an important ingredient for the that determines the performance of a film.
analytics is a film platform combines best practices from science, finance, entertainment to help industry professionals make smarter, faster decisions. talent is really one core component of a performance. we have a system that ranks talent and helps industry profession understand. stuart: you're getting rid of the casting couch, in other words, that no longer exists? >> we are not, of course, that is very important creative component to films, it's a creative product. what we do is a business decision, of putting a package together. talent is an important part of it. stuart: look, supposing it is not a big star, it is not brad pitt. i, supposing it was me, putting me into a movie. your system will tell the producers how well i would do? how do you do that? because i have no talent and i have never been in a movie? >> the system would recognize that, because we look at your
past performance. which films, which flips did stuart act in. of course they're probably not many at this point. the system would say you're obviously novice, would rank that accordingly, when we look at film performance, not only actor, factor, like 15 different factors to drive performance. a actor talent is one core one, the other factors, budget, release strategy, producer is important, writer, director of the project. it is like a puzzle we put together. our algorithms figure out what puzzle is and figure out patterns in the past to figure out results in the future. stuart: tangible use of artificial intelligence, that is a first on this program. we like it. tobias, i'm sorry so short on time but we appreciate you being with us today. come back and tell me more about my future in movies. thank you very much indeed. >> i look forward to. stuart: okay. trump derangement syndrome has crossed the pond.
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$4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. stuart: trump derangement syndrome is alive and well in london. the british left which is leading the circus over there is almost exactly the same as the american left. they're socialists, motivated by contempt for president trump. they will insult him at every possible turn. i'm not going to put it on the screen, but in central london, demonstrators have erected a giant toilet, an effigy of the president sitting on it. it was made in china and flown in specially for mr. trump's visit. how insulting can you get. i will put this on the screen. the giant balloon, also hoisted over london portraying our president as a baby. it was the mayor of london,
sadiq khan, who okayed all of this, today there's a demonstration and jeremy corbyn will be the main speaker. he's the socialist leader of britain's opposition party, the equivalent of america's democrats and mr. corbyn is the equivalent of, say, bernie sanders or senator elizabeth warren. there is a close political tie-in between the left here and the left over there. to emphasize their support, the editorial board of "the washington post" weighs in today calling trump's advice on brexit quote, ignorant and unhelpful. his visit, says the "post," is a low moment. wrong on all counts. for starters, president trump is virtually the only world leader who can help britain as it struggles to leave socialist europe. he's offering a trade deal. that's a way out for the brits. he's offering solid advice for the europeans as well. as "wall street journal" puts it today, europe's massive bureaucracy paralyzes decision making. they can't get anything done.
europe is in chronic decline. america can help. they should be listening more closely to what our president has to say but like the left here, they are blinded by contempt. trump derangement syndrome, political and emotional foolishness. the third hour of "varney & company" is about to begin. thousands of people on the streets cheering and even coming over today, there were thousands of people cheering and then i heard that there were protests. i said where are the protests, i don't see any protests. i did see a small protest today when i came, very small, so a lot of it is fake news, i hate to say. but you saw the people waving the american flag, waving your flag. it was tremendous spirit and love. there was great love. it was an alliance. stuart: that's how you deal with a hostile question about your
reception in london. the president earlier this morning. i want reaction to all of this from steve hilton, host of "the next revolution" on fox news channel, and a man who also has a british accent. welcome. >> good to see you. you have got to love the president. big crowd, small protests. he's pretty good at branding. stuart: it wasn't a very big crowd. 10,000 or 12,000 people. it was raining. >> i know. i agreed with every word of what he just said on your tape there. i think the important word i sort of pull out of it and focus on is circus. it is a circus. it's not serious, it's not real. it doesn't represent anything. the serious point from this visit actually so far to me is actually not so much the reception president trump is getting, but what he's giving, what he's bringing to the table, which is this incredible positive enthusiasm for the uk, for the special relationship, for doing a trade deal. that is a real difference from the obama years. i was in ten downing street working for david cameron in the last state visit with president
obama. do you know in the runup to that, there were literally negotiations between the two sides about whether or not the words "special relationship" could be used by the prime minister or the president. it was made very clear to the british side that president obama would not use those words so please don't ask because you don't want to be in a position of being rebuffed because obama prioritized the relationship with the eu, even with germany, ahead of the uk and the big difference is that trump loves britain and wants to be a close partner and loves the special -- you saw today, both of them used the phrase special relationship. that was not an accident. stuart: he could really help with, as he says, a phenomenal trade deal. >> exactly. stuart: i want to move on. i know you are well-positioned in silicon valley. you have real close connections. >> take it advisedly. i'm certainly there. it's literally true that i'm there. stuart: you are slap-bank g in e middle of it. the dow just turned up 400 points. good news from the fed, good
news on trade. let's deal with that. now, amazon, facebook, google. facing antitrust investigations. is it possible that at the end of the day, they actually break one of these companies up? >> yes, i think it is possible but it's a race against time. i think the one that is most likely to happen is actually facebook. there, conceptually, there is an easy remedy for the authorities which is to say those big acquisitions you made in the last few years, whatsapp and instagram that have led to your dominance, they are entities you will have to divest. conceptually that's straightforward. however, mark zuckerberg saw this coming. that's why recently, internally, he's leading a process to merge the technical operations of those three very different entities to make them one, precisely in order to make it harder to unscramble them. that's what's actually going on. the technical race against time.
soon it won't be possible because he will have integrated them so closely. stuart: whoa. then there will be a standoff. >> exactly. i think facebook looks like the most likely. what you are more likely to see, i think, is a combination of fines and behavioral remedies. for example, in relation to google, making sure they don't privilege their own services in search rather than other competitors. stuart: i bet you remember microsoft, late 1990s, early part of this century, the government went after them. they just really put a clamp on that company's operations for many, many years, and the stock was in the doldrums for many, many years. if the government did the same thing with facebook, google or amazon, their companies would be in a similar straightjacket of government control. >> but also look at the end of that story. microsoft has reinvented itself as an enterprise software company and a few months ago, it was for a moment the most
valuable company in the world. stuart: i don't think they are under threat of antitrust action again. i think it's amazon, google and facebook. i think they have a real problem. shall i watch your show on sunday night? >> 9:00 eastern, i think i'm obliged to say. stuart: 9:00 p.m. eastern. "the next revolution" with steve hilton. we always need an extra british accent. >> there aren't enough brits around here, quite right. the process begins in a few months. stuart: yes. join the club. it's the best club in the world. okay. please check the big board. you want to see this? i want to see this. 417 points up for the dow industrials. good news from the fed, good news on trade, up she goes. look at that. i think this is a positive. the yield on the ten-year treasury has gone up. normally when interest rates rise that's awful news for the market but this time it suggests
that maybe our economy is not in such bad shape and maybe not so many foreigners are rushing for the safety of treasuries. ashley: money coming out of bonds going into the market. stuart: i will take a 400 point gain for the dow any day. let me get back to facebook. shareholders voted to oust mark zuckerberg as their chairman. it won't happen. that's the way these things work. not going to happen. jackie deangelis is with us. jackie, lot of shareholders say outta here, zuckerberg, okay, won't happen but in the long run, surely it has some impact on his position. >> it's definitely another black eye for him. he's dealing with a lot of issues right now. how he handles a lot of different scandals, looking at antitrust probes, and now about 68% of the independent investors are saying we don't want you to be chairman anymore. this is up from just about 50% last year for this same proposal. what's amazing here is that he basically controls the voting power. he has 60% of the votes so he can say he doesn't want to move
forward with this, obviously, but it really shows you how people are feeling about him, feeling about his leadership, and where this conversation and dialogue could go in the future. stuart: what do you think he had done wrong? >> a lot of people feel he handled cambridge analytica badly, in the wake of that. i actually disagree. i think he tried his best to counteract some of the measures that had occurred. he went and testified on capitol hill. he said he was open to regulation and working with lawmakers to try to improve the situation for facebook. but you know, so many people are against big tech right now, just in the conversation that you were having, it's a tough argument to make. ashley: seven state treasurers have voted against zuckerberg holding both ceo and chairman positions. they say facebook is so powerful that to concentrate the magnitude of that power in one person is dangerous and risky for shareholders. stuart: i think it's dangerous for the country. that kind of power. young billionaires, i've got a problem with that.
good stuff. you stay with us for the hour? >> yes, sir. stuart: thank you very much indeed. president trump said there will definitely be 5% tariffs on mexico starting june 10th. a minute later, he said those tariffs are more than likely. little hedging there. some republican lawmakers are pushing back on those tariffs. we have senator rand paul with us. does he agree with the president's approach, tariffs on mexico? he's on the show after this.
now, the fda held a hearing on cbd regulation last week but jackie, it didn't go that well, did it? >> right. well, the fda is actually warning companies that it looks at cbd as a drug, and that it's given some, you know, careful consideration to this. there is strong public interest for cbd to be out there, to be regulated because it gives you all the wellness benefits of marijuana without actually getting you high, so that's a good thing. but it's a messy state in the industry right now. there's been a lot of conversation about this, where exactly it's going to go, how much regulation there will be remains to be seen but on your show, we had the ceo of canopy growth on and even he was saying there are so many different products out there, there does need to be some regulation so it's safer for consumers and so they know what they're getting. stuart: what's wrong with a little regulation if it standardizes the product without taking away competition between products? ashley: we had the canopy growth ceo on who is begging for regulation.
he says it's very important. stuart: of course, he is the world's largest legal marijuana grower. >> i will add there was a cnbc note on this as well saying 65 million americans have actually tried cbd. 63% found it effective. in terms of that public interest, there definitely is substantial evidence for it. stuart: 68% have tried it. or 68 million? >> 65 million have tried it. 63% found it effective. stuart: that's cbd. doesn't get you high. that's the oil, et cetera. good stuff. thank you very much indeed. less than a week away from that 5% tariff that's coming on goods coming here from mexico. let's listen to what the president had to say about this earlier today. roll tape. >> i don't think they will do that. i think if they do, it's foolish. there's nothing more important than borders. i have had tremendous republican support. i have a 90% -- 94% approval rating. we are going to see if we can do something but i think it's more likely that the tariffs go on and we'll probably be talking
during the time that the tariffs are on and they are going to be paid. stuart: the president talking about two different things there. some republicans oppose these tariffs on mexico, making their voices heard, and the president was saying well, we will probably stick those tariffs on but keep talking. rand paul, republican senator from kentucky, joins us now. would you join other republicans who say no to tariffs on mexico? >> you know, tariffs are simply a tax on the american people and i have generally been opposed to new taxes on the american people. i think the more money you send the government, the less helpful it is for the private economy which drives the engine of our capitalist economy. so i'm not really for tariffs. i also think it's an abuse of the emergency system in the sense that i think the emergencies were set up such if japan attacks pearl harbor, you might be allowed to put tariffs on japan but i don't think they were intended really to be used willy-nilly throughout time.
i'm not a real big fan of using emergency powers and giving the president emergency powers. i think really, the checks and balances and separation of powers between congress and the president were very important to our founding and something we should stand up for. stuart: so do you think the republicans will slap this down? no tariffs on mexico? >> you know, we'll see. we have had this discussion before with the president on emergency powers when he used it for spending. i think there's actually gathering momentum, there are a lot of farm state senators who are very worried about what tariffs do to the farming community. about 25% of what we grow in the u.s. is exported so when i talk to my farmers back at home, they are very concerned but there were some farm state senators who didn't oppose the president's last emergency who i think might in this case. i think there will be some danger to the president we can actually have a veto-proof disapproval of any new tariffs on mexico. stuart: interesting. last time you were on the show, you presented your own budget plan, cut each department's spending by 1% over a period of
years. that would balance the budget very quickly. that was voted on but went down to defeat, 69-22. a lot of republicans opposed your spending plan. >> kind of disappointing. the democrats don't make any pretense. they don't think there's a problem with deficits and spending. republicans at least go home and they tell people we're conservative, we're more conservative than the democrats, but then when actually push comes to shove, and i had them vote on cutting a penny or two from the budget, basically we would leave spending at 98% for five years of what we currently spend, then gradually let the spending grow at 2% after that, but the budget would actually balance within five years. every one of these republicans voted for the balanced budget amendment which requires the budget to balance in five years, but then less than half of them will vote when actually presented with a budget that balances, will actually do the hard vote and say yes, i will vote to cut spending. stuart: actual spending cuts are the third rail of politics.
i think that's where we are, sir. >> probably. but i think people are in a different place. i told people from the very beginning that there's not enough money for social security or medicare. you will have to raise the age of eligibility not because i dislike older folks but because if you want these programs to be sound, so i think people are actually willing to hear that and willing to hear someone who is honest enough to say hey, we got a real problem with the debt, we are borrowing a million and a half dollars every minute, $22 trillion total debt. think what the markets would do if we actually did a balancing act and balanced bouour budget r five years. stuart: thank you for being on the show today, rand paul. one way to look at this, tesla is up today seven bucks higher. barron's says they quote, might take off but it's not a buy. don't know what that means. nonetheless, the stock is up 4%. $186 on tesla. got it. netflix, loop capital
upgraded that stock to a buy from a hold. they've got some clout, i guess. their guy appears on the show occasionally. they are up 14 bucks at $350 this morning. look at this. shades of the london trip for the president. a pub owner in london renamed his bar in honor of the president's visit. he called it, you can see it there, the trump arms. we have the owner of that pub on the show coming up very shortly. i'm working to keep the fire going for another 150 years. ♪
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stuart: watch out. we've got another brit on the program. no, not steve hilton. we do need more british accents. come in, a pub owner from london who renamed his bar the trump arms. that man right there did it. we like you, damian smith. we really like you. obvious question, have you been getting more customers? >> absolutely, stuart. we have a tremendous business from visiting tourists as well.
stuart: i think i said i wanted more british accents but you have an irish accent. that's fine with us, believe me. have you had any protesters at your pub? >> not really, no. we have a lot of stuff online. people who are thousands of miles away who have never been inside the door, they just on facebook and stuff like that. stuart: why did you do it? >> well, i done it because this incredible man and we have to show the american people and the president that he's a tremendous operator and a great man for his country and for the world. stuart: we don't hear that coming from the other side of the pond very often. let me ask one last one for you. are you going to take that name off the pub when the president leaves? >> well, i will, unfortunately, because you have to go through the council and rigamarole to change the name. it's just temporary. we done it last year as well when the president visited. it's great. stuart: by the way, the
president learned about your pub and described it as wonderful. take that to the bank. damian, it's great having you on the show. i wish i had more time. i think what you're doing is just terrific. when our president goes over there and you do that for him, we like it. >> thank you very much. thank you very much. stuart: good stuff. let's get -- just a tad more serious. missouri senator josh hawley wants apple's chief tim cook to provide customers with a do not track option. we will get that story for you in just a moment. check the markets. we are up 400. coming up, we will talk to a private wealth adviser at ubs. i want to ask him look, you have made some money in the market. there's risk in the market. why not just sell everything you've got and put your cash into a dividend paying stock. what's wrong with that? i will ask him.
a sea of green on the left-hand side of the screen. that means 27 of the dow 30 are in the green. they are up and the dow is up nearly, nearly 1.75%. i call that a rally. i need advice. who better to get some advice from than jason kantz. he works for ubs as a private wealth adviser, tells rich people what to do with their money. is that correct? >> in the last month, maybe a little less rich. but yes. stuart: that brings me to my question. we do have risk in the market. some people have lost money recently. what's wrong with doing the following. you make some money, so sell the stocks which you made some real serious money on, and just put it into a dividend-bearing stock. what's wrong with that? >> the challenge with making such large tactical changes like that or wholesale changes, for that matter, is your timing has to be impeccable. the argument for value in dividends, you could have made over the last 24 months and been
deadly wrong. striking a balance between growth and value, market capitalization and styles, whals we recommend. of course, there will be tactical overweights depending on the environment we're in. stuart: would you change that advice depending upon the age of the person you're advising? for example, i'm 70 years old. i could make a good case for lowering my risk tolerance at this point which means going into dividend stocks. what do you say? >> that makes entire sense. obviously the older you get, you want to get increasingly more conservative. the challenge in this environment, i know this is counterintuitive, is what historically has been the most conservative arguably could be the most risky. what i mean by that, we have had this incredible surge in bond prices and drop in yields. theoretically, you should have a disproportionate amount in fixed income but if you extend duration within your fixed income and for whatever reason we get a reversal in rates, all of a sudden what was once safe now became risky.
there's a little bit more of a weighting toward equities than fixed income and perhaps if you are a little older, little more of a tilt in value, or you reference at & t communications services with high dividend yields and in spite of this noise about the ftc and justice department, i think there are trends there that pose great opportunity for whether you are retired or up and coming as an investor. stuart: so don't panic. things may look risky out there but do not panic. that's your message? >> loud and clear. that's never worked, never will. stuart: never worked, never will. unless you time it absolutely perfectly. you don't think we are on the cusp of a real serious drop? >> i don't. our base case is we will get a trade deal. it will be a bumpier, slower road, and we do think that the mexican tariff situation is more of call it a political ploy, but negotiation tool to get to an immigration status that i think
is amenable to both sides. we think that 2950 is achievable. it probably takes a good 6 to 12 months to get there, but with benign inflation, record low unemployment, i think it's within reach. stuart: do wealthy people come to you panicked? nervous? worried? >> that's why i'm in business. they do, but if a wealthy person or any person, for that matter, who is an investor, takes a step back and looks at things through a wider lens and invest within the context of a financial plan and have an asset allocation predicated on that plan and measure results not by the daily vagaries of the market, they measure it versus their long term return goal they need to achieve, then they can see through all the noise and not hit panic button. stuart: you have to deal with life expectancy. you have to deal with that, not me. thank you very much for joining us. >> my pleasure. thank you. stuart: next case, missouri
senator josh hawley, he's looking for something more from apple's chief tim cook. he wants more from apple. jackie, what does he want? >> he wants a do not track registry. what this basically would mean is when you download apps from the itune store, you can opt out of the tracking, position tracking and monitoring so they are not watching and storing the data that you are giving them basically voluntarily. there was a developers conference yesterday, apple did make some strides in terms of privacy and said it would work on this. they introduced a parade of products. some features that would increase the privacy but it would sort of not do it to the extent that the senator wants it. wasn't he wants it to be very firm. there used to be do not call registries, you would not get one single robocall if you put your name on it. not the case today. stuart: i could go for that. >> i think a lot of people would like that. i certainly would be one. stuart: i wonder how far the privacy thing goes and the no
tracking thing actually goes. how many people really are concerned about this? >> a lot of people are concerned about it. as time is going on with the technology, i feel like a lot of people i speak to are saying they are worried about it, worried about the microphone access on the phone, they are worried about the location tracking. it's just voluntarily handing over information you normally wouldn't. stuart: do you think we will ever get used to the idea that these things in some form or another are here to stay? and your concept of privacy not being followed, not being listened to, not being looked at -- ashley: privacy is gone. no matter what they say. stuart: you feel that way. ashley: they go on apology tours every other month saying sorry, i thought we had this taken care of. i don't think there's any expectation. stuart: but i can't live without it. >> some people don't think it's a big deal. they say i'm not doing anything wrong so what's the big deal if they have that information. i'm of the camp that believes you should protect your privacy at all costs. i think people will continue on that band wagon but maybe to no
avail. stuart: are you on facebook? >> i am. i have been thinking about all of these issues and scaling back. stuart: okay. ask you questions directly, we like that. i want to get back to day two of the president's visit to britain. i am an american citizen. i'm proud to see our president visiting my place of birth. but the media, they don't see it that way. look at this. from "the washington post" editorial board, no less, quote, trump's visit to britain will be remembered as a low moment for a special relationship. ashley: what? stuart: low moment. are you kidding me? ashley: what was the low moment? stuart: stop it. don't get me started. brett mosell will give us exactly what i want. trump's visit and the media coverage of it, in my opinion, has been vicious. what say you? >> they are playing right into the far left's hands. they set up these demonstrations because they know that outlets like cnn are going to give it
worldwide publicity. that's exactly what's happening. they actually chastised theresa may for not disinviting the president to england. can you imagine what would have been the international explosion had she disinvited him? so it was stupid on that level but then if you look at the dignified nature of the ceremonies yesterday, he's the third president in american history to be given the state visit. i thought it was rather extraordinary, what we saw. stuart: wait a second. think what he is offering the brits, what he is offering europe. he's offering a way out of their brexit mess. he will give the brits, he calls it a phenomenal trade deal, which is exactly what they want. they are going to disinvite him because the left has contempt for him? that is ridiculous.
>> for that, "the washington post" accuses him of interfering with elections. you are so right. he is trying to make britain understand how favorable this will be because of what the possibilities with the united states, which wouldn't otherwise exist. look, president obama, bill clinton, he was involved in the i.r.a. in israel and so many other international conflicts and situations. he was praised for that. but donald trump going to britain trying to offer a solution that will be helpful to britain, "the washington post" says they attack him for interfering. stuart: i do want to tell our viewers, you've got a new book out. i think it's out today. it's what we have been talking about. it's called "unmasked, big media's war against trump." can you give me 20 seconds on what it's all about other than what's in the title? >> sure. sure.
you know, you and i have spoken about this for -- since trump came on the scene. i thought i knew everything. when my colleague tim graham and i sat down and put together the research and looked at the story line, i must tell you it is extraordinary. it is far more than we thought was happening. you put it together and you see the most militant weaponized assault on a u.s. president in the history of the republic. people who are concerned about this issue should read it. stuart: i shall read it. i want a free copy delivered to me. no, no, no. i will buy this thing. i will enhance your bank account somehow or other. good man. see you again real soon. thanks very much. >> thanks, stuart. stuart: another hit for uber. the irs is investigating them. the stock right now is dead flat, up 70 cents at $41. details on this investigation in a moment for you. we are also talking to a
company called lyric. they buy properties, redesign the interior, then put them back on the market for short-term rentals on sites like airbnb. we are talking to the ceo of lyric. they will face serious regulatory battles, are they not? we'll be back with that. let me ask you something. can the past help you write the future? can you feel calm in the eye of a storm? can you do more with less? can you raise the bar while reducing your footprint? for our 100 years we've been answering the questions of today to meet the energy needs of tomorrow. southern company
stuart: this looked like a red flag to me. the irs is investigating uber. jackie, what are they supposed to have done? >> they are looking into transfer pricing, a way for companies to shift their tax liability to jurisdictions that are lower tax. to give you some perspective on this, uber's first quarter gross unrecognized tax benefits, they were north of $1 billion and the company is estimating the impact of this could be at least $141 million. it's a small percentage but remember, this is a company that
reported a loss of $1 billion for the quarter as well. this happened in 2017 with amazon in europe. their fine was about $294 million. but it's another -- we talked about black eyes for mark zuckerberg and facebook. it's another black eye for uber even though the stock is trading up because a lot of people look at this and say you have a laundry list of problems that you need to straighten out before i necessarily want to get behind this company. stuart: apart from which any fine or back payment of taxes would take years and years and years and can be appealed forever. if you have revenue coming in of billions of dollars, it's not that big a problem. >> it is probably not in the scheme of things. stuart: i'm still going to buy that thing. ashley: keep talking about it. stuart: california stories for our viewers out there. i want to bring in our california voice of reason, his name is larry elder. larry, let's go with this one. look at this. on the left-hand side of the screen, some appalling video of homelessness in los angeles. i want to know how larry elder,
what would you do about this? because i'm tired of hearing politicians just say oh, we must do something, we need to do something. but they don't do anything. what would you do? >> it's interesting that you asked me that question because i live in los angeles. i live in fact the hollywood area. there's a huge and growing homelessness problem there. a few weeks ago i had a minor police problem in my neighborhood and a couple of cops came to get a statement from me and as they were giving me the statement i asked both of them what would you guys do about the homelessness problem. they said well, you know, it's complicated, it's hard to say. i was shocked that these officers given their years of experience being on the streets, patrolling the streets, had no real ideas. then they punched themselves, they were taping the conversation. i didn't realize that when i asked them the question. they didn't want to be taped. then stuart, when they cut off the tape recorder, they talked for 15 minutes nonstop and went on a rant about what they would do. the first thing they said they would do is to make it illegal, it already is, but they would enforce the law, you cannot sleep on the streets.
they said the second thing is that the politicians and the media are not characterizing this thing in a way that can get people energized. this is a health crisis, they said. we have officers who are getting sick. we are concerned about contracting typhoid fever. when you have dr. drew pinski saying this is similar to a complete health care break down, combination of airborne diseases, rodent infestation, you have third world country conditions and it's outrageous. stuart: i asked you what would you do. your response was enforce the law. wait a second. >> my response is -- stuart: go on. >> raise enough money to build whatever facilities it takes to house these people. let the nonprofit segment, the religious sector, deal with this because government cannot do it. we are throwing money at the problem. san francisco, san diego, l.a. have spent billions of dollars in the last several years and it's gotten worse.
obviously that's not the issue. most of these people have health care problems. they are mentally ill, they have substance abuse problems. it's not for lack of homes. i talked to a father who runs the acton institute in michigan. they do a lot of work on homelessness. he says you have homeless people who have relatives who are willing to let them stay at their homes. they don't want to do it because they are mentally incapable of dealing with life on a regular basis. that's the issue. they need to have health care and we are not providing it. stuart: larry elder, who is our voice of reason. thank you very much for joining us. i can see you're fired up about it. thanks, larry. there are such things as coffee stocks. they are on the screen right now. interesting story. california regulators just said you don't need a warning label on coffee. aren't we blessed. coffee stocks up not necessarily because of the california ruling but in my opinion, you put a warning label on everything and it has absolutely no meaning on anything.
that's my point of view. coming up next, the ceo of a company called lyric. now, this company buys apartments, refurnishes them, puts them back on the market for short-term rentals like airbnb. they recently led their funding. i say they are going to face a big uphill regulatory battle but let's see what the ceo says.
stuart: i want to introduce you to a company called lyric. they have made a business of i think buying properties, redesigning them, new interiors, then putting them on to the short-term rental market, a bit like airbnb. it's a brand new business and it's fascinating. andrew kitchell is with us. i think you are the ceo of what's it called, lyric. that's you. let me see if i've got this right. you actually work with developers, you design an apartment, you will furnish the apartment, then you put it on to the short-term rental market a bit like airbnb. that's you? >> well, so think of lyric as a design and technology company. we believe what we are creating
is entirely new category of accommodations, designed around the needs of the modern business traveler. yes, we do partner with real estate developers. we partnered with 20 of the top 50 developers in the u.s. already to bring this inventory to life but the spaces we design are called creative suites. they feature full kitchens, living areas that flex into workstations and more, and i think we will be the best stay you ever had. stuart: it's not a hotel. >> no, it's not. stuart: you don't pay hotel taxes and such. >> in new york, where we just launched, we do. think of lyric as somewhere between a hotel product and airbnb. we have larger spaces. our spaces are 50% to won 100% larger. stuart: you are going upscale. >> yes. for the modern business traveler. stuart: for the modern business traveler. very short term rentals, one, two nights, something like that? >> people can stay with us for a single night and the longest is more than 300 nights. stuart: how much?
give me a ballpark figure. i know that's varying from market to market. ballpark figure. >> $220 per night across 14 markets. stuart: $220 a night. >> average price across 14 markets. stuart: kind of upscale stuff? >> the photos speak for themselves. our brand is designed by the former head of brand for stirwood. stuart: hold on. $220 a night, then taxes and fees and service charges on top of that? or is that out the door, 220? >> there is also a cleaning fee. if you stay with us for four nights we need to clean the place after you leave. we will charge you usually $70 to $100 in addition to that. but you walk out the door and stay for $900, $1,000. stuart: can i bring the dog? >> in many of our spaces, you can. some of the buildings we operate in have dog walking parks. stuart: you know cities, especially like new york city, they hate you. >> i think that was the old narrative. i think the market is shifting. stuart: you are into new york
city because you are prepared to pay hotel taxes. that's why you're in. >> yes. yes. stuart: okay. that raises your price per night, doesn't it? >> sure, it does, but of course, we thought about that when we designed the business model. look, we actually believe we should operate much like a hotel. we are trying to bring hotel quality to folks for just a different type of experience-driven hospitality stay. stuart: okay. you've got 530 rooms. >> correct. stuart: in service right now. >> yes. stuart: in 14 cities. >> yes. stuart: you are expanding hopefully? >> we will add 2,000 units this year. stuart: what? >> in the next 12 months. stuart: in the next 12 months? >> yes. stuart: you, sir, are a success. we like success on this program. l-y-r-i-c, lyric. you are the ceo. you're not public, are you? >> we are not public. we are 125 people based out of san francisco. stuart: you didn't say yet. not public yet. >> not public yet. stuart: andrew, you're all right. andrew kitchell, lyric ceo. thank you very much for joining us. much obliged. thanks very much. more "varney" after this.
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stuart: what day is it? ashley: it is tuesday all day. stuart: that's a rally. hope it lasts all day. we're up 429 points. let me take you back before 10:00 eastern time. jackie deangelis on the show telling what the fed was saying about interest rates. the market went up. >> act appropriate to sustain the expansion. market loved it. it was dovish. that is the read on it. stuart: ash, sitting here watching the president's news conference in me. was there something in the news conference? >> i thought it was positive. he was questioned about tariffs on mexico. that was conoco -- convoluted
answer. i didn't think it was anything that scared the markets. >> it was pleasant news conference. i thought it would be contentious. smiles rand jokes. kumbayah not quite. neil, time is up for me. it is yours. neil: jackie said, jerome powell said he would act as appropriate to sustain the expansion, telegraphing what could be a potential rate cut in the future month. could be two of them. those who bet on these things with something called fed futures contract, you can put money on it, are seeing increasingly we'll see the cuts late july, ben in early october. we could be a half-point lower on bank lending rate down to 2 1/2% by the end of the year. that doesn't mean if you're placing on money that something will automatically happen. these guys have been wrong before. over the course of the last 10