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tv   Varney Company  FOX Business  August 13, 2019 9:00am-12:00pm EDT

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for the next six months. dagen: before i go, made in the usa, lc king, east tennessee, been in business more than 100 years. jack king, follow him and buy their awesome men's clothing. thank you so much. tom, jessica and john. mr. varney, take it away. stuart: i shall. good morning, dagen. good morning, everyone. hong kong is the story of the day. it's the market mover, too. late developments. no flights out of the airport now. very few arrivals either. protesters using baggage carts as barricades in the departure area. reports of chinese military vehicles assembling just across the border, and the chief executive carrie lam says hong kong has been pushed to the brink of no return. sure looks like a confrontation coming. we'll see. here's another market mover. interest rates. look at this. the yield on two-year treasuries is above the yield on ten-year treasuries. that is considered a signal that recession is likely. we'll see. it's not helping stocks this
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tuesday morning, down another 400 points yesterday. the dow will drop a little bit more at the opening bell today, down maybe 60 points. with the s&p and nasdaq also moving down. it is a down day. with this volatility, however, who knows how we are going to close. the president leaves for pennsylvania later this morning. he's talking energy. pennsylvania allows fracking which helps america become independent. neighboring new york does not. when he leaves the white house in the 11:00 hour, he may speak to reporters. you will hear what he has to say. are you just a little worried about your 401(k)? yeah? stay there, please. advice for investors coming up. "varney & company" is about to begin. stuart: just getting this. president trump tweeting on china. here it is. through massive devaluation of
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their currency and pumping vast sums of money into their system, the tens of billions of dollars that the u.s. is receiving is a gift from china. prices not up, no inflation, farmers getting more than china would be spending, fake news won't report. well on that, let's bring in jim awad, our market watcher. jim, hard line on trump right there in that tweet that just came through. so i ask the question, look, if you've got a hard line on china like this, why shouldn't i just sell my stocks and our viewers, too? why not just sell and run for the hills? >> well, because you can only get one-sixth on your bonds, 1.6%, short-term rates are going to go even lower than they are now. 60% of the stocks in the s&p yield more than the ten-year treasury. you may have a small earnings recession but the u.s. economy is still growing.
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the u.s. consumer will power through, in my opinion, and stocks are 5% cheaper than they were a month ago. so i don't think it's a time to panic. it's a time to think long-term. stocks are on sale, they were on sale last december also. they will probably go down a little bit more short-term, the short-term news is not good, but that's how you make money long-term by buying quality growth stocks when they're under pressure. stuart: okay. that's worked over the past ten years for sure. what about the hong kong situation? it does look like a confrontation of sorts is coming up and if there was a confrontation, if it was bloody, i don't think the market would take it very kindly, would it? i don't think we would get a trade deal afterwards, either. >> yeah, well, in the short term, the market wouldn't like it. the market doesn't like uncertainty. it doesn't like conflict. it would postpone the trade deal which looks like you're not going to get anyway. but i hate to say this, but the stock market is really about money and economics, and they
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may side briefly for the people of hong kong but as long as it doesn't affect the u.s. economy in a major way, i think it will be a dramatic news event, sad one for the people of hong kong, but it won't affect the u.s. economy long-term. the trade issue is complicated. it's not a positive and it's starting to weigh on business, starting to weigh on consumers, and that's why you are getting -- stocks are getting cheaper but in the long term, the u.s. and china do have to figure out a way to co-exist, to compete and co-exist and whether it's this president or the next one, there will at some point be a mutual understanding and china will grow and the u.s. will grow and it really doesn't pay to get too emotional short-term. we will work our way through this issue. we will readjust our supply lines. don't count out u.s. consumers. don't count out u.s. companies or we will work our way through this and it really does not pay to get emotional and to sell when other people are selling,
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it's really a time to identify the companies you want to own and buy them as stocks are under pressure. stuart: jim awad, little hand holding for investors, we appreciate that. see you again soon. thank you, jim. staying on the markets, i want to bring in former kansas city fed chair herman cain. herman, has the fed any choice but to lower rates aggressively from here on out? >> they have no choice. but whether they do it or not is another issue. for all of the reasons that jim just mentioned, are the reasons that the fed ought to lower rates. china is playing a stalemate game with the united states. so i agree with the administration. we cannot yield to what they are trying to do, but as jim pointed out, there are all kind of reasons not to panic. yes, there is going to be some short-term volatility. but there's long-term is where people ought to be looking right now because of the uncertainty
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and because of conditions jim shared with you in the earlier segment. stuart: you don't think the fed will be pushed into lowering interest rates when europe across the board is negative, japan's negative? you don't think we are almost forced to lower rates? >> i believe that they should be forced to lower rates because of the reasons that you cited. i just don't know if they are going to do it. they have shown stubbornness in the past. so time will tell as to whether or not they are going to look at all of the metrics that jim talked about, all of the metrics we see around the world as to whether or not they are going to take some action. we don't know. we have to wait and see. stuart: let's move to politics, the election. listen to kamala harris confronted on health care in iowa by a 91-year-old woman. roll tape, please. >> we are all paying for health care for everyone. it's an emergency room.
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>> [ inaudible ]. >> okay. i don't intend to mess with your medicare. i want to make sure your health care is the way you like it. i promise you that, okay? i won't mess with the health care that you have. stuart: that was a confrontation. herman, you heard that. you talk to people. you're in the financial world. you're in the political world. do people really want medicare for all? >> no. they do not. this is the message and the line of the democrat presidential wanna-bes. the people i talk to all the time across this country, they don't want medicare for all because they know what some of the traps are. i experienced it recently when i had to sign up for medicare part b. here's one of the traps. you have to pay for medicare part b and they adjust your premium based upon your income. another trap. part a and part b simply do not fill the void. that's why people have to buy supplemental insurance. those are some of the traps that kamala harris along with the others are not being honest with
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the american people. that lady is 91 years old, knows more about medicare than kamala harris. stuart: i just don't think americans want another upset to the overall medicare -- medical system in america. herman, thanks sgroirfor joinin. see you again real soon. moving on to the jeffrey epstein case. one of the people monitoring him reportedly not a trained prison guard. more? ashley: not a fully-fledged correctional officer. apparently this isn't unusual in this facility. the correctional facility in downtown manhattan. because there's just severe staffing shortage that leaves a lot of gaps when it comes to supervision, including, we understand, jeffrey epstein. he had been taken off suicide watch and put on what they call special observation status. that meant he may need to be checked every 30 minutes and he had a cell mate at all times. turns out the cell mate in this case was transferred and no one else was brought in, and he was not checked on every 30 minutes. that's one issue. also, part of the stories that
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are coming out, one which i find interesting, is he was consulting with elon musk on the s.e.c. battle he was having, remember last august musk was, that funding secure tweet led to the whole thing. a reporter for the "new york times" says he met with epstein in new york and had a long chat with him and said he was helping musk find a new chairman and also investors into tesla. since that time, of course now musk is saying absolutely not true, i didn't have any contact with jeffrey epstein at all. the bigger issue is how the heck did this happen, how was he able to apparently hang himself in his cell and that is being looked at from the very highest authorities right now. stuart: was it incompetence or was he given the opportunity to kill himself? we can get into that. ashley: lot of questions. stuart: we've got this just coming at us. charlie gasparino, fbn's charlie gasparino reports that cbs and viacom have agreed to merger terms. a formal announcement is
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imminent. both stocks down just slightly. uber, whoa, did it take a hit yesterday. down big-time and down a bit more this morning. not much. it's down seven cents but it's back to the $36 level as we speak. check the big tech names. they have all come down recently. we have at this moment, let's see, premarket, big tech, yeah, we got them, facebook is down, amazon is down. the only winner on the whole lot this morning is apple and it's up just two cents. so another down day for big tech. check the overall market. it's tuesday morning. we are going to be down at the opening bell, not that much. big drop yesterday. modest decline today. now then, forget new york. forget los angeles. some of the hottest housing markets are in the middle of the country. like boise, idaho, grand rapids, michigan. what's behind that trend? we will ask tarriq el-moussa. he's on the show next hour.
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cnn is defending chris cuomo after this video is released showing him going off on a man who heckled him in a new york bar. wait until you hear what set off this very angry confrontation. we will play it for you. and president trump confirming reports that a nuclear-powered cruise missile exploded during testing in russia. ominous indeed. more "varney," we're just getting started. ♪
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stuart: another day of canceled flights at hong kong airport. protesters brought it to a standstill again. bring me up to speed on the latest. susan: so hong kong is the eighth busiest airport in the world, so they see around 1100 cargo and passenger flights that land every day. they have canceled checkout once again -- check-in for a second straight day and you can't fly out, no departing flights. this is basically getting at the heart of economic disruption in the city because if you cut off one of the transport veins, this is the main artery, can you
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imagine how that disrupts business? we saw the airline that operates out of hong kong, the main one, down to a decade low. another selloff on the market. in fact, down 11% since the protests started. as you see, with the increasing violence, u.s. companies and global companies operating in hong kong also instigating these contingency plans as well and canceling some of the events they had planned in the city. stuart: if they occupied -- not occupied, but disrupted the airport again, what's the chances the hong kong authorities, police or army, i suspect it would be the police, just clearing the place and ending it? susan: they have tried and they will try, probably with more hard line tactics and probably increasing violence -- stuart: confrontation. susan: rubber bullets and the like. stuart: could end badly. susan: let's hope not. stuart: susan, thank you. president trump confirmed reports that a russian nuclear missile exploded during testing. he issued this tweet. united states is learning much from the failed mission -- missile explosion in russia.
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we have similar though more advanced technology. the russian skyfall explosion has people worried about the air around the facility and far beyond. not good. walid phares is with us, fox news national security analyst. were they really developing a missile that could strike anywhere and evade radar? was that what they're up to? >> you know, this is not even a secret. they were a few months ago claiming that the mother of all missiles that no one in the world quote unquote, can stop, they are developing. i'm not sure of the idea this was a missile but what we are worried about is this was a nuclear incident, accident, and any kind of accident that involves any nuclear device is not just a problem for russia. it becomes immediately a worldwide problem. remember chernobyl. stuart: is this putin's chernobyl? >> look, this is basically what the russian military complex produces, but president putin will be very very concerned, first of all, at home and first
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of all, within his own military, if such an incident occurred and can occur in the future. stuart: it seems like the anxiety level is rising all the way around the world. what's going on in russia, hong kong, china, venezuela is still a communist society, cuba still is. north korea fires off missiles. anxiety all over the world. what's going on? >> look, from a global perspective, what's happening is that the old systems are now afraid of what's coming into their future because of technology. i mean, take a look at hong kong and china. china was thriving but has remained a communist regime. it become a capitalist communist regime, it can't work, then you have hong kong which is really a free market society and it's psychological, posing an economic challenge to china. that's why demonstrations may impact mainland china as well. stuart: is president trump part of all of this?
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is president trump one of the problems? >> actually, he has inspired many people, is inspiring many people around the world by being firm with regimes such as iran and being firm with regard to isis, being firm with china in terms of negotiating the markets and finances. that is inspiring people to demand more freedom. actually, the american model has been inspiring many societies around the world. this is not new. we saw what happened in the cold war. stuart: real fast. from america's point of view, does this end happily? >> i think it's going to end happily if there are no major incidents like the one that occurred in russia. what concerns me is some sort of nuclear defect somewhere. other than that, societies are, because of social media, because of technology, moving forward. they want exactly what we have, what we are offering. stuart: thank you very much, sir. we will see you again soon. >> thank you. stuart: better take a look at futures this tuesday morning. big drop on the market
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yesterday. very modest decline expected 11 minutes from now. how about roku? i have been calling it the stock of the year. next, we talk to someone who says if you want to invest in the streaming business, pick roku and forget about netflix. we have that person on the show. new video shows chris cuomo going on a profanity-laced rant after a heckler called him fredo. you will see it here. we've got it all on this program. this was me before liberty mutucustomized
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stuart: strong opinion from a wall street analyst who says you want to get into the streaming business, roku is a better investment than netflix. laura martin is with us. laura, make your case. >> so we think that roku is an aggregator, just like youtube is an aggregator, and therefore, it doesn't really mind whether disney wins or netflix wins or -- it doesn't care who wins. it gets 20% to 30% of revenue from every single service and that is different than netflix versus disney, where consumers are going to have probably to decide between the two, whether they want to pay $7 for disney or $13 a month for netflix. stuart: well, that's a pretty
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straightforward case that you are making there. i can see the logic to it. but would you buy -- are you recommending investors buy roku at these very lofty prices? i think it's up, what, 200%, 300% this calendar year? >> yes, it is up 300%. it is our top pick this year. i would say yes, because we estimate that youtube's value is $200 billion and roku's value is $14 billion and we do think that's the right comparable. stuart: fascinating. laura, you have the unique ability to make your case in 25, 30 seconds flat and we all understand it. good lord. what are you doing? you should be in broadcasting. laura, thank you very much indeed for being with us. we take note of what you've got to say. thank you very much. >> my pleasure. stuart: roku, buy it. got it. check that market. we've come back nicely. earlier this morning i saw futures pointing to a 100 point loss. now it is a 30 point loss for the dow industrials. stay there, please. we will take you to the opening of wall street momentarily.
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stuart: you better watch this. things got really heated between cnn anchor chris cuomo and a man who apparently insulted him. watch this. >> you are a much more reasonable guy in person than you seem to be on television. >> you want to play [ bleep ],
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anything you want to say about what i do on television, say it. >> listen, i don't want any problems. >> you're going to have a big [ bleep ] problem. >> what's the problem? you're different on tv. >> don't insult me like that. stuart: okay. called him fredo. ashley: fictional character in "the godfather." chris cuomo of course the younger brother of governor andrew cuomo. let me tell you how cnn responded to this, his employer. they put out a statement after this video became widespread, it says chris cuomo defended himself when he was verbally attacked with the use of an ethnic slur in an orchestrated setup. we completely support him. now, he has had other support coming in saying you know what, good for you, including our own fox news' sean hannity saying good for you. stuart: what you do on television is one thing. your personal life,
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face-to-face, don't do it. no excuse for that. there's something to be said for civility. the dow jones average is about to open with the rest of the stock market. we are about five seconds away. big question this morning. with all the downside movement recently, should you sell, should you get out? we are off and running and we are down just a few points in the early going. that is not a major selloff by any means. in fact, i see quite a few winners among the dow 30. after a couple of seconds, we are down about 30. show me the s&p, please. what's going on there? same story. we are down just, what, four points. that's it. a fraction of 1%. the nasdaq composite, where is that in the early going? it's down the same amount. very small proportion on the downside. the ten-year treasury yield, let's have a look at it. 1.63% as of now. gold, where is that? well above a six-year high now. 1,529 per ounce. it's up 12 bucks as we speak.
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d.r. barton is with us, keith fitz gerald is with us. susan's here, ashley's here. keith, first question. why should i just not sell right now and sleep well at night? tell me why i shouldn't sell. >> well, you can sleep well any time you like, stuart. but here's the thing. history shows that selling, trying to second-guess the unguessable, is a bad move. volatility always produces profit. the market is a forward-looking mechanism. if you are selling because of risk, that's a different matter entirely. but second-guessing the unguessable, no way. break out the magic eight ball. stuart: d.r., someone close to me said two days ago sell everything, stuart, for heaven's sake, why don't you. the market's reached an all-time high. just walk away. sleep well. why should i not do that? >> because a person like that probably told you the same thing in 2015 and 2016 and 2017 and 2018. stuart, to keith's point, when we look at trying to pick all-time highs and say this is the one, this is the big one,
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you stand a reasonable chance that you're going to miss a much bigger upside. do have a get-out point. do say if it goes lower than 15%, 20%, i'm going to protect my money and see what happens, but don't just jump out because there are some upsets in the market because we've seen this market is resilient. the fed's helping the economy, it's still strong. susan: are we trying to talk ourselves into recession? if you look at the economic metrics, we are doing pretty well. retail sales expected thursday, expected to show positive spending by a very strong consumer. by the way, when goldman sachs lowers their q4 gdp forecast to 1.8%, that's not exactly recessionary amongst general views, right? let's keep these in perspective. ashley: a lot of this is predicated on the u.s./china trade deal that's not working and fears that it's dragging down the global economy. that's part of the fear being played in here. eurozone numbers out today on data was multi-year lows out of germany and the rest. we know what's going on in
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europe. there are those concerns the rest of the world can drag the u.s. down. stuart: i'm worried about that, for sure, like everybody else is. let's not get technical but we are very close to where short-term interest rates are above long-term rates. the two-year is 1.6, the ten-year is 1.63. that can spell trouble for the economy. d.r., are we in for a recession? >> you know, we look at these rate curve inversions when they make this cross and people say it's because the technical part of it is because folks are thinking the economy's going to slow down. but when this happens, if we get this inversion, the shortest one we have ever had was a recession, eight months later on average it's about a year and a half later if it comes. we have had false positives, notably in 1999. stuart: what do you say, keith? >> i'm totally with d.r. on that. 14 to 22 months, maybe longer before you get a recession. the other thing to think about, all of that stimulus that came in during the global financial
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crisis has artificially pushed down the long end of that risk spectrum. i think this indicator is not what it's cracked up to be. at least historically. stuart: politically, doesn't really matter if we get a recession after the 2020 election. it matters to everybody in the country but politically it doesn't matter. does it come before the election, then it counts. uber, look at that stock. it continues to slide after reporting lackluster results last week. now, it's down to $36 per share. keith, would you buy it? at $36, would you buy it? >> no, i wouldn't. i don't think the thing's worth $15. i don't like that stock. i think there's a lot of other plays i would rather have my money in than that one. stuart: okay. i think -- >> rarely do i take the other side of something from keith, but i think this is a long-term accumulate, every time we get these pull-backs, i think you can nibble on these pull-backs. i would like to see this one turn around a little bit because we have come down from some
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pretty lofty heights. i think uber is in a great place and the mobility as a service space, i like it long-term. stuart: susan, should i sell my microsoft? move into uber? susan: that would be dangerous. you get cash flow already from microsoft, a proven profit machine. this company has been around for ten years, hasn't made one profit. i would say d.r. made a pretty good point, uber raised around $8 billion in the ipo. are you listening to me? $8 billion in the ipo raised and they basically had a one-time cost associated with it -- ashley: 4.2. susan: that's already half of the cash raised. stuart: okay. okay. i'm not going to do it. check the big board. modest loss, down, what, 20 odd points for the dow industrials. charlie gasparino from fbn reports that cbs and viacom have agreed to merger terms. formal announcement is imminent. been churning through this for a long time.
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cbs stock down. viacom -- sorry, cbs up 27 cents. viacom down one cent. advance auto parts. the profit fell short. down it goes, 4% loss there. let's check bitcoin. susan: let's. stuart: it's 11,100 a share. that's a flight to safety? i don't think so. susan: goldman came out with a note, they are putting a price target on bitcoin of $14,000. i can't believe that. goldman actually put a forecast. stuart: i hear keith say no way. susan: it won't get there? >> no way. i mean, it's preposterous they have that kind of valuation on something that's completely fabricated ostensibly for people who don't trust the government to begin with. like we don't have enough problems, we are going to pick a cybercurrency you can't use? $14,000 is preposterous. stuart: a bitcoin owner must have zeroed right in. pulled back out again.
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we got a close-up there. just as you talked about bitcoin. where's the price of oil this morning? show me, please. the price of oil is $54 per barrel. here's what i'm interested in. we are back to declining gas prices. $2.64 is your national average. we are falling sharply. by the way, the dow just turned around. now we are up 38 points, 25,900. okay. maybe we should start investing some of our spare cash, not pulling out. putting it in. dow component walmart getting ready to report its profits. they come out on thursday. looks like its online area is doing really well, giving amazon a run for its money. as i understand it, walmart's online operation going better and expanding faster than amazon's online selling. that's what i hear. >> very true. from a lower base. stuart: much lower base. >> but they are growing faster. i think when you think of walmart, you can think of growing online but i think the word i like from walmart is
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multi-channel. they are doing a lot of things to bring people in, doing things with delivery, doing things with curbside pickup to get more foot traffic into the stores. i think walmart's on a good trajectory. stuart: wait a second. susan li, who wouldn't be caught dead in a walmart -- susan: that is not true. i have been in walmart many times. i love buying my gummy bears there. stuart: you were laughing at d.r. on his statements about walmart. what's your problem here? susan: i don't have a problem with d.r. i love d.r. but walmart, we are expecting profit to fall about 5% from a year ago, and you know, we need that 40% growth in e-commerce because they are starting from a low base, right? it will be very interesting to see what they say, whether we have seen it crimp into their prices and profitability. stuart: you listen to the call as opposed to the actual results. dow component nike, our sneaker subscription service, okay, i think you pay a minimum of 20 bucks a month. ashley: different tiers. 20, 30.
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stuart: it strikes me that the subscription model is like the delivery model. it's a must-have kind of thing. susan: like a netflix model for children's sneakers. that's basically what it is. >> trying to bring you into their ecosystem. if you say i just want nikes, you are willing to pay for that, they talk about a $10 billion children's shoe market, i think this is a very small sliver of the market. susan: but think about it. they are starting small. i think this is a test case to roll out an adult version in the future. they are looking for three tiers here. if you think about it, this is recurring revenue. they get payments every month from these children's subscriptions and they get the kids hooked on to nike products young. stuart: but they've got to get people to sign up. will people sign up? susan: they have 10,000 members on the easy kicks which was a trial already. stuart: not bad. not bad. keith? what have you got? >> having raised two boys and acutely aware of how fast their feet grow, i can totally understand where they're going with this. i think it's going to be a smart
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move. but really, what i question is how many people want to put previously used sneakers on their children's feet. that's the unknown. but the subscription model is like an annuity. i don't think a lot of people will send the shoes back. stuart: not previously owned. it's brand new, isn't it? ashley: as soon as they outgrow them they send them in and get a new pair back. susan: if i was foot locker, i would be concerned. direct to consumer? this could be nike killing the middleman as well. stuart: that's what a subscription service does. it kills the middle person right there. you leap over their head and you lock in cash flow. i can see that. oh, look, 9:40 eastern time. sorry, out of time, keith. we didn't spend much time with you. next time, i promise you will hog the entire show. d.r., you're all right, too. thanks very much. check that big board. talk about a turn-around. that's a turn-around. i'm not sure what just happened, if there's anything in the news that created this but now we're up 68 points. 25,960.
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universal calling the controversial movie "the hunt" after facing significant backlash. president trump even called hollywood racist. but "gray's anatomy" star isaiah washington says that is not true. he joins us later this morning on this program. from hong kong to russia to north korea, it's the summer of discontent around the world. certainly deep anxiety. my opinion, take a deep breath. the rest of the world still looks to america as dynamic, free and prosperous. you will hear my opinion on that top of the 11:00 hour. next, lot of people turning to gold as a safe haven. if you want to invest in gold, what's the best way to do it? gold bullion, gold coins, gold mining stocks and etfs? we have answers coming up next. -driverless cars... -all ground personnel...
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stuart: apple is a dow stock and it's contributing significantly to the dow's gains. apple's at $203 right now, up 1.3%. now look at the big board. we've got a 71-point gain for the dow. we had a sudden move upwards just a few minutes ago after it was announced that china and u.s. trade representatives have spoken and will speak again in a couple of weeks. that was the news. ashley: i guess it's encouraging, right? stuart: i guess it's encouraging. now we are up 83 points. ashley: some products being removed from the tariff list. maybe that is helping as well. stuart: okay. that's interesting. we will get more of that later. the nfl taking a big step towards legal sports betting. hold on, susan. i thought that sports betting had now been legalized, it's not legal everywhere, but you can do
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it. what's the nfl doing that's different? susan: think about it, the nfl has really been behind other major league sports like the nhl, the mlb and also nba in signing multiple marketing partnerships and also, the leagues sell data to these sports betters and operators and that's how they also take in cash as well. the nfl finally getting into this and given that the nfl is probably the most lucrative u.s. based major league sports league, they should be making a ton of dough. they have now signed a multi-year deal with sports trader, a switzerland firm, and they stand to make about $2.3 billion in projected revenue off sports betting. stuart: show me the big board again, please. now we are up over 120 points. i think we've got to get more background on this china trade story. the story is that chinese and u.s. trade representatives have spoken. they will be speaking again either next month or in a couple of weeks' time.
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some products made in china have been taken off the tariff list. ashley: based on health, safety, national security and other factors, will not face additional tariffs of 10%. stuart: they will not face those. so there's some exclusions. ashley: right. stuart: if the 10% tariffs are imposed september 1st, it won't be a blanket tariff attached to everything. some products from china will be excluded. ashley: right. stuart: result, the market is now up 233 points. which means that the hard line from trump has been mitigated if some products are taken off the tariff list. ashley: additional tariffs on products will be delayed until december 15th including cell phones and laptop computers. stuart: okay. that's important. susan: that's why apple is up. stuart: that's right. that's the news behind apple. okay. so up 267 as we speak. we will update this china trade story all the way through the day. i want to get to gold. oh, it's had a terrific run recently. it's actually at a six-year
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high. $1,518 per ounce. i want to bring in someone who knows all about investing in gold. he's a banker, specializes in it. his name is stan bardy. he's with me now. welcome to the program. >> thank you. pleasure to be here. stuart: as an ordinary individual investor, pleasure to be here? just wait, son. just wait. i'm an ordinary everyday inve investor. i can buy gold coin, gold bullion, gold mining stocks, an etf, gld. what's the best way for me to invest? >> let me tell you where the big picture is, why gold is going up. gold is going up because there's a huge shift going from -- to hard assets, to commodities, to real estate, because for the last seven, eight, nine years, we've had the lowest interest rates ever. the money that you can make in the market is phenomenal. you can borrow money at 2%, 3%. you can get 8%, 10%, 20% return. i think the shift is not going to hard assets. then you say in hard assets, the one asset class that is closest to money is gold.
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what do you do with gold? the best return you always get in gold is in stocks. stuart: so gold mining shares? >> gold mining shares. the best return is always intermediate and junior. junior, intermediate, major gold stocks. stuart: wait a second. gold, if i buy a gold coin, there is no yield whatsoever. i might get a capital gain. that's your lot. if i buy a big chunk of bullion, a kilo bar or something, same story. absolutely no yield. pays no interest. i'm looking for a capital gain. but gold mining shares, do they pay dividends? is that -- >> generally not. in gold, you are really looking at capital gains. what you find when gold moves up from $1500 to $1700, gold stocks will go up two or three times. so we have seen that the last gold cycle we saw was from '03 to 12. if you look at the indices, they went up two times. they did extremely well because
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ultimately the market will pay for assets in the ground. if they believe gold is going to go higher, if your mining company has great assets in the ground, they will pay for it. give you an example. stuart: i'm sorry. i have to interrupt you. i've got to break away. i've got to show our viewers what's going on on wall street right now. i'm sorry about this. but look, just look at this. now we are up 430 points. every dow, every dow stock, all 30 of the dow stocks, are up. every single one of them is in the green. ashley: the ten-year yield shot back to 1.68. we are having this opposite effect. stuart: the ten-year yield goes up -- ashley: bond prices go down. stuart: look at that. we are up 400 points for the dow industrials. we've got to get back to this china news because that's what's moving the market. susan: basically we have more products on this exclusion list. apparently the tariffs will be delayed on video game consoles, certain toys, computer monitors and certain items of footwear and clothing. also, that's on top of the
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computers that we just talked about and cell phones. think about the big companies that are being affected here, toys will be going into walmart. talk about video game consoles, that's xbox, microsoft, right? and the cell phones is apple. think about who is leading the dow at this point. stuart: can i just make a judgment here? it would seem to me that those items excluded from tariffs are the kind of items that we would be buying in the holiday period which is coming up fast. susan: back to school. stuart: what the administration is doing here by excluding these products from tariffs is mitigating the effects on the consumer. ashley: right. and some of these other tariffs, remember, they were going to go into effect september 1st, now being pushed back on some of the products to december 15th. stuart: december 15th. okay. well, that's -- ashley: allowing more time, perhaps, for talks and to sort things out. but that is why this market is suddenly boom. stuart: that is an easing of the whole tariff position story.
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when you ease the tariffs and imposition of tariffs, the market likes it. ashley: some are being delayed, others are being removed from the tariff list. stuart: first hint we saw of the market reaction was with apple. suddenly apple went up a couple of bucks, i don't know where it is now. but that led the dow, led the market. then the full news broke. the press release has been announced by the trade people. and away we go. we are now up 315 points. susan: technicals are at play in these markets, right? so when you have the treasury yield hitting a certain point, it triggers sell calls or triggers buy. right now, you are looking at this, that's what happened yesterday afternoon when we had the ten-year treasury yield cross paths, 1.65 and that's when you had all the sell orders trickle in. right now you are looking at the algorit gogorithmic trading pop buy. stuart: let me retrace our steps
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for a second. when our team came into the studio this morning very early in the morning, the dow industrials were expected to go down over 100 points at the opening bell. it's called the futures market. it was pointing due south. why? because the hong kong airport had been virtually closed again and it looked like we were gearing up for some kind of confrontation in hong kong. we still are. then literally 10, 15 minutes ago, we got the news about an easing of these tariffs that were supposed to be imposed on september the 1st. the imposition has been delayed on most items -- ashley: some delayed, some removed. stuart: some items removed. ashley: also the chinese commerce ministry says it has agreed to conduct a phone call again in two weeks with u.s. trade representatives. that's another positive sign as these ongoing talks go. up until now it's gotten fractious with threats on each side. stuart: again, i have to think that the administration is
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easing any impact on consumers as we head towards the holidays. that seems to be one of the big deals that's going on here. susan: also concern, removing concern from the stock market as well, because yesterday it was all about the goldman sachs note which basically said there will be no deal before 2020, and the 10% on $300 billion worth of goods will be going into effect on september 1st. that's why they also lowered their gdp forecast for the u.s. economy. i would say consensus on wall street is there will be no trade deal before 2020. so if you remove some of the barriers, improve some of the sentiment, that might also improve some of the stock buying as well. stuart: that's an intraday chart you are looking at now. we're not big on charts but when they show the story, we use a chart. look at it. we open down a bit but now going straight up, 357 points, to be precise, as we speak. i want to just run through as many stocks as we can because this news is just happening. a lot of stocks have completely reversed. director, can you get me the big
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tech names? okay. start with dow winners. mcdonald's, $219 a share. up two bucks. apple is now up $8. it would be a primary beneficiary. susan: but think about this. every dow dollar gain is seven points added to the index. look at apple, we are up eight bucks already, eight and a half. stuart: that's 50 points for the dow. it's up 350. ash? ashley: there was a phone call today as well, they agreed to talk again in two weeks' time. on that phone call was the chinese vice premier and the governor of the central bank of china, both of whom, this is from chinese media, saying they launched solemn representation on the u.s. proposal to race tariffs on chinese goods on september 1st. what came out of that phone call is what we have just seen. some of these tariffs are being delayed, other products are being removed. so china lodges the complaint
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and wait a minute, the u.s. backs off a little bit. stuart: it started backing off. that's interesting. ashley: they lodged the complaint. now we have these announcements. stuart: i have to go with that idea that it's backing off. let's see what edward lawrence has to say. what can you tell us that's new, edward lawrence, at the white house? reporter: you know, i think your assessment is actually right. this is a little bit of backing off of some of the tariffs, and the president has said two weeks ago, i believe it was, that apple would not be immune to the next round of tariffs, and it appears here cell phones are not included in that. you know, in addition, the u.s. is looking for an agriculture buy so if we backed off now on certain tariffs after this phone call, you may assume there could be something on the chinese side to show their good faith related to this. but again, this is progress for a trade talk that had been stalled up to this point. we have a phone call which happened just a few hours ago, if you look at the timing on this, so this is literally breaking news. the chinese have put it out and
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the u.s. have put it out. but again, good news, the fact they are still talking and there could be now another trade meeting here in the united states in september. this all points in a good direction. stuart: thank you, edward. left-hand side of your screen, more really, really good news. the dow is up 400 points. that's 1.7%. big gain for the s&p, session high right now. you know, i started the show this morning 56 minutes ago saying are you worried about your money? maybe you should sell. well, d.r. barton was with me at the time and he said no, don't sell. man, were you right or what. >> well, in a world where we're on tinterhooks, pins and needles about this u.s./china trade stuff, and every little thing that gives us any glimmer of hope is going -- we are going to get the market spike every time that happens. stuart: the ten-year treasury now is up, the yield has gone straight up to 1.69%. you know, look, this is not just a mere headline. this is a tangible move.
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susan: correct. stuart: tariffs on a lot of products, delayed until december 15th. and removed entirely from a whole bunch of products that we'll be buying for the holiday. susan: what about currencies? we know there was reaction to the chinese yuan crossing through that seven level last night, we had 7.03, that was a midpoint setting. right now we do have the chinese currency, by the way, also strengthening in the offshore markets with the dollar moves on the back of this announcement. that's positive, given that, you know -- ashley: reversed the whole sentiment. is the sentiment now shifting to the point where we think well, maybe we will get some kind of trade deal if we take the tariffs off and maybe they buy some soybeans? >> i think it is the feeling, stuart. i wrote an article earlier this week about the fact that we got, in may, we had a pullback in the first half of may, a little rebound, then more negotiating. big down into the end of may, then a
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. this is shaping up a lot like that. down move a little move up, more pullback as they negotiate. now they're saying let's kick the can down the road to december a little bit. let's let the economy take over and if that's driving things, earnings are a little better than expected. we're still at the great employment rate. we still got so many positives going on in the market, the big "fang" stocks are growing high double digits that we love. they make that worried about the next up leg. stuart: susan, does this put hong kong on the backburner, side burner, relevance of hong kong to the trade dispute that is pushed away a little bit? susan: that is a great question. i'm looking on twitter, some of the comments are tariff easing be a silent deal on hong kong, the u.s. stays out of it? china deals with the problem in
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its own backyard. one less headache for china to refocus what is happening just across the border. stuart: president trump has given xi xinping a break, could you say that? susan: possibly. stuart: can i interpret it like that? maybe i'm fast and loose with my interpretation, i'm not sure? >> from a market perspective, stuart, when you get some relief, the hong kong market and the china markets have a big drop down, including a big gap down. when you get some relief from that, that gives you more license to go out and do some things that could cause a little bit of market turmoil. if you get more cushion under you, it is much easier to push hard down in hong kong, if things were already rolling down the hill as hard as they were. susan: that is definitely a reprieve. wouldn't you say china gets more out of this than the u.s. does with the delay until december 15th? ainsley: yes.
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removal of products. what about agricultural goods? we have a positive news on china trade. back after this. no, we're still going. let me give you a proper recap what's going on here, okay? the news is that stocks took off on news that tariffs on some chinese products will be delayed until december the 15th. and there will be no tariffs on a whole range of products like computer parts, video game consoles, footwear, clothing, all the kind of things. susan: toys. stuart: thank you susan, all stuff we're buying in holiday season coming up. edward lawrence, back to you. what's new? reporter: stu, the u.s. will not
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make the steps in a vacuum. there will be something probably on the chinese side that is going to happen. since june, 33 chinese companies announced their stock market, that they will move some production out of china. you know this could be a catalyst, that china needs to have, these are real changes, that you can't get back, they are possibly looking at structural changes here. they're trying to avoid. china may be giving up something in order to get this delay down the road, to december 15th. that time frame could give the chinese sometime to come to the table with some agreements or the u.s. to come with some concessions. so we'll have to see. it gives us time to talk is basically the point there. the chinese are looking at some structural changes in their economy which i'm sure they don't like. stuart: so you're saying essentially that if you have gotten a delay until december the 15th, that is extra time to come to some sort of deal, some sort of arrangement.
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there is time involved. time available to make that change? make that progress. ashley: would be interesting to see, does china reciprocate, do they start buying more agricultural products? do they start bringing in soybeans which they weren't before? stuart: that is a possibility. ashley: which would give the market even more. stuart: the structural change edward was talking about. that is a big deal. susan: especially when the u.s. was asking them to change the laws in china. stuart: that's a leap. susan: takes a lot of consensus by the way across the entire communist party which president xi was finding it hard to get. stuart: stick with what we've got. tariffs on some products delayed until december 15th. there will be no tariffs on products we're buying on new year's, holidays. scott shellady with us. his proper title founder of the
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cow guy group. we'll get by that one. what do you make of the news on china trade, scott? >> my head and my heart are conflicted. my heart is happy. in this business you have to celebrate days like this. you have feeling of the bad days we've seen of late but at the same time, stuart, i'm not so sure we'll get a deal anytime soon, even after the election. i think this could go on a lot longer than we think. i'm happy to see things delayed and hopefully there is some time to get something done but you know what? as the supply lines change, as a bigger picture moves forward there is every possibility we don't get anything done. if donald trump's elected again, we could be in this position again just after the election. until we have a deal, i'm playing it like we have no deal. stuart: okay. hold on a second, scott. dr, is a little euphoria creeping in here, grasping at straws and headlines? >> i don't think it is so much euphoria. apple is up 10 bucks. it is up 5%. there are real things moving.
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deere is up 4%. people are voting with their money, stuart, that things are actually happening. to scott's point i think that pushing this down, there could be some positives if the president is still saying i'm working hard-line on china. that's why i have waited. didn't get it done by the election. if it is still in play, that could spin well for the trump administration. susan: you see how one-sided the trading has been, right? people were not thinking there would be any deal. there would be imposition of the tariffs on starting on september 1st. one-sided trade of last few weeks is reversing now. people have been caught off-guard. stuart: what has klein given up? ashley: we don't know yet. stuart: edward lawrence, are you still there? reporter: yes i am. that is my question. i think that is an important question. do you know if china has given up anything or softened on something in order to get this tariff delay? reporter: i'm actually making
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phone calls literally right now on that, to try to figure out what is the back and forth related to this. because the u.s. is not going to just back off. i know the u.s. wanted agriculture buys. they were looking for it. there was an apparent agreement at the g20 in osaka, that china would buy agriculture. they said they would buy it initially and turned around they said they wouldn't. we can expect some sort of agricultural buy but i will try to confirm that. u.s. wants some movement in protecting intellectual property, something the chinese refused to do. the u.s. trade team is looking to add back concessions that were made. we'll see where we are at the beginning of the process. or has there been some sort of a breakthrough in the process. we're trying to figure out where we are in the process at the moment. the u.s. will certainly not do something like this in a vacuum. stuart: okay. the immediate impact, it was immediate on the stock market. as you can see the dow is up
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over 400 points, regaining a lot of lost ground. yesterday's lost ground. ashley: reversal goes on. gold down 10 bucks. oil up more than 2%. it is a whole reverse opposite to what we've been seeing for a while now. stuart: what we'll do, we'll put as many stocks as possible on the left-hand side of your screen, so we can go through this extraordinary rally. we're up 400. expedia is up. electronic arts, bed, bath & beyond, comcast, all sectors are going up. all sectors got hit. all sectors rebounding. in different degrees. ashley: except for gold. stuart: except gold, thank you. but the primary beneficiary at the moment is apple. that is a gigantic, almost trillion dollar company. ashley: and the semiconductors. stuart: it is up about nine bucks. there you go, look. apple is up 9.66. google is up 23. amazon is up 37. facebook up four.
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microsoft up $2. susan: tariffs being delayed are primarily in the consumer electronics for laptops and cell phones and videogame consoles as well. looking at some commentary out there, seems the primary beneficiary of the delay in tariffs will be u.s. consumer especially come holiday time, which also boosts the u.s. economy. you want the economy doing wellheading into 2020, if you think about it. stuart: got it. >> to complete the litany we look at things that were safe havens going up recently. utilities, big consumer staples companies are down. southern is down 1 1/2% after being up 1% this morning this is complete risk-on reversal, stuart. stuart: is scott shellady still there? >> yes i'm here. stuart: scott, listen to this, you don't think we'll get a meaningful deal until after the election, okay. but it seems like we have a very modest deal right now, doesn't it? you delay the tariffs. you take the tariffs off of a
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large number of products just in time for the holidays. we hear maybe china is giving a little ground on the purchase of agricultural products maybe, not confirmed by any means. maybe taking a look at some concessions they made and withdrew a couple months ago. that sounds like an interim deal on the way to something better, no? >> no, it does. like i said my heart is happy. but you know what, stuart? i'm suffering from deal delerium. if you're looking at agricultural markets last two years. we started off getting excited by sawing negative news we hammered the market. slowly but surely over time the market moved less and less to good and bad news. we're seeing that play out in the equity market, asset price markets. every time we see something good the market jumps up and celebrates. on negative news it gets slammed. slowly but surely you suffer deal dell lear rum. what really changed with the
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u.s. economy, what really changed with the global economy? the global economy will benefit from a deal between the u.s. and china, no doubt about it, but until there is one, it is hard to say to everybody out there, hey the water's warm, pile back in, this thing's over. that i want to be leery of that. we see that happen in the ags time and time again. stuart: anybody on the show this morning who is saying pile back in, this is great news. off to the races, sports fans. nobody is really saying that. i think most people are welcoming which is obvious rebound. we look at a moment, reversal, not of stocks, but like gold. 10 year treasury, can we also look at, see the price of oil? show me other markets if you can please. they're kind of scrambling here, but worth looking at it. micron was up 6% there? look at gold, down eight bucks. back to 1508.
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ashley: oil up. stuart: how about the price of oil, where is that? susan: up. ashley: 2 1/2%. stuart: that will improve world trade, maybe a little extra for the global economy. you're right, we're up 1.28, back to $56 per barrel. what else were they saying. >> that pesky bitcoin is down 300 bucks from where we talked about it earlier today. flight to alternatives, not necessarily quality. everybody saying i don't need to buy bitcoin, man the markets are going up. stuart: dropped below $11,000 per coin. susan: treasury yield, jumping six basis points in a matter after few minutes. the need for safety has dropped off. stuart: 10-year yield up 1.69, is where it is now, it is not this inverted yield curve. the two year treasury yields less than -- ashley: now we'll not get recession. stuart: as it is supposed to do, am i right? okay? all bets are off. ashley: thank goodness.
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stuart: the dow is up 400 points. s&p up 42. look at the nasdaq. nearly 2% higher. the reason for that the tariffs will not be imposed on, i'll sorry, computer items. videogame consoles, computer items. susan: correct. cell phones. stuart: obviously technology, cell phones did you say? susan: cell phones, toys, footwear, clothing. stuart: wait a minute, are tariffs imposed on anything? ashley: that's a great question. stuart: if you delay until december 15th. susan: some tariffs are being delayed, not all. stuart: what's left? i don't know. we'll do our best, dear viewers to find out. at the moment we're celebrating a nice stock market rally. look at the yield on the 10-year treasury. when we came in this morning it was 1.64. now it is 1.69. that might not mean too much to you, in the world of finance, that kind of move is absolutely huge. apple is up nine bucks. micron is up 5.7%.
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semiconductor, on, ticker symbol, up nearly 5% higher. susan: check the chip stocks, philly semis, chip stocks are lifting the tech sector because of components, right? there is an effect with actually those put into these actual laptops, mobile phones. ashley: the big picture is bought a reprieve, bought time. doesn't mean it will happen but bought more time. stuart: definitely. i can hear scott shellady laughing in the background. ashley: not going to happen. stuart: laugh loud, son. >> no, i'm just as buoyant as you guys are, number one but number two, put it in sporting terms the last time guy struck out twice, hit in the head with a fastball, today he hit as grand slam, where does he stand as what kind of a hitter he is?
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we don't know. we have stood news. it needs to continue going our way. the trend is your friend as traders might say. i have deal delerium, i can't get too excited or upset. stuart: i never seen you with deal delerium. i think ratings will to up to see this. scott, thank you. obviously it's a very big day for your money. stocks turning around just a few minutes ago on some decent china news. we'll have all kinds of extra coverage for you. look at that we're up 408 points. back after this. (vo) the ant mindlessly marches on.
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stuart: the news is this, the administration has delayed terrorisms on chinese products, most of them and said no tariffs on a whole variety of chinese-made goods, footwear, clothes, toys, seems to be an
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opening, seems to be a opening for both sides. the dow industrials are up 430 points, 1.6%. that is true across the board. s&p, nasdaq, all the same. straight up. president trump on china as it is in. as usual china said they were going to buy big from our great american farmers. so far they have not done what they said. maybe this will be different. that is kind of a teaser, isn't it? the president is teasing us with that tweet. comes out with a decision on tariffs. and then says, so far they have not done what they said. maybe this will be different. very interesting. i'm going to move to a completely different subject. i am going to real estate for a moment. there is something significant taking place, a housing boom in rural, smaller market cities, like, for example, boise, idaho, shawnee kansas, grand rapids michigan, who would have thought a real boon in housing there.
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i want to bring in tariq el musa. famous guy, home of hgtv's ""flip or flop"." welcome to the show. >> thanks, guys. stuart: don't overpower us, don't over power us. this is fascinating. >> yeah. stuart: you can flip homes in places like boise, shawnee, grand rapids, which have never been on the real estate market for a long time. tell me what is going on? >> all all about the affordabily index, l.a., san francisco, new york, for entry level buyer or new buyer to come into the market, a lot cannot afford to pay 500, 600, $700,000. where do you go if you can't buy the a markets? you go to the b markets. they are coming more popular because people are looking for new areas to live. stuart: are people like you taking advantage of low interest rates, the investor buys the home and flips it?
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>> absolutely very important. myself, i have 93 single-family house rental properties across the u.s., in different markets, north carolina, south carolina, oklahoma, just different markets like that. the reason these markets are emerging markets because there is a housing shortage. the price range of these properties for entry level buyers are affordable. people can buy and live in these areas. stuart: are there high-paid jobs in shawnee, grand rapids, michigan? >> i'm sure they are that is why people are moving there. stuart: are you buying homes in those areas. >> i have not yet. i'm going there, you're going there which will raise the prices? >> just in general real estate, real estate. my platform is tv i have to share the knowledge with the tv. stuart: is your show continuing? >> you know, season 8 of "flip or flop" is on right now. i start a solo series where i mentor new flippers, flipping 101. we can't talk about it yet.
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we'll see where ratings are. stuart: you will have a season into 9, why not? tell me why you might not? >> looking likely. stuart: you're making a fortune, for heaven's sake. why wouldn't you continue isn't. >> i love flipping houses. love working with hgtv. i don't see why there would not be potential for season 9. sees san 8 ratings are doing very well. we've been doing it a long time. stuart: as a flipper, you put 100 grand in, what are you making out of it? what are you looking for? >> profit is 10 or 14%. minimum on a deal net profit, 30,000. i will do lower end home in different state other than california i will make about 30,000. stuart: what is the primary improvement you do? kitchen? >> ones in california are so beat up. doing full guts down to the plumbing, electrical. stuart: we used to call them scrapers? are you doing scrapers? >> bigger disaster, the biggerrer reward.
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i say it on the show. i like taking something so awful, making it beautiful. selling it to a family that falls in love with it. stuart: i'm such a nice guy, not as famous as you, you are about to start season 8, am i right? >> season 8 of "flip or flop" just premiered august 1st. on every thursday at 9:00 p.m. stuart: thank you for being on the show. >> thanks for having me. i even got dressed up for you. stuart: thank you very much. >> almost put a tie on. stuart: don't get carried away, son. tareek, thank you for being here. chick the big board, high of the day. i do declare. 471 point higher. 1.8% on the upside. this is all about the relaxing of tariffs. some, most are going to be delayed until december the 15th. ashley: some gone away all together, some gone away all together, thank you. on key products, videogames, toys, consoles, computers clothes, footwear, something
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we'll buy for holidays. no tariffs on that. next case, president trump visiting a energy plant in pennsylvania today. he is talking about america's energy dominance. so are we. more "varney" after this. nah. not gonna happen.
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while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call... to save $500 off bath walls with your walk in bath. or visit kohlerwalkinbath.com for more info. stuart: the high of the day, we're up best part of 500 points on dow industrials. why? because the administration has delayed the imposition of some tariffs on chinese products until december the 15th and gotten rid of all tariffs on a wide range of products. got rid of tariffs all together. very strong news, positive news
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on the tariff fight with china. i want to bring in beverage company ceo, brent will list, because he run as large beverage business in the united states and in china. i want you, brent, to tell me, what is impact of tariffs already levied on things like aluminum? what is the impact on you? >> this news is great and euphoric but my flip is, we get taxed on glass. we get taxed on aluminum, about 10% incremental. that has to get passed on to consumers, because our suppliers of glass and aluminum, fully integrated in china, they are passed on to us. we look transferring production away from china because of those issues. it is not just that issue. it is issue of operating in china. the rhetoric there is really challenging. stuart: so you do a large business in china. gross revenues of how much in china, your business? >> do about 75, $80 million a
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year, for a small cap company like us, 25% of the business. some american companies there are down 30, 40, 50% because of all the rhetoric, because of all the softer pressures on registration and all sorts of other things, doing business in china. it is really challenging. therefore american companies, we haven't faced those kinds of difficulties, it is challenging there, and challenging for tariffs that are already there in place. stuart: are you going to move, move the production? >> there is no way to move. such a fully integrated economy, and fully integrated economy there is no way to change from it. we applaud the work for the tariffs. you have to do those things to balance those kind of things. short-term pain for farmers. short-term pain for us. long-term this we'll see. stuart: you're feeling the pain. >> we're feeling pain. stuart: the dow is up 500 points. a long time since i saw the dow up 500 points on the back of this tariff news, but while i got you, you offer a alternative
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to soda, don't you? natural drinks. >> there has to be alternative, right? diabetes is rampant. that is die beat in a can. stuart: i was in a supermarket the other day. i was looking at drinks counter, there must have been 50 different soft beverages, not alcoholic, sodas, juices that's,. >> there is better stuff out there. there is 50 feet a tsunami of sugar at you. just now retailers are starting to make changes there. they're just now starting to make changes. stuart: where do your products feature? >> they all have sugar, some have high-fructose corn sirup which we never do. we see that trend changing in china. we're seeing the trend change worldwide. stuart: are consumers conscious whether high-fructose sugar or whatever else? >> they're starting to get smarter, stuart, around the world they're starting to get smarter. stuart: i'm looking at that drinks case. it's a refrigerated case. there must be 50 varieties.
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there has to be a shakeout. there isn't room for all that lot. >> you talked this morning about walmart.com, talking about nike going direct, doing subscriber system. all the new start-up companies, especially in the cpg industry are going direct to, build the e-commerce business. we're lucky. we have 171 million-dollar e-commerce business because you don't have to pay those 50 margin points at traditional retail and compete against that sea of confusion that's there where the cokes and pepsis dominate. so there is some things changing in the industry. it is good for us. stuart: what about cbd? >> it is coming, coming wordwide. we launched it in hong kong. they need it given the anxiety over there these days. stuart: is it a passing fad? >> i don't think so. just next generation of functional ingredients, whether it is collagen in there or protein or plant based or cbd, all this is just the trend. we think it will be like the fda
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is thinking a huge business, not just a small business. stuart: brent willis, new age businesses. fascinating. very timely appearance. we appreciate it. thank you, brent. outrage, a lot of it, over the horror film "the hunt." about rich elites hunting and killing deplorables. president trump went so far to call hollywood racist. actor isaiah washington says that doesn't apply to everybody in hollywood. what timing, we have a socialist professor who wants to get rid of grades in schools. he says grades are capitalism in action. can't wait for that. but the dow is up 500. there is good capitalist news for you. we'll be right back. ♪ fact is, every insurance company hopes you drive safely.
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giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands? stuart: the high for the dow ask a plus 529. now we're up a mere 492. we'll take it. some individual stocks that are really moving, first of all, best buy, up 8% that follows the announcement of delay of tariffs on some chinese products like cell phones and laptops. best buy up 8%. apple, a winner, up nine dollars, $210 a share. bring back edward lawrence at the white house who has got details is not going to be hit with tariffs, right? give me the list. reporter: exactly.
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stu, and ashley, this is what is going to be under tariffs. there are some things that are not under tariff which you mentioned, or delayed until december 15th. this is still going to be under that tariff on september 1st, should the president choose to go forward with it. we're talking about agriculture, things like, livestock, meat, milk, sour cream. also steel, steel-related items, pipes, wires, anything related to steel coming from china. now it is getting hit with the steel tariffs but in addition to that, it will be a additional tariffs on top of the steel tariffs. so that steel industry. also like, art supplies. talking about artwork, sculptures, artwork, art supplies, those will continue to be tariffed, if they come in, should the president decide to go forward with the tariffs on september 1st. this does give breathing room, according to the u.s. trade representative's office in a tweet 20 minutes ago, giving breathing room for school supplies, getting ready for
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christmas. black friday is covered by the delay which is december 15th. there are a lot of, this delay gives time for both sides to continue to talk, stu, but still some things would be under tariff should the president decide to go forward with that. stuart: if that is your phone ringing there, you have time to answer it. come back and tell us. reporter: that is my phone. i've been making calls on this. stuart: don't worry, son, it's a rock and roll day. we appreciate it. capitalism is obviously doing really, really well for us at the moment. the dow is up 500 points. but i will make room on this program, maybe 2 1/2, three minutes to, let, bring in a marxist professor. why am i doing that? because he is talking utter nonsense. i want to expose is. he wants to get rid of grades in university. he calls them capitalism in action. he is back. richard wolff, democracy at work, economics professor at university of, new school in new york city? >> yes. stuart: without further adieu,
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why do you want to abolish grades in college? >> because they are a cheap shortcut to actually evaluating what a person can do. if you want to find out what the genius is inside of every person, uniqueness of us as individuals you have to spend time and effort to find that. einstein failed in math and physics but we were lucky that the genius that was there was able to flurish later, not because of his grades, but despite them. all i want, all i want is to be able to say to people, look, don't rely on a, b, c, the way we grade potatoes. give human beings respect of finding a way to engage them and find what they can do in a general way. it would cost more money but either we care about that or we don't as a society. stuart: medical students, i'm damned if i want to be operated on by a doctor who had no grades what so every, just subjective judgment of his professor, you know what i mean? >> i've been a professor all my life. do you think a, b, c, is not
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subjective judgment. you're not aware how the system works. stuart: no, address medical students. >> medical students is like anybody else. they game the system because they have to. stuart: they don't know how to cure a broken arm or fix a broken arm, they don't know it. that is objective fact. >> right. but whether they can fix each individual broken arm that has its unique qualities depends on quality of their -- stuart: get out of here. you just lost. >> not at all. not at all. that is why people look for the best doctor. they're trying to figure out, there is lots of doctors who have as and bs from the right medical school. we're really concerned about the right one, we know those judgments come out of a and b are very variable. they can't be relied on. if you do rely on them, then you're not being very smart about what's really going on. stuart: you just, you're a marxist. you want to exercise political control over your students. you give them a grade, tell them they're wonderful if they vote your way? >> if i wanted to do political control i would introduced a class, kind of the way you
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introduced me as somebody who is speaking nonsense. i wouldn't do that. stuart: but you are speaking nonsense. >> but you're the journalist. stuart: objectivity -- >> to introduce me that way. stuart: that is the way i am. you were expecting it. you knew. >>, you didn't take offense. >> i did. stuart: what are you going to do about it? >> i'm a polite fellow. stuart: you better be nice to me. it is my show. i have my name on it. you do not do away with objective judgments how much students know. you can't go away from that. you think i would hire somebody, who had been in your classes and you said, oh he is a fine and dandy young man and woman, oh who, you would think i hire that person -- >> part of the reason you hire me -- stuart: i didn't hire you. >> invite me because i have certain credentials. stuart: no, the reason we invite you, nonsensical ideas which i wish to expose to our audience so they can make the same judgment as me. >> i understand that.
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you reminded me. this is entertainment. not anything else. stuart: ooh, no, information. it is an forming our viewers what the devil is going on in our universities. >> yes. stuart: taught by marxists. producing marxist. >> very few. stuart: whoop-dee-do. >> very few. stuart: thank god. richard, it was fun. i mean okay, you're insulted. >> i wasn't insulted. stuart: you said you were? >> no. i wasn't insulted. i was a little bit put off introducing what i have to say as nonsense. stuart: but i bet they watched? >> they watched. they might. they might. stuart: rich adder, you're all right. we'll see you again soon. the president is on the the move this morning. he will leave bedminster, in new jersey, shortly. he will visit a shell energy plant outside of pittsburgh. this is all about energy dominance. i said there is nothing wrong with that, although richard may agree or not. look at roku. i call it the stock of the year. may be. leading the charge in the
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streaming industry but is it a better buy than netflix? we're asking tech watcher gene munster in our next hour. we'll be right back. ♪ -driverless cars... -all ground personnel... ...or trips to mars. $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. their medicare options... before they're on medicare. come on in. you're turning 65 soon? yep. and you're retiring at 67? that's the plan! well, you've come to the right place. it's also a great time to learn about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company.
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stuart: not quite the high of the day but we'll certainly take it. the dow is up 440 points. by the way the president will be traveling to pennsylvania. that's in the 11:00 hour. he will visit an energy, an energy facility near pittsburgh. essentially this will be an energy visit i can put it like that. i want to bring in daniel yergin. probably the best-known oil analyst in the world bar none, he has occupied that position for near part of three or four
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decades. welcome to the program. >> thank you, stuart, for that introduction. better than your last introduction of your previous guest. stuart: i thought i would ratchet it around a little bit and give you a break. daniel, i think america is close to energy independence. do you see anything wrong with that? >> no. i think it's been great. it both gives us flexibility in the world. as i travel the world, i see it leads to a different, more positive attitude about the united states. but the most important thing is what it has done to our overall economy. this visit of the president to this facility outside of pittsburgh, it's a 5 billion-dollar facility, five, $6 billion, because of the shale revolution in the united states we have had $200 billion of investment in new chemical and manufacturing plants because of that. we've created millions of jobs. i think that is not so well-known. stuart: in the last couple of months we've had virus incidents in the gulf, seizure of oil tankers, attacks on oil tankers,
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et cetera, et cetera. if it had not been for american frackers, i think price of oil would have gone to $100 a barrel, but because of fracking i it has gone to the 50s. >> i think that is quite true. that has changed the psychology of the market. the u.s. is the leading oil producer. it changed the balance. the gulf is very important. in may, the price of oil got up to $75 a barrel. there is a sense of confidence and security that didn't exist before because of the change in the united states position, which is so dramatic. stuart: is solar power or wind power making a real challenge to fossil fuel power? >> well i think that wind and solar have competing with natural gas and electric generation. they don't compete in terms of mobility, in terms of automobiles. so i think they're going to be part of the mix but i think at the same time we'll see oil and natural gas demand increase as well. where are we going?
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i mean, america is producing what about, 13 million barrels of oil per day? can it go any higher? >> by the end of this year, that's right. stuart: any higher? >> it is thought that the u.s. could go up to 16, 17 million barrels a day. we're seeing a slowing down of growth in the last few years, it has been extraordinary. 10 years ago the u.s. was producing five million barrels a day. now as you say it will be 13 million barrels a day. the changing relationship between the investment community as frackers as you call them, but the u.s. continues to be on a growth track and it has transformed the global oil market. the u.s. is now an exporter. you go to a country like inyaw, they have a new whole sense of relationship with the united states because we're exporting to them. by the way, the other thing, stuart, if i can just mention, this has been really good for our trade balance. our trade balance would be $250 billion higher were it not for the changed position in the united states.
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stuart: you, sir, are a welcome guest on this program. you do not -- >> thank you. stuart: you speak eloquently about a subject near to our hearts. daniel yergin, thanks for time being with us today. we appreciate it. >> thank you, stuart. take care, bye-bye. stuart: different introduction there. legitimately so. to the markets, why not? the positive news on tariffs sending stocks straight up. we're up 44000 the dow. 160 on the nasdaq. how about apple, it's a dow stock. investors like the delay on cell phone tariffs. it's a big day for your money. we're all over it obviously. back in a moment. ♪
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stuart: prepared to call this a rally, rightly so, up 455 point for the dow industrials. this is all about the delay in china tariffs we announced this morning. it will save americans a lot of money. lauren simonetti is here. >> the toy association, obviously we're coming upon the holiday season.
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a statement from the toy association. a delay for will be i amly helpful for the small companies, they don't have the vast supply chains, many small companies still have shipments after december 1. popular toys go out of stock, they have to get them, usually out of china to make the christmas tree. national retail federation says this, let's pop that up. what we need is an effective strategy to address china's unfair trade practices working with our allies, et cetera. they obviously see tariffs as a tax. before all this news came out, we were supposed to dot story that i would, as a female, susan and i would be more affected than all three of you gentleman by the tariffs if they went into effect because we get more of our clothes from china. 40% of what we wear comes from china. 25% of what you wear comes from china. this would cost us more money. stuart: so it's a sexist discrimination on terrorists?
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>> that's fashion. we have a cooler clothes. if you look at clothing and shoes together, the tax of a 25% tariff, if we do get it, it goes up, would be $7 billion a year. stuart: dr, valiantly staying with us through this market rally, we do appreciate that. on the screen, look at that under armour, nike, foot locker, those are footwear stocks obviously doing well. do you think overall the retailers will do well out of this overall? >> it helps retailers a bunch coming into the holiday season f we pull up hasbro and mattel, i looked at both toy manufacturers, they're up 5%. stuart: really? >> they are popping because they get a lot of sourcing from china. so if they're not having to pass those along they can certainly do much better competitively. ashley: look, the government put out a list on its website. it is glass wear, ceramic household items, sports equipment, fireworks, kitchen items, all of these are being delayed until december 1st.
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it's a very extensive list. in addition to all the apparel. stuart: no tariffs, exempted like computers, toys, videogames consoles, book wear, laptops. what is left. steel industry. they have tariffs on. they're not coming off. maybe september the 1st. list of knows with delayed tariffs or no tariffs is very long. >> this insulates the consumer for now. does this get us to a deal? does china offer something that pleases the administration? do we get a deal or is this continuing to kick the can down the road? stuart: there has been some speculation that china gave up something, to get tariffses relaxed. we don't know. susan: agricultural purchases, spending money they already have in the bank. heading before this,
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september 1st, likes of goldman sachs, credit suisse, saying macy's, nord strom and kohl's would be impacted. i think relief for those names. stuart: ladies and gentlemen, the story today is all about money. the stock market going straight up on news that tariffs will be either delayed or not imposed at all. big day for your money. we have a big series of guests to cover it for you. charles payne is on his way. that will be in our next hour. actor isaiah washington, he wants to set the record straight on hollywood. it has been facing a lot of criticism over the horror film, "the hunt." the president called hollywood racist last week. washington says, not everybody in hollywood is bad. he will make the case. millenials going for hard
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stuart: it is 11:00 in new york city and ladies and gentlemen, i have to tell you at 6:00 this morning i wrote an editorial about the summer of anxiety, thinking about china, hong kong, russia, missiles, dayton, el paso, to name a few things. but my, times have changed in the last few hours, specifically it's changed for your money. look at this. left-hand side of your screen, the dow industrials are now up 400 points. okay. we had been up 529 but we will certainly take a gain of 1.5%. the big tech sector, that's worth looking at because that is
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doing very, very well. when was the last time you saw a 4% gain for apple just like that? it's up eight bucks at $208 a share. google's up nearly 2%. amazon is up 2%. facebook is up nearly 3% and microsoft is up 1.5% plus. all of this because of the tariff situation which we will explain momentarily. the ten-year treasury which had been, when we walked in this morning, 1.64%, flight to safety, all this anxiety, that's reversed. we are now at 1.69%. and the price of gold which had been up when we came into work early this morning, now it's down three bucks at $1513. a real reversal because of what's going on with the tariff situation. charles payne, gene munster, they are coming up on the show but right now, i have with me the man from bannonberg, one of
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those rare incidents when the scots beat the british. is this just passing euphoria or what? more fundamental? >> i think it's a hiccup, really. the markets looked ugly yesterday and gold rallied, bond yields are low, it's telling us that tariffs and trade is the most important issue facing investors. stuart: okay. the announcement is that a lot of tariffs will be delayed until december 15th and a whole raft of products will not have any tariffs on them at all like video game consoles, toys, computers, footwear, toys, for heaven's sake. that seems to be a really big break in the tariff war. >> maybe. we'll see what happens come december. if it's just a couple month delay, i think it leaves uncertainty still hanging over us and is also like closing the barn door after the horses are gone because this morning's cpi, three-month annualized rate, 2.3%. what the tariffs will do is
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prevent the consumer from feeling higher inflation. stuart: wait a second. every time you appeared on the show before this, you have been saying we're going to make new highs this year. the economy is doing real well, up we go. have you changed your tune? >> we got real close to my target on the s&p, about 3030, and i'm a bit cautious because i think we've got, like you mentioned, all the problems going on in the world and these tariffs. the take-away is the u.s. message is not consistent. are we keeping pressure on china or aren't we? what do they do in exchange for releasing the tariffs? stuart: they might have given us something. we don't know that. >> the first thing i'm reacting to is the u.s. is making some concessions. we still don't know the price, what it's going to cost us. stuart: okay. when we started the show 9:00 eastern time, two hours ago, the first thing i said was should i be selling some stock, because i'm getting a little worried about this constant churn, the downside move of the market. should i just sell, sit back and relax? most of our guests said no, no,
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you don't want to do that, that's the wrong thing to do. bearing in mind this rally, it would have been the wrong thing to do. would you say it's the right thing to do? >> yeah, i think my sense is that here's what's going on now. today, you've got the japanese stock market turning negative for the year. emerging markets turning negative for the year. the u.s. s&p down about 15%, the dollar about 11%. i would be happy to take chips off the table and look for it to reset later. stuart: i own a piece of microsoft. very thin sliver. >> you still own that? stuart: owned it for 15 years. should i sell it? >> it really depends when you want to retire, stuart. stuart: that's a key question. >> in general, what we see happening is microsoft, even though we think about the old economy, still very much part of the new economy. i think people still are buying growth over value. stuart: so some people you think should take some money out of stocks. forget microsoft for a second. you are cautious to that degree? >> i have taken some money out of the stock market.
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i like real estate. i'm waiting for the uk to leave the eu and looking to buy uk stocks, uk real estate. stuart: okay. marc, thanks for joining us. fascinating stuff. contrarian, no less. edward lawrence comes back in again, please. what's the latest, edward lawrence in d.c.? reporter: the good news, the phone call happened this morning between the two trade delegations, the u.s. side and the chinese side. they agreed to talk in two more weeks. again, talks are good at this point. out of that phone call, the u.s. trade representative's office announced that the u.s. would delay tariffs on a number of items, 21 pages worth of items, until december 15th. now, we are talking about things like cell phones, laptops, cell phones the reason probably apple has spiked here, you mentioned 2%. laptops, clothing, also we are talking about drill bits, different tools. so all this will be delayed until december 15th.
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that moves it after the shopping season, the holiday shopping season, we are towards the end of it so consumers don't feel that pinch as they are buying gifts there. there are some products that will go under tariff on september 1st, mainly agricultural products, steel products, wire and art supplies are some big categories, including sculptures and art that will be under tariff on september 1st but again, the reset here is basically that the talks are continuing. they had a phone call this morning. there will be another phone call. we have to see if the chinese decide to buy the agriculture which is what president donald trump tweeted about this morning and he hopes that the administration hopes they certainly reverse that course and buy u.s. agriculture. but again, the talks are continuing. stuart: thank you very much indeed. right on top of it. good man. now, kind of shoved to the side in all of this has been the situation in hong kong. again, when we came into work this morning, looked like the situation in hong kong was going to overpower the stock market here. there's a live picture you are looking at, left-hand side of
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the screen. obviously stuff still going on in the airport there. susan, update everything. susan: the hong kong airport authority just speaking out on the action and activity you are seeing on the screens here. they say operations at the hong kong terminal, hong kong airport, seriously disrupted by this ongoing public assembly and the airport authority says public assembly blocked passageways to airport restricted areas. so for a second straight day, we have had operations at the world's eighth busiest airport being disrupted and that includes the cancellation of all departing flights, no check-ins were allowed. 1100 passenger and cargo flights land and depart each and every day and they handle a lot of passengers so this is also the biggest economic disruption as well to one of the world's largest financial centers. if you think about it, it was a gateway to china for a long time, still is in some ways, probably reduced in terms of its influence compared to shanghai but if you think about it, the
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china trade tariffs, the china trade talks also play into the situation in hong kong because if china and beijing doesn't have a headache of trying to negotiate a delay in tariffs, then they have probably more resources and energy to refocus on dealing with their own backyard and what's happening in hong kong. stuart: one has to wonder if there's a point that comes where the authorities say enough, we've got to reopen that airport and use significant force to get people out, and try to get things back to normal. that would be a confrontation. susan: that would be something hong kong has never seen before. that would be an absolute escalation in the confrontation and the violence that we've seen. and i would say probably doesn't send a great message to the international companies that do operate out of the city, right? stuart: that's right. thank you indeed. uber, going to take a look at some individual stocks. uber down again. they are still bleeding cash. they lost more than $5 billion in the last quarter alone.
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the stock's down to $36 a share. our tech guy, gene munster, is with us now. i want to know which ride sharer company he's got his eyes on. is it uber or lyft? he will join us in just a moment. you know, i'm going to ask gene another question. this one's about roku. stock of the year thus far, up 300% on a real tear. so is the battle -- in the battle between netflix and roku, which one would gene put his money in? roku, netflix? which is it? we will find out. we are also joined by wine maker later in the show, charles smith, celebrating his 20th anniversary since producing his first washington wine. what's his take on millenials drinking hard seltzer? with hair like that, i've got to find out what he thinks. actor isaiah washington wants to set the record straight on hollywood following all the criticism over the film "the
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hunt." the president called hollywood racist last week. washington says not everybody in hollywood is bad. well, he is on the show. of course, you are watching your money. we are watching it for you. it's a rally. stay with us. third hour of "varney & company" just getting started. ♪ ♪ all right brad, once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route. obviously. retirement, we're going with a long-term play. makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know? studying my playbook? yeah, actually.
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stuart: we are up 430 points as we speak. 425, to be precise. look at boeing, right-hand side of your screen. just said it received no new orders for the 737 max jets through july. in fact, net orders through july, negative 88. ashley: ouch. stuart: does that cancellations? i think it does. boeing considered a
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trade-sensitive stock. it's up two bucks this morning. look at the level. $335. here's a trend in retail. subscription services. you buy -- you spend, rather, you pay x number of dollars a month and they send you the product on a monthly basis. well, nike is doing that now. tell me all about it. ashley: it's for kids. as any parent knows, kids' feet grow very quickly. you buy them a pair of sneakers and before long, they are already growing out of them. so nike offering this kids club, the sneaker market worth about an estimated $10 billion. you have three tiers of subscription, $20, $30, $50, and once your kids grow out of their shoes, you can swap them out, you can do this monthly, bi-monthly or quarterly, depending what subscription you want. we talked about this earlier. it's cutting out the middleman. it's cutting out the store and you are just going directly to the producer of the shoes. and you get kind of a loyalty to a particular brand as well.
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at a young age. stuart: kids grow out of shoes fast. ashley: oh, my gosh. crazy. you know. stuart: i do indeed. i want to get to what we are going to call stock matchups. for example, check the ride sharers. uber versus lyft. uber is down some more, down about 50 cents at $36 a share, lyft is struggling to reach $57 a share. gene munster is back with us, luke ventures managing partner. i think you are a fan of lyft, not uber. i would like to get into this industry as an investor and you recommend lyft, is that correct? >> that's exactly right, stuart. the simple take-away is this. their focus on the u.s. is paying off. before we talk about the focus piece, i think it's important to point out that both of these companies have a tail wind around ride sharing. today it's about 11% of the adult population in the u.s. uses ride sharing services on a monthly basis. that number eventually could be
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much higher, potentially maybe 50% over time. so there is this wonderful tail wind, you wouldn't guess it with the trading in the stocks more recently. but i think the simple take-away is that you really want to own lyft here. their strategy or focus in the u.s. is paying off. i want to put some perspective on that with a couple comparison numbers. is it revenue per rider, in the june quarter for lyft, increased 5% sequentially. if you look at that same metric for uber, it decreased 3% sequential lichlt part sequentially. part of the reason is uber is growing outside of the u.s., tends to have lower paying customers, but part of the reason is uber is facing intense competition outside of the u.s. when you think about a global business that is trying to scale into a shift in lifestyle, those factors, the calculus around that is most difficult and can be symptomatic of a business that will continue to use up a lot of cash and not return profits to investors.
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when you put all that together, ride sharing is an investable theme and lyft's focus on the u.s. is the best path forward. stuart: clean-cut decision there. well done, gene. now, the next matchup is roku, streaming boxes, versus netflix, perhaps the original streaming service. which one's got your backing? >> so this one isn't as clean. the answer is it's roku. i think both of them have some challenges, though, but between the two it's roku. the quick take-away is netflix has an outrageous valuation. i want to try to stay away from colorful adjectives but that really is i think 55 times next year's earnings, in a business that's going to get increasingly more competitive. this fall, disney, apple, this has been well documented, all these other services that will come out there, so i think when you put that in context versus roku --
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stuart: gene, terribly sorry to break in but i have a development in hong kong which i must get to our viewers. that is live pictures there, hong kong protesters bursting through. what have you got? ashley: actually attempting to storm the airport in an effort to get the protesters out. there you can see some scuffles. we understand a witness is telling reuters the riot police managed to push back some protesters at the airport. this is an ongoing situation. as you know, these protests at the airport have shut down flights for two days in a row, none coming in, none going out. we were wondering at what point do authorities try to take charge of the situation. well, apparently in the last few minutes, this is what happened. riot police getting into the airport, trying to get protesters out. as you can see, it's been a difficult process. stuart: the confrontation was expected. ashley: yes. stuart: shutting down the airport has severe consequences for hong kong and for china as well. it was expected that at some
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point, action would be taken to stop this stoppage of the airport and it looks like that is under way as we speak. ashley: we understand from hong kong airport that the police have withdrawn after this first attempt. stuart: really? ashley: yes. stuart: fascinating. so if they have withdrawn -- ashley: they aren't going away but the first wave of trying to get these protesters out. stuart: when you look at the sequence of events today regarding china, america and hong kong, it is as follows. about an hour and a half ago, we received word that we were going to delay the imposition of tariffs on a wide range of chinese products until december 15th. that's some breathing space. this was a wide range of products from video games, toys, computers, footwear, you name it, a vast swatch of products made in china would not be subject to tariffs at least until december 15th. that was seen as very much a calming move in the china/u.s.
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trade talks and the result was a very strong stock market rally. now literally moments ago, in hong kong, the police have attempted to get rid of the demonstrators, push them out, forcefully out of hong kong's airport -- ashley: protesters throwing objects at the riot police, or riot police responding with pepper spray. they apparently have now just withdrawn from the initial part of the airport and -- stuart: gene munster still with us. gene, i want to change the subject because i know you know something about this. what do you think is the impact of what's going on now in hong kong and the china trade talks? >> stuart, what we're seeing in hong kong is kind of one of the three legs to this dispute more broadly. we have what's going on in china and mainland china managing that situation. we have the trade dispute and then separately, we have national security that gets pulled into the trade conversation around huawei.
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these are three distinct pieces but they all are interrelated as you are discussing. i think the simple take-away is this. what we are seeing today in hong kong is representative of a very complicated equation between those three verticals. this is going to take more time than investors i think would like for it to sort itself out, to really move forward. we are seeing some relief in the market today but i just want to really encourage investors to have clear-headed thinking because we will have what's happening at this minute in hong kong airport, and then that will be whether some talks in the next couple weeks and if we think fast forward over the next year, we are going to have these ups and downs, and the simple take-away is this, stuart, is for investors to have clear-headed thinking and not to participate in what i would call idle speculation about what the impact is. the impact is pretty straightforward. the u.s. and china are both long-term strong economies and i
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think that they ultimately will power through this what i will call a year of trade dispute. stuart: at this moment, there has been no significant reaction on the stock market to this move by the police in hong kong to get the protesters out of the airport. by the way, as ashley points out, we do have reports, there's the video of the police withdrawing. pulling out of the airport. they made an initial attempt to clear it. they were met with some significant resistance. we saw some protesters throwing stuff right there. now look at that, there you have it, the police are withdrawing. now, they're not going away completely. they are withdrawing to the outside of the building, but withdrawing they are. no response on the market. when we first started showing this video, when the first reports came across of hong kong, the dow was up about 360, 370. well, now it's up 350 and the s&p is holding up 38 and the nasdaq is holding up 122.
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so for once, this kind of violence in hong kong, and i will call that violence, has not had a negative impact on the market. in fact, what has had a positive impact very clearly is the delay of some of these tariffs until december 15th. that's really quite extraordinary. i want to leave this up on the screen so you can see what's going on in hong kong, leave the market up on the screen, but gene, i want to get back to you for one moment. you might not be on camera for this but i want to deal with it anyway. apple airpods. home pod and apple watch. they remain on the september 1st u.s. tariff list. i think we should point that out. >> yeah, it's worth pointing out at the end of the day is that it's highly unlikely those products will actually be tariffed because apple is a u.s.-based company. i think that that is part of some of this unhealthy
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speculation is that yes, apple will be necessityigatively impa i would be shocked if these products were targeted by tariffs coming into the u.s. stuart: hold on for a second. producer, can we put up the big tech names, please? we've got on the screen the dow, s&p and nasdaq. show me big tech because that had the most profound impact on those stocks of the developments in china and hong kong. they're all up significantly so. apple is still up over $7. google is still up $18. amazon, $31. facebook's up almost $4. microsoft is closing in on a $2 gain. that is because so many items related to big tech will not have tariffs imposed on them until at least december 15th. i'm talking now about these additional 10% tariffs that were
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supposed to be imposed on september the 1st but there's a long list of products which will be delayed for the tariffs until december 15th. video game consoles, toys, computer, footwear, toys, a broad swatch of products which will not be tariffed, make it into a verb, until december 15th and maybe not then. we shall see. what china has given up in return for this tariff easement, we do not know. but we do know that the two sides spoke on the phone very recently, this morning, in fact. i'm told secretary stephen mnuchin, treasury secretary, was on the call and right after that, then they agreed they would be talking again either in a couple of weeks or certainly next month. so the talks have been resumed and they will continue. left-hand side of your screen, something completely different. that's the hong kong police moving right into the hong kong airport, making an attempt to
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get rid of the protesters who had shut the airport down. we now understand and we can see the police have withdrawn. they made an initial attempt to clear it. now they have withdrawn. they have not gone away completely. ashley: they are trying to do this bit by bit, going in, trying to take targeted people out. from what we can understand, more protesters hanging around, trying to get those people back in the airport. stuart: okay. now, i've got -- ryan payne is with me, market watcher. you run a money management firm of some repute, i do believe. >> repute, yes. stuart: when i came in this morning, when our team assembled this morning, we were looking at about a 100 point loss for the dow industrials on top of yesterday's near 400 point loss. >> that's right. stuart: the word was this trade thing and the hong kong thing, out of hand, we are going to go down some more. then we get the news on tariffs, a delay, and straight up, the market is now up 300 points. your analysis?
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>> i think first off, i think the trade war in general, the numbers aren't that big so it's more headline risk than actual fundamental risk to the market. if you look at the economy in general. if you look at tariffs, you look at just take china, for instance, our import -- excuse me, our exports to the rest of the world over the last six months with the tariffs in place went down by 1%. we are talking very nominal numbers here. i think it's just headline risk at this point, underlying fundamentals are very good with the market. stuart: one other point. if you delay tariffs on all of these products, the kind of things that we would be buying for the holidays, you delay until december 15th, then really, you grandfathered in no tariffs right through the point where we started to buy this stuff. i see that as protection for u.s. consumers. how do you see it? >> depends how late you buy your christmas gifts but you're right, because by the 15th you probably have all of that done. even as a component of gdp, we are talking about these extra tariffs are like .01%. or excuse me, 1%.
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a very small number. but yeah, that adds some protection and confidence and that's what the market wants here, right? they want certainty. stuart: i want to point out the high of the day for the dow industrials was a plus 528 points. i think that was the actual high of the day. we have come down about 160 points from there. some of the tariff euphoria has gone away, you think? >> during the day you will get some profit taking, you will get some movement. at the end of the day you can get another surge as well. it's hard to say what's going to happen but bottom line is, having serncertainty with the mt is a very good thing because the fundamentals are already very, very good. stuart: gene, you are still with us. i hope you're still there. >> i am. stuart: i just want to throw this at you. i think this is in your ballpark. when we came in this morning, we were saying are we a bit worried about our money, is this the time to sell, and i suggested to some people that is this the time for me to sell some of my microsoft, because i do own a
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little bit of it. what's your response to that? should i sell some of it? >> you know, i can't speak to microsoft specifically, but i can speak to kind of broader big tech. i still am optimistic. i'm in the camp, i have lived through bubbles before and seen what the pain of group-think can do, but i think there are pockets of opportunity. i would think a company like netflix is probably not a good investment here, given the competition we talked about, but i think if you look at a company like apple, that potentially could double over the next few years. i think $350 in the next couple years is very achievable based on everything that's going on. i think there are pockets where you need to be. stuart: one moment, gene. did you just say that apple could almost double from here and reach, say, 350, $350 a share? what's your time frame on that? >> that would be a couple years from now. the math to get there is actually straightforward. simply, if you take a multiple
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like similar multiple to a consumer staple company in the low 20s, because this is essentially a tech staple is what apple has become with hardware as a service and services on top of that. you put kind of a 20 multiple on earnings in a couple years and you get to 350, that is going to be a change for investors to think of this company differently but i in fact think the results will power a shift over the next couple years to a higher multiple for apple. stuart: just plain fascinating. all right, gene. back to ryan payne. i was suggesting maybe it's time for me and some of our viewers to take some money off the table because there's a lot of risk out there at the moment. what do you say to that? >> i told you hold on last monday in the biggest selloff. you remember. stuart: you did. you did. >> i would argue there's not pockets of opportunity. there's opportunity everywhere right now. look, you have gdp going up, right. we know the economy is relatively strong.
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globally, it is. in europe, gdp is going to grow this year, next year, even with all this bad news right now. most economies are doing relatively well. if you look at stocks right now -- stuart: wait a second. wait a second. most economies are doing quite well right now? i wouldn't say japan is doing very well. i really wouldn't say any of europe's doing well. i would say germany is heading towards recession. and italy, well, who knows. you can't say their economies are in good shape. you can't say that. >> but we are showing positive gdp. got to remember -- stuart: only just. come on. >> with markets, things are getting better or getting worse. and they are getting better. fu lo if you look at fundamentals, let's face it, european stocks, they trade at tremendous discounts to u.s. stocks so bad news is priced in and i'm getting paid really well to own those stocks. stuart: left-hand side of your screen, we have been showing you what's happening at the hong kong airport. i believe most of them are live
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pictures -- ashley: oh, yeah. stuart: you can see what's happening in realtime. just a few minutes ago we were seeing police charging into the protesters. the protesters fighting back. now we have seen the police retreat, not entirely, they're still there, but they haven't cleared the building. ashley: they are doing it as a process, it appears. going in, targeting bit by bit, trying to take some of these protesters away. look, the protesters are using the luggage trolleys as barriers and set up the barriers. very difficult to get to them. stuart: charles payne joins us now. have you got your microphone on? he rushed to the studio. i'm very pleased to see that. thank you very much indeed. >> you got it. stuart: your analysis here. we got the delay of tariffs on many, many chinese products until december 15th. market goes straight up. your analysis? >> well, that's the pent-up anxiety that's out there. the key number we have to take out is last friday's close. not last friday, the one before, before, you know, the chinese currency became part of this
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narrative. 25,600 is when people have to become very aggressive. i kind of overheard the conversation you guys are having. i tend to agree with you in the sense that, you know, positive gdp growth can be a fraction, right. so it's a rosy way of looking at it. if i was running a country, i might tell my countrymen that, but you know, we certainly continue to stand out -- stuart: we are the world's top performer. >> absolutely no doubt about it. driven by an american consumer that's confident, that has higher wages. by the way, 8.1% savings rate. our ability to service our debt is better than it's ever been before. the american consumer can actually get even stronger than it is right now. we have a disciplined consumer, probably still snake-bit from the great recession. also, i don't like the idea of buying stocks because they have underperformed. because i know a lot of folks are buying emerging markets because they're down. lot of times, stocks and markets are down for a reason.
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ironically, i bet at the end of the year if you look at the top ten performers, you probably wish you would have chased any of them at some point this year. we always say oh, it's too high, you know. so that's one of the sort of things where investors kind of always say well, what hasn't worked. lot of times, things haven't worked because they're not supposed to work and the good names actually get better because the underlying fundamentals actually improve. that doesn't happen as a one-time event. stuart: no reason for myself or any of our viewers to really lighten up seriously in stocks? >> i think you got to look at it stock by stock. what i did yesterday when i went home, i looked at consumer discretionary because everyone's saying the consumers are going to get hit, consumer discretionary is a group you want to be out of, sell consumer discretionary. of the top ten losers, nine of them were already losers. in other words, they had already missed earnings. they had already given earnings warnings. each one of them, each of those nine were trading within 3% of
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their 52-week low before yesterday's session. there is only one exception, tractor supply. so the point i'm making, be careful of just throwing everything out in these knee-jerk reactions to a market that's moving more on emotion than fundamentals right now. >> absolutely. yeah. stuart: somebody said to me over the weekend you know, you made a lot of money, just get out. retire. go away. >> they got that new technology coming out you were talking about. you'll be looking like 15 years younger. ashley remembers that. ashley: i remember that story. stuart: i thought it was about plastic surgery. >> no, no, no. stuart: i know gene munster has got to go. i know we have held you for at least a half an hour. gene, you want to put a last word into this before we say good-bye to you? >> yeah. it's just simply level-headed thinking, just clear-headed
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thinking. we need to stay focused on what ultimately is the end target here which is the two biggest economies in the world, china is going to i think slowly work its way back into a positive area. the u.s. continue to be strong and i think collectively, that notion, that guidepost of clear-headed thinking when you hear the news up and down, stay focused on companies with great fundamentals. i would say one other thing to leave you with is this concept that apple could be a significantly higher stock than it is today. i think it is considered out of rational thinking to think this stock could be $350 but i firmly believe that is fair valuation for apple. stuart: you made headlines with that one. $350 on apple within a couple years. gene munster, thank you very much for being with us. >> thank you. >> i want to chime in. he's right. i think it's extremely undervalued. i wrote a five-page report on it this weekend. stuart: apple? >> i focused on the thing you
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liked, you saw before anyone. that watch. stuart: what? >> the apple watch. stuart: i focused on the apple watch? >> you talked about it. you were excited about the medical devices and things like that. stuart: oh, yes, yes. ashley: talking about you could use that because it tracks your health. >> i'm trying to give you some props here. the point is, the point is the last earnings report, that entire earnings report from apple, that exploded. that was my epiphany. that was my epiphany. services did great but came in less than expected. all non-smartphone revenue was the same as smartphone revenue so you mitigated the decline there. i'm talking about a company that's no longer a one-trick pony and something i thought was a sort of dick tracy gadget actually potentially being a major driver of revenue earnings and the stock price. stuart: i don't remember i said all that. >> i know you better than you know yourself. i'm like amazon. i'm like alexa. stuart: you say that loud on tv,
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everybody's alexa all around the world [ inaudible ]. alexa, play the beatles. okay. we were talking here about apple. it's worth talking about. gene munster says $350? it's $208 now, after a few years. you putting your clients' money in apple? >> i think gene has rosy-colored sunglasses on, with due respect. i think it's a slow-moving value stock now. services is the future for that business, not the hypergrowth we saw during the steve jobs era. i don't think iphones will come out with new technology that will blow the world away that you need a new iphone. good company, but i don't think it's the best opportunity. stuart: let me recap and update what's going on here. moments ago, we saw the hong kong police getting into the hong kong airport, taking away some protesters, fighting with them, then retreating not out of the building entirely, maybe they are going to try to clear another section.
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look at that. there's chaos. we believe a man there has been injured. we don't know how badly. but -- go ahead. ashley: one of the tactics being used by the police is they have a unit of plainclothes police officers who were dressed as protesters go inside and then identify those that they need to target to pull out and try to talk to, to end this thing. that's another facet of what they are trying to do to stop this protest inside one of the world's busiest airports that has canceled all departures and it's unclear right now, if you are landing in the hong kong airport, how you get through all of this. stuart: it's worth pointing out as we were running that videotape of the disturbance, put it like that, the attempt to clear the hong kong airport, as we were running that, the dow industrials stabilized with a gain of about 340 points. now we've got video of the police retreating from parts of the airport, that's a video
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right now of a man who appears to have been injured in the confrontation, the dow has gone back up again. now we are up 380 points. this is not a big negative for the market as one might have expected. instead, the market is looking at the huge positive of this delay in the imposition of tariffs until december 15th. on a wide variety of chinese products. i just want to add one thing here. the american consumer, by this administrative action by the administration, is to some degree getting protection for the products that they wish to buy for the holidays. if you don't impose these tariffs until december 15th, you've got plenty of time to go out and buy your christmas stuff, holiday stuff, black friday stuff, you name it. you can go buy it without a tariff being imposed. i think that amounts to the protection of the american consumer. i'm not going too far with this. ashley: not at all. right in time for the holidays.
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stuart: it's a positive in an overall rather negative situation. anything to add to that, anybody? no, we don't take a commercial break. do that in the middle of the action, certainly not. up 393. >> this morning when the cpi report came in, the dow was off, indications it would be off like 40 points. then indicated being off 80 or 90 points. at the core was a sliver of people saying hey, now we see the tariff stuff coming in. before you called me up, i was combing through all of this. i do find it interesting there were a couple of areas, household furnishing, apparel prices, computer prices, but here's the thing. sporting goods are down more than a percent. televisions down. you know what apparel item took the biggest jump last month? men's underwear. [ speaking simultaneously ] now you have an excuse not to buy new underwear. stuart: hold on a second. edward lawrence is going to join us momentarily. i would like to tell our viewers that i'm not entirely sure what
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is going on in the left-hand side of your screen with those protesters. clearly someone has been injured. ashley: it was the use of pepper spray. that may be part of it. he was being blinded partially by that spray. stuart: that man was bending over with, punching his eyes, so perhaps he was caught up in the melee and was pepper sprayed. that's speculation on my part. i think chaos is the right word to use. edward lawrence, what's the latest that you've got from the white house? reporter: yeah. we were talking about we actually asked the chinese commerce ministry if china gave up anything on the phone call in order to get this delay in tariffs, as we watch this video from the hong kong airport. i will tell you the chinese commerce ministry spokesperson says china did not give up anything. they did not agree to buy any agriculture, they did not agree to do anything in order to get these delays. the u.s. just decided on their
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own that they would use these products, this 21 pages worth of products, and delay the tariffs until december 15th. but again, the chinese commerce ministry says they are still at this point, no agriculture buys they are going to make from the u.s. they did not agree in a concession, tit for tat, even though we delayed some tariffs until december 15th. stuart: that is important, because if we gave in a little by delaying the tariffs, we were expecting that maybe china gave a little, but according to the hong kong -- sorry, the chinese foreign ministry, as edward just reported there, they didn't give up anything. they have not agreed to buy any extra american agricultural products. >> listening to what went down today, my theory is that lighthizer had the phone call, went back to president trump, allow me to continue with diplomatic efforts. i think we will get some changes because it was followed up by a very skeptical tweet by president trump.
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president trump gave the nod, okay, let's go through the process of ustr, people ask for exceptions, move the date, but he is extraordinarily skeptical but he's allowing his diplomatic team, the team that he chose to help resolve this, led by lighthizer, to do this. because remember, initial reports were lighthizer was against this september 1st tariff in the first place. stuart: in the back of my mind, i've got to think this trade war as we know it is going to hurt the american economy to some degree. the last thing president trump wants is any kind of slowdown before the 2020 election. >> but i think president trump thinks this is a battle that supersedes everything else. it's like winning the cold war, winning world war i, winning world war ii. even though he loves for the stock market to be up, i think ultimately he thinks this is the most important battle that we are engaged in and the last chance for america to fight it. yes, he doesn't want the economy to be hurt but he is not going to let that be a determining
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factor for how this is resolved. stuart: who would have thought as we run that kind of video, direct from the hong kong airport where there's clearly been a police charge, protester resistance, some injuries, who would have thought in that environment when we are showing you that videotape, that the dow industrials would go right back up to a gain of over 400 points. please look at the nasdaq. there are technology companies in the nasdaq. that's what it's all about. technology companies will benefit by this delay in the imposition of tariffs on various parts. we are up 420 on the dow. up over -- look, there's big tech. really doing well, thank you very much. apple is up eight bucks. google, 21. amazon, 33. facebook, 4. microsoft up $2. ashley: let me tell you, i wonder whether this was the case but reporters now saying that gentleman that was being surrounded is suspected of being an undercover police officer. that's why they are looking at all his stuff. as i said to you earlier, this is the tactic they have been
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using, undercover agents getting in among the protesters. he, we understand, is being suspected of being one of those undercover people. stuart: that does fit, because you are quite right, a moment ago we saw on the ground a lot of his, i presume they were his papers. ashley: yes. stuart: and his equipment, so to speak. maybe the protesters outed a number -- ashley: a number of protesters have been quote, snatched by police and taken away. but as you can see, the vast majority still inside the hong kong airport. this is a moment where it seems the hong kong authorities are saying this is it, time to get out. stuart: they have not got -- the police have not -- ashley: it hasn't worked yet. it's been very measured. they have gone in, taken away some of the protesters, maybe some of the organizers, identified by perhaps this gentleman we are seeing a lot of attention on who protesters believe is there to point out who some of the leaders are among the protesters. stuart: so what are they trying to do now? the police are trying to -- ashley: i think he's in a very
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precarious position. stuart: that's the man. ashley: that's the man. i don't know what he's doing. maybe he's protesting his innocence. stuart: doesn't look like he's been pepper sprayed. pure speculation on my part. i understand that. he looks the worse for wear, i will say that, too. ashley: obviously this is an interesting situation. stuart: why he's not been hustled away -- ashley: the police have been withdrawn. the police have been withdrawn. stuart: he's on his own. ashley: he's on his own among the crowd being accused of being an undercover officer. he's got laser pointers on him as you can see. stuart: laser pointers? ashley: there was a laser pointer on his face, right there. stuart: oh, yes. ashley: just, you know, obviously this is speculation. charles: this is a double-edged sword. on one hand, we say how can the market be up on this. we are seeing it. we wouldn't see this if it was happening in china. stuart: good point. charles: it does, you know, underscore the fact that there's an element of democracy and freedom there despite, this what is they are fighting for.
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we are seeing it. if this was anyplace in mainland china, we wouldn't see it. now protesters have to be careful how we see them handle this police officer. if it is a police officer. ashley: they are trying to tie his hands behind him. he is just being surrounded by a circle of people, many of whom are, as you can see, the press. charles: it does not give beijing an excuse to go in there with batons. stuart: technology opens things up. cameras are everywhere. ashley: yes. stuart: you can broadcast from that to us directly. we can all see the live video from a phone. you couldn't do that a few years ago but now, you can. and what the police are up to, what the demonstrators are up to, is now clearly visible worldwide in real time. i'm just fascinated. the dow is up 400 points. it's hard to say what's going on but that's chaos. ashley: some of the protesters are putting their arms around him, trying to speak to him but as you can see, it's become quite a crush as everyone with a
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phone is trying to get a picture of this and the media as well. stuart: who would have thought we would see video like that and the dow is up 400 points. to repeat, the reason that the dow jones average is up 400 points plus, the reason why the nasdaq is up 1.8%, huge rallies across the board, the reason is a delay in the imposition of those 10% tariffs until december 15th. a wide variety of products have been exempted. i will repeat myself. i know i am but it's important. video game consoles, toys, computers, footwear, clothes, exactly the kind of thing you and i would all buy -- ashley: which is what the markets wanted. especially for the economy and the consumer. this pushes it back three months to december. stuart: yes, but it means the president is giving a little ground and giving some support to american consumers who face
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maybe higher prices for the holidays if -- ashley: that would include black friday, the day after thanksgiving. stuart: look at footwear stocks because they are exempted from tariffs until december 15th. nike, under armour, foot locker, deca outdoor, designer brands. look at that. 4% up, 1%, 2%, that's a rally in the footwear stocks. now i see the guy in the middle of the melee, a young man, he's got -- they tied his hands on the top of his head. i think you're right. it looks like he was an undercover cop, outed by the protesters. we will be getting hard reports on that sooner or later to find out exactly what happened here. charles: they better handle him with care. last week leading into this week, all we kept hearing was when carrie lam reemerged she started using this language that violence, starting calling these protesters terrorists. if they give the pla any excuse
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to get in there -- ashley: look at what they're doing. they cable tied his hands and now they are tying his legs together. my goodness. identifying him as someone who is working undercover. stuart: if you are the authorities in hong kong or you are sitting in beijing looking at this, you can't allow this to happen without a response of your own. ashley: right. right. stuart: the police have to do something about this. you can't lose control like this. now they are showing his passport and everything else. ashley: my goodness. stuart: that's become the focal point of the story which is really extraordinary. the dow is still up nearly 400 points. what we are calling china stocks are up. dow is up 390. s&p is up 44. the nasdaq composite is up 142 points. ladies and gentlemen, i'm going to repeat myself. forgive me. i think we are looking at a little history right now. ashley: absolutely. stuart: we all walked into the studio this morning very early in the morning and the dow was going to be down 100 points at
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the opening bell. it stayed that way. the dow was indeed off at the opening bell. then came news of a delay in the tariffs until december 15th and the market went straight up. the high was a plus 528, 529 points. huge rally. we are holding it. the dow is still up close to 400 points, despite what you're seeing on your screens in hong kong. now, president trump, i think he's -- yes, there he is. just emerging from marine one. i'm not sure where he is. morristown, new jersey. spent the week or is going to spend the week at his golf resort in new jersey. just coming up. i suspect, i don't know for sure, but he may well be approaching the reporters. he looks like he's going to talk. if he does, you're going to hear him. hold on, everybody. let's see. let's listen in. >> we have very, very strong numbers. we have a lot of artificial
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numbers from other countries because they're all devaluing their currencies. they're really doing things that aren't very good for their countries, in my opinion, but short term it's very good for their countries, long term, possibly not. we're not following suit. we have a fed that decides not to cut interest rates, a very bad thing. right now we have to follow suit. we should be following suit. we have a very powerful country, a very strong economic and military country. it's never been better. the stock market is way up today for various reasons, including tariffs. we have collected close to $59 billion in tariffs so far and in my opinion, the consumer has not paid for it because of the devaluation. china has devalued and pumped a lot of money into their system so it's really been an amazing period of time.
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reporter: [ inaudible ]. >> only to help i think a lot of different groups of people. we had a very good talk yesterday with china, very very productive call. i think they want to do something. i think they would like to do something dramatic. i was not sure whether or not they wanted to wait until a democrat has a chance to get in, hopefully that's not going to happen because the economy would go to hell in a hand basket very fast, but they really would like to make a deal. we call it very productive. i'm not sure if it was the tariffs or the call, but the call was very productive. again, they said this many times, they said they are going to buy farm products. so far they disappointed me with the truth. they haven't been truthful or let's say they certainly [ inaudible ] but it's their
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intention to buy a lot of farm products. again, we had a very good call with china. they would really like to do it. you know they have a problem in hong kong but they would like very much to do something. reporter: [ inaudible ]. >> just in case some of the tariffs would have an impact on u.s. customers, but so far, there is none. the only impact has been that we collected almost $60 billion from china. but just in case they might have an impact on people, we delayed it so that they won't be relevant for christmas shopping season. reporter: [ inaudible ]. >> he's a very highly respected conservative pundit. he's a big trump fan. that wasn't from me. that was from him. but he's a man who has half a
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million followers, a lot of followers, and he's respected. as you know, bill barr wants to do an entire investigation of the whole epstein matter, what happened. he's been going on for a long time, this has been going on for a long time, the whole epstein episode. and i know it's under investigation by attorney general barr. i'm sure he's going to be handling it. the retweet which is what it was, a retweet, is from somebody that's a very respected conservative pundit so i think it was fine. reporter: [ inaudible ]. >> no, basically what we're saying is we want an investigation. i want a full investigation. that's what i absolutely am demanding. that's what our attorney general, our great attorney general, is doing. he's doing a full investigation. reporter: [ inaudible ]. >> the hong kong thing is a very
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tough situation. very tough. we'll see what happens. but i'm sure it will work out. i hope it works out for everybody, including china, by the way. i hope it works out for everybody. reporter: [ inaudible ]. >> no, it's a very tricky situation. i think it will work out. i hope it works i hope it works out peacefully. i hope nobody gets hurt. i hope nobody gets killed. reporter: mr. president are you more optimistic there is chance getting a deal with china on trade? >> i have a always been optimistic. my only question whether or not they are willing to take a chance on winning the election until they get somebody weak, ineffective doesn't know what he is doing or she is doing like they have in the past. should have been done 25 years
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ago, 10 years ago, or five years ago. it should have been done a long time ago t should have been done by biden and obama. china is taking out $500 billion a year and much more than that. if you include intellectual property. i've been doing should have been done many years ago. reporter: [inaudible] maybe there ought to be a different poem on statue of liberty -- [inaudible]. do you think that should be changed? >> i don't think it is fair to have the american taxpayer, you know, that is about america first. i don't think it is fair to have the american taxpayer pay for people to come into the united states. what we've done is, institute what took place many, many years ago, at our founding virtually. we are reinstituting it. it is long overdue. i'm tired of seeing our
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taxpayers paying for people to come into the country and i will meal go on towell fair and various other things. so i think we're doing it right. reporter: [inaudible]. >> i think that what chris cuomo did was horrible. his language was horrible. he looked like a total out of control animal. he lost it. and frankly, i don't think anybody can defend him because he spews lies every night. i don't know why anybody would defend him. chris cuomo is out of control. i watched it. i thought it was terrible. i don't know who is defending him. maybe they didn't see it. maybe they haven't gotten the full picture. anybody that had seen chris kojm kojm -- cuomo would have said that is a disgrace. you have never seen me do that.
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reporter: [inaudible]. >> i think chris cuomo was so out of control i would not have wanted to see a weapon in his hands. i guess his fist is not a weapon. or he would have donning is. he talked about it, but he didn't do anything. but i think chris cuomo was very much out of control. reporter: [inaudible]. >> anthony was a guy who worked for me who really didn't have a clue. he worked for 11 days. he made terrible statements and gestures and everything to people that worked in the office. i think you have heard mercedes schlapp talk about it in great detail. anthony didn't support me at the beginning. he was with somebody else. then he went to somebody else. he only supported me after it was a foregone conclusion i was going to win. i am not a fan

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