tv Varney Company FOX Business August 19, 2019 9:00am-12:00pm EDT
the risk is out right now so let's just take a breath and calm down. maria: and stop speculating we're going to see a recession in two or three years. there will be a recession at some point. >> but not any time soon. maria: great show you guys good to see you all. jackie, mitch, lee, have a great day everybody. that'll do it for us. "varney" comes in right now. take it away. david: thank you very much. i'm david asman. stuart is off today. he's back tomorrow let's start with your money. looks like a very positive start to the week futures are up about 280 points this coming after three consecutive down weeks for the dow. last week it was down 400 points on the dow. we got to do at least that much to wipe outlast week's losses. lots of talk the fear of a recession may be overblown, and there's some optimism now that president trump wants to make a trade deal with china. that's why the markets are up pre-market. here is news that may be helpful to fuel the optimism. president trump says apple's chief tim cook is concerned about losing the edge to samsung
, because of tariffs. here is the question. is the president getting ready to take a softer approach to tariffs? we'll be asking our china experts coming up. and more hong kong protests this weekend, organizers say 1.7 million people brave the rain to hold a very peaceful demonstration yesterday. we'll get a live report from hong kong later this morning. and get this, the business round table, the top ceo group led by jpmorgan jamie dimon saying maximizing shareholder profit, your wealth, can no longer be the primary goal of big corporations. what's up with that? "varney" & company monday edition starts right now. president trump: china is doing very very poorly. they've had i just saw a report they've had the worst year they had in 27 years because of what
i've done, and they want to come to the negotiating table. they're losing millions and millions of jobs in china, and we're not paying for the tariffs , china is paying for the tariffs, for the other countries it may be that if i do things with other countries, but in the case of china, china is eating the tariffs. david: that was president trump on china, and we have more news on china. huawei getting another extension to buy from american suppliers, and americans getting a little extra time to divorce themselves from huawei. we got the news earlier on fbn, ashley you got the details? ashley: you are right, david all because huawei was supposed to hit that deadline today when they wouldn't be able to buy any american products, but earlier today, we're talking to maria bartiromo, commerce secretary wilbur ross said they are going to extend that deadline. take a listen. >> there is another 90 days for
the u.s. telecom companies, some of the rural companies are dependent on huawei, so we're giving them a little time to get themselves off but they are no specific licenses of being granted for anything. ashley: so it gives people time to wean themselves off huawei products but at the same time it also gives the president another bargaining chip as these trade negotiations go on and they didn't want to lose that bargain ing chip, so huawei is still out there. david: by the way just immediately after those comments and while they were being made you saw a little tic-up in futures above 300 on the dow, and let's take a look at stock futures now. they have come off of that high point. i think they were about 306-307 at one point when wilbur ross was talking to maria now they are up about 279 points on the dow, all the averages are up, all the indexes are up over a full percentage point, the winner is nasdac, that's up 101
points and pre-market activity, 1.33%. we are off though a third down week in a row, on the markets. joining us is market watcher dennis gardman. so why are we up today, dennis? >> well a number of things, obviously we are making some head way on trade talks, at least we're not having, we're not throwing rocks in the way of trade which is a bit of a change so that's good. two, the circumstances in hong kong which look to be detrimental, because we were all concerned with 1 million people in the streets if the weather was good there would be confrontation and that proved to be untrue that didn't happen it was very peaceful and that was a help and plus you've got a little bit of strength in the crude oil market which always is beneficial to the stock market, so still just things together but perhaps most importantly the president is backtracking a bit on trade and that's long overdue and something that is beneficial david: and the fact that he has
this open relationship, he's been talking a lot with tim cook from apple, taking advice from him, actually talking positive about what tim cook was saying when he was speaking negative about the tariffs. that was i wouldn't call it a backtracking on the president's part but he is more open minded on the issue than i've ever heard him. >> you and i may disagree on that one david. i think he's backtracking and made terrible decisions and terrible comments in the past regarding trade and this is at least a reduction of those i think ill-advised circumstances so let's give him credit for and we can both agree, at least the environment is not as toxic as it was a week and a half ago. david: and it's not just tim cook. a lot of people in silicon valley are now looking to the president, because their concerns are more with regard to europe and their new regulations and new taxes, than they are with china but i just want to move on to retail for a second with you dennis, because you had
terrific numbers last week. it seems a lot more than just a flash in a pan doesn't it? >> well, first of all there's no question the consumers feeling pretty good about life. the unemployment rate is down to historic low levels. the unemployment rates are up to historic high levels. people's incomes are rising so there's no question, the retail feels pretty good about life and the retail really doesn't care, is not concerned about the inverted yield curve. it may become concerned about it six or eight months, 12 months from now but that's not the important thing for retail. the important thing for retail the employment rates are extreme ly good and the incomes are rising and that's going to be strong for retail sales. as i was driving, i know that well actually at 10:00 in an hour we're going to see the e-commerce retail numbers. that'll be interesting to watch to see what that number is for the second quarter this year. david: now the naysayers and there are a lot of people out there doing it i think for political reasons because they want a recession so that the president would lose a re-election, but the naysayers
are saying that the retail numbers are fueled too much by consumer debt. is that a concern to you? >> no, actually consumers are somewhat indebt but they're not historically so. in fact if there's anything i'm worried about it's the fact that the savings rate has been tipping up. i like to see the savings rate go higher but other economists might say that the savings rate has been too extreme and that's money that has been taken away from retail that could go into retail sales so i'm not as concerned about the level of consumer debt as some other people are. not at all. david: so are you when you hear all of these naysayers talking about recession, what do you think? do you think that it's overblown >> well there will be a recession there's no question about it. the only matter is when shall it occur. nine months, 10 months, 12, 13 months after we first go to an inverted yield curve we get a recession. that shall occur. we went to an inverted curve for what, 15 minutes on wednesday afternoon it appears and maybe we're not going to have that in
version as we were worried about , there will be a recession probably some time in the next year and a half but is it as egregious as it was in 2007? no. there's simply not the bubble, the excesses that were required. david: and the financial recessions are always worse than every other kind of recession. the financial recession it doesn't look like we're going to have, the big question is whether it's going to happen before the election itself. that's the bottom line, right? >> if i were the president i'd be somewhat concerned because in fact that the yield curve did go to inverted as it did last week if it stays inverted start counting the months. what are we 14 or 15 months until the next election? that could be disconcerting to him so he's got to be concerned. david: dennis good to see you thank you very much. well, because out of the market today the price of gold is down. it's down about $14.70 right now still above 1,500 which is
pretty high, but again the fear index has come down a bit. oil is going up. that's usually a sign that the world market economy is a little more active than people thought it was when you saw oil going down it's now national average regular gallon of gasoline costs $2.61, that is actually down 17 straight days. it's a good time to fill up your tank. now this the business roundtable it's a group of ceo's led by jamie dimon, releasing a new statement saying that shareholder profits should not be the primary goal of big corporations. ashley? i thought they were. tell me more. ashley: that's interesting. let's take a look at this statement from jamie dimon it says, "americans deserve an economy that allows each person to succeed through hard work and creativity, and to lead a life of meaning, and dignity." that's very vague, indeed. it's interesting, look let's be honest, david. the decision-making at the
corporate level is complex at the very least. i think the concern here is so you can have special interest groups now jumping all over this and pushing companies in directions that they may not want to go and it is not in the best interest of the company, especially in the political world. let us not forget bernie sanders says that we should stop stock buybacks unless the company at the same time offers a rise in wages, and benefits. elizabeth warren also says that what does she say? that they should turn over part of the board of directors to -- david: do you know what this is this is hedging your bets. the corporations hedging their bets against the possibility that a left-winger gets in the way. ashley: right. david: ashley talking more about that coming up with charles he's very anxious to talk about this and here are the futures the dow is up 273 points , s&p up 30 in free market activity and the nasdac paired back just a little bit it's up 101 points so executives from
the big tech companies are in d.c. this morning to testify against france's new digital services tax. we are on that one. and congresswoman tlaib calling for a boycott, of bill maher's show after he criticized the anti-israel bds movement she's a part of that more on that in our next hour and new numbers showing workers are letting millions of vacation days go to waste each year, not going to believe how much money it's costing in lost benefits. "varney" & company just getting started. fact is, every insurance company hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands?
david: a new wall street journal nbc poll shows that 49% of registered voters are approving of president trump's handling of the economy. 46% disapprove. now remember, the important point is it is down, his approval, from the 10-point edge he had in early may. joining us is kelly sadler with the pro-trump america first action superpack. so kelly i'm wondering if all is talk from the democrats and
their friends in the media talking down the economies beginning to sink in? >> well david i think that you have a good point there. this poll was taken last week and we know the markets were in turmoil last week. also in addition it seems like reporters in the mainstream media and democratic presidential candidates are all but rooting for a recession and that's really sad if you look at it. there was an inverted yield curve that happened on wednesday , that sent headways, a tidal wave of media attention but when you look at the retail sales, it also came through last week. i mean, it got very tepida tension and that is a good indicator of the strong fundamentals of this economy. david: but the president realizes, forgive me the president realizes that china does move the markets in a big way when there's good news markets are up liked to and bad news they go down and you heard his talk about his conversation with tim cook kind of being sympathetic to apple's problems with the tariffs and everything.
it does seem like he's giving in in certain areas with regard to tariffs or at least listening more. >> well he's listening, and he very closely pays attention to the stock market and what these companies say when they come into the oval office. peter navarro yesterday saying part of the decision to delay the tariffs intel, the december christmas season was because a lot of these companies had dollar contracts and they couldn't pass the burden along to china so that was a concession that the administration made, and made clear to the markets but one of the things that the markets and investors and wall street need to realize is that this trade war is about the u.s. taking on china, for all of their unfair trade practices, and it is not going to be an easy thing to resolve and this president is committed to this issue. it was one of the key components that he ran on and so there will be fluctuations in the markets and so what companies need to do , what the wall street needs to do what the president said
yesterday is take your supply chains out of china, force them elsewhere because we will have volatility when it comes to this issue. david: those that could do it are doing it. those that can't, apple has so many iphones that they sell in china, they can't divorce themselves from china and of course gm sells more cars in china than they do in the u.s. so it's those companies i think the president is giving an ear to. kelly great to see you today thank you for being here appreciate it. happy monday. >> happy monday, david. david: here is a look at futures doing quite well as i mentioned to kelly a lot has to do with positive talk about china, as ashley was saying this very peaceful demonstration in hong kong, that's good news. markets are responding positive ly, nasdac is up market pre-market highs i should say up about 106 points pre-market. we've got about 15 minutes to go , and the demonstrations in hong kong are now effecting disney. why protesters are calling for a boycott of the company. we'll tell you why, coming up. you wouldn't accept an incomplete job from anyone else.
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♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. david: there's a my study out saying a record number of vacation days went unused last year. how many, lauren? >> 768 million days, that were unused? that was an increase of 9% from this previous year.
do you guys take all your vacation days? david: no. well, we all have those personal days. i never take those. >> so here is the thing, why are we not taking our days and i think it's two-fold. i think we have a really good work ethic and also, i think because the job market is tight and competitive companies are giving more paid time off, more benefits. david: also the whips they have in the corporate office. >> yeah, that too. david: for those who don't know the history of greenland, they called it that because it's full of ice, which is great for the minerals that it has but not so great for tourism but what about that? >> it's booming or about to boom. i just spoke to the national tourist there and since president trump made those comments that he wants or is considering buying greenland, they've seen a 15-times increase in the traffic to their website in just a matter of days. >> so now there are 100 people looking at it. >> 85,000 people went to green land, a lot of it is cruise ships, you know it's a climate
warm from the ice melting. david: it is stunningly beautiful the only problem is you get tired of seeing white and blue. >> have you been? david: in those regions. i wasn't in greenland specifically. >> there's the northern lights. david: that's true. i don't want to discount it. >> there's new airports to handle all of the tourists. david: and those resources that's why the trump adminitration is most interested we'll get back to that but now to china joining us is china watcher michael pillsbury so michael you heard the talk over the weekend, the president making sounds towards china, that we're much more positive than we've heard recently. i'm just wondering how the chinese are reading this, when he talks about, talks to tim cook from apple about the problems with tariffs and maybe loosening up as far as that goes how are the chinese reading all of this? >> well the choice are quite relieved, david, over this demonstration yesterday in hong kong. it could have gone the other direction with a lot of violence
and the police cracking down, and an international incident and instead what you see i think is the president wants a deal that he thinks the chinese haven't come around quite enough yet for a deal, so that's the trade talks. the hong kong negotiations are different, but i think you see the same approach with the president. he's talking about xi-jinping somehow meeting with the demonstrate ors leadership. if you look closely at that the demonstrators want it's not that out of the question. they want the word "riot" not to be used any more. they want an investigation, into police brutality, this young woman whose eye was shot by the mean bag or whatever it was and they want to continue hong kong 's movement really more than 30 years now toward universal suffering and election of their leader. now obviously there needs to be a colony so britain appointed their leader. they don't have a tradition of democracy in that sense, but they have a kind of strange system now that the british, they need to speak up and be involved because the british are
the ones who made the deal back in 84. they have kept out of this. they've sort of held the code of the americans, president trump and xi-jinping said you guys work it out, but we have some influence because we give hong kong special trade benefits as long as they're autonomous, but this is really between the british and the chinese and i think you see the president wanting to see a deal worked out in hong kong so it doesn't ruin the trade talks. in a way they're both linked, david. the issue of what is legally binding is a key issue in the trade talks. they can't just say best intentions and walk away and in hong kong, there is this written deal back in 1984 about how hong kong will not be governed by the communist party, so -- david: and exactly, i mean the point is that once again we hear how disin again use us how the deal making is about trade
issues whether it's talking about hong kong, and the president made a, i think, a pretty harmless remark about hong kong, in a tweet last week, and immediately, the chinese came out like he said he was going to be sending the troops into hong kong and he said they were claiming that the united states was behind the whole thing, linking us to terrorism in hong kong. >> which it can't. susan li is there too. david: she is indeed but the point here is, i mean, is the president used to this kind of rhetoric or could this sour the trade relations at all? i think he's used to this kind of rhetoric for sure. i think he has described him several books his main concern with china is they not be allowed to surpass us and become the number one leader of the world. that's what's at stake in both these things, both in the hong kong negotiations, and the direct trade talks. i'd just like to make a pitch
for something steve bannon said. steve bannon obviously is no shrinking violet. he said the president can't afford to listen to the fire breathers. that was the keyword, the "fire breathers" in america, who are calling china an enemy, saying, you know, we stand with the students in hong kong as though there's some kind of budapest 1956 rally and that's not what the president is trying to do. he's trying to get two deals done but until boris johnson steps up we can't make a lot of progress with the hong kong universal suffering issue. that's the big issue. david: but our big issue, michael, is the trade deal. >> by far. david: and hong kong is of great interest to, we have a lot of connections with hong kong. there are a lot of people who came here, a lot of americans who go to hong kong. there's a strong emotional attachment to freedom in that country, but is that going to interfere with trade talks at all? >> well president xi has got his fire breathers too.
he's got people telling him that it's time to crack down now and waiting for one more sort of violent episode in hong kong and send these police across-the-boarder is what i'm worried about. we got fire breathers on both sides david. david: we have the market opening coming in just a moment so we'll have to say goodbye but please come back and see us soon >> thanks, david. david: happening right now a hearing getting underway in washington d.c. on the french government's digital services tax as you can imagine, silicon valley is not too happy about that top executives for the big tech companies including caption , facebook, google they are there and we have more on this meeting in a moment. meanwhile, hong kong protesters are now calling for a disney boycott after a mulan star publicly supported the police crackdown. i saw this last weekend, ashley? ashley: the name christian lu, chinese american actress one of the stars of disney's live action mulan, she put out to her 65 million followers, think about that, 65 million followers
from the chinese social media platform basically putting out a statement, i support hong kong's police that says you can beat me up now, but what a shame for hong kong, that has absolutely started a fire people calling for and they also go after disney saying how could disney hire someone who they believe condones violence and suppresses people who are fighting for democracy. so disney, unbeknownst to them is being brought into this big fight that's going on, from hong kong, the fight for democracy, something i'm sure disney did not want to do, but she's not the only star. jackie chan is also came out. he's always been a supporter of beijing and he's like can't we just all have peace. david: you know what is happening is beijing is leaning on individuals and corporations to support them, in anything that's happening with hong kong. well this is the interesting thing that's happening right now we have a bell that is ringing on wall street, and pre-market
activity has been very positive. the president speaking to tim cook over the weekend talking about apple and the fact that it's at a point when he was complaining about tariffs giving samsung and other foreign companies an unfair advantage over the united states. that's why the market is trading up right in the get-go look at this it jumped right to 253 points on a plus side looks like we're heading up to 300 in any second. there we go, 300 points to the plus side, 315, i feel like an auctioneer selling something wanted by everybody in the crowd right now, but it is just steady now at about 315 points to the positive, 322, 23, on the dow. ashley: 330. david: do i hear 400, should be coming, but 325 right now on the dow jones industrial average let's look at the s&p, that's up a little more percentage wise a good jump in the s&p, 33.54, to the plus side up closer to the
3,000 mark and nasdac, up over 8,000. it is up 110 points right now, that's 1.4% gain on the nasdac, huge gain on nasdac and again, above that key 8,000 mark on the nasdac and the 10 year treasury yield of course yields have to climb a little because people aren't buying as many bonds as they were last week. they're going into the markets and when that happens bond yield s go up, and bond prices go down. gold also something that you go for if you're not interested in stocks and you're worried about the future is down significantly down almost $16, or $15.70, oil is up a little bit perhaps on the idea that there may be a little more worldwide economic activity, than we thought last week it's up to $55.83 for a barrel of crude. joining us now, jeff sega, keith fits gerald, and ashley webster,
the dow coming off three down weeks in a row, fed chair powell is speaking at the end of the week i believe it's in wyoming. keith are you buying anything today? >> well i'll tell you what i'm always interested. i did a lot of recommending on the buying side the last two weeks because you want to buy when there's blood in the streets even if it's you're own to paraphrase one of the old famous sayings so yeah i'm looking at this thinking it's great. the only question i have david frankly is whether the chairman is going to make friday's speech a policy position or simply just talk about what's happening. david: how could somebody hold his tongue? there's sometimes when it's better to be seen and not heard. i'm hoping this is one of them. jeff do you think this is a dead cat bounce? i know you're our perennial bear er here. i'm a bear. >> [laughter] >> what i see is that this whip saw has got to be making people dizzy now because one minute we're going into a recession and the next minute the trade talks are over. there's a lot of cross currents
here. to quote keith, i do like to buy when there's blood in the streets, to me, and this is kind of a dark analogy. there's not enough blood in the streets for me to be attracted to what's happening. we need a real pullback for these -- david: you're talking 2 or 3,000 points? >> yeah, we need about 2,000 or 2,500 points for me to think that this market is viable. i think now we have too much rioting on fed policy and the potential resolution to a trade deal that to me, looks like we're coming to a point where it's going to be a very long stalemate and that's my concern. david: but keith bulls have a lot riding on the economy. i mean, the economy looks pretty good, consumers are buying, we still have some good numbers across-the-board. the jobs number is still very strong, so are you basing your buys today on the economy or on some other thing? >> on the companies and the ceo
s, because i think the miss read on treasuries is very real. it's demand-driven not because of a recession so this has all been a knee jerk reaction. i think we are going to get a rip your faceoff rally if the trade tariffs come home, if the economy stays where it needs to be, because all this other stuff , to jeff's point is a distraction, so is it high, is it low? i don't know the answer to that but companies and ceo's pretty much have this figure figured out that's their job. david: keith i'm just curious you don't get political too much but i want you to get a little political now. do you think that the president in any way could be holding back some of the juice that is perhaps delaying some of the give he's willing to put into the trade talks in order to wait for as long as he can before there's a bounce that'll help you get re-elected? >> boy, you know i'm not smart enough to figure that out but what i do know is that china very deliberately counts on delaying negotiations until the opposing side rips itself apart, and we're doing that right now. we have all kinds of political
pressure on the president to remove tariffs, to put tariffs on to play hard ball, to play softball. we are doing china's job for them, as part of the negotiating process, so is that deliberate on the president's part? i wouldn't have a clue but is it deliberate on the chinese part? i would bet on it. >> i agree with a lot of what keith is saying but i also see that every time we get a big market sell-off, and i agree with what president trump is doing and taking a hard stance with them, but we get a market sell-off and then they make concessions to the chinese and put out the tariffs for further, and then the market rallies on those concessions. i find that problematic, because the market, in and of itself, should not be the primary concern. the primary concern should be getting a good trade deal and dealing with the steps of intellectual property which has annihilated a good percentage of our economy. that has to be dealt with and as long as the market is running, the trade negotiations, we're going to keep getting these
concessions. david: i'm wondering if today we heard of course on maria's show we had wilbur ross talking about a delay on huawei, and giving u.s. companies that have any kind of connection -- ashley: i'm still saying that's a bargaining chip something to hold out to get a deal done. it's handy to have for the president and let's not forget that chinese president xi doesn't have any of the pressure s the president has. he's not running for re-election , he's appointed forever, it's a very different economy in china. yes, they're hurting but the different issues this president has to handle even though the chinese economy is really hurting is a very difficult thing for him. it was smart to pushback huawei because that could be thrown in as part of a bigger deal. david: i'm looking at apple by the way guys let's just put up apple if you can on the screen. i see a gain of apple of over 2.5% right now up to $211, of course president trump had a meeting with tim cook and the president himself said that tim cook made a compelling case against china tariffs at least with regard to apple, because it
gives a bigger advantage to samsung, which doesn't have to deal with those tariffs to sell its wears. do you think tim made the case, keith? >> oh, yeah, you know, he's a very intelligent guy and a lot of folks don't think so but i happen to be one of those folks who thinks tim cook knows exactly what he's doing and i think he did have a very compelling to use the president 's words discussion with him. david: what does that boil down to ashley? are they going to give them a break on the tariffs? ashley: certainly by information he says i'm going to look at it and tim cook made a very good argument, samsung is based in south korea. it's very difficult to compete with samsung who is a very strong company. tim cook made his point whether the president will take action on that, we'll see. he may. >> well of course because apple has the most to lose here. they are going to be the most effected by the tariffs. tim cook should pitch a tent in front of the white house and continue to get these.
>> i mean in this meeting and i think this meeting was great and great that tim cook did it but the big revelation that samsung makes phones in south korea i don't think is as much of a revelation. i think what we're seeing here is that tariffs do effect consumers or they wouldn't keep delaying the tariffs because consumers to not effect the holiday. david: keith there's one thing we have no power over at least for the moment maybe the president will find the way but that's big tech. what big tech is going through europe and the europeans have all of these new regulations and a new tax they are going to be bleeding companies from. what happens there? do you think the president tries to retaliate in any way? >> yes. >> well i think the president probably does try to retaliate but this highlights something we've talked about frequently over the last couple of years. if there is a taxation regardless of the authority, big companies have it in their interest to pass it along. now in this case the french retailers are going to get hammered but that's a french government problem not a big tech problem. >> although it brings big tech
closer to the trump adminitration. ashley: let's not forget the president has threatened to tax french wine in retaliation. david: let's look at the big board if we can. the markets off its highs so far , it's up 308 points, 310 right now, still a very sizable gain. remember we lost 400 points on the dow last week, when you add in the negatives and the plus days so we need a 400 point gain to wipe outlast week's losses. it was the third week in a row when we had losses in the major industrial averages. well, check estee lauder shares hitting a record high they reported higher profits and beyond meat, this is, i don't know why stu is so fascinated with this. he is and they are investors are not i would not say obsessed right now, but it's a healthy gain. they're up about 1.5% today, up to $146. this is after hello fresh, oh,
yeah, the meal delivery service, they said that it's adding beyond meat to its menus and that's one reason it's up. bitcoin is up, gold is down, but bitcoin is up, modestly, $278 again that's a modest gain for what happens with this very volatile stock, i say stock, you know what bitcoin is but it's up to 10, $708 for one bitcoin. bank, thank you that was a good discussion. i appreciate it. coming up jc penney and macy's both expanding into the used clothing market. partnering with a company called thredup to offer secondhand items at a discount. the ceo joining us in our 11 a.m. hour and nbc universal canceling the release of the controversial movie "the hunt." now remember that was all about elites hunting deplorables. now it looks like the movie could hit theaters after all we told you this was going to happen once it's there not going to throw it away and the mainstream media practically
salivating they possibility of a recession but the average consumer does not seem worried spending is very strong. that story, next. announcer: fidelity is redefining value with zero account fees for brokerage accounts. and zero minimums to open an account. at fidelity those zeros really add up. ♪ maybe i'll win ♪ saved by zero
david: check the big board here we've lost a little bit now we're under the 300 mark on the dow the dow jones industrial average is up 283 points right now it was up about 315 at one point it come down just a little bit all of the indices have come down but a big way to start the week, big gains in all of the indexes all over 1% now look at tiffany's. tiffany's is launching a men's jewelry line to give sales a boost. christina p is at the stock exchange with more on this,
christina my favorite cufflinks i don't wear them when i'm wearing button downs liked to so they've had menswear before, but this is a whole line, right? >> aren't you fancy foretelling everybody you have tiffany cuff links but yes, they do offer some men's products. they don't have an actual full line and that's the big news for them, as they're launching this menswear line in october, there's 100 design pieces rang ing from $200 all the way to $15,000. why is tiffany doing this? because they're seeing a drop in spending overall, sales are a little bit lower and that's because tourists aren't buying as many products and think of the younger generation. the younger generation isn't buying as much any more so they are going after men and david, i guess maybe this describes you in the press release, this line are you the spirit of the modern man, bold and confident, casual yet refined? david: wouldn't i be so lucky if i were. honestly we've got wedding presents from tiffany 30 years
ago when my wife and i were married and we weren't so crazy about we traded them in. i got cuff links, my wife got something else that's why i have tiffany cufflinks but they've lasted for 30 years these people make things to last for a long time. reporter: that's true which is why it's so expensive and maybe now you can add bracelets and necklaces when they launch in october and for this stat, men's jewelry increased 23% just in the last five years, so that's according to trends, hence the reason, tiffany capitalized. david: good stuff thank you very much. well if you watch the mainstream media lately it seems that they are almost rooting for a recession. roll tape. >> recession jitters, and president trump said to be rattled as economic alarm bells causing a wild wall street. >> there are indicators the u.s. could be headed for a recession. >> there are some rough waters ahead, maybe a recession. fears of a coming recession spikes on the heels of a key
economic indicator what's called an inverted yield curve. >> the yield curve has inverted before every u.s. recession since 1955. recession. >> recession. >> it's a recession. david: joining us now is rich carlguard. rich does the word recession flow off of your tongue as easily as it does the mainstream media? >> i would be very humble even if i thought one was coming because nobody is able to predict recessions. you know, they always happen in the rear view mirror. we didn't go into recession the last time in the fall of 2008. we actually entered it in december 2007. it was later revealed so this idea that indicators are driving us toward a recession is crazy to begin with. david: but rich it's clearly politics is it not? >> yeah, i think so, but if you look at the key indicators that
are really accurate over time i look at small business owner optimism, i don't look so much at consumer optimism, because that can be a rear view mirror thing. i look at where small business is deploying capital. what we're seeing today david schweikert what we saw during the reagan administration when large company ceo's were mixed about where the economy was headed but small business owners are very optomistic and i think large company ceo's do have mixed feelings largely having to do with trade but small business owners are very optimistic and remain so. david: very good indicator. next one, rich representatives from google, amazon and facebook are not happy about the french government's digital services tax, this is just a money grab for the french isn't it? >> yeah, it's 3% tax on gross revenue, so it's a sales tax that's really kind of a tariff, and i am so glad that big tech
is coalescing around the trump adminitration to work out, to fight this thing. i'm glad that we have that often opposing sides are meeting the french with aggression because if the french win on this, then new zealand, spain all kinds of countries get in on the money grab. david: so how do we fight it, rich? >> well, you know, the threat of wine tariffs i suppose is one , but i think the big tech companies really have to rally with their counterparts in france and show that this is going to wreck the french technology economy if they do this, because you're going to see the withdrawal of all of these wonderful platforms and tools. emmanuel macron fancies himself as this transformative head of state in france, who understands the digital economy, but he's clearly acting like a reactionar y in this case. david: absolutely, publisher of forbes great to see you, rich
thank you very much for being here. >> you too, david. david: president trump just tweeting about the border. "democrats want open borders and crime, so dangerous for our country, but we are building a big beautiful new wall. i will protect america, the dems don't know where to start." it's a busy tweet morning, and now this, if you're in the market for a new car, now may bet time to buy. automakers getting ready to rollout their latest models but car dealers can't unload their current inventory. they've got a lot of it. does that mean big discounts? just around the corner? we are asking our top car guy, coming next. truecar is great for finding new cars. you're smart, you already knew that.
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over the last four years. so on behalf of chevrolet, i want to say "thank you, real people." you're welcome. we're gonna need a bigger room. to the wait did frowe just win-ners. prouders everyone uses their phone differently. that's why xfinity mobile let's you design your own data. now you can share it between lines. mix with unlimited, and switch it up at anytime so you only pay for what you need. it's a different kind of wireless network designed to save you money. save up to $400 a year on your wireless bill. plus get $250 back when you pre-order a new samsung note. click, call or visit a store today.
david: check the big board, well we have come off of a 1% gain but it's still a very health it gain on the dow, 256 points to the plus side, nasdac is still up a full percentage point a little bit greater than one right now about a percent and a quarter on the nasdac. well have you been car shopping lately? you may want to hold out for a lower price. dealerships are swimming in inventory, especially suv's and they can't sell cars without offering big discounts joining us now is fox news automotive editor, it sounds like there's a great time to buy, gary.
>> coming up to it j.d. power says there's a lot of 2018 model s still on the lots right now at 3.5 percent of sales in recent months and its been going on all year. the automakers just really didn't work their production well enough to deal with this downturn we've seen this year, so we're starting to see 2018 models still on the lot just as the 2020 models are coming out so august/september you'll have to see the dealers and automakers putting more incentives on that. david: if i'm in the car market what is the best time? do i wait until september, maybe late september before going in when they're really desperate? >> yeah, i'd keep an eye on it right now. september is a good time. remember too the model year starts the prior-year january, so this is already 2020 models, your car is on the lot so if you're talking 2018 some of these might be really really old right now and dealers are even having to rent space in other places to keep this inventory. david: so their overhead they can't afford for their overhead to keep going much higher? >> no, financing for these cars
, some points it's like well is it worth keeping it around hoping we sell it or should we just take a break on it and unload this thing? david: how about hybrids? i heard they are phasing them out because they just weren't selling well but there are people out there, i know there aren't too many because they weren't buying cars who might want to get into buy one. do they have an advantage, the dealers now, because since they are being phased out maybe they can drive up the prices a little bit for those who really want them? >> well the hybrids it depends on the auto maker you're talking about. ford, toyota big on hybrids, automakers are getting away from them and general motors are just done with it we're moving towards electric vehicles. there aren't so many out there and a lot of plug-in hybrids you can still get the federal incentives and state incentives and on top of that they might not be in big demand when you look at regular electric cars like tesla now, that are drawing a lot of people in but there are still a lot of hybrids that do well. the toyota rav 4, heavy demand, great vehicle, 40 miles a gallon
out of the mid-size suv, and they do well. a lot of the other brands got into it because they had to but they haven't been able to build their own brands and sell them. david: we only got 20 seconds but electrics. i'm still skeptical of electrics i've just seen more car companies fail with them than succeed. why are they going in that direction? >> look it's just being forced by the regulations and a lot of younger consumers do like the idea of electrics, but until the infrastructure is there until the production numbers are really high and they can amortize the cost not a lot of money is being made there down the road especially even for the legacy automakers. david: great to see you thank you very much. appreciate it. the new york times shifting its trump coverage from russia russia russia to racism, racism, racism so is this the new rally ing cry from the left and the mainstream media? we're asking that question. and more than a dozen people arrested during competing protests between antifa and next hour we'll be talking to a former antifa member who says the far left group is just as vicious and demeanted as ever.
david: happy monday, folks. 10:00 a.m. on the east coast. stuart is back tomorrow. he is missing market rally. optimism over china trade helping to lift stocks. dow jones is up over a percentage point. all other indexes are up over a full percentage point. apple ceo tim cook says tariffs on chinese goods are hurting apple and helping their main competitor samsung. the question is, will the president do anything about it. dueling rallies in portland, oregon, far right, clashing with far left group after tina. weapons, bear spray and metal
polls were seized. we'll tell you what exactly what president trump said. second hour of "varney & company" is just getting started. ♪ >> i don't see a recession. i mean the world is in recession right now. although that is too big after statement, es most economists actually say we're not going to have a recession. >> i don't see recession at all. second of all the trump pro-growth program which i believe has been succeeding, lower tax rates, big rollback of regulations, energy opening, trade reform, we're going to stay with that. david: president trump and his top economic advisor larry kudlow both downplaying recession talk. they say the american economy is healthy. market watcher ivan feinseth.
where do you stand on this? >> i think the u.s. economy is very strong. nowheres near going into recession the way the bond market is predicting. we have record employment. we still have record levels of consumer optimism. consumer confidence is near a 14-year high. the con psalmer makes up 70% of the economy. you didn't have another quarter disappointing corporate results. corporate results on balance were better than expected. we're still in a very good economy. what we have is some slowing in global growth. david: yes. >> but that was to be expected. i think we'll see a pickup of global growth and u.s. growth probably bit fourth quarter of this year, going into the beginning of next year. david: ivan, is it central banks of europe, which have these negative interest rates, frankly japan tried for decades, didn't help their economy grow.
is that what is moving our bond market right now? is the premonition, that you can't ignore those negative interest rates abroad? that will bring down our rates? >> yes. there is a huge demand for any yield anywhere, but what is crazy is, the yield on s&p 500 is just below 2%. and the stock market doubles almost every 10 years. so the yield on the 10-year treasury at 1 1/2%, with no upside, really doesn't make sense. i believe that the fed is going to cut rates another 25 basis points in september. david: 25? you discount 50 basis points entirely? >> no but the fed has shown a history of being very gradual with 25 basis points increases. i think you see 25 basis point decreases. one thing perplexing is that i believe powell is one of the most market friendly feds that i
have ever seen. i don't know if trump's criticism is just. he is willing to go cut rates at any slight weakening in any economic data. whereas alan greenspan for example, wanted the data we're confirming we're in recession before he would cut rates. so powell is on the side of the bulls as well. david: sounds like what you're saying about the market, strength of the economy out there. you point to one stock you say is a bargain which is macy's which was beaten down terribly last week. i understand you buy low, it is low, compared to way it was a couple months ago, what do you think the future is right now? >> i think future is good. 90% of retail takes place in physical stores. where online is strongest on the holidays. people are not buying for themselves. they're buying as gifts. the other thing macy's market value $5 billion right now.
look at two properties they own in new york city, macy's herald square and bloomingdale's on third avenue are worth $3 million a loan. the macy's, they merchandise and market well. the problem in the most recent quarter they didn't really call their inventory mix well which happens in retail. it is tough to do sometimes to predict near term consumer trends. macy's is one of the most successful omni channel retailers out there. david: did you buy last week, would you buy more this week? >> absolutely. at the price now. it also almost a 9% dividend yield. david: that is extraordinary. people are looking for beaten down stocks, if you're giving a dividend but 9% yield is extraordinary. i thought ford was big at -- >> decline in price, you can earn 9%, you're getting paid
nicely to wait. david: i'll say. one thing badly priced are canada goose overcoats i think you can find a perfectly good one for at least half the price, if not more than a discount but you like the company. why? >> no, i don't like canada goose. david: oh, i thought you did? >> the brand is losing its luster. a lot of backlash from the core consumer base in china and in the u.s. i don't really think the value is sustainable. not one of my favorites. david: we were wrong on that one. we thought you were for it. one thing against it, people are buying phony canada goose patches, buy a cheap coat, put one of the patches on it, they think that will do it. really appreciate it. thank you for coming in. >> thank you. david: senator lindsey graham says the inspector general report on russia will be ugly, daming his words for the doj.
listen to this. >> i want to declassify as much as possible. i want the american public to hear the story. i want all this information to come out. i don't want people to believe what i say about it. i want them to read for themselves how bad it was. i want it all out. i want people to see how off the rails this investigation got. i want people to be held accountable and i am patient. david: come in phillip wegmann, "real clear politics" white house reporter. what do you think will come out of this report? >> we're not certain right now but we do know a lot is eventually going to come out because when you look at it, not only is senator graham's committee taking a closer look, but you have the inspector general, but ag barr put a team on this as well. there will be a lot more information coming out. republicans want their pound of flesh. they have been hearing about the investigation for three years.
the evidence is underwhelming. of particular interest to republicans is looking for emails exchanged between then fbi director james comey and then cia director john brennan about the underlying steele dossier which they believe was the impetus for all of this. they will be looking at that. if you believe former representative trey gowdy from earlier this may he predicted those email he said he had seen were doing to be damning. david: we heard last week from someone in the mix, this man who was a spy, he has been working for various spying agencies in the united states and elsewhere in the world, who said he was at the time the obama administration was still in control, he was working for a u.s. intel agency. so there is stuff dribbling out that under president obama's watch, maybe not with his direct intervention one way or the other but under his watch, intel agencies were working to spy on
presidential campaign, trump's campaign. >> that is a question we saw senator lindsey graham we saw ask yesterday. he will not only take a look what the fbi is doing, he will make it clear he is examining what is going on with the cia as well. back in june of 2017, both "the washington post" and "new york times" reported that brennan had an asset who was close to vladmir putin. and brennan found this information so sensitive and so important that he wanted to put it on president obama's desk and he did so by hand in an envelope actually. so, senator graham, he wants to know about that information. he wants to know who knew it and when. david: phillip, we have only 10 seconds this battle now between representative talib and bill maher fascinates me. president's intention with his first tweets on aoc, everything that got him in trouble, go back home tweets, it seems like he was trying to get the democrats
to unite around the radicals and they're being put in a position, independents like bill maher refusing to go there. >> whether or not that was the plan or whether it was a happy accident for the administration that has been the effect. alexandria ocasio-cortez and her squad have become the defacto face of the democratic party. the trump campaign, if you speak with them they couldn't be happier, whoever gets the nomination they will have to own rhetoric coming out of the father left of the democrats. they think this is good opportunity for the campaign going into the general election focusing on those two. david: phillip wegmann, thank you for being with us this monday. "new york times" editor-in-chief, recording staffers they're transitioning the newsroom from covering the russia probe to covering trump racism. we'll see what our media guy
brent bozell about this. he wants to designate antifa to a. portland's mayor says it didn't get violent. coming up we have a guy that says that is not the case. google, amazon, facebook, will meet with trade representatives in d.c. today. they're not happy about a new french tax that could hit big tech companies hard. we're on that. more "varney" after this. ♪ imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination.
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we're come off the highs. but we're still moving strong. a lot of optimism about china and president talking about the possibility of maybe going easy on some terrorists, vis-a-vis apple. president trump tweeting about the "new york times," recently. here it is. quote, the failing "new york times" in one of the most devastating portrayals of bad journalism in history got caught by a leaker they are shifting from their phony russia collusion narrative, mueller report and his testimony were a total disaster to a racism witch hunt. journalism, he puts that in quotes, has reached a new low in the history of our country. it is nothing more than a evil propaganda machine for the democrat party. the reporting is so false, biased, evil, it has become a very sick joke but the public is aware, ago crooked journalism. come in brent bozell media
research founder president. brent, russia didn't work. racism is the new rallying cry from the left and journalism. what do you think? >> be still my heart. they don't like donald trump. it is a segue from one to the other that struck me. what they said was, they expected that bob mueller was going to hang donald trump. but then he didn't. then there is this, oh, my god moment at "the new york times." now what do we do? the segue is that this fellow comes forward, he says that it is the readers of "the new york times," liberal readers of "the new york times," that weren't satisfied. so now they switch to racism to placate those readers. call me silly, i thought they were supposed to be reporting news. but they're not. they are doing what their left-wing readers want them to do. david: the other problem, it's a huge one in my mind, it is deluding the importance of
fighting real racism. racism is supposed to be hatred based on race and nothing else. now it is based on race, and you have to have certain opinions, if you don't have those opinions you're a racist as well. it is deluding the evil of racism in my mind -- diluting. >> i don't have exact quote, one of the staff members quoted in this piece saying race has to be attached to everything into society, into culture, into everything that we do, everything is racist. you're absolutely right, you have, you have reduced racism to a political talking point, not to a real issue, but, but, i'm also going to say racism, real racism applies to a fraction of a fraction of the american population, whether black, white, anything else, it is a fraction. i think what is happening is two things. one it is being exploited for political reasons by the left. secondly i believe it is being
exploited for ratings like networks of cnn, they keep putting the same documentary about american racism on the rise every single weekend because they have nothing else to air. david: brent bozell. we're having a little trouble with your mic. we love to see you hear anytime. come back soon. appreciate it. >> produce of the "the hunt," a movie about killing deplorables hopes it would will reach theaters after universal pulled the september release. tim cook, made a compelling case, the president's own words, apple will be hurt by china tariffs, and their chief competitor samsung will be helped by those terrorists. will the president make a concession for apple so it stays competitive? we'll ask the question next. ♪ there's a company that's talked to even more real people
than me: jd power. 448,134 to be exact. they answered 410 questions in 8 categories about vehicle quality. and when they were done, chevy earned more j.d. power quality awards across cars, trucks and suvs than any other brand over the last four years. so on behalf of chevrolet, i want to say "thank you, real people." you're welcome. we're gonna need a bigger room.
david: check the big board. it's a happy monday. it was actually up over 300 points, about, about 45 minutes ago. it has come down then. 200 point gain of the dow. very happy monday. check beyond meat. hello fresh, a meal delivery service says it is adding beyond meet to its menu. that didn't help the company. the controversial movie "the hunt."
this is a group of rich elites wanting to kill deplorablables their words, may end up in a theater after all. lauren simonetti, a lot of this believe this would happen, they would not waste a film once it is in the can. >> 18 million-dollar film. this is what he told vulture, if i was offered the choice to make the movie again, i would say yes. we definitely made marketing mistakes. we made plenty of mistakes along the way. i learned a lot. unpack that first part of the statement. he said basically a controversial idea to begin with, a controversial idea to begin with. universal did nothing to tone down the rhetoric. he goes on. it might change how i would position movies and consult on the marketing of movies, but actuallying the making of the movies? no. that goes to the heart of the problem. a theme, a plot where the elites had not down deplorables
hollywood would make all over again as if they don't see anything wrong with the outrage about this. ashley: they say the deplorables are the heroes in the movie. they're trying to push back. >> oh. david: we heard some of that. it was more in the form -- ashley: we don't know. david: it was a excuse. the point, maybe they knew all of this controversy, how could you do a film like this not know there would be controversy. any publicity is good publicity in hollywood. when they do release, a lot of people may have not interest in going. >> the shootings didn't help. when they put this film before test audiences they were shocked at the negative reviews of the movie. political overtones, subject matter. david: that is what they say. that is what they say. frankly i don't believe that they were -- >> everyone wants to see it, because we're talking about it. david: would you? >> i think i would see it. curiosity. ashley: no. david: i'm paid to do things i don't like. they may have to pay me. >> i'm curious. david: lauren, thank you. executives for google, amazon,
facebook are in d.c. to make their case against a french tech tax. france wants to slap on a 3% tax on local businesses. amazon hits back. they plan to pass the cost on to french consumers if they do. we have all the details coming up. temporary migrant center will open this week at the border, to relief overcrowding. we need a real solution to this. so what do democrats want? they want to send money to corrupt governments. these migrants are fleeing from. does that make sense? more "varney" after this. e ♪ liberty mutual customizes your car insurance,
♪ ♪ baby you can drive my car, david: right behind the beatles. ashley: he is the unknown fifth beatle. david: you remember that one. check the big board. we're doing better than last time we looked. it is up 232 points on the dow, getting closer to the 1% gain. it is up .9% now. it was up well over 1%, before the other indices are up as well. google, amazon, facebook are heading to d.c. today, meeting with trade representatives. they're not at all happy about a new french tax that will be placed on big tech companies. hillary vaughn is standing by. what is going on right now, hillary? reporter: david, right now they're testifying to ustr representatives explaining why this tax would be bad for them, ultimately would be passed down to consumers in france. we're hearing from alphabet,
facebook, google, amazon, even a trade group representing apple as well today. this tax is really targeting a certain type of business, anyone making over $831 million worldwide in digital revenue. facebook's alan lee says, this new french tax, targeted at people making money from digital services would be really difficult to calculate because they don't decide, they don't figure out how much revenue they make based on what user is in france seeing the ad but they actually calculate their revenue based on who is buying the ad, where they are located. they have data to calculate the tax but they would have to rework their systems in order to do it. google's nicholas bramble, saying this tax is uniquely targeting tech companies in particular. he says this could spark a dispute between companies and the french government over where their revenues are actually coming from. a trade organization representing apple, facebook, amazon and others says this tax
would likely be passed down to consumers but france is not the only one considering a digital tax. there are other countries in the eu doing the same. and the u.s. is looking retaliatory tax response. comment period ends a week from today. you could see the u.s. take action on french companies as bell. david? david: willie sutton said, they asked him why does he ron banks, that is where the money is. why are they taxing them, that is where there is lot of free flowing money. hillary keep us updated. president trump said tim cook made a compelling case against tariffs on china. listen to this. >> tim was talking to me about tariffs, one of the things he made a good case, samsung is their number one competitor, samsung is not paying tariffs because they're based in south korea, it is tough for apple to pay tariffs competing with a
good company that is not. how good after competitor? they are a very good competitor. so samsung is not paying tariffs because they're based in a different location, mostly in south korea, but they're based in south korea, i think he made a very compelling argument so i'm thinking about it. david: rebecca fan none, tech titans author. what do you think about it? does apple have a case that tariffs shouldn't apply what they do in china? >> apple is competing with samsung which is the leading mobile app company, i think they do have a case. we need to have more open economy, more free trade, but on the other hand, apple is producing in china and samsung is producing in south korea. so this gives samsung a leg up over apple and, so tim cook does have a case in his specific incident but overall i think that, we do need this open
economy. we need free trade. i think it is good for the global innovation economy overall. i think it helps consumers and businesses. david: but, the question is, china made this huge, great leap forward. i think he used that phrase, borrowing from mao zedong's phrase, but high-tech they made a big leap. how much of their big leap was based on technology they stole from us? >> i don't think they stole technology from us. david: you don't think they stole any technology from us? i think even chinese technology wizards admit there was some of that going on. >> what was happen, china was coming in, investing in u.s. tech companies. they invested in many leading companies in the u.s. including uber, lyft, magic leap, tesla and they were learning. also -- david: they were doing more than learning. there were some members the chinese government that were sent in to literally spy on tech
companies, steal some of that hardware or somehow try to devolve it and figure out the way that american companies were evolving with that technology and bring it to china. so i mean, there really was a concerted effort on the part of the government to steal from the united states. >> i think the fbi is looking at 1000 investigations right now. they're investigating these cybersecurity incidents, and i think the jury is still out. we need to see what the outcome of that investigation is. i do think china has come in to the u.s. they have invested in our leading u.s. technology companies. they have gone to school at our finest schools and they have worked in our finest tech companies in silicon valley and elsewhere. they have gone back to china and taken a lot of know how and copied what we have done in the u.s. and made the facebook of china, the google of china and so forth. but now today, what china is doing is they're actually innovating in their own right
and these -- david: forgive me for interrupting but do you think that is why they're making progress on 5g, is their own innovation? clearly they have a tenfold gain on us in terms of platforms for 5g they have over there? >> they're definitely outspending us in 5g infrastructure. they're getting ahead in other very important tech sectors such as a.i. china is, has a national government priority to get ahead in at least 10 technology sectors that really matter. david: let's talk about a.i. for a second. this is something that i'm sure you know, peter thiel, one of the great mine in high-tech is a problem. when companies like google are trading information on a.i. in their dealings with chinese companies, the government gets involved and some of that a.i. finds its way to the military, the chinese military, which is not our friend. is that a problem?
>> we do have companies, the leading a.i. company in the world, the most valuable a.i. company in the world from china. a company called since time. they are using, very big in facial recognition which can be used by police to track criminals. it can be used to track jaywalkers. david: we've seen it with the hong kong protest. >> exactly, we've seen it being employed in this case. >> they are actually working with honda on autonomous vehicles, working with qualcomm. qualcomm is an investor in sense time. they are working with qualcomm on next generation devices. it is not all such a bad, bad scenario. david: it does corn me. i have to ask one final question. who wins with 5g. who gets their whole system tied into 5g first, china or the united states. >> what is happening now, you have a race. china has its own standards, developing its own standards.
it is being accepted in many countries around the world. the u.s. is fighting back. we're not allowing china 5g to be in this market. same thing with australia. david: but the answer to the question is? >> who is going to win? i think the jury is still out. i think what is happening is that china is, china will have its own standards. those standards will go into asia. i think the u.s. and the western world will have its own standard. david: wow, two systems? >> two systems, we've seen that before. rebecca fanon, tech titans of china. appreciate it. >> thank you. david: ride share companies uber and lyft admitted they contribute to traffic congestion. ash, you have details. ashley: that is interesting. they long argued the opposite, they reduce traffic and reduce personal car ownership. they had to agree with latest poll and survey because they commissioned it it themselves which is interesting. they looked at five major cities
trying to figure out how many vehicle miles traveled were taken up by uber and lyft rides. some of the numbers were interesting. san francisco county, more than 13% of all the vehicle miles traveled were through uber and lyft. boston 8%, wanton d.c., 7.2%. what is interesting, 1/3 of all miles traveled with no one in the car. called it dead heading like in the air industry, driving around looking to pick up people. 13% of the time they're just adding to the congestion. so very interesting stuff. they didn't even bother traveling, looking at new york city because they said forget about it. plus a lot of people in the city here don't own a car. they have a lot of other transportation options. they actually do contribute. david: self-driving in new york, i don't think it -- ashley: never work. david: but who knows, who knows. ash, thank you very much. president trump wants to designate the far left group antifa as quote, an organization of terror. we'll be asking a former antifa
member if he thinks that is a good move. that is coming next. the business roundtable, a group of top ceos, led by jpmorgan's jamie dimon, they released a new statement, maximizing shareholder profit should not be focus of big corporations. charles payne is really charged on this one. he is coming up at top of the 11:00 a.m. hour. you want to hold on for that. ♪ (woman) somebody would ask her something and she would just walk right
past them because she didn't know they were talking to her. (deborah) i just could not hear. i was hesitant to get the hearing aids because of my short hair, but nobody even sees them. (avo) our nearly invisible hearing aids are just one reason we've been the brand leader for over 70 years. (deborah) when i finally could hear for the first time, i started crying. i could hear everything. (avo) call 1-800-miracle to start your 30 day risk-free trial and schedule your free hearing evaluation today. david: check the big board. we popped over 1%. it is back down to .9% gain on the dow. 256 points on the positive side. the market feels pretty comfortable about the gains it has made. seems intent on staying there at least for now.
that is great news. over the weekend antifa and far right group proud boys held dueling rallies. 13 people were arrested. president trump tweeted about it. the major consideration is being given to naming antifa a quote organization of terror. portland is being watched very closely. hopefully the mayor will be able to properly do his job. come in a former antifa member, field coordinator for the leadership institute. gabriel, should antifa be labeled a terrorist? >> i definitely think so. they certainly behave like terrorists. it shows you the mayor of portland was not able to contain antifa. he had 1000 officers. on friday, i was saying this is great thing, he was finally taking antifa seriously. he had 1000 officers, their one goal was to prevent violence and we saw violence. david: let me stop you, gabriel, the mayor says it was peaceful. you have information and video
that go against what the mayor said about it being peaceful? >> it was largely peaceful, for the most part peaceful. see some videos, there is video of antifa protesters are trying to pull people out after bus to try to beat them up. there is another video after gentleman, who was not there for political purposes. he was walking with an american flag taking pictures. they threw things at him. grabbed his american flag and threw it on the ground. antifa doesn't sand for something. it stands against something. unfortunately they use violence and intimidation, to attack people because they disagree with them. david: the question is, beyond whether they should be labeled terrorists, whether they are being given due consideration that other violent groups are not being given? we're looking at video of the bus incident that you talked about. look, they're smashing in windows. they are anything but peaceful. a pretty dramatic example of exactly how unpeaceful, violent
they are. i don't see police around there at all? >> i think unfortunately, this was what we showed you. there were 1000 officers there, yet they were not able to contain the threat of antifa. we have to be proactive fighting against the threat of antifa and terror groups. we have to label antifa a domestic terrorist organization, not wait until they're out there with weapons. at that point it might be too late. david: what is happening in terms of the reach of antifa? we see concentrations in places like portland, which you argue, i think very persuasively, is getting worse because they're giving so much leeway to antifa to do anything they want? is it growing? is it just still isolated in these very liberal communities? >> i think it is definitely growing. we have to look where this is coming from, where the ideology is being fostered. it goes into the college campuses. there are certain professors at universities that promote the idea that antifa is good thing.
thinking about the university of wisconsin, whitewater, a professor wrote an op-ed, claiming antifa was a form of self-defense. it just doesn't make sense to me, how attacking a bus, throwing things, breaking windows is a form of self-defense. i am really happy going into the college campuses to talk about the idea, dialogue is better than violence, thanks to the leadership institute with a tour that i'm doing. called behind the black mask. david: now you must, i know, you're, the tenor of what you're saying argues totally against violence but you must realize there are going to be some antifa people in the audience that will try to stir up trouble? >> well, that, every time i work with some students, they definitely get security for me. i have had a few events. one coming up in vegas and arizona coming up. we are definitely concerned about that. but at the same time, i think it is important for the message to be heard. on college campuses, conservatives and free speech is
being harmed by biased, liberal administrationtores. david: you're a brave man for two reasons. one going out there, realizing there will be feedback from people that are not nice. two, to admit you were wrong is very tough thing to do. you clearly went through that with reversing opinion on antifa. thanks very much for coming in gabriel. stay safe. >> i will. david: good to see you. the u.s. mexico border is overwhelmed with migrants from central america. a new facility is being built to house them. how do democrats want to address the crisis. send dollars to the corrupt countries they're fleeing from. does that make sense at all? ashley: no. ♪ ♪
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but we are building a big beautiful new wall. i will protect america. the dems don't know where to start. mary an establish that -- o'grady "wall street journal" columnist. this is the dem's definition why we have border crisis. terrible governments in central america, make life more difficult, dangerous for people, they have to come to the border to survive. their owe solution send more money, more tax dollars to the dangerous corrupt governments, essentially diddle away our tax money to these governments where it goes direct to swiss bank accounts. doesn't make sense, does it. >> i take a little bit opposition. >> what do you disagree with what i say? >> basically we do give foreign aid to central america. it is a very small part of our overall budget. i think some of what we've done there, some, has been good. it has been helpful on the security front, some. what i think it is interesting about the president's decision to try to cut some of that aid,
he is saying to usaid, show me what you have done. every time we try to cut that spending, they all start screaming, oh, no, there will be a big crisis. show me what you've done. we know a lot of money spent there particularly through usaid goes to what we call the beltway bandits. it actually never leaves bethesda. david: or goes to bandits in the country to which the money is sitting. full disclosure, mary and i both covered latin america for many years. i did a lot of storieses usaid money coming directly from taxpayers or totally wasted or stolen by countries. >> here is another thing i will take exception to a little bit, when people say the fault is latin america. we give money, for example, to the u.n. in a program that was called the commission against impunity in guatemala. turned out it got totally
corrupted, taken over, politicized t was doing more damage to guatemala and nobody in congress would get involved in the oversight process. they didn't want anything to do with it. the left wanted to push it and the right just backed off. david: the biggest fault i think is the logic of the democrats. if you take their logic, which is the reason for the border crisis is because corrupt governments, therefore answer to that crisis, send more money to corrupt governments. that shows disdain for taxpayer dollars. where it goes, what happens to it. >> not only that, their logic the reason these countries are poor, they don't have enough foreign aid which is crazy. again, guatemala, el salvador, honduras, all of these countries you find activists, anti-mining activists. a lot sometimes funded by americans going in there, shutting down mining projects, hydroelectric dams. in other words they make it, the left makes it very dangerous for
investors to invest in these countries. that's the problem causing poverty, not a lack of foreign aid. our foreign aid rarely gets at that problem. partly because it's a domestic political problem but partly because the people we give the money in too don't have the capitalist, you know incentive that investors would have. david: should point out there are a few bright light in places like guatemala. at that there was a great university there started by a free marketeer, there are other movements to get the free market. but they can't seem to get rid of thats mercantilist past from the spanish -- has to be quick. >> we have millennium challenge corporation. george bush said we'll put that there, only if they meet the stipulation. when they started not to meet the requirements, do you think that the bureaucrats in washington didn't want to keep shoveling money out?
david: they shovel money out where it clearly, they don't know how to stop digging when they get into a hole. it is that simple. mary o'grady from "the wall street journal." thank you very much. we have a big hour coming up. four democratic front-runners rail against the rich, biden, warren, sanders, harris, they're all multimillionaires. talk about hypocrisy from the left? we're on it. explosive testimony on capitol hill exposing google to influence election results to influence the election. one survey says google could influence 15 million votes. you will hear what he has to say. will secondhand clothes save the department store. they are partnering with jcpenney to sell used clothes in their stores. we're talking to thread-up in the third hour. he says the secondhand business is booming after this. ♪
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david: it is 11 a.m. on the east coast, and i'm david asman, stuart is back tomorrow we have a rally on our hands not a bad way to start the week particularly after three dull dead weeks where we actually lost money . the market holding on to solid gains to start the week the s&p and nasdac wiped out a lot of their losses from last week. the dow is working in that direction now check apple it's the big win winner on the dow, president trump meeting with apple chief tim cook over the weekend. cook said china tariffs are stunting apple's growth compared to south korea, samsung and the president, this is the most important part, said that cook made a compelling case against tariffs at least for his company , come in charles payne, host of making money on the network. charles what do you make of this
>> apple is the epit o me of what bothers president trump about our relationship with china. they have made a lot of products out of china and dealt with relationships where you remember that space of time where people were committing suicide at the foxconn factory that makes like one person a week or a month something outrageous but i will say apple is on the offensive last week and they pointed out their u.s. job footprint now is 2.4 million people saying last year, that suppliers, american suppliers, 9,000 of them in every single state spent $60 billion with them in that support of 450,000 jobs. so this is a tough one. do we want to hurt this iconic american brand which is not only a great, it's creating jobs in this country but it's a great brand ambassador for this country as well. by the same token we want them to bring more of these jobs back to this country, so president trump has something in his hand with this one i think because you want apple to do more in this country by the same token,
very few companies are doing what they are doing in this country. david: do you worry at all about the possibility of a president picking and choosing who gets tariffs and who doesn't charles: i do all they there's no other company in this category. it's a lot different. it's a tough decision. david: charles hold on huawei getting a 90 day extension to buy from american suppliers. ash has the story here. ashley: apparently, commerce secretary wilbur ross says it's an opportunity for those that rely on these products to wean themselves off so they are getting a pushback of 90 days because as we know are on this entity black list. let's take a listen to the sound bite that will burr gave maria bartiromo earlier today. take a listen. >> there is another 190 days for the u.s. telecom companies, some of the rural companies are dependent on huawei so we're giving them a little more time
to wean themselves off, but they are in no specific licenses of being granted for anything. ashley: no specific licenses being granted for anything, but we talked about this earlier, david. this also keeps the bargaining chip for president trump. if he's trying to get some sort of deal as we know with china, this is still a pawn that could be used within that deal. >> yeah, i'm very much, actually right. the problem too is these companies make good gear, cheap gear, right and that becomes a business problem as well, i'll add that to the mix. david: i want to introduce deirdre bolton. charles business round table a group of top executives of the countries now saying that they've got to shift their focus away from just making their shareholders money, the question is are we going to see any real change here at all or is this just lip service? charles: i think we are going to see real change, david in fact think is not brand new.
i've been following this for a while in the best case study has been the container store. you know the container store. when they went public they actually declared war on the old school business model and in fact on page 81 we said we know our employees first managed the conventional business wisdom expressed by the late american economist milton friedman. so the stock is public and november 31 it opens at double to go to $36 a share and by december it's $42.52. do you want to nowhere it is now ashley: where? charles: about $4. so the point is, it's easier said than done to be a responsible company, or in this case, conscience capitalism but i think this is more than lip service, a lot of major firms, a lot of hedge funds are now setting up investments they call it impact investing and they are only investing in companies that do "the right thing" and you're going to see tens of billions of
dollars directed. i think there may be a day when people talk about pe ratios and socially responsibility ratios as well. david: what happens if shareholders revolt against this they say look, our returns are more important than anything. >> you know, i think we're saying with other things, you know, there's a piece in axios right now where corporations are saying we're going to do more things and it feels like at least the public that the buyers are saying they're okay with this so if enough buyers are okay the stock should do okay and the shareholders should do okay ultimately but i feel like that in this new world, shareholders are getting less of a voice. david: well talk about buyers. retailers, consumers are out there bying like crazy. retailers had a great week i think on the screen we're putting some of the big winners, we've got home depot, kohl's, target, consumers still strong. you've been saying this for such a long time and i'm just wondering how much longer this drive of the part of consumers will continue. charles: here is the most amazing thing.
it could go on for a very long time david. our savings rate is 8.1% on the cusp of a great recession it was 3.5%. our ability to -- david: almost three times as much. charles: in the meantime our disposable income, servicing our debt as a percentage of our disposable income is at the lowest point its ever been in other words we have a disciplin ed household, an american household, a flush american household, a confident american household, and the only thing that stops them is them. in other words i think we won't get over our skiis because people still remember the great recession and those things. david: we are hearing a lot of talk about recession for political reasons a lot of people don't want trump re-elected et cetera and some of them are suggesting that the consumer debt is a problem and that might be pushing some of these retail numbers. charles: the number i just mentioned the servicing bad debt is as a percentage of disposable household income is significantly lower than it was in 2007 significantly lower, in other words by the way this
morning the national association of business economists, they put their likelihood of a recession next year lower than they had it in february. david: is that part of what's happening with the market today? charles: i think so that came out very early this morning and didn't get fanfare because it was the exact opposite to be the top story of the day. it's not the exact opposite and now they increase their thinking of a recession in 2021 but we know a recession is around the corner somewhere just is it 12 months, 24 months, 36 months? i think last week to your point the media had a lot of fun suggesting it was one month away david: but i don't think they can deal with this market. those naysayers just can't deal with the market. charles: it's really amazing, by the way when we have retailers up we should also put restaurants up there as well because i think consumers are spending so much money. that last retail report on retail sales report actual official name is retail and restaurant sales by the way we spent more money going out to dinner than we did on groceries. that's an amazing confidence.
that's a sign of strength. david: charles payne is the man don't forget to catch mr. payne every day at 2:00 p.m. eastern on fox business. making money, on this very network and that's what you can do with my buddy charles. thank you. charles: appreciate it. david: now check alphabet the parent company of google last month the former editor in chief of psychology today testified that google manipulated at least 2.6 million votes in the 2016 election all for hillary clinton, through biased search results, and this person who said this is not a trump fan at all, and they have the capacity, google, he went on to say, to manipulate up to 15 million votes in 2020. nobody else in the media picked this up, but you can bet we're on it, coming up. and when it comes to the 2020 democrat front runners there is one thing they all have in common, besides promising free handouts. they're all multi millionaires but all they want to do was tax the rich, with their socialistic
policies, coming up we'll be talking to the guy who wrote the book on how to be a capitalist without any capital. stay with us, the third hour of "varney" just getting started. >> ♪ ♪ we trust usaa more than any other company out there. they give us excellent customer service, every time. our 18 year old was in an accident. usaa took care of her car rental, and getting her car towed. all i had to take care of was making sure that my daughter was ok. if i met another veteran, and they were with another insurance company, i would tell them, you need to join usaa because they have better rates, and better service. we're the gomez family... we're the rivera family... we're the kirby family, and we are usaa members for life. get your auto insurance quote today.
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david: check the big board the dow is up over 1% now just barely but it's over 2.65 to the plus side on the dow all the indices are up today so it's a great way to start the week. mr. stuart "varney" brought this point up on friday. these four democrats that you can see on stage they're all running for president and they are all multi-millionaires yet all they want to do is tax the rich with their far left policies. come in millennial capitalist author of how to be a capitalist
without any capital. i'm sure this one has got your g all. >> it gets me going, david these folks they put up these social policies and you go these guys never created a job in their life. do they understand what it means to run and build a business? david: the bottom line is they want their money and now that they've got their money, they don't want anybody else to get there's. >> well they are freaking outgoing oh, my gosh this thingworx. i'm getting wealthy. i better hide this stuff but the fact is that capitalism works if you do it the right way and you and i both know today we don't have a true capitalist society, but trump is taking care of that knocking this stuff down, he's making it better we need capital ism and these folks are dangerous to the economy when you talk about the social policies they are putting forward and how you pay for it. david: the bottom line is there s a pendulum here. you'll never have pure capital ism, you'll never have pure, even in the soviet union you had some black market capitalist activities, but we, when we switch from going towards government, towards socialism, in the previous
administration, back towards capitalism, the economy booms. i mean, it's pretty clear, do you think americans get it now? >> i think americans understand it, because they look at their stocks they look at their savings, things are going up, right? whereas a country we're getting richer and getting more leverage back and these things are important and i think trump and the current administration have done a great job of making sure the average american in the country actually seals that so i think it's working. david: he also did a good job of linking a lot of these socialistic policies and calling them out, by name, as socialistic policies, bernie sanders of course calls himself a socialistic. elizabeth warren though is i think a little bit smarter than bernie in terms of her political savvy. she calls herself a capitalist but basically has the same socialistic program. do you think americans are going to understand that and see the absolute contradiction? >> i think so. privately she called herself a socialistic but any time there's a camera on and i'm the capitalist liz warren who made
millions of dollars in the capitalist system but i think the thing that strikes me about all these folks is they assume folks of my generation, 29- year-olds they need these hand-outs like people don't actually want free college education. they want to work for things and feel like they've achieved something and get that but what they are doing is trying to buy votes with these policies. david: but there is the education to use the word very loosely, element going in here, that is young people and your virginia tech. you did not graduate though and a lot of people took your advice and didn't graduate from some very prestigious schools because they were being fed with the history of socialism which they weren't being told the truth about versus the history of capitalism. >> correct colleges are in the debt business which is why we have the crisis we have today. they're not in the equity business. if they invested in the equity of their students they would put value behind the degrees they are giving but they are delivering degrees that don't have value in todays marketplace , i said i got to dropout launch my own company
and now i come on your show and the book is on the best seller list so you are hit-makers. david: we want you to be rich, we think it's good to be rich. people come here by the millions because they want to be rich and these people condemn being rich, even though they are. >> it's a little scary. david, thank you. david: next one mastercard is working on its own cryptocurrency. deirdre they have already a assembled a team to help roll this out? >> they certainly are so while they are not going and developing something right now that we're all going to be able to use, they just want to be current so as a business strategy, i think this is quite smart and of course as we all remember they actually partnered with facebook, on facebook development of the libre products which will be available more or less in about a years time so i think this is just about this company, keeping current. we use the words like cryptocurrency and there's a little bit of a shock value but really this is just payment solutions, tech has changed every other industry. it's also going to change banking and it's also going to
change payments and mastercard is just wanting to be not a dinosaur. david: well the iconic name when it comes to cryptocurrency is bitcoin, let's take a look at where it is today. i think it's actually up a little bit. $262 is big on a move a daily move for a stock but bitcoin is at $10, 690, so you can't say this is a major move but it's a health it move to the plus side. not so with the price of gold. that of course is where a lot of people go when they fear what is happening in the future. there was a lot of problems all over the world. there's the possibility of recession in europe, there were the problems in hong kong and china trade, that's one reason the positive news at least the china front that gold is down today. the fear index is getting hit very hard today and denmark, not willing to sell greenland to president trump, but the country 's foreign minister is still trying to cash in on the extra attention. we'll tell you what he said in just a moment.
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president trump: we protect denmark like we protect large portions of the world, so the concept came up and i said certainly, i'd be strategically it's interesting, and would be interested, essentially it's a large real estate deal. a lot of things could be done. it's hurting denmark very badly because they're losing almost $700 million a year, so they carry at a great loss. david: a very large chunk of real estate by the way it's the biggest island in the world we're talking about greenland, getting a boost after president trump reportedly expressed interest in buying it, deirdre has all of the details. >> yeah, their minister of foreign affairs says that no, greenland is not for sale but if you'd like to visit, i think they're using the buzz a little bit, honestly it looks pretty and it says we're open for business. this is a comment from the foreign affairs minister not for sale, and then this went out on twitter he put an emoji for snow
, a whale and a snowy mountain so i'm sold and there's a link to the greenland website but in all seriousness this is not the first time that the u.s. has actually tried to perhaps either take it over, buy it, work something out. david: for $100 million afterworld war two correct? >> back in 1951 we have u.s. military rights there, all kidding aside under the ice, there are actually a lot of resources so this is not the most crazy idea that has ever been put out there but as you can tell actually the prime minister said greenland belongs to greenland. even shading denmark a little bit. david: now to tesla, trying to give its solar panel business a boost with a rental program, but there is a catch that ash has found right? ashley: there's always a catch, david ursino know that and tesla bought three years ago now the market share has been sinking so they are trying to revitalize it through this rental program. you can rent solar panels from
$65 for a small installment up to $195 for its very largest one , and you only need a fully refundable to $100 charge. david: not bad. ashley: but here is the catch. the contract could be canceled at any time that's not the catch here, but it could charge users $1,600 to remove the system once it has been installed. david: installation charge, that's what always gets it. ashley: gets you every time. david: ash thank you very much. more protests this weekend organizers say 1.7 million people braved the rainfall to hold a peaceful demonstration yesterday. it was an extraordinary event. twitter getting called out for allowing ads paid for by the chinese state media that criticize the hong kong protest meanwhile markets are doing very well, thank you on this monday morning beings starting the week in a big way. will this be the week that we break that cycle? we've got three weeks, three
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david: we've been talking a lot about the fed and so has the president now and he says our economy is very strong, despite the horrendous lack of vision by jay powell and the fed, but the democrats are trying to will the economy to be bad for purposes of the 2020 election. very selfish. our dollar is strong, that is sadly hurting other parts of the world and there's a second part the fed rate over a fairly short period of time should be reduced by at least 100 basis points, we just heard earlier 25 with perhaps some quantitative easing as well, if that happened, our economy would be even better, and the world economy would be greatly and quickly enhanced. good for everyone, end of tweet. we'll see if that happens. meanwhile, check the big board. they're pretty happy about some favorable talk with regard to china, also an easing of tensions in hong kong, and moving directly to hong kong,
protests continued over the weekend, susan li joining us once again from hong kong, susan , i am told that there were anywhere from 1 million to 1.7 million people who brave the bad weather in order to be there any word on what beijing is thinking about all of this? reporter: well, it was a united front to beijing, right? saying that at least 1 million of hong kong residents still support this pro-democracy movement so it is some of the largest turnouts yet in this 11 weeks of protest, against government, and huge turn out from all walks of life as you mentioned despite the torrential rain, but we saw young and old, we saw families out there, students and professionals. >> we are fighting for our freedom and our economy in face of the erosion of the chinese government on our one country model. reporter: so you just heard from
celebrity activist, she's become one of the public figures and public faces of this movement and she's a hong kong popster, and she tells us because of her support for those pro-democracy movements she's lost a lot of endorsements including from lanc ome, she's been banned from traveling to china since 2014 and that goes along with the controversy last week as well with the mulan star on social media saying she supports social media along with jackie chan but it shows beijing we are still in this together, we can send this united message and do it peacefully as well since there was no tear gas for the first time in close to two months david back to you. david: it's good news it was peaceful absolutely, susan li thank you very much and staying on hong kong i say that china needs a two-fold deal one with the u.s. and one with hong kong and china's xi-jinping is on a losing streak, come in national
committee on u.s. china relations steve do you agree? >> well on the trade front, i don't agree. it is not clear we've seen president trump and larry kudlow talking about progress, but we have no idea if it's actual progress or not. we've heard this before, so there -- david: what do you hear from your contacts in china? >> that they have basically dug in that since the huawei decision now of more than three months ago, the chinese have basically hardened their position. ultimately president trump will likely decide that the politics of making the trade deal with china are in his favor, so he will make it somewhere between now and the election that the political pressure on president trump from the farm states from other states are going to increase and we're going to see some kind of deal. hong kong is this weekend was good. you're absolutely right. what i hope we see from hong kong now is the peace leads to discussions between the protesters and the government. somebody's head in the hong kong
government needs to roll. we need to see somebody fired. it's not going to be terry lamb because beijing won't agree but somebody below that should probably step down, to kind of take responsibility for these massive protests. i think the protesters have realized that the airport action and the violence was not in their interest, that they were losing support of the masses in hong kong, so i think we've seen this move towards peace which is positive. now the question is is the government going to do, is the hong kong government going to do the right thing? because xi-jinping is not losing david: a specific question about huawei because today we had another announcement. >> 90 days, yes. david: 90 day extension on the time the u.s. companies can dis associate from huawei but also the question of exactly how u.s. chipmakers are going to be able to deal with huawei if they are able to sell to huawei, are you dealing with a lot of u.s. manufactures who deal with china, are they happy or very
concerned? do they think it's going in the right or wrong direction? >> well they certainly are very happy they've gotten another 90 day reprieve. what the trump adminitration needs to do is distinguish the national security issues from the trade issues. we should continue to do business with huawei where it doesn't effect our national security. david: i understand but the idea is, of course but the idea is that whatever huawei gets, whatever they are able to collect, information, data, you name it, can be passed on to the chinese government, and eventually the chinese military. i think if they do that, our intelligence people say we very easy for us to know that so if we go down this route and huawei should implant the back door or do something else, people are going to know. the question is the consequence of this ban is tens of thousands of american jobs, billions of dollars of profits, for american manufactures, that is not good for america. david: the consequence of the
chinese military having access to all of our top secrets on artificial intelligence is not good for america either. >> that has nothing to do with huawei. david: it has a lot to do with our relations with other companies in china that may have relations. >> you need to balance the consequence of the action for american employment, for american jobs, versus this somewhat farfetched idea that china is going to be using this information to kind of compete with the united states. david: i don't know if it's so farfetched but i agree, a lot of it is a very delicate calculus, does it get better? >> i even heard a fascinating argument this weekend saying that some of the huawei information is part of russia disinformation but the russians are trying to put a barrier between us and the chinese. david: it's really a monday morning. good to see you thank you. >> wonderful to be back. david: the markets are doing pretty well by the way backup to
close to 300 points if you could switch to the overall markets 297 to the plus side, on the dow jones industrial average that is a great start to this monday morning, and again, we've had three weeks in a row that haven't been doing so well, so this started on the plus side we'll take it. coming up next, twitter under fire for allowing ads paid for by the chinese state media that criticize the hong kong protest. we have details. actually ash has details. ashley: i have them this was interesting this was picked up by a social media bookmarking site called pin board. a couple of sponsored well- placed ads by chinese news agencies state media news agency basically one of them saying two months on the escalating violence in hong kong has taken a heavy order, a heavy toll on social order. all walks of life in hong kong calls for a break to be put on the blatant violence and for order to be restored. and also the hong kong citizens are calling for stopping the
violence ending the chaos and restoring order to the city. these ronald regan placed by chinese state media on twitter. david: surprise surprise. ashley: no big surprise but actually being flagged like wait a minute. david: well that's the thing is that the average person may not know that, but we can uncover these things much quicker than we used to be able to. because we know what governments are up to. ashley: that's true but obviously guide emotion. david: well our own susan li just touched on this hong kong protesters are calling for a disney boycott after a mulan star publicly supported the police crackdown. reporter: this film was supposed to be released in march 2020 i have seen nothing that implies it won't be but it's the story of this quiet daughter who becomes an amazing epic war your david: live action as opposed to the cartoon stuff. >> the actress posted a message on the equivalent of we chat if
you like, and i'll quote her here saying i support hong kong 's police you can beat me up now and she put i support the hong kong police. so obviously, that is not being well received by all parties. there is a movement to boycott the film, hong kong's protesters are maying this a very big international message and there's actually a gofundme campaign to connect people who want to boycott the film and almost pay for advertising, this is a pretty serious, disney will have a big problem on its hands. david: not today with the stock it's up about a percent pretty much in line with what the dow is doing deirdre thank you very much. into b have universal canceled the release of the controversial movie "the hunt et al about elites hunting deplorables and now it looks like the movie could hit theaters after all we had an idea this was coming details in a moment and the former editor in chief of psychology today testifying that google manipulated at least 2.6 million votes in the 2016
election, through biased search results and that they have the capacity to manipulate up to 15 million votes in 2020. we're dealing with big tech and the next election, you don't want to miss this, coming next. if i understood your testimony correctly, you said in subsequent elections, google and facebook and twitter and big tech's manipulation could manipulate as many as 15 million votes in a subsequent election? >> in 2020, if all these companies are supporting the same candidate, there are 15 million votes on the line that can be shifted without people's knowledge and without leading a paper trail for authorities to trace. >> ♪ ♪ 2,000 fence posts.
david: nbc's controversial movie "the opportunity" may be released after all deirdre has details. >> so september 27 is the release but it does face an uncertain future after these shootings that we've seen in the mass shootings 31 people dead in el paso, dayton, ohio and so now the producer just says there's definitely a chance that's his word, the film will eventually see the light of day, but the implication here is that it may be extended. this is not the only time this has happened. i don't know if there's a buffy the vampire television finale that actually had to be pulled because all kidding aside it had a lot of similarities between the mass shooting at columbine high school in colorado so this is not the first time that sort of fiction and reality have unfortunately overlapped and then there has to be some decisions so universal pictures is going to have to -- david: they must have known from the beginning. you don't go out and have words like deplorables being shot. they knew something was at any
rate we'll learn more about this. meanwhile i want to get back to that congressional testimony on big tech and their effect on our elections. the former editor and chief of sigh psychology today had the following to say about google's electoral footprint. take a look. >> you testified before this committee that google's man p you legislation of votes gave at least 2.6 million additional votes to hillary clinton in the year 2016; is that correct? >> that's correct. >> your testimony is that through google is through bias and search results manipulating voters in a way they're not aware of. >> on a massive scale. >> if i understood your testimony correctly, you said in subsequent elections, google and facebook and twitter and big tech's manipulation could manipulate as many as 15 million votes in a subsequent election? >> in 2020, if all these companies are supporting the
same candidate, there are 15 million votes on the line that can be shifted without people's knowledge, and without leaving a paper trail for authorities to trace. david: tech watcher is with us, and first of all, i just want to let our viewers know, this guy from psychology today is not a trump supporter. he was asked about that and he said on the opposite, so one must assume that he's an anti- trump guy but he's willing to say this. why didn't this get more publicity? 15 million votes could be influenced by the work of these anti-trump people and google. >> well you have to think back to what happened in 2016 this is a bit of an embarrassment of them, all of the supporters of hillary clinton, alphabet was the largest supporter, the campaign itself spent $100 million on advertising on all of these platforms that wasn't successful so i don't think the media wants to echo those failures once again.
i was on the trump 2016 campaign working on big data and social media, but a little bit not much but more with the team and i can tell you that that campaign ran effectively was able to push targeting out, was able to push ads out and get the messaging out on specific issues but the hillary campaign wasn't able to do but the challenge that we have going into 2020 i think is threefold. if you look at what twitter is doing right now twitter is actually taking ad dollars from china to push ads against the hong kong protesters okay? so you have to ask where is the view in democracy from these technology companies, but the bigger problem i think we have is layered. alphabet which controls the search apparatus for this and google which has access to half of the smartphones in america, as well as the fact that you've got embedded search on a variety of different devices out there, is presenting you with a skewed
perspective of information and what was testified in congress and i think this is a big point that all of the viewers need to be aware of is that the testimony was that 2.6 to 10.5 million voters could have been influenced by this type of targeting or the go vote notifications on facebook and this was in 16. david: and yes i remember the cover of forbes magazine shortly after the election they had a picture of jared kushner and his work with social media, which was working with people like you that targeted particular areas of the country, particular classifications and groups and so forth. very successfully, so the trump team used social media very effectively, but they were open about it after the election. i'm wondering if the social media companies that were used by the trump campaign are now alerted to the fact that the trump campaign may want to do it for their re-election bid and try to stop them somehow from
using their vehicles. >> well look at what's been happening on twitter. they basically said they are pulling back on twitter advertising dollars after they blocked mitch mcconnell's team account, for just saying that there's people outside of my house saying they want to kill me. there's a lot of questions of free speech on these platforms. there's a lot of questions as to the validity of the information that the american consumer is getting but the bigger issue at hand here is that if twitter, facebook, instagram, and even some of the chat applications which are what's app is owned by facebook, were to decide that they wanted to throw their support behind the candidates, they could influence up to 15 million votes. david: it's extraordinary thank you very much and by the way, stuart "varney" himself was the one who spotted this testimony which was missed by most of the media. it was an extraordinary admission on the part of somebody whose not a trump fan at all, 15 million votes is quite a lot in our democracy. thank you, oz. good to see you appreciate it. by the way, google, amazon and
facebook are sounding off on a new french tax on big tech companies, it's called a digital services tax. 3% on income, for companies, that make over $845 million globally and 28 million in france, alone, anything comes from that hearing, you'll hear it here first. well jc penney and macy's both expanding into the used clothing market, partnering with a company called thredup to offer high quality secondhand items at a discount. the thredup ceo coming here live in just a minute. >> ♪ i like it like that (vo) the ant mindlessly marches on. carrying up to 50 times its body weight. it never questions the tasks at hand. but this year, there's a more thrilling path to follow. (father) kids...
david: good day for the markets check tiffany jewelers, good day up almost 2% and they are expanding their product line to folks like me, us, ash. us, men. ashley: absolutely because they are losing sales to tourists especially from china so they are now releasing a whole collection for men 100 different designs jewelry, home goods, accessories they've always sold like cuff link, rings, money clips but now they are expanding things like silver encased compass, how about a silver
necklace that resembled military dog tags, cocktail mixer in crystal and sterling silver. david: good for them. ashley: good luck with that. david: the president just tweet ing out he is a busy tweeter today, wow report just out, google manipulated from 2.6 million to 16 million votes for hillary clinton in 2016 election. this was put out by a clinton supporter, not a trump supporter google should be sued by victory was even bigger than thought at judicial watch. guess what show donald trump was just watching? you assume because that was our last segment meanwhile jc penney and macy's trying to revitalize their business model by teaching up with thredup. they are the world's largest fashion resale platform or thrifting site, come in james re inhardt, founder and ceo so explain how it works. >> yeah, so we're a marketplace for secondhand clothing we make it easy for people to clean out
their closets, they send all the stuff to us, we go through it and then we list what we can online to be resold and then if you're a shopper you shop online like you were shopping at any online site. you can browse and sort for clothing that looks great and fits and is a great price, and we ship it your way. david: so how did jc penney and macy's get involved? >> we've been talking to a number of retailers over time and i give jc penney and macy's a lot of credit. they are thinking about the young customer, thinking about millennials and genhad z so we worked on a collaboration to figure out how do we bring secondhand product in-store and they can merchandise it alongside their new product and it's an exciting development for both of them. david: which would you be more excited about the online version or the retail store version because you know, i don't have to tell you the trouble jc penney and macy's has had. >> yeah, i think retailers are struggling a bit but let's not forget that 85% of apparel today
is still bought in-stores, so i think the retail landscape is evolving and i think the smart retailers and i think macy's and jc penney are smart retailers, are thinking about how they evolve to meet the needs of the customer in the future, and we want to be a part of that solution. david: there has always been, it's maybe it skips a generation , but the sale of distressed items, sometimes even new items that are made to look like they're distressed with the holes in the jeans et cetera, everything, i saw it in my generation when i was young, the people would put on military jackets and they would be sold at fashion stores. is this just a trend? do you think this is going to last? >> i think it's not a trend going away. i think increasingly, people want unique items. they love items that have a little wear in our classic piece s over the ages, and so i think that it's just how people are going to shop in the future. i think they mix and match from new stuff and used stuff and they are going to rent stuff and i think the future is going to
look very different than the closet of today but we always feel good because people aren't going to be streaming clothing to their bodies any time soon so people are still going to shop and consumers are still going to look for new things. david: extraordinary how the same thing comes over again and again. good to see you my friend thank you. best of luck to you. >> thank you. david: more "varney" right after this. . . erred
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david: what a great day to be subbing for stuart. surprised he didn't call in because of great economic news. the markets up a full percent today, in the case of nasdaq up a percent 1/2. i best it was all china, right? ashley: i think so. comments we're still talking, that is the main thing but i think so. david: retail numbers stick. consumers are still alive and
well and doing great, loving this economy. >> 1/3 of our gdp. david: for all those wishing recession, certainly the consumer is nowhere near it. connell mcshane here to take you through the next hour. connell: good start to the week. welcome to "cavuto: coast to coast." i'm connell mcshane filling in for neil. we'll have have a busy couple hours here on wall street. a signs of recession could be pushed off but how long? we'll have that question for a number of our guests. forget stimulus overseas. how about the white house injecting stimulus with more tax cuts here? the chinese military building up on the hong kong border despite peaceful protests over the weekend. president trump's warning on all of that. it is just ahead