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tv   Varney Company  FOX Business  August 21, 2019 9:00am-12:00pm EDT

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six and half hours and we are watching it live. the astronaut working for the station. really cool stuff. we had a great show. they can so much for this fantastic panel. >> thank you have a great day everybody. "varney and company" started operating. stuart: good morning maria and good morning everyone. everybody is trying to boost their economies. america included. new proposals from the president although he says were very far from recession he wants to reduce capital gain taxes by indexing to inflation and he wants a payroll tax cut two. all of that comes on top of his demand for a huge cut from the federal reserve. the market like that. we've seen again of 200-point for the dow first thing this morning. that would wipe out yesterday's loss. s&p up close to 1%.
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same with the nasdaq up about 60 points. close to 1%. here is the big stock news of the day. to stand out retailers. target and lows. both did very well in the profit report earlier this morning and consumers have money to spend and their spending it. it is the giant retailers who are responding best to amazon online challenge. look at the two stocks go. 70% up for target and 12% for lowe's. that is valid. this is not a race, i will ask you anyway. how much do you have in your 401k or you are away? i hope you're one of the hundreds of thousands of people who have at least a million. according to fidelity, 196,000 have 1 million bucks in the 401k and 179,000 have a million in their ira. those are record numbers.
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the u.s. drone has been shot down over yemen, it was an in queue nine drone otherwise known as you reset. it is been a long time since this kind of incident and that is true today. without going on in the gulf oil is up just 30 cents. stay there place, the latest on greenland. "varney & company" is about to begin ♪ ♪. stuart: here is the greenland news. denmark says gran greenland is t for sale. it does postpone with the prime minister. i thought this was a joke. >> we all did. but apparently denmark as part of a bigger european trade was both to be on september the
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second third and the prime minister called the whole idea absurd and we now understand trump's visit to denmark has been canceled altogether not only visiting with the prime minister but with the queen of denmark. apparently all of that has been canceled. he apparently buying greenland has had more to it than we realize. stuart: we bought louisiana didn't we, we bought alaska and then we buy the virgin islands. >> if we didn't it was a good move. [laughter] didn't we buy florida? i don't go back that far. [laughter] >> i thought that was a joke. this adds more weight that he was serious about this.
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and this is important. a strong number, target and lowes this morning looks like the biggest names in retailer winning. look at target go," how do home depot before that. i will bring in the author of this new book, new retail go in china and going global. michael is with us again this morning. you are with us because there is a core. you will take a victory lap because you suggested target was going up street last time you're with us. here is a story. lowes way up, target way up, home depot way up, walmart rate. these are the giants of retailing. what are they doing to write? >> they are answering the single most important demand that consumers are making on retailers and brands today. spoil me or else. or else i'll go somewhere else or i will find some video too well. in these companies are investing in the technology, integration of online and off-line and in-store experience in giving
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them something a part of their lifestyle not just the product to buy. they are spoiling their customers and doing it well. >> are they an economic indicator? consumers have money to spend and their spending it. it is a performance of these retail giants an example of a strong economy? >> sure, all of the consumer indicators and consumer spending have been up anywhere from a half of a percent, 7%, 1% over the last quarter. consumer spending is healthy but another winter situation for all retailers and we also talked about department stores are hurting, the call numbers are coming out, massie was in big trouble last week and the rest of the category, it is a matter if you can spoil them. the department stores. stuart: i've target stock pretty close to $100 a share, do you forecast the stock price in the
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future customers. >> i think it has a lot of room to run it. the number on it, but from here i think there's a good 50% to 25% run for this company. stuart: okay, you been right before. thank you for joining us michael. good stuff. now i want to get to the stimulus story. president trump once a capital gain tax cut, a payroll tax cut and he really wants the fed to take action. we have a new tweet on that just coming to us. doing great with china, another trade deal, the only problem we have is jay powell on the fed. he is like a golfer who cannot putt. the big u.s. growth if he does the right thing but don't count on him. so far he called it wrong and only let us down.
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we should be lower than other countries. yesterday hi seller in u.s. history. no inflation, wake up federal reserve. such growth potential. almost like never before. i hate to be the subject or the object of the president roth. i would not want to do it -- jon and allison are with us. let's suppose the president gets everything, he gets tax cuts for capital gain, a payroll tax cut, a huge cut in interest rates from the federal reserve. what happened to the market in the economy? >> that's a very good question. apart from the fact that i don't think capital gains cuts and payroll tax cuts won't happen but will happen immediate impact. if you write about interest-rate cuts, the impact is going to be like putting a pillow behind your back when you're in an airline seat. you feel a lot better in relaxed and everything looks good. i think the market will go up as
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a result but not a great deal. i think what is bothering the market is there is not underlying reason for confidence and growth. one of those reasons to feel confident is the individual were. which you said in your tweet, he is making positive noises about the trade war. i think that would have a very positive effect on the stock market and i think if we did something very real, something more substantial like an infrastructure plane which somehow this country never seemed to be able to get then it would really do something. stuart: got it. fidelity says there's a record number of 401k of millionaires. 196,000 to be exact. i think it's 179,000 millionaires from the ira. is that a positive economic indicator to you? >> i think it is from several angles.
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you have a more and more involved investor class in this country. with more and more of their net worth and steak. that means voters and investors are more of wanting the same thing. also to your point earlier when you talk about consumer spending, people will spend more and be more confident if there underlying the worth as measured by the investments in the market are better. another thing in the fidelity report that you did mention is the fact that employers in a place combined erica to be more to their 401ks and it's up to about 13 and half% combined. that's a very good number and indicative of the american consumer investor being responsible about retirement. all in all it's a positive thing. in all this fresh money constantly going into the market in stocks or bonds. i'm out of time but thanks for being with us on a big day. i say to big day because the dow is up 200 points. thank you john. now let's take a look at the
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price of oil, it is up 60 since this morning. but this follows a u.s. drone shot down over yemen. >> the in queue nine drone, a multimillion dollar drone shot down the rebels in yemen are claiming responsibly for this saying they used this to bring down the drum. the u.s. has acknowledged and looking into this. there are many countries that fight this, not just the u.s., including saudi arabia. maybe us-made but does a blog to us or saudi arabia. it's under investigation but they claim they shut it down. we went and you get a 60-cent gain. stuart: i think this is the height of the morning stock, we will be up about 230 points for the dow, .9% and the nasdaq that is where the money is going this morning the nasdaq up about 1%
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at the opening bell. social media frenzy of any recommendation from the fed about how high you should keep temperature in your home. wait until you hear all those numbers. you will not believe it. joe biden right after president trump's handling of the economy. he says the president squandering the strong economy inherited from obama. the white house has a president unveil a new immigration plan. it would in capital entered catch and release. "varney & company" just getting started.
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stuart: to immigration, the whitwhite house going to stop ch and release a migrant under this plan they would be held during immigration proceeding. at the moment there out out of 20 days, if you have kids with you that would stop under this new plan.
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former deputy assistant to george w bush. this program is guaranteed to be held up in court. what do you think that the president is getting what he wants eventually? >> sure, the president has to stop the incentive of the invasion coming here. all you have to do is last 20 days in the detention center and you're on the street never to return to court date. secure the border, stop the incentive and coyotes are getting as much as $10000 ahead and by the way, it is not very pleasant regardless of how well we can care for them because it's the detention center. families will thanks once, twice, three times before knowing they will be there for a couple of years. stuart: is a political one? what do they want from asylum cases. democrats will hold up and people will be mounting at the border in the detention centers. what do the people want in america? >> people want action. this is a bipartisan effort. it has to be.
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because we have the republican president and we control one house, the senate and congress and democrats have to act in one of the things they are delinquent and which are to president is on trade. how do you make a deal with china and china to the president you can make it but can't close it because usmc i cannot be ratified by congress paid because the immigration problem is going to be solved but it's goinonly going to be solved wite second term of donald trump when he has applicable capital to spend to get it done. stuart: another one for you, joe biden really swimming president trump on the economy. roll the tape please. >> donald trump inherited growing economy from the obama biden administration psyche inherited everything in his life. [applause] and now he is squandering it
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just like he squandered everything he inherited in his life. >> sleepy joe has been on the public so his entire life. searcy sent 29, we have been paying his salary as he moved to tears. and he's never created a job and now what he wants to do is what he cannot do 30 years ago is become president of the united states and ride the coattails of others. that's what joe biden has done his entire life. stuart: some people like that shot he took from president trump and squandering what he inherited from obama and his father does that personal shot at him now work with most voters? >> no it doesn't because as the president said promises made promises kept. he has delivered on his promises. donald trump said we would have
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3% growth, president obama says those days are over, he exceeded expectations. donald trump in his campaign, lampooned for all his promises he made for employment. regulate and deregulation. he has under promise and over deliver. if you're an american and you've entered the voting booth next year, the economy is doing well today i would say can you keep squandering the economy because you're doing a great job. stuart: sarcasm is a low form. [laughter] shame on you. thank you very much. next case, look at futures. still a fast lane level, plus 230 at the opening bell 11 minutes from now. the feds are talking which might be a heated debate over comfortable temperature while sleeping. the fed had the thermostat recommendations ascending social media into a frenzy. check this out, a live shot from
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the international space station. two astronauts are taking a space work and should be a lasting about six and half hours and a new back after this. 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.
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stuart: updating the story on
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denmark. the prime minister has responded to president trump who has canceled his trip. she says she is surprised, disappointed by the president decision. this is all about the suggested agreement of greenland to america. but she went on to say this did not change the good relations. the federal energy stock program recommends certain temperatures or your home that you should keep. social media really getting hot and bothered about this. lauren here what do they merit commanrecommend you keep your he at. >> 78 degrees. >> when you're sleeping? >> 82. >> what do they recommend -- >> 85 degrees. stuart: what do you gain the temperature so high?
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>> you gain perspiration and you save some money as well. why are they doing this, to save you money? >> they give recommendation on other ways to keep your home cool that does not involve turning the thermostat down. i know you like yours on 78 degrees. you actually keep the thermostat on 78, if you drop that to 74 you and spend a whole $25 extra a month. is that worth it? 25 for all that sweat. stuart: when you get old you feel -- on thursday. >> this is how you keep the company away. stuart: is widely known that no stranger has been in my house. now you know why. >> every degree over 78 per degree you can save between six and 8%. stuart: i like it. and obviously the winter is the exact opposite.
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freeze them out. >> what you do in the winter? stuart: don't even ask. we are going to go up, 200 points for the dow, 70 for the nasdaq, across-the-board you're going to be at 1%. stay there and we will take you to wall street after this. hey, who are you? oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens. and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate... and be better protected from mayhem...
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stuart: record air travel expected over the labor day weekend. you're the utterly meaningless numbers. how about 17 and a half million. that is how many will fly worldwide not just in the u.s. they don't have labor day in asia or africa. the biggest trouble they would august 30 which is the friday going into liberty we can and it will be close to 3 million on the airlines. imagine the crowds. stuart: to your point earlier in the commercial break, gases to .60 gas prices are now down 90 days in a row.
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you could drive on labor day weekend. save money. [laughter] stuart: here we go sports fans. it's almost 930 on wednesday morning. we get it open on the upside big time. we are up 180-point at the first few seconds of business. i see only two of the dow 30 that loses and all the rest are in the green and we are up close to 200 points right from the start. that is .73% and the s&p 500 on exactly the same tracks it is up .8% with a 23-point gain in the nasdaq up .9% and that's part of a 1% gain over 8000 again. stock of the day, target and those not doing too bad either paid the block quote for target,
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up 13 -- 15% that is $13. lowe's is up 12%, that is an 11-dollar gain. retail, those two in particular doing well. 1.58% in the price of gold is down a little bit with the market going up like this it is down just three bucks at $15.12 paid we will start with the strong numbers from target and from lowe's. it seems to me that in the retail sector it is really big guys who are winning. that would be walmart, home depot, lowe's and target. >> they own the market and number two the doing everything right, management is spectacular especially target management. lowe's is great, walmart is superior and anything else and struggling because of not doing it right. these guys are all doing it right but it speaks to this quarter for target and lowe's that the china terror for is not
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hurting them. it is not hurting consumers or the possibility so this gives the present little more room to maneuver. it's a good sign for what he's trying to do china and the economy. stuart: is it an economic indicator? >> it definitely is. the u.s. consumer is not retrenching in spite of all the negativity of a reef session in the dark clouds that are supposedly hovering over the economy. u.s. consumer continues to spend and that the strongest thing we're going for them. every time a big retailer comes in with good numbers i think that's why the market goes up, it's reinforcing the idea that we are not near a recession yet. stuart: nice way to put that. >> someone said the other day were always going into recession. but the truth is, right now the consumer is the big apple it's terrific. headline at the top of the show was stimulus.
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everybody is stimulating and so are we. the president wants lower capital gains tax, lower payroll tax, a huge cut from the federal reserve. just to speculate for second period what happens if we get all three, what happens to the market? >> it keeps the economy and projections moving higher and keep the market moving higher. however, let's pause to admit that the market is banking on 100 basis points over the next year end half. that is baked in and that's what market are we dealing and i don't frankly think they're going to move ahead with a payroll tax cut anytime soon. i actually interpreted the president, everyone thought his comments were deeply negative like the white house is panicking over the recession possibility. i disagree without. i think he was using as trumped as, and throwing out ideas that capital gains and indexes obvious is something republicans have wanted to do for decades because it is the right thing to do, the payroll tax cut is
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something that has been if things get softer, we can do this. obama did it, we can do it, it's a safe ground major. >> the talk of the stimulus in america, that has something to do with today's rally doesn't. >> yes anticipation for september meeting is at least a 50 basis point cut. will they go to 400? i highly doubt. i don't think they need a 50 basis point cut, the economy is doing spectacularly well. and the numbers this money prevent point. i don't know why the fed. stuart: competitive with all these countries -- >> that's exactly the point. it is now about the dollars. it's not about economic growth it's about dollar and the stronger dollar is make your currency more expensive overseas obviously that impacts the price of commodities and impacts emerging markets and has a lot of implications globally and that's with the president's
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thinking. >> totally missed a year ago we were raising rates in an environment where nobody else was in our way above the curve. i think it's a good argument for cutting rates. it has nothing to do with our economic strength right now. has to do with what's going on elsewhere. stuart: let's talk guns, dick's sporting goods, we will hear from them tomorrow, they may start selling guns altogether. do you think they will vow to political pressure? look at that stocks are going down. >> i hope not. i am a gun advocate as long as you have the right permit. stuart: the graphic on the screen. down exporting good, down since the parkland shooting that is when they start selling certain kinds of guns. there down since in. >> they will discuss or announce
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whether or not they will cut themselves out. they come out of a handful and actually replace it with a other goods and they should do better than the other stores. >> we don't know where the stores were. are they in areas where there not big gun sales? it's hard to figure out from the sample of what that might be when the stock was up this morning in advance of the announcement that will come tomorrow. we will find out what that is then. height of the day up 218-point as we speak. that is the best mark of the morning. we are only six minutes in and we have no clue how we will close but right now we are up 227. allie bob delaying $15 billion lifting on the stock exchange in hong kong because of the protest. full disclosure, i do own allie bob a stock they said profit fell last them wall street thought, just what you want.
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it will be less than what wall street expected. now we are up 5%, a children's place not so rosy, the stock is down 3%. as usual we have to check for coin for you, roughly $10000.9951 down, 840 bucks this money. and oil is barely moving, it is up 88 cents despite the fact that he u.s. drone shot down over yemen earlier today. it is now up 91 cents. walmart suing tesla after solar panels on some store roofs caught fire. just like another very public, tesla is down. >> it is a headache, i'm not making of tesla. certainly would not be a buyer. i never liked the idea of buying solar city.
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they cannot handle. i cannot like it, this is a reflection of the fact that that was probably a very bad deal for tesla. stuart: you killed a soul there. i made a lot of money lately in no position right now. i'm looking to get around the market rally of 250. >> the interesting thing, was that the solar panel that was defective or the maintenance of them. tesla was involved in both and that was going to weigh pretty heavily on what the stock valuation was going forward. stuart: they made a lot of money on something. is it millions or hundreds of thousands. it is enough to buy a lot of things. stuart: two items on facebook, former gop senator jon kyl says facebook has a long way to go to satisfy conservatives. gun dealers are speaking onto facebook marketplace and they list gun cases at inflated
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prices, they then try that message each other to negotiate for the gun which is inside the gun case. so does it matter? because facebook stock, never goes down. it does matter. >> improves that facebook is incapable of policing -- is very easy to get around. stuart: i don't know how they can policing. >> is almost impossible. >> we've been saying that for over the pasture, there's no way they can regulate everything that happens on the site. that is why government officials and politicians are so up in arms because they know they cannot do. stuart: looked at the chart. the thing has gone up. january of this year it was a low down 120 roughly and you get all this negative publicity about it. and the thing goes up. over $200 a share or close to it. it is up 40% this calendar year.
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it is 9:40 a.m., thank you very much. see you both later. now the dow industrial is up 216 points. .85%. 26179. can we see over stock price, the trucking division making a big expansion in europe. that is uber freight. we will have the head of uber freight joining us at the 11:00 o'clock hour. president trump eating a lot of criticism that jewish people who vote democrats either have a total lack of knowledge or great disloyalty, we will follow that story. and trump around the world, lowering rates from the simulated, what happens if we get to 0 rate. is that possible?
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doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. stuart: my proposal to the politically correct automobile companies would lower the average price of a car to consumers more than $3000, while at the same time making a substantially safer, engines run smoother and very little impact on environment and foolish executives. this is about the café standards for mileage which a president wants to lower presiden general, not bad. price is up 3% by the way, toyota is up but tesla is down.
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check the big board, i'm doing this because that is a new high for the money, 13 minutes and up 247 points. a data breach for movie past customersonpastcustomers. it was discovered by a security firm in dubai. it included an exposure of hundreds of thousands of customer data including partial and complete personal credit card numbers, that is not good, expiration dates, movie past card numbers, all left open on the internet. since being taken down is unclear how long the data was exposed and how many actual customers were affected. again another example of anyone that wants to hack something apparently is able to do so. stuart: any personal information that is not yet been hacked?
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>> i cannot imagine. >> central banks around the world are clearly cutting rates big time. negative rates, negative interest rates across europe. to just speculate for second period what happens in america if we say 0% interest. what happened to her. steve bush is with us and he's the apple being of new york and he's able to answer the questions. >> i know you don't expect rates to go down to 0 but what happens if they do. >> if they do, you will see stimulus of the u.s. economy and you will see every traction of bank credit. stuart: what does that mean? >> lend less because you're getting less. it is not where we are. if it did happen unity of bank net interest margin decline which is a difference between what we earn and pay for funding
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and consumer rates will go to 0 and thus is a limit on how much banks can cut funding as earning rates come down. bank margins especially the smaller community and regional banks because they do not have the other businesses that the large banks have that would protect them. >> i'm amazed to see was going on in europe. just astonished. today the 30 year bond went negative. any german government bond pays 0 interest and they don't give you back all that you linked to it. >> the world turned upside down. >> it is symptomatic of a very negative economic environment in which were seen in europe, the political problems are unlikely to come to the united states. the fed has some control over the longer-term market rates by setting a policy for insane they will cut at a certain point. but we will see what they do. obviously a lot of uncertainty.
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stuart: you deal with the consumer, mortgage rates keep on falling. were down to 3.6 on a 30 year fixed-rate at the moment. if you are giving advice to people doing refi, my advice would be weight because you might get a lower rate couple months down the road what do you say? >> i think that's fair. you can still get to his door) i would say make sense and you don't want to look at the difference of the last 40 basis points or 50 basis points. you might go ahead and grab it white say. stuart: they're not going to 0. i cannot see that happening. although $16 billion of debt out there. i don't know what to say about that. steve bush, apple bank savings. thank you so much for joining
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us. again check the market we are really close to the height of the day, up 250 points. the dow 30, 28 up into down. not much but down. the recreational vehicle sales, the default and the sales be a signal of recession? some people think so. next we have ahead of an rv manufacturer who says the industry is indeed facing serious headwinds. ♪ ♪ introducing the all-new chevy silverado. with fifty industry-firsts. it's the strongest, most advanced silverado ever.
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so you can really promise better sleep. not promise... prove. and now, all beds are on sale! save 50% on the sleep number 360 limited edition smart bed. plus 0% interest for 24 months and free home delivery. stuart: 22 minutes and and again, of 250 points on the dow industrial. two stocks which are standouts, target and lowes, look at the stock prices go straight up. both reporting blowout profits and good sales earlier today and stopped responding nicely. on the other hand, recreational vehicle sales are down. 20%, this calendar year has an economic red flag? i don't know. joining us is vide mrs. brown.
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>> that is an interesting question. this is start up after company that manufactures high-quality lightweight habitat. we are founded. stuart: hold on a second. >> our sales are not down. that's the differentiation that's very important. is not affecting everyone in the industry. we are very designed in innovation focused company and not seeing the same level and effect as other industry has seen. has yohave you had to raise pris because of tariffs? we have had to have price increases. we've seen increased and everything in the raw materials. because we have different materials that reuse, use aluminum and steel and a product in their high-quality, strong, lightweight and we are restricted to what we can use. the still impact and aluminum impact is extremely impactful on
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a supply chain. stuart: has it improved your profit margin? >> that has been translated into the price of the product. we have to pass that on to the consumer and i think that is going on throughout the industry in terms of what is happening with pricing and inventory levels. luckily in the demographic is prioritizing design over that. but it's still in the long term will have a negative effect. >> do appear to younger people? i associate retirees who drove around the country. maybe that's a stereotype but that's a word i stereotype. >> because we are designed oriented and focused we are different, his younger people that are coming to our company because her seeking experience.
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this is about the outdoor experience. in the mobile human habitat is a means for the extremes. so we are not seeing the same shift that the rv industry is seen because what we are selling people want to get out inexperience and adventure before they retire. they want to do this with her young family. it's a different shift. stuart: cell experience. thank you for joining us. a totally different story, a new report says china's military could overwhelm america in the event of a war in the pacific. who is the warning from. >> this comes from the study center of sydney in australia done in the indo pacific region who is a conclusion of the study that the u.s. military has spread a little thin. and it's a huge problem in the indo pacific area they said that china has employed a formidable
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and other systems undercut military. as you said, according to this report the u.s. military no longer the primary force in asia, we have seen the nuclear power and submarine fleet be depleted on that side of the world. shrinking the fleet and there has been a warning from the pentagon that we need to look at this issue fairly soon. stuart: got it. thank you. check the big board again. this is the height of the day, 251. moments from now very important economic news. how strong our existing home sales? could move the market. this is a big number for realtors. you'll get that number at the top of the hour. climate change in the 2020 campaign. bernie sanders said to reveal his plane tomorrow. i want to know what a reasonable and environmentalist things of all these climate change
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solutions. we will ask on a reasonable guy. former democrat senator harry reid says many care for all and open borders are just a plain bad idea. i think he is rescuing joe biden, my take on that next we all feel, we all love, we all cry. .rt . to understand their needs. working with ibm watson we can bring together data
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brian: literally seconds from now, i will give you housing coming across the transom. this is basis of housing market. ashley: coming in 5.42 million. up 2 1/2% from june. national yes, getting medium price. committing homes, 280,800. this is up 4.3% from july last
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year, year-over-year. stuart: so you got a solid gain in prices. ashley: yes. stuart: not so many sales. ashley: no, 5.42 million annualized. despite a 30-year fixed-rate mortgage at 3.6%. ashley: possibly lower as we go on. stuart: that looks to be a neutral report. i'm saying neutral. the market really hasn't moved. before the number, we were up 250. after the number, we're up 255. up very nicely. ashley: good improvement from june. stuart: it was. now this. harry reid to the rescue. the retired democrat sees the far left taking the party over a cliff. he doesn't like it. so he ridicules their policies. in a testy, half hour phone interview, he was asked if "medicare for all" would be a
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problem in 2020. of course it would be, he said. okay. how about decriminalizing border crossings, open borders? forget, he says. people want a fair immigration system. they don't want an open door invitation for everyone to come at once. isn't that what so many people have been saying for so long, but you can't actually say it without being accused of racism. or wanting to keep kids in cages or acting like a concentration camp guard. thank you, senator reid, you actually said it. it was a timely intervention. with all his political experience he figures the far left cannot win a presidential election. he jumps in and slams their health care and border pipe dreams. he is rescuing joe biden. i saying what joe cannot say. if activists catch joe getting soft on health care and immigration they will beat him in the primaries. harry reid has taken a side in
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badly split democratic party. these days he is seen as a moderate and moderates are on the out. they need harry reid to make a moderate stand. aoc and the "squad" dominate the party. there is generational thing, there is old guard versus young up starts. above all harry reid is a practical politician who counts votes. to him, not so much should be done. it is what can be done. in other words, you got the votes for that? if not, forget it. joe biden has his shares of trouble. just yesterday he was flustered when fox news's peter doocy challenged him on the size of crowds at the rallies. he said the assassinations of mlk and rfk happened in the '70s. that's wrong. it was in the '60s. a fox poll shows biden lead on democrat voters down 10 point from july. clearly all hands on deck to save joe.
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harry reid understands it is all hands on deck to save the democrat party. the second hour of "varney & company" is about to begin. ♪ stuart: now this going on right now. protests flaring up again. this is hong kong you're looking at. this is 10:00 at night. by the way a wednesday night. these protests have been big time on the weekends. now it appears one is getting going here in the middle of the week, wednesday night, 10:00 in hong kong. you can see, looks like they're building barricades right there. there are protesters right there. there is a development here, which i should bring to your attention. the british diplomat, he was consular official in hong kong. ashley: yes. stuart: he took a train trip to mainland china. ashley: shenzhen. stuart: his name is simon. he has not been heard of since he crossed the mainland border
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into china. ashley: the reports we get, chinese authorities are checking the phone, see if there is any proof on you being involved in the protests or any incation you're supporting protests. that is what some reports are claiming. stuart: he was on the phone as he was on the train going into mainland china. he said, he was talking to his girlfriend. what he said i simply don't know. it was after that he was picked up. the chinese foreign ministry has confirmed he has been detained. >> asked his girlfriend to pray for me on the phone. he said that on the phone. stuart: that i didn't know. that's a development. what you're looking at on the screens is not necessarily a reaction to what's going on with the british diplomat. that is a flair-up of the protests. ashley: yep. stuart: remember please, 1.7 million people in hong kong turned out totally peaceful protests over the past weekend. now they're back. i will not characterize this as
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peaceful or otherwise but protesters are back. this presents a huge challenge to the chinese leader xi xinping. how can he crack down with bloodshed on 1.7 million peaceful protesters? very hard thing to do. so there you have it. that is what you got going on in hong kong. not affecting our markets. not affecting china trade talks i certainly know of at this point. this is happening right now. ashley: keep an eye on it. stuart: i want to bring -- do we have todd horowitz with us? todd, come on in, please. you have an opinion what is going on around the world with money. do these late protests we're seeing right now in hong kong, does that make, what impact does this have? what do you say, todd. >> good morning, stuart. i don't think is has any real impact on our markets. i don't it has impact on markets overall in general. it could if something escalated, china comes in, does something
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they shouldn't do, don't handle it peacefully it, would create a major sell i don't have in global markets this would be basically an attack. if they let this play out or they handle it sensibly, i think this will be just another bump in the road without really affecting markets whatsoever. stuart: todd, hold on for a second, will you. would like to keep the protests going up on the screen. that is real live pictures, 10:00 at night in hong kong. protesters are right there. i see riot police in front of them. as you're watching that, look at the market, right-hand side of the screen. we're still up 250 points. todd pointed out there is no relation between what is going on in hong kong now, and our stock market here. there would be if there was a bloody crackdown. there would be a dramatic, negative impact on our market here. in the absence of that, not so. we're up 250 points. doug schoen is with us. i want to bring doug in for
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discussion of joe biden. that was my editorial at the top of the hour. doug, you heard what i had to say. i'm saying that harry reid stepped in essentially to rescue or try to rescue the moderate joe biden. what is your analysis? >> well i think he is certainly trying to help joe but i also think as you said, correctly, stuart, he is trying to help a democratic party that is moving so far to the left it's almost unrecognizable. i think "medicare for all" is a disaster, bankrupt the country. open borders will destablize part of the south and southwest, and is not really what people want. they want border security, a pathway to citizenship for dreamers and for hose who are here illegally to have some pathway to permanence. that is what the majority want. they don't, don't want open borders. so you're right. i dare say, senator reid is correct as well.
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stuart: do you worry about joe biden, bearing in mind were a couple of stumbles just yesterday? he mistakenly said that the assassinations took place in the '70s. they did not. they were in the '60s. he took issue with the size of crowds at his rallies. he was, i mean steve doocy, i'm sorry peter doocy from fox news pointed that out. do you worry about joe biden? is he rescuable? >> well, i'm not sure as we sit here today what the outcome will be. he still has a healthy lead in the polls, but stuart, to be candid and blunt, it is gaffe after gaffe with joe biden. i mean issue you didn't mention with the parkland kids who he didn't see after the tragedy there, when he was vice president. yesterday's gaffe about the assassinations in the '60s. stuart, this is not somebody who is ready for a race with donald trump. i have told you on this show,
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that i'm supporting him. i'm still with him us because philosophically we are close but he is not ready for this type of race. your editorial today is exactly on the point. stuart: doug, thank you for joining us. we appreciate it. >> sure. stuart: let's look what is going on in hong kong, that looks like a flat-out confrontation in the making at least. i've seen protesters playing laser beams, laser lights on to the riot police, you can see it there. right now exactly what they're doing. that is provocative. the riot police are standing their ground at the moment. who knows what will happen. but that is a confrontation. it is taking place right now, middle of the week, right there in hong kong. ashley: by the way, this british consulate official, china has acknowledged he has been detained for 15 days we're being told on administrative detention. they give no reason why he is being detained. he went on a business trip, and
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hasn't been seen for nearly two weeks. stuart: brits are not happy about this. ashley: not happy at all. stuart: when they handed over control to china 1997, it was on the understanding that hong kong would have own independent judiciary. bejing wants to break that they are breaking it as we speak with the detention of this diplomat. the whole thing is churning around. ashley: it is indeed. stuart: you have a confrontation in place right there i will leave that on your screens, so you see the real live action in hong kong but i got to tell you there is no impact on our market at this time. let me refer back to todd horowitz. i want him to come in again. i want to show you the big tech names. todd, you say big tech is in trouble. i don't know how you get there. i have apple at $213 a share. amazon at 1800. facebook, at 185. et cetera, et cetera. they're very close to all-time highs. what is the trouble for big techs that you're talking about? >> first of all, stuart, markets drive on price. before i say anything, investors
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that are long term, i don't want you to take action, right here. talking about right now, over the next four to six months, those names should be shorted. they're already 10 to 12, more percent down from their highs. they have not really participated in this recent runup in the markets. they continue to be pressured. again you look at amazon, down 12% from its all-time high. google down 10. nvidia down 50%. baidu down 50%. dramatic action -- stuart: do you expect them to go down further? >> i do. stuart: okay. hold on a second. i have to refer to the left-hand side of the screen, there is action, there is activity. we saw the line of riot police you can see there, with their shields. they're being, laser beams going at them. they have advanced down the street. it was a fast walk straight down the street. not a charge by any means. but they're getting closer and closer to the barricades which the demonstrators set up there
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across the street. ashley: i understand was, there has been protests today in particular, it has been one month today since that violent attack, if you remember by masked assailants on the protesters. there about all sorts of theories who they were. the protesters are holding a sit-down protest at a suburban train station. they're wearing black. some of them are wearing those, the i patch in reference to a protester, a woman, who had a damaged eye from police projectile. this i think can very well be related to this. stuart: i do not know the location of those shots that you're seeing at this moment. the camera changed very suddenly from the street scene of the protesters and the riot police and switched to what you're seeing now. maybe they have found some other demonstrators in a different part. ashley: maybe part of the train station i was telling you about be where the sit down for protesters are taking place. stuart: this, i'm not going to say it is turning ugly, but it's
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a confrontation. i don't think, i don't think it has had any impact on our market. ashley: no. stuart: we do have the dow still up 230 points t was up 250 a few minutes ago. maybe there is a relationship. if there is any impact on our market it comes because of china trade. if there is any violent crackdown on hong kong, or things turn truly ugly, that interferes with china trade, the talks ongoing. that is a negative for our market. ashley: china is very upset on the u.s. on whole another issue, on the sale of fighter jets to taiwan. if that goes through, china has threatened sanctions. so the tensions between the two nations right now, pretty high. stuart: not to mention that report which you brought us a few minutes ago, it is from australia, it said look, if there is a war in the pacific, china overwhelms the united states military as things stand now. ashley: exactly right. stuart: that raises talk of a new cold war. ashley: yes. stuart: not america versus the soviets.
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it is america versus china. ashley: it is behaving in that direction for some time some would argue. stuart: i see helmet, i see a charge by riot police. left-hand side of your screen, everybody, if you're listen on the radio, let me describe this. these are riot police charging towards what may absa bourbon train station there. they are running up the stairs. they ever riot police. they are going after protesters who were on the platform earlier. that looks like it is getting more serious as we speak. ashley: they are taking action, aren't they. stuart: there is action involved there. do we have marc thiessen with us? we do. marc, you're the perfect man for it particular occasion. >> thank you, sir. stuart: we'll keep this up on the left-hand side of the screen so our viewers can see what is going on, tell our awed against you had a very -- audience you had very interesting idea how to get out of this mess. your ideas. allow all people in hong kong
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refugee status in america so any can come here, can come here. that is a bright idea, marc thiessen? >> i appreciate it. the goal to save hong kong and deter xi xinping from trying to have tee enmen-style crackdown in the city that would essentially destroy the city. xi xinping can't afford that to begin with, the chinese economy is contracting. not as strong. trump is hitting them with tariffs. hong kong is the golden goose. if he cracks down, it will cause capital, tall len to flee the city, and the golden goose will be killed. trump needs, that is where hess vulnerability is. trump needs to make clear to xi xinping what the consequences of a military crackdown in hong kong would be. the first consequence should be, he should tell them, if you crack down, we'll repeal the hong kong policy act which is the law we give preferential trade status to hong kong as distinct entity from china. if china invades hong kong there
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is no rationale, occupies it, ends autonomy, one country, two systems that rational for trading it differently. they should be subject to same sanctions and tariffs trump is imposing elsewhere in china. second he should tell xi xinping if you crack down, we'll welcome the people of hong kong into the united states. this is the most economically vibrant city in the face of the world. the most hard-working entrepreneurial people on the face of the earth. these are the people donald trump says are the good once we want in our country. should tell xi xinping if you don't want capital and talent that exists in hong kong, we'll talk the capital, we'll take the talent. you will be stuck with an empty city. stuart: you're outlining a situation which xi xinping is in really a corner in terms of hong kong. >> yeah. stuart: the man is in a corner. if he takes action, regains control of hong kong he loses with america. if he takes no action he may lose in his own backyard.
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he has got a problem. >> he does have a problem and that is exactly right. people seem to think china has an upper hand over the united states. we have the upper hand. donald trump has the upper hand. in general with china because our economy is strong despite the recession fears, we're still booming. we have low unemployment. we have manufacturing is growing. china is the opposite. it is economy is slowing. some people even suggested it is contracting. xi xinping has another problem. a tianamen style crackdown in hong kong is not easy. not the same thing. tianamen square you had tens of thousands of people like sitting ducks in a square ready to be mode down. hong kong is not tianamen square. in order to intervene he will have to send, it is a hilly city with tiny street built into hills. terrain protects defenders. in tianamen square done in the middle of the night out of the sight of the international
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press. international press is in hong kong. millions of people in cell phone cameras will show atrocityies on your show and fox and everywhere else. hong kong people hate mainlanders. they don't like them as tourists but much less than military uniforms cracking down. there will be a hostile population. it is not something he can do easily. if you add on that the costs of u.s. imposing in advance, telling them what costs are going to be, we could stop this, and save hong kong. stuart: i want to point out to viewers moments ago, left-hand side of your screen, what looked like police officers spraying protesters with water. that is fairly innocuous thing i would guess. if it escalates from there, becomes pepper spray, rubber about bullets or tear gas, you have clear escalation. it looks like ugly confrontation. i see a lot of helmets being worn, all the rest of it. mark, while we've got you, i put
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it to you, hong kong what to do with it is the last true, bipartisan issue in america, whether it es agreement from both sides of the aisle, have i got that right? >> i think it is. i think we're all united in this battle for -- this is a battle between freedom and tyranny. quite frankly china is one of the last true, bipartisan issues at that we have. chuck schumer has, who rarely tweets anything in support of donald trump told donald trump stay firm with china, you're doing the right thing. everybody recognizes that china is a economic predator, stealing our intellectual property, abusing the international trading system, is not treating american businesses fairly or allowing them to compete and we need to get tough with them. i think trump has come around. at first i think he saw hong kong as a distraction from his trade fight with beijing. and what he needs to realize, i think he is starting to realize, it is actually central to it. you have to pressure beijing he have where. you have to pressure them on
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trade. you have to pressure them on hong kong. if you keep up the pressure, you have a better chance of succeeding, your goals having peaceful out come and good trade agreement. this helps him in his overall goal of bringing china to heal. stuart: you know, marc, i don't think the timing could have been better. you're on the show just as protests break out and riot police are on the screen. marc thiessen, everyone, great guy. >> happy to be on with you. stuart: thank you, sir. we appreciate it. here is how we're going to do it. we'll leave hong kong on the screen, so you can follow in real time. the rest of the world is following this in real time, precisely what is going on. we'll address other issues, right-hand side of the screen. we'll keep eye on market, bottom right-hand corner. the dow is still up 220 points. i want to bring up this issue. president trump taking really serious criticism for comments he made about jewish voters
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following congresswoman tlaib and omar's anti-israel statements. okay, listen to this. roll it. >> i can't even believe we're having this conversation. where is the democratic party gone? where have they gone where they're defending these two people over the state of israel. i think any jewish people that vote for democrat, i think it shows either a total lack of knowledge or great disloyalty. stuart: i want to bring in lee zeldin, congressman lee zeldin. he is jewish, a republican member of the house of representatives and he joins us right now. do you think president trump should have said that about the jewish community? did you like, do you appreciate that language that he used? >> as a result of the language you're going to end up getting, it will stir debate, controversy, criticism, that's understandable. i would rather us have a discussion on the substance of the policy. the president who, by the way he
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is being accused of anti-semitism. the president of the united states loves jewish people. he loves united states, israel, relationship. this is a president who opposes bds movement. he moved embassy to jerusalem. recognizes israeli sovereignty from the golan heights. withdrew from the failed iran nuclear deal. the list keeps on going. the president doesn't understand why jewish voters would be voting democrat when you have what really has been a tough year. these issues by the way should be bipartisan but you have had a tough year because you have new members who feel very differently in activist base that has been backing them up. stuart: i have to press the point because some people are saying that the president's statement was anti-semitic. how you are reading it? >> i don't believe that the president's statement was anti-semitic because of his love for jews and the bond between the united states and israel. you can't, you can love the jewish people as much as he
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does, appreciate and support, try to strengthen the relationship between the united states and israel as much as he has, and to do as much as he's done on the policy, and be called an anti-semite. meanwhile a lot of people accusing the president of anti-semitism have been absolutely silent, some have been silent with regards to talib and omar. others have been backing them up. have been propping them up. others have been opposing all of the president's policies to strengthen the bond between our countries and to oppose bds here at home, oppose anti-semitism here at home. there is lot of hypocrisy who want to be silent on everything that some of the worst, radical elements of the democratic party have been outspoken about. accuse the president who loves the jewish people, has a daughter and son-in-law, grandchildren are jewish, accuse him of anti-semitism which is so long. stuart: some talk among
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democrats they will do something about israeli diplomats in america, some form of retaliation because omar and rashida tlaib were, did not go to israel. and there is some talk that they may be get back into that 38 billion-dollar aid deal with israel over a 10-year period, get back into that and change it. in other words, take some action against israel because of what happened with ilhan omar, rashida tlaib. by the way, left-hand side of your screen, that is a fire extinguisher, that is not tear gas. ashley: no. stuart: do you think there will be any retaliation against israel by the democrats in the near future? >> this is exactly the point that the president was getting at yesterday. just continues. i would have worded the point very differently than the president did, but i understand what he is trying to get at with his frustration. it would be wrong on merits and politics for the democrats to be going after the israeli
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ambassador to the united states or the u.s. ambassador to israel as a result of what happened. if we wanted to just call it out exactly what it is, israel consistently said that rashida tlaib would be granted humanitarian visa to go visit her grandmother if she requested it, which she did. israel granted it. rashida tlaib responded by attacking israel and telling them to fly a kite, having a press conference where she was on the attack against israel. this is a growing element within the democratic party that i want the democratic party to be successful at rejecting and they're not going to be accomplishing that goal though if they empower that radical base by instead going after israel, going after ambassador friedman wrongly as a consequence of what was a bad faith pr stunt on the part of omar and talib. stuart: congressman lee zeldin, thank you very much for joining us today. appreciate it very much. >> thank you. stuart: back to hong kong. you've been following the action literally on the screen,
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left-hand side of the screen of the it's a confrontation. we saw some protesters firing off we thought it was tear goose but it was not. it was a fire extinguisher. we saw police charge what looked leak a suburban train station. ash? ashley: this is the yulong train station. i saw that that was the location where those mobs of masked men attacked protesters, that very place one month ago. we're seeing a protest at the train station to let people know, it has been a month, nothing has happened, cracking down who attacked, some 45 people were injured in that. one person left in critical condition. no one the protesters claim has been held accountable. stuart: demonstration, confrontation continues. ashley: yeah. stuart: dennis wilder, former national security council director for china, joins us on the phone. dennis you are in hong kong,
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that correct? >> no. i'm in washington. stuart: i do apologize. i'm sorry. mistaken, my fault. i'm surprised to see this. it is middle of the week. it is an ugly confrontation. we normally have this on the weekends. what say you? i wasn't expecting this? >> well i think what you have to think about, stuart beijing made a decision at their summer retreat, leadership, what the decision is use the hong kong police in much more serious matter than before. there is starting to be the little green men problem. in other words, i think they have taken a page out of putin's book, you're beginning to see public security personnel from across the border in hong kong. so rather than moving in with uniformed pla, or the people's armed police that we see at that stadium across the border, i think beijing is augmenting the
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hong kong police force with people from across the border and it is going to get rougher. stuart: now the chinese foreign ministry now admitted. yes, it has detained british consular official from hong kong, who went by train into mainland china, then disappeared. now they admit that they have detained him. doesn't this really raise the tension, raise the stakes between britain, which handed hong kong back to china 1997. that raises ante considereddably, doesn't it? >> it does. all being done against british companies and american companies, to pressure them in hong kong right now, cathay pacific pilots being told to hand over their phones when they get to beijing. people can look to see if they have been involved in activities. you have seen the management of cathay pacific turned over because of this whole thing. there is a multipronged approach
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beijing has that is very obvious. pressure the companies. pressure the trade unions. pressure the hong kong police to do more. this is, this is an all-out campaign now across the board in hong kong. use the quote, unquote, patriotic citizens of hong kong against the students. use twitter, use facebook. we are seeing an assault on hong kong now not with police, i'm sorry, not with troops but with all of these other, sort of ways of putting the heat on and you're going to see this increase. stuart: okay, will it work? you've described very well the increasing pressure, quiet pressure on everyone, trying to squash this movement quietly. will it work? >> i don't think so because 1.7 million people came out on
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sunday in support of this movement and that is a big part of six or seven million people of hong kong. stuart: dennis, hold on a second. i just want to alert our viewers, what is on your screen right now is a large force of riot police marching rapidly through what we believe is the a suburban train station. they're picking up the pace. they have press all over them. there are demonstrators following them. this squad looks to me, 30, 40, 50 riot police. they're in the suburban train station. i can hear shouting big time. what's really going on i cannot see on camera at this moment but -- ashley: they have been trying to remove protesters having a sit-down protest at this train station, the same location one month ago was the scene where protesters were attacked by masked men. 45 of those protesters were injured, one critically. this is basically acknowledging, this happened one month ago,
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nothing has been done about it. stuart: dennis, you would know about this. >> sure. stuart: bearing in mind your position. has there been capital flight from hong kong? in other words, local people with serious money getting that money out as the tension rises? >> oh i think people are making those contingency plans. they may not have moved it yet, they may have been working on it. i think foreign companies are beginning to seriously reconsider their positions in hong kong because of this kind of pressure, because some of what beijing is asking them to do is pretty untenable. for example, firing employees, simply for joining the demonstrations. so i think beijing is in dangering their position in hong kong right now, through this very heavy-handed set of tactics they're using. stuart: i don't see much difference between the cold war between the united states and the soviet union and what seems to be a developing new cold war between america and china.
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am i going too far? >> i think it is a different kind of struggle. it isn't involving massive numbers about nuclear weapons. it is no question, we are in a if you will, a cold war. what we're seeing in hong kong is the chinese value system, very, very different from our value system. and it is becoming very obvious. frankly, pretty ugly. and so i think that beijing is revealing some of its true colors, being xi xinping government right now. it is going to increase tension, aggravation, the fact that the president did come out on sunday with a strong statement about hong kong shows that this issue is moving the american system a bit. so yes, i think, we're headed to rougher ground in the u.s. relationship. stuart: dennis, you know what
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you're talking about. we appreciate you being with us on difficult and complex subject. denise wilder. >> thank you, stuart. bye-bye. stuart: we have this for you, senate majority leader mitch mcconnell has spoken out about hong kong, so what's he saying ashley? ashley: the headline here is we stand with hong kong says mr. mcconnell. sooner or later the rest of the world will have to do what protesters are doing. that is confront beijing. he said the world's leading democratic nations have been slow to respond so far. he says though, all of this, all of this comes down to actions of beijing. he says they can step back. he is talking about beijing. beijing can step back from the chaos to pursue freer and fairer trade. greater respect for sovereignty and human rights. stuart: i don't want to make too close an association with this when we first started showing you these pictures, by the way the pictures are available worldwide, when we first started this, the dow industrial average
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was up over 255 points. they are now up 217. i will not draw a quick conclusion that hong kong brought it down 30 points. ashley: no. stuart: that is a foolish association to make, but this is not a plus for our stock market. ashley: it doesn't help. stuart: no. confrontation in hong kong affects the china trade talks. ashley: of course. stuart: if there is one factor which the market is looking at very closely it is china trade talks investors would love some kind of a agreement with chain. the market would love it. it would go up significantly if there was any deal, whatever it was. ashley: we can get a trade deal but these protests could still be going on. stuart: but the protests may actually stop an intermediate deal. ashley: yes. stuart: because the president, our president, he has got leverage he does with xi xinping. ashley: yes he does. stuart: what is he going to do? what can the president offer so that he can settle hong kong and settle america?
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ashley: yes. you can see the fire extinguishers are being fired. it looks like tear gas but it is not. just confrontation within the train station. again protesters upset. it has been a month since they were attacked by a gang of masked assailants, some say linked to beijing. hasn't been proven. but they were attacked. 45 people injured. that is what is the cause of tonight's unrest. stuart: this is a modern political demonstration. ashley: yes. stuart: on one side, riot police. on other side the protesters. there is a third side. there is the media. ashley: absolutely. stuart: they're right in there. you can see them, see cameras every time the protesters move, there are cameras. ashley: everyone is a camera person because everyone has a phone. stuart: it means the whole world is watching this in real time. anywhere you are in the world you can watch this. ashley: they are very conscious of that. stuart: i wonder if they were
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conscious of our coverage when they sang america's national anthem and paraded down the streets with the american flag held high. ashley: which happened on number of occasions. stuart: it has. protests continue. steve yates, former cheney deputy national security advisor with us now. expert on china. knows what he is talking about in that direction. steve, welcome to the program. what can you add to our understanding of the protests which is going on right now? >> a lot has been said. the most important point, china is very aggressive talking to people among the demonstrators. sometimes to promote violence, sometimes to get videos. they have had fairly owesophisticated social media campaign that twitter had to recognize and pull off their platform but this is a broad-based societal movement. it comes at a threshold issue for them, about having a
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separate system, common law system, extradition law, heart of starting this snowball, would really change the fundamental nature of hong kong as they have known it. they're fighting for freedom. i think it is the last gasp of freedom over there. stuart: steve, on several occasions as we look at pictures, we asked the question, can beijing squash this in a quiet fashion? they're obviously pressuring everybody. can they, i will not say can they kill the protest movement but can they done taken it, so it is manageable, the damage to hong kong is not profound? that is stretch if you ask me but do you think they can do it? >> there are rational options available to them. the question we all have, we can't answer, whether the beijing leadership is prepared to be rational. if they wanted to, they could reset a new timeline towards universal suffering. they could put that on the table. was promised in the sino british declaration in the '80s. reaffirmed in the '90s.
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they could put that back on the table, set a new timeline. they could deal with some of the approach that the current hong kong government has had. whether a personnel change, change in approach, having them engage demands of protesters. it doesn't have to be all or nothing situation. but to date, they have really given no ground on anything that protesters have demanded. so that i think what is setting up this clash. stuart: i can't see a come nest government, accepting a vote, universal suffrage a free vote in hong kong. i just can't see that because that is anathema to communist power. one crack in communist power and the whole damn edifice falls to pieces. they can't allow a free vote, can they? >> you and i would agree on that but this is what was put into play in part by them accepting these kinds of terms when they accepted the return of sovereignty from great britain to the people's republic of
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china. and so it is they who have engaged in this subject matter. they have failed to manage expectations. i think you're right in terms of contradiction much systems. something is profoundly wrong with politics in china right now, with regard to their treatment of religion, muslim uyghurs in the west, taiwan, hong kong, you go down the list. with hong kong specifically, younger generation but civil servants they want to preserve the status whether common law or basic freedoms preserved in the law. that is what this is about. stuart: i don't know whether you lived in hong kong, steve. i have. i worked for radio hong kong many years ago, but i do remember it as very well-organized, very efficient, very dynamic society. i am truly shocked to see what's going on, left-hand side of the screen right now, live pictures.
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that is by pretty close to a riot. it really surprises me, steve. how about you? >> it is surprising and disappointing in many, many ways. the demonstrators, for the most part have followed what they're attributing to brew lee strategy, be water, be peaceful. if there is obstruction you move around it. if there is a problem, then you disperse. a little bit of a imagery but they tended to try to follow this. the clashes have been the exception rather than the norm. they say, there have been embeds there trying to provoke things. some of younger people, they're very frustrated aflac of responsiveness to their government, after a while it starts to bubble over. the key point they feel like this is their last shot. they have to stand for their freedom now. all of their faces have no doubt been scanned by chinese security people. the artificial intelligence will
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know who they are. if the demonstrations just ended today, these people risked everything standing up like this. that is i think, the stunning crossroads we're at now and it didn't have to be this way. beijing was slow cooking this frog. they could have taken gradualism, and worked fine but something changed in china. stuart: it did. steve yates, teamly appearance. thank you, sir. ashley, what you got? ashley: a little bit more. re-emphasize, this particular protest or demonstration is regarding to the attack one month ago that happened at this train station by those masked assailants. protesters accused police of colluding with the masked attackers. nothing has happened. police said we have arrested 28 people. some have organized crime links. no one has been charged yet. but it is not like we're not doing anything. i want to bring up with the fact that consulate staffer uk consulate staffer held in china.
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that is stoking fears we're told in beijing, that again beijing is extending the judicial reach what is into semiautonomous hong kong. there was a small protest outside of the british consulate in hong kong demanding the uk government step up the release of this guy, chanting, save simon now. the individual is simon chang. he is held on 15 days administrative detention on the mainland. there are a number of different things working here. stuart: ashley, thank you for the update. susan li is with us on the phone she is in hong kong. susan, our viewers are seeing what amounts to a riot, protesters, police, fire extinguishers spraying the spray all over the place. >> right. stuart: the tension level has gone up in hong kong this wednesday night s that right? susan: i would say also this
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particular protest and rally was always going to be tense anyways. as ashley mentioned, it has been one month. this is the masked men attack in this particular subway station which is in the new territory, rather suburban part of hong kong and what these protesters are very angry about, a, they have had a lot of arrests, 28 people were arrested. no one has been charged. don't forget, remember the masked men, we were on set looking at video, those masked men, a lot of hong kong individuals believe they were triads hired by the pro-beijing government to clear out, hurt protesters that was a turning point in the 12 weeks of protests. before then it was a lot more peaceful. a lot less vigilantism, less thuggishness -- but because of they were going to bring in the triads, fine, we will get tough. we'll get more, i guess more
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angry as well. we'll step up our level of violence. so this is a, this was always going to be a date, a particular protest that a lot of people were concerned about. in fact the hong kong police won't even let reporters into this station to cover what is going on because they knew themselves there was going to be some particular harsh is now real concern about the expected demonstrations this weekend. really take on added numbers. with this confrontation taking place on wednesday night, i guess, susan, there is some added concern about what happens friday night, saturday knight, and sunday knight, is that right? >> i have a list right now of confirmed protests and rallies set to take place till the end of this month. this weekend on the 24th, they're calling for a revisit to the hong kong airport as well. so that is definitely something
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that hong kong police and government will be watching, we get a repeat what happened on monday and tuesday of last week, when the airport basically stopped. you had 24 hour news channels covering chaos and confrontation, the scuffles that were taking place, which by the way is not representative as you mentioned, of hong kong, the hong kong we know it which is a very civilized society. it's a whole new era in the city. a whole new reality. i also covered riot police running through the busy tourist streets, something i have never seen before, shopkeepers have never seen before in their generation. they're very sad to see it. with weekend upcoming, friday nights, some people don't have to go to work, you can imagine there will be more people on the streets. stuart: you have lived there. i have lived there. a lot of our colleagues lived there. know hong kong very well. you've been there for at least the last two, 10 days i think it is now? is it accurate to say the people
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of hong kong are in a state of shock, is that accurate? >> that is a exactly right. something they have never seen in the generation. something they hope not to see in their generation. look also you have to understand with a million people on the streets on sunday, these protesters still have a lot of hong kong civilian support. this extradition bill was extremely unpopular. it was a straw that broke the camel's back. there were issues heading into the extradition bill introduction. a lot of hong kongers felt their freedoms were taken away. they can't elect their leadership. beijing gives you six. you pick one of the six. with the extradition bill, 50 years of one country, two systems being quickly eroded faster than 50 years. look at protesters. mostly younger generation. those that probably don't even remember tianamen square.
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however being young in 2019, they feel, they fear what their possibilities, their future looks like in 2047 when beijing takes over completely. one country, one system? what happens to them. how do they live in the new order? stuart: susan li, right in middle of it as usual. i think you got a whole night as work in front of you, susan. i'm sure we'll rejoin you throughout the day on the fox business network. susan lee in hong kong. what else do we have, ashley? ashley: in addition to the fire fire hoses, protesters are spraying oil all over the floor, knowing riot police will come after them, trying to slow them down, doing whatever they could to put up barriers. this is a suburban train station. stuart: yeah. ashley: the significance being this was the site of that attack one month ago today. stuart: for our viewers who do
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not know hong kong, hong kong itself is an actual island. central district as it is called, is the main area of hong kong island. that is where the financial firms are. that is where most of the skyscrapers are. that is where most of the demonstrations are taking place. the other side of hong kong is what we call kowloon peninsula. there have been a lot of demonstrations there. the one you're looking at now is further removed from hong kong island. what we used to call the new territories. it is suburban indeed. as ashley says, that was the site of the attack a month ago by thugs on the demonstrators. ashley: 45 protesters were injured. so they want to know that happened. who has been charged, say protesters now one month later. we'reorg -- we're organizing parade of experts none better
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than max baucuss former ambassador to china from the united states. he joins us on the phone. mr. ambassador, would you like to comment on what our viewers are seeing namely a near riot in hong kong again? >> essentially, stuart, this is getting worse because the protesters are getting more desperate and they're getting more desperate because, basically iron try -- triangle, iron gristp, vise closing in on them. of the residents of hong kong face very high rent. they pay more for rent than any other people in any part of the world. that is part of the problem. the protesters are anxious. they worry about the future.
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morning kong is handed over to china 2047. hong kong is not addressing it, china is making things worse. stuart: about a week ago we heard the hong kong authorities had a kind of buyout package. they were offering a month free rent for public housing tenants. offering increase in social security payments. they were offering some income tax cuts, some business fee cuts for industry in hong kong. that doesn't appear to have bought the demonstrators off. >> no. i just want to think, the big picture here is, can china suppress and contain this movement in hong kong without bringing in serious bloodshed? do you think they can do it, mr. ambassador? >> i think they can do it and i think they feel they must do it
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and contain it without bringing if troops [inaudible]. mainland china cannot let hong kong get out of hand. if hong kong demonstrators so far, anarchy or moving towards some kind of universal suffrage, in the eyes of mainland china would set a terrible precedent for taiwan, for other. mos inside of china. so mainland china will do whatever it can, short of sending in the pla, sending in the troops to get this under control. stuart: that is the protesters key demand at this moment, isn't it? they want the executive of hong kong carrie lam, to resign and want her replacement in a free election where any candidate can stand. that is anathema to the beijing authorities that is the class. universal suffrage, free elections. that is what hong kong wants.
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that is what china will not give them. >> that is correct. basically 20 years ago, nice phrase that nobody knew what it meant, nobody knew how to implement it. we're getting to a point where implementation is, a contest you just outlined. stuart: mr. ambassador, i have got to conclude with this. it doesn't look good, does it? >> it does not. it does not. frankly carrie lam has to show more sensitivity to the people. she has to get a green light from mainland china to do so. the property owners have to step up more than they have. stuart: max baucus, former american ambassador to china. thank you very much indeed for joining us on such short notice, mr. ambassador. we truly appreciate it. >> you bet, stuart. stuart: we'll continue to watch what is going on, on your screens. this is compelling stuff. ashley: yeah. stuart: this is real time
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television seen around the world in asia's financial center which is dominated by protests, riot police, ugly confrontation. i never thought i would see the day i would be saying that about hong kong which is very organized society. ashley: to the bigger question as you spoke with max baucus, where does this end? how does it end. stuart: you can't tell. ashley: you cannot tell. we know the protesters are not going away. stuart: it's a clash between an i am movemovable object which is the -- immoveable object is beijing which cannot tolerate the movement in hong kong. ashley: no. stuart: the hong kong people demand a free vote in their local politics. this clash is very hard to see, evolving in a peaceful fashion. ashley: exactly right. how did it get resolved. that is what everybody is wondering about. stuart: occurs beijing could quite easily say, five years
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from now, you can have a vote. ashley: maybe. stuart: a year from now you can. we'll figure it out all. we'll figure it all out. ashley: calm the nerves. stuart: calm the nerves. calm things down. make a small concession here and there. put it off in the distant future, hope it goes away. i can see that. they haven't done it so far. ashley: no sign of that. stuart: absolutely nothing. we've been on pictures best part of an hour as the protest warmed up 11:00 at night almost throughout this. we've seen no reaction on american financial market. hour ago dow industrials were up 250. now we're up 232. can you tell me the yield on the the 10-year treasury? ashley: i will get to it right now. stuart: it was 1.58 when we started. ashley: it is now 1.569. it has dropped a couple. stuart: it dropped. that is interesting. ashley: yes. stuart: i'm going to read into
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this, when yield on 10-year treasury goes from 1.58, to 1.56 that implies -- ashley: flight to safety. stuart: flight to safety. some hot money from somewhere, maybe hong kong. i don't know that for a fact. i'm speculating. but hot money is flowing into the safety of the united states dollar. ashley: correct. stuart: the night treasury securities. maybe still coming into the stock market as well. that's a measure of upheaval in world finance that you see when a financial center like hong kong is disturbed as it us now being disturbed. >> questioners frankly we're all surprised of this. i was not aware there was a protest planned today. ashley: no. stuart: it is one month anniversary of the attacks by the thugs. stuart: was not aware of that. we certainly didn't expect to see this confrontation. ashley: to susan li's point it was a very contentious point in the first place, the reason they were holding this sit-down protest at a suburban train
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station, likelihood of it leading to some sort of confrontation was probably pretty high. stuart: we'll receipt everything at top of the hour. which is three minutes away. we're watching market up 230 point. protests still ongoing. no sign of retreat by either side there. ashley: no. stuart: we've been doing this about an hour. almost 11:00 at night in hong kong. this is time when protesters come out. these people work for a living. they come out, they protest. ashley: why it is in the evening. stuart: dennis wilder is back with us. do you have anything to add, dennis. we're trying to comment what is going on here. confrontation continues. what can you add to it for us, please? >> i think, stuart, one of the things you have to admire about these student protesters, is they're taking a lesson from ancient chinese history. they talk about flowing like water which is an old concept
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from sun tzu art of war, from the great philosophers of china. the idea being, that, yes, we will surprise you, because we will create these protests when you're not expecting them. the use of social media is superb. the ability to get these students out quickly, using subway system in hong kong is really impressive. they are going to strike where the police are not expecting them. that's their game. their game is never to be predictable and to move fast. stuart: dennis, one more point which ambassador baucus related to us, okay, there is a clash between the authorities in hong kong and there's also a clash between the protesters and the billionaires. the spectacularly wealthy people of hong kong who were untouched
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by the rise and rent. that's another conflict going on there. i just don't see how you can bring this all together but it brings us to a conclusion. >> i don't either. i do worry about that because i think the only way and the way beijing will not assess is that they have to perform the system in hong kong. they have to give young people more of the free time freedom, autonomy that they are looking for. stuart: for someone like me it's a terrible thing. i got started broadcasting radio hong kong. i have a adoptive daughter from hong kong. i loved it when i lived there, it's a terrific place now. i take my hat off to those young people, the riot police and standing up demanding their
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freedom. i think we should all stand up and cheer with them. i have to say goodbye to you for now, it's almost 11:00 and i've got to reset the whole stage. it is now, three seconds to go, precisely 11 a quick 11:00 eastern time. you will show exactly what we have been seeing. they are flaring in hong kong as we speak. you're looking at live pictures. we have susan lee on our phone find a moment ago saying moral protests, they are expected this weekend. the one you're seeing now is at the suburban train station which one month ago today was the site of an ugly attack by folks on the protesters. nobody arrested for that. >> twenty-eight detained but no charges. >> so they got away with it.
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protesters don't like it and you are now seeing the result of that on your screens. let's get to the money side. absolutely no impact on the stock market at all. none that we can discern at this time. let's say a confrontation begins, the dow is up 2150 points. now it's up 225 points. hardly any impact. i do think the stocks are moving sharply higher. look at them go. have a target now, i'm squinting, i think it's up 18%. we have lows way up there as well. the market folded onto its gains. on the ten year treasury, a moment ago we went from 158 down to 156, that this is a rush of
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money to the safety of american securities as the price goes up, the price goes up and the yield goes down. we are at 158, not 156. so you've got some money coming in. susan lee, still on the phone returning to us, what can you add to your report form earlier works. >> we know there are fire extinguishers going off. protesters sprayed fish water and soap onto the aisles. to make it slippery for the police to reach them. we have not seen teargas yet. the protests were always there because of one month on july, where we saw masked men believed to be protesters, gangs hired on
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behalf of the beijing government to reveal the protesters do. twenty-eight people arrested, no charges means that the government is doing nothing to protect them. the escalation in a protest began then because the more violent confrontation including protesters and police. this is always going to be a question role might. a month ago during these protests were the men started beating up the protesters, that's when the story of a wom woman, this poor girl apparently lost one of her eyes in these complications. because of the beatings people were taking. this is something obviously that was going to raise attention, this is one of several protests and marches and rallies.
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they had assignment bidding earlier on but i'm not surprised of this right now. >> thank you very much. i want to get back to you soon but i want to bring in martin. this is the man who checks on markets and interest rates around the world. can you tell us if there is any effect on these ongoing protests and the big one is ongoing right now. any affect on our money at all? >> what you are seeing right now is it's slow. it's not like breaking news. we are seeing more and more money come in from asia and especially from europe as both places are getting more and more troubled. >> itself want to safety because this kind of thing in hong kong. could that actually push our interest rates much sharply
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lower? >> my opinion, and this is interesting, our interest rates are going lower one way or another. the reason is, asian money, especially european money is flowing into the u.s. in barrels. today we saw in germany they did a 30 year bind issue with zero-coupon powers negative yielding 11 basis points. the money coming in from europe will move. the fed needs to do something and if the fed does nothing, interest rates are still lower because of the foreign money and if the fed does something, lowers our rates, it's a positive thing in the states. that means everybody borrowing money will get a break and borrow money for a class which is a big positive for every borrower in any class in our country. >> indirectly, when our viewers are seeing in hong kong right now, indirectly puts pressure on
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our federal reserve, lower rates on class. you were expecting him to come right out with it and cut right loose. >> i'm not expecting him to do that but i'm certainly hoping he does. very difficult for them to manage expectations but i think that would be the right move. also you have the meeting on september 12th where they've said the governing council said we will have a shock in our meeting. i expect them to expand their buying and increase. the agent issues, it's interesting because china is engaged in what i call a "game of thrones" with the u.s. the trade is sparse but the chinese economy is also going down and now they have internal strikes. i think china is very troubled
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and it will be more money out of asia than a safe haven of the u.s. >> perfect timing, really appreciate you being on this show. on the phone now, a string of experts altogether, why not? he's written extensively about the goings on in china and hong kong. gordon, it seems like the authorities in hong kong do not want to shed blood. can they contain these protests without shedding blood? >> i don't think so. the reason is that hong kong society is now very much opposed to the hong kong chief executive. also, china. the authorities do nothing, it
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will continue. we know they started in april so it's still strong and there's no sign of it stopping. people in hong kong believe this is the last stand for their homes and autonomy. beijing is going to have to do something more if they want to and these protests. one thing they could do is make concessions but they won't do that for reasons, worrying about contagions. if they make concessions in hong kong, people in the mainland with their own grievances will make demands. that could lead to a string of unraveling of communist authority party. >> have you heard any incidences where protests have taken place in mainland china? because of what's happening in hong kong. have there been any spillovers you know of? >> i don't think so. there is a large protest in the mainland in the first week of
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july, there were about 10000 people on the streets or two days but this is related to a local grievance. i don't think people in the mainland will protest in sympathy for hong kong but they will do, if they feel they can get what they want because hong kong people have been getting what they want, i think the contingent will be fairly fast. there will be no protest and all of a sudden, i think china will just break out in protest. >> are you surprised that what we are seeing now? this is a suburban train station. are you surprised at this? previous protests almost always happen in the peninsula and hong kong island. >> the protests have been all throughout the territory but i was a bit surprised by what the police did input the protesters have been doing. that's because someday you had an estimated 1.7 billion people
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on the streets according to the organizers. it was large, peaceful, they were planning peaceful protests for this coming weekend, they were going to form human chains. i thought things were moving in a quiet direction but the police charging the protesters in the mtr, it's really just stunning. >> it really is. these pictures are being seen all over the world from what used to be a stable financial center, now almost chaotic. thank you, always appreciated. thank you for being with us today. i want to show you the big board again. i know you can see it but we are up 70 points. the ten year i noticed kicked up 1571. minutely it's kicked up.
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it's 157 now it occurs to me that we are talking here about chaos in hong kong, money spilling out. it could be that our stock market is a safe haven as well. throughout this confrontation that we've seen this morning, the dog started out 250, then up to 20, now we've come back. look at the yield may be some about hiding equity in stocks, just like we are going in the tenure treasures. that's all entirely possible. >> the numbers from 1.7 million people, i think our guesstimates are telling us that these are 55-year-old lawyers, civil servants, these are just not just students. last time we saw them take to the streets was 2014. many people said that it was
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young people. students, specific association but this is clearly a representation of the population. you mentioned hong kong is a business center for pretty much every major western company, they have an office in hong kong. this is everyone and we know that china had of this huge anniversary in october 1, the 70th anniversary of the people's republic of communist china, china wanted a celebration, they wanted to show this and it works and hong kong can be the gateway to the east and west. this is a spectacular pr failure. we're getting close to the october 1 deadline. it's supposed to be a huge celebration. >> that's an anniversary to celebrate china and they wanted it to be a nice --
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>> fanfare, look at this example. >> if you are in china, that's what you will see. you won't see any of this. let's bring in this strategist, one of our stock market guys on a regular basis. he joins us now on the spur of the moment because of this situation. to me, the story on our money is a flight to safety of the u.s. that's happening because of what's going on in hong kong. >> i think that is correct, here's why, nearly 50% of china's outbound and hong kong, now hong kong economy just contributes to about 3% of china's gdp but it's an important source of funding for mainland china. this is going to go both ways and china is in a pickle because these are accelerating and
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engaging directories. that's the tipping point that we are at now. >> they are trying to contain this situation as peaceably as they can. they appear to be using police rather than the army that tries to clampdown on the demonstrations without anybody getting seriously hurt. if that is their tactic, can they do it? can they contain the protests? i know you have lived there, you are our asia expert. >> expert is a big word. things are so fluid over there and they change so often, the argument is, they will refrain from violence because of global reputation or domestic blowback but i think we are on the verge based on what is happening. china doesn't want that hit. they will do everything they can
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to contain it in hong kong. >> you don't think it can be avoided? >> there's stories always and out. never say asia, never say no in asia. they are good at negotiation but beijing prefers violence potentially over political weakness. that's the real danger here. charging thought protesters is not a good part. >> china would lose disastrously. >> yes, they would put the calculus in the china is not necessarily whether they win or lose, it's whether they remain in power. >> does is give comp more leverage? >> it will definitely give him more leverage because clear situation to the chinese, business very much where they stand up to the opposition and ultimately immersed.
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the cost is irrelevant to them. >> let me change the subject. let's not deal with hong kong. let's deal with our stock market rally. we are up 264%. why are we up so much? >> the impact is not turned, traders are still very much in pursuit. the things that make america stock market what it is. hong kong will change the calculus in the real shooting starts. >> thank you very much. a timely appearance, we appreciate it. let's review the situation. we have shown you these scenes from hong kong for the past hour and 15 minutes. it's an ugly confrontation between right police, i use that word advisedly. they got shields and helmets and
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they have tried to clear what you're looking at, a suburban train outside of the main part of hong kong. they called it new territories. they tried to clear demonstrators who are angry that one month after the attack on them in the train station by thugs, no one has been charged with assault or anything else. >> the protesters are angry. they went into it and accused them of organizing crime to facilitate this attack to clear them off the streets when it was right at the train station one month ago. the protesters went into the train station this morning and police are now trying to get them out. we got a session high for the dock. now we are up over 270 points. that is the height of the day, i think there is some money coming
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out of hong kong. it is going into treasury securities. nonetheless, we've still got other factors working in the market favor, specifically a terrific run up for lowe's, both reported spectacular good results this money. they were considered an indicator of the state of the economy and consumer spending. that's helping the overall market. what other factors have we got here? >> the u.s. consumer is alive and well, it's two thirds of our gdp. it shows the strength of the tax cuts that have been carried through. what most investors are expecting here on friday from the chairman, he will speak from jackson, wyoming indicating as many people with great sprinkler.
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>> that's what they do, they count the money, come up with a report at the top of the hour. they lower the interest rate. granted, they also said the deficit was faster. they did say the interest rates seen as coming down. that helped the market. we are up 267 points. we have james on the phone. are you there? >> good to be with you. >> i want to explain to our viewers, we have a parade of genuine experts on china, all through the program. we bring in points of view that we might not get elsewhere. do you see, james, a peaceful
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conclusion at the end of the day to what's going on in hong kong? >> the hong kong police are very capable of keeping order and then we have the hong kong population in general, tends to be useful. i don't think that dynamic changes, i know people keep talking about chinese intervention and completely misses the price that china was intervening. i think reputation globally, the things the u.s. would be forced to do, the impact that they would likely have on the economy, why would they risk all about when they know law enforcement and when they are happy to see hong kong, they help a lot of that will move to the manager. i don't think we are where we were last week.
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>> understood that china has a lot to lose by intervening certainly if there was bloodshed. at the same time, by not intervening, by allowing the chaos to continue, money is flowing out of hong kong. hong kong is no longer at the financial hub which it had been in the past. they kind of loses either way. >> no, i think there happy to see china taking it down. i think the only thing that really changes is if the democracy demonstration led over to the mainland, then i think china would be forced to step up its game. there really ensuring this. if you talk to people in the mainland, the feedback we get, we think these people are over
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furnished, there's not much sympathy for the mainland people. >> you're saying that no crackdown by the chinese, a long festering situation is just an irritant that keeps on going and going? >> i think that assessment is insistent, unless we see some real dynamics. >> let's look at the big picture for a second. it seems to me like one country after another is suddenly realizing china is not the great benefactor we all thought. if the cold war developing between china and the u.s. >> i certainly think in the last three years for sure that the
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chinese have a massive headway. there happy economics there, for three years now, and i think the ongoing loan we are seeing in china right now, the world sees it as broken promises from beijing. they live and they hear that on top of everything. i think the risk globally is really starting. i don't think it is starting, i think the shift is dynamic and precise of. no company country will go forward. >> that is a profound statement. thank you for joining us. how to refer to our viewers to what is going on.
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you see an unvested stream of protesters climbing that escalator, which has been shut down. they are manually climbing up. they are going back into the train station which the police were trying to get them out of. >> it's hard to say, there are reports that it closed down the truces, keeping the protesters contain inside. they say they carried out a dispersal operation which means using the minimum force they waited until what they believe was the very end of this vigil that was being held one month ago. very chaotic as you can see. they are using minimum force. >> you may inc. when there's too much out of a protest, i think not. i think you could make a lot out of this. people want their political
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romance. middle-class hong kong people demonstrated by the millions, they want a free vote, the political rights which we will give it to them. they want those rights. >> from a business perspective, this whole ridiculous extradition suggestion is let's say you and i have competing businesses, i decide maybe your business is doing too well, i create this and you get checked and i run my business pretty happily, even from a practical business questions point of view, they saw that law as an attempt to interfere with the way they are running their businesses on the ground. i know even from friends that a lot of the messaging that is pro- china is an economic one if they are really trying to, there's a lot of propaganda, the students are basically wrecking
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hong kong's economic, you will hear hurt your own business. that is part of their strong messaging. >> 's they identify, trying to create a wedge between their protesters and the day-to-day life of the economy of hong kong. >> in a business community. >> pressuring the people of hong kong. phil is with us, a former cc p american business anchor. he joins us on the phone. if you've been watching, give us your perspective. >> or to add a couple of things but the others said, the police are probably likely very exhausted from all of this. same pattern over and over again. people protest during the day and a small group refuses to
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leave at night and there's always so many policemen out there. getting reports there are chinese elements inside now the police force that perhaps maybe. from a business perspective, the damage is already done. there are american companies already preparing to scale down or leave hong kong. >> that's a serious business because hong kong is the financial hub, the business hub of the free market capitalism in the whole of asia. that would be my opinion. do you think it's really beginning to erode to that degree? that's a serious thing to say. >> let's pretend you and i are a major co, a major company and we are going to meet with our risk
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assessment team and meet with our board and here's what they will say. your timing, you've only got a couple of decades left. you've got the rest of asia moving to headquarters, you need to make some decisions. will you scale up or down? these protests are not going to just disappear overnight. i think the risk assessment is a ceo, you have to make and consider most likely you will diversify your management assets. >> do you think the people of hong kong, hong kong is united against the billionaires and against the hong kong authorities if the chinese communist quests is unity class among just? >> i don't think so. i think there's a group that don't have a lot of money or potential data very hefty. then there's business with china
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and they don't want to rock the boat. they like it the way it was. they are the ones who benefit from the status quo and the ones who have not been on the status quo and that is the biggest is connect. >> thank you for joining us. i'm sure you will be much in demand for much of the day. you have experience. thank you very much. no impact on our stock markets. no negative impact on our stock market. you might think when you've got scenes like this, you might think there will be some here, that i could really affect the china trade talks. but that's not reflective in any kind of selloff in the market at all. you've got the opposite. the girl, we hit the high of the day. when we do have money flowing
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into the treasury, that's the flight to safety. we were up 1.58% yield hour ago, now it's 1.57 so it's not much but it's an enormous amount of money flowing into our treasure security. pushing up the price and lowering the yield. the only thing i've got to add is what is on your screen. huge retailers, very strong result. also from walmart earlier, the big giants of retailing are doing very well. that's considered an economic indicator. consumers have the money if they are spending it. the market is responding to that. >> we had the july data, i was up for a fifth month in a row. they reached a four month high. it shows the consumers are alive and well. >> i want to bring in charles payne, anchor of the show,
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"making money" with charles payne. let's forget any influence in hong kong. why is the stock market moving up? >> when you talk about two thirds of the economy, that's a big thing at play here. when all began, this is right where we were august 2 when the dow closed. the dow closed august 2 and became the support so we are right there. we've essentially just recouped what we've gotten in the last two weeks of volatility. we have been reminded the economy is extraordinarily strong if the backbone of the economy is out there, they are spending money. you should see some of these thoughts shared. 90% this calendar year, starbucks is like up a lot. shake shack is up 50%.
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we are spending money, it's not just retailers. we always focus on retailers but also people spending money on experiences and things, it is remarkable. >> we went on the air this morning at 9:00 and so first thing i said, trump wants to assimilate. he wants a cut in the payroll tax and once a great big interest rate. >> it's great for the market, the people who are most upset today of economic purist, i think we all used to be, just about ten minutes ago, they came out with their budget projections and it's a doozy. >> more than a trillion dollars worth of that. when the economy is strong, unemployment is low, we got a trillion dollars deficit.
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>> it's more the deficit than they saw over that i guess. the numbers are crawling up. middle-class americans will love that. temporary one stock investors love to have capital gains tax. it's smart. the purists will say that's the part no one is looking at. twenty some odd trillion dollars and growing but it's not going to be an issue. it's not going to be a political or economic issue. >> old school, a year ago, you print up a ton of money and the end is inflation. it seems like there's a new economics going on which says
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take the money you would like there's no inflation. in fact, pay for all of these social services just by printing money. >> that's the monetary theory. but the fed will have to consider that as well. the only reason we can do this now and get away with it is if interest rates are low, what if they truly go up? will pay a trillion dollars a year. >> don't you go anywhere. susan lee, still and concrete on the phone for us now. update your report please. >> it looks like the protesters have barricaded themselves within, things have died down a bit. some may have been injured on an up rent at the subway station but this is something planned for today, it's been a month since they call it the brutal attack is the same subway station. that was about a month ago.
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a triad gang members. they were trying to subdue the protesters and interned into these ongoing protests when the violence ticked up. the protesters are acting sluggish and as you see, right now in hong kong, partially th this. they couldn't easily get in but this has been multiple sit ins and rallies today at the station, escalating as they get closer to the midnight hours when you see these heavier, more violent areas. what i can see, they don't have and wouldn't allow reporters into the station itself. it looks like things are subdued.
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we still have a lot of people outside and inside the station but these things have definitely quieted down. i heard you mention october 1 is coming up, that is true. there are reports that beijing has given the chief executive who introduced the highly unpopular extradition law that she has two figure out a solution on the protests before that date. if not, there are reports that they might take things into their own hands. this is being reported by the media and financial times. hong kong still wants to deal with the situation as a local issue in hong kong and not have beijing take over. >> we are looking at the october 1 deadline. in commemoration of the take-up of china by the communist party in 1949. >> celebration.
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>> correct. my use of language is a little unfortunate. [laughter] susan, thank you very much. let me digress back to the stock market, we got a new high for the day. now we are up close to 300 points. twenty-seven up for the s&p, nasdaq up better than 1%. same with the dow industrial, charles payne still with us. recession has bent the talk. they are saying the tariffs will lower into 2020. or here's what's interesting. from 2020 -- 2023, they seeped the average of 1.8% growth, that's an increase from projections earlier in part because of the bipartisan budget act of 2019.
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it's interesting to see them suggest maybe the tax cuts and some of these other things done well have a positive impact on the economy. not just a so-called sugar high from 2020 -- 2023. that's far from a recession. >> sure is. that's why i thought it was interesting when this came out. the market started to rebound a bit. >> kind of drifting a bit when the report came out, he made about 80 points. this is another key piece of evidence that talk of recession may be somewhat premature. >> if you out altogether, 38 minutes ago, they come out with this report and say look, there's a research and recession, but it will not happen.
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they also suggested, didn't they say this would be a lower interest rate environment parks. >> they expect the feds and globally. now there's no debating that this will be a way of life. we turned the shift in the past for a lot of different reasons. >> we are setting up a nice situation. the federal reserve is widely expected to drop rates significantly in the near future. maybe friday or soon after the consumer is spending very strongly from home depot and walmart target.
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it's not bad. >> excellent. tj maxx", even though they don't have earnings from her face still guided stronger for the remainder of the year. the ones who came stronger on the numbers strong enough to report, all have much better guidance going forward. these retailers are very confident in cap target, 19%. >> what i have found remarkable, traffic. going into the stores, up 2.4%. the sales are the highest in decades.
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what's helping them is, you can go to the store or drive by and pick it up, people are not picking up a package inventors checking something else out. that's what they call the great thing about creative destruction, two years ago everyone so amazon for walmart because of the enemy, amazon. >> solvent because of amazon for they learned how to adapt and both of them are trading at all-time highs. >> people on the left were there think they are living paycheck to paycheck, economy is bad news for ordinary people. that is nonsense. >> we had an update where people are working to or more people present address, it's gone up a bit, there's no doubt. some people because they want to because of certain flexibility. there's some pockets but it's not america. it's not a portrait of a prospect country.
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when democrats try to say those are the rule rather than exception, that's when they're disingenuous. >> you read economic reports in your sleep. >> i think i do, i think i dropped about one the other day. [laughter] >> as you were speaking, the dow was up 300 points. stuart: now we are going to have afraid of people coming. lisa kennedy -- >> it's like madonna. [laughter] stuart: in the midst of the riots, i think of you as a libertarian. >> thank you. i think of you as a mentor and benefactor. [laughter] stuart: you don't know yet. talk about hong kong. i'm so impressed with those youngsters standing up for their
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concept of individual liberty and freedom. >> that's what hong kong has always been. it's been listed as the economically free city in the world and faith had politics postponed him. the british handed it over to tiny. n lehman chinese have to make to mainland china. they have a constitution that enshrines the kind of freedom that we have here is that we hold dear in the u.s.
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>> i want to tell a quick personal story. ours traveling as a young man in the 70s, i spent six months, eight months in india which was a bureaucratic socialist state at the time. this was in the 70s. it took a long time to get anything done. you got used to negotiating the price of everything before the product. it was a socialist nightmare. wonderful country but a nightmare politically. i flew to hong kong. we get off the plane and suddenly it's a totally different world. >> i can only imagine. >> you can feel it. i was a socialist in india. >> thank god for hong kong. >> that's still the hong kong fetzer which the chinese will probably do their best to suppress. >> unfortunately, they are. younger people are fighting for this. you will live to be 1000. >> anyone can predict.
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>> china wants a new plan for they can't extradite criminals from hong kong and put them in the chinese system where they can disappear people. >> what's a libertarian view of the american economy right now parks. >> keep them out of it. the scariest thing the idea that you will have these oppressive socialist who will increase spending. that goes hand in hand to stifle and smother any economic growth. stuart: which would you rather have? for this inequality of free
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market capitalism which rewards individual drivability -- >> in venezuela, that's where you see the most income inequality. look at san francisco. they've had liberal players and they are compounding the fruit of income inequality which people have to sidestep. that's income inequality. if you actually want freedom, you will eventually get vanished. if you look for finish, you will get either. stuart: we do not live in a libertarian society though. >> not yet. we want the republican party is i think losing and going more in line with president trumps
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points of view. his government guy, he likes government spending, he won't touch social security or medicare. >> but he said at least he was honest about running for office, he said i will not touch entitlement but i do like that he is anti- interventionist and deep regulation is. stuart: trump speaking to reporters on his way to louisville, kentucky. he says a fed chairman should use his head lower interest rates. he's not demanding j powell lower interest rates. he totally missed the ball. raised interest rates too fast, too furious. another quote. now we have to go the other direction. if he doesn't, we will be a rocketship. another quote. raise them too fast, too high. take a tightening, shouldn't have done it. the president on a tirade here.
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they probably got the message by now but they know that they make a big speech tomorrow afternoon. the president demands that you lower rates big time. at the very least. >> they are against the feds for doing that. at the very least, we need to audit the fed. realistically, we need to # and the fed. >> and? >> and it. >> gold standard? >> we should be on the gold standard, absolutely. it's infectious.
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you bring the rising tide. >> we are not going to go anytime soon. there's something great, you seek the report from fidelity about the number of people with the 4o1k and have $1 million? 196,000 americans have $1 billion in their 4o1k account. isn't that the way they held out? >> if you listen to people like elizabeth warren, it's like no, there are people who are using these investments to hold off their employees who are saving because they know the government will let them down. they will be totally insulted by
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the time they are of retirement age. >> i left it, kind of on the version of the 45. he says the statement agreement was absurd, trump says he was not appropriate and not nice. i did say on this program that when the president suggested buying agreement, he was joking. it was sort of a tongue and cheek. i didn't mean to suggest the president was wrong in that suggestion. i thought it was a joke. >> it sounds insane but when you take apart, you realize the idea of purchasing agreement is a giant foam finger to china to either stick in the eye or by
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the bird because they prop all the metals so we think. the present goes, where else are they? oh, greenland? can we buy it? i love real estate. >> is that how it went? >> absolutely. think of the minerals they've got. we need to completely cut china out of our manufacturing picture. stuart: okay, we've got it. you talk about socialists the unfairness of socialism. or to bring in justin haskins, executive editor. i want to get your attention, i'm sure you see this. how you read the man who is retired, he was there at least ten years. he's saying, medicare for all, that will not fly. don't do it, don't even think about it. this open borders, that's a rotten idea as well. don't do it. he is supporting joe biden
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against the socialists, warren and sanders who are proposing medicare for all and open borders. right? >> yes. what's amazing about the democratic party right now is that they have a legitimate chance to win in 2020 if they use any common sense at all. even a little shred of common sense instead of running on even a liberal common sense platform, they are full blown toward socialism even though the midwestern states, which they need to win, socialism does not play well there. even though they have internal polling, they are still going away with socialism and even people like harry reid, he knows this is a bad idea. it's amazing anybody the democratic party is going this direction. >> as you know, they made a couple of guests yesterday.
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he said he was in the seven when it was 60s. he took issue with one of our reporters with the side of crowds at the rallies and got that wrong. i don't think joe biden is a democrat nominee for i don't think he last that long. >> i think they will have buyers remorse but your guess is right that they need to win these critical states. that's what the whole race can come down to. the states where we were incredibly close had joe biden has a much better job of reaching those borders because he wants to tinker with daca, he people on the employer based health care and provide a public option instead of $3 trillion a year to scrap all insurance and
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give people rationed garbage which is what bernie sanders and elizabeth warren and kamala harris want to do. stuart: if kennedy is right and i'm right and joe biden is not the nominee, all they've got is socialists. warren, sanders, kamala harris is way out there on the left. mayor pete, i suppose but he's big on the big green new deal. without biden, they are a socialist party. >> there's no question. they are openly promoting socialism for more than a year. the green new deal will destroy them in the midwest. this is a party that is openly calling for, destroying millions of jobs. destroying millions of jobs in the industry. that is there platform. if they think they will win on that in the midwest, there's no way that will happen.
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they are committing political suicide right now. they're clapping while doing it. they are giving standing ovations. it's incredible. i can't believe they are doing this. stuart: this is a picture of exasperation. a fast newsday, development of the time. i have more on agreement. >> the president says buying agreement is just an idea. he says respect has to be shown to the u.s. he didn't like the prime minister saying that. he said it was inappropriate and not nice. stuart: when you first heard the president was thinking about buying agreement, what did you think? >> i thought it was a headline. i don't have a problem saying it's absurd. we don't buy countries anymore. but you can make deals and have access to the minerals and make sure you are the only one.
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china can't come in and swoop in and take off the great minds. >> when you first heard of the president thinking about buying agreement -- >> we mentioned onion yesterday as well. i thought the same. it's not the most crazy idea when you look at the resources. we do have a military, legitimate military agreement with them. that is exclusive to us. we have in some ways secured that in a sense. stuart: 100 million for it back in 1949. in the 1880s, the state department tried to buy iceland. >> buy one, get one. they want to do by the dominican
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republican. stuart: not unheard of. before we leave the show, you're obviously if i socialist >> i am pro free market policies. who is supporting free market policies, if donald trump does that, that is who i will support. donald trump decides to support policies not free market principles he. i oppose that. i don't care whether it is republicans or democrats. i care about making the country better. stuart: we'll take that. any comment, kennedy? >> he is spot on. allow people to use tools and creativity to make their lives better. go capitalism. stuart: go capitalism. gold standard. >> you heard it here from stuart's mouth. stuart: you're killing me. justin, kennedy, both of you, thank you very much indeed for being on the spot today because
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we've had to deal with a lot of moving part here. you helped us enormously. justin, kendi, thank you very much indeed. i want to recap what we've gone through so far today. i started 9:00 with the headline. everybody is stimulating, america included. the president wants a cut in capital-gains taxes. he wants a cut in the payroll taxes. he wants a whopping great big cut in interest rates from the federal reserve. that is stimulus. that is what we had first thing this morning 9:00. the market went up 9:30 when it opened. we were up 220, 230 points. just after 10:00 i think it was we started to get pictures from hong kong. there is a confrontation in progress there. it is at a suburban train station where they had thuggish action a month ago. you can see it on your screens now. that's today. the protesters want charges filed against the people who
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beat them up a month ago at that train station. the riot police arrived. they line up. they pot their shields. they pushed some demonstrators out. the demonstrators barricade themselves in, that is where they are now. they are shut in to the suburban train station. we believe. it is hard to get official word out. no impact on our stock market. you would have thought seeds of chaos in asia's financial hub would created a sense of selling, that the market would go down. it did not. the market went up. in fact by about one hour after the confrontation began, the dow was up 300 points. and money was flowing out of hong kong, we believe it was out of hong kong, it was going straight to our treasury securities, raising the price, lowering the yield. that's what we've seen. money out and into our safe haven treasury securities. maybe some money going into our
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stock market. that too is still at almost at the high of the day. that's what's happened. deirdre, ashley, kendi, all of our guests thank you very much for help in covering what is an extraordinary situation. connell in for neil. connell: really is extraordinary, stuart. waiting for the president in this hour as well. welcome everybody, to "cavuto: coast to coast," i'm connell mcshane filling in for neil. we'll have a live report from hong kong as things develop there but we also have the white house pushing tax cuts, rate cuts. with cutting a deal with china fix everything? how about tax cuts being paid for? the cbo, the congressional budget office just warning that deficits will top a trillion dollars next year. but a new report from the cbo also says recession does not look likely. so the market likes that part


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