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tv   Varney Company  FOX Business  August 28, 2019 9:00am-12:00pm EDT

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we have an asset bubble right now in bonds. we are focusing on yield. the other side of yield is price, and price of bonds is very high. i'm not calling a recession but we do have a bubble-like feeling with bonds right now. dagen: thank you all. dave, jessica, mitch. right now, mr. varney, take it away. stuart: indeed i shall. good morning, dagen. good morning, everyone. the market with a very loud voice is telling the federal reserve lower interest rates and do it now. the reason's obvious. rates everywhere else are lower than rates here, a lot lower, and that is disturbing the dollar, the stock market and the economy. look what's happened to interest rates. they are tumbling. as money keeps pouring into america. the two-year yields 1.50%. look at the ten-year, 1.456% and the 30-year treasury is down to 1.91%. okay. interest rates are tumbling. message to the fed, cut rates now. before we get to stocks, i've got to tell you about an
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extraordinary development. the former new york fed president says the federal reserve should not quote, bail out an administration that keeps making bad choices on trade policy. he's gone political. don't lower rates to help trump's re-election? an anti-trump guy urging the fed to work against president trump? you got to sthak yohake your he that one. unfortunately, that's what most financial people are saying today. he's wrong. now the market. even with a sharp yield curve inversion, stocks show a small loss. down 40 points. remember two weeks ago, when the inversion appeared, the dow dropped 8800 points in one day. now the market shrugs. the dow is going to be off 40, s&p maybe four, nasdaq down 17. marginal fractional losses. we've got a lot more for you. boris asks the queen to suspend parliament. and a new poll, how is joe biden doing now? "varney & company" is about to
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begin. stuart: all right. here are the latest results from the quinnipiac latest poll. the democrat field, biden 32%. warren, 19%, sanders 15%, harris 7%. this is nothing like the monmouth poll of a few days ago, where biden had clearly lost his lead. now here's where it gets interesting. in a head-to-head matchup with president trump, all four democrats beat him, 16-point lead for biden, 14 for sanders, 12 for warren and 11-point lead for kamala harris. brad blakeman, former deputy assistant to george w. bush, is with us now. all of these candidates beating president trump. what's he doing wrong? >> he isn't doing anything wrong. what you have here is you have a wide field of democratic candidates who are beating him up every day, projecting this
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false narrative which the media is championing and that is we are due for recession which is untrue, if you take a look at the macro indicators of the economy. so president trump has not had his day in court yet. they are fighting it out, the democrats, in order to get the nomination. i say national polls have very little to do with the ultimate decision in a federal election. stuart: you've got to be disappointed that the monmouth poll of a couple of days ago showed biden has lost his lead, and this new one from quinnipiac says he's got it back. >> that shows you how fickle the polls are. national polls in a state by state event which are primaries and caucuses mean relatively nothing. it's good for fundraising because you can show your fundraisers if polls are favorable to you. otherwise, national polls are very unreliable as we have seen in the fickleness of joe biden's down one day and ahead the next. stuart: we have given everyone the news. you had your opinion there. stay there, because i have more for you later. look at that recession
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signal. that's the inverted yield curve. the two-year yield is indeed higher than the ten-year yield. should not be that way, but that's the way it is right now. a widespread on this inversion. market watcher george see is with us. the market doesn't seem to care much about this inverted yield curve now. two weeks ago we dropped 800 points. what's going on? >> we've still got a lot of really strong economic data, and i think the market's already shrugged and said yes, we are going to soften, we are going to weaken but it doesn't really know how much. it doesn't really know how to price in how much softness we are going to get and it's not going to stay inverted very long. the fed will cut very soon. might even cut 50 basis points. it's a temporary phenomenon. stuart: i think the market is screaming at the federal reserve hey, lower rates now, get on with it. you think they'll do it? 50 basis points real soon? you think it's going to happen? >> i think they will do 25. i think there's some hawks on the decision-making body at the fed that will resist 50 but i
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think they should do 50 and i think the market's telling them that's what they should do. i would be surprised if they go that far. they still think the economy is pretty strong. stuart: i think the market would really take off if we got any kind of trade deal with china. but you don't think we are going to get that kind of deal, do you? >> i don't. i think the chinese are rooted in and they are going to try to outlast the president and hope he loses and get a much softer deal from the democrats when he does. i think that's their hope. they may wake up to a nightmare. he may win re-election and hammer down on them even further. i salute what he's doing. i think it's courageous what he's doing. stuart: we aren't going to get much of a market rally, are we, if we don't get some kind of deal with china before the election? >> i'm not sure we are going to get a huge selloff either, because there just aren't any alternatives for investors. they will buy a ten-year for 1.45 for ten years? i don't see investors doing that. i think we are kind of stuck right now. if we do get a trade deal, you are hinting at what's exactly right.
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the market will explode to the upside. that would be a burst of great news. but i'm not expecting that. stuart: okay. george, thanks for joining us. we appreciate it. see you again soon. now, back to what i referred to at the top of the hour here. former new york fed president bill dudley got totally political. he says the fed should not cut rates because that would help president trump get re-elected. brad blakeman still with us. i'm astonished at this. that's blatant politics. wait a second. i have to ask the obvious question. what's the difference between him saying don't cut rates because it might hurt trump, that's political, and president trump saying hey, jay powell, you are the enemy? what's the difference? >> here's the difference. president trump's political. he got to office and elected by the people. the fed is appointed. and confirmed by the senate. their job is not to be political and to not weigh in, especially in a political cycle, as important as this one.
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a presidential selection process. so i think it's totally inappropriate. he's trying to come to the aid of his buddies but the president has every right to be critical of the fed because of who and what he is. stuart: bill dudley actually said trump's re-election arguably presents a threat to the u.s. and global economy. so you've got to stop him. that's extraordinary. >> it is extraordinary, but this shows you how crazy politics has become when people who are supposed to be apolitical suddenly take on a different role. it's actually, in my opinion, very dangerous. as far as the markets are concerned. stuart: i agree. thank you very much. appreciate it. now, big news on the opioid maker purdue pharma and its owners. they are offering to settle thousands of lawsuits against pharma -- not pharma, against purdue. tell me, spell out the terms of this settlement.
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ashley: listen, the family are going to pay anywhere from purdue, they will pay $3 billion out of their own pocket. the total will be between $10 billion and $12 billion to settle. they would also create a public beneficiary trust of which the proceeds would go to victims states and counties who have been battling this opioid nightmare essentially. this is interesting because we just had the big johnson & johnson verdict, over $500 million. the company that makes oxycontin, purdue, has tried to get out ahead of this. there are thousands of lawsuits from states and local municipalities so this is one way they are trying to come to some sort of agreement. it's a very drastic move to say the very least. stuart: i would have thought the other pharmas like teva, i would have thought they would be down some more. big drop yesterday for some of them. i thought they would have been down some more today on news of this huge -- ashley: the oklahoma case settled, as have some others.
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they are willing to pay but not to the extent that pharma, purdue pharma has done which is quite remarkable. $10 billion to $12 billion. stuart: it is. all right. now, tiffany, look at that stock, please. fewer tourists spending less money but they made more money but nonetheless, tiffany is now down nearly four bucks, 4.7%. quite a loss for tiffany. better sales at lingerie brand. the lingerie brand is doing well, up peloton filed for an ipo. lauren simonetti has details. they are losing a ton of money. lauren: unprofitable. lost about $200 million last year. but they are growing their revenue at 100% annually so in my opinion this goes into the zoom category, not the uber category, because they have the market. they have a high income consumer who is spending at least $2200
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on a bike, $4200 on a treadmill, then because it's at-home fitness, streaming, they are spending $40 a month on the fitness classes. that's a lot of money going to peloton and they're not canceling subscriptions. their churn rate is very very low. stuart: for a successful ipo and looking to the future, they've got 1.4 million subscribers or members, whatever you want to call it, now. they have to really increase that a lot to become profitable and make it a successful ipo. can they do it? lauren: they have started to do it. they have another subscription program, about half the price, $19 a month, that you don't need the bike. you can just subscribe to the classes and take whatever you through that program. they are trying to reach out to everybody here. stuart: we don't know when this ipo is coming down the pike. lauren: sometime in 2019. they are looking to raise $500 million. that likely will go up. stuart: $500 million sometime this year. we shall see. lauren: the valuation, $4 billion. stuart: yeah. okay. $4 billion. lauren: a lot of money.
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stuart: home bike. okay. i'm not in that market. lauren: it's an everything sort of company. media, technology, fitness, streaming, music. stuart: okay. i have seen all the ads. it's not quite me. lauren: for the record, i don't have one, nor will i ever buy one but i think it's a clever idea. stuart: check futures. we have narrowed the loss almost completely, down 19 points. even though we've still got this drastic inversion. my, how times change. let's talk about that tropical storm dorian, barreling toward puerto rico. the trump administration is under fire for diverting millions of dollars in hurricane relief funds to the border. the optics, not good on that one. we'll cover it for you. new photos show north korea may be building a submarine capable of launching a nuclear missile. we'll have that for you. pandemonium in china. costco's first store there so popular, it had to be shut down, overcrowded. we will bring you that story and the video, too. back in a moment.
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stuart: constitutional alert. britain's prime minister boris johnson will suspend parliament. now, without getting into the weeds, ash, this makes a no-deal brexit more likely. ashley: right. because what happens is parliament is suspended from september 9th to october 14th, while it signals the end of one parliamentary session and begins another. don't forget, the uk is supposed to be out on october 31st so that's 17 days that parliament comes back. that gives mps a chance to do something. the opposition are in outrage saying this is a constitutional blah, blah, blah, blah, but the chances of a no-deal brexit now go up significantly. i do think you are going to have a call for a no-confidence in the government. that's the only thing left for the opposition party. it's going to get very messy between now and then. stuart: britain with no written constitution, the queen can do this. ashley: the queen can do this. boris johnson will say to the queen your majesty, we want to suspend parliament, you will reopen it with your speech which is tradition on october 14th,
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and she's obliged to say okay. stuart: our american colleagues and friends will ask what's going on. no britain constitution sometimes works. let's get to china. look at this. that was costco's first store, opened just the other day and closed early because of the crowds that you are watching right now. i want to bring in retail watch er, who says costco nailed it. go ahead. what are they -- put that video up again. it's astonishing. what are they doing so right? >> they tapped into what we all love here. a rising middle class that loves a good bargain. the membership card gives them the feeling of exclusiveity, that they are a member of this special club and are offering all the food and items they want and need in bulk. their value proposition taps right into the chinese middle class consumer. stuart: no hostility to an obvious american brand in the middle of a fight between
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america and china? >> no, absolutely not. in fact, costco has been in the market since 2015 and part of what they've done right is they started on single day, the big alibaba sales day in 2015 and they experimented and did something incredible. they sold 7,000 tons of u.s.-grown cherries in 24 hours. stuart: was that their only product? >> it was their only product that day. stuart: one product. >> 7,000 tons. stuart: sold 7,000 tons. >> right. stuart: what was the next step? >> the next step was in 2017, they engaged alibaba on a larger level and opened a cross-border store to send u.s. products to china, then they opened a flagship store so they have been laying the groundwork of their new retail strategy in china for the better part of five years, going first online, then to offline, now integrating the two. there's built-up demand and the opposite of hostility, chinese
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consumers love american products. they can't get enough of them. stuart: i'm showing costco on the screen now premarket, up a buck and a half. i'm not following the stock closely but i take it it's done very well recently? >> yeah. costco has been one of my favorit favorites. they are on a growth trajectory that i see at least for five years coming. their global expansion into china, spain, other markets is going well and they have just got the formula right. stuart: you nailed it again. thanks very much for joining us. we appreciate it. good stuff. now let's look again at futures. a narrow loss at the opening bell, despite as i keep saying, a very wide inverted yield curve. illinois instituting new requirements for corporate boards. forcing them to disclose their diversity efforts. interesting. elon musk's spacex getting one step closer to sending humans to mars. its latest rocket prototype hits new heights. there it is. we'll be back after this.
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there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. stuart: tropical storm dorian is gaining strength. it's in the caribbean heading for puerto rico. it makes landfall today, probably. landslides, flooding, power outages, you name it, likely and possible.
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president trump declared a state of emergency last night. he's ordered federal assistance for local authorities. the storm could hit then florida this weekend and it would be by then a category 2 hurricane. the white house is diverting millions set aside for general disaster relief to border facilities. the optics don't look good. ashley: talking about $271 million. as you can imagine, outrage on the democrats' side. let's have this statement from nancy pelosi, who says quote, stealing from appropriated funds is always unacceptable but to pick the pockets of disaster relief funding in order to fund an appalling inhumane family incarceration plan is staggering and to do so on the eve of hurricane season is stunningly reckless. now, that money by the way would provide 6,800 additional beds for immigrant detainees. the president and the administration believes they can divert this funding to relieve the conditions on the border. stuart: where is the need
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greatest? the president thinks it's on the border as opposed to an impending problem in puerto rico. got it. chicago wants to know what are big corporations doing about diversity. now, i believe they've got -- this is illinois in general, right? ashley: correct. it's the companies, their headquarters are based in illinois. this would begin in 2021. they want to have an annual report that each company provides gender, racial and ethnic diversity on the corporate boards. they will also, the university of illinois will use data to establish a rating system on these companies in an effort to boost diversity. in other words, you could be shaming companies saying you only get 48%. but by the way, the original bill that was introduced was far bigger than this. this is very stripped down and even those that were pushing for this say what's in place now is way too watered-down. they originally wanted to have at least one woman, an african-american and latino on each board. that got watered down.
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stuart: more political control of private enterprise in the great state of illinois which is darn near bankrupt. okay. let's have a look at the futures markets. where are we going to open today? down about 50 points. down 25 on the nasdaq, despite a big, big inversion in that yield curve. we'll be back with wall street after this. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪
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stuart: breaking news as we speak. hudson's bay selling its department store lord & taylor. who's buying it? ashley: a clothing rental company. hudson bay, a massive retailer, has been looking to offload lord & taylor for awhile. they are selling it to letote for $100 million. that's part of this clothing rental market that's really growing right now. 79 bucks a month, you can subscribe and rent clothes. this also gives letote physical store fronts as well. there are about 45 storefronts. stuart: clothing rentrental? where have i been? i ought to get out more. this has to be back by noon. clothing rental.
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who would have thought in just a couple years you get this extraordinary business capable of buying lord & taylor? ashley: incredible. stuart: sure is. hear that bell? that is the opening bell on wall street. when it stops ringing, they will start trading. they are going to stop ringing that bell now. because it's 9:30 eastern time. we are off and running. here we go. how did we open? down. not that much, down about 60 points for the dow industrials. remember, that's on a 25,000 index. that's about one-fifth of 1% down. show me the subpoe&p. that's also on the downside, quarter percent lower there. show me the nasdaq. that is down at one-third of 1%. here's the important numbers. the yield curve. there is the two-year treasury yielding 1.50%. that is more than the yield on the ten-year treasury, 1.45%. that's a widespread and the yield is inverted. supposedly a recession signal. why is the market shrugging? good question. joining us, shah gilani, john
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lonski, ashley webster. first to john, the economist among us. look, it's an inverted yield curve big-time, and the market's shrugging. why? >> it can afford to shrug for the time being. it's only when the inverted yield curve has been with us for several months that it becomes a sure-fire indicator of a recession within 18 months. the federal reserve has plenty of time and a lot of room given the containment of inflation expectations to cut interest rates by one half to three quarters of a percentage point by the end of this year. stuart: i think they should have a very quick cut and in the immediate future. what say you? >> i think you're exactly right. they could go down 50 basis points september 18th if the august employment report that comes out on september 6th is on the weak side. if we have 125,000 jobs or so created that month, then the fed has to cut by half a percentage
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point on september 18th. stuart: if we get a half percentage point cut by the fed, do we get a nice market rally? >> we gret a brief market rally but in the end, the market will digest that cut and say is anybody borrowing off those rates. that's the problem folks see now. stuart: let's get to opioid maker perdue pharma and its owners. they are offering to settle thousands of lawsuits. they would pay roughly $12 billion, $10 billion to $12 billion goes out the door. the family gets out of the business all together. do purdue take the biggest hit? >> by far. they were the biggest producer and manufacturers of the opioid, biggest sellers and marketers. they are taking the biggest hit. johnson & johnson we know resolved the case the other day or were actually fined i think $700 million, which was less -- ashley: $572 million. >> which was a lot less than expected. i think there will be a further
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hit on it. they are doing okay but i think the business is dead. opioid business now is pretty much under water, between regulations in terms of distribution and what's going to be required in terms of prescriptions. it's probably a dead business. stuart: i hope that purdue settles very quickly so the money is released and it goes to the people who need it. i would like to see that. all right. we are down 96 points now. that's after three minutes' worth of trading. now this. a former uber engineer charged with stealing secrets, trade secrets, from google. ashley? ashley: anthony lewandowski was the man spearheading google's waymo program. they allege in the months before he quit he downloaded some 14,000 files, quit, then started his own self-driving truck company which was then bought by uber. that is the allegation. google or waymo not very happy with that. he maintains his innocence. his lawyers say he didn't steal
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anything from anyone. the downloads at issue occurred when he was still working at google and he was authorized to use that information. but that's the big story. stuart: uber is taking the hit. uber is down to $32 a share as we speak. and the latest drop is because of this engineer. ashley: correct. stuart: all right. check the big board. triple digit loss now, down 113 points. that's .4%. facebook quietly got rid of the it's free and always will be slogan on its home page. quietly got rid of it. what does that mean? don't know, but the stock is down a couple months. tiffany's earnings better than expected. they did make some money but revenue fell short. they are blaming slowing sales on the unrest in hong kong and the stock is now down just a buck and a half, but that's 1.8%. bitcoin at $10,200 a share. the price of gold is at $1554 per ounce and the price of oil, $56 a barrel as we speak. now look at disney.
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it's a dow component, of course. dropping the price of streaming service, disney plus, to less than $4 a month for a limited time. here's the catch. you have to subscribe for three full years to get that price. do you have to pay in advance? i think you do. but you have to commit to three years and pay up the money in advance. if you do that, you get the streaming service for $4 or slightly less. that's going to make a lot of parents happy, i suspect. i don't know. ashley: keep the kids happy. stuart: i guess. >> it's a brilliant move. stuart: very cheap. >> the timing is good. i think they will probably have to extend it. they will see such a great response, they will probably extend it another few maybe weeks, i'm not sure. i think it's brilliant. it's going to be good in the long run for the stock. stuart: four bucks a month, if you pay in advance. i call it cheap. got it. >> cheaper content and deals, it's a great deal. stuart: peloton, the fitness equipment maker and operator, they will file for an ipo.
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the balance sheet, though, not good at all. you are the money guy here for a second. they are losing, what, $195 billion, is it? another ipo from a money loser. >> their loss quadrupled in the last fiscal year but revenue doubled. this is a subscriber model. not only do they sell the equipment, they sell subscriptions to the different programs that you can follow along using the equipment. i think it's a brilliant idea. i think it's a brilliant company. i think it can take a little while for it to make up its losses but i think in the long run this model is a very successful model. stuart: i will throw this to our economist, john lonski. you have to spend 2,000 bucks on the bike, 4,000 bucks for the treadmill. then you have to spend 20 bucks a month or thereabouts for the streaming that you get with it. are there enough people in america prepared to pay that kind of money to see their subscription numbers go straight up? >> i don't think so. i doubt it very much. i don't think you have a big enough market so it's important that peloton learns how to
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control costs to make this particular business model work. going back to disney, their kuth cutting of the price, they are assuming they will be able to control the cost of content going forward to make this move profitable. quite interesting. of course that's more or less in line with this containment of inflation expectations that i think is very important looking forward for bonds and for equities. stuart: i made a mistake. it is not 20 a month for peloton. it's $40. ashley: twice as much, wow. stuart: makes your point even more. >> between fiscal '18 and '19 they doubled their connected subscribers, over 511,000 in fiscal '19. stuart: okay. >> that's a substantial jump. stuart: would you buy the ipo when it comes out? >> i don't like to buy any ipos. i like to see how the market does. i like to see how it comes out and look for it a little lower. if the market knocks it down. long-term, probably a great bet. >> the competition is coming
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from gyms and a lot of gyms are lowering their costs. something to consider. stuart: you can stay home and do the peloton thing. interesting. a new quinnipiac poll on the economy, one on politics and one on the economy, 61% say the economy's excellent or good. now, listen, that is the lowest in this poll since april 2018. by the way, 37% say the economy's not so good for poor people. ashley: or poor. stuart: i have trouble reading scripts these days. it's my age. you are the economist. >> well, this number thing, everyone is ah, it's with these relatively strong readings we are getting on consumer confidence. look at the latest number from the conference board, and the percent of surveyed consumers expecting a decline in income over the next six months was the lowest since 2000. as long as you have a relatively
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low unemployment rate and we have potential of moving the unemployment rate yet lower, maybe to 3.5%, 3.25%, then i think consumer confidence is going to be strong enough to extend this growth by consumer spending and this growth by u.s. consumer spending, not only important to the u.s. but the world. stuart: got it. look at this. all of a sudden, we are down sharply. sharply lower, down 139 points. ash, can you just check real fast for me, this inversion, because the inversion's gotten worse. ashley: ten-year dropped to 1.44%. the two-year, 1.49%. stuart: okay. five-point spread. still inverted. go on. >> in the past, prior to recessions, this inversion has gone to 20, 25 basis points, a quarter of a percentage point, half a percentage point. we're not there yet. it hasn't lasted long enough yet. stuart: how long does it have to last? a week? months? >> yeah.
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a month or two. ashley: okay. stuart: by the way -- >> in 1998, we had an inverted yield curve, august or september, and recession did not result. stuart: by the way, as you were speaking, the market came back. ashley: how about that. stuart: president trump tweeting about the british. would be very hard for jeremy corbyn, the leader of britain's labour party, to seek a no-confidence vote against new prime minister boris johnson, especially in light of the fact that boris is exactly what the uk has been looking for and will prove to be a great one. love uk. wait a second. earlier today we had news that the queen will suspend parliament from mid-september to mid-october. that makes a no-deal brexit more likely and that's what president trump was just commenting on. 9:40 eastern time. sorry, folks. we are out of time. jam-packed day. shah and john, thank you very much, gentlemen. we appreciate you being here. check that big board again.
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we are down 100 points on the dow industrials. actor isaiah washington, best known for his role in "gray's anatomy" calling out the closet conservatives of hollywood. these actors are too afraid to admit they're not a fan of the far left. that's what he is saying. he's on the show in our 11:00 hour. the college board dropping plans to factor a student's socioeconomic status into their s.a.t. scores. e-cigarette companies facing a possible death, nearly 200 suspected illnesses, now a big lawsuit in north carolina. next, an early juul investor. would he still invest in the company if he knew then what we know now? i will ask him.
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stuart: happening now, news on trade. the u.s. trade representative's office has affirmed plans to levy an additional 5% tariff on chinese goods on september 1st and on december 15th. that's why the market suddenly dropped to a minus 120. but we have come back since then. bad news for the vaping industry. north carolina suing eight e-cigarette companies claiming they were marketing to minors. there are nearly, what, 200 cases of severe lung illness linked to vaping products. they popped up all round the country. one person has died. the ceo of juul, big name in vaping, addressed the concerns this morning. watch this. >> it seems like every day we get a new report from some health department around the country saying that somebody has severe lung failure, severe lung disease tied to vaping. when that kind of report pops up, what's the reaction? >> worrisome.
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worrisome for us if we contributed to it. if there was any indication that there was an adverse health condition related to our product, i think we would take very swift action associated with it. stuart: greg smith is with us, an early juul investor. that was one of the original vaping companies. greg, would you still invest in juul if you knew what you know now? >> yes, stuart, good morning. i would invest. stuart: so there's no problem with vaping that you can see? >> look, i think vaping right now, there's a bad actor problem in the industry. i think the u.s. government as well as retailers could easily solve this problem. stuart: what bad actor? what do you mean? >> for example, i purchased a counterfeit juul pod on amazon for $6.95. you know, this came to me from asia. it took probably several weeks to arrive. i don't understand why i or even my kids should be able to log on to my amazon prime account and buy a juul counterfeit pod that
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is not compliant. stuart: wait a second. they got nearly 200 cases of lung illnesses, admittance to hospital, nearly 200 cases. that wasn't all the result of rogue pods from asia. >> no. i think if you dive into the data and actually go to the fda site and look at their safety reporting portal, i think what consumers have to realize is that a lot of these are self-reported. you had 35 cases that were self-reported over a period of nine years, until april of this year. then there was some awareness in the press, then all of a sudden you had a deluge of people self-reporting. if you actually look at the reports, you have to realize they're not made by health professionals. you can look at the people saying i have been using e-cigarettes for the last two years in an effort to quit smoking and i've had a seizure. my doctor told me it could be from a maternal history of seizure or it could be from the fact i take tramadol, a pain killer linked to seizures. you have people trying to
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self-assess. they're not medical reports. s stuart: can you tell me that vapor going into my lungs is harmless? if it's tobacco that's being vaped, that vape going into my lungs, you tell me it's safe. >> i'm not a smoker. if i were to be a smoker, i would 100% vape. stuart: that's not the question. can you tell me that putting vapor from tobacco in my lungs is safe? >> well, it's not tobacco. it's nicotine. stuart: can you tell me that? >> i can never say it's 100% safe. stuart: that's the problem. you cannot say vaping going into your lungs -- >> it's a reduced risk product. if you look at uk england, they say vaping is 95% better for you. it's less harmful for you than smoking cigarettes. cigarettes, it's the tar that will kill you. there's hundreds if not thousands of products when you smoke, something that heats or burns. e-cigarettes are a much better delivery form of nicotine which is not a carcinogen.
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stuart: i agree the best way to get off smoking tobacco, i get that. >> i would smoke a juul, i would smoke an e-cigarette if i were a smoker. stuart: -- i think you would admit to that. >> as consumers get smarter and realize the increased problems with smoking, which if they don't already, you know, they are sort of foolish to continue to be smoking cigarettes, vapor will continue to grow. if you look at the big news obviously on big tobacco yesterday, this take under, i really think this was driven because the big tobacco companies realize they can't scale their vapor portfolio fast enough to offset falling cigarette volumes. we are seeing a massive falloff in cigarette volumes which is a good thing for public health. stuart: am i right in saying altria paid juul $12 billion for a stake in juul? >> they did. look, we are going to a smokeless future. it will be a fabulous day when i can look at the next generation of kids who will turn to us and ask what they see in the movies,
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what's promulgated in hollywood movies. hopefully that's the only place we see cigarettes is from old 1980s movies. we are going to a smokeless future and i think juul will be a big part of that and it will be a big public health benefit. stuart: thank you very much, sir. appreciate it. next case, the dow 30, have we come all the way back. all the way back. ashley: we were down 136. stuart: ten minutes ago. now we are down 31. got it. we've got about two-thirds of the dow 30 down, one-third up. millions of people hit the road this holiday weekend. yes, they will. me included. labor day gas prices, lowest in years. okay. here's the question. how much lower will gas prices go? and why is california so much more expensive? our gas watcher is next. there's a company that's talked to even more real people than me: jd power. 448,134 to be exact. they answered 410 questions in 8 categories
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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. play it cool and escape heartburn fast with new tums chewy bites cooling sensation. ♪ tum tum tum tums
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stuart: all right. price of oil, $56 a barrel, actually rising $1.43. here's the interesting part. the price of gas. that keeps on falling. you're down to $2.58 as your national average right now. come in, gas buddy guy. patrick dehaan, favorite guest on this program so long as he's forecasting lower prices. i read your stuff, and you're saying that by thanksgiving,
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late november, 10,000 gas stations will drop below $2 a gallon. spell it out for the good news, please. >> that's right, stuart. you know, as we tend to head into fall, we get some relief at the pump naturally. seasonality returns, that is the switch to cheaper winter gasoline which is just two and a half weeks away and of course, demand for oil, gasoline, is going to go down with the conclusion of the summer driving season. so it's true, we are going to see a lot more stations under $2 a gallon but already today, you can find some stations under $2 a gallon in almost seven states. stuart: which states in particular will get these 10,000 stations below two bucks? >> i think you will see them peppered throughout the southeast. oklahoma, texas, south carolina, all throughout the southeast with the exception perhaps of florida, but even there, you may see some stations under $2 a gallon. you will probably see a few spread throughout the midwest, the great lakes as well. you certainly won't find them on the west coast. stuart: again, by late november,
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thanksgiving, what will be the national average? it's $2.58 now, the national average in late november, what do you think? >> i certainly think we can get down to $2.25, maybe $2.30 a gallon. keep in mind a lot of this has to do with the fact there's no trade deal between the u.s. and china. if suddenly somehow there's a trade deal, then i don't think we will fall quite that low. stuart: one last one, patrick. in california, the average for gas is $3.68. exactly $1 higher than the average for the rest of the nation. why is it so expensive there? >> it's incredible. you continue to see gasoline taxes that are higher in california and of course, they did raise them again this july. and the fact that the west coast is a bit of a petro island cut off from the rest of the country keeps prices high but that's exactly why people need to continue to shop around. stuart: okay. i'm looking for $1.99 gas and i hope to find it by thanksgiving, because i'll be looking. patrick dehaan, thanks very much. see you soon. >> my pleasure. stuart: check that big board. turned positive.
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how about that. what a turnaround. that announcement to the trade tariffs, that apparently was just a formal announcement of something that was mentioned earlier, so there was a spike lower, now we have come all the way back. soccer star carli lloyd says she's getting offers from nfl teams after that video, the one you're seeing. she kicked a 55-yard field goal. here's the question. is the nfl ready for women players? we've got the perfect guest. joe theismann is in the 11:00 hour. so much for the fed staying out of politics. former new york fed president bill dudley says powell should not cut rates because it would help president trump get re-elected. that's just plain wrong. my take on that, a rant, coming up next. the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route.
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obviously. retirement, . . studying my playbook? yeah, actually. but how do i know if i'm i'm getting a good deal? i tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if i'm getting a great price. this is how car buying was always meant to be. this is truecar.
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stuart: what was about the federal reserve staying out of politics? you know, it must be independent, stick with managing money. don't get involved with policy.
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that went right out of the window. precisely the moment the federal reserve should cut rates, top official says don't do it. that would help trump. ain't that something. bill dudley used to run the new york fed. he is a heavy hitter. a lot of clout in the financial world. he said don't bail out an administration that keeps making bad choices on trade policy he goes on, trump's re-election, presents a threat to the u.s. and global economy. he has taken sides. he has gone political. he joins anti-trumpers to join his colleagues to shift monetary policy so our president is not reelected this is absolutely wrong. interest rate policy should, should not be dictated by political preference. what? don't cut rates because bill dudley doesn't like trump's trade policy that is just plain wrong. if the fed chair, jay powell,
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came out in favor of mr. trump's trade policy i would say exactly the same thing politics is not your job. knock it off. the job is fed to keep inflation in check, go for full employment, that's it. re-election of the president is not your business. response has been dangerous, and clear, misguided. maybe trump haters will rally to dudley but the financial pros are not. that is good. today, interest rates continue to tumble all around the world leaving our rates above everybody else's. that has got to change. the fed must cut, and soon, whether it helps the president or not. that is irrelevant. the if you had should not be influenced by politics. bill dudley is out of line. the second hour of "varney & company" is about to
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begin. ♪ stuart: i got to get right at this. come on in elizabeth mccdonald. she is back. she is the host of "the evening edit." what do you say. >> it is beyond the pale, it is a shocker. he was second most powerful fed official. he is a insider insider. william dudley ran the new york fed. this is stunning that he is saying powerful bankers should have judgment over who wins an election instead of voters. he said, the fed's desire to remain apolitical is no longer tenable. that is practically a direct quote. he said the election should arguably fall within the purview of the federal reserve. you look at this, he is second most powerful guy at the fed. the new york fed under bill dudley is now going to be called into question because the qe3, under obama, in september, 2012,
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with william dudley's urging, the federal reserve basically did an open fire hydrant, open-ended purchases of mortgage-backed securities, exceptionally low until 2015. you got to, you got to wonder how mitt romney feels, right? this happened right before the election. the, under, when new york fed bill dudley was in that chair, the federal reserve did unprecedented stimulus under the obama administration. stuart: right. >> we didn't see that -- stuart: they financed obama's policies. >> basically. they financed what congress wanted. you didn't see that with the s&l fueled recession. you didn't see that with the dot-com boom. final point, the federal reserve he should know its history, since world war i, the federal reserve has been under pressure to do more bond buying, to finance wars. it happened through fdr, lbj, through nixon, ronald reagan until paul volcker, that basically stopped under volcker.
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the federal reserve is not some aye historical thing like a sewing machine. it is individuals that make statements. he should come out and apologize. that what critics are saying. stuart: the fed should lower the rates. they have to do it. who case what effect on election. >> it is shocking. stuart: if you want more of this, i'm sure you do, remember tune into "the evening edit" 6:00 tonight with liz on the fox business network. liz, thank you very much. great to see you back. >> thank you. stuart: now this, new "qunnipiac poll" out this morning, it shows, how about this? all four democrat front-runners beating president trump in head-to-head matchup. look at that. by wide margin too. go pac chairman david avella. whether you like it or not you have a problem with that poll. what do you say. >> if barack obama could get reelected when americans had a 25% view that the economy was
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excellent in august of 2011, president trump is on his way to an electoral landslide. 61% out of that same poll said the economy is great. would this ultimately bad news for? joe biden. joe biden's key argument he is the most electable democrat. this poll would suggest any of them can be competitive. we still have a long way to go before we look at a general election matchup. stuart: i put it to you, that president trump's big problem is with white woman. stuart: especially white suburban women. he is way behind in polling of that particular group. i don't see how he gets that back in the next 15 months. >> you have to continue to have a strong economy. and, which is why you have -- stuart: that is not what is motivating women to vote against him. that's not it. it is his history with women. it is his use of language with women. and the perception that you know, this is not a female-friendly administration. that is what he has got to
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battle. >> you have to have a strong economy, stuart, and we have to have a plan presented to voters about health care. which is suburban women's number one issue. if we have a solid plan that we are talking about next year, on how to bring health care costs down, how to make sure you can see the doctor you want to see, how to make sure you have access to doctors, you mentioned suburban women, there is also been a drop amongst women voters in rural areas. when you talk about access, if you don't have a doctor to go to you have an access problem. in rural communities having access to health care, actually being able to see a doctor, not insurance, whether you have it or not whether you can go see a doctor. republicans present ideas on health care that women say that is path they want to take, we win. stuart: okay. i have got to point one thing out. >> sure. stuart: the monmouth poll a couple days ago showed that joe biden had lost his lead. the "qunnipiac poll" out today, shows he is still got a commanding lead. you got to be worried.
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last word to you? >> democrats will take care of joe biden. there will be lots of ads reminding people why they shunt vote for joe biden. he has no idea what is about to hit him. stuart: you do? >> whether he is in vermont, new hampshire, wherever he thinks he is today. stuart: we heard that. david a developla. see you soon. get back to your money. this is a big money day. the yield on two year and 10-year treasurys are inverted. on your screens, 1.50 for the two year. it is higher than the 1.46% on the 10-year. should not be like that. we have with us now, jason rotman, ever plus capital director. jason, two weeks ago, when we first had this inversion, the dow dropped 800 points. now we've got a more extreme inversion and the market mark shrugs. what is going on? >> as you know, stuart, when there is a surprise hitting the market or even, not only a
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surprise but when something hits the market for the first time like this inverted yield curve, the market reacts in a fairly extreme manner. number one, the market is used to this environment of this, of this almost unprecedented yield curve, at least over the past 10 years, 2007, was the last time it sustained, number one. number two, there is 100% chance as far as the prediction markets, the official prediction markets the fed will cut rates 25 basis points next month. there is 15% chance we'll get 50 basis points next month. the market, as it looks forward to the future. that is somewhat of a bullish impetus that is holding up the market. stuart: i would like to see a rate cut by the federal reserve way before the middle of september. surely one is justified now? the rest of the world rates are falling way down into negative territory. we're still up here. we've got to change and change fast. wouldn't you like to see a big rate cut now or next week, but
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certainly before the fed meeting? >> listen, no. i think 25 basis points in a few weeks is more than enough. i think the fed risks, for lang of a better word scaring the market if they did a emergency cut. the s&p is not at 700 like march 2009. we're still almost at 3,000. big, big picture a rate cut at the designated meeting is plenty. i think market would be happy about that. stuart: jason, i have a ton of news today. i kept it short. we always appreciate you being on the show. jason rotman. >> my pleasure. stuart: sure thing. purdue pharma offering to settle more than 2,000 opioid lawsuits. they will hand over what, 10 to $12 billion over a long period of time. i think that is a good move. i want to see the deal, the money to flow now. otherwise these things are held up in court decades. get the money out there now, for heavens sake. the family out of this business.
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the white house diverting a lot of money, millions of dollars of disaster relief funds to pay for new my grant detention facilities at the border. bad optics on that one, some would say. check this out. opening day for a costco store, the first costco store in china. hundreds of shoppers crowded it. the store closed eight hours early. couldn't handle the crowds. there is an american company in china doing well. ♪
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lawsuits. matt whitaker, former acting attorney general is with us. sir, i say settle now. get the money out there because the the alternative is decade in court. are you with me? >> in 2017 we lost over 70,000 people to drug overdose deaths. the numbers slightly come down. it is still an epidemic. we need to get the money, not only settled from these companies responsible for the crisis, get that to work to help people with their addictions. some things in oklahoma where they invest back to learning more about addiction. stuart: i presume more lawsuits are still to come, as yet unsettled, that you would want to see this move quickly. all across the board, not a long, drawn out litigation involving different states and cities and towns and people and individuals, but just get it all together and get it out there. can we do that? >> i think we can.
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each company obviously is going to have to look how this affects their company and viability of their company but the long story short is, i don't think there is any doubt of the culpability of these companies. that minimize the risks of opioids and really didn't give a full disclosure what the addictive qualities of these drugs, so i think it is very important once we get those behind us, then we can start attacking this chinese illegal fentanyl still coming into our country. stuart: that is the big problem outstanding there. this is not just opioids, a fentanyl problem at this point. the white house is diverting millions of dollars which had been set aside for disaster relief, moving it over to fund new immigration detention centers at the southern border. house speaker pelosi responds to that with this, stealing from appropriated funds is always unacceptable. to pick the pockets of disaster relief funding in order to fund an appalling inhumane, family incarceration plan is staggering. to do so on the eve of hurricane
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season is stunningly reckless. the president does have the power and the authority to make that switch of funds. he does, right? >> he does. this is, you always see this at the end of a fiscal year, whether reprograming to the needs, that the administration sees, heading into the next fiscal year. fundamentally the problem with the democrats in the house especially they are not funding what is required at the border to deal with the onslaught, especially these family units. so i think it is very prepare rad for this administration to take resources where they may have extra, and then move it into other avenues to spend but at the same time, you know, we do have a hurricane season. i'm certain that this administration is not going to be foolhardy in their spending of these funds. it will go to the highest priorities. if necessary, be deployed to places affected by natural disasters.
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stuart: this money is not necessarily coming out of funds going to puerto rico, if indeed puerto rico suffers significant damage from this tropical storm dorian, not necessarily coming from there but just from disaster relief funds in general, am i right there? >> correct. correct. and really, again we, to some extent we need to trust this administration sees the full picture of what is required and deploys the assets accordingly. congress, if they would quit underfunding the requirements at the border to help with the detention facilities, to help with the border security, situation and humanitarian crisis we're seeing at the border, we could quit playing political games with immigration and crisis and deal with both, natural disasters and disaster that is the situation on the southern border. stuart: matt whitaker, always a pleasure. thank you for being with us. appreciate it. thank you, sir. amazon, you know ring, doorbell people, make the
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doorbell cameras, they partnered with hundreds of police departments giving them access to homeowners personal camera footage. how do you think about that? we've got details for you. plan to dump diversity score for s.a.t. exam takers. they will not not fact a school's economic background into the scores. the board admits it was a mistake. ♪ there's a company that's talked to even more real people
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than me: jd power. 448,134 to be exact. they answered 410 questions in 8 categories about vehicle quality. and when they were done, chevy earned more j.d. power quality awards across cars, trucks and suvs than any other brand over the last four years. so on behalf of chevrolet, i want to say "thank you, real people." you're welcome. we're gonna need a bigger room. who used expedia to book the vacation rental that led to the ride ♪ which took them to the place where they discovered that sometimes a little down time can lift you right up. ♪ flights, hotels, cars,
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stuart: not much movement on the stock market, despite sharply inverted yield curve. ashley: sharply. stuart: that was cause for a big selloff. now we're up 22 points. go figure. facebook ad prices are going up. why? because the democrat presidential hopefuls are on an ad buying blitz. ashley: you know facebook sells its ads in like an auction. so there are a lot of people wanting ad time. guess what, the price goes up. these democratic candidates need 130 individual donors. so ironically what happens is, these candidates, these political committees, can spend more than 100 bucks on facebook to get a one dollar donation, so it is recorded as another person buying into that campaign. it is pretty interesting. you know tom steyer, who i believe still not qualified yet for the next round, spent nearly $4 million through mid, through middle of august just on facebook ads alone. stuart: wow. but he actually missed the cut you know. ashley: he has missed it.
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stuart: despite all the money. ashley: one more poll he is not quite reaching 2%. there you go. for facebook it has been a bonanza. stuart: for sure. the doorbell people, ring, got them? amazon owns them as we know. they are indeed teaming up with police departments. now you got to tell me, ashley, why. ashley: these are eyes and ears, certainly eyes of neighborhoods. they have the camera there, surveillance camera. they have partnered with some 400 police departments across the country, and it they need video they can ask those people in the program, say, look, we're trying to track down someone. we would like access to your video that is being recorded, just to see. they can say no, but generally, they are becoming part of the neighborhood watch program now which is pretty interesting. of course there is outrage from some, it could be a violation of civil liberties, turning, neighborhoods into informants and subjecting innocent people to undue scrutiny. stuart: i see the point.
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ashley: it is pretty powerful. stuart: cameras are absolutely everywhere. ashley: sure. stuart: almost wherever you are you are on camera, maybe not in the country but city, suburb, store, bank, you name it. ashley: cameras. stuart: it is life. we show you this video of carley lloyd kicking that 55-yard field goal at the eagles training session. it went viral. carley is getting serious interest from the nfl. is the league ready for a woman player? who better to ask than nfl star joe theismann. he is on the show in the 11:00 hour. bernie sanders praising the leadership of communist china. he will hear what he said next. ♪ fact is, every insurance company hopes you drive safely.
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♪ stuart: okay, okay. if you don't recognize it, that is the britain's national anthem. you may well ask, why on earth -- ashley: god save the queen. stuart: why are we playing it now. there's a reason, the queen, queen elizabeth approved prime minister boris' request to suspend parliament. tell me more. ashley: oh the drama. the queen agreed to suspend parliament from the week
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september 9th through october 14th. why is this a big deal? the uk is supposed to be out of the eu by october 31st. this really squeezes down the amount of time that the parliament has to try to find a way not to fall out of the eu without some sort of a deal in place. the squeeze is on. they're crying foul. jeremy corbyn immediately asked to meet with the queen. not sure that is going to happen. he will probably call for a vote of no confidence in this government. the president quickly responded to all this. he put out a tweet, put that up, good luck to jeremy corbyn. would be hard for jeremy corbyn the leader of britain's labour parity to seek a no confidence against new prime minister boris johnson, precisely because the boris is what the uk is looking for and will prove to be a great one. love uk. stuart: my bottom line in all of this, the suspension of parliament is, it makes brexit on october 31st much more likely. ashley: very much so. stuart: no-deal brexit, much
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more likely. this moves boris forward in his desire to get out of the eu by the end of october. ashley: certainly does. stuart: it does. that is the way it works. check the big board. now look, what is going on in britain has no impact on our stock market, none at all. at least not at this moment. we're up 30 points at 25,800 odd. we're waiting for latest on oil, how much have we got in storage, how much have we drawn down, how much have we used. that might make a difference to the price. i looking at numbers. here we go. ashley: 10.02 million barrels. stuart. 10.03 million barrels. it's a lot of extra drawdown oft 2 1/2 million barrels. stuart: got 10. big draw down. why the price of oil is up at a buck 67 higher. you reached 56.62 cents per barrel. why? demand for oil is strong.
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we've taken 10 million barrels out of storage to satisfy the demand. 56.5as we speak. bernie sanders praising communist china. listen to this please, roll tape >> they have made more progress in addressing extreme poverty than any country in the history of civilization. stuart: okay. that's true, i guess? ashley: started from a very low base. stuart: i know it is -- but yeah, let me digest. it was a very short sound bite, bernie sanders is implying there that it is communism that has reduced poverty. the man's totally wrong. say it for me, please, joshua, author of heaven on earth, vigorous antisocialist. i think i got that right. bernie sanders is saying oh, look at communists, look how they reduced poverty. it wasn't communists that did itit was capitalism. it was a desire to make a profit. am i right? >> oh, your completely right. he has some kind of a tick where
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he can't help praise communist governments, soviet government, cuban government, nicaragua sandinista government, now the chinese government but irony here is that, yes, lifted enormous numbers about chinese out of poverty when they switched over starting under deng xiaoping, from socialist, communist economic policies to free market policies and the irony is, his bugaboo, sanders' bugaboo is inequality, inequality. that is really what he runs on in the united states, we have too much inequality, but in getting rich, relatively rich, china, with its growth over the past decades has become more or less the most unequal country in the world economically. it has had tremendous growth. it has lifted lots of people out of poverty by having free market policies and it has created a
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tremendous amount of inequality, which inevitably will go along with that kind of rapid growth. stuart: just astonishing to see bernie sanders, standing up there, giving credit to communist for lowering poverty? not communism that did it at all. i don't know how he gethes away with it, joshua? >> communists were in power in 1949. it took 30 years to get red rid of legacy of maoism. during that legacy, not only country was horribly improve visioned, they murdered tens of millions of people, maybe dosser of millions of people, by mao's maniac policies. then they switched to free enterprise. and, something people who are pro-capitalist say all the time, which is a rising tide lifts all boats. so they have had this very rapid
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economic growth, lots people have gotten very rich, there are a great many billionaires in china now. and they're influential positions in politics. here in this country, sanders is always railing against our billionaires but the same process that made billionaires in china is what brought millions and millions of chinese out of poverty. stuart: real good example here of an american capitalist company, going to china, that is costco. they opened their first store. look at this, they had to close it early because of the crowd, the huge crowds that mobbed that costco. i have got to say i'm surprised, this is american capitalist company, doing very well in communist china, despite the intense hostility between the two governments. they seem to like a capitalist enterprise, joshua. >> well, the governments are at odds now, often been but chinese
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people want kinds of things that are producessed in america, quality goods produced under capitalism, that private businesses produce and government businesses never produce. and, give people a chance to vote with their feet or vote with their pocketbooks and they make clear what they want. stuart: they do. joshua, thank you for joining us, sir. always appreciate it. >> my pleasure, stuart. stuart: you see the dow is up 51 points on the right-hand corner of your screen. the price of oil is up a buck 40 at 56. there you have it. 2 points higher for the dow. 200 cases of severe lung illnesses linked to vaping products they popped up all around the country. one person has died. the ceo of big vaping company juul spoke about it this morning. ash, tell me what he said. ashley: it is interesting. these cases certainly raised the profile of these vaping devices, how good are they for you with
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200 cases? the ceo, mr. burns, kevin burns, was asked that question, what's your response. here is what he said to cbs this morning. >> it seems like every day we get a new report from some health department around the country saying that somebody has severe lung failure, severe lung disease tied to vaping. when that kind of report pops up, what is reaction. >> worrisome. worrisome for us, if we contributed to it. if there was any indication that there was, an adverse health condition related to our product i think we would take very swift action associated with it. ashley: he also adds the company in close contact with the cdc, who is now leading the investigation. he was asked about all these reports, he said, most of the early reports we received indicated it is related to thc. in other words people using these vaping devices for other things. stuart: putting their own stuff in. ashley: correct. but we shall see. stuart: we can.
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thanks, ash. we're moving up. the dow industrials now are up 70 points, gradually inching higher. we're up 71, here we go. 2 now at 25,852. got it. the college board, dropping a plan to give adversity scores to s.a.t. test takers. they have a new plan in place instead. we're going to tell you what it is, just a moment. puerto rico, bracing for dorian, expected to make landfall today. they have warning that this storm gains in strength, become as hurricane as it nears florida. we're following it for you. look at it go. more "varney" after this. ♪
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stuart: we've been talking about the federal reserve all day. so now is the president tweeting about it. here it is. our federal reserve cannot mentally keep up with the competition. other countries at g7 in france, all leaders were giddy how low their interest costs have gone. germany is getting paid to borrow money. zero interest plus, no clue fed. that is just out. no impact on the market. we're still up, what 72 points now, 25,049. in my opinion clearly the fed has got to lower rates, real soon and a lot. that is now required, because our rates are so much higher than the rest of the world. up 75 point on the dow industrials. college board will drop its plan to assign an adversity score to every student that takes the s.a.t.'s. come on in cabot phillips. campus reform director. they're still trying to find a
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way to factor in the student's economic background, right? they're going away from the diversity score. what are they going to? >> they have a new program called landscape where they provide information to universities based on a student's zip code, economic background, parent's income, free or reduced lunch at schoolings all those things are playing a factor. the company got a lot of push back, when the board came out with the diversity score. wait a second, that number specifically is not a good idea. this is pr move. they're giving exact same information but not giving one specific number. this ultimately comes down not judging people on content of their character, education they have gotten, on a test that is the safe for everyone, but we're going to pick and choose, judge people differently based on things out of their control, what kind of community they come from, all those things. a lot of americans say hold on, we should be about equal opportunity, not equal ott come. s.a.t. board got a lot of pushback. it is only beginning. stuart: what is the point of trying hard to do well on any
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exam you have to face to get into college, then finding out, okay you did well, you tried real hard but you don't get in because you're from the wrong socioeconomic background? i have a real problem with that. >> i think in a way it is very condescending. telling students from disadvantaged backgrounds, let's pat you on the head, you will not be able to achieve same things students from wealthier families can. we'll hold you a different standard. we covered leadership institute campus reform how this plays out in the admissions process. certain students are held to different standards. asian-american students, discriminal nation on s.a.t. process, average s.a.t. score, they have to score 140 points higher than a white student, 280 points higher than hispanic student, 440 points higher than african-american student, if you're asian-american student, if all things taken into consideration. giving specific benefit to people from different backgrounds, different races. it is not a merit-based system
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which is fair, we're stripping everything away, judging you you bring to the table. that is ultimately fair. that will help people succeed in the long run. stuart: why are we going along with this? >> yeah. stuart: why are we still messing around with a merit-basedded system, going against a merit-based system? why are we doing that? >> there is two things. one, because we've replaced importance on education with the importance on diversity and inclusion. those two things are positive things in their own right but not when you are allowing them to supersede education as a whole. it is political correctness playing a role. you have to look at the this hierarchy of oppression the left created has on this we're now judging people, giving them special consideration based on how many things they can say depressed them in life. rather than helping you overcome, empower you, we'll lower standard for everyone to accommodate you, instead of we'll help raise you up to get over the standard on your own. stuart: amazing, isn't it? absolutely amazing.
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cabot, you're on to something here. cabot phillips thanks for join us as always. >> thank you, stuart. stuart: before we go to the next story, show me the big board. can we do that? breaking news, there we go. the dow industrials are up well over 100 points. i wonder if it got something to do with the presidential tweet on the fed. ashley: maybe. stuart: he was putting heavy pressure on the fed to lower rates, calling them clueless because everyone has much lower rates. ashley: even negative rates in germany. stuart: negative rates in germany. the president pointed all this out. the market is screaming for a sharp cut in rates and soon. that is what the market is telling us. that is what it wants. we're up 100 points from the dow industrials. let's get to happening now. senator johnny isakson will resign from the u.s. senate seat at end of this year. what else do we know? ashley: he is 74 years old. he put out a statement saying his park kin son's is continuing to progress unfortunately.
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i'm continuing physical therapy to recover from a fall in july. this week i had a surgery to remove a growth on my kidney. after much prayer and consultation with family and doctors, i made a tough decision to leave the u.s. senate at the end of the year. chair of the veterans affairs committee. chairs of ethics committee. he is senior senator from georgia. he is getting out of the senate for health reasons. stuart: we got it. ashley: sure. stuart: president trump, slamming a "new york times" columnist over reports that the trump doral resort had bedbugs. that columnist has since deleted his twitter account. howard kurtz has the full story. he he take us through it. ♪ there's a company that's talked to even more real people
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stuart: we're up 1 24 points. we have citigroup, they're raising minimum wage, i believe for all employees, $15 an hour.
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that is citigroup for you. here is another one. brookstone, i know that company well, used to go there all the time in the malls. bankrupt. ashley: place where fathers used to go in the massage while the rest of the family shopped at mall. filing for bankruptcy. maybe not a big surprise. this is the second time in four years. they will be closing all of their 102 stores left. they have 35 stores at airports that they are trying to sell right now. it is currently owned by a chinese company, sand power, who bought brookstone at a bankruptcy auction in 2014. not sure how many employees this will hit. brookstone filing for bankruptcy again. stuart: there you have it. i used to like that store. interesting items. gadgets. ashley: it was good. stuart: president trump slams "new york times" columnist bret stevens. look at this. a made-up radical left story about doral bedbugs but bret stevens ised up with them. been calling me wrong for years, along with few remaining never
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drummers. all losers. howard kurtz joins us. you know this story. take it through from beginning to end. >> this story makes my skin crawl. stuart: ah. >> one real part of the story, new york time newsroom in manhattan 45 bedbugs on every floor. that prompted a on professor the george washington university here, tweet at bret stephens, conservative, anti-trump, never trump columnist anytime he was a bedbug. i get called worse on twitter every day before breakfast. stephens, overreacted, thin-skinned wrote a letter to the professor, come up to my house and meet my family, say that to my face. copied the guy's boss. it has become public. it has come up. president attacking bret stephens. he made everybody unhappy, his original tweet got zero retweets. stuart: the president just
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attacked fox as you know in a couple tweets, right? >> he has. he was unhappy democratic national committee official being interviewed on "america's newsroom." more broadly, he has been taking more shots at the fox news division lately, feels that it is not treating him well. journalists not our job always to please the white house or please the president. he has been more vociferious about it. we're getting trumpian treatment. stuart: i have a interrupt one seconds. bret stephens is personal friend. i known him 20 odd years. he is brilliant writer. i want to stay out of the bedbug argument. >> he is pulitzer prize-winning column i. a very smart guy. now that he deleted his twitter account that he perhaps overreact ad tad. stuart: look at headline, trump allies target journalists over coverage deemed hostile to the
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white house. using journalistic techniques to target journalists and news organizations a retribution, as a warning not to pursue coverage critical of the president is fundamentally different from the well established role of the news media scrutinizing people in positions of power. respond to that. >> no it is not. this is egregious double standard. what happened here, the backstory, real quickly is, that some of these trump allies dug up tweet from senior editor at "the new york times," anti-semitic stuff, talking about a crappy jew year, really raw stuff from 10 years ago. he had to apologize. so now "the times" says, trump allies digging up old tweets. that is really dirty pool. but journalists including those at "times" and other news outlets do this all the time to politicians. maybe it is out of control you can't take the position that it is fine for journalists to rummage through somebody's old tweets to try to embarass them, then say, that if anyone does it to the people who are editors and reporters and journalists,
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that that's unacceptable. it is just, it is just a very different standard "the new york times" would like to apply here. stuart: you have got an extraordinary job, howard kurtz. you're the media guy at fox. it all comes right at you. >> seems like every hour. stuart: we're glad you are on the show every week. howard kurtz, thank you, sir. appreciate it. good stuff. another presidential tweet. this one on puerto rico. here it is. puerto rico is the one of the most corrupt places on earth. their political system is broken and their politicians are incompetent or corrupt. congress approved billions of dollars last time, more than any place else has ever gotten. it is sent to crooked pols. no good. by the way, i'm the best thing that ever happened to puerto rico. there is a tweet storm this morning. tweet storm 1/2. okay. monmouth university just releasing a statement on its poll a couple days ago. here is the statement. as other national polls of 2020 democrat presidential race have
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been released this beak, it is clear that the monmouth university poll published mopped was an outlyer. ashley: interesting. stuart: where is this coming from? that is from, that is monmouth university saying that. ashley: yeah. stuart: this is a product of the uncertainty that is inherent in the polling process. ashley: calling out their own poll. stuart: calling out their own poll. explaining their own poll. ashley: interesting. stuart: apologized for it. explain it i guess. ashley: right. stuart: unusual. you made money. now the democrats want to tax the wealth that you have accumulated. two of the front-runners, out with plans to go after the money that you have aaccumulated, that you made, i think it is all about anger and jealousy, frankly. my take on that is coming up next. farmers getting hit hard by the trade spat with china. here is the question. is president trump in danger of losing the farm vote? i will be asking the president's agricultural trade advisor that one.
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ransomware warning from feds. hackers could lock up our election system. are we prepared? i don't know. actor isaiah washington called out hollywood for having closeted conservative views. he is on the show talking about that this hour. (vo) the ant mindlessly marches on.
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stuart: if you've made money and held on to it, you are wealthy. well, watch out. democrats are going after the money that you have accumulated. they've come up with wealth taxes. this is new. they love to tax your income, your business and your capital gains, but they've not been able to take away the money that survived all those hazards until now, that is. if the democrats win in 2020, they are going to tax your wealth. once again, it's the "wall street journal" that's done the legwork on this and first out of the box is elizabeth warren's wealth tax. that's what she calls it and she gets big cheers when she says it. if you've got $50 million, you
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pay 2% of that, like $4 million, every year just because you've got it. i can hear it now. well, you can afford it. besides, it doesn't apply to me so i don't care. maybe so, but you know as well as i do that the $50 million threshold would come way down when they need more money, and they always need more money. second is the joe biden plan. he would change the estate tax rule so that when you pass, your heirs would pay capital gains taxes on the profit you've made on your investments, regardless of whether you've actually taken the profit. okay. let me try to explain this. you buy a stock for ten bucks, when you pass, it's gone to $50. under the biden plan, you pay tax on the $40 profit. that is a big hike in estate taxes. third, the plan from oregon senator ron wyden. if the value of your investments goes up, you pay income tax,
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income tax, on the gain. so your stock is worth a million bucks on january 1st, $2 million by december 31st, you pay income tax on your $1 million gain. you got that? okay. yes, it is complicated. but the bottom line is this. you've got money, the democrats want it. you've piled it up, oh, you are morally wrong and some of it will be taken off you. they are motivated by anger and jealousy and they will never get over the election of billionaire businessman donald j. trump. the third hour of "varney & company" is about to begin. ♪ stuart: yeah. for the love of money. i know that song real well. let me get some reaction to the
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editorial you just heard. i hope you did. jeffrey cleveland with us, a genuine economist. first of all, am i right, i think this is a new form -- not new form, but a new tax, a whole new raft of taxes going after your wealth which we have not done before. am i right in saying that? >> well, i think some of these policy proposals are new but stuart, this is the same old story. it's the eat the rich strategy. it's the idea that you can take wealth from a certain group and you can redistribute it and things will be better off. i think it suffers from two main flaws. number one, the idea that accumulation of wealth, someone with a billion dollars, let's say, represents ill-gotten gains and this is just simply not the case in a capitalistic society. the way you get $1 billion is providing immense value to society as a whole. you provide value, you earn the wealth and income. so i'm sure there are some people that get money from
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ill-gotten means but this is not the case by and large with most billionaires. that's the first thing. the second thing, i find it hard to believe that the way to make society better is to tax wealth, to take it away from those that are good at allocating wealth, making entrepreneurial decisions, and giving it to an organization that has not shown any ability to do that. for example, here in california, any given afternoon,otor vehicles. is it better for an organization like that to have more wealth to distribute, or would it be better in the hands of innovators and entrepreneurs? stuart: i think the question has been answered by you and i and a lot of other people. i think we are in complete agreement on this. let me now talk about the former fed chair of new york's fed, the new york fed. bill dudley. he says the federal reserve should not cut interest rates
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because if it did, that would help the president in 2020. that's a direct political statement from someone who should not be making political statements. what's your take on this? >> i think this is dangerous ground to tread on here. dangerous waters, if you will. the central bank, you know, what is the central bank? what should it do, stuart? i think it should be limited to providing liquidity when you do have a liquidity crisis. so a lender of last resort. that's the role the fed played from say mid 2007 through 2008. beyond that, we venture into the line of the political. this is just another example of it. but you can put things, you know, like quantitative easing, that has a fiscal sense to it, a political sense to it. i think that is what central banking has gone too far, when they try to move from just providing liquidity to trying to steer the economy and now the political situation. i find that dangerous. stuart: okay. thanks very much, jeffrey. the president going off again
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against the fed saying you've got to cut rates now. we have been saying that all morning. the market seems to want exactly that. the dow is up 100 points despite an inverted yield curve. thank you very much indeed. let's go to peloton, the exercise bike people. they just filed for their ipo. however, deirdre bolton, who joins us now, they are bleeding cash. deirdre: they certainly are. they filed in the prospectus showing about $915 million in revenue for the year which is double than last year so you have revenue growth at a great amount but the net losses are growing, too. $200 million a year. the problem is that these bikes, these stationary bikes that go in your home cost more than $2,000 just to put in your home. so let's say for the average person, that's not really attainable or sustainable. so they did start out last year with about 250,000 customers. they grew that, in fairness to them, to about half a million. but still, there are just a lot of questions, just how many more people can afford these. there's also a subscription that goes on. if you can afford it, it's
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wonderful, great, you can take a class with a guy in australia teaching your class, but it ends up being close to $3,000 a year. that's not a price the average person can pay or wants to. stuart: yeah. they are bleeding money. there's $195 million this year. deirdre: and this follows the troubling trend of companies going public that the financials don't look so hot. stuart: thanks, deirdre. i want to alert this. the opioid maker purdue pharma and its owners, the sackler family, offering, what, $10 billion to $12 billion to settle thousands of lawsuits. i think this is the canary in the coal mine for the other opioid makers. they're in trouble. deep trouble. how about apple? just announced they are no longer going to store your interactions with siri, their voice assistant, but you can opt into it if you wish to help apple improve the feature. but only apple employees will listen, not third party contractors. apple's stock right there at
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$204 a share. we have a jam-packed hour for you. we have nfl great joe theismann. we are going to ask him about soccer star carli lloyd. she's getting inquiries from nfl teams after kicking that 55-yard field goal. question, is the nfl ready for women players and not just the kicker? we will ask him. first, we are talking to actor isaiah washington. he's calling out the closet conservatives in hollywood, says they are cowards and no better than a bystander waiting on the blood to spill from a martyr. strong stuff. mr. washington is next. ♪ look, this isn't my first rodeo...
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stuart: bearing in mind our next story, that was quite an appropriate piece of music. jimi hendrix, purple haze. development in the legal marijuana story from canada. sales are up. give me some numbers. deirdre: they certainly are. june of 2019, $68 million in revenue. canada is the first industrialized country in the world to legalize recreational cannabis. they are not fooling around as we are state by state. they just said as a country, here you go. in many ways, canada is actually the guinea pig for the world. 6% sequential growth month on month. i'm looking at all these figures going back to october 2018. you were up there, too. ashley: i was indeed, in the middle of it. stuart: each and every month, sales go up. deirdre: you got it. the last one, $68.3 million. i hate to be silly but this is a huge growth story. analysts say this worldwide market, $40 billion by 2024. ashley: later this year, the
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canadian parliament is expected to pass the use of edible cannabis. stuart: you can't buy edibles in canada? ashley: no. it's the next phase. that will come in at the end of october, i believe. deirdre: it is a huge business. stuart: $40 billion? goodness. next one. our next guest had this to say on twitter. made a few waves. closeted conservatives in hollywood, i have a message for the hollywood actors revealing that you're conservatives. don't dm me again because you are lame and i don't respond well to hypocrites or cowards. you are no different than the bystander that is waiting on the blood to spill from a martyr. ouch. mr. washington, as in isaiah, is with us again. welcome back. good to see you again. you are calling out the silent conservatives in hollywood. what was their response to that tweet? >> i'm sitting here with you today.
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made headline news, washington time news, daily caller. i thought it was important, really something very interesting happened to me since april, since i have been supporting the president. stuart: tell me what happened. >> i tweeted out that i'm supportive of the president, supporting the first step act and i made some criticisms about 44. that's what got me into this interesting space that i have been able to observe, this war between the progressives, liberals or conservatives, although myself, i have been as an artist, i have been an observer but a lot of things have been interesting to me. i'm a bit of a social scientist so i really appreciate being able to have a conversation on twitter and usually in my dms. i noticed since april i have had a lot of individuals from the democratic side as i said to you before, from the libertarian side, very disgruntled and have no place to put this rage, this
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anger. i always ask myself how do i answer that. although i tend to be reactive sometimes, because i am human, but something came to me this morning when i picked up a bible. mark 4:40, jesus was being questioned going through a storm, why are you so afraid. do you still have no faith. that's really what that tweet was coming from. it's that if you were being attacked and being treated poorly, then turn that adversity into action. we cannot allow ourselves to be turned into animals and lashing out back and fo have to think o through this. that's really what that tweet is about. if you are going to continue to say the me in private something that is challenging you to the point you feel you will lose your job because of your political ideology, that's a problem. that's a problem. you have to take action on that.
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stuart: are there many conservatives in hollywood? i never think of hollywood as having that many people on the right represented there. are you telling me there are quite a few people who remain silent but are conservatives nonetheless? >> varney, since april, this state is more purple just in my short amount of time of observation, the plethora of conversations i've had privately, it's more purple than it is blue. the problem is, when you have a system led by abberant behaviors, we have behaviors that need to be put in check. i think it needs to be put in check, i hope it's put in check at the federal level. if i have to be on the job as a corporate person, i was terrified of getting tested. i didn't drink any alcohol, no drugs, no opiates, no nothing. i was terrified at having to take a blood test and lose my
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job because i was under the influence. to this day, i don't have a dui, i don't have a domestic violence, i have not been arrested, i do not have a criminal record but in the media, you would think that i am a criminal and that is a problem. one, we need to find out some kind of legislation where we can have the right to forget. whatever happened seven years ago like a credit, it goes away. two, we need to make these leaders here in hollywood accountable. one quick fix, make a mandatory test for drugs. i'm talking opiates, talking about cocaine, talking about heroin. if i have the privilege to drive and i can't drive my car under the influence, why are you going to run a studio or run any company under the influence? in my opinion. that's just my opinion. now, if we are here to make money, let's make money and let's be coherent in doing that. i'm a businessperson. but i don't want to talk to someone who is probably under the influence that is
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reactionary and that is emotional and that is spiritless when we are all trying to do one thing and one thing we are good at in this town is entertaining. all people want is to be left alone and be entertained. they don't want to be beat up. they don't want to watch anything that has political innuendo that will embarrass them in front of their kids. look at the history of the dynamic of what we're selling. let's start there. but more importantly, let's check the leadership. stuart: okay. i hear you. you know, you make far too much sense. we have far too little time for you. i regret that. you've got an open invitation. come back on this program any time because you make a lot of sense. mr. isaiah washington. thank you for taking time with us today. we do appreciate it. thank you very much. >> thank you. stuart: i'm varney, you're washington. works for me. cheers, my friend. >> hopefully my sense will make
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dollars and cents. that's all we want to do. stuart: absolutely. we see eye-to-eye. thank you, isaiah. i wanted to check something out now. there it is. that is the secret air force drone which has just broken its own record staying in orbit for 719 straight days. nobody actually knows what it's doing up there. ashley: it's not a secret. we're looking at it. stuart: you know what i mean. can't tell much about it. got more details for you coming up in a moment. first, elon musk's spacex getting one step closer to sending humans to mars. stay with us. we are talking space in a moment. ♪ liberty mutual customizes your car insurance,
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take your business beyond. stuart: on your screens again, can't see much, but that is the drone that set a record for being in orbit. 719 consecutive days, a world record, by the way. what's it doing up there? deirdre: what's it doing. it is going to be used for reusable spacecraft technology for america's future in space. i'm quoting the pentagon here. these are the only details they have given us.
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that's reason one. reason two this thing is up there, by the way, 29 feet long, low orbit operating experiments which can be returned to earth and examined. i don't know if they are growing plants. but it looks like a mini space shuttle. there are no astronauts aboard. you know, it's for our future in space, long story short. stuart: we don't know what it was doing but it was flying in low orbit all around the world. i can conjecture and i will. spacex's prototype rocket reached a new milestone. i'm told it reached new heights. ashley: it did. how high did it go? 500 feet. stuart: that's all? ashley: yeah. it's called a star hopper. first time they tested it, it went about 60 feet up. it maintained that height. this is quite fascinating, for one minute before very carefully and cleverly landing right back again. this is all part of testing of prototype of what will be the giant starship rocket that spacex is working on. it will be a monster rocket that
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will go into deep space both to the moon and to mars. but this is all part of testing the hardware with human technology. stuart: with humans on board? not on that one but when it goes to mars? ashley: humans and cargo. yep. stuart: can't wait. fascinating. huge farm show in illinois and take a look at this real fast. we have a tractor in front of you. the tires there are $12,000 each. stay there. we are taking that thing for a ride in a moment. ♪ i'm off to college. i'm worried about my parents' retirement. don't worry. voya helps them to and through retirement... dealing with today's expenses ...while helping plan, invest and protect for the future. so they'll be okay? i think they'll be fine.
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stuart: well, well, this is the high of the day thus far and we are still moving up a little bit. look at that, we are up 183 points. that's about .75%. couple of items in the news this morning. first of all, we've still got that inversion. that is, the two-year treasury yields 1.50%. the ten-year, 1.46%. not supposed to be like that. but that's an inverted yield curve. not hurting the market this morning. the other factor is seems to me that the president and the market and us both demanding, all of us demanding a rate cut by the federal reserve in the
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very near future. and i think the market believes we are going to get it. because now we're up close to, what, 194 points. there you have it. let's go to illinois. why not. where the largest farming and technology show is being assembled as we speak. grady trimble is there. show us what you got. reporter: all right, so we are showing off the best and brightest equipment right now, the greatest and the latest. this is just one of the things you can check out here. this tire right here is made by goodyear farm tires, i don't know what kind of car you have, stuart, but you might have had a goodyear tire on it at some point. this is goodyear farm tires. five feet wide, i'm 6'1" and it's as tall as me. this is just some of the things you can check out here. we are going to let him drive off and take off right now. i have zippy duvall here, american farm bureau president. while we are showing off the promising future of farming here, there's a lot of uncertainty in farming as well. the farmers who are worried about tensions with china, what are you hearing and what do you
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say to them to encourage them? >> we encourage them, you know, this president has made a commitment to stand behind our farmers. we very much appreciate that. but what we are also encouraging is the president find some end to this trade war and do it sooner than later. reporter: you said on this network a couple weeks ago before the trade war escalated that the farmers are hanging tough. how long can they do that? >> well, you know, that really depends. if there's more mitigation payments coming down the road to help them, they might stretch out a little bit but you see the difference in opinion across the country and it really depends on where financially your farm is. if you are on the edge financially, this is a very difficult time and you got to have it done today. reporter: especially out here in the midwest, stuart, one of the things they want to see is to get usmca passed. it's a different trade deal but nonetheless, it provides some certainty for the market. i'm going to try to hop in this thing. i will talk to you guys later. stuart: okay. we got that. yes. i would hate to see him drive
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off and have a problem. i don't think he will. let's stay on the farmers. i want to bring in tom kehoe with us in new york this morning, agriculture department trade adviser. welcome back to the show. we just heard from zippy duvall saying look, we hope the president can find an end to the trade dispute with china. at this moment, does the president have the fullbacking of farmers, politically, the full political backing of the farmers? >> mr. duvall is president of the farm bureau. whenever we hear the farm lobby in washington, that's who he is, that's a very very powerful organization. stuart: the farmers are hurting, tom. they are hurting. they want an end to this trade fight. >> but stuart, when he gets up on national tv on your show and says we hope that the president can bring this to a conclusion, he's still supporting the president. i think his words carry a lot of weight all across the country. every state has a farm bureau. new york state has one.
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they are all members of his organization. so he speaks with a lot of clout. all the u.s. senators and congressmen from those ag states, they are watching and listening to what he's saying. stuart: sure thing. but look, china knows that they've got leverage on america by going after the farmers. you got the first caucus in iowa in february of next year. iowa is a farm state. the chinese know that they can pressure the president and they are going to do it. >> they are going to try, stuart. look, i commend you for your comments after g7. you had a stunning soliloquy, a monologue about how the president came out of g7. he just upended everybody else. we never, i think i said this to you last time we met, we never had a businessman or negotiator of his stature in the white house in recent years. we have had other businessmen. he's a tough negotiator. he negotiates, look, they used to talk about richard nixon was
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an arm twister, and lyndon johnson twisted throats, because he knew how to get the votes in the senate. i'm not saying that's what the president does but he is a tough, tough negotiator. and he even said that on a couple of newscasts this past weekend. he said that's how i negotiate. stuart: you don't think, i'm not trying to word this correctly, that the president has a choice here. he could make a quick deal with china and they could buy a lot of our agricultural products. he could do that. that would help him in the iowa caucuses and it would surely help him in the election of 2020. would he do that solely for political gain? >> look -- stuart: or will he stick to his guns and insist on a really full deal? >> illinois, where your news feed's coming from, that ag show, produces over $8 billion worth of corn and $6 billion plus worth of soy and their biggest markets for the soy is china. so they know what's going on here, too. i don't think the president will do that. i think the president, you know,
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to his credit, i think he's going to steer the course. he has a different way of doing it, as i just said, and i think -- look, he's still an elected official. he understands, he can feel the winds, but as i said last time we talked, the world knows china games the system. everyone does. our banks look at what dudley, the former fed president said over the weekend. stunning. if he did that in china he would be in the jail right now. they would never hear from him again. it's a different dynamic. if someone like dudley can go on international news and turn the financial markets on their ear because of who he was and still is, and because it's a free country and we have freedom but -- in hong kong he could do it, too, but he couldn't get away with it in beijing. they would never hear from him again. i think the president will stay the course. i think the farm people are still in his corner and the deal he made with shinzo abe, if you
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remember, abe said we will buy the corn. i think the excess corn will probably go to japan. the difference is, china's writing the check if they buy it. it's going to be private companies in japan and i think that's better for the farmers, private companies, than dealing with the government. stuart: you are a straight shooter. we appreciate that. >> thank you for having me on. stuart: see you soon. thank you. next case, looks like we've got what i might call a socialist spl slap-down. in one corner, bernie sanders in an interview yesterday threw punches at andrew yang's universal income plan. roll that tape. >> i think most people want to work. they want to be a productive member of society. i think it's a very deeply ingrained feeling that people have. they don't want to sit on the side. yes, of course getting a guaranteed income is better than having nothing and sleeping on the street. that's for sure. but i think people want to be rt of our humanity, to be truthful and how we feel good about ourselves is when we are productive members of our society. stuart: that's interesting.
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he's slamming universal income program from andrew yang saying look, we want to work as opposed to just take the money. countering what bernie sanders said, we have andrew yang with a tweet. here it is. bernie ignores the facts that money in our hands would, one, create hundreds of thousands of local jobs and two, recognize and reward the nurturing work being done in our homes and communities every day. he also assumes that everyone wants to work for the government which isn't true. i think we need an umpire or referee, call it what you like. kelly sadler will do, america first action pac director of communications. all right, on the one hand, bernie, on the other side, andrew yang. who won? >> oh, my goodness. well, there's one thing i think that we all can agree on and that is the dignity of work. we are so lucky right now, stuart, to have the president of the united states oversee like an era of prosperity where we have more job openings today than we have workers to fill
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them. stuart: kelly, hold on a second. you realize what you have just done? you just come down on the side of bernie sanders. bernie sanders was going after this universal income program and i think he was very successful in doing it and you are backing him. you are backing a socialist. >> bernie sanders made some sense there. where he doesn't make any sense is with this socialist revolution and trying to make sure that everyone has guaranteed employment by the government. i mean, that is precisely wrong. it is the open markets, it's capitalism, it's entrepreneurship that provides employment. andrew yang is giving, i don't know much about his platform other than providing $1,000 every month to everybody, taxing google or facebook or whatever for it. stuart: i would call that politically very powerful. if you are going out there and saying you vote for me, and i win, all of you get $1,000 a month, no questions asked. you just get the money. >> free, free, free.
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stuart: there's a lot of people who would vote for that. it's attractive, isn't it, for a lot of people. >> it's attractive especially for the youth. i think this is where you have andrew yang and bernie sanders competing for supporters. the youth vote is up for grabs and they are very attracted to the free socialist, you know, ideals that bernie sanders is proposing as well as getting, you know, $1,000 a month from andrew yang. unfortunately, both of these proposals would uproot our current economic system and the prosperity that has been unleashed because of president trump's policies. stuart: you are correct, kelly sadler. correct indeed. thank you very much indeed. great to have you with us. tom kehoe, straight shooter, still next to me. he wanted to get into this. i'm so sorry, tom. i'm so sorry. next case. soccer star carli lloyd getting interest from nfl teams after she kicked that 55-yard field goal. is the nfl ready for women players? we've got the perfect guest to ask that question to. his name is joe theismann. even i know him.
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nfl great. does he think the nfl is ready for women? we'll ask. and we have to ask him about the gronk. no, not the gronk. just gronk. mr. gronkowski. did i get that right? got it. he's getting into the cbd industry. now, the nfl's got really strict marijuana policies. how is that going the fly? we are talking all things sports with super bowl winner theismann next. you get it all on "varney & company." money, politics, space and sports. what a show. and tom kehoe. ♪ so are you feeling?
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stuart: this is happening now. want to get it to you real fast. the feds have raided the home of a top official at the united auto workers union. ashley: yeah. they are executing a search warrant at the home of uaw
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president gary jones. this is part of a widening investigation into allegations of corruption at the union's top ranks and also, this comes as the union is trying to negotiate new four-year contracts with auto makers in michigan. so an interesting development. this has been ongoing and now we have a search warrant executed at gary jones' home, who he's the head of the uaw. stuart: you got it first right here. thank you, ashley. carli lloyd, remember, soccer star, we keep showing you this, kicked the 55-yard field goal at the eagles practice place the other day. now, one nfl team has actually offered her a spot on the roster to kick in a preseason game. joe theismann, legendary former quarterback for the washington redskins, is with us now. what are your thoughts on this? a female, a woman kicker? >> i think it's great, stuart. i think it's an opportunity. we have female referees, we have women on the staff as far as
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coaches go. why not give her an opportunity? i think she's going to have to shorten her stride a little bit. she takes a few more steps than kickers get a chance to. but i think it's a great opportunity and if she does it obviously the last preseason games are coming up this weekend, but i'm sure next year, someone will give her an opportunity to be able to try. i think it's wonderful. stuart: what about another position on the field? not a kicker but actually on the field, pads and all. if it was a woman. >> i think it would be a little bit more difficult at other positions. you just don't know how a woman's going to be able to handle that. i mean, some of them may be able to. it would be one of those things where i think the league would have to look a little bit further into that situation with another position. but as far as kicker goes, i can see it happening next year in preseason. stuart: okay. talk to me about gronk. former patriots guy. he's getting into cbd business. first of all, hold on a second, here's what he's saying about it. this is gronk. roll tape. >> i want to be clear to my
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fans, i need it to recover. i was not in a good place. football was bringing me down and i didn't like it, and i was losing that joy in life. stuart: the man is getting emotional there. how is the nfl going to react to this? because they banned cbd and thc. >> well, at this point, there's two separate things. thc and cbd. i actually am involved with a company, we have a product coming out that has cbd in it. i can tell you, i use it and it's made a difference in my life. it's taken away the pain and the aches and it just changes your life. i think the nfl is moving more and more towards, away from the opiates to be able to help players and towards something else that may be able to give them relief and an opportunity to be able to go on. i can understand what gronk's talking about. we saw andrew luck retire because of dealing with so much pain. i can tell you, what i have been using makes a world of
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difference for me. it really, really makes a difference. i'm not doing a commercial. i'm just telling you something that's made a difference that has cbd in it, in my life. i can certainly understand where gronk's coming from. stuart: let's see if the nfl turns around on this. one last one. a new study says that kids are not playing high school sports like they used to, participation dropped in the '18-19 season for the first time in 30 years and it was especially football that took the hit. why? >> i think part of it is the parents are concerned about cte, they are concerned about injuries in the world of football. football, everybody knows it, it's an easy sport to attack and an easy sport to go in. i say to parents, you want your kids to participate in extracurricular activities. if they're not going to be involved in football which i think has great qualities for life going forward, what would it be? they will say soccer. what do you hit with a soccer ball? your head. as far as lacrosse goes, you have a stick you are hitting
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people with. hockey, it's the same thing. there's a lot of things out there that involve the head, involves kids, and i think parents need to just take the time to do the research. football provides so many wonderful opportunities to be able to learn, to be able to grow, to be able to win, to be able to learn how to lose, all those things are a part of football. i certainly understand the concerns of parents. i just suggest strongly that they do the research before you make a final decision on whether you want your son and/or daughter to participate in those sports. stuart: well said. joe theismann, thanks very much for coming back on the show with some important stuff to discuss. mr. theismann, thank you very much indeed. >> always love to be with you. stuart: see you later. ransomware warning from the feds. they say hackers could lock up our election system. are we prepared for that? we will talk to somebody who knows. oh, look at this. we have a new high for the market. now we are up close to 200 points on the dow. 195, to be precise. 25,900 is where we are.
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stuart: i'm sure you heard about this. young lady, 16 years old from swed sweden, wants to do something
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about climate change so instead of flying to new york for the climate summit at the u.n. next month, no, no, no, she's taking a yacht across the atlantic to save on emissions. is this 16-year-old young lady now the leader of the climate change movement? deirdre: she is definitely the face and the voice. she has been lauded at davos. she will be participating in this climate action summit in new york city in september. u.n. climate conference. i see you making faces but listen, this young lady is 16 years old. she is putting her money where her mouth is. this girl is sailing across the atlantic during hurricane season, i might add. stuart: she actually leads the flight shaming movement, doesn't she? ashley: she does. deirdre: but there's a lot of 16-year-ol 16-year-olds wasting her time on this and whether you agree with her or not, there she is. stuart: we must do the kow-tow. deirdre: not necessarily. stuart: bottom right-hand corner of the screen, the dow is up 200 points. now this.
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ransomware, piece of software hackers can use to lock up your data. only way you can get it back is pay them some big bucks or bitcoin. election officials are getting worried. hackers could set their sights on voting machines in 2020. tech watcher oz sultan is with us now with sultan interactive. so is our electoral system vulnerable to ransomware hacking? >> well, the board of election systems are vulnerable. some of the state systems are vulnerable. so what that could mean is in areas where you are running the diebold systems, the back end could be vulnerable meaning the data doesn't necessarily get to these, it shuts down voting and then there's the data bases we have to worry about. the way that ransomware spreads oftentimes is someone clicks on an e-mail that's innocuous but then it hits an entire system in an office. we have been on the show talking
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about several cities where it will just go through and knock out entire services. this is where i think the president's gotten involved. the money seems to be allocated now, there was an order pushed through or mandate pushed through and the next steps are getting this fixed. stuart: to fix it, though, you have to get rid of those old computer systems that are still run by some electoral districts. >> you have to update. it's more updating the software at this point, patching things, making sure things are secure, making sure your firewalls are secure. stuart: it's a horrible prospect. it could change the results of an election. you could halt the election. you could interfere with the proper ordering of an election. that's a catastrophic thing if it happened here. >> it's a big risk. the russians have been very active on this. i do think a lot of districts, this goes back to 2017, if they don't think these systems are secure, they may go back to paper balloting. but then there's other risks there, depending on what kind of paper balloting they're using. we don't want to be talking about hanging chads again. stuart: no, we do not. that's the truth. but you think this is manageable
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given the money, given the president's impetus here, you think this can be fixed before 2020? >> given the money and the time frame we are talking about now, this can be fixed. i think that the remediations for paper balloting are solid. but this is something that we need to be constantly vigilant about. it's not just voting. it's all other state systems. stuart: got it. oz, always good stuff. thank you very much indeed. appreciate it. thank you, sir. now, we have an update on that diamond heist we showed you the video of yesterday. the thieves got away but it was not easy. we will tell you all about the getaway in a moment. ♪ hmm. exactly. liberty mutual customizes your car insurance, so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ you wouldn't accept from any one else. why accept it from your allergy pills?
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neil: saw this. showed it to you yesterday. the diamond heist of "the diamond district." they had a problem getting out of there, the gett way. >> they couldn't get a cab. for all the things they did
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plan, you see hats, see wigs, disguyses. tied these people up. got away with four million dollars worth of jewelry from 47th and 6th right here. no one would pick them up. the post says clear how they vanished. seen running eas street. they maybe ran east and got a cab from somewhere else. they could not get a cab -- stuart: maybe they were waving their guns. maybe the disguise was so ridiculous with the wigs. >> what is fascinating they didn't plan a getaway car. >> they have the hats, wigs, everything going. ashley: but the getaway. stuart: you go through all of that. scope the place out. walk away with four million bucks worth of diamonds. >> you bother to tie up workers. shove them in a corner, basically in a closet. you have done a lot of work here. stuart: you didn't get a getaway car. ashley: no, you said you would
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get the car. >> like a old rocky and bullwinkle cartoon. stuart: "diamond district" keystone cops. could be. could be. our time is up. time for my colleague, neil cavuto. it is yours. neil: stuart, thank you very, very much. we're focusing on a tale of two storms. one about to wallop puerto rico. dorian may become a hurricane within the next hour. now what happens? federal agents raiding home of united auto workers president gary jones. we'll bring you the latest developments there, what they could be up to or maybe not up to? very confusing. the dow is up 187 points. a lot of factors gyrating wildly. optimism on the trade front, that might be a bit premature. this has more to do with energy, energy components


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