Transcripts For FBC Varney Company 20240714

The dow is going up another, what, 140 points plus when trading begins today. Its another big gain for the dow. Also for the s p. Look at it go, up another 17. The nasdaq, that looks like its going to be up another 1 . The win with mexico and the feds likely rate cuts, thats whats driving this thing. So, too, is the news early this morning that Small Business confidence has come roaring back to historic highs. That survey was taken in may, when everyone had the jitters about trade wars. Small business ignored the noise. They are investing, theyre selling and theyre hiring. All good stuff. Theres also this. Gas prices are tumbling. The National Average is down to 2. 73 and falling fast. That is another shot in the arm for the economy. I think its helping the market as well. Watch out, iowa. Here comes the president and his current leading challenger, joe biden. Looks like a setup for the 2020 election. Iowa farmers will be listening to mr. Trump after his win with mexico. Joe biden will be playing a little catchup. The latest poll of Iowa Democrats shows he has slipped a couple of points. Will he fight off the socialists today or join them . Watch out, iowa. Big show coming for you. Wait until you see what the president is saying about the fed now. Varney company is about to begin. Stuart lets start with sports and the nba finals. Golden state warriors play a kevin durant injured in game five last night against the raptors. This is a big deal. Ashley it is a big deal. Warriors star forward had been out for a number of weeks with a calf injury, had not taken part in the nba finals to this point but they said look, they practiced, the medical staff gave him the okay and this is what happens. Second quarter, he was having a great game, already had 11 points and then he goes down. Now, the fear is an achilles. It wasnt a calf, it was an achilles and the fear is mri which will be done today will show a torn achilles tendon. That is a very long recuperating period on that. It could be 200, 300 games before he plays again. Could wipe out next season. Stuart could wipe out next season . Ashley depending what the mri shows. Its such a big blow to golden state. Hes such a big part of their team. The warriors won last night despite him going out in the second quarter. Toronto lead 32 in the finals. A big blow to golden state. A real shame. Stuart thank you very much, ash. Lets get straight to iowa. Joe biden and President Trump both stumping in that state today. You better look at this poll from the Des Moines Register and cnn. Biden 24 and that is down three points from the last time the poll was taken. Sanders, 16 . Warren, 15 . Buttigieg, 14 . Joining us, chris bedford, editor in chief of the daily caller. Biden losing some ground in iowa. Could you say, would you say hes struggling . He could be. There are warning signs there because his campaign has had a couple of the oldfashioned biden stumbles everyone had been predicting would come around this time. They come around every time he runs for national office. But hes still in a very strong spot in iowa. Heres one of the things he has to worry about, though. Iowa caucuses lean to the extremes. The Republican Caucus is going to give you rick san totorum ord cruz and the Democratic Caucus is pretty far left. Thats not the lane joe biden is trying to make for himself in this primary process at all. It does leave a lot of room for someone like sanders or warren or buttigieg who are gaining right now to win. Stuart its an interesting preview of what may be the 2020 election. Its also a contrast in styles. I dont want to get too far into it but the president is the energizer bunny, the man never runs out of energy, and hes labeled his opponent sleepy joe. I think you are probably going to get a contrast in styles tonight. Yes, absolutely. One of the things biden is really going to have to do, what hes going to have to show, is hes got the energy to do it because right now, the rumor is hes a lot older or the fact is hes a lot older than most of the other candidates hes running against and he hasnt shown he has that energy. I think hes going to be riding high into the debates and those debates then will be a great referendum on how well he does and if he can convince the people hes their candidate. Stuart why is iowa important for the president . The president is there right now because its a place where all the democrats are, but also, iowa is a state thats one he worked hard to win. He didnt actually end up winning but he always said he would come back. I think iowa is leaning strongly republican for trump in 2020. Its some place the republicans won in the last election, midterm election, while taking losses elsewhere and its also been a place thats done well under President Trumps economic messaging and under his economic policies. Their unemployment is incredibly low, manufacturing is up and despite some of the farm problems and all these rumors that the farmers are turning on the president , every indication is that they are not turning and i dont know a single congressman in iowa getting phone calls from his constituents saying get rid of the tariffs. Stuart can you imagine, we are 18, 19 months away from the actual election itself and we are still engrossed in it all that time. I love it. I just do. Chris, thanks for joining us. See you soon. Thank you. Stuart back to your money. Look at this. You really have to take a look at this. Extraordinary stuff. After six Straight Days of gains, we are going into the seventh trading session and what have we got . A gain of another 150 points. Plus, this morning we got this read on Small Business optimism. Very strong, returning to the highs of what is it, october of last year. Thats despite all the headwinds from tariffs and the trade war. Come in, ed collins, author of the great book which i actually use for information. The upside of inequality. I love that title. You are really going against the grain with that one. Okay. Now, then, Small Business optimism, do you read much into that . I do. Yeah. Oh, i think thats definitely a good sign, whenever you see that, i think its an indication we will see good times ahead of us for the next couple of months. Im not surprised theyre not afraid of all this negotiation on trade because even paul krugman says, you know, hes won his nobel prize in trade, says these tariffs just dont have that big of an impact on the economy. Stuart wait, wait, wait. This is a revelation. Krugman failed to take advantage of tariffs, failed to criticize the president on tariffs . Krugman . He won his nobel prize in trade. I dont think he can bring himself to just blow smoke on that one. He has agreed in his blog many times this is just not as big as the market reacts to it. Stuart that explains Small Business taking no notice whatsoever of the trade wars and just expanding. I want to talk to you about the fed and President Trump. He sent out a tweet this morning, i will read just part of it, the fed, Interest Rates way too high, add it to ridiculous quantitative tightening, they dont have a clue. Want to take that one on . Is he right . You with him . Well stuart no, youre not. I think his argument is quite defensible. Let me put it that way. I will leave aside my fear of loose money and leave aside my belief the fed doesnt really have that much impact over Interest Rates. Did they raise rates and have a very negative reaction by the market and had to back off, clearly they did. Does that encourage imports, encourage trade deficits, it absolutely does. From that perspective, i think hes right. I also think hes playing a clever little game here which is he wants to be able to threaten china with tariffs and if that leads to slowing of the economy and the fed then cuts Interest Rates, that allows him more negotiating leverage because while the tariffs might slow the economy down a little bit or at least worry the economy, the rates will increase optimism so that will give him more room to negotiate with the chinese. Its clever. Stuart hes making sure the feds got his back. Thats what he wants. Stuart the economys got his back. Yep. Stuart the republicans largely have his back. Yes. Stuart hes going into the china negotiations with a strong hand. I think thats right. Yes. Stuart i think theres going to be a very limited deal. What do you say . Im not sure i know the answer on this. But i would say its hard to believe it can be anything more than limited. If it gets too big, the chinese are just gog ing to cheat anywa. Stuart its also hard to believe they both walk away with nothing happening. I cant see that. I think chinas economy has taken more of a hit from this than ours certainly has. They have slowed down, they have to be worried about this. I do think they are looking for a way to solve it. Stuart got it. Thank you very much for being with us as always. Thank you, sir. Why didnt we look at beyond meat. The stock is down 19 bucks, thats 11 . Jpmorgan downgraded the stock saying it is beyond its price target. I would like to remind everyone that that stock went public on may 2nd at 25 a share. What are you looking at, about 35 days ago it went out at 25. Its now at 149, down 10 from yesterday. We will check beyond meat throughout the program. Lets get back to futures. Why not. The markets going up again, up 140 on the dow and look at that nasdaq. Another gain of about 1 . Its on a tear. What a day to be watching the markets. Alexandria ocasiocortez wants pay raises for members of congress. Stay there, please. Wait until you hear her reason for that. The humanitarian crisis in venezuela, much worse. People waiting days to get gas. One man was killed while he waited on line. More on that terrible story for you. And a real bombshell out of north korea. Kim jonguns halfbrother was reportedly working with the cia before being killed with a nerve agent at an airport in malaysia. We cover it all. Varney company just getting started. Going back to the doctor just for a shot. With neulasta onpro. Patients get their day back. To be with. Family. Or just to sleep in. Strong chemo can put you at risk of serious infection. In a key study. Neulasta reduced the risk of infection from 17 . To 1 . A 94 decrease. Neulasta onpro is designed to deliver. Neulasta the day after chemo. And is used by most patients today. Neulasta is for certain Cancer Patients receiving strong chemotherapy. Do not take neulasta if youre allergic to it or Neupogen Filgrastim . 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In fact, thats why he was in kuala lumpur on that day to meet a cia operative because he had lived a lot of his life outside of north korea. In fact, in the chinese enclave of macao. They felt it was one way to try and get a sense of what was going on inside north korea was to make contact with him and see what information they could get from him. The problem with that, of course, is other countries would be doing exactly the same thing, including china. Ultimately, it was kind of believed he wouldnt have great information because he was not connected to the power base in pyongyang because he was outside and living a life outside of north korea. However, he was used for awhile there as someone who could perhaps provide interesting information. Stuart fascinating story. Ashley yes. Stuart you see what goes on way, way, way beneath the surface. Ashley in the shadows. Stuart ash, good stuff. Thank you. Look, in venezuela, fuel lines, nou about this, fuel lines getting longer. They are miles long. You wait days to get a gallon of gas. One man was actually killed on that kind of gas line. I want to bring in Mary Anastasia ogrady, who covers venezuela for us. It just keeps getting worse and never ends. First of all, as you know, because you are a businessman, shortages are caused by price controls. Venezuela has price controls on gasoline. Its super cheap. So you are always going to have shortages when you have basically, when you are giving gasoline away for free, you will have long lines. Now, as far as it never ends, as i told you, repeat after me, the cubans are not leaving. They are not leaving. Stuart so use force. Get the guns out. You have written about this. Okay. Theres two things you can do. Number one, on the communications side, i think theres a lot of covert stuff that can be done by not only the u. S. But its allies in the region to basically begin breaking up the control that cuba has over the cyber space in venezuela. Thats very important. This is a regime that stays in power because cuba has control over all of the Communication Networks. We should work on breaking that up. As to using force, i think the only way we use force is using venezuelans. Theres a lot of venezuelans outside of the country, they say they are ready to fight, so yeah, i agree that the allies, the allied powers, the u. S. And its friends in the region, could try to train those people to go back and make strategic strikes, basically try to weaken the regime. Short of that, by the way, short of that, nothings going to happen. Stuart is venezuela still shipping oil to cuba . They are. Stuart why dont we stop that . Well, we need ships and basically that would be an act of war if we started intervening those ships. Im not saying we shouldnt but im saying, you know, the Trump Administration has not been willing to do that. I think before we try to do that, again, we should work on breaking up the Communication Networks which is technology and you know, control over cyberspace and those kind of things. Stuart havent we started to do that . This has been going on for a long, long time. You know, the Trump Administration is very reluctant to get involved in foreign wars. He ran on a platform to say we are not the worlds policemen. I think there is some logic to that, because you know, the problem in venezuela is not just about getting rid of maduro. Its about rebuilding all the democratic institutions. This will be a huge project. If we go in there and you know, use force, yeah, we could get rid of maduro. Are we willing to stay for years to fix this country that has been so dysfunctional that it brought about this guy to power . And you know, basically, i would remind all of these people who are wringing their hands and crying about this, that they were actually supporting hugo chavez as he consolidated power. Why . Because he said im going to end corruption and im going to make people equal. Remember that . That was why everybody cheered him on. Not everybody. Stuart not everybody. Not us. But many people in the International Community cheered him on, you remember jimmy carter famously went down there and did lots of photo ops about how he was going to, you know, make things more fair in venezuela. So they have a lot to answer for. Stuart its communism is a cancer of latin america. Yes, and you dont cut it out very easily. Thats the problem. Stuart but you try hard. Dont you. I knew you were with me. You have to be smart about it. Raw power is not the way to fix this problem. Stuart next i will be a warmonger. It will be all over the networks. Thanks very much. You better take another look at futures because it looks good, up six days in a row. 1300 points up for the dow. Look at this. We are going to go up another 150 at the opening bell which is about ten minutes away. Well be right back. Is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. Every day, invesco combines ideas with technology, data with inspiration, investors with solutions. Because the possibilities of life and investing are greater when we come together. Can the past help you write the future . Can you feel calm in the eye of a storm . Can you do more with less . Can you raise the bar while reducing your footprint . For our 100 years weve been answering the questions of today to meet the energy needs of tomorrow. Southern company stuart President Trump tweeting about fox business again today and mexico. Maria, dagen, steve, stuart v, when you are the big piggybank other countries have been ripping off for years the a level that is not to be believed, tariffs are a great negotiating tool, a great revenue producer and more importantly, a powerful way to get to get companies to come to the usa and to get companies that have left us for other lands to come back home. We stupidly lost 30 of our auto business to mexico. If the tariffs went on at the higher level they would all come back and pass but very happy with the deal i made. If mexico produces which i think they will, biggest part of deal with mexico is not yet been revealed. China is similar except they devalue currency and subsidize companies to lessen effective 25 tariff. So far, little effect to consumer, companies will relocate to the United States. Okay. Theres a long triplepart tweet. In essence, the president is saying i played hardball with mexico and i won. It worked. Hard trump worked and we are also going to do the same with china and it will work again. I think thats the gist of the tweet, three tweets from President Trump this morning. We are glad the president is watching this show. Next, the market. Are we going to do aoc . I dont think we have time. Aoc wants a pay raise. We will tell you about that later. Bottom line, this market is going up again. Look at that. Up 150 for the dow, 60, 70 points for the nasdaq. The rally continues. Follow it with us after this. Everyones got to listen to mom. When it comes to reducing the sugar in your familys diet, coke, dr pepper and pepsi hear you. Were working together to do just that. Bringing you more great tasting beverages with less sugar or no sugar at all. Smaller portion sizes, clear calorie labels and reminders to think balance. Because we know mom wants whats best. More beverage choices, smaller portions, less sugar. Balanceus. Org 2,000 fence posts. 900 acres. 48 bales. All before lunch, which we caught last saturday. We earn our scars. We wear our work ethic. We work until the works done. And when it is, a few hours of shuteye to rest up for tomorrow, the day well finally get something done. stuart i have a bee in my bonnet about lower gas prices. Lets start with oil. 53 a barrel this morning. Now look at gas. National average is 2. 73, down 11 days in a row. I want to bring in patrick dehon from gas buddy because i think gas is going to 2. 50 a gallon, National Average, by july 4th. What say you . You said it, stuart. I think its going to happen. I think youre right on par. I think 2. 50, maybe in the upper 2. 50s but we will give you victory there. I think thats certainly within the cards at this point. Stuart if the National Average is 2. 50, could we see 2. 20 or below in some parts of the country . Is that possible . Oh, i think it is, especially given that three states have a few stations under 2 a gallon already. I think its certainly within the realm of possibility that some of those low price states, south carolina, texas, oklahoma, alabama, could get there. In fact, mississippi, the cheapest state average is 2. 29. About a dozen stations under that 2. 50 a gallon mark already. Stuart we just love to hear it. Gas buddy guy, thanks for joining us. Glad you agree with me. 2. 50 by july 4th. Stop laughing. Ashley im with you. I like it. Stuart i have to shorten things down. We are off and running. Look at that. I see a lot of green, lefthand side of the screen. I see the dow up a half percentage point, 125 points. Not all of the dow 30 have opened at this point. We are looking at a very solid gain for the dow. Show me the s p 500, please. I think that will be straight up as well. Yes, it is. Even better percentage gain, up twothirds of one percent. The nasdaq up a full 1 . 7,900. 81 points higher. Quick check of the tenyear treasury yield. Whoa up to 2. 17 this morning. That yield is skyhigh. How about the price of gold . I got a buck says its down. Yes. My dollar is right. Its down to 1327. Again, the price of oil this morning is 53 per barrel. Gas prices are tumbling. We have a riproaring market to cover this morning. I need help. Mike murphy is here, d. R. Barton is here, jackie deangelis, ashley webster, of course. Looks to me like this market just wants to go up. We are in that mode again, murphy. What do you say . We are in that mode. Stuart you got it right. You got it right. Thank you. We had a selloff, we have a recovery, now we have more money coming back into the market. Stuart, you showed the rates are just over 2 . Money needs to be invested in the market. We can control, if mexico comes off the table, if china comes off the table, a big if, but if it does, you have a market going back to old highs and creating new highs. Stuart i dont think chinas off the table. But i do think its delayed for another couple of weeks. I think part of this, in addition to mexico and the fed backstop, the fed backstop is huge, that weve got the date to look at now. Investors and traders are going okay, g20, i can kind of wait to see what happens until g20 and concentrate on some other stuff, and stuart, the december 24th bounce, this bounce we got from last monday, these are necksnapping turnarounds. These markets have been going down and boom, all of a sudden up seven days in a row. People want to be involved. Theres a fear of missing out. People want to be involved. Stuart fear of missing out. Fomo. Like you. Stuart okay. Look at the dow again, please. We are only two minutes into the session but up 176 points. Twothirds of one percent, well above 26,200. Lets have a look at big tech. You got to follow them. They are coming back okay. Facebook is up this morning. Apple is up 195. Microsoft has reached 134. Wait a second. The House Judiciary Committee is putting i think google and facebook in particular under the microscope for anticompetitive behavior. Thats google and facebook. They are both up today but would you buy them with this antitrust thing hanging over them . No, i do own facebook. I still own facebook from about 100 and im hanging on to it. I wouldnt be adding here. I would not be buying google. I think the head winds against those make them less attractive than some other big techs that will continue to do well. Amazon is going to come under scrutiny. They are going to come out clean. I dont think theres any way you start breaking amazon up. And your beloved microsoft i think are the two places i would play in big tech. Stuart beloved is a little strong. I draw the line there. Would you buy google or facebook now . I would not. I sold facebook as we discussed. I own google. Im holding google. I wouldnt put new money to work there. Microsoft is the place you want to look. But im looking for the next big tech. Whats the next company thats out there right now that we are going to be talking about big tech. Stuart share it with us. Who is it . I believe its uber. We bought uber. I think uber can compete headon with amazon. Stuart whats wrong with uber at the moment . Because its not recovered to its ipo price. It went out at 45 and uber right now is 43. Whats wrong with it . It got over 45 on friday, then there was the announcements of some high level executives leaving the company. The market is concerned with uber right now that they are losing money, but i think they can get past that and look past that and go higher. Stuart uber eats is an absolute dynamo for them. How much is it, billions and billions, whatever it is . 10 billion worth of food they sold. Ashley and growing all the time. Stuart you bought it, right . At 38, 39 . Right around 38. Stuart and i didnt. Got it. Two stories on amazon. First of all, its ending its Restaurant Delivery service. Jackie, trying to compete with uber eats, didnt work . Jk i think a lot of people are surprised by this. This experiment started in 2015 in limited markets and i think they are a late mover in this. People are creatures of habit. They are used to grub hub and uber eats. Its hard to sort of get their head around using another Service Using amazon for this particular fact so amazon saying this isnt really working for us. We will abandon it. Obviously theyve got their hands in many other baskets right now. Stuart you dont hear very often of an amazon failure, do you . You dont but i will give you one thing. Amazon is also investing in my world in Venture Capital in early stage startups. They just amazon led the investment round for deliveru, a Food Delivery Service in england. Ashley the uk. This business, amazon right now, its a low, low margin business. Everybodys buying market share. Year over year, stuart, the number of meals delivered, up 51 . So theres lots of room to grow but heres an interesting tidbit. New york sells three times more per capita than anywhere, then number two l. A. Thats unbelievable. Stuart look on your screen. Grub hub up 8 because amazon dropped out. They had such a tiny share of the market. This is just investor reaction. Stuart when amazon leaves your industry ashley when they join it everything goes down. But when they leave. Stuart another story on amazon. This i find fascinating. They are launching their own credit card to help people with bad or no credit build their scores. Is there an ulterior motive here . Give them a credit card, they can shop at amazon . Absolutely. The card we are talking about, you put money in, so you are putting a deposit in and you can spend up to that deposit. Ash was talking before the show, if we spend more than what you put in on the deposit, then they get a little bit of interest. How much . 28 interest on anything that you go over. But it can actually help people build credit and it is brilliant for amazon to back people with poor credit so they get more customers coming in the door. What amazon is doing a great job of is looking at startups, seeing what they are doing and trying to get into that space. We invested in a company doing the exact same thing as this, giving credit cards to the underbanked. They are not asking for a deposit up front. Amazon is almost pictureperfect copying the business model. But they are not small enough. It doesnt move the needle enough for them. I think this is a huge market but i dont know if amazon wants to be playing there. Stuart we are now seven minutes into this session. The dow industrials are up about 140 points as we speak. Thats a half percentage point. This is a rally across the board. H r block raising its dividend. They are buying a Small Business platform called wave financial. Market kind of likes it, up 1. 7 . The retailer chicos gave a not so rosy forecast. Sales missed the mark. So what . Its up 8 . Go figure. Dress barn, their parent reported flat sales. Remember, dress barn going out of business. They are closing all 650 of their stores. The stock is 1. 05. Thats all youve got right there. Beyond meat. I really want to talk about this. A victim of their own success. Theyve got a downgrade from jpmorgan. The stock has been flying high for the past couple of sessions. Okay, its down 11 but its at 148. What did it go public at . 25 . And now its 148. If anyone sitting at home watching the show, do not fomo. No reason you need to go out and pay 8 billion or 10 billion for beyond meat. If you own it, feel free to take a profit but you dont need to chase this stock because its had this massive run. Stuart i dont know about you, murphy. I dont spend 8 billion or 10 billion on anything. Im saying as an investor, you dont need to invest in the company with a valuation of 8 billion to 10 billion. Stuart oh, okay. Let me reiterate, if you own it, sell it. Yesterday i had a friend call who bought some for his son and i called him at 10 00 a. M. At 184, i said get out of this. To his credit, he got out in the 170s. He got out with that money. Markets hate these parabolic rises. They are coming down. You can buy this a whole lot cheaper. Stuart your friend now has to pay a heavy duty Capital Gains tax because it was a short term capital gain. You will pay ordinary income tax rates. Is he wealthy . He will pay 35 , 36 . Thats better than if it drops 50. Stuart whatever you say. Where are we now . Did i see tesla on the screen a moment ago . Yes, i did. Tesla is up five bucks this morning. Thats 2. 5 . What happened . I thought couple of analysts changed their mind. Jpmorgan analysts said in a worst Case Scenario this stock could plummet to ten bucks. Says in his latest note you know what, the weak demand is largely temporary. Theres a couple analysts who say they have looked at the numbers, the demand in europe for tesla is very, very strong. The number of cars delivered in april and may are more than during all of the first quarter. In other words, things are starting to improve according to some of the analysts. Of course stuart wouldnt touch it with a tenfoot pole . Im skeptical. I dont really trust the financial picture there. If you love the product, had a big pullback. Stuart 9 40 eastern time. You know what that means, murphy and d. R. Out of here. Thank you very much. We have lost some of the rally. We are still up triple digits, still a gain of 100 points. We were up 160. But well take 103. 26,165. Nasa wants to send tourists to the space station. All you need is 50 million. In our 11 00 hour, we will talk to the head guy at nasa. I want to know why they are doing this and if they have gotten any takers thus far. Team usa played its first game in the womens world cup today. In our next hour we will talk with kilmeade. He knows a lot about this. Does he think we will win it all . Uber kicking off a twoday summit in washington today. Its all about their plans for aerial ride sharing. They want to use flying cars to transport people. Next, we will hear from the head of ubers aviation program. We have got him on the show. Did you know that americans that bought gold in 2005 quadrupled their money by 2012 . And even now, many experts predict the next gold rush is just beginning. upbeat music [announcer] today the u. S. Money reserve announces the Immediate Release of u. S. Government issued solid gold coins for the incredible price on screen. These Gold American eagles are official gold coins of the United States and are being sold for the price on screen. Pick up the phone and call americas gold authority u. S. Money reserve. With nearly two decades in business, over a billion dollars in transactions, and more than a half a million clients world wide, u. S. 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We were up 106 at the open, then just 103, now back up to 130. The dow up half a percentage point. Its a rally across the board for the seventh day in a row. Lets get to d. C. , where it is day one of the uber elevate conference. This is all about flying cars. Susan li is there for us in the middle of the action. Some big names at the conference. Susan, come on in and tell us what did you find out . Susan okay. This is day one, yes, we will talk about flying cars but we do have elaine chao here to talk about regulation, getting from point a to point b and also Dara Khosrowshahi will be here as well. We have been talking about mobility on the roads, whether its cars or scooters but i want to show you what they Just Announced today. Flying cars and taking to the skies. How cool is this . This is probably one of the new taxis that will be launched, hopefully into commercial use by the year 2023 in conjunction with bell technologies. They will start test flights next year in los angeles, dallas and one more International Market that they havent announced just yet. But this is the future of mobility. We are taking to the skies. Yes, we will still be sharing our rides with individuals but look, getting from point a to point b in very crowded urban metropolises like new york will get a whole lot faster and easier. Stu . Stuart did you ask your guests, the people you have been talking to, did you tell them about the new york city helicopter accident yesterday . Because thats kind of relevant to what they are trying to do. Susan absolutely. We talked to uber elevates head eric allison this morning and talked about safety and how important that is. Given the images we saw yesterday in new york city with the helicopter crashing into a midtown sky rise, how safe can you make this . So safety is absolutely the Bedrock Foundation of this whole thing. Thats actually one of the Amazing Things with this technology, that its called distributive electric propulsion so you could have multiple rotors that can all Work Together and any one of them can fail and you still have a vehicle that is safe to be able to operate. Susan yeah. That was a first on fox interview there. We also talked about specifically that new york city chopper accident yesterday. Stuart okay. I think we may be rolling a sound bite there, susan. We didnt quite get that. I would like to put it to him that okay, you can say that your machines are safe, i got that, but theres probably going to be some restrictions on the use of helicopters very close to intense urban areas. That could throw something of a wrench into their plans, i would suspect. Susan yeah, especially when they are launching that new york city to jfk Chopper Service on july 9th. You know, we asked him specifically have you had a lot of pushback from government officials because of the scenes and imagery they saw yesterday on cable news, 24 hours news channels were virtually basically covering this accident in midtown manhattan. He said so far, no, but thats what they are here to do, they are here to talk to regulators and government officials to tell them that yes, we want to get people from point a to point b safer, faster and you know, do it all for the better of government as well. Stuart susan, thank you very much indeed. Youve got a big interview coming up tomorrow with, lets see, who have we got tomorrow here . There you go. Susan talking to the head of uber eats tomorrow. That is ubers extraordinarily successful Food Delivery Service. That interview is tomorrow in our 11 00 hour. Got that. Check the dow 30 again, please. Going to get back to that market. We are on a roll. The dow is up 120 and i see 25 of the dow 30 in the green. They are up. President trump, yes, he got a deal with mexico. They are going to fix their southern border, at least try to, but we havent fixed our border yet. Congress have taken no action. Senator rick scott, next on that. Fact is, every Insurance Company hopes you drive safely. But allstate actually helps you drive safely. With drivewise. It lets you know when you go too fast. And brake too hard. With feedback to help you drive safer. Giving you the power to actually lower your cost. Unfortunately, it cant do anything about that. Now that you know the truth. Are you in good hands . Stuart all right. 22 minutes in, were holding with a gain of 124 points as we speak. Roughly a half percentage point up for the dow industrials. President trump makes a deal with mexico to cut down on ilLegal Immigration and have them protect their southern border. Joining us now, senator rick scott, republican, florida. Mr. Senator, theyre going to protect their southern border but we still havent fixed ours. Our southern border is not fixed. Whats Congress Going to do about this, sir . Well, first up, i think its promising the president , i was just with secretary pompeo, they worked together to get an agreement with mexico. Hopefully mexico will live up to that and help us stop the crisis on our border. But i dont get it. The democrats in our country, they do not want to have a secure border. Its as simple as that. Why do they not want to secure our border. They wont provide the funding, they wont change the asylum laws, they will do nothing to secure this border. So it makes no sense to me. Stuart well, may i interrupt, sir. You are a United States senator but im going to interrupt anyway. I dont think they want to give the president a win of any kind. If they were to help him fix our border, they would be helping him win. Thats why they will do nothing forever. But stuart, this is youve got to represent the people in your state. If you go around this country, including my state of florida, and we are not on the border, they want border security. They want Legal Immigration and they want to stop ilLegal Immigration. So its Pretty Simple to me and i dont get to why whether you play politics or whether you are trying to represent your citizens, the right thing to do is secure this border. The democrats need to show up and start doing their job. Stuart okay. Next point about venezuela. Again, nothing is being done there. The situation is prolonged, starvation of people on a mass scale, but nothing is being done. The situation is unchanged. What are you going to do about that, sir . Well, first off, i have a 3yearold grandson. If he was living in venezuela right now he would be starving to death. I was just with the foreign minister of spain who was here on friday, trying to get europeans to step up to do more. I think its positive what the president is doing. I think stopping the cruise industry from going into cuba, i think the next thing is weve got to do a blockade. We have to do a blockade of cuba so theres no oil that flows from venezuela to cuba because the key is cuba. Venezuela is sending oil to cuba. Thats why the cubans have 20,000, 25,000 people there supporting maduro. The next stop is we have to do the blockade. I know we are continuing to rachet things up. I feel sorry for kids like the 3yearold like my grandson that if he was living there, we have a mom saying honey, i dont have any food for you today. Stuart i know i have asked you this before, mr. Senator, but you are from the world of private enterprise. You are used to doing something, getting things done. Now you are in the United States senate and nothings getting done, even though our president wants to move forward. You must be frustrated with this. Its, you know, one, its dysfunctional but two, you just get really disappointed that you know problems, you know that weve got to secure our border. You know that weve got to, you know, do something about venezuela. You know that weve got to fight some of these issues. And the democrats just want to sit on the sidelines and do nothing. Why did they run if you dont want to do something. Stuart is the Republican Party united behind President Trump in his fight on trade with china . Oh, i think so. You know, i just put out an oped piece today about that. I think people are understanding, now i personally do not believe we will ever get a deal with china. I told Bob Lighthizer that last night when i saw him. I think its clear that we will never get a deal done with them, because they think about this, stuart. When you are negotiating a deal, if the other side negotiate a point, you agree and the other side backs off, you lose all the trust, thats exactly what they did in this deal. There will never be a deal with china. We have to stop buying chinese goods. Stop buying them. All americans have to say they are our enemy, they are not supporting us, they are helping maduro in venezuela, they are doing all sorts of things that impact our economy, and impact our way of life. Stuart hard line senator rick scott, republican from florida. Thank you very much for being with us, sir. We appreciate it. Thank you. Stuart yes, sir. Now this. Billionaire tom steyers need to Impeach Campaign is spending a lot of money. Hes trying to ramp up pressure on House Democrats to get the impeachment ball rolling. We will have that story for you. My take on political circuses in washington is next. From fidelity. A visual snapshot of your investments. Key portfolio events. All in one place. Because when its decision time. You need decision tech. Only from fidelity. Ycan the past help you. Write the future . Can you feel calm in the eye of a storm . Can you do more with less . 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The power of prevention. Call now to learn more. Stuart all right. We have the market up 100 points and President Trump is tweeting about the market. I will show it to you right now. Good day in the stock market. People have no idea the tremendous potential our country has for growth and many other things. And he is watching, heres another tweet and quote what do the democrats run if they did not want to do things . Senator rick scott just on the program, the president was watching and he tweeted about it. By the way, the dow industrials have not budged bearing in mind that tweet. Right now were still at a gain of 106 points. Weve come down a bit. We should be used to it by now, congress as political theater. I guess we really should say, we are becoming immune to it. But i still find it very hard to take. Congress has become a circus. Apparently unable to do anything about the crisis that we face. Case in point, the john dean show. It happened yesterday. The men went to prison for obstruction of justice in 1974 invited back by the democrats to remind everyone of watergate. To establish a parallel between then and now. Mr. Dean said he was there to educate. No he wasnt he was there because john dean was supposed to raise the specter of a trump impeachment. The minute breakdown president nixon could surely be used to bring a President Trump. A purely political stunt. I am tired of lawyers and legalism speared and the definition of obstruction. And all the rest of the lawyers wrangling. What is going on with House Democrats has nothing to do with the law. It is pure politics. And lousy politics at that. They know they cannot impeach the president. But they think if they trash them enough they might still win in 2020. I may be foreignborn but im here long enough to know that america cannot drag down the president try to deal with crisis at home and abroad. At the very pomona president wins an immigration fight with mexico has democrats trot out john dean in the cause of impeachment. A political charade, dressed up as a legal inquiry. To the democrats, do they not understand that china is watching all this . Trashing the president of china leverage. Undermining the president when he is encouraging and engaging our principal rival is not in the national interest. They cannot back off now. The base is gung ho to tear trump down. House democrats could do so much for our country. But all they have done is create a political circus. In 2020 i think and hope they will lose. The second hour of varney and co. Is about to begin. Stuart more of my rant in a moment. I have to tell you about a few hearings are happening today. This hour is a matter of fact, acting Homeland Security secretary, Kevin Mcaleenan is testifying before a panel on the secure and protect act he will face questions on what exact border enforcement the u. S. And mexico agreed to over the weekend. And a Senate Banking committee is holding a hearing on data brokers. That is also on the way. Is that facebook and google data yet. Stuart theres a hearing into the student Loan Servicing market. And jon stewart is testifying on the need to reauthorize a september 11 Victim Compensation fund. All of that active right now. Any highlights, we will bring them to you as they happen. Lets get back to my editorial. Before we get to the judge here, listen to this exchange between florida congressman matt gaetz and former white house counsel, john dean of the jewish sherry hearing yesterday. Roll tape. Mr. Dean herman american presence to be accused of being Richard Nixon . [laughter] actually wrote a book about mr. Bush and mr. Cheney, the worse than watergate. So its become, did you make money on the book . It was a very successful book. How much money did you make . I have no idea. A million bucks . No. Half a million . I have no idea. How much streaming from cnn . Idont really know exactly. Mr. Dean has made an industry out of accusing president of acting like Richard Nixon. I would like to know how much money he makes based on making these accusations and exploiting for his own economic is the financial program. It is a fair question. The judge is with us. What you think about my rant about legalism and political circus . You know well enough [laughter] john dean hearing yesterday had nothing to do with the law. And everything to do with legalism and politics. You asked me what i think about your rant about that we obviously have to have definitions of legal terms otherwise the government would run rampant. But i fully agree with you on john dean your say. There are two cans of witnesses. Factor viii that testify to what they saw and heard and smelled, tasted, touched. Hes obviously not in that category. He has no factual information to relate to the committee and opinion witnesses who explain something arcane beyond the fact finders ability. Like a physician testifying to a broken bone. How long it will take to heal. We dont have historical witnesses. Intending to get animosity up against donald trump because of animosity against from Richard Nixon 40 years ago. Stuart that is exactly what happened it really serves no legitimate purpose but the House Judiciary Committee is not on a legal mission. Whatever you think of donald trump, his legal woes are behind him. This is a political mission. They will either do as a professor of harvard said, dust up the president , bring out all the best if you can and then dont impeach, so he lacks a foreign in which to defend himself without due fullblown impeachment. Your lawyers trashing the president for political advantage. I do believe everybody in the committee is a lawyer. [laughter] you know its true. Most of the memos of congress are lawyers. That is a fact. There are some good lawyers on the committee because they agree with you. Stuart i dont deny it but we should not reduce our politics to an endless series of legalism us. You know to stick it to our president s ribs on a legalistic basis. I am appalled as your country man once said this land is planted thick with laws from coast to coast. [laughter] cut all of them down to get to the devil. Who would protect you when the devil looks back at you . Stuart im not cutting out any laws. Im simply saying that lawyers and legalism said have taken over and are supplanting politics. I have a problem with that. Yes it was one of the more extreme examples of that. Because ive said this before and ill say it again, no legitimate congressional purpose will serve by john deans testimony. He was a hero of watergate. He exposed Richard Nixon for violating many federal laws. But no legitimate purpose was served for contemporary problems by the testimony yesterday. Stuart i hope youll come back frequently and tell us exactly the same thing when the democrats repeat this circus exercise. I have a feeling exactly the same thing, its going to happen. Probably as soon as this afternoon or tomorrow. Stuart the House Judiciary Committee are getting underlying documents from the Mueller Report. You know they will do. They will retry. The president s fears about a do over our legitimate fears and it should not be happening. Stuart it should not be happening. This is a do over, it is secondguessing the justice department. It should not be happening but it is. There will be plenty for us to talk about. Stuart i dont think its the political advantage of democrats to do this. I think the country stands back and says what the devil are you doing here . I think the democrats will learn when it is too late that enough is enough. Stuart you are right come back soon. Are used to this young lady . [laughter] stuart judge, thank you. We will get back to terrace, the markets, trade, stocks. Our guy on the subject, [laughter] any subject i still have what he gave me two years ago. You give a good answer there. I would have had that taken away. [laughter] the president won on mexico. The Terror Threat worked, i think it worked on the market. Where my going here . They have taken the positive out of mexico and look for something that may come out of the g 20 in a positive with china but to your point, stuart, theres a sickness on the left. They would rather see america lose if it meant getting rid of donald trump then to see america succeed, and thats a problem. Margaret thatcher said it 30 years ago. They would rather see the poor be poorer as long as the rich were less rich. If they are out of their minds, weve had four investigations now. Fbi, Health Center and Robert Mueller all exonerate the president with collusion. Now it is obstruction and it was not obstruction because he did not clean his room or left his socks out, they will continue to go down this road until the next election. Thats what im afraid of. The markets, thankfully, are ignoring it. Stuart the markets dont care. Theres a political circus in the economy and they dont care. That is what we have to continue rally. Do you think we can go further up from here . Yeah, im a little nervous. I have flashing yellow signs because we have a 3. 6 percent Unemployment Rate the lows of 50 years. More people, more jobs open than the total number of unemployed for the first time on record. Andrew got the staff market alltime record highs. And we are talking about a rate cut. It does not seem right to me. Im a little worried about this talk about cutting rates and low inflation. I think if they do take back the last rate hike from december and really go on a wait and see think we have decent news out of china, you can see the market trade higher. But if we start to full aroma things too much and cut rates when all these great things are going on, if you do not get what you want it will ruin the party and its what im afraid of. Stuart understood, scott, thank you very much indeed. See you soon. 2020 white house hopeful, joe biden expected to go after President Trump during appearance in iowa today. They will both be in iowa. The president is going there as well. Looks to me like a preview of 2020. We have that story. Heres another one. Tom steyer trying to increase the pressure on the democrats to get behind impeachment, impeachment of donald trump. We will tell you how much money he is spending, the answer is, it is a lot [music] stuart state attorney general suing to stop the sprint and tmobile merger. Why are they doing this . Anticompetitive. It would reduce the number of National Carriers from 4 to 3. It is less choice, youre tempted attorney general on board. There will be a press conference this afternoon all being led by the new York Attorney general. Why am i not surprised . I can tell by your face. Next case, billionaire, hes a billionaire, tom steyer, the need to impeach campana spending a lot of money on ads trying to ramp up pressure on House Democrats to get the impeachment ball rolling. We have Lauren Simonetti with us. How much is he spending . Initially 360,000. But 40 million is how much in his war chest where he is not going to, remember he announced early this year he says im not running for president but im going to measure donald trump cannot run for reelection. The way to do that is to impeach him. In the first hit list, lets call it a hit list, House Democrats said hes targeting not he wants to support impeachment of the president with powerful people you have James Klapper and the House Majority whip, jeffries, the Democratic Caucus chair, eric swalwell, running for president in 2020. He sang look, you may be saying your argument might be, we agree with impeachment just now was not the time. That doesnt work. He calls in and says that Mueller Report is in impeachment referral and everything but name hes targeting these individuals right now. Tom steyer was a democrat to say impeach him now. Dont delay, do it now. Start it now. And target the democrats dont agree with that super tough hardline. Yes. Thank you very much. Still to come, this hour, the former u. S. Ambassador to the United Nations and mexico. He once said tariffs on mexico would be bad politically and economically. What does he think now . Because those tariffs worked. Used to build smart phones, cars, get most of the stuff from china. One American Company is building a facility in texas to process our own rare we have the co blueLine Corporation coming up this hour. [music] stuart rally holds were up 100 points 26,157 on this tuesday morning. Sometimes i forget which date is. I will take that. Your name is stuart varney. Stuart thank you, just in case i will take that. Both stocks are up today, even though they are Holding Hearings on their data brokerage. It comes up this afternoon there under pressure but the stock is going up today. Both President Trump and a joe biden in iowa today. Mr. Biden s speech has been legally a part of it for you here it is. Heres what he says. I believe trump is an existential threat to america. That is the theme of his entire presentation today. Come on in, sean spicer, America First action Senior Advisor and spokesman. It, that one sentence, it is part of the speech, joe biden is going even further to the left. Isnt he . Its what it looks like. Yeah, i think theres really two things going on. One is from a general election standpoint. Trump one that i will buy 10 points for the six electoral votes will be crucial to him winning reelection. I think wisdom policy was put them in a strong position to build on what he did last time. He won by hundred 50,000 votes. I think we are well on pace to exceed that. Theyve also got this iowa caucus going on or joe biden has to do well. The interesting thing about this, when you look at last cycle, Bernie Sanders did very well on the caucuses. Here he contended well in the primaries. Joe biden knows this will be an early test of his strength. The last caucus with the closest in history, Hillary Clinton, won by 2 10 of a percent point, 49. 8 percent and 49. 6. The problem joe biden has is not the 23 other folks. I believe Bernie Sanders will continue to pose the greatest threat to him in these caucus states. If he suffers a big loss early on, that will cause, call into question his sustainability going forward. He has got to end further and further to the left on the stuff to play strong iowa caucus. Stuart do you think joe biden will be the democrat nominee . I have my doubts because the senate, 18 months ago, land campaign, Brutal Campaign to be done. Im not sure he lasts all the way through. What do you say . I think is a good question pretty clearly right now, has the front runner status. But going back to what i said a moment ago stuart, heres your joe biden suffers. Look at the rules by which the democrats are playing by, it actually favors Bernie Sanders. Heres why. You have 23 folks carving up delegates in primary states. It is much easier to get a delegate in a democratic system than it is in the republican system. Many of the republican early states are winner take all weathers caucus, or primary. The democratic system, they give out many more participation trophies. They had all delegates basically for showing up. That means sanders who plays better in the caucuses has an earlier opportunity to pull away from the field, record delegates and is caucuses while biden and the other 20 people plan a primer to try to divvy up their pot. While biden may be up ahead in the polls and have a substantial lead over all, i think we are to get down to the math of how delegates are awarded, actually think sanders has the edge early on. Stuart it will be a very interesting contrast in style today. Both the president and joe biden are there for the president is going in after a win on mexico integrates beach on dday. Joe biden is going and looking over his shoulder to the left, coming on strong. Real contrasting styles. Absolutely look, i think the difference between last cycle and this, last cycle was a theoretical you know, proposition. It was here we think the candidates will talk about. Of Hillary Clinton or donald trump. Trump now opens the cycle with a record of achievement. Especially for the farmers and ranchers. When it comes is jennifer china, comes torenegotiating th u. S. Usmca. It will be crucial, he is a strength of economy ability to stand up against unfairtrade practices , something i went to been fighting for for decades. The president is going to iowa with a solid record to grow appears. Stuart sean spicer, come back soon. We will see you again soon we hope. The president says the fed is being very disruptive, our economist this hour, will ask him if he agrees with what the president is saying about the Federal Reserve. And Brian Kilmeade will join us to tell what we need to know about team usa. They are getting set to play thailand in the womens world cup later today. We will be back. [music] dear tech, lets talk. You blaze trails. But you have the power to do so much more. Lets not just develop apps, lets develop apps that help save lives. Lets make open Source Software the standard. Lets create new plastics that are highly recyclable. Its going to take input from everyone. So lets do it all, together. Lets expect more from technology. Lets put smart to work. They feel like they have to drink a lot of water. Patients that i see that complain about dry mouth, medications seem to be the number one cause for dry mouth. Dry mouth can cause increased cavities, bad breath, oral irritation. I like to recommend biotene. Biotene has a full array of products that replenishes the moisture in your mouth. Biotene definitely works. It makes patients so much happier. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. [music] 10 30 right on the dot. Stuart the markets nicely higher again i should say. Up 120 at this point, those of 26,182. Nice solid day. The presence of the Federal Reserve is very disruptive. Peter with us, welcome back to the show. I think the president is referring to the Interest Rate hike, the Federal Reserve did late last year, he says is very disruptive, what say you . I think is referring to more than that. It is a whole mindset in this place the economy no longer behaves. Macroeconomists were taught to believe it behaves. The models are not working. When the fed was flooding the economy with money, inflation was low. Now that is pulling back and selling off assets, inflation is still low. It basically fluctuates between 1 one third percent, one of three quarters percent sometimes two percent. Does not seem to respond at all. Right now, we have the peak in terms of the gap between jobs openings and those looking. And Inflation Expectations are falling. Something is wrong here. They cant cope with it, they dont seem to understand the policy is too tight, even though the models dont tell them so. And these guys do nothing but try to reduce the u. S. Economy down to four equations. Ive seen it. It is absolute madness over there is a cold, its a talking to a bunch of buddhist priests on top of a mountain and asked them about political conditions in france. Stuart a very interesting analogy you have there. But theres another argument in play. The argument is that the president goesafter the Federal Reserve. It will actually make it more difficult for the Federal Reserve to operate because they dont want to be seen to be caving to pressure from the president. About that argument. His tactics are poor. But the analysis may be correct. There is a difference. Going after the fed in the manner he has, is important tactics. But you have to understand what youre dealing with in terms of powell. He learned economics, so hes relies on these ivy League Experts who really believe those models and when you sit at harvard with Johns Hopkins and live off of the peoples money your whole life, publishing journals are edited by these guys themselves in a small circle, you never really ask yourself how have institutional circumstances changed . How is underlining economic circumstances changed to make these new relationships are relevant when projected from the path of the future. Ive been writing about this and writing about it and writing about it as have others, we dont get any phone calls unless we get picked up by a president ial candidate. Stuart okay do you think the Federal Reserve should cut rates now . I think they should. But i think more fundamental we have to ask ourselves cutting rates the right tool . Cutting rates basically means making it cheaper for the bank to borrow money but the problem is they do not lend it out. We may have to do something radical like go to helicopter many peer which has been entertained in the literature, it is inject cash directly into the hands of businesses and consumers. How do you do that . Think about it, stimulus spending of george bush to through a tax cut is that, the other thing have the treasury consider buying bonds, sell bonds, basically deposit bonds on the books of the fed you have the fed give out money that way. I propose that ordinary individuals the way they let banks and hedge funds have bank there is no longer need for intermediation. Stuart but we are doing well the economy is growing very nicely. Rearview mirror. Rearview mirror. Stuart why do you want money in the economy now . Ulta chuck billions and trillions of dollars but if the president says we need more stimulus. We need to cut Interest Rates, we had to ask, will it do any good . I dont know that it will. Look at the mortgage market, rates have already fallen ahead of the fed. For the Housing Market is not taking off. There are structural problems in the Housing Market. My feeling is the fed needs to reevaluate its tools in the light of what i talked about and also the fact that we have a global currency. When it acts your so much money floating around abroad, so many bonds floating around abroad that it tends, those movements tend to negate the moves. I had an article about this yesterday at marketwatch. My feeling is the fed is out of date as the guys with the real bills doctrine in the 2030s were. These dictate when the economy went down because there is less trade to renew less money. We are starting to have that mentality. That kind of counterproductive mentality over there. The place is literally a seminary. Look at, drive past the building, it looks like a seminary. Stuart i find it fascinating the idea that we should take a fresh look at what the Federal Reserve is doing and what it wishes to achieve. Exactly stuart i can see it. You dont have to take my prescription. But at least you have to start to talk about it. The trouble is that they dont people at Bernie Sanders and the not a starter but that just wants money endlessly to finance healthcare, trillions of dollars, will get their way and we will be in the republic. Stuart into the chronic analogy. Peter, thank you for joining us. All good stuff we will see you again soon. That is a promise. The dow industrials are still on a very modest rally. Right now we are up 91 26,153. Joining us now, live on the radio, Brian Kilmeade from the Brian Kilmeade radio show. I want to talk soccer with you. Okay. Stuart this Afternoon Team usa please the first match of the womens world cup, theyre playing thailand. Looks to a team usa the odds favorite i think they will win big. What do you say . There are three mandatory games. The last one will be most interesting. In the quarterfinals three years ago, another reconfigured the team, they ready to go some of the older players coming off the bench. Thailand is considered the worst team in the world cup. And the only reason i got in some states because north korea tested positive for almost every band substance. Stuart okay. [laughter] they are small, they are they lack confidence. Mia hamm said it best, and two ledges back it up, they never remember a bracket more full of balanced teams. This england got good, but once you left stuart, i dunno if there is a let you leave and they get good preview keeping the Womens Program to for a while. Im sure your panel will discuss that. They were upset in the first round but your sweet and that will be strong, norway has won the world cup before but france, home team, in france, where the french team is located, having the homefield advantage, it will be interesting. They did not give the u. S. Team an easy bracket because the last game is sweden and it is a tough bracket. Stuart by the way, you can watch the womens world cup on fox and fox sports one. The team usa played thailand this afternoon. 3 00 p. M. Eastern on fox. Before you go, have a straighten me out about the kevin durant warriors player. He was supposed to become a free agent later this month. Says to me this is a catastrophe for him and his team. Cuesta think that is the perfect word. Kevin durant is a warrior and the guy play so hard every single game. He hurt his ankle for and a half weeks ago. If you look at how his ankle was packed, he does look like an achilles injury. Because the weight went back of his leg. He comes in scores 11 points in 12 minutes. Andy has a warriors up by one. He goes for a loose ball, his daughter stops and comes back throws the ball we know he was extremely hurt. He goes down, it looks to be a torn achilles. It takes a year to recover. For the warriors they are now down three games to two, they won in overtime with one but they go down for the last time in the arena. It looks to be additional motions, have a dramatic victory and you go home and you won all of the championships prior. It exactly with the nba wanted to get people interested. Toronto fans really let their country down. They cheered the injury, clearly he was severely hurt and they cheered. The players on the raptors were saying guys, stop it. But they did not wake up to it. I thought that was a huge mistake. I love the fact that toronto is playing so well. I love that people are interested, is a network television, not our network but for the real story, fox sports. If youre a woman you have to watch. The problem with women sports, women dont watch. This is your chance to watch. Stuart and i are watching, we need the women to watch. Stuart i think that says it all, brian by the way, the oracle stadium i think. You are right, my bad. Stuart i do not need to correct you. You know a lot about big business. [laughter] stuart Brian Kilmeade everyone, he is all right. We will see you. Thank you. Stuart the former u. S. Ambassador to u. S. And mexico. He once said tariffs to mexico would be bad. What does he say now . Because they worked. We will ask him that question. Smart phones, cars, they all use these rare earths which we get most of from china. In a moment will talk to the ceo of a Company Building its first facility outside of china. Building in america. And can process theirown rare earth, big deal. Back after this. [music] is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. Every day, invesco combines ideas with technology, data with inspiration, investors with solutions. Because the possibilities of life and investing are greater when we come together. Can the past help you write the future . Can you feel calm in the eye of a storm . Can you do more with less . Can you raise the bar while reducing your footprint . For our 100 years weve been answering the questions of today to meet the energy needs of tomorrow. Southern company stuart run through the markets, we are up 50 points on the dow industrial. How about that . A broadbased rally, it is paid nasdaq is up and a half percentage point. A solid gain there. The s p 500 on the upside. 1 4 percent there but a solid rally all across the board. How about dollar tree . They got an upgrade from j. P. Morgan and dollar tree is up over three percent. Every retailer doing well. We want to get to the mexico trade story. Our next guest, once said the tariffs would be bad politically and economically. Our guest of the United States, John Negroponte former u. S. Ambassador to mexico joins us now. Mr. Ambassador, i think you did once say that they would be bad politically and economically but now weve got it and it worked. The tariffs worked. What do you say now . Christ also say the same thing. Stuart, for the following reason. What i meant by the tariffs being that economically was that say the initial trend of five percent to network and we had to impose five percent and we progressed all the way up to 25 percent. I think that would have had deleterious economic effect on both sides of the border. That would be my first point. The second point, mexico is a country that we saw the north American Free trade agreement in 1993. A Strategic Plan to integrate supply chains of the economy and so forth. It was a positive gesture. Previously the relationship with mexico had been one of distant neighbors. That treaty, the agreement that brought us back more to a Good Neighbor policy. I think the Good Neighbor policy is the one that ought to be applied. Towards a country as close to us as mexico. Stuart i guess the counterargument is that yes, there is pain diplomatically to our neighbors and the relationship. But the argument would be, it is worth it because we have got to get a handle on the border crisis. I accept that the border crisis needs to be dealt with. I believe that raising tariffs and using the threat of tariffs is excessively high risk. And that there others are perhaps going about this. Im not denying that it work this time. No question about it. It was a cliffhanger but it worked. But im not sure is the best longterm approach. Longterm approach i think needs to come through dialogue between us on migration issues. I think with ring Central American into the picture and the question of what mexico is doing to keep Central Americans from coming across the southern border. And yes, you are right in the sense that those issues now that are under various discussion and then some steps are being taken. I hope they follow through on both sides. Stuart do you object to the imposition of tariffs in the china trade dispute . Because i would argue that the only way to get china to the table is tariffs. What do you say . I think theres a huge difference between the two situations. Let me explain. We export about 240 billion worth of products to mexico every year. That is double the amount that we export to china. And the trade gap between us, china and us is huge. Whereas with mexico is about 60 or 70 billion. I think the situations are qualitatively different. Something had to be done to shake up the u. S. China economic relationship. Not only the imbalance, but the stealing intellectual property, forced intellectual and so forth. I think treating trauma as an economic competitor and adversary, i feel better about that than treating mexico which i considered to be part of a north american competitiveness platform consisting of the United States, canada and mexico. Stuart mr. Ambassador we really thank you for joining us today. We need your expertise in this area. We got it and we appreciate it. Mr. John negroponte, thank you. Thank you. Stuart coming of the former advisor on the show she says, President Trump is playing with fire when he criticizes the Federal Reserve. She is on the show shortly to explain her position on this. Nasa will allow private citizens to stay at the International Space station for 50 million. Have to get that in. We have the nasa administrator to explain. 50 million a pop. [music] at comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Stuart not much of the rally left. We are up 40 points 26,100. I like to check beyond meat, such a wild ride but downgrade from j. P. Morgan, its been flying high for the last couple of sessions but the downgrade takes beyond meat down 20 percent. Remember, on may 3 beyond meat went public at 25 shepherd is down 20 percent now at 134. What a performance pair now this. The first rare earth facility outside china will be built in texas. The First American facility. Rare earths are elements using everyday things like cell phones, cars, televisions, you name it. And is now the ceo of the new Line Corporation the only company outside of china that can process rare earths, john blumenthal. Welcome to the program, good to have you with us. Thank you, stuart, i appreciate you having me on. Stuart at this moment youre creating and producing the only facility that can process rare earths in america, is that correct . Know we are working on building a facility that will separate heavy rare earth with our company, linus. Stuart what will that help us to do . Heavy materials are critical in all the applications where you talk about rare earths. They separated between heavy and light materials. Light materials which linus is a worldsecond largest producer and materials in the world. Outside of china. There actually no one outside of china but they actually have the second largest producer outside of china. They actually produce 20 percent of the world separated materialscurrently , all heavy materials are produced inside china. The light materials are produced in the linus facility in malaysia. Stuart okay, will be okay when your facilities up and running . Are we not going to be faced with any shortages of rare earths, heavy or otherwise . There is a issue with the supply chain is what youd want to rebuild the supply chain starting from the bottom up. Raw materials are necessary for the high tech applications. However, metal producing, alloy producing as well as magna reducing is all primarily in asia and china. None of that is currently in the United States. We are hoping to see a renaissance of manufacturing in the United States. Once a raw material manufacturer is here. Stuart im sorry to interrupt, would you go ahead even if the entire dispute with china is settled and there is no threat to our supplier of rare earths coming from china, will you still go ahead . At this point, back in 2010 and 11 when there was a dispute between china and japan, china cut off japan and what japan did was, they basically looked at it and had a strategy as both the industry as well as the government. What they did is invested in linus and put their work and faith into linus. And a brother Manufacturing Base tremendously. Over the last nine or 10 years. What we are hoping to do is see that with this partner, that has ample material at their mine in western australia, basically, they are they have a tier 1, which basically means you have a high grade at least 25 years worth of material that is more than ample to supply u. S. Applications. Stuart go for it, we admire what you are up to. Thank you. Yes. Stuart totally different subject. Rashida tlaib has a new plan shows the government to give out free money. She is calling it an earned income tax credit on steroids. We are talking to someone who says that is nonsense. He says, her plan will encourage poverty. Despite President Trumps tariffs, Small Business optimism near an historic high. I think that puts the president in a strong position into the china meeting with xi jinping. My take on that next. Hi im joan lunden. 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Repatha® can cause serious allergic reactions. Signs include trouble breathing or swallowing, or swelling of the face. Most common side effects include runny nose, sore throat, common cold symptoms, flu or flulike symptoms back pain, high blood sugar, and redness, pain, or bruising at the injection site. I wont let a heart attack or stroke come between me and everything i love. Neither should you. Tell your doctor to lower your ldl and reduce your risk with repatha®. Pay no more than 5 per month with the repatha® copay card. Stuart if there was so much concern about tariffs and trade, how come Small Business, businesses plural, are so confident about the economy and their own future . How come . Well, that was the first question we asked this morning when we saw this headline. Small Business Optimism roars back, rivaling historic highs. They are spending big and making money and trying to hire more workers. In fact, their biggest problem is finding people to fill the jobs they are offering. Thats the Small Business report for may, a month when everyone was getting the jitters about tariff wars, a month when the stock market went straight down. Small business went the other way. Confidence soared. The gloom and doomers overplayed their hand. The chamber of commerce hated the whole idea of tariffs and lobbied hard against them. Some republicans joined in. Rightly or wrongly, they put what they thought were the interests of business first. President trump put the national interest, america, first. So now its on to china. And the president is standing firm, hardline trump. He says they want a deal more than he does. He said he could impose new tariffs. He is not backing off. Why should he . Hes got the economy working for him, the stock market is soaring, Small Business is doing very well, and the fed will help limit trade war damage. One more thing. Gas prices tumbling. That is important. Its more money in everyones pocket and you could watch the daily price declines when you drive past the gas station. Cheap gas is popular. Chinas leader, well, he looks over his shoulder and he sees a Million People on the streets of hong kong opposing his authoritarian control. He also sees an economy thats in real trouble. Im going to make a prediction. Two weeks from now, President Trump and president xi will smile for the cameras, shake hands and make a limited deal. China agrees to import a ton of american stuff, the president holds off on any new tariffs. Both sides keep talking about Technology Transfers and intellectual property. That will give the market and the economy another shot in the arm. The president s playing high stakes poker and hes playing it very well. I think president xi of china, great relationship with him, i think hell be there. We are scheduled to talk, right now were getting 25 on 250 billion worth of goods. A lot of money is pouring into our treasury. We have never gotten ten cents from china. Now were getting a lot of money from china. Stuart that was the president yesterday laying the groundwork for the upcoming meeting with chinas xi jinping later this month. I will get reaction to my editorial in a moment. First, check that market. Now we are up about 60 points. The rally, in other words, continues and its all across the board. S p, nasdaq, dow, all of them up. The tenyear treasury yield, you always have to check Interest Rates these days, were at 2. 15 . Thats up from previous days, but still at historically low level. Price of oil around 53 a barrel today. No big rally there. What have we got, 53, i think it is. The price of gas, as i told you in the editorial there, more good news. The National Average is now 2. 73 and on its way down. Gasbuddy tells us it might be 2. 50 National Average by july the 4th. On the market, check out this tweet from President Trump early this morning. Here we go. Good day in the stock market. People have no idea the tremendous potential our country has for growth and many other things. Market watcher ryan payne, president of Payne Capital management, with me now. Lets go right at it. I just made a prediction. Yes. Stuart very limited deal. They import a ton of stuff from us, maybe we lay off the tariffs while we keep talking about the other big ticket items. What do you think . I think you are very prophetic today. I think thats probably reasonable to see it happening. I think at some point they have to come to a deal and the g20 summit would be a good place to lay some groundwork. You are absolutely right. Stuart if they come out smiling, hand shakes, heres the camera, big smiles all round, even a very limited deal, is that still good for the market . I think so, because the market likes certainty, right. Right now we have uncertainty and the market doesnt like uncertainty. I would argue we are probably pricing in bad news right now. Everyone is very jit tery about what the market means right now. Stuart why . We have had six days of straight up and now its the seventh day. Now we are up again. Sure. We just came off a little bit of a selloff. Were not quite back to the highs yet. When you start looking at earnings going into 2020 the s p is trading at forward earnings of like 15 times which historically, thats below the average. Right now the market is actually on the cheaper side. Stuart on the cheaper side after all of this. Still on the cheaper side. Amazing but its true. Stuart astonishing, actually. Hold on for a second. I want to tell our viewers about facebook and google. Very much under the microscope today on capitol hill. Jackie deangelis with us. Look, they are worried about an antitrust action against them. Thats part of the story. The other part of the inquiry is how these platforms are dealing with news searching. We talk about fake news all the time. We see some of these videos, for example, posted on facebook going viral. Theres a lot of issues to probe here. The broader, you know, the thesis behind this story is its not just about facebook and google but also about apple and amazon. This is both sides of the aisle saying it is time to look at big tech for anticompetitive practices, but also for their impact in terms of size and scope and power. Stuart okay. They are politically unpopular. Right now, they are. Stuart thats the truth of it. Heaven forbid the government goes after them in a big way because that would really hurt them. Ryan payne i think microsoft and google have particular vulnerability. Lot of people on this program have said i wouldnt touch those two stocks at this moment. Would you . I disagree, respectfully. I think what happens is Money Managers need to outperform the market which they never do. Right now, with those stocks doing well, that means the indexes are doing well and the benchmark that these Money Managers are pitted against are the benchmarks so they have to buy the same stocks. Now all of a sudden you have all the Money Managers buying all the hot tech stocks and individuals like to buy the tech stocks on their own, so i think you will see kind of a meltup because there is so much pressure to own those positions now. Stuart if they have an antitrust action against them, that will really hurt them. If they go after the business model, those stocks really take it on the chin. You have to see teeth in that first. Right now we are seeing a hearing on capitol hill. Thats different than real regulation down the pipeline. Stuart i will talk about amazon. Hold on for a second. I have two stories on amazon. Here we go. First of all, theyve got a new rewards credit card. Deal with that first of all. A new credit card from amazon . What they are trying to do is compete with apple the way its partnering with google to do a payment service. Amazon already has a credit card. They are doing a second one for people with bad credit. What they are trying to do is create a debit system to help educate them about credit, where they would put up a percentage of money that they can use and draw from, then if they go over that, we discussed earlier in the show that the rates will definitely be on the high side. What they are trying to say is theres a market there, people who have bad credit, they need it and they are consumers, too. Lets try to work with them. Stuart the other story from amazon, they are ending their Food Delivery Service, getting out of the business. Were not used to that. Thats after four years. Its one of the few fails i can think about when it comes to amazon. Think about everything they have tried and been successful. Its been difficult for them to compete with grub hub and seamless and the other uber eats services out there. Lot of people are saying this is great of amazon in some sense, they are exiting a market that wasnt working for them. Thats a Smart Business strategy and it presents opportunities for these other first movers who have become more successful. Stuart look at grub hub go straight up. Ryan payne, i hardly ever hear anybody on this program say dont touch amazon. Dont go anywhere near them. They have gone up so far, so fast, dont touch them. What do you say . It trades at 57 times forward earnings. This stock is priced to perfection. Look, you go higher but when theres bad news, when you have a multiple that high, things dont sell off a little bit, they sell off a lot. You saw that back in september to december. Amazon was down almost 40 . I think its probably not the best stock to own for the long term just because its so expensive. Stuart wow. Fascinating stuff. Okay. All right. Watch out, amazon. Thank you very much, ryan payne. Look at beyond meat. What a run its had. What a run its not having today. Beyond meat went public at 25, shot up, jpmorgan downgraded it today saying its beyond its price target. The market reacts to that, down 20 . Beyond meat is still at 134 a share. Ashley still pretty good. Stuart drastic. Beyond meat, causing quite a flurry in the market. Next case, nasa. They want to send tourists to the space station. All you need is 50 million. We will talk to the nasa administrator shortly. I want to know why they are doing this and if they have got any takers yet. Members of Congress Make an average of, what, 174,000 a year. Alexandria ocasiocortez says not enough. Shes pushing for a congressional pay raise. We will tell you why. And of course, we are watching your money. Right now we are hanging on to a slim gain, on the seventh day of this market rally. We are up 60 points. The third hour of varney just getting started. Stuart now, i want you to see this. Look at that. Did you catch that . Thats an extraordinary onehanded no glove catch from a fan at last nights atlanta baseball game. Atlanta braves. The cherry on the top was that was a grand slam hit. Ashley grand slam catch. Stuart well said. He gets the prize for the catch and he gets the highlight, too. Ever see anything like that . Ashley sign him up. Stuart no glove. Lets get to the nba finals. Golden state warriors star kevin durant, injured in the game against the raptors last night. What happened . Ashley catastrophe for him. Second quarter, he had 11 points at this stage. A pivotal player, forward for the warriors. Looks like, we dont have any confirmation, a torn achilles. If that is the case, hes been battling a calf injury. Hes been not played for the last four weeks. If its an achilles he could well be out for another year. I said he averages 280 games. 280 days. 280 games would be four or five years. Nevertheless its a catastrophe. He could well be out, no longer in the nba finals and probably most of next year if the mri shows a tear in his achilles. Bad news for the warriors, who are still alive. They won last night. They are down 32. Stuart you hate to see stars get injured like that. Ashley all around. Stuart well said. Thats one sport. Let me transfer to another one. 3 00 this afternoon, team usa plays thailand in the womens world cup. Its americas first game in this world cup series. You can catch the action on fox. Again, 3 00 p. M. Eastern time this afternoon on fox sports. I want to touch back on my editorial at the top of the hour. Want to bring in senator james lankford, Oklahoma Republican and old friend of the show. Mr. Senator, welcome back. Good to see you again, sir. Great to see you as well. Stuart we have a fantastic economy. We won on mexican tariffs. Seems like there is so much that congress could now get done, but nothing will be done because they are all about impeachment. You must be very frustrated because we are. It is exceptionally frustrating to be able to watch the house of representatives right now focus on everything walltowall on investigations and on impeachment and trying to build a foundation for impeachment when we have quite a bit we can get done. Lets focus on what we can get done, what has to be done on the house first is the usmca trade agreement. Constitutionally, because that has revenue in it, it has to begin in the house. We are looking forward to when that trade agreement is in their lap, they actually take up real legislation that can help the country, help farmers and help business all over the country. Lets get that resolved as quick as we can. Stuart yeah, thats absolutely, it has to get done and if the democrats hold it up, that would be very very bad for our economy, mexicos economy and the whole concept of diplomacy. I mean, you dont think they would hold it up, do you . So what i cant tell you is if they will hold it up based on they dont want the president to get a win but usmca agreement is not about the president getting a win, its our country getting a win. Long term, i hope that they are thinking in the best interests of the country, not just trying to do a political attack on the president himself. But this would stabilize trade in north america, its extremely important to be able to get that back to stable again. We want to get to low or no tariffs in as many different places as we possibly can. Stuart is the Republican Party absolutely solidly behind President Trump with his use of tariffs as a weapon against other countries which we want to influence . They are solidly behind him in negotiating trade agreements. They are not solidly behind him in the use of tariffs in every location. Im one of the folks that say we need to get to low or no tariffs in as many places as possible. When you talk about raising tariffs in other places, long term that hurts American Consumers and hurts our position. If its a short term tool to get to a negotiation, to get to long term low or no tariffs, we are fine with that, to be able to do it. But if its a long term piece to say we will have tariffs for a long time, we would like to get rid of those tariffs because where we compete worldwide with our products and labor market, we win. So lets get back to that competition, let us win the game. Stuart got it. I do want to get your take on congresswoman alexandria ocasiocortez. She is in favor of congressional pay raises across the board. Whats your thoughts on that, mr. Senator . So i would say for a decade now, members of congress have said no to any kind of pay raise. Quite frankly, i dont see anything coming out of the house right now that i look at and say thats been so successful, the American People would want to give them a merit bonus this year based on what theyre doing out of the house. So no, i would not agree. Lets get us back to actually being productive again and then we should go back to the American People and say after holding on pay for a decade, lets see if we deserve it again. I think productivity deserves a response, not inactivity. Stuart productivity. Get paid for what you do as opposed to what you hold up. Senator, it was a pleasure having you on the show again. Please come back soon. You bet. Look forward to it. Take care. Stuart thank you. Consider this. The actor Michael Douglas, hes been trying to sell a farm, 190 acre property, actually, in spain. Hes been trying to sell it for five years. He originally listed it at 60 million. Well, he cant sell it. So now hes narrated his own video. We will play you a piece in a moment. Want to take a guess how much hes asking for it now . Was 60 million. What do you think it is now . Looks fantastic. And this. 450 million davinci painting has been quote, missing since its record sale at auction in 2017. We now think we know where it is. We will tell you, after this. I switched to liberty mutual, because they let me customize my insurance. And as a fitness junkie, i customize everything, like my bike, and my calves. Liberty mutual customizes your car insurance, so you only pay for what you need. Liberty. Liberty. Liberty. Liberty. Metastatic Breast Cancer is relentless, but i was relentless first. Relentless about learning the first song we ever danced to. About teaching him to put others first. About helping her raise her first child. And when i was first diagnosed, my choice was everyday verzenio. Its the only one of its kind that can be taken every day. It gives us more time without cancer progressing. 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Stuart davincis famed Salvatore Mundi went for 450 million two years ago to an anonymous buyer. Now we think we know whos got it. Jackie we think the saudi crown prince, mbs, 33 years old, might have it and it may be on his superyacht. He is believed to be the mystery buyer. Stuart on his yacht . Jackie on his yacht. Listen, when you have more money than god, you can put this painting on your yacht. Stuart i guess so. Put it wherever you want. All is revealed. Owned by mbs and hes got it on his yacht. Thank you. All right. If you are wondering what actor Michael Douglas is up to, the answer is hes trying to sell his majorca mansion. He put it on sale for 60 million and now as we are trying to get you to guess, hes come all the way down to 32 million. Its been on the market for five years. Heres how hes trying to sell it. Roll tape. My life has taken a new course and now its time for me to let someone else enjoy the privilege and adventure, someone who will appreciate the beauty, the privacy and the uninterrupted views. Stuart okay. What do you think . It looks fabulous. Ashley ten baths, 10,000 square feet, gorgeous, but i dont know whether the video will spur anyone else on. Maybe, just for the star appeal. Hes brought it down almost 50 since five years ago and he cant sell it. To your point, i guess when you are rich you can go to these places whenever you want, but how often are you going to use it . How often is he there, i wonder. Stuart you cant jet away for a weekend. Ashley its a long way. Jackie theres a certain kind of buyer that will be attracted to this property thats probably not watching that video. Stuart probably. May be attracted because its Michael Douglas. Ashley theres a star appeal. Stuart star appeal to that. All right. Next case. Listen to this. Democrat congresswoman Rashida Tlaib releasing a plan that would pay, pay low and middle income families thousands of dollars a year for doing nothing. By the way, she will pay with your money. Also happening, joe biden and President Trump both campaigning in iowa today. However, joe biden seems to be moving farther and farther to the left. Hes criticizing the president s tax cuts and he says mr. Trump poses an existential threat to america. How is that playing in iowa . We will sort it out for you. Call j. G. Wentworth phone ringing j. G. Wentworth, how can i help you get cash . I want to pay off my debt and move into my own place. But i need cash now to do it. Do you get regular payments from an Insurance Company . Yes. In exchange for some or all of your future payments, we give you a lump sum of cash now. Call now, and youll also get 25 for receiving a quote. announcer call 877cashnow. 877cashnow. Thats 877cashnow. Can we talk . We used to play so beautifully together. Now we can barely play anything. Even cards with the girls. If you have bent fingers, and cant lay your hand flat, talk to your doctor. It may be dupuytrens contracture. Your hand is talking. Isnt it time you listened . There are nonsurgical options. Take the first step. And learn more about dupuytrens. At factsonhand. Com stuart we have been trading on wall street for two hours. The rally or part of it is holding. The dow is up 60. Seventh day in a row that weve got an upside move. Come in, our next guest, who says that President Trump is playing with fire when it comes to the fed. If he keeps berating them, jay powell will keep Interest Rates right where they are. Thats some criticism. Let me give you some evidence of this. Exhibit a, this tweet from the president. Quote, the fed Interest Rate way too high, added to ridiculous quantitative tightening, they dont have a clue. There you have it. Danielle dimartino booth with us, former dallas fed adviser. You think we should not be cutting rates now and that the president should not be pressuring the Federal Reserve. Is that your argument . Well, by congressional mandate, the fed is required to remain independent. For the president to be coming out and saying that he should have the same rights as chinas president xi is odd, because we were an independent democratic country. So you shouldnt say that stuart look, you dont think the president should be telling or advising the Federal Reserve, you think the president should say absolutely nothing . Its not the fact the president should say nothing about the economy and the effects of fed policy, but he shouldnt say, you know, these are not my people. The more denigrating he is, the more critical he is, the more difficult its going to be to be objective if youre the fed, even in the face of slowing economic data, even as we see evidence mount that we could potentially have a real justification for lowering Interest Rates. You have to remember, you and i have been through just one or two market cycles in our careers and the fed normally goes in with 5. 5, 6 percentage rates of the fed funds rate to cut. They only have 2. 5 percentage points. They have much less ammunition in the barrel than theyve had so they are kind of precious bullets and the fear in the market, at least in the financials, we know the financials have grown to be a much larger proportion of the stock market, but does President Trump really want to have his legacy be pushing the fed to go into negative Interest Rates, which kills the financial sector, on his watch . Not a good legacy, stu. Stuart isnt it time to rethink economics . Look, for years and years and years, the Federal Reserve has printed money, flooded money into the economy. Traditional economics says when you do that, you get inflation. But when the fed did flood money into the economy, we got no inflation. Now weve got a rise in Interest Rates, tiny bit of a rise late last year, we still dont have any inflation and weve got nice growth. Dont we have to rethink the way the Federal Reserve works and the assumptions it works on . Well, look, i certainly think the fed needs to rethink the way that it measures inflation to begin with. We have stocks that are within a fraction of their alltime highs, yet the feds inflation metrics still refuse to take into account asset price inflation. For them to say that inflation is too low, its very insulting to the average american who has seen their rent go up, who has seen the cost of health care rise at a faster clip than anything thats captured in the feds extremely, to your point, antiquated models. Stuart okay. We hear you. I think we need to take a new look at economics but well do that together. Thanks very much for joining us. Appreciate it. Thank you. Thank you. Stuart congresswoman Rashida Tlaib wants to give, give middle and lower income Americans Free money. 3,000 a year for individuals, 6,000 for couples. Come on in, the antisocialist voice of the heartland institute, justin haskins. I think Rashida Tlaib is talking about expanding the earned income tax credit. Do you think that it would actually alleviate poverty, eradicate poverty, if we gave this free money out . No, absolutely not. Because inevitably what would happen is you give everybody 3,000 or 6,000, including by the way, people who are totally and completely unwilling to work, you are killing any incentive for these people to go out and learn job skills, to find jobs, to build their resumes and to create a better life for themselves. If anything, its going to trap people in poverty and if you give massive amounts of people, we are talking about giving tens of millions of people this 3,000 or 6,000 annual lump sum payment or monthly payment, however they decide to do it, all its going to do is increase prices for the people who you are giving that to, the products and services they are normally paying for. So if you give everybody in society this money, or the vast majori majority of people, its just going to increase prices and they wont be any better off than they were at the start. Stuart talk about joe biden, who will be campaigning in iowa today. We have a little of his prepared remarks, something of what hes going to do. First off, this. And the tax cut he passed for the multi millionaires and billionaires, when im president , gone. When im the president , we are going to have a fairer tax code. More of it. Theres more to come. We are going to get rid of hundreds of billions of dollars in tax loopholes that have no economic or societal rationale. And he also called our president an existential threat to america. It seems to me joe biden has moved way, way out there to the left. He has to because of the primaries and the caucus in iowa. Yeah. I think to some extent thats probably true but only in the warped mind of joe biden and people on the left can they say the trump economy presents an existential threat. We have all time we have either close to all time lows in unemployment or actual all time lows in unemployment for minorities like hispanics and africanamericans, for women, for people without a Fouryear College degree. People are better off now than they have been at any time since the late 1990s. Some groups have been better off like african americans, i mean, for the past 50 years, half century. Clearly, these economic policies are producing regulations and cutting taxes are working for everybody and the idea that this isnt fair, that we somehow need a fairer tax code is absurd. People who earn 100,000 or more in the United States pay for 75 of all the income tax revenue. Thats the top 17 of earners. So 17 of americans pay for 75 of all income tax. The system isnt fair as it is. He wants to make it even less fair by forcing the top earners in this country to pay an even greater burden than they already are paying even though they are not getting any services in return for it. Its completely absurd. Stuart justin, im from the government. I only want to help you. We will leave it at that. Thank you very much for joining us, sir. Im on the same page. Believe me. Directly on the same page as you. Thank you very much indeed. We will talk about target. Big news there. They are going to be offering a big increase in the benefits for all of their workers. That includes hourly people, parttimers, the whole bit. What are they doing . Jackie starting at the end of june, if you are a target employee, you could get up to four weeks paid leave to take care of a newborn or sick family member. As you mentioned, doesnt matter if you are fulltime, parttime, salary or hourly, all employees will be eligible for this. Also starting in the fall, you can get 20 days off sorry, 20 days to bring your child into the Child Care Center there to be looked after or home backup. So thats 20 days of coverage they are going to reimburse you for. Significant because benefits like these are traditionally for higher paid jobs. Stuart right. Jackie when starbucks started giving its employees Health Insurance and other benefits, it not only cultivated good will with the employees but with their public image as well. Stuart you have to keep the workers youve got because you cant get new ones. They arent available. A group of state attorneys general suing to stop the sprint and tmobile merger. Why . Ashley 26 billion merger. Why . Because they dont like the anticompetitive nature of it. It would reduce the number of National Carriers from four to three. They dont like it. New york state attorneys general, state attorney general, is leading the charge on this. I know you will be shocked by that. Stuart no, im not. Ashley he will be holding a press conference this afternoon. They say at least ten, maybe more will jump on to this lawsuit to try and prevent that merger. Stuart both stocks down. Thanks. Now facebook, they are building a gigantic solar farm. Its going to be five times the size of central park in the city. Its part of a plan that could power 72,000 homes. We will tell you where they are going to try to build this thing. Uber kicking off a twoday summit in washington today. Its all about their plan for aerial ride sharing. They want to use flying taxis to transport people. We will take you there. Nasa wants to send tourists to the International Space station. The cost per person, 50 million. Up next, the administrator of nasa. Hey, who are you . Oh, hey jeff, im a car thief. What . im here to steal your car because, well, thats my job. What . What . . What . laughing what . . What . what . [crash] what . haha, it happens. And if youve got cutrate car insurance, paying for this could feel like getting robbed twice. So get allstate. And be better protected from mayhem. Like me. Stuart facebook following teslas lead here, getting into the solar power business. Jackie, the full story, please. Jackie what theyre doing is in west texas. Its a project that facebook is trying to use the solar power to power its data centers. Its actually one of six projects they are working on right now. They are working with long road energy to do it. You can see the photos of the Solar Project there. Its about 416 million. You mentioned its a large size project stuart its five times the size of central park. This thing is big. Jackie its big. Stuart but it can only produce enough juice for 72,000 homes. I know weve got to Power Data Centers but only 72,000 homes. That means if you have a city of, say, a million, theres no way you can build enough solar farms to provide enough juice for that city. Solar farms dont work on a mass scale. Jackie the scales not there. Stuart thank you. Really. Ashley i know. I know. Stuart it doesnt work. Come on. If youve got 50 million just lying around, ive got news. It will get you a trip to the space station. Yeah. Come in, jim bridenstine, nasa administrator. Welcome back. Always good to see you. Why are you offering Space Tourism at 50 million a pop . I want to be really clear. Its not just Space Tourism we are interested in. No kidding, the International Space station is now open for commercial business in general. Tourism is just one element and by the way, 50 million is a large price tag. There will be people that have opportunities to travel to the International Space station that do not pay 50 million. So i think thats maybe a bit of a stretch. But i will also say we have a lot of activities we are trying to commercialize on the International Space station to include manufacturing of materials and of course, pharmaceuticals and even printing human organs in 3d which you can only do in a microgravity environment. The goal being, this is the key, we want nasa to be one customer of many customers in a very robust commercial marketplace in low earth orbit and we want numerous providers of access to space to be providing these opportunities and theyre competing on cost and innovation. The idea, we need to drive down costs, increase access and enable space for all of humanity. Thats the goal. Stuart just out of interest, i dont know when you announced this 50 million price tag, but have you had any takers yet . Have you had anybody say im in . Without question. There are a lot of people very interested in this. Stuart have they called you up or emailed you or whatever it is and said ive got the 50 million, take me . To be clear, what nasa is doing, we are enabling access to the International Space station. But its going to be commercial crew providers. We are talking about people that have the opportunity to launch passengers to the International Space station commercially. They are the ones that are ultimately going to charge the fee and they are the ones, because they are taking passengers to the International Space station, they will drive down our cost. Our goal is to be one customer of many and have numerous providers that are competing on cost and innovation. Ultimately so that we can use our resources, the resources the tax payers give us, to do things that commercial industry wont yet do. This is about enabling us to do more with less. Stuart okay. Makes sense. It really does make a lot of economic sense. I want to just draw your attention to a tweet that came from President Trump on friday. Im going to quote it for you. Here it is. For all of the money were spending, nasa should not be talking about going to the moon. We did that 50 years ago. They should be focused on the much bigger things were doing including mars, of which the moon is a part, defense and science. Would you straighten things out for us, jim . Are you going to the moon and what are you going to do when you get there . No, absolutely, the president is absolutely right. What hes saying is we are going to mars. Moon is the way to get to mars. We need to learn how to live and work on a world thats not our own. This is not about leaving flags and footprints and then not going back for another 50 years. This is about sustainable development, no kidding, being able to live and work on another world, namely the moon, which is only a threeday journey home, prove that we can do it and then we go on to mars. Mars is the destination. The moon is really just a way point on the way to the destination. Theres no inconsistency here. The president issued space policy directive one and it is absolutely clear that we are using the moon as a way to get to mars. Stuart okay. That was clear in the president s tweet as well. Stuart you straightened it out. Next time youre on, if i can scramble together 50 million, i will ask if you will take me on a trip to space. Thats kind of a joke. We will have you on again. Jim bridenstine, thank you for being with us. Appreciate it. Check tesla. Their annual shareholders meeting, i think its later today, actually, they have had profit misses, they have delivery delays, they have trouble. Chief executive elon musk, he is going to be speaking. You can follow it all on fox business. The stock right now, look at it, 214 a share. Not that long ago it was down at 151. 60, i think it was. Shareholders meeting today. Uber going to test flying taxis in a couple of cities very soon, including los angeles. We will show you how they work. These are the cabs of the future, we are told. And with new features and richer stories. It can show dad where hes from. And strengthen the bonds you share. Its only 59 at ancestry. Com. Give it to dad for fathers day. Stuart lets check those ride share stocks, shall we . Uber and lyft. Both of them are still trading below the price at which they went out at with their ipo. Uber went out at 44, uber is now 42. Lyft went out at 72, they are now 56. Lets bring in susan li. Now, she is at the uber elevate conference in d. C. Focusing on ubers flying car business. All right, take us through it, susan. What do you know . Susan okay. So taking a look at this, as we order our cars now on the app, in a few years we will be ordering one of these, flying cars. Call it part plane, part helicopter, whatever you want to call it, it looks like flying cars, flying taxis will be a reality in just a few years. We will start test flights in 2020, next year, in dallas, los angeles and one more International Market which they havent announced just yet, and hopefully commercial operations by the year 2023. So just four years, we could be looking at the jetsons reality coming to fruition. Before that, they need to assure that yes, these flying taxis are safe. Of course, they need government help and regulation has to be part of that. Right now we have elaine chao onstage at the uber elevate event right here in d. C. Stuart its just great to see it actually there. This is going to happen. Its not just a pie in the sky model there. Susan, before you go, i just want to ask you, dont you have the top person at uber eats with you tomorrow . Susan yep, thats right. We have a lot more to talk about. Uber eats, they will be making a special announcement which we will hear from first on fox interview tomorrow. Dont forget, selfdriving is another focus as well. Stuart uber eats is a wild success. Thats a very good get when you have the top person of uber eats. 10 billion worth of food a year they sell. Susan, thanks for joining us. Susan 20 billion valuation. Stuart huge. See you again tomorrow, susan li. Thank you. All right. There will be more varney after this. As you look at the flying taxi of the future. I want to continue with this. Protests continue in hong kong. On sunday, a Million People in hong kong turned out. Theres only 7 Million People in hong kong. A million of them turned up in opposition to his authoritarian control on hong kong. This is important. Hes going into a meeting, a trade meeting with President Trump at the end of this month. Hes going to look over his shoulder and see an economy and massive protests against his authoritarian control. Today not on the same scale but surrounded the legislation building in hong kong, desperately trying to get them not to vote through this extradition bill. Its a local issue but its another power grab by beijing. The conference in hong kong with beijing taking control but we understand that this bill is going to be pushed through. It will be pushed through but hes saying tough luck. You dont get to agree. Even though theres a big thunderstorm right there reporting on a protest in hong kong, a trump meeting at the end of this. I think its a factor in the trade fight. The market has lost much of its rally, only open up this morning. Were up about 1150 points on the dow industrials. Were up just 27 points but we are still above the 26000 level. We have six Straight Days, its gone up about 1300 points, a fraction game as we speak today. Our to check out that went out, went public, 25. It went all the away up to 160. J. P. Morgan downgraded today. Its beyond its price. The stock is down 21 . Its at 132 a share, may 20 it went public. My time is almost up. Thank you very much. The dow still clinging on. I am david. Stocks erasing a lot of todays games, they suggest must go relief and a cut or the possibility of one. Tariffs leaving for iowa in just moments, at the white house with the latest. Look at the trade war and how it affected many across the country. No state has been hit harder more than iowa. Especially farmers within that state. Thats going to be coming into