Transcripts For FBC Varney Company 20240714

Been if america had not had, as it does, an oil glut. It would have been a much bigger price spike. Thats the upside, i guess, of energy independence. Now, whats happening in oil has not had a negative impact on stocks. We are still looking at a gain for the dow, what, about 90 points, up about 34 on the nasdaq. Part of the dows gain is fueled by the Big Oil Companies which do well when oil prices rise. This tanker story is a big money story. We are all over it. And theres a lot going on. We will keep you in touch with it. Elsewhere, ah, Bernie Sanders outlines his definition of democratic socialism. We will break that down for you. Not literally. The president is setting the political world on fire. He says he would accept information on political opponents from Foreign Governments. Theres a shocker. Connecticut, can you believe this, they are in dire financial straits and they are raising taxes on everything. I mean everything. Varney company is about to begin. If foreigners, if russia, if china, someone else offers you information on an opponent, should they accept it or call the fbi . I think maybe you do both. I think you might want to listen. Theres nothing wrong with listening. If somebody called from a country, norway, we have information on your opponent, oh, i think i would want to hear it. Reporter you want that kind of interference in our elections . Its not an interference. They have information. I think id take it if i thought there was something wrong, i would go maybe to the fbi, if i thought there was something wrong. Stuart bottom line, President Trump said he would be willing to listen to Foreign Governments if they approached him with information on a political rival. Look whos here. Sitting next to me in new york, the guy from the washington times. Okay, you are kind of laughing at this. That was a very typical trump response to a question there, but isnt the president putting himself and the country at risk of being played by a foreign power . Oh, sure. Theres a reason we sort of have political acceptable political language and try to avoid, you know, giving blunt answers like that but it was a very honest answer. Think about what he has been through for the past three years. Once we found out from the socalled Russia Collusion Investigation not that he colluded with russia or his campaign colluded with russia but the fact that the Hillary Clinton Campaign Paid for information that was provided by the kremlin, not only tried to use it to influence the election but then they have used it for the past two years to destroy a duly elected president. So hes sitting there, hes in fighting mode. Of course hes going to say that. I do think its important, there have been reports that say that he said he wouldnt go to the fbi. Clearly thats not what he said. He said he might do both or but he wouldnt, the first call he made wouldnt be to the fbi. He would want to get information. Everybody likes information. Stuart it has set the world on fire. You look at any broadcast, read any newspaper headline, thats it. President trump would take information on an opponent from a Foreign Government. In wildfires, eventually all the fuel gets burned up. I keep wondering when in washington is all the fuel going to get burned up and everything that he says doesnt spark some massive wildfire. It never ends. Stuart its astonishing because here you have a riproaring solid economy, we are doing very well indeed, you never hear a word about it. Its still investigate, impeach and now he will accept Foreign Government information. Remember, stu, i have always argued that the reason he ultimately won 2016 is because of the issues. Because people liked him on the issues. They maybe didnt like his personality, didnt like what he said. 2020, if it comes down to issues hes going to win again. Stuart got it. Stay there, please. More for you in a moment. I want to get back to the oil tankers and the attack on two of them in the gulf of oman. Whats the latest . Ashley two tankers came under attack earlier this morning. One norwegian, one japanese. Both carrying crude oil to asia, as you say, in the gulf of oman. The damage, we still dont know where or who or what was behind this, but the damage is consistent with a torpedo attack or possibly magnetic mines. The distress call went out about 6 00 a. M. Or 6 15, i should say. The second one at 7 00 a. M. So about 45 minutes between both incidents, stu. The crew on the norwegian tanker, 23 safely evacuated. Japanese, 21 sailors evacuated. One slightly injured. You have a total of 44 sailors. The Iranian State tv claiming the sailors were transported to an iranian port. The big question, who is behind this. This was not far from the strait of hormuz, a critical lane, as we know, for crude oil. This is a big deal. Ashley its a big deal. Stuart wait, wait. He sat down five seconds ago and already, hes taken over the show. Do you recognize this guy . The straits is where all the oil is flowing through. That will trigger an allout battle. Those straits will be protected. Stuart its a threehour single answer show. You cant handle that. You have a onehour show. I do four hours live every day without a net. What are you talking about . Stuart three hours on radio. Its not the same. Okay. Well, the difference is you dont get little pictures and everything. You actually have to think. Stuart in all serious nness, i want your analysis. Show me the tweets President Trump just put out about this accepting information from Foreign Governments. Do we have them . Can we get them on the screen, please . Okay. Theyre coming. I promise you. Put them on the screen. Mr. Hannity, having broken into the show, here we go. The tweet is, i meet and talk to Foreign Governments every day, i just met with the queen of england, the prince of wales, the p. M. Of the united kingdom, the p. M. Of ireland, the president of france and the president of poland. We talked about everything. Should i immediately call the fbi about these calls and meetings . How ridiculous. I would never be trusted again. With that being said, my full answer is rarely played by the fake news media. They purposely leave out the part of that that matters. Okay. The political world is on fire this morning. He would take information from Foreign Governments. Well, wait, wait, wait. He could be played. You dont need a guest. Im out of here. Stuart he could be played. Let me tell you, its just the opposite. I think the president is literally, this is, you know i do martial arts. This is a jujitsiu move. This selective moral outrage media mob, think of it this way, if theyre up set he said listen, if i need to i will tell the fbi. If youre upset about that, you have to ask yourself why arent those same people outraged over the fact Hillary Clinton funneled money to a law firm that hired a Research Group that hired a Foreign National that got russian disinformation, i will even use the New York Times phrase to impact our election that was leaked to david corn, michael isikoff, the washington post, to impact the 2016 election and more importantly, the russian disinformation hillary paid for put together by a Foreign National, that information was used to abuse the civil rights of an american citizen and used as a back door to not only spy on the Trump Campaign but then the trump transition and then the trump presidency. So if you are faieigning moral outrage over this, you cannot now ignore the biggest abuse of power that happened with that phony russian dossier that hillary put together. Thats made donald trump, it set him up. Stuart thats what we will find more about. Stuart, this is going to be an avalanche cascading down that will show hillarys investigation and the email server, the evidence is overwhelmi overwhelming, they had classified, top secret marked at the time on the server. It violates 18usc793, the espionage act. Then with the intent the media only cares about trump obstruction, but when you have 33,000 subpoenaed emails and you delete them and you acid wash the hard drive and then you have an aide bust up the devices with hammers and rip out hang on that would be the intent to destroy the evidence of the underlying crime which is the espionage act. Donald trump didnt collude. We have four separate investigations, ninemonth fbi investigation, the house intel investigation, Bipartisan Senate investigation and the Mueller Report cant be any more clear. What we will discover is the biggest abuse of power, they were all warned the dossier was dirty, it was never verified at the top of a fisa application the word verified is there, they signed it, bruce ohr, before the renewal applications every 90 days, they knew hillary paid for it, they didnt highlight to it the judge. They knew it was unverifiable because steele in an interrogatory in great britain, place you may know, literally said i have no idea if any of this is true. Want me to keep going . Stuart no. No, no, seriously. I wonder how on earth you keep all this up in your head. Because you do. I went to bed at 4 00 a. M. And came up with fox friends and Varney Company. Stuart let me tell you something. You have been so deadon about the economy. I watch your show a lot. What i love is the fact you know as i know when you cut taxes, when you deregulate, we are now Energy Independent for the first time in 75 years. We dont need twoo worry about e straits. Stuart bottom righthand corner of the screen, oil is up 1. 60 after two tankers were attacked in the gulf of oman. A few years ago, it would have been up 15 bucks because we now have energy independence. Thanks to President Trump. Listen, this is the first time in 75 years. Those countries we import oil from, many of them hate our guts. They despise us. When north dakota was doing well, i would argue opec artificially raised the prices to get them out of the business. But we have more Natural Resources, natural gas, oil, than all of these countries combined. Now, lets say you agree with me that Vladimir Putin is a bad actor and russia is a hostile regime. I believe it. Im all for bringing putin right down to his knees. You want to do it . We figure out the cheapest way to get our Natural Resources to western europe. Stuart its on its way. The utter stupidity, help make us rich again. Stuart you know what a hard break is . Thank you very much indeed. Good stuff. God, he takes over. Ashley oh, wow. You want me to be a boring guest . Stuart futures showing a gain of 80 points for the dow. 30 points for the nasdaq. One other story for you. The delivery battle. Its ongoing. Target going after amazon and walmart. Theyve got a new sameday delivery option. Big deal. No secret that marijuana is growing. Ashley literally. Stuart literally. The market for it is growing. New numbers show its on pace to surpass the nfl in revenue. Varney company is just Getting Started here. So chantix can help you quit slow turkey. Rkey. Along with support, chantix is proven to help you quit. With chantix you can keep smoking at first and ease into quitting. Chantix reduces the urge so when the day arrives, youll be more ready to kiss cigarettes goodbye. When you try to quit smoking, with or without chantix, you may have nicotine withdrawal symptoms. Stop chantix and get help right away if you have changes in behavior or thinking, aggression, hostility, depressed mood, suicidal thoughts or actions, seizures, new or worse heart or blood vessel problems, sleepwalking, or lifethreatening allergic and skin reactions. Decrease alcohol use. Use caution driving or operating machinery. Tell your doctor if youve had Mental Health problems. The most common side effect is nausea. Quit smoking slow turkey. Talk to your doctor about chantix. Stuart big news story of the day, the attack on two oil tankers off the coast of iran. The price of oil is up just 1. 70. Market watcher Michelle Mckinnon is with us. I dont think thats much of a hike in the price, given an attack on tankers. Why is it not up more . I mean, like you guys said in the last set, we are Energy Independent so that type of move or that type of explosion isnt going to move oil that much. In general, i think oil prices are going to go higher here. We will have a really great season of driving which actually americans are expected to spend 70 million more on gas this year as opposed to last year. I think in general, oils going higher and usually oil follows the markets. Markets are going higher here. Stuart pipeline. You like pipeline. I love pipeline. Master limited partnership, how you guys were talking about today about how we are Energy Independent and the Global Demands higher and people need oil, they need pipelines to transport that oil. Im very bullish on pipelines. Stuart bullish on pipelines. You dont think the price of oil will go back to 70, 80, 90, do you . You know, it could. I definitely dont think you will see 100. Stuart why should it . Look, we are producing, by the end of this year, 13. 4 Million Barrels of oil a day, or thereabouts. Thats an extraordinary amount of oil for us to produce. Texas, five Million Barrels a day alone. Think about all the demand in like india and china. I mean, they need oil. I think Global Demand is higher than people think. Stuart we will ship it to them. Exactly. You need the pipeline, there you go. Stuart thank you very much indeed. I want to stay on this story. I want to bring in senator john barrasso, republican from wyoming. Mr. Senator, you sit on the energy and Foreign Relations committees. If it turns out that iran is responsible for this tanker attack, how do you think we should respond . Well, i think they are responsible for this. We know that iran with their activity iies in the world, mak the world less safe, less secure and less stable. The straits of hormuz where this is happening, 30 of the worlds oil goes through that area. It is our Energy Dominance that we have in the Trump Administration that made a huge difference for the United States but we need to continue to show our power and our force around the world, and the president has done that, and thats the way you prevent additional attacks like this one and the one they had last month. Stuart i do want to leave thim for this, mr. Senator. The senate is going to try to advance the president s border funding request next week. He wants 4. 5 billion. Is he going to get it . I believe that he will, if the immigration system is broken, it has gone from bad to worse. The democrats have been awol on this. They want to fight the president rather than fix the problem. Even the New York Times has said give the president the money, the request hes made is reasonable, its responsible and it needs to get passed and signed into law. Stuart good stuff. Senator john barrasso, republican, wyoming, which is an energy state, thanks very much for joining us. We appreciate it. Thanks for having me, stuart. Stuart yes, sir. Look at futures. Bear in mind the price of oil is up. So is the stock market. At the opening bell ten minutes from now, the dow is up about 70 points and the nasdaq, up about 29. Solid gains. After the break or shortly, jamie dimon going after socialism, saying it will be a huge mistake for america. Then wait until you hear how Bernie Sanders responds to dimons criticism. Well be right back. Stuart oh, the plot thickens in the shooting of Major League Baseball star david ortiz. What is it, a paid hit . Ashley yeah, thats the latest we have out of the dominican republic. Six people are now being arrested in what appears to be a plot, one still at large. This group was paid 400,000 dominican pesos, 7800 u. S. That is it. The big unknown questions, who paid for it and why. They are trying to get to the bottom of it. He was shot in the back, it went through his stomach. He had a bleeding liver, he had portions of intestines and gallbladder removed. The Boston Red Sox sent a plane down there, picked him up, got him back, hes in a hospital in massachusetts recovering. Apparently he walked a little bit yesterday but still a long way to go in recovery. The question is, why did this happen. Stuart we will get an answer one day. One day we will get an answer. Lets move on to this. The cannabis industry is going to have revenues greater than the nfl by 2020. Susan next year. Stuart thats next year. Susan 15 billion. Almost equivalent to taco bells revenue as well, even for 2018, look at the revenue. 8. 6 billion to 10 billion. That is more than spending on ecigarettes, fortnite and goldfish cracker sales combined. Dont forget, also a big employer as well, indirectly, 175,000 to 215,000 jobs are connected with the cannabis industry. Dont forget, its not even legal in most states right now. Can you imagine the Growth Potential over the next few years when it is . Stuart a lot. Check that market, please. We are going up at the opening bell which comes in five minutes time. 90 points up for the dow, 37 for the nasdaq, half a percentage point gain for technology, the nasdaq. Back with that in a moment. 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. Heannouncer more details incoming involving volkswagen and the growing scandal. Dissatisfied customers filing complaints against the german auto maker. Because a vision softly creeping left its seeds while i was sleeping and the vision that was planted in my brain still remains within the sound of silence in restless dreams i walked alone narrow streets of cobblestone when my eyes were stabbed by the flash of a neon light that split the night and touched the sound of silence you have been so dead on about the economy. I watch your show a lot. What i love is you know as i know when you cut taxes, when you deregulate, were now Energy Independent for the first time in 75 years. Stuart let him go on, please. You know youve made it when hannity just appears on the show and dominated immediately. We received very nice praise. We like that, do we not . Ashley yes, indeed. You are revelling in it. Susan hes right, the u. S. Is, you know, oil independent. You have oil tankers in the straits of hormuz, it doesnt really boost up the price of gas anymore. Stuart which would you rather have, a president ial tweet which mentions my name or sean hannity on the show . Ashley a president ial tweet. Stuart five seconds. Here we go. The market will open. Its thursday morning and i can hear the bell ringing. They are going to start trading now. Here we go. 9 30 eastern time. We are up 45 right from the getgo. It will be more than that by the time were done. Up 55, 57, about a quarter percent up at the moment for the dow, 60 points up, 65. Theres a sea of green on the lefthand side of the screen. That means almost all of the dow 30 are up. I see one loser, pfizer. One more, goldman sachs. The dow overall up a quarter percentage point, up 70 points. Show me the s p, please. Where are we now . We are up about onethird of one percent. And the nasdaq is up. 4 . Its an escalation of gains here in percentage terms. The tenyear treasury, 2. 11 . The price of gold this morning is 1339. Now look at oil. Bearing in mind that two oil tankers were attacked in the gulf of oman just off the coast of iran. Ashley not that big a jump. Stuart not that big a jump. 3 , 3. 5 . 53 a barrel. We will get into that in a moment. Jeff sica is here, eddie gabor is back, susan li, ashley webster. Start with the tanker attacks. Jeff, thats not much of a response for the price of oil, is it . I mean, thats the president S Energy Independence thats doing that. Thats right. If this happened years ago you would have seen oil go through the roof but this is a directory bea tribute to President Trumps policy on iran. No matter what this turns out to be in the end, people are going to be confident we are going to handle it correctly and Keep Oil Prices under control, and not having as much dependence on foreign oil is crucial and standing up to iran means that oil prices will be reasonable for years to come. Stuart wow. You are off to a good start this morning. My goodness. I dont want to break the train. Stuart welcome back. Okay. Lets move on to this. Two Retail Stocks to tell you about. The Company Formerly known as restoration hardware, rosy forecast from them. The stock is up 25 . Lululemon, positive forecast for the future, online sales up. Their ceo says tariffs will only have a modest impact on the business and lululemon is up 4. 5 . Big gains for the two retailers. Eddie, i dont think you touch any retail stock. I do not like Retail Stocks. What this number shows is how strong the consumer is. We still have a very strong domestic economy right now. There is certainly some red flags out there that were watching cautiously like the inverted yield curve and of course, the tariffs with china and the trade deal. But this shows how strong the consumer is because these are products that are not they are highly priced products and people are paying them. Thats a testament to the wage growth and the Strong Economy that we currently have here domestically. Susan restoration hardware, rh as its now known, 32 of float held by short sellers, predicting the stock will go down more than the 21 declines they saw but they beat top and bottom line, even raising their forecast for the year. This is a typical short squeeze. Many have underestimated the consumer. Thats why their earnings expectations were low so when someone beats earnings or comes in line, you see the huge spikes. Stuart okay. Next case, facebook. Two stories on that company today. Number one, there are hearings on facebook today on capitol hill. Its all about those deep fake videos that appear online. Second story, new emails show zuckerberg knew of privacy issues. Lets not get into the weeds, jeff, but when you see all these problems for facebook, im not sure i would want to buy it at 175 a share. Facebook has done a lot of brilliant things but what we have seen recently is users are not the customers of facebook. They are the product. Thats what zuckerberg has to fess up to. The fact our data, and hes saying it and the insinuation is protecting privacy was not facebooks number one concern and it should have been. That is going to hurt a brilliant model. Facebook is a brilliant model but their inability to regulate means the government will come in and regulate and they will make life for zuckerberg and facebook miserable, and thats going to be a problem for shareholders. Ashley every day we get these stories, another black eye for facebook. The fact the top guy kind of halfsuggesting emails, knew prior to Cambridge Analytica that something was wrong. But look at the stock. Its basically flat and people are reading about it today. Its when they get in with that regulation and really start hurting the business model, thats when its going to have an impact. Susan i read this report in wall street journal. Not one email was set off in this investigative report by the wall street journal but this is nothing we dont know. The ftc has been negotiating with facebook for a multi, multi billion dollar fine. They said like 3 billion to 5 billion. Nothing is a surprise at this point. Stuart would you buy or sell it . If you owned it, would you sell it . I would stay away from it. They have a lot of regulatory risk. They are pricing the stock, its a slap to the wrist, a fine. I think right now regulators are going to step in and make life possibly miserable in the short term for these sectors. Stuart look at this. The dow industrials are now up almost 100 points. The dow is up almost at 26,100. We are up about a third of 1 in the first five minutes of business. How about big tech. We check that frequently. All of them are up except facebook, down just a fraction. Apple reached 194. Alphabets up six bucks. Facebook, as we said, 174. Microsoft, 132. Netflix developing a mobile game based on its hit show stranger things. Its not affecting the stock which is done a couple of bucks. The dow component j j and also along with colgate have been ordered to pay nearly 10 million to a california talcum powder cancer case. Both stocks up. Red robin, i think thats susan restaurant chain. Stuart moving higher. Investment firm vintage capital prepared to bid 40 bucks a share for it. They want to acquire 100 of the company. Its up six bucks, 26 at 32. That is red robin. How about target. I find this interesting. Offering sameday delivery for 9. 99 per order. Now, i can see that if i only order a couple of times a year as opposed to paying for amazons prime which is 20 for multiple deliveries. It is an interesting play. Ashley 65,000 items. Target is one of the retailers that has actually stepped up their game and been very competitive with amazon and walmart. You look at everything they have done from the online sales to the innovation they have done with the experience they are trying to create for shoppers in the store and now this, they have been very proactive and their stock price has held up quite well. Stuart you wouldnt buy them. They are a retailer. I know. Good point. Stuart okay, okay. Keep in mind, amazon, which is ahead with amazon prime, which you can get unlimited, but what amazon is striving for, they are striving for three, four hour delivery, one hour delivery, so that is really the trend going forward. Same day delivery is a thing of the past. It now has to be who can get it to your door in five minutes and amazons got a much greater likelihood of that. Susan especially when you are paying 119 already for your prime membership. Ten bucks a pop sounds kind of expensive to me. Stuart unless you organize yourself so you have 3,000 items with each delivery. Susan right. But look, target is also copying the prime mold del, offering a yearly subscription, 14 monthly if you want to join. I think amazon has already conquered this game. Its just playing for seconds, really. Stuart delivery is everything these days. Absolutely everything. Instant gratification. Stuart i never had anything delivered. Well, thats not true. Never had any food delivered. Never had groceries delivered. But somebody orders my amazon stuff, of course. Uber and lyft stop laughing. Uber and lyft, their drivers facing stricter regulation in new york city. I guess this is really about helping the yellow cabs, isnt it . Yeah, and this will eventually, de blasio does it get again, this will hurt the consumer, it will hurt all of us who are in the city trying to find a ride. Hes protecting those very costly and profitable medallions that the taxi riders have. That is going to ultimately hurt us. I think de blasio should stop thinking about them and start thinking about us and allow this open platform which works out very well for us. Stuart hold on a second. I keep saying that im going to buy uber. I havent bought it yet. The stock, im talking about. I havent bought it yet but im thinking about it. Should i . I dont know. I dont know what your portfolio looks like, stuart. On a shortterm basis, look, when you start to hear things like this with regulation, that these different states could come in and start overregulating, as an investor you got to be really cautious. One thing thats been proven from the state perspective is you overregulate and overtax, its going to hurt business and its going to increase prices for the consumer. Thats not good in any type stuart i just want to get into the brand new technology. Susan its impressive. Like the uber elevates, these moonshots, whether its flying taxis, flying cars, scooters, you name it, selfdriving. They are investing for the future. When you are a company thats never made a profit, you need growth rates to by the way sustain that. Stuart know what my producer said in my ear . So shut up and buy it. Uber is a great concept but i agree, theres the problem of the internal debt structure at uber, its onerous at this point. When they work through that, then you buy it. Right now from a market standpoint, there are some short term red flags. You need to focus on Balance Sheets. To his point, companies with not a tremendous amount of debt and good cash flow, strong dividends, is where i think you need to be on a shortterm basis. Stuart okay, okay, okay. I wont buy it yet. Oh, look, its 9 40. Jeff and eddie, thank you very much. Good stuff. We appreciate it. Check the big board. We are ten minutes into the day, its thursday morning and we are up 113 points. 26,120. You dont live in connecticut, do you . Democrats in connecticut proving theres nothing, nothing they wont tax. Ecigarettes to alcohol. Uber rides, you name it. They are taxing it. Wait until you hear the new taxes and fees. The full list of what they are proposing. They are taxing everything. Just one day after a doctored video of Mark Zuckerberg surfaced on instagram, Congress Holds hearings about those deep fake videos. Is there anything we can do to stop this . Because its so realistic. A programming note for you. Make sure to tune in to an encore airing of the new show First Responders live this saturday and sunday night, 9 00 p. M. Eastern right here on fox business. Well be right back. See thats funny, i thought you traded options. Im not really a wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade 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 but how do i know if im im getting a good deal . I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. Stuart solid gain, up 127, about half a percentage point. Got that. We all remember the deep fake videos, the one of Mark Zuckerberg, we showed it to you yesterday. Congress is going to look into those deep fake videos at a hearing today. Before we get to that, i will show you a clip of that altered zuckerberg video. Roll tape. Imagine this for a second. One man with total control of billions of peoples stolen data, all their secrets, their lives, their futures. I owe it all to specter. Stuart doesnt that look real . Ashley yes. Stuart he never said that. Thats a fake video. Look, i dont care what the hearings say in washington today, you will never get rid of these fake videos and they are so realistic, right . Yeah, absolutely. You have that fake video, pelosis video, there was a will smith video. He actually liked that one. He sent out a message complimenting people on it. The concept is not going away. The real issue is distribution. Stuart wait a minute, wait a minute, wait a minute. The real issue is in future, you can no longer trust any video that just comes at you. Nothing. You could have videos of me saying anything at all. You could be made to say anything at all. You cannot get rid of this. The genie is out of the bottle. I dont know what youre going to do about it. Yeah, absolutely. Fake images, fake video, thats not that new either but the issue here is these things can go viral. If i create a fake video and send it to my friends, who cares. If i create a fake video and send it to millions of people, then it becomes an issue. So its viral. Whos going to decide, you know, what gets distributed, what can go out in the world and thats the real underlying problem here. Stuart wait a second. If you made a fake video and posted it on facebook to millions of people, how would facebook know that its a fake and therefore take it down . I mean, they actually have no way of knowing that its fake. Essentially, the person receiving the video, the issue is how do they know where it came from, right, and so the problems with the consumer, in other words, you cant control the creation of content, especially not in the u. S. , but you can label where the content came from. Those are the kind of issues that i think regulators, facebook, you know, any of these big companies, youtube, that really have not had to face that, i think the world is asking them to now take a look and start to deal with. Stuart i wonder if they can deal with it. What do you think . I think they can. Look, you can divide on facebook, keep in mind, let me back up, when Facebook First started you actually had a Friend Network so you could send something out, it goes to 100 people. Then it was this point in time when you could create something and facebook allowed you to promote it and now it can go to a million people. That moment in time, facebook basically became a network. They became almost like a tv network. But they have none of the regulations of a tv network. So thats the issue here. They have to start labeling this content so that people know where did this come from so they can make an informed decision as to whether they want to give it any credibility. I think thats what regulators really need to focus on. Stuart excellent. Excellent. I always like to be specific about this regulatory environment. You gave it to us. Mark douglas, thanks very much for joining us. Always a pleasure. Thanks very much. Now, as most people know, Bernie Sanders outlined his view defined it, what is democratic socialism. He defined it yesterday. Then jpmorgans chief jamie dimon immediately responded to what Bernie Sanders had to say. Susan, what did jamie dimon say . Susan he said Socialism Means that the government owns and controls companies, they are used for political purposes and not for economic purposes over time. That leads to huge deterioration in the whole notion thats somehow going to be the course for america is a huge mistake. I just outlined what democratic socialism is. We heard from Bernie Sanders saying economic rights are human rights, that includes living wages, medicare for all, free tuition and the like. He also blasts the president and also republicans because what they practice is corporate socialism. Stuart thats what he says. Okay. Jamie dimon criticizes Bernie Sanders. Then as i understand it, Bernie Sanders comes back to criticize dimon. What did he say . Susan bernie clapped back. I didnt hear jamie dimon criticizing socialism when wall street begged for the largest federal bailout in american history, some 700 billion from the treasury and even more from the fed. To be fair, jamie dimon in the bank hearing this year, by the way, said we didnt want to take t. A. R. P. Money, we were forced to to send a message to the rest of the banking world its okay to take money and you will be fined. Stuart the banks paid it back with interest and profit to the government and General Motors did not. Thats another story. Check the dow 30, please. We have a rally on our hands this thursday morning. Most of the dow 30 are up and the dow is up 113 points. The congressional p. I. G. Report out this morning. They show earmarks, i thought we got rid of them, topped 15 billion last year. Wait until you hear how your money was being spent. We will be back. Stuart big number for you. 15. 3 billion. Thats the amount that was spent on earmarks. I thought we had gotten rid of them. Thats your money thats being spent. We have a couple egregious examples of earmark spending. 9 million to quarantine fruit flies. 13. 8 million to manage wild horses. 65 million for pacific coastal salmon recovery. That sounds like salmon were escaping from the big tanks in the ocean, doesnt it . Joining us is dan musa, republican from pennsylvania. Congressman, the pig book, thats what we are talking about, comes out every year but nothing changes, does it . Well, things are going to change. I cant speak about what occurred in the past. Those items do sound egregious. I am on the budget committee. The democrats wouldnt pass a budget this year which is a constitutional requirement. We are working on various appropriations but im going to do everything i can to make sure things like that dont happen. I have been against earmarks for many years and thats going to continue. I think many of my colleagues in congress feel the exact same way. Stuart doesnt this grease the wheels of congress . Isnt this how things get done . You want somebodys vote on a particular issue so you say okay, that earmark is just fine, go spend your 65 million on pacific coastal salmon recovery. You can vote my way. That is how a vote works, isnt it . Well, i think theres more transparency or at least i believe there is, and when the people hear about this prior to it being voted on, they are going to step up. In the end, i truly believe the people are the boss. I will tell you one thing thats not in this appropriations bill. Any funding at all for border security. The most serious issue our country is facing, they wont provide the 4. 5 billion that the president is asking for. Thats. 4 of this trillion dollar budget. Theres a number of egregious things taking place. Stuart i dont mean to put you on the spot and make you responsible for these earmarks, this spending. I mean, thats not your fault. I like to be responsible for ending them and bringing them to the general publics attention. Stuart exactly. You revealed this stuff. 9 million for fruit flies, pacific salmon, et cetera. You got any other egregious examples for us in the last 30 seconds . Well, last night we were up to 1 00 in the morning which is our job, and there were some transfers and all but there was absolutely nothing egregious. We will definitely scrutinize it. But i will tell you once again, the democrats didnt pass a budget. Democrat leadership has to work for the people. We are not funding the border wall. We are not passing usmca. Which is a huge progrowth initiative. The only reason its not passing is because frankly, Speaker Pelosi has politicized everything at this point and stuart its all about impeachment and investigation. Thats what its all about. Meanwhile, we are spending this money. Congressman they talk about the idea of getting a raise. Once again, the people are the boss. They should be more worried about getting fired. Stuart congressman, thank you, sir. Appreciate you being with us. Thank you. Stuart the issue of equal pay for womens soccer. Thats come back in the spotlight. The Womens National team sued over this. They want equal pay. Did you know the women of team usa are only paid 38 cents on the dollar compared to the mens team . We have that story for you coming up. Nwood tree, is where people first gathered to form the Stock Exchange 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. Were on the move. Hey rick, all good . Oh yeah, were good. Were good. Terminix. Defenders of home. Stuart thursday morning, you know what that means, we get the latest read on Mortgage Rates, last week the number was down to on 30year fix 3. 82 . Ashley 40 month low. Nothing changed, 3. 82, 4 a year ago. We have seen impact from incredibly low rates. Mortgage rates up 27 , biggest in refinancing mortgage, up 47 week to week. People jumping on and saying theres another million mortgages available now for refinancing and at this level, depending on what your situation is this makes sense. Stuart if you have adjustable right mortgage about to go up, why not go for certainty for 30 years. Scott martin is with us. Management guy. Low Mortgage Rate is essentially a big plus for the housing industry and for the economy, where am i going wrong . Youre right. Housing, you know, Balance Sheet as far as housing, stuart, for most of us is biggest asset. Thats important thing to keep in mind when looking at housing. Interesting thing, i tell you, guys, i like the certainty. The Housing Market is weak. You look at existing sales, housing starts, those are choppy at best if i can make a rhyme there. The Housing Market is telling us something. Housing has gotten pretty kind of wobbly. As this pans out with economic slowdown in the summer interesting to see how that affects housing prices nationwide. Stuart have millennials, youngsters, have they start today buy homes yet . No, they havent. Thats the underlying kind of cause of what we are seeing, some of the washout that was in Housing Markets a couple of years ago. Theres a true demographic shift going on with housing in the United States. The millennials are holding as we have seen studies, spending more on experiences versus longterm purchases. Something the market will have to work out. Supply will have to decrease over the years, maybe this is not crazy building phase that we have been in previous housing periods. Stuart hold on, scott, show me the market overall, please, didnt react much to mortgage figure because theres no change in mortgage figure, 26,100 or thereabouts, stay there, please, now this. Bernie sanders has layed out his vision for america, democratic socialism, actually his vision is europe. He wants to make us more like them. Forget socialist label, bernie is basically anticapitalist, he doesnt like capitalist money, interesting position for millionaire to take and bernie is a millionaire. Latest president ial campaign sent us on a third century economic bill of rights, here are the right that is he wants to give you, the right to job that pays decent wage, im here, i exist, give me a job and give me money, who defines living wage and living twaij wage the same as mississippi as in new york. Here is another, right to a complete education, complete, you know what that means, universal day care, prek and free college. Then theres right to affordable housing, who is going to do this . Bernie style green regulations add 40 of cost of building home in california. That suddenly bandage affordable, again, who pays . The results of the right to clean environment, dont forget the right to secure retirement. Long lists of rights but bernie wants the government to provide. First, it is capitalism and not socialism that provides highstandard of living and quality of life, second, we can already see the results of democratic socialism, look across the atlantic at europe, its sinking, high tax, high prices, high unemployment and very little innovation, europe has no answer of applesics apples iphone, amazon, not socialist america, bernie is essentially buying votes, look what you will get. What a fraud. Second hour of Varney Company is about to begin. Stuart lets get right at it, joshua, welcome back to the program, you heard what i have to say there, my point is capitalist provide goodies and not social mix, what do you say . Of course, it is, and even in the european states that have very generous welfare programs of all kind for people, they tend to capitalist sector because where the money is generated where they spend on all the programs. If you listen to bernies speech or read it, hes full of rage at all of the capitalists in america, they are the evil 1 , they are the oligarchy and in europe, other darker places in europe that hes always admired like in cuba and we heard song around the world, we will give you this and give you that to put me in power. Stuart joshua, honestly, i will draw a distinction between what goes on with venezuela and the soviet union, i think thats old fashion government owns everything, runs everything, thats old form of socialism. What bernie is aiming for is democratic socialism which has been put in place in large parts or much of europe. Thats where our critique should be because thats where bernie wants to take us, so i said, look, i dont think democratic socialism works in europe, you tell me, does it work in europe . Well, it works to an extent but the european economy and the World Economy is very much dependent on the u. S. Economy and some others that are the engines you ratted off a good list of businesses and the services and industries that have come out of capitalist world and then helped to make europe as rich as it is so it can find the funds to do all the welfare programs it has, then notice that bernie says, the first top of his list was a good job at living wage, well, if you look at europe they have astronomical unemployment. Thats why im not sure i agree with you that, stuart, about what bernie means, the business of guarantying everything is much more in the style of the communist countries that bernie has always or has always praised and recently said he wouldnt take back a word of praise. Yeah. Of those countries. Stuart we have them on country about moscow subway system back in 1980s. Back in 1980s. Would you take back anything you said about soviet union or cuba or nicaragua and he said flatly no. Stuart i stand corrected. Arm and arm. Joshua, thank you for joining us, sir, im sure you are going to have a lot of air time, joshua, thank you so much. Thank you. Stuart scott martin, you come onto this one, what do you think of Bernie Sanders and democrat socialism and making us like them over there . Its wild, i mean, any example like intump, denmark, sweden, stuart, they are trying to be more like us because of roots they have they are having trouble doing it but they sure are trying. I love the line that joshua said where hes full of rage, bernie full of rage of wealthy people of billionaires and millionaires, josh is right, he is one. Bernie is basically mad and angry at himself. Bernie sanders is a guy, stuart, who has got very big pension being paid to him, hes got iras with his wife, very nice profits from book deals, he has 3 homes one of which he paid for in cash, he didnt take a mortgage on it, the guy is doing very well and when he rallies against these wealthy people u gosh, hes rallying against people like himself, seems contradictory, doesnt it . Yes, it does, socialists have no humor, they are always angry, pounding the table and just they just dont like things. Not positive. Scott martin, thank you very much for joining us, sir. Lets go to story of the day, oil tankers attacked in the gulf, this happened overnight, whats the latest . Ashley early this morning, crew members from both ships are doing okay. 11 russians, 11 filipinos managed to get away safely, dramatic video showing the ships fire, what happened, torpedo, could it have been a magnetic mine, no one really knows. Tanker had crew of 21, filipinos, they were safely removed. Lets not forget the japanese Prime Minister abe was in tehran when this happened, some sort of deal when iran and the United States, looking to comment in Iranian Foreign minister who described suspicious, suspicious dont describe what likely transpired this morning, have no idea what hes talking about. He didnt elaborate, eyes on iran, month ago and couple of ships came under attack. Stuart picture of tanker on fire, we keep saying, you have that picture 10 years ago, the price of oil would have been gone straight up, 52 a barrel, 3 . Ashley incredible, isnt it . Stuart thank goodness for oil in america, thank you, frackers. Frank. Frack. [laughter] stuart still to come we will see what virginia congressman says of President Trump if they fired power information on 2020 opponent he would be open to hearing it. Okay, College Admission scandal, sailing coach has been sentenced, we will tell you what he got next and we just got Mortgage Rates 3. 82 on 30year fix, next hour, housing secretary ben carson, he wants to cut red tape to make home buying a whole lot easier, we will be back. Welcome to seattle. Where people are into coffee, tech, and retirement planning. The perfect retirement for me is doing the things that i want to do, not the things i have to do. Unlike seattle, less than half of americans participate in their Employer Retirement plans. So what keeps people more engaged in their retirement . I want to have the ability to easily transact online, great selection of funds, great advice, everything in one place. Helping people in their working years and beyond. Thats financial wellness. Talk to your employer or start a plan at prudential. The Doctors Office might mejust for a shot. O but why go back there when you can stay home with neulasta® onpro . 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I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. Stuart Company Formerly known as restoration hardware, rh, rosy forecast, pretty good for the stock, its up 20 , lulu lemon online sales up and ceo says the impact of tariffs on their business will be modest, that stock is up 4 bucks at 1. 75 there. Twitter, investment firm, cut price target all the way down to 25 a share, currently 35 down a buck 70. Lets get to College Admissions scandal, former coach has been sentence today 6 months of house arrest after taking bribes from wealthy parents, charlie kirk, turning point usa, charlie, 6 months of house arrest, what do you make of that sentence . I think its undersentencing. I will say, stuart, the story was concerning the story overall how far the culture we have gone with how the different pieces Work Together to get their kids into the elite universities, if you dont get into the schools, if youre less prepared an less successful in general world. Isnt this exactly what donald trump ran against, that the parts of the country have too much power, that now blue manhattan has too much power in Middle America and to not in my opinion to only put a slap on the wrist and 6 months of house confinement, i think undersentencing and i work on university, i work on college campuses, i know how hard students work to get into best schools, i think deplorable at best to use word that we are familiar with that. Stuart im familiar with that word way back when. I feel to talk about college, told a Million Dollars of bakery that they have tried to run out of business on fake profile charges. Its the first time that a college has been nailed for what they did wrongly, where are we going with this . This really opens the door for outside actors that have been smeared by universities. So the really quick version of the story is that there were some gentlemen that went to liquor store and committed a crime, happened to be african american, in college said they were arrested because of race when in reality they were arrested because they committed crime. Afterwards, the Student Senate passed measures, boycott the liquor store, none of which were true and university did nothing to get in the way of student mob and because of that, the liquor sales declined and over damages, of course, arose, they won and universities can be held accountable if they dont stop student mob on campus. Stuart opens other universities who may have done something similar to similar payments. Charlie kirk, president in the 2040 decade, i think. Thanks for joining us, thank you. Thank you, stu. Stuart did you know this . Will make even more, we will tell you how much marijuana will be worth, marijuana business, how much its worth next year, a lot. You sell information, what apps you use and how you use them, would you sell it to them because they are buying, we will tell you how it works and what they want from you, thats next. Thanksno problem. Youre welcome. This is the durabed of the all new chevy silverado. It looks real sturdy. The bed is huge. It has available led cargo area lighting. Lights up the entire bed. It even offers a built in 120 volt outlet. Wow. Plug that in for me. Whoa holy smokes oh wow and the all new silverado has more trim levels than any other pickup. Whoa oh wow very cool. Theres something for all of us. Absolutely. Its time to upgrade. laughter stuart 26,057 is where we are. Have a look at uber, very interesting stock, of course, testing food delivery by drone, the other news story on them is new york city is putting restrictions on them, you know, as i said this is an interesting company, its now 34 days, the uber ipo, ive talked about buying it every day since then but ive not bought it, slowing away here. My executive producer said last hour, shut up and buy it already. Well, i havent bought it yet and im not betting up on it. [laughter] stuart okay, let me show you, put the young man on the screen. I want to see him, please, i want the young man. [laughter] stuart there he is. That young man on your screen right now is an eagle scout and they are all on him, hes earned 138 badges, most scouts get 10 or 20, maybe, that young mans name is howard, howard, welcome to the show, as i understand it only badges that you can win, you got the loss, is that correct . 138. It actually began in the beginning, you always earn a bunch of badges and i joined scouting in 2013 and by 2014i had a couple of them. So i thought, i might as well go the rest of the way. Stuart how did you go do that, you got a badge for dentistry, did you go to the dentist all of a sudden, how did you do this . I think its great of merit badges they give you different things, careers that you may have never looked into, i went to military base and met military dentist and he taught a class on how he did crowns in vietnam, he used to do that kind of thing, you learned about certain things. Stuart howard, congratulations to you. Go to college and if so whats your subject, one of the 137 budgets that you have a badge for . Hopefully i go to college. [laughter] im trying to go into engineering, thats my main stuart sorry, the producer is talking to me, what are you going to do . Computer engineering. Stuart howard, thank you very much for coming to the show, exceptional young man and to win all of those or earn all of the badges, point something, merit badges, thanks for joining us. Former treasury official says trump will win in 2020 because of Strong Economy, but does prosperity hinge future prosperity does it hinge on china trade deal, steve is on the show and i will ask him. Let me ask you something. 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 we didnt get that. [laughter] stuart insist, producers, another tomorrow because susan has never heard of it. I better get on with it. Bori circumstances johnson, former british secretary he has won key vote for leadership of the British Conservative Party h. Ashley he won easily, he got 114 of those votes, the next and closest was jeremy, foreign secretary, michael gold 47, they go through series, down for 2 and then the party as a whole, 160,000 conservative members across the country will vote on the winner in early july, winner is expected to take over with theresa may, at this point Boris Johnson appears as unstoppable vote and they asked theresa may who did you vote for. [laughter] stuart i like boris, he says the brits are out of europe no matter what. Get out of here. Fire birr, they just opened for business, its online trading marketplace for freelance service, up 32 , 6 higher at 7 a share. Febirr, President Trump said he would be willing to listen to Foreign Governments if they had information about political rival, roll tape. If russia, china, someone else offers you information would you accept it or report it . I think you do both, theres nothing wrong with listening. If somebody called from a country, norway, we have information on your opponent, oh, i think id want to hear it. You want that interference in the election . They have information. I think id take it. If i thought there was something wrong id go maybe to the fbi if i thought there was something wrong. Stuart the media is saying president is open to interference. Whats your take congressman, the media says he has opened himself up all over again, what do you say . First Opposition Research is part of what you do when youre running for office, i will say this as intelligence officer, i think i can do a better job than Foreign Government thats unsourced. The first thing we learn at intelligence, consider the source and sorting, im always word about that and we have the argument on the other side when you talk about dossier going through fisa courts and russian dossier one sourced information, the argument about that, you have to be weary about information based on sourcing and personally not something that i would do. Stuart does open up the presidency, open up the election if you want to put it like that being played by a foreign power, a foreign power could invent something, sure they often do, feed it to a political candidate and thereby interfere. This is what they did, sort of russian and soviet tactic and a lot of countries publicly advocate for a country and privately fund or do other things in a psychological realm, right, or even the information realm to try to suede the populists, way of thinking, thats what theyve been doing for a long time, in 1984 russians came out against ronald reagan, some of the things that we have to look at. This is what Foreign Governments do. They have vested interest in doing that and you have to consider the source and based on my training it would be a bad idea to pick up phone from opponent. Stuart do you think the president made mistake . To be blunt, yes. Stuart okay, congressman, thank you very much, indeed, for joining us. With your experience, your contribution is valuable, we would like to hear it. It frightens me a little bit because ive been overseas, mr. Varney, hey, listen i love what we are doing but lets not do it. Stuart okay, denver, you call me varney i call you denver. Denver is fine just like the city, theres, you know, i think it means green meadow in english. Stuart okay with me. [laughter] yes, sir. Stuart thanks very much for joining us. Thank you, varney. [laughter] stuart we used to call this pocket and now called allowances, im told by Lauren Simonetti that they are becoming a think of the past. Creditcard. Com says only 40 of kids get allowance, thats low, thats low. I think so. Is it cultural problem or economic one, im going with the former. What would you give a kid an allowance for being on their phone or for actually doing Something Like mowing the lawn . Are they doing chores to get an allowance . [laughter] stuart sound like a mom. Lauren im sorry. I will pull back. Stuart giving amount of money per week. That allowed them to establish a savings. Savings account. Offered the opportunity to build cash for the child. Didnt have to do anything for it necessarily, it was just here is how you handle money, whats wrong with that . Nothing is wrong with it. Its just not happening as much, only 1 and 4 surveyed said participants teach them nothing about money. So we are not leashing about save, how to give, how to invest from our parents, i think its changing, though, because millennials are now parents, again xers are participants. Parents. Stuart you are almost a millennial. You have a 6yearold . No, no, almost 4yearold and 1yearold. So, yeah, 4yearold, i do. Stuart what do you say . Lauren i struggle with this, i do. I break all of the rules. [laughter] stuart what do you say . Mommy works for a reason and you cant have everything just because you say you want it and we do have a piggy bank. I teach her about giving. All of the time. Yeah. Stuart i know. Lauren see, yeah. [laughter] stuart lauren, thank you very much, indeed. Lauren do i get an allowance for this . Stuart put you on the spot tomorrow. Lauren bad parenting. [laughter] stuart i wont ask you, susan. Okay, we did get allowance and spent in candy shop. It doesnt teach you to save to be honest. Stuart i got allowance from my dad, i always saved, i never spent anything. I hate [laughter] stuart im not cheap. Ashley okay. Lauren pants that were cool in the 80s and 90s, susan . No idea. Stuart Facebook Says it will pay users for information on their data usage. Ashley they will, the most frustrating part about the story they want to tell you how much, they will have an app call study and it will collect information about which apps people are using, which apps you are using and how long do you use the apps, what kind of apps do you use the most, they tried this before, they rolled out similar apps and shut down concerns over privacy and violated apples rules and only available in google play, the question is, you know, they say they will not take your accounts ids and passwords, et cetera, et cetera, i want to know how much you are going to pay me, what is it 50 bucks, i have no idea. No. A dollar, not worth it. [laughter] maybe we will find out. Yeah. Stuart how about this, hud secretary dr. Ben carson, hes coming up on the show. Hes going cut red tape and make housing more affordable. I want to know how hes going to do that. I want his take on the low, low 30 rate fixed rate mortgages, 3. 8, i think thats pretty good. Connecticut, wants to tax everything, mansions to liquor, your uber, raise the taxes literally on everything. We will talk to the republican who ran for governor of that state, hes not, im sure hes not happy about this. Termites. Were on the move. Hey rick, all good . Oh yeah, were good. Were good. Terminix. Defenders of home. Stuart modest gain for the market, listen to this, the white house just saying moments ago that it looks like President Trump and xi jinping will meet at the g20 summit later this month. I would have thought thats a positive. We are still up 44 points for the dow. One of the dow components j j and another company on your screen colgate order today pay 10 million in a california powder case. Investment firm says itll bid 40 a share in process to acquire the company. Thats why its up 27 at 32 and moving up. Morgan stanley gave a rosy forecast about subscriber growth for upcoming streaming service, its called disney plus, look at that, disney up 2 , 138 on disney, we have connecticut as we reported, they cut their new boat sales tax in half, that produced a skyrocket for sales of boats, roll tape. Sales are going up by millions of dollars year over year since that tax increase, our unit volume is up 70 and we are getting into our busiest season right now. Based on increased sales and increase sales we need people in service departments, we have added 9 new people since this is taking place and these are, you know, goodpaying still jobs. Stuart what more you need to know . You cut sales taxes, you cut taxes and you grow, however, connecticut want to raise taxes on all kinds of things including a 10 tax, 10 single use of plastic bag, mansions. Look who we have with us today, he once ran for governor of connecticut, did you not . I did. Stuart whats going on . If it moves in connecticut, we will find a way to tax it. Stuart desperately need of money. Unfortunately this governor is doing it again. Hes going to spend 2 billion more, hes expanding the sales tax, hes hitting Small Business with another 150 million and because of that 50 people leaving connecticut every single day, we see merger, where does ftc put headquarters, boston. Ge moved out couple of years ago, we are the perfect example we are taxing where people are leaving the state. Stuart paying retirement, pensions of retired government workers, thats the big problem in connecticut. We have a state employed pension plan thats underfunded by 100 billion. Stuart ouch. 74,000 per family in connecticut, ties up 50 to have budget every year, discretionary piece is only 50 and it needs to be relooked at. Stuart thats incredible. If connecticut were a business it would be bankrupt, taxing more, driving people out, you lowered tacks, what does that do . Stuart we are just feeling the impact of tax reform law salt which would really hurt connecticut, now you have out of taxes on top of that, its going to be exodus. It already is, stuart, a lot of people waiting for last election to see whats going to happen. Governor, hes a business person, he had opportunity to show he could run the state and all hes doing is increasing taxes and increasing spending. Thats the day that youre done paying the federal and state income tax and you start keeping it yourself. Stuart you can afford it, connecticut is the richest state by income. The people that we are losing are the top taxpayers, people that create jobs and those are the people that we are driving out of the state which we can least afford to lose. Stuart would you come back again and tell us the latest exodus numbers . I will actually do that. Stuart whatever it is, im sure its going to go up. I will do that. Stuart thank you very much, sir. See you again soon. Coming up talk Interest Rates with steven moore, he says the fed needs to put them lower to boost lower inflation. Make his case on the program today. My take steven coming up next. 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 headline for you, marijuana stray could surpass the nfl in revenue by the year 2020 which is next year. Big numbers. 15 billion next year in revenue, thats how much the nfl makes, also how much taco bell brings in each year. So as for 2018, hit 8. 6 billion to 10 billion, thats the revenue in cannabis industry and spending on ecigarettes, fortnite combined. Marijuana cannabis only a small portion of it is legal right now. If you include black market 50 to 60 billion. Stuart thats not clear. I thought i explained it. Stuart last year or this year . Its going to be 2020. Stuart 15. 6 billion next year, nfl. 15 billion, probably more than that. Stuart equivalent of, the same as the nfl. Exceed 15 billion. For 2018 as i mentioned. Stuart we are talking 2020. Okay. All right, earlier this week the u. S. National soccer team beat thailand 130, womens world cup in france, but the women of team usa only played paid 38 cents on the dollar, this calls for equal pay. Attorney and trump 2020 advisory campaign. Good to be with you onset. Stuart i think that the womens World Cup Soccer Team should make exactly the same as the mens World Cup Soccer Team if and when they get to it next time around, what do you say . You look at the arguments they have made in past 5 or 6, 7 years, they are not bringing in the revenue. Stuart they are not . They are not bringing the amount of revenue. Certainly men have run 50 times. Stuart lets be clear, we are talking about the world cup, im not talking about soccer across the board. Im talking about world cup, this time around the women in world cup finals, last time around in the world mens world cup america was not in finals. Yes. How can you say mens revenue much more than womens revenue . They have making argument for many years beyond just this year and the specific cup but the men are bringing high amounts of revenue even on losing years so i think thats what people need to look at here because its not just about winning. Stuart so you would say no dont pay equal, portion of revenue from tv . I would say that they need to prove that they are being discriminated against under the law and i dont think thats necessarily been proved at this point. Stuart okay, im afraid we are out of time, i cant believe they dragged you all the way here, got your point of view and gave you 20 seconds. Im so sorry. Thats okay. Stuart thank you very much. Here is what we have coming up for you, Interest Rates with stephen moore, he says the fed needs to push them lower, we will get them to make his case later in the show. 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. 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Call now to learn more. Stuart a professor at yale predicts Election Outcomes and says economic growth, inflation and incumbency are the best clues as to who wins president ial elections. Its the economy and whether or not you are already in the oval office that makes the difference and tilts the vote in your favor. Now, we wouldnt be quoting him if he had not been right in the past. In 2008 he said barack obama would get 53 of the vote. He was right. He did. In 2012 he said president obama would get 51 of the vote and he did. In 16 he got the result right, trump won, but he got the vote count wrong. Hillary won that. Perhaps professor fairs analysis didnt take into account Donald Trumps unpopular tone and style but overall, the professors track record is pretty good. Lets apply it to 2020. Trump wins. The economy is strong, theres no sign of significant inflation and whether the democrats like it or not, President Trump is the incumbent. Donald luskin, a guest on this program just yesterday, reached the same conclusion. He applied his analysis to the electoral college. Trump wins. We bring you all of this because the political world is running hot. D. C. Is not talking about the economy or inflation. D. C. Is consumed with mueller, investigations, subpoenas and yes, impeachment. We are very conscious of the election in 18 months but the politicians spend little time on the economy and it is the economy that so often drives elections. Will that pattern hold. Will mr. Trumps economy override reservations about his tone and style . In just a moment, we are asking that question to Stephen Ratner who recently wrote a piece in the New York Times about the economy. He says, quoting, at the moment it appears to offer President Trump a meaningful tail wind. Hes a democrat, by the way. Stay there, please. We will get some answers for you as the third hour of Varney Company continues. Stuart we promised you answers. They will be delivered by none other than the man himself, Stephen Ratner, former treasury official and former auto czar under president obama. Welcome to the program. Thanks for having me. Stuart im used to seeing you on msnbc. I dont know what youre doing here. I was invited. I guess its in the spirit of your town halls you have to talk fwoet sid to both sides of the aisle. Stuart you just admitted you are on the other side of the aisle from me. I would not disagree with that. Stuart okay. We can still be friends. Stuart absolutely. Okay. Stuart you want to have lunch or something . The state of the economy, is that still and now the decider of elections . I think as you said in your intro, what people like professor fair have found in their models is theres really two factors that overwhelm the others. One is incumbency, which worked for donald trump last time because it was eight years of a democratic president and it will work again for him as a oneterm republican. And then theres the economy. The economy at the moment, as i said, is a tail wind for the president. Doesnt mean hes going to win. Its just a tail wind. Stuart is it a contest between a successful economy, prosperity, and the negative of what many people see as President Trumps tone and style . Is that the contest thats going on here . As we sit here at this moment, that is true. If you go back and look at what happened the last election, he underperformed the model by five Percentage Points roughly. He lost the popular vote. Happened to win the electoral college. That difference, i would account to his personality, his style, so that will hurt him. This time around, as we sit here today, he should get about 56 of the popular vote, in other words, two Percentage Points more than he should have gotten last time because the economy is strong and he has incumbency. Whether his personality overwhelms that, we will find out. This is the economy as we sit here today. If the economy deteriorates as some people think it might, obviously that tail wind diminishes. Stuart you are a democrat. I associate with you on the other side of the fence. What would you do about this . What can the democrats do other than hope for a recession or hope for impeachment . First of all, im a democrat but i say the facts as i see them and the facts are what i said. If i was a democrat, there are really two things they could push back on. One is his personality, his personal style, his integrity, some of these legal questions and so on. I dont think impeachment is the right thing to do. I dont think they are going to do it but they can certainly point out his shortcomings in this area. The second thing they can point out is the economy isnt working for everybody. The top line numbers, gdp growth, inflation, unemployment, are all great but if you go to certain parts of america, talk to certain americans, they are still not back to the wage levels they used to have, they still dont feel the last four years or last three years of the Trump Administration have really worked for them, so thats the way a democrat would push back. Stuart thats a tough road to hoe because theres not that many people in america whose wage levels on a realistic basis are not improved from three, four years ago. Theres not many people in that category. Theres not many but one thing thats not in professor fairs model, he presumably didnt think it, are wages. Wages are going up about 3. 1 , 3. 2 a year, a bit above inflation, but within that, look, when i worked on the auto rescue, there are a lot of auto workers or former auto workers who used to make 35 an hour who now make 15 or 20 an hour because those jobs are gone. President trump promised to bring them back. They havent really come back in any great number. So there are people out there whose situation is worse. Stuart obviously you watch the economy very closely. Do you think that the economy really needs a trade deal with china and if we dont get it, we could really slow down and even go to recession . I do worry about that. Im in the camp of people, i think its a bipartisan group, who believe china does not play fair, that they are protectionist, they steal i. P. , they spy, and somebody should be pushing back on them. That said, there is a risk on present course and speed that whats going on in trade generally, china being the biggest piece of it, is clearly slowing the World Economy, is slowing china, slowing us, slowing europe, slowing everywhere, and that could put us in recession. You have to weigh the two. Stuart big picture politics. The second and third runners among democrats are Bernie Sanders and senator Elizabeth Warren. I put both of them way out there on the very far left. Socialism plus. Hardcore leftists. Do they worry you . Remember, Elizabeth Warren says shes a capitalist. You can make your own judgment about that. Stuart come on. Would you want to see Bernie Sanders presidency or Elizabeth Warren presidency . I cant believe that. It would not be my first choice. Stuart you are a diplomat. You really are. Do you think joe biden makes it all the way through to the end . It will be a very interesting dynamic because the race is narrowing fairly quickly. Stuart you cant have six of one, half a dozen of the other. I think hes the most likely to, but i wouldnt bet my life savings on it. Stuart does he have the steam for a president ial campaign . I think he does. President trump is trying to put him in a corner of tired, sleepy, whatever he calls him, but joe biden has been doing this for a long time. He will have the steam. Whether or not he can prevail, we will find out. He will have the steam. Stuart would you like to speculate if youre right and trump wins a second term, what do you think will be the reaction of the democrats . The country will go into a deep black hole if trump wins the election. You agree with that, dont you . Stuart no, i dont. You dont really believe that, do you . Im not for it, as you know. If trump wins a second term, the democrats will continue to do what theyre doing which is to try to fight for the policies and the things they believe in. Stuart look, if you ever sort of run out of big audiences, you can always come over here and stay on this program. I thought your audience was huge. Im expecting to get thousands of emails and tweets when i walk off the set. Stuart its gigantic. All what the devil are you doing with varney . What is fox doing Holding Democratic town halls . In all seriousness, its a huge problem in this country if the two sides dont talk with each other. Thats we should talk more. Stuart thats why youre on the show. I like you. I have known you for a long time. Stuart we appreciate you coming on the show. Thank you very much. I want to check the big board because we lost the rally. We are up nine points. 26,013. Hogan gidley tells fox news that it looks like President Trump and xi jinping will meet at the g20 summit later this month. I would have thought that was a positive, not affecting the market. In fact, the market sold off a little bit from where it was. How about the big techs . Lets see whats going on there. We have a universal upside move. Apple 195. Alphabet higher. Amazon up 13 bucks. Facebook, 176. Microsoft, 131. The wall street journal says Mark Zuckerberg may have known about his companys privacy issues. Deirdre bolton with us this hour. Tell me the latest and explain it, please. Deirdre the very latest is the ftc began a probe on facebook more than a year ago and some of the email exchanges, we dont know exactly which ones, may show that Mark Zuckerbergs commitment to user privacy may be less ardent than what he has assured people on capitol hill and investors. This as we know, this whole Cambridge Analytica, how did tens of millions of pieces of user data end up improperly with Cambridge Analytica. The ftc began this about a year ago and now in going through this probe, it has unearthed some emails which say maybe Mark Zuckerberg knew and just didnt care. Our sources are also saying facebook would like to settle this quickly, quietly, as fast as possible. Stuart they want a dollar number. Deirdre they want to write the check and make it go away. Stuart its up 1. 58. 176 on facebook. Thank you. President trump says if a foreign power offered information on his 2020 opponent, he would be open to hearing it. I want to know what senator tom tillis thinks about that. Hes on the show. We will ask him. We have the latest read on Mortgage Rates. The 30year fixed Holding Steady at 3. 82 . That is low. Coming up, housing secretary ben carson. Hes trying to cut red tape behind soaring housing costs. Hes on the show. Of course, the big story today, your money. A new survey from the wall street journal says threequarters of those economists surveyed believe the feds next move is to cut Interest Rates. They say it will happen by the four. Stephen moore coming up on that as the third hour rolls on. Carvana is six years old this year and is the Fastest Growing place to buy a car in the nation. Its because we have thousands of people working hard to make our customers experiences the best. Its because we have tens of thousands of cars ready to be delivered to your doorstep. And its why hundreds of thousands of happy customers have ditched the dealership and bought their car online, earning us an average 4. 7 stars in the process. So if you didnt know about us before, you do now. Were carvana, and we want to give you the car buying experience you deserve. Stuart you want some more good news for the Marijuana Industry . Ive got it. Colorado passed a major revenue milestone. This is only five years after they legalized it for recreational use. Deirdre, how much did they bring in . Deirdre 1 billion tax revenue but since 2014, so 1 billion in tax revenue. I actually took a look at some of the numbers. Overall they have brought in more than 6. 5 billion but just as far as, thats just from sales. Stuart just revenue. Deirdre thats right. The state and local municipalities have a billion to spend. They are spending it on Mental Health services, youth outreach, antibullying programs in schools. In fairness, whatever you think or dont think about this issue, it does seem as if the state and municipalities, local municipalities, are putting the money back to work. Ashley which is great. Its 1 billion they didnt have before. Stuart thats right. Ashley it will probably go up. Stuart recreational marijuana. Thats something. Deirdre they were the first state. Stuart other states take a look at that, they will say why not us. Deirdre colorado is now anxious about its competitive advantage because nine other states have come on board with d. C. , more to come. That state is trying to keep its edge. Stuart not surprised. A billion in five years. Lets get to the middle east. Earlier this morning, two oil tankers were attacked in the gulf of oman. Very close to where four other vessels were attacked just last month. Its just off the coast of iran. Thats where the attack took place. Senator tom tillis, republican, north carolina, joining us now. Mr. If iran should be found to be responsible for these attacks, not saying they are, but if they were responsible, what should we do about it . Well, weve got to first confirm that. I think we are already actively working on it. Then there has to be a consequence, whether its economic sanctions or other actions, thats something i trust the president will pursue. Stuart im looking at a picture on the screen now. I dont think you can see it. Its an oil tanker with a major fire right in the middle of it. Thats one of the tankers that were attacked. I put it to you, senator, if this had happened say ten years ago or even five years ago, the price of oil would have spiked but now since we have a glut of oil because we are america is producing so much of it, the price of oil is only up, what, 1. 60. Thats it. Thank goodness for energy independence, right . Thats exactly right. Now that we are the energy su r superpower, it gives us a tool, nonlethal weapon which is very, very powerful and im very proud of this administration advancing responsible extraction of natural gas and crude oil, because its a very, very important economic and Strategic Military weapon. Stuart i do want to get your take on something the president said early this morning. Actually, it was released early this morning. It was an interview with abc. For the benefit of our viewers, roll tape, please. Reporter if foreigners, russia, china, somewhere else, offer information on an opponent, should they accept it or call the fbi . I think maybe you do both. I think you might want to listen. Theres nothing wrong with listening. If somebody called from a country, norway, we have information on your opponent, oh, i think i would want to hear it. Reporter you want that kind of interference in our elections . Its not an interference. They have information. I think i would take it. If i felt there was something wrong i would go maybe to the fbi if i thought there was something wrong. Stuart the political world is on fire with this. Whats your take on what the president said, mr. Senator . Look, the democrats are complaining about something the president said and they havent said a word about something that what Hillary Clinton did. Hillary clinton paid a former Foreign Agent to reach out to other governments to try and find dirt on then donald trump the candidate. That information was proven false but lets have a discussion about that first. The president said and whats been conveniently left out from most Media Outlets but yours, is he also said of course he would probably contact the authorities but if its Material Information that speaks to the credibility of a candidate, then i think you need to examine that. Always have to be mindful of the fact that russia, iran, china are looking for ways to meddle in our elections so of course the authorities should look at it as well. Stuart check the source. Senator tom tillis, thank you for joining us. Appreciate it. Thank you very much. Thank you. Stuart yes, sir. The stanley cup, why dont we cover that. St. Louis blues are the champions. They beat the bruins 41 in game seven. It was the teams first championship since the franchise started in 1967. Thats the coolest trophy in american sports. Thats my opinion. Ashley the biggest. Thats why. Stuart it was worth waiting all those years, im sure. Good stuff. The worlds top golfers preparing to tee off at the u. S. Open. We will take you to pebble beach. They have already teed off. Ashley rory mcilroy is already out there. Stuart we will take you there after this. Stuart 119th u. S. Open is being played in pebble beach, california. If you want to watch it, catch it on fox sports 1. Now, our own gerri willis is there covering it for us. Wait a minute. Looks awfully cold to me. Gerri its a little chilly, i wont lie to you. I got to tell you, we cant be on the course because im too noisy so we are over here but i got to show you something super special going on right now. We have players who come down these steps right here at pebble beach. Its the 100th anniversary of pebble beach. They will be walking right through here as we have seen all morning long. We have seen jason day, over here to the putting green is the next place they go. What are they doing . Practicing their putting, getting their act together, their heads in sync for this particular event. I have to tell you, all eyes are on brooks koepka. Hes not teeing off until later in the morning but he wants a threepeat. He wants his third u. S. Open, consecutive u. S. Open to win. Thats the excitement there. As you can see, everybody here kind of drilling down, getting the mindset ready and once they have that, they will walk right up these stairs and over to the first tee. Thats where it all gets under way. We have seen a couple of people tee off already. Its super exciting. I got to tell you, some of these guys are super nervous when you see them teeing off. Theres a crowd right on top of them. You can see their hands get a little shaky as they take that first swing and get ready to go. I have been to a lot of these, never covering them, and i have to tell you, this is the best access i have ever had, to be right here on the putting green with these guys as they get ready to go. I took some video earlier of jason day, you know, putting, getting ready to go. Its just fascinating watching what they do to get ready, the mindset that has to predominate as they get ready to go and why this is a critical tournament. We also see rory mcilroy oh, we are here all day. We will give you insider access as we are right now right at the putting green. Of course, its going to be covered all weekend long for fox. Stuart i know exactly what im doing this weekend. World cup and u. S. Open. Youve got the ringside seat, if i can put it like that. Thank you very much indeed. If you want to follow this, the u. S. Open, all weekend, watch the fox networks. You can even stream it live on fox sports. Com. Fox is the station this weekend for the u. S. Open. Also exclusively on fox, continuing coverage of the womens world cup. Next game day for the u. S. Is sunday. They will be up against chile. Catch that at noon eastern. Again, on fox, of course. Former epa official looked at joe bidens climate plan and says it proves hes not a moderate. Shes on the show momentarily. The markets right now struggling for a gain. 39 points, 40 points up for the dow. Heather zumarraga is with us. She says if bernie wins, markets will tank. Okay. Got that. Driverless cars. 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I want to talk china with market watcher heather zumarraga. Come in, heather. I read your stuff. You say that china needs a trade deal more than we do. Okay, i get that. Does that mean were likely to get a trade deal . Well, we are likely to get a trade deal eventually. Unfortunately, i dont think it will come at the g20 summit even if president xi is meeting with President Trump. These things dont happen overnight. But china is hurting a lot more than the u. S. Right now. As indicated in their economy. Last year they had the lowest gdp in 28 years. Their exports are shrinking and its just not looking good for china right now. I know the u. S. Is hurting, too, but they have a lot more to lose than we do. Stuart they have stamina, dont they . I mean, they dont have an Opposition Party back home in china thats going to bring down xi jinping. Apart from hong kong, hes got a pretty unified country. He can afford to last things out a little, cant he . Well, maybe politically, but economically, i dont think so. I think their country will desperately need to make a trade deal with the u. S. , because these tariffs are absolutely hurting them. We just recently increased the tariffs on 200 billion worth of goods from 10 to 25 . They have retaliated in the form of tariffs on u. S. Goods but eventually they will run out. We buy a whole lot more goods from china than they do from us. So yes, President Trump i think is right to be concerned about his reelection bid and the effects of not having a trade deal with china by that time, but i think xi jinping and the chinese economy also wants a deal. Stuart Bernie Sanders came out last night and laid out his 21st century economic bill of rights. Roll tape on that. But now, but now we must take the next step forward and guarantee every man, woman and child in our country basic economic rights. The right to Quality Health care. The right to as much education as one needs to succeed in our society. The right to a good job that pays a living wage. The right to affordable housing. The right to a secure retirement. And the right to live in a clean environment. We must recognize that in the 21st century, in the wealthiest country in the history of the world, economic rights are human rights. Stuart thats a long list of rights right there. Not a word on who pays for it. Just for a moment, lets suppose Bernie Sanders wins and puts in place at least some of his programs. What happens to the stock market, heather . If Bernie Sanders wins, the markets will tank. I know a lot of people, a lot of investors thought that would happen under President Trump. It did not. President trump is also not a socialist. But you can start with medicare for all. That would cost an estimated 32 trillion over ten years. That would hurt the pharma companies. Breaking up the big banks, for example, i know there is Systemic Risk and we have regulations in place to address that since 2008 but that would hurt the banks overall if hes going to break them down to levels where its no longer, they have no economic advantages. So if you are expanding welfare and you are increasing taxes, driving wealth out of the country on not just an individual basis but corporations like apple and exxon, other Companies Might move property and equipment elsewhere. If we go back to one of the highest Corporate Tax rates in the developed world, that would be a major problem for our economy. Stuart okay. Bottom line, bernie wins, market tanks, thats the opinion of heather zumarraga. Right. Thanks for joining us. Come see us again soon. Okay. We also have a former epa official with us. Mandy, i read your stuff, too. You are slamming joe bidens climate plan. Spell it out. Whats wrong with it, real fast . Go. Joe biden doesnt really know who joe biden is anymore. I think hes trying to find out how does he fit into todays extreme moderate party that looks to people like alexandria ocasiocortez to set out their goals. So his climate proposal just shows that hes willing to sell anything to garner their type of support, including the trade unions, their families and working class americans that historically formed a Central Point of relevance in his entire political career. Stuart you dont like the plan, obviously, and it is a radical environmental plan which borders on socialism. You dont like it but you could be accused of ruining and killing the planet if we dont do something drastic. Do you reject that argument . I absolutely reject that argument because today, without belittling the economy, with that trillion dollar plans you see with joe bidens climate revolution and some of the other plans, we are already leading the world in terms of clean air, water and reduced Greenhouse Gas emissions. We are making the economy and planet much better and its under President Trumps balanced policies, not extreme socialist policies that they are out there trying to promote. Stuart when you were at the epa, im pretty sure they were gungho for Climate Change. They really wanted to do something about it. In your day at the epa, they wanted the clean new deal, green new deal, didnt they . Yes, certainly. Some want plans like the green how deal but theres a lot of people at epa that actually understand the true mission of the agency which is to advance Public Health and the environment, not to become the agency of Climate Change or the agency of control which is what the democrats are actually proposing with their climate plan. Its not about protecting the environment. If you look at ways that you can actually measure the outcomes of some of their proposals, it has negligible impact 100 years into the future, where you are reducing temperatures by less than. 2 degrees celsius and reducing Sea Level Rise by less than two centimeters over 100 year outlook. It has nothing to do with the climate, has nothing to do with the environment and everything to do with control. Stuart bottom line, mandy will have nothing to do with the green new deal. We understand that. Thank you very much indeed. Appreciate it. Im going to update everybody on the fake meat behemoth known as beyond meat. A new study says that by the year 2040, whats that, 20 years away, more than half of all Meat Products will be plantbased as in fake. Beyond meat up this morning. Tyson foods, biggest meat company in the country, are joining the meatless craze. They will roll out fake Chicken Nuggets made from peas and flaxseed. That doesnt seem like deirdre dont forget bamboo fiber. Stuart never forget that. Its not a passing fad, is it . Deirdre it is not a passing fad. Analysts say this particular business, vegetarian, vegan choices could be worth tens of billions of dollars annually. More and more people want to eat this way. This is a huge pivot for tyson. You mentioned it but they have a process, Something Like 20 of the meat, whether its chicken, beef or pork in this country so they are finally getting on board. A lot of it is because you showed that ipo for beyond meats and impossible foods is growing, growing, so we cant ignore this trend. Tyson is saying okay, we have to address it. We will offer this. But as you say, analysts are saying by 2040, 60 of what we understand as meat will be grown in vats which seems not too appetizing, or be plantbased. Stuart its not a passing fad. We have news on uber eats. They are working with mcdonalds to deliver big macs by drone. How does it work . Ashley do they just fall out of the sky on your doorstep . Thats not what they are going to do. These drones will be landing in a designated area and picked up by uber couriers who will then bring it to you. They are also considering putting two codes on the top of the roof of some of these uber cars and the drones will land directly on the roof, then deliver it. Also, a big part of this is the packaging. How do you keep the food warm, how do you keep ice cream cold and how do you keep it all intact as its being bounced around. Thats what they are working on. Its going to be 8. 50 a delivery or something ridiculous but it will be tested in san diego which was selected by the faa saying all right, if you are going to do it, try it in san diego. I think its fascinating. Interesting to see how it works out. Stuart all delivery. Everything is about delivery these days. Interesting innovation. We are going to call these the two stocks of the day. Two retailers. Restoration hardware, upscale furniture store, lululemon, chic athletic wear people. Both posted pretty good earnings, very good earnings. Sales are up, rosy outlook for both of them. Look at them go up. By the way, lululemons chief executive says chinas tariffs will not affect them very much. Look at target, putting the prods to amazon and fed ex, offering their own same day delivery service, ten bucks per order. The stock is barely budging. President trump showing off the design for a makeover, actually, theres a choice of several designs there, a makeover of air force one. He wants it to be red, white and blue. How much is that going to cost for a brand new one . We will tell you later. First, we are talking to housing secretary ben carson. Mortgage rates holding at a 21month low. Hes trying to cut red tape to make housing costs lower. He is next. Stuart as we told you a few moments ago, President Trump is showing off designs for the makeover of air force one. I want to know two things, ashley. Number one, whats in this new plane and how much does it cost . Ashley 4. 7 billion for two new air force ones. There hasnt been a major redesign in 60 years. It will be based on a bigger plane, can you believe, a 787a. Whats really interesting is what you get. Whats on Board Air Force one. For instance, of course theres a president ial suite but theres a medical operating room and a kitchen that can feed 100 people at a time. This is as our producer said, just the white house, mini white house in the air. It is remarkable. Of course, all the telecommunications abilities it has as well. This is impressive. 4. 7 billion. By the way, the big story, red, white and blue instead of the classic sky blue and white which was put in by former first lady jackie kennedy. Red, white and blue. Stuart i sense President Trumps influence in the color scheme. Mortgage rates came out today, Holding Steady at a very low level, 3. 82 . Thats on a 30year fixed. Thats a 21month low. I want to bring in dr. Ben carson for this. Secretary of housing and urban development. Mr. Secretary, a, welcome back. B, this low Mortgage Rate seems to me to be a shot in the arm for the housing industry, isnt it . Its fantastic. You know, obviously it makes it possible for a lot of people who werent thinking previously about obtaining a mortgage to be able to get one. Its good for the mortgage issuers and for the servicers. Its basically good for everybody. But we do have to keep in mind that these things can undulate so we dont know what its going to be five years from now. But i encourage people to take advantage of the low rates, particularly the fixed rate. Stuart exactly. If youve got an Adjustable Rate Mortgage and its coming due to move up, why not think about 3. 82 for 30 years to come. Thats a fixed rate, never changes, you dont have to worry. Let me move on to the interview here. I know that you are trying to cut the red tape behind the soaring costs of housing. I have to point out to you, in california, 40 of the homes cost, a new home, is sticking to building regulations. You cant do anything about that because they are california rules. You have hit the nail on the head. Its a real problem. The places where we see the most homelessness and the most despair are the places that have the most regulations. Isnt it kind of funny, we are in a political cycle right now where there are a bunch of people who want even more regulations, more government control and others who say, you know, kind of let the Market Forces work. One of the things that we need to do is just take a look at these regulations. I think even the people who want regulations will agree that some of them dont make a lot of sense, like only people who are related to the owner of the house can live in it. Why was there such a regulation . Because years ago, people were concerned about brothels popping up in their neighborhood. Who is concerned about that anymore . You know, some of the density regulations and height restrictions. In california now you have to have solar panels. Come on, give me a break. Give people some credit for being able to control their own lives and know what kind of things they need. And you know, you look at the transportation. Stuart im just trying to say look, part of your solution is to open everything up, tell people what these regulations are. Sunlight as a good disinfectant. Thats part of your solution, isnt it . Education is key, particularly in dealing with nimbyism. Not in my backyardism. People, i understand, want to maintain the value of their home and we want to maintain the value of their homes, too. Thats why the government doesnt do things like they used to do in the 60s, building these gigantic complexes with no forethought or afterthought or maintenance. We dont do that anymore. Its much smaller Public Private partnerships, things that blend in with the community and with the culture. So your firemen and nurses and teachers can live in the same neighborhood where they work. That only improves the quality of the neighborhood. So theres education that needs to be done there as well. Stuart we think you should be getting more publicity, because you are affecting more peoples lives in a positive way than most other people in the cabinet and thats a fact. Dr. Ben carson, we hope you will come back. We are getting a lot and i just want to thank you, because you know, you are one of the people who really gets it and understands whats going on. I appreciate you. Stuart oh, thats very nice of you to say that, dr. Carson. As one of the great Brain Surgeons of the world, that is flattery for a mere painted actor fresh off the boat from england. Sir, great to have you on the show. Come any time you like. Any time you like. Thank you. Thank you. Stuart all right. Big story of the day, as it always is on this program, your money. Listen to this. A survey from the wall street journal says three quarters of the economists that they contacted believe that the feds next move is to cut Interest Rate. They say its going to happen by the four. Stephen moore on that, next. Were the slowskys. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Stuart it looks like the dow is frozen, almost, at a gain of around 50 points, because thats where we are and thats where weve been for a few minutes now. 26,000. We watch Interest Rates carefully. The yield on the tenyear treasury still around 2. 10 . Thats an historically low level. Its been that low this week. I want to bring in im going to call him our de facto Interest Rate guy, guy on the righthand side of the screen, stephen moore. Hes the distinguished fellow at the heritage foundation. Lets get at it. I will take that title. I like it. De facto Interest Rate guy. Stuart you got it. Lets just hope chair powell is listening. Stuart that, i dont know. But i do know that you want to lower Interest Rates and you want to lower Interest Rates now. Why do you want to do that . Well, look, the president supports, i think hes come out for a hundred basis point decline in rates. I dont know if im there. But i do think it would be very wise to cut, to reverse the december rate increase. A couple reasons. One is that if you just look at prices overall, their levels and commodities have been falling and the fed is below its inflation target now for four months in a row so theres no inflation worry out there right now. I just feel like you need to put some more dollar liquidity into the economy. It will help it grow without causing inflation. Now, people, when i say this, i did your show a week ago and people said steve moore is an inflation i dont want inflation. I just dont see any inflation out there. If you disagree with me, show me where the inflation is. Stuart wait a second. Its politics at play here. The president wants an Interest Rate cut, as you say, of a hundred basis points. Thats a big cut. I put it to you, he wants that cut so that the economy keeps on going very nicely all the way through the election. Sure he does. Every president wants that. Every wapresident s wanted that going back to richard nixon. Look, im not carrying Donald Trumps water here. I just think the tight money has probably knocked about half a percentage point off of growth. Thats a lot. And we can grow faster, stuart, without inflation. Why wouldnt we want to do that . Thats my case. Heres what i would propose. Do the quarter percent rate cut, i believe they are meeting next week, the fed, then see what happens. If we start to see prices creep up, stop. If you still have these low Commodity Prices and are still below your inflation target, then do another quarter percent cut. I dont want inflation, i want stable prices but i want to get back to 3 growth. We are only growing at 2 . Stuart very short, i have only got about 30 seconds left. Tell me this. Do you predict that at the june meeting of the federal reserve, they will cut Interest Rates . Im praying that they do. I mean, i think its exactly the right thing to do. By the way, if they dont cut rates, i think it will hurt the economy, hurt the stock market. Stuart got it. Im terribly sorry, it was rather short. I know that we usually do, you know, a few more minutes than this. Come back im your Interest Rate guy. I need more time here. Stuart everything gets compressed in television. Stephen moore, hes a good man. Thanks for joining us. Appreciate it. More varney after this. I watch your show a lot and what i love is the fact that you know as i know when you cut taxes, when you deregulate, we are now Energy Independent for the first time in 75 years. Stuart think should be getting more publicity because youre affecting more peoples lives in a positive way than most other people in the cabinet, thats a fact. Dr. Ben carson, hope you come back. We are getting a lot and i just want to thank you because, you know, youre one of the people who really gets it. I really do think we should talk more. Stuart thats why you came on the show . And i like you, we have known each other for a long time. Love fest. I will go buy loto tickets and be onset. Stuart jared is with neil on his program which starts now, right, neil. Neil thank you, my friend, a lot to explore, whais going on in the corner, good day in youre in oil, good day if youre in energyrelated stocks because attacks on oil tankers raising questions worldwide whether we could be looking at socalled black swan nightmare development, in the next 2 hours, sometimes more than i could handle, we have barack obama, senior adviser, white house adviser has served all 8 years in that capacity in history of its country, not only jared, hes that