Transcripts For FBC Varney Company 20240714

The trade fight drags on, theres going to be a recession by next summer. Right before the election. Both sides have dug in. All signs point to a lengthy fight. Thats that. Now the market. Following that huge selloff, we have a modest comeback this morning. Down 767 yesterday, maybe back up 100, 200 for the dow at the open this morning. The s p was down, what, 2. 5 yesterday. Its coming back this morning, less than 1 . The nasdaq which was down 3. 5 yesterday, back up 1 this morning. This is not a robust rebound so far. Modest, at best. Check Interest Rates. The yield on the tenyear treasury this morning coming in at 1. 75 . By the way, more rate cuts likely coming from the fed this year and rates in europe are still heading south. Hard to believe. Hardly any government over there pays any interest at all. As for the flight to safety, the price of gold this morning at 1478, up another couple of bucks. Oil, not calling that a flight to safety but a key indicator, 54 a barrel. So how you feeling . Nervous about your money . Stick with us. You will know exactly whats going on. Thats a promise. Varney company is about to begin. You only have an attack like this when you have a president who gives people permission to act on this hatred and this racism and this intolerance. It is shocking to me that he is so utterly selfaware and this is why from my perspective, he is not welcome here. He should not come here while we are in mourning. That would not be a welcome visit, given the environment that hes created over the past three, four years. He would not be welcome in my hometown. Stuart some democrats there adamant about the president not visiting the sites of the deadly shootings over the weekend, but ashley, hes going to dayton and el paso anyway. Ashley we believe so. No real confirmation from the white house, but el paso, texas mayor said yesterday indeed, he will be visiting el paso on wednesday. Still no word on whether the president , when he will visit or if he will visit dayton, ohio. It appears likely. Look, youve seen the reaction there. Veronica escobar, the democrat state lawmaker whose area includes el paso saying look, hes told the country we are people to be feared, people to be hated and from my perspective, he is not welcome here. This is a theme we are getting from some democrats, essentially blaming donald trump for the shooting. Tim ryan, ohio, as we saw there, we should quietly tell mr. Trump hes not welcome in the city because of his rhetoric on immigration. Bernie sanders jumping in, i say to President Trump please stop the racist antiimmigrant rhetoric, stop the hatred in this country which is creating the violence that we see. Stuart more on this later in the show, but i think trump derangement syndrome knows no bounds at this point. Ashley right. Stuart onward it goes. Lets get to the trade fight. The currency war with china. Stocks had their worst day of the year yesterday after the government in china set the yuan, their currency, at below a key level. The president s tweeting about it. Here is that late tweet. Massive amounts of money from china and other parts of the world pouring into the u. S. , for reasons of safety, investment and Interest Rates. Were in a very strong position. Companies are also coming to the u. S. In big numbers. A beautiful thing to watch. Market watcher Scott Shellady with us now. Obviously question. Does mr. Trump have the upper hand with china . Hes fighting a noble fight and thats great, but the problem is as my father would always tell me, dont pick a fight with someone thats got nothing to lose. Theres no state media thats going to be bashing xi jinping in china. Theres no state media that will be telling him what he needs to do and theres not going to be no derangement syndrome there. Weve got a problem where they are willing to do anything they can, whether that means sacrificing millions of people, too, to get something across. I think everybodys got the president s back here but he has to negotiate very acutely because this is something thats going to go on into the election, its not going to be a shortterm thing. Its going to be a bumpy ride Going Forward. I still hate the idea we are in a fight with somebody that doesnt care what they lose. Thats always going to be the overriding problem. Stuart hold on a second. Peter morici has joined us, economist. Same question to you. Does mr. Trump have the upper hand with china, in your opinion . No. China has enormous staying power. For the reasons outlined, theyre not going to budge until after the election. Whats more, they are getting a lot of help from people like biden and kamala harris. Basically, trump underreacted yesterday. Calling them a currency manipulator basically puts in process activities that will take more than a year to reach fruition. When china cut off agricultural imports completely yesterday, we should have responded with a 25 across the board tariff and told mr. Xi if he reacted incorrectly to that 25 , it could go higher. He needs to communicate to the American People that their behavior in places like hong kong and the northwestern provinces indicates how difficult it is to negotiate with essentially a dictator and that were not in for just a trade war, but rather, a complete reorientation of the u. S. Economy away from china. That this is likely to be the status quo at least until theres some change in the regimes attitude in china. Stuart gentlemen, im going to editorialize later on the program and take the opposite point of view. I think President Trump is in the very strong position and i think xi jinping is in a corner. Let me move on to the markets. Scott, you are the money guy here primarily, the trader. Is the worst over . No. Its not. This is something thats going to play on throughout the summer and into the fall and actually, maybe the next election. Weve got an issue on our hands where weve got a trade war and a currency war, and we are fighting somebody whos got nothing to lose. Thats going to be the problem here. While we see the dollar getting strength because we are the best economy in the world, we are going to be cutting rates because of that trade war and because of that currency war so were now in a spiral here that is going to be very difficult to get out of. We have to, again, be very very careful how we choose to use these rate cuts and how we are going to manage the economy Going Forward because this is here to stay. Stuart okay. Scott, this is for you. A president ial tweet just coming to us, here it is. As they have learned in the last two years, our Great American farmers know that china will not be able to hurt them and that their president has stuck with them and done what no other president will do and ill do it again next year if necessary. Scott, i think hes talking about paying farmers subsidies for lost business, right . 100 . We have a family farm, as you well know, and i will tell you, the farmers out there will tell you this. They would rather have open markets rather than a subsidy. Bottom line. So while the president does have some good will capital to spend there, that good will capital does run out. Stuart i want to talk to peter about Interest Rates. The yield on the tenyear treasury this morning, 1. 75 , still at that very very low level. The market is telling us there are more rate cuts to come. Now, i think the Silver Lining here is lower Mortgage Rates. Were at 3. 75 at the moment on the 30year fixed. Peter, is that Mortgage Rate going to head lower and if it does, i think it will, will it help the Housing Market . I think it could head lower but i dont know that it will help the Housing Market that much. Whats really holding back the Housing Market are millenials and genxers with the student debt cant buy in because they are servicing the student debt. The fact is the zoning requirements close in are so tough where the jobs are being created around the big cities that it makes building starter homes very expensive and not very profitable. So my feeling is there are structural problems in the Housing Market that are beyond the reach of the administration or the Federal Reserve. Stuart okay. Let me sum it up. Weve got a modest rebound for stocks. Interest rates holding pretty steady. And we disagree on who has the upper hand in the trade fight. I guess you do but thats life. Thats what makes it interesting. Stuart thats my show. Thank you very much indeed. Look at big tech. Boy, did they take it on the chin yesterday. This morning, again, modest rebound. But look at amazon. Amazon is up nearly 20 bucks. Alphabet is up eight. Modest rebound for big tech. Chip makers, please. They took it, again, they were way down yesterday. Back up this morning but it aint no full rebound. Most of them are up about 1 , maybe 2 for amd. The dow component disney, they report after the bell this afternoon. Ahead of that, they took a hit yesterday. Ahead of the report this afternoon, they are at 140, back there again with a gain of 2. 40. Quickly to the futures market. If youre just joining us, we are in for a modest rebound on wall street this morning. Then theres this. North korea launching two shortrange Ballistic Missiles overnight, thats the fourth weapons test in less than two weeks. How does that play into the china trade dispute . Were on the story. Some new york city businesses getting hurt by the increase in the minimum wage to 15 bucks an hour, cutting staff, eliminating shifts, raising prices. Others have closed down all together. It is the law of unintended consequences. And trump derangement syndrome. I think its at an alltime high after the shootings in el paso and dayton. I say it needs to stop. The trump 2020 campaign joins us next on that subject. Varney just getting started. Opportunity to experience thrilling performance. Now at the lexus golden opportunity sales event. Get 0. 9 apr for 60 months on all 2019 models. Experience amazing at your lexus dealer. Now you can, with shipsticks. Com no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. Sending your own clubs ahead with shipsticks. Com makes it fast easy to get to your golf destination. With just a few clicks or a phone call, well pick up and deliver your clubs ontime, guaranteed, for as low as 39. 99. Shipsticks. Com saves you time and money. Make it simple. Make it ship sticks. Were on the move. Hey rick, all good . Oh yeah, were good. Were good. Terminix. Defenders of home. Stuart north korea launches its fourth test missile in less than two weeks, so susan, does that affect the china trade dispute . Susan very good question, because as we know at the g20 summit, we had president xi and President Trump meeting facetoface, and President Trump headed over to north korea. As you know, china holds the keys to the north Korean Nuclear talks and i would say also the north korean economy as well. So this is the fourth in 13 days that we have seen shortrange Ballistic Missile test. Its important to note it is short range, because obviously, if its long range, that goes against a lot of the nuclear pact or this moratorium we have seen so far. Stuart i cant help but think beijing calls up pyongyang and says hey, fire off a couple missiles, please, because we have a sticky spot with trump and trade. Ashley we also have hong kong. We need to give them something to worry about. Stuart lets poke the bear a little bit. Susan i think timing is probably not controlled by beijing, but again stuart no . Susan no, i dont think so. You think theyre trying to launch Ballistic Missiles to test the u. S. china trade talks . Stuart why not . Susan is that also to flex the muscle saying beijing is in charge here and we have other pawns to throw into this negotiation . Stuart i would assume beijing is in control of north korea. They are a client state. I would assume the timing is perfect to interfere with the china trade dispute. Susan right. Stuart it seems to me. Im speculating. Susan fourth in 13 days, i would be very suspicious to see whether or not this timing actually is included in the trade talks. Stuart all right. Fair and balanced. Susan im just saying. Stuart President Trump now facing real backlash from the left over his plan to visit the sites of the deadly shootings, el paso and dayton. Trump 2020 Communications Director is with us. The democrats are basically blaming the president for the shootings. How do you counter that . Well, stuart, thank you very much for having me on here. What the democrats default position is no matter what the issue is to blame President Trump, whatever the issue is, its going to be President Trumps fault. In the case of these horrible tragic shootings in el paso and dayton, the democrats demanded that the president come out and denounce the shootings. He did. They demanded that he come out and denounce bigotry, racism and White Supremacy, he did and has done so on many, many occasions. You take, for example, cory booker, who was on tv yesterday, he said look, the president has to come out and condemn White Supremacy and the host said to him well, this is what the president said today, is that good enough for you, and cory booker said no. So we went through and we found in just a few minutes, found 16 different instances where the president going back to 2016 forcefully condemned racism, bigotry and specifically White Supremacy. 16 different times. And the democrats still are running around under this pretense that the president hasnt done anything about it, when in fact thats not the case. Trump derangement syndrome is alive and well, no question of that. Stuart i can just imagine when the president , if the president does indeed go to el paso tomorrow, the media will focus entirely on the reaction of local people who may, some of them, oppose him. Thats going to be the money shot for the media. Look, tim, ive got to look, in my opinion, trump derangement syndrome has reached an alltime high. I think its got to stop and i want to know how you think you can make it stop. Well, we just have to keep forcefully expressing what the president s record is and trying to counteract people when they completely misrepresent what it is that he has said. The president yesterday delivered a message, strong message of unity. He said that america will win in this situation following the shootings because america always does. It was a positive message, it was uplifting, he very reverently talked about the victims of these shootings and their families and the next thing you know, the democrats are out fundraising off of this, sending out emails trying to raise money on the backs of the people who were killed in these terrible situations. If the president does in fact go to texas and ohio, we do expect that the media will run to the political opponents and we saw joe biden on tv yesterday, for example, trying to lay these things right at the feet of President Trump. Well, by that very logic, then joe biden should be responsible for the dozens of Mass Shootings that occurred during the obama biden administration. That sort of logic doesnt work. There are a lot of factors that go into situations like this that cause someone to go into a crowded place and murder a bunch of their fellow citizens, a lot of it has to do with Mental Health. The president called for addressing Mental Health issues yesterday. He also called for red flag laws to make sure that people who show warning signs of this type of behavior shouldnt get access to firearms. Called on social Media Companies because we know people who are out there on social media giving real warning signs to the fact they may be a potential danger, those are real concrete steps that the president is taking but you know, its never going to be good enough because with the democrats, its always about politics and its always President Trumps fault. Just fill in the issue here. Doesnt matter what the facts are. In their mind it will always be the president s fault. Stuart you will always be fighting with the media because they will always hate him. Youve got a tough job. Thanks for joining us. We appreciate it. Thank you, stuart. Stuart back to your money. This is the day after the big selloff yesterday. Modest rebound. Look at that, the dow is up about 260. Nice gain for the nasdaq. It was down 3. 5 yesterday. Back up maybe 100 points this morning. Thats 1. 3 . Chaos at a democratic socialist convention. The use of gendered language causing the event to grind to a halt. Just wait until you hear this. Youll be laughing. What do you look for when you trade . I want free access to research. Yep, Td Ameritrades got that. Free access to every platform. Yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. No hidden fees. No platform fees. No trade minimums. And yes, its all at one low price. Td ameritrade. On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. 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 the great state of georgia, the young socialist convention actually ground to a halt over the use of gendered language. Youve got to tell me more. Ashley this hardened group of socialists, they say democratic socialists but they are really socialists, apparently they are a little tender as well. Listen to this. First of all, james jackson, sacramento, i just want to say can we please keep the chatter to a minimum . Im one of the people whos very very prone to sensory overload. Theres a lot of chatter going on. Its making it difficult for me to focus. Thank you, comrade. Is there a speaker point of personal privilege . Yes. Please do not use gendered language to address everyone. Ashley guys, he, him, personal pronouns is the way to go. Thats kind of a fascinating insight. Well, it is. People have compared it to monty python, the office and all these different things. There you have it. Stuart i was brought up in england in the 1950s and 60s. I remember people calling each other comrade. Ashley oh, yes. Yes. Stuart now its just plain funny. Susan they have problems stuart unless they win. Susan their problems with sensory overload, imagine what we are feeling every day. I dont like that gendered language. Stuart okay, guys, here we go. Check the market, please. We are going to go up, modest rebound. Looks like a huge rally. Up 270 points on the dow, up 100 on the nasdaq. But remember, we were down bigtime yesterday. That is a modest rebound. We will take you to wall street, see whats happening to your money, after this. Limu emu doug mmm, exactly Liberty Mutual customizes your Car Insurance, so you only pay for what you need. Nice but uh, whats up with your partner . Oh we just spend all day telling everyone how we customize Car Insurance because no two people are alike, so. Limu gets a little confused when he sees another bird that looks exactly like him. Ya. Hell figure it out. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Content on their endless quest, to nowhere. S, run hopelessly in their cage. But perhaps this year, a more exhilarating endeavor awaits. Defy the laws of human nature,at the summer of audi sales event. Get exceptional offers now. 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 the wall street journal says the minimum wage hike to 15 an hour in new york city really hurts some small businesses. Susan . Susan so as we found with seattle as well, looks like the cost to benefit is 3 1 for the ratio and we are six months in as we raised the minimum wage to 15 an hour so it went from 9 to 11 in 2015, 11 to 13 and 13 to 15 by the end of this year. What they are finding is that the jobless rate is higher in new york city than it is statewide. We are sitting at 4. 3 . Compare that to new york state at 4 and what theyre finding right now is employees are being cut, jobs are being lost, less hours being worked because its too expensive to pay them while business is trying to make money as well. Stuart told you. You could see this coming a mile off. What about technology . Thats taken over instead. All right. It is 9 29. 55. In five seconds we open the market. What were looking for is how big a rebound from yesterday. Here we go. We are trading now and we are up 114, 113 points right from the start. 122. We have not yet opened all the dow 30. Up 130. Looks at this point in the first few seconds, we are up about a half percentage point after yesterdays better than 2 drop. Okay. Thats the dow. Show me the s p. That is up twothirds of 1 . A better rebound there. The nasdaq was down 3. 5 yesterday. Back up 1 this morning. Check Interest Rates, the key barometer is the tenyear treasury. 1. 76 . Not much change from yesterday. The price of gold, that is a flight to safety, up a little bit more. 1,478 per ounce. Sixyear high. Bitcoin, down this morning. I dont know whether to call that a flight to safety or not. Susan alternative. Stuart 11,700 a coin as of now. Stop sighing. The price of crude oil, 55 per barrel. Not much change. Mike murphy is here, d. R. Barton is here, susan and ashley of course. Mike, is the worst of the selling over . What do you say . I dont think so. I think we could have some more selling coming in. It really depends, not to punt on this one, depends on the headlines we will see today. If we see headlines from President Trump or out of china that talk about more fighting, we are the markets are going lower. We had more than a 5 pullback off recent highs so if it looks like this is escalating there will be more selling coming in. Stuart what do you say . Good that we get this bounce today. Yesterdays low was within about a point and a half of a very important technical level from earlier in the year in the s p. If we get below that, we could have some more serious problems. I think if we can have steady as she goes, we have a good chance to rebound from here but im with mike, we are going to be under a lot of headline risk in between now and then. Stuart headline risk has been a problem for awhile. Susan . Susan monday selloffs are usually proceeded by rebounds the next day. There has been criticism lobbed at Jerome Powell that he is a trade war enabler because now the futures are pricing in an 89 probability of two rate cuts this year, up from 39 just last week. Stuart okay. Then we have Morgan Stanley says we may get a recession in about nine months, by next summer, if the trade fight drags on. What do you say to that . I buy their premise. Its not our economy. He said the global, we will get a Global Economic recession. That means global gdp will drop for two quarters in a row. I do not believe we can get a u. S. Global recession in the next nine months unless something really nasty happens. I dont buy into his premise for us. But for the globe, i can see it. One thing to remind viewers at home, recessions happen. They dont all look like the 2008 financial crisis. If we get a slowdown for two quarters, negative growth would be defined as a recession, but its not always a massive negative like we saw in 2008. Stuart it would be real bad news politically for President Trump. A slowdown in the summer of next year. Couple of months before the election. Not good. Ashley hes counting on the economy. Stuart there is pressure on President Trump, political pressure, fix this, dont let it get out of hand because you dont want a recession or slowdown right before the election. Ashley it may play right into chinas hands, who wants it to drag on. Stuart i think President Trump still has the strongest hand here. He most certainly does. I will agree with you because when you say fix this, fix what . Unemployment . Fix wage hikes . Fix the market . Theres a lot that hes that has been fixed already under his watch. Stuart but he needs to fix the trade fight in some way or another to avoid a real slowdown. Susan maybe hes representing his base as well in the rust belt and also the farmers across this country that he is standing up to china, which an administration hasnt done in decades, right . Ashley but as scott pointed out, they would much rather have a trade deal than subsidies. Shortterm pain is fine but its getting more and more painful. Stuart the president has tweeted this morning about subsidizing farmers. I think that was in his tweet, subsidize farmers because we dont want those guys to suffer. Got it. Look at big tech. Boy, if ever there was a group that took it on the chin yesterday, it was big tech. This morning, i think weve got a modest rebound. Yeah, we do. Apple is up 2 . Up 1. 5 across the board. Not eradicating all of yesterdays losses by any means. Look at that list. Apple, amazon, facebook, google, microsoft. Any of them you would buy . I want microsoft to come down a little bit. I wasnt smart enough to buy it lower. I like microsoft. Amazon down for five Straight Days, has lost 12 of its value. If you have been looking for an entry point on amazon, we own the stock. If you are looking for an entry point, right now is a good time to buy. Susan Short Interest in the fangs are at a record low according to merrill lynch. When there is a mentality of everyone trading into the same stock when the markets come down, these are the stocks that usually sell off probably the hardest. Stuart the number of people betting that big tech goes down susan alltime low according to merrill lynch. Stuart interesting. Check the big board. We are five minutes into the session and up 160 points. We were down 760 yesterday. How about the retailers . Or chip makers. Okay. Chip makers, they are up this morning, taking big losses yesterday. Modest rebound. Same story with the retailers. Clobbered yesterday. Not much of a rebound. Walmart, up slightly. Kohls up three cents. Macys, nordstrom down. Target unchanged. No rebound there. Got to say that. Blue apron, remember them . They lost less money but still down 3 . Sea world, their Sales Revenues falling short. Theyre buying back some stock. That goes down well, up 6 there. Marriott gave a not so rosy forecast. They are taking 126 million charge for the data breach. They are still up 60 cents, about 130 a share. Disney reports after the bell. They are a dow component. They are the king of the box office, the streaming service, disney plus comes real soon. What are you expecting in the report . I think nothing too crazy out of disney but its going to be a positive report. I want to see the guidance they have around disney plus. I think disneys a Great Company to own for people watching at home, to own this stock, because you talk about innovation a lot around big tech. How about some innovation for disney. How about what disney has been able to do through acquisitions, through news services, through the theme park new rides. Disneys a Great Company. Its going to be really interesting to see what they do talk about, that streaming service, their plus service, because lets talk pixar, marvel, star wars. If they build a moat around those names and Start Talking about were not going to let anyone else have those, or have limited access to those, they are going to drive lots of viewers into their lowpriced streaming service. Thats what investors want to hear. Susan as supported with that lower price. This is a quarter also where they are going to include the avengers marvel, that was recordbreaking, 2. 7 billion in Global Box Office receipts. Disney already owns 40 of the box office and they made more this year than the record they held back in 2016. Stuart 4 00 this afternoon on this network i will be anchoring. Stuart youre doing it . Im on it. Stuart all right. I want to hear about the streaming service. We all do. Stuart thats 4 00 this afternoon. Whats next . Okay. Cbs, taking a cue from amazon, offering a primelike subscription service. 48 a year gets you prescription drugs and other items delivered for free. That seems like a good idea. Its a good idea for the consumers but im afraid its too little, too late. Cvs and the rest of the big box Pharmacy Companies have been hammered. This is something good from a consumer perspective, its going to help people who have to get a lot of their pharmaceuticals and they choose cvs. It will help a lot of marginalized people i think to not have to run out, find ways to get there. Stuart delivery is everything. So many people in this country are already prime members. Big question, how many Subscription Services will the consumer sign up for . If its 90 here, 40 there, it adds up. Stuart like streaming services. How many you going to sign up for . You will end up paying more than you paid for cable. One of these days, someone will come up with a great idea to bundle all the streaming Services Together and sell it in one package. A lot like cable. Stuart is that your idea . That was cable. Thats what we broke up. Stuart i know you are an early investor in most of these things. Anything coming to mind . Im looking for great ways to bring individuals, consumers, better content at a lower price. Stuart what a guy you are. Please, make a profit. Stuart delivery is everything. Listen to this. Shake shack and grub hub are teaming up for nationwide delivery. Look, may i make a point on this, please . This is not great for the restaurants. The Delivery Service takes a piece of the bill. Thats a piece of your profit. Susan i will disagree with that. Mcdonalds just teamed up with door dash, we have uber eats and they say its a 4 billion business for them, delivery on its own. Yes, you pay a commission but can you imagine, the ticket prices you get back in receipts . There is a built on added value for delivery. Ashley you make up with volume, thats the whole point. You may be paying a little piece every time but if you catch on, theres a lot of people ordering online who have it delivered, you make up for that. Stuart is delivery that big . Susan yes, it is. That big and growing, stuart. Stuart city dwellers, i got that. Out in the suburbs and rural areas, you think im going to get mcdonalds delivered to my farm . You may not, but there are plenty of people who want to have it done. Its a big thing, even if its a loss leader, it drives more traffic into the stores. Shake shack, look at what they have done competing against mcdonalds. They have done a great job. 1 or 2 same store sales growth in a restaurant, double digit growth in delivery. Stuart okay. Okay. Okay. Get off my lawn. Mike and d. R. , gentlemen, thank you very much indeed. Lively performance today. Quick check of the big board. I will stick with this. It is a modest, a very modest rebound. We are up 180. Down 760 yesterday. Amazons chief jeff bezos is cashing out. He sold 2. 8 billion worth of amazon shares in the last week alone. Its not clear why. Bezos had previously said he plans to sell stock worth about 1 billion each year to fund his space company. That is blue origin. Sure looks like we are in the midst of a new cold war, u. S. And china. Theres no sign of a quick fix. Everybody is going to feel some pain. My take on that at the 11 00 hour this morning. Hong kong sending a warning to protesters that all criminals will be held responsible. Dont underestimate our security forces. Next, we have one of our china watchers. I want to know when and how this chaos in hong kong ends. Theres a company thats talked to even more real people than me jd power. 448,134 to be exact. They answered 410 questions in 8 categories about vehicle quality. And when they were done, chevy earned more j. D. Power quality awards across cars, trucks and suvs than any other brand over the last four years. So on behalf of chevrolet, i want to say thank you, real people. Youre welcome. Were gonna need a bigger room. Stuart where are we now . Modest rebound in place, up 200 points. 25,900. Fifth third bank corp, rather unusual name but its a bank, theyre going to raise the minimum wage for nearly 5,000 employees. They are going to pay 18 an hour and they start october 28th. The stock is up a little. The luxury new york retailer barneys bankrupt. Are they another casualty of the retail ice age . Whats their problem . Susan seems like it. Well, exorbitant rents, for one. They said they had to pay double for their manhattan rents last year, 27 million. Also of course, the move and shift to ecommerce. They are facing threats from real real. Com. Obviously a lot of people have been shifting their purchases to online instead. They have a 75 million loan, meaning they have 60 days to find a buyer or they will liquidate. This is the second time barneys has gone under chapter 11 protection, right . Stuart you look at some of the main streets in new york city, they are ghost towns. Ashley they are. The rents are out of control. Stuart tenants have moved out. Rents are out of control. Susan the landscape is changing on fifth avenue. Henry bendel, 123 year retailer shutting down as well. Amazon is looking to get in because there are reports they will get into the lord taylor store. Stuart you call them retailers but on a different front, lord taylor Standard Department store. I have to get to hong kong. I would love to go back, actually. The Chinese Government vows to punish protesters. Phil yin is with us, a former cctv America Business anchor. Phil, where and how when and how does this crisis in hong kong come to an end . Can you give us some inside information here . Good morning to you from seattle. Its good to be with you, stuart. You know, just 12 hours ago, we did a press conference from beijing regarding hong kong. We had the dow futures pointing to an opening of negative nearly 600, and there was some real concern that perhaps that beijing might take some extraordinary steps, as you hinted at earlier, and in that press conference from beijing, they just reiterated the same thing they did a day ago, which was a small group of protesters that are violent are becoming increasingly a bigger and bigger concern. They also highlighted the impact on the economy with respect to retail sales and international travelers. As we talked about last time on the show, you know, weve got this trade war, its turning into a bit of a Foreign Exchange war, now we are into a bit of a political war and i think hong kong is part of that nexus. Stuart when does it come to an end . Do you see any early solution here . One of my sources inside the Hong Kong Government highlights the fact many of these protesters are collegeaged and high schoolaged students. One of the strategies that some people seem to believe is that perhaps that once School Begins in a few weeks, that the protesting will sort of calm down. The other option is the fact that you know, the last time around in 2014 with the umbrella movement, they basically just wore down the protesters so after protesting for day one and day two and day three, it sort of dissipated on its own, and perhaps thats part of the strategy thats being thought about from the hong kong side. Look, everyone i speak to in hong kong, while we want freedom of speech and freedom of the press and all these things which are fantastic, it takes time, and china moves at its own pace. Stuart okay. Real fast question. Do you think President Trump has the upper hand in this trade fight or xi jinping . I think in this trade war, i have been asked this a lot of times, i think both sides are losers, honestly. I think President Trump and the white house perhaps, you know, poking the bear over in china, and you know, we can argue about the details of the negotiations but from chinas perspective, let me ask you this, and i will ask susan this as well, whats the incentive for china to have a big, quick deal any time soon . They are probably better off having what i call a mini deal. If they had a mini deal, both sides could save face, it would be better for businesses on both sides and at least that would be the beginning of some sort of larger compromise. Stuart you just have to wonder whether President Trump will be in favor of a mini deal. Well see about that. Phil, thanks very much for joining us. See you again soon. Thank you. Lets get back to your money. The rebound day, very modest so far. Dow industrials now up 150 points. There you have it. 154. 25,800 is the level. Thats a modest rebound. President trump blaming violent video games for leading to Mass Shootings like el paso and dayton. But is that really a fair criticism . We will ask the question from someone who knows. Hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. We must stop the glorification of violence in our society. This includes the gruesome and grisly video games that are now commonplace. It is too easy today for troubled youth to surrounded themselves with a culture that celebrates violence. Stuart all right. President trump there calling out violent video games following the weekend shootings. However, a study found that nearly all mass shooters had these traits in common. Here we go. Many experienced Early Childhood trauma. Almost all had reached an identifiable crisis point. Most have studied the actions of other shooters and they all have the means to carry out their plans. A commonality of all shooters. Violent video games not one of the traits that shooters shared. Joining us now is chieh huang. Welcome back to the show. I take it you will agree with the study and say violent video games are not a backdrop to the shootings. Go. Absolutely. There isnt really a lot of compelling evidence to suggest that vial ents video games actually beget Violent Crime. What i will see is back in 2015, the American Psychological association made this connection between violent video games and increased aggression, decreased empathy, but its really important to keep in mind the aggression they study is not what we are talking about here. Aggression could be anything from hurling an insult to somebody or offering them, giving them a little bit of a shove. There isnt really a lot of research on Violent Crime that is connected with video games. To really hammer home this idea, i want to make two points. The first is fwhak back in the video games went up but the incidents of youth homicide went down from 16 to 9 per 100,000. This started around 1993. Keep in mind that 1993 was the first year that mortal combat 2 came out, so that doesnt make sense. The second point to keep in mind is that if you look at Violent Crime and Mass Shootings, keep in mind the violent video games we manufacture in the United States did ship overseas to europe, to south korea, to japan, to australia, yet the frequency of Mass Shootings we have in this country is a very distinctly american phenomenon. I dont think its fair to lay blame on the industry. Stuart i take your point but other countries do not have the gun ownership and level of gun ownership the United States has. Australia, europe, japan, is nothing like it is here. Let me ask you this. You may not be able to have a direct causal relationship between a video game and shooting up a supermarket, but at the same time, if you have been playing these games and i have seen them being played, you sit there, you are shooting up everybody left, right and center, if then something happens in your life, that could set you off because you have been playing these games. Do you see what i mean . Its not a direct relationship. It could set you off. The way that i looked at this, when i mentioned in the 90s that the youth homicide rate went down, i have kind of a bit of a theory. I call this the pacifier effect. The idea is if you have a baby who is whining and crying all the time, you put a pacifier in their mouth and it shuts them up. Its the same thing with video games. If you have young teenaged boys who could potentially go out and become hooligans, if they are playing a video game and enjoy it, that time spent playing the video game is actually time keeping them off the streets. So i dont really think that you know, the case you are presenting is actually the case. The other thing i would mention, too, is that its kind of unusual for donald trump to actually single out the video Game Industry when this kind of violence, the amount of violence in video games is not too different from what you would see in movies as well. I dont really think that its a particularly valid argument. Stuart okay. Well, you have had your say and i have had mine, and we will continue from there. Tian, thank you very much indeed. The latest polls no, weve got to go. More varney after this. From f. A visual snapshot of your investments. Key portfolio events. All in one place. Because when its decision time. You need decision tech. Only from fidelity. You need decision tech. Dear tech, lets talk. We have a pretty Good Relationship. Youve done a lot of good for the world. But i feel like you have the potential to do so much more. Can we build ai without bias . How do we bake security into everything we do . We need tech that helps people understand each other. That understands my business. Weve got some work to do. And we need your help. We need your support. Managing type 2 diabetes . Audreys on it. Eating right . On it staying active . On it. 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Mr. Trump is president of all the people including those of mexican dissent. President ial candidate, tim ryan, the democrat, ohio, the mayor of el paso should tell the president is not welcome, beto orourke got downright abusive. He has no place in el paso. Of course he is a racist. Bernie sanders said stop the hatred in this country creating kind of violence that we see. There is strong degree of political opportunism here. They are running for presidency. They want to stand out with extreme language. Here is another reason why the left wont allow anything nice to be conciliatory about President Trump especially in the New York Times. The New York Times published headline, trump urges unity versus racism. Aoc jumped on that real fast. Let this front page serve as a reminder of how White Supremacy is aided by the cowardice of mainstream institutions she tweeted. If you dont call the president a white supremacist you are table. The times headline quickly changed to this, assailing hate but not guns. Quite a difference. Now, look how far weve come. Trump hatred has taken over. He must be described in the most vicious terms. I dont think weve ever seen anything like this before. No good will come of it. One last point. The president will also be visiting, we believe, dayton, ohio, tomorrow. That is where a gunman killed nine over the weekend. He was reportedly a supporter of the violent leftwing group antifa, as well as Bernie Sanders and Elizabeth Warren but we dont hear anything about responsibility or blame there, do we . The second hour of Varney Company is about to begin. Stuart all right. I keep using this word, maybe i Better Change it, modest rebound. Ashley thats all right. Stuart it is modest, isnt it . Down 767 yesterday and were up 170 this morning. Look, we just got the latest read on job openings. This is the jolts report. Ashley it fell 7. 35 million. Stuart still up there. Ashley which is a very strong number still. I believe there are still more job openings than people looking. Still very strong. Stuart this is not a market moving number. Ashley no. Stuart but it is indicative of still a very, very strong job market. A market, the stock market paying little attention. Were up 180 points as of now. I want to bring in bill mcgurn to answer my editorial at the top of the hour. He is the wall street Journal Editorial Board kind of guy. Do you agree look, i think trump derangement syndrome has hit a new high. I think it has pot to stop. It is infecting all sectors of society and are you with me on this. Yes. We see democratic president ial candidates making these outrage just charges. A lot of them stem back to this mythology of charlottesville that the president was endorsing White Supremacy. It is really debilitating. You mentioned the dayton shooter and Elizabeth Warren. The guy who shot Steve Scalise was a Bernie Sanders supporter. You didnt see people blaming them rightly. Rightly. Stuart shooter, shooting those republicans he said this is for health care. Right. I think it is crazy to do that but it seems to be done more onesided than the other. Perhaps this is what you do when you dont really have substantive message campaigning against the president , right . Stuart i have got two questions. First of all, do you see any decline in this . Do you see any, not going to say return of decency, but a more civil dialogue . No. The irony, the great irony, the people shouting civility, loudest, are often the most rude and cynical and twisted in their use of these charges and so forth. To call someone white supremacist or racist should be a big deal. The only thing i can see dissipating, they have so overused the word. People are so cynical and now the guys who seem to be using it most are like beto orourke, down in the polls. This is the way he feels he will jump forward. Maybe people get tired of it because it has been so stripped of any real value. Unfortunately. Stuart unfortunately. But one can but hope. Glad youre in agreement with me, welcome aboard. Im sure if we continue we would argue about something. Stuart impossible. Bill mcgurn, out of the question. Thank you, bill. Thank you. Stuart check, again lets get back to the stock market. Were up 190 points. Down 760 yesterday. Shake shack, grubhub, are teaming up for nationwide delivery. Seems like you got to deliver the food these days or you aint nothing. Staying on the markets, my grammer there, investors looking in safety in gold and bitcoin. Thats true. Our next guest says cannabis stocks could be the new safe haven investment. Jason rotman, ever plus director is with us. Make the case. Youre talking about charlotte webs and apriah. Two companies, tell us about it. Theyre very different companies. Lets start with charlottes web it sells federally legal products to in the United States. No thc. It is not actually cannabis per se. It is hemp, a nonpsychoactive form of can that is b theyre all cbd base which is huge nutritional trend, only going one way higher. Charlottes web is one of the few turning positive, topline growth. Companies with that quality. Stuart talking about a cbd company, charlottes web holdings. Theyre down 10 this morning. That is not much of a safe haven. Secondly, youre suggesting that cbd is the trend that is still to come. I think the market is overloaded and the claims for cbd are unproven . Well, the claims for cbd, stuart, not to turn this into a science show are actually, you know, quite substantiated. Charlotte was a girl in colorado that was suffering from hundreds of seizures per day. The only thing that worked was actually the original charlottes web product, creating a whole Company Based on one girls healing number one. Number two, charlottes web was up 10 while dow jones was down 700 points. I think this company will stand the rest of time. Stuart the other is apria. That is fullscale, thc, get you high kind of company. You could say that if you wish, yes. It is based in canada. They are one of the few companies, again in this industry that is turning a profit. So you know how this year, the major ipo trend, this is in the u. S. Like zoom. Zoom exploded on the ipo, a tech company, because it was profitable. Uber, as much as everybody likes uber, did not become profitable on the ipo because the money is losing money hand over fist. This nays end industry like the cannabis industry should attract money. Why . Because it is profitable already. Stuart profit is the top of mine on wall street, thats a fact. Jason, we will bear in mind weed as a defensive play. Got it. And cbd. Thanks very much, jason. China issued a strong warning to hong kong residents. Sounds ominous, susan . Susan they vowed to jail protesters who break the law. They jailed 148 on monday. Five Straight Days of protest and also increasing violence as well. For instance, yesterday, molotov cocktails being lobbed outside of police stations. You have cars running through protester barricades. Of course the ongoing violence of protesters fighting, being beaten by gangs. Some would call them. Some would call them triads. Part of the gang and mafia regime. That beijing says the Hong Kong Police are fully capable of punishing criminal activity. The fact they are giving i guess the responsibility back on the Hong Kong Police because there have been concerns, maybe the pla or the chinese military, like Tianamen Square might be rolling in the tanks, i think this is actually a very good sign that china is going to let hong kong work itself out. Stuart i still think xi xinping is in a much worse situation than President Trump in this trade fight. That is my opinion. Susan he has headaches and concerns to worry about, that takes up more of his time. Stuart well argue about this the next three hours. Ashley excellent. Stuart serious stuff, President Trump says he wants mass murders and those who commit hate crimes to face the Death Penalty. He doesnt want to wait years to execute the killers. Will he get his way on this one. Cabot phillips asked democrat voters to name one of joe biden as accomplishments. They had kind of a tough time. You will see the tape. Young democratic socialists Holding Convention over the weekend. Didnt go real well. You have the tape for you which you will not believe, like a comedy show. Tual customized my Car Insurance, so i only pay for what i need. And this is me now any physical changes to this mans appearance are purely coincidental. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Thats it. Im calling kohler about their walkin bath. Nah. Not gonna happen. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . 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Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of mind. Call. To save 500 off bath walls with your walk in bath. Or visit kohlerwalkinbath. Com for more info. Would you mind passing my book there. Once again, thats. And financing is available for qualified purchasers. Stuart gains of early in the morning have being pared back. Were up 99, 100 points. Not much of a rebound. Our next guest asked democrat voters in detroit last week, right about the time of the debate, name one of joe bidens accomplishments. Watch what happened. Roll tape. I dont know of a specific accomplishment of his. I know there are things he can put his name on, this was done while i was in office. This was done while i was in office. To be honest with you, im drawing a blank on what he accomplished. I do know that he has fought for americans. I dont know. I think his greatest accomplishment was being the Vice President for obama. Stuart joining us now, the man with the microphone, right there, cabot phillips, joins us, campus reform media director. Look, obviously they had a tough time, i take it, that was edited. You must have done no, not at all. Absolutely not. These were the most fired up passionate democrats in the country. Theyre outside of the debate voicing their support. Stuart we only played a small part of all interviews you did, youre telling me nobody could come up with one single accomplishment, really . That goes on the entire day. I dont think is just these people. If you ask the average american, they will draw a blank. There is not a long list of joe biden can point to. He is guy in politics 40 years, now says i deserve a participation trophy. I will take the white house. I think a lot of democrat voters, yeah, i support joe biden, not because they know his accomplishments, but they know his name. They feel like he is inevitable. Feels like being the nominee. Go ahead and support him. You end up getting results like this. You could do it for a lot of americans they would not be able to name anything. Stuart let me come back at you. Being elected president is not just about the policy positions you take in the future, your successes or failures of policy in the past, what kind of person you are, whether youre likeable. I think a lot of the people were saying they like his demeanor. They like the fact he was Vice President with president obama. Thats worth something in president ial politics, isnt it . There are plenty of nice people on the debate stage they could go with. There is pressure on the Democratic Party to go with biden, because he has been kind of handpicked. Similar to what happened with hillary clinton. That didnt play well with the handpicked establishment candidate. Interesting aspect, bringing up president obama was initial strategy of the biden campaign. Look what happened on the debate stage. People went after him for his cozy relationship with president obama. The reality Democratic Party shifted so much to the left, president obamas policies were r no longer left enough and biden got attacked with that. Saying i was president obamas Vice President , i dont think that will work with the state of the Democratic Party where it is. Stuart as you know, im sure, i well tell our viewers this, the Young Democratic socialist Convention Held over the weekend. I want you to listen to them, they had some dispute over background noise and use of the word, guys. Watch this. First of all, james jackson, sacramento. I just want to say can we please keep the chatter to minimum. Im one of the people very, very prone to sensory overload. There is lot of whispering, chatter going on. Making it difficult for me to focus. Thank you, comrade. If there is a speakers against point of personal privilege . Yes. Please do not use gendered language to address everyone. Stuart cabot, i would call that priceless. I would want to know if it is common on the campus these days . It is real. It is easy to watch the video, say these are crazy ones. This is the fringe. If you think this is not common go, look at campus reform. We cover this all the time on campus just a few weeks ago. We broke a story at colorado state, where the University Published a language guide not to use the word american, hiphiphooray, cakewalk, things like that. Those could be offensive. When the bar for using language is dont use it if it could offend people, youre eventually not going to be able to use anything, completely subject to the whims of these social justice warriors that is example of free speech suppression, you cant use that, because it might offend me. It reads like a parody. I assure you this is real. Stuart comrade, i have not heard that in a long time. Cabot, thank you very much indeed, exposing good stuff, excellent, thank you, cabot. Former new york Lieutenant Governor betsy mack betsy mccoy calling the 15 an hour a nail in the new york city economy. A month after the 15 is here. Betsy is here on the show. Tony morrison, first africanamerican woman to winnow bell prize for lit at that rush, has died. Her book, beloved was later made into a film by Oprah Winfrey and danny glover. Morrison was 88. Introducing the allnew chevy silverado. With fifty industryfirsts. Its the strongest, most advanced silverado ever. From the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. And the best lte everywhere else. Xfinity mobile is a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Click, call or visit a store today. Stuart President Trump tweeted yesterday about the attacks in dayton and el paso. I will read it to you. Today im directing the department of justice to propose legislation insuring that those who commit hate crimes and mass murders face the Death Penalty and this Capital Punishment be delivered quickly, decisively, without years of needless delay. Judge Andrew Napolitano host of the liberty file on fox nation joins us now. Will the president get his way on this . Well yes and no. Hate crimes that result in death already do carry Capital Punishment. The president has been in favor of accelerating the rate at which Capital Punishment is administered since before he was president but that is really not a function of the congress or the presidency. That is a function of the court which quite frankly intentionally builds in a series of appeals before anybody can be executed. Federal executions are very, very rare. I dont think the feds have execute anybody in six or seven years. The president wants to accelerate that pace. I dont think he will be able to do so. In terms of hate crimes that do not result in death, they cannot be exposed to Capital Punishment. Supreme court says, with the exemption of treason, no one can be executed for a crime unless that crime resulted in death by the persons hands. Stuart i think you oppose the Death Penalty, do you not . I oppose it on moral grounds but the court at times has found it constitutional. At times found it unconstitutional. At the present time it is constitutional. Many states have done away with it. The state that you and i live in, new york, new jersey, does not have the Death Penalty by legislative behavior. Stuart there is always a delay. As you say, the Supreme Court builds in appeals to insure there is a delay. Yes. Stuart doesnt that deny the, not the efficiency but the deterrent factor in the Death Penalty . Here is a figure that will drive the president crazy. The average duration of time on death row in california, 20 years. 20 years between the death sentence and its administration. That is the most extreme. Texas and florida which is a lot shorter. Stuart but, there are some cases where the Death Penalty was imposed incorrectly. Yes. Stuart the person who was found guilty was in fact innocent. That is the reason for builtin appeals. There is a group of lawyers. Barry scheck, famously on the o. J. Team, he heads the team, the innocence project. It is unbelievable how many death sentences they have gotten the government to agree should be reversed because of newly discovered evidence or improper use at the time of dna. So the delays are proper. I know they frustrate the president. They proper for the just administration of our laws. Stuart the president will not get his way on this . I dont think so. Stuart judge, thank you. Cordcutting, the bain of cable television, actually, it is accelerating. New Research Suggests a quarter of households will dump traditional tv in the next three years. Ouch. That hurts. Check bitcoin. It spiked yesterday. Has it become the, safe haven, kind of like gold . Susan shaking her head, no, no. Well ask ron paul, is it a safe haven investment . He is in our next hour. Fact is, every Insurance Company hopes you drive safely. But allstate helps you. With drivewise. Feedback that helps you drive safer. And that can lower your cost now that you know the truth. Are you in good hands . Quadrupled their money by 2012 . And even now many experts predict the next gold rush is just beginning. So dont wait another day. 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Stuart a french inventor successfully soared over the english chan on a hoverboard. He finally made it. He went from 22 miles from france to dover. This is absolutely fascinating, but, he didnt do it in one go. That is the caveat. He had to stop, he only had ten minutes of supply of fuel on his back. He makes a bit stop, halfway across the channel, lands on a platform, refuels, goes the rest of the way. It is still pretty darn remarkable. He got up to speeds of 106 miles an hour. He invented this particular hover have board. You may have seen them at the bastille day in paris where he made such an amazing impression, hovering around the celebrations there. Youre asking, anyone interested in this . Yes. There have been Defense Companies in france interested. French government has given him a grant to even more develop this technology. That could be the future right there. Will make a ton of money. It is very impressive. Stuart would you ride one . Susan yes. Ashley i would love to. Stuart i wouldnt. Ashley oh, i would. This has a computer on it to stablize. He has the jet back. There is a computer making sure it is nice and safe. Stuart you know what they say about computers . Nothing can go wrong, go wrong, go wrong. Susan didnt get the joke. You have to be around a little longer. Susan okay. Stuart it is funny. We have to check that big board because, there aint much of a recovery, not much of a rebound. Down 760 yesterday. Up 88 right now. Disney reports after the bell. What were looking for there, when we make their report, is any news on the upcoming streaming service. You can watch the results coming across the transom, 4 00 this afternoon on the fox business network. Lets talk more about streaming. This is seriously bad news, more and more homes are scrapping cable subscriptions. Give me awful numbers. Susan it is awful. 25 of households will ditch traditional cable by the year 2022. That is in three years. In this year alone, 19 of households have cut the cord. Where are they going . As you mentioned streaming. So the recipients are netflix, hulu, amazon prime, probably in the future disney will probably get a lot of subscribers, with at t and warner media new offering as well. As programing costs go up, subscribers are coming down, guess how these bundles will rye to make more money . They will charge advertisers more for those slots but advertisers, probably wont pay as much, theyre saying if everyone is migrating to the streams services why should i pay more for these advertising slots . But if you unbundle, you think about it, a lot are cable providers, right . Theyre also telcos like comcast and also at t. If you unbundle, you actually can charge more, make higher margins on charging for broadband alone. Stuart well it is the cable cutting that really gets to me. I dont care where you go. Dont cut me off. Ashley the cable guy . Stuart the cable guy. Remember him . Well have him back. Lets get to china trade. We have curtis ellis, former Trump Campaign trade advisor. Curtis, lets get this straight. I dont think there is any quickened to this trade war, what do you say . I agree with you. There is no quickened to the trade war. The president is not going to capitulate. Lets keep the eye on the ball. Remember what is at stake here. China is out to take over the world, they are using economic means to do it. If they achieved their goal, we will not have a free market economy. We will not have democracy. We wont have a country. First they came for the factory workers. The people in michigan, ohio, pennsylvania, understand that very well. Then they came for our hightech. And then they came for intellectual property. Now think about this, stuart. If we dont have property rights, if you dont, arent secure that your innovation is going to be protected and youre going to be able to make money by innovating there is no more innovation in the economy. There is nothing left for our way of, our way of doing business. Yeah . Stuart join this argument, because were going on for 90 minutes now. I say, that President Trump is in a much stronger position than xi xinping of china. I think chinas leader is in a corner. I think he is boxed in. I think were in the stronger position. What say you . Absolutely we are. Look what happened when they devalued their currency. Number one we declared them a currency manipulator which is a symbolic gesture. But remember, right now there is regulation in written in the Commerce Department by kaplan and others to allow us to put tariff on china for devaluing its currency, countervailing duty. They devalue currency 10 , we hit them with a 10 tariff. They dont have that many tools in their box. Stuart on the other side of the coin, lets look at President Trumps position here. A large firm on wall street says well go into global recession if the trade fight keeps up, that well go into global recession, summer of next year, right before the election that is not in President Trumps interest. As long as the American Economy is steady, doesnt matter about a global recession. They keep doing this bait and switch. The economy, are they talking about the American Economy or the Global Economy . All of the indicators show that the American Economy remains strong. I tell you what, people in pennsylvania, ohio, michigan, wisconsin, they understand, weve been in this trade war for 30 years. They have been bearing the brunt of it. They are happy to see President Trump take a stand. If it means they have to pay a little bit more for bedsheets or tube socks, theyre saying were willing to make that sacrifice. Look at arlington cemetery, look at others sacrificed to keep our country the way of life. That is the way the voters feel. Stuart tough talk from curtis this morning. Curtis ellis. Thanks for being with us. Well see you again soon. Thank you. Stuart north korea launched two more missiles. This is the fourth launch in less than two weeks. Ash, i have to have a question, is this part of the china trade dispute that maybe beijing says, they launched today, we want to put pressure on trump. Ashley is may be speculation, it is speculation. It is also a case of north korea upset it is not getting anywhere with trying to loosen sanctions on itself and firing off these missiles. Theyre upset stuart i can hear a buzz. Ashley theyre upset, oh, is that me . Stuart that is your rf. Ashley how is that . No, doesnt help. South koreans and u. S. Are doing military drills and they start in ernest on august the 11th. Theyre very upset about that. Stuart okay. I can see that. Ashley is china involved in some way . Is the parent stuart in my opinion . Probably. Ashley or at least real potential. Stuart i am speculating. Ashley yes you are. Stuart now, china, warning america, if america deploys missiles in asia, landbased, intermediate range missiles, deploy them anywhere in asia, china says, they will take countermeasures. Sure sounds like a cold war to me. That story coming up in our next hour. New york Governor Cuomo, slamming new York City Police Department Officers for handling of the string of water bucket attacks. They walk up to cops to does them with water. The Governor Cuomo says the officers appear impotent. You will hear more about this next. Welcome to the place where people go to learn about their medicare options. Before theyre on medicare. Come on in. Youre turning 65 soon . Yep. And youre retiring at 67 . Thats the plan well, youve come to the right place. Its also a great time to learn about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare Insurance Company. Heres why. Medicare part b doesnt pay for everything. Only about 80 of your medical costs. 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Thumbs up to that remember, the time to prepare is before you go on medicare dont wait. Get started today. Call unitedhealthcare and ask for your free decision guide. Learn more about aarp Medicare Supplement plan options and rates to fit your needs. Oh, and happy birthday. Or retirement. In advance. Stuart down 760 yesterday. Up 145 right now. Modest rebound at best. Look at this. This is fifth third bancorp. The stock unchanged. They will raise the minimum wage for nearly 5000 of their employees. They will pay 18 an hour. That starts on october the 28th. Stay on the minimum wage. The wall street journal says that new york city businesses are struggling. They have had 15 an hour minimum wage imposed for six months. Increased costs, forcing employers to eliminate shifts, raise prices, cut staff. Betsy mccaughey has experience with this. Former new york Lieutenant Governor. You warned about this, law of unintended consequences. What you see happening in new york city, you will see happening in the seven states that already enacted gradual increases in the minimum wage to 15, such as connecticut, illinois, california, maryland, blue states. Stuart yeah. But heres the issue. More people will lose their jobs. The Congressional Budget Office reported if this goes nationwide, the House Democrats are pushing for, the fight for 15,. 3. 7 Million People would lose their jobs. Some people will gain, because they will have more income, but many more people will lose. The democrats are arguing that nobody can raise a family on minimum wage. That may be true but very few people, stuart, getting the minimum wage are raising a family. If you look at Bureau Statistics half are under 25. Six times have as parttime job as fulltime job. These are entry level people acquiring the basic job skills so they will be ultimately worth 15 an hour or more. Stuart you do this, you go to 15 an hour, and you basically, you eliminate entry level positions. Oh, yes. You see fastfood is already doing that. Restaurants are doing that with automated hostesses, take your own seat. That sort of thing. You can only charge so much for a bowl of pasta or a burger. Stuart youre right there. Let me move on to this, Governor Cuomo, governor of new york, he went after the top brass at the new York City Department of policing. He was discussing the recent water bucket attacks. So first of all, listen to Governor Cuomo. Roll it. It is one of the most disturbing, embarrassing situations that ive seen. I dont know how you are Training Police officers, when you are basically assaulted, that is an assault, you retreat. Stuart i wish we could run more of that. There is the video. Its a disgrace. Really the buck stops with mayor de blasio, because he is sending a clear message to the police, not to respond. He is vying for the support of the far left of his own party. Of course he is out in iowa and other places, campaigning to be president , really doesnt give a darn what happens in new york. So he is appealing to the felons and illegals, and he can say to law enforcement, lawabiding people, we dont care stuart absolutely outrageous. Absolutely outrageous. That is assault on a police officer. Many, many, democratic politicians are claiming this is racial issue. A brand new study came out, National Proceedings of the academy of science that shows that police officers, regard lets of race, fire on or respond to an assailant, not based on the color of the assailant. Black officers, white officers, likely to shoot an a sail ant, based on their actions, not their race. Race has nothing to do with it, i want to tell our viewers, wednesday night, mayor de blasio will be with sean hannity on the fox news channel. That is mustsee television. Absolutely. Stuart stay up for that. I will be glued to my seat. Stuart betsy, thanks for joining us, appreciate it. A lot of talk about the new gun control laws after the weekends Mass Shootings. Senator mcconnell says he would be open to legislation. Speaker pelosi would bring the house back from recess to talk gun control if the senate is on board. You would think two sides get together to tackle this . We will ask Brian Kilmeade who is next. Tensions running high in hong kong. Protests continue. China threatened, they said they might keep the military out. They said the police force will handle it. Hong kongs chief executive is refusing to give in to protesters demands. Whats the endgame here . We will discuss. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Click, call or visit a store today. Stuart would you like to bank with apple . Apple sent out the first invitations to apply for its credit card. What do we know about the credit card . Susan it is so exciting. Apple invited select customers to apply for the apple credit card. It will roll out broadly to one billion appeal, iphone users later this month. This card is simple. No transaction, no penalties or fees. Interest rate 13 to 24 depending on your creditworthiness. No reward points. You get 3 cash back on apple pay purchases. 2 back and 1 daily cash. Instant approval. One minute. That is all you need. Stuart might be a customer. Sounds good to me. Ashley weve been warned. Stuart that time on a Tuesday Morning when we go live on the radio with Brian Kilmeade. He is the host of the Brian Kilmeade show. Brian, every time there is a shooting a mass shooting a gun control debate gets started. Nothing ever gets done. Will something get done this time around in your opinion. I dont know. The bump stock thing did get done. The president did it through executive order. The one thing i think possibly could get done, going through my callers here today, and, being on the show, fox friends this morning, i sense that most people agree that if you are violent as a 16 and 17yearold, as the dayton shooter was, you should not have your record expunged when youre 18. That gun shop owner, or the whoever has a booth at a gun show, when they run the background check, can you imagine how that man or woman feels selling a gun to the future killer of people in dayton or, people in el paso. So i would think that if you have a rape list and a kill list in high school, i dont want that record expunged. Definitely that violence is not assuaged or just plowed under when you become a young adult, especially when you become a 20yearold, and you tell people im not getting good enough tips, i might kill the next person that doesnt tip me. That is something that could be done. Stuart look, i want to move on real fast, to something that you and i talked about offcamara this morning when we were doing fox friends. You told me there has been a sharp decline in youngsters actually participating in sport. Give us that story, will you . 10 years ago, 45 of kids were playing some sport between six and 12. Down to 38 . Multiple things. Theyre on their phones, right . Theyre also gets expensive, number one. Number two, these coaches, coaching them like theyre pros. Number three, if youre good, who cares. If youre great, oh, i want to get you into college, start on high school, ninth grade, 12th grade. What if youre good . A good lacrosse player, there doesnt seem to be a market for you, or pushing you. A lot of us are not born great athletes, me among them. Why am i practicing on my own, running on my own . I cant get a scholarship to nebraska. I cant get a full ride to alabama . Why am i bothering . Since when do you have to be great at something to work hard at something . Therefore, it is too expensive. Im just okay. Probably not going to get money for college. I guess i will do something else. No longer fun. Stuart i see your point but the greatest decline is in football and baseball, isnt it . Very traditional sports. Football because of head injuries. Viewers, football is so healthy in terms of young audience members, fantasy football, betting, has whole generation involved. Baseball has a real problem. For people that go, they like it. For ones that play, the game is great, for stadiums, so much to do, but there is a generation looks at this, that is my dads sport or my grandfathers sport. It is too slow, not enough action. Im telling you, especially in the innercity communities, theyre walking away from baseball. That is, that is a problem. I know were both biased because were soccer fans and players, but soccer has the most diverse ethnic background. It is the Fastest Growing player and league mls is growing like wildfire. That might just be the future. Lacrosse, not as a pro, but as an amateur sport is also on fire. Stuart fascinating story. I think influence of these things that is turning kids away from sport. This is the principle thing, in my opinion. Hey, brian, youre all right. Well see you again soon. All right, stuart. You seem nice too. Stuart see you. Marriott, the hotel chain, theyre taking quite a big charge on the data breach. How much is it going to cost them . Susan 126 million. That is what they pegged so far in the latest earnings. 383 million guest records, including passports and credit card information since 2014. This goes back to starwood reservations database. Dont forget starwood bought marriott. They merged to be the Worlds Largest hotel group. Compare that to equifax. Equifax had only 180 million customers stolen. 383 versus 183. You can argue equifax is more sensitive. Stuart does marriott split 126 million between people whose data was breach or that is what the cost is to fix this problem, which is. Susan i would imagine both. Penalties and customers. Stuart 126 million. Susan that is a bargain. Stuart it gets expensive. Coming up my take on the china trade war. No sign of a quick fix but i think xi xinping, chinas leader, i think he is losing ground. President trump has upper hand. Just my opinion. My editorial coming up next. Check the big board with all the market volatility, i want to know where is a good place to put my money . I will ask one and only Charles Payne. He is on the show. Trump derangement syndrome is at alltime high after the shootings. What is the trump 2020 Campaign Going to do about it . Were asking them next hour. More varney after this. Stuart its a trade war. Its a currency war. Its a new cold war. The worlds two largest economies are going at it and everybody feels the pain. There is no sign of a truce. There is no sign of a quick fix. And the escalation continues. America has formally declared china to be a currency manipulator. That opens the doors to more tariffs. China says america is deliberately destroying the International Order and theyre not going to buy our farm products, either. Thats pretty strong stuff. Step back for a moment and look at the big picture. Its china and its leader, xi jinping, under the greatest pressure. This is my opinion. China has big internal trouble, hot money is on the run. Thats called capital flight. Very bad news. Chinese companies which pay their debt with expensive dollars, theyre in trouble and thats called bankruptcy. Then theres hong kong. Xis achilles heel. This morning, new reports that government organized thugs have again attacked demonstrators and a stern warning from the authorities, dont you underestimate our security forces. What does that mean . Xi is in trouble on the home front. So is President Trump but thats not nearly as bad. The president s problem is the impact on the economy. Yes, it is slowing. A big Investment Firm says if this keeps on, the fight keeps going, well be starting a global recession in nine months. Thats next summer right before the election, which mr. Trump hopes to win on the back of our prosperity. To President Trump, the trade fight is an electoral problem. For xi jinping, more serious than losing the election. Chinese politics can be brutal. The communists keep firm control by promising political stability and rising prosperity. Xi is losing ground on both fronts. Trump has the upper hand, in my opinion. The third hour of Varney Company about to begin. Stuart on days like this you need Charles Payne. Lo and behold, hes here. Hes the star and anchor of making money with Charles Payne on the fox business network. Lets get at it. You heard my editorial. I say President Trump has the upper hand. What say you . I agree 1,000 . Stuart you do . Yeah, listen, i keep hearing folks say chinas got a 100 year game plan. It was called made in china 2025, not made in china 2055. Bottom line, they have had a hundred years to get to where they are now but there were a lot of bumps and bruises which fuels their fire to this day. There was a power struggle when xi got in there. There are different forces within the communist party. The politburo just had a meeting recently over this last weekend so he set himself up for president for life as long as things keep going well. Their stock market peaked in 2015. He is in a corner. I know hes got to look strong on one hand, but they lost they admitted they lost two million jobs already directly associated to the trade fight. Two million industrial jobs. In a nation that really has to keep that Conveyor Belt from poverty, from extreme poverty, the middle class growing. If that breaks down at all hes in trouble. Stuart the other side of the coin is President Trumps position. Morgan stanley, yes, Morgan Stanley, they say look, weve got a global recession in nine months in the trade fight keeps going. That threatens President Trumps electoral position in 2020. In fact, i think the only thing that could derail the trump reelection would be recession before the election which is why Elizabeth Warren saying one would happen was a brilliant move on her part just in case the wheels do come off, she can say i was the one who predicted it. Having said that, i often hear commentators say the market is down and is going to hurt trumps reelection campaign. The people that will put President Trump in office arent watching the market like we are. So they feel good. Their 401 k is up, theyre not too worried about the nuances, the daytoday movement. As long as they know President Trump is fighting for them, they are on his side 100 . So recession, though, i think is the only thing that can derail his reelection chances. Stuart heres what worries me. Big picture now. This is not just china versus the u. S. Its not that. Its the spiraling down of Interest Rates. Every single european government now pays no interest at all on a government bond. Here, the rates are coming down, down, down. I see that as a deflation threat. What do you say . I have been saying this all along. Its gotten worse in the last couple days, masked by the headlines. Yesterday, the Services Prices number was down dramatically. Friday last week, the manufacturing side of the economy is in a deflationary death spiral which is sort of ironic. Remember when this whole trade war began, we were told manufacturing prices would go up. They have gone into complete freefall. You know, listen, i know the fed is trying to be cool, keep a calm, sort of calm presence about them. Even today, the reason this market rally has doubled is because of the most dovish member of the fed saying maybe one more hike, well take a look. I understand they are trying to look calm but sometimes when things are excitable you need to be excited. Stuart thats why we are now only up 70 after being down 767. What was the word, the word he used, the new phrase, right, oh, were in the right neighborhood, just about the right neighborhood. Like with rates. Its about right. But you know, they should either stop talking or really, when they are concerned, really express it in a way that we can appreciate, because this i dont think does anything to help the market or investors. Stuart i want to know about bitcoin. I never talked to you about bitcoin. I can see gold has a rush to safety. Treasury securities, i got that. But bitcoin . You think thats a flight to safety kind of product . I went home last night, i got a couple gold bricks, right. Stuart you got kilo bars . No, they are a little smaller, about this size. Theyre heavy, though. Theyre huge. I looked at them and said what happened to you yesterday . Bitcoin rocked. What did you do . Im looking at them, all you ever do is sit here and gather dust. Stuart is it an alternative, bitcoin . Im intrigued, i have always been intrigued. I dont trust the formula that says only a limited amount will ever be mined. Im concerned about that. But tell you what, it was amazing, if you are a bitcoin lover, yesterday was the best day in a long time. For it to be considered an alternative in a currency war was phenomenal. Stuart would you touch it with a ten foot pole . Would you buy it . Put it this way. My ten foot pole from a year ago is now a one foot pole. Im not there but im getting closer. Stuart last one. Where are you putting your money right now . Best pick . I dont really have a best pick, per se. Im looking at mastercard real hard. Heres the beautiful thing with these kind of selloffs, at the end of earnings season. We know the companies that beat, we know the companies that are taking market share. We know the companies that have Pricing Power and we know the companies that gave great guidance. Its so easy to put together a list so when the dust really does settle, you have something to buy. Mastercard right now is at the top of my list. Stuart how is that book going . Amazing. We sold out the first printing in less than three weeks thanks in part to your interview and others. Stuart hardly. Give me the title . Unstoppable prosperity. Stuart you cant fail. We sold them all out, can you believe it, in less than three weeks. Theyre back. We got them now. Go get them, folks. Stuart unstoppable prosperity. I like it. Charles, we will see you at 2 00 in the afternoon weekdays. I will take on the fed today. Stuart are you . The feds oped. I think theyre deflecting. They have too much power and should be held to account. Stuart go get them. The book cover, there it is. Weve got it up. That will be 10. Check apple. Trying to reclaim the trillion dollar market value. The stock has to get to 221. 27. If it gets there, its a 1 trillion company again. Right now its 195. Microsoft. They released their biggest Windows Update ever. The stock is up 1. 5 , nearly two bucks at 134. North korea launching two shortrange Ballistic Missiles overnight. Thats the fourth weapons test in less than two weeks. Does that play into the china trade dispute . We ask the question and we will get an answer. Trump derangement syndrome running hot. I know it knows no bounds. Following the shootings in el paso and dayton, thats all you hear. Hate trump. I say it needs to stop. The trump 2020 campaign will join us next on that, as the third hour of varney gets rolling along. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Im not really a, i thought wall street guy. Ns. 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 were on the move. Hey rick, all good . Oh yeah, were good. Were good. Terminix. Defenders of home. You only have an attack like this when you have a president who gives people permission to act on this hatred and this racism and this intolerance. It is shocking to me that he is so utterly selfaware and this is why from my perspective, he is not welcome here. He should not come here while we are in mourning. That would not be a welcome visit given the environment that hes created over the past three, four years. He would not be welcome in my hometown. Stuart you heard them. Some democrats adamant about the president not visiting the sites of the deadly shootings. President trump is set to visit el paso and dayton tomorrow. Trump 2020 Advisory Board member jenna ellis is with us now. What are you saying to the president in advance of that visit . How do you tell him to handle this . Yeah, i think that he handled the press conference yesterday extremely well and i think it should be pointed out that there is such a distinct contrast between how the democrats immediately went negative, politicized this, targeted President Trump and he just came out with no partisan interest and was so empathetic. If he can hold that, i think that would speak to america very well. Stuart but is he going to address the other side of the fence, so to speak . Not the border fence, the other side of the political aisle, because you know full well that as soon as he gets there, the media will look for demonstrators and focus entirely on the demonstrators and interview them. How do you counter that . Yeah, i think thats where we also as consumers of the media have to be very responsible because President Trump is doing his job as the president of the United States. Of course he should go to el paso. Of course he should go to dayton so for anyone saying he shouldnt just because they hate on trump, that is not recognizing that he is the duly elected president of the United States. Stuart but theyre saying hes responsible for this. They blame him for this. They do. And that just doesnt match up with facts. If you look at how much this president has had diversity within his office between race, gender, he has had more women in high level positions in cabinet than any previous president. So the facts just dont line up, yet the Mainstream Media and the democrats refuse to look at that. They refuse to look at facts even in their own platforms and their own campaigning. We saw that in the debates just how completely veering off of reality they actually are. So we cannot necessarily confront that except with facts and by speaking truth and also by conservatives not meeting fire with fire in some instances, because lets remember, this isnt just about taking down the other side. This is about protecting and preserving the america that grants all of us individual liberties and we have to show that contrast with facts and logic. Stuart to be conciliatory in some ways to the other side. Conciliatory . I think from my practice in trial law, you have to admit when your side has done things wrong. You also have to admit the facts. The facts of this situation is that this is terrible. No one ever wants Mass Shootings. But that doesnt mean that the democrats are therefore right that President Trump is responsible. Stuart i think trump derangement syndrome is out of control. If you can use the expression its reached new highs. Thats the way i think about it. What are you going to do about that . How do you counter that . Yeah. You know, its just remarkable and absolutely crazy how much the fever pitch just continues to rise and how much the democrats have looked at this whole trump derangement syndrome and people are buying into it. I think the only way to combat that is for every Single Person to be responsible consumers of the media, not just believe what they hear about President Trump, but actually go and search out for themselves the truth because if we were actually truth finders, not just trying to take political partisan interests, if we were seeking the truth of the matter, then that would actually dispel a lot of the myth. Stuart we have the New York Times, washington post, labeling the president as a racist right flat out, stating it as a fact, not a subjective opinion, but a fact. Hard to get beyond that. It really is. Just because i speak out on behalf of the president , im on his Advisory Board, i have even gotten called a racist. There was a hash tag that i had to report on twitter. This is just crazy. A fellow colleague of mine was threatened with his life. This is where were at in america that just because the Opposition Party wins according to democrats, then they can come after and target people who are speaking genuine policy and have a different opinion than theirs. That is wrong. We need to have the courage to stand up and continue speaking truth. Stuart well said. Tough call, though, isnt it . It is. Stuart jenna, thank you very much for being with us. I just want to show you the big board, please. Let me go to that first. Go to the big board. Look at that. Ashley we almost lost whatever we gained. Stuart lost it. Lost it. We were down 767 yesterday. We bounced back 150 this morning. Now its virtually gone. Back to a small gain. Two points. Thats it. So the selling appears to be continuing. As some of our market guests have suggested this morning, the selling aint over. All right. Check cvs. They are offering a new subscription program. Its 5 a month. It gets you Free Shipping on prescription drugs and other online orders. Looks like a direct response to amazon. The stock down in a generally down market. Amazon, jeff bezos cashing out a little. He sold 2. 8 billion worth of amazon shares in the last week alone. Not sure why hes done that. But the stock has come down from 2,000 a share to 1765. Thats in the space of about three weeks. Check this out. Ford unveils the most powerful streetlegal mustang, 0 to 60, 3. 5 seconds. We will tell you how much it costs and when it goes on sale. Tesla trying to boost sales by offering something free to customers. We will tell you what the freebie is after this. 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 well, well, well. Take a look at this. The most powerful streetlegal mustang ever is the shelby gt500. Listen to this. 760 horsepower, a supercharged v8 engine, 0 to 60 in about 3. 5 seconds. How much . I will tell you. 73,995 plus 2600 as a gas guzzler tax. It goes on sale this fall. I want one. But im too old to drive it properly. Fords new mustang flies on the road but heres a car that actually flies in the sky. Looks like something out of back to the future. A Japanese Company built this thing. Its batterypowered. Its a flying car, four propellors, hovered off the ground for about a minute in a recent test flight. Im not so sure it will ever sell that well. In an effort to boost sales of their high end models, tesla is making a big offer to customers. Tell me more. Deirdre you get free lifetime free charging. Keep in mind there are tens of thousands of electric vehicle charging stations around this country. If you buy a brand new model s which is the fancy sedan line, or the model x which is the mid sized luxury suv, you get lifetime super charging for all. If you sell thor e ecar to me, dont have that benefit. Its for the firsttime buyer. Worth noting they had offered this years toiago to encourage people who are anxious, where am i going to be able to charge if i go on a road trip. They offered this, then they started to phase it out. They have been playing with their consumers on this for awhile but they say this time its different. Cue the monty python music. This time its different if you buy an s or x, you get lifetime charging. Stuart attractive offer. Ashley it is. Stuart if the tesla charging station is convenient. Deirdre there are close to 48,000 in this country. Stuart i dont know whether you can answer this question. How long does it take to recharge . Deirdre that, i do not know because i dont have a tesla. Stuart i have seen one of these tesla charging stations at the side of i95. How long do i have to stop to recharge . Ashley we will look into that. Stuart our producer says about a half hour to one hour. Deirdre enough for you to have a little snack, little lunch. Stuart i dont like stopping like that. I want to go. Deirdre all right. Youre in your helicopter. Stuart no, im not. No. Ford f150. More china news. Hong kong sending a warning to protesters saying that all criminals, their word, will be held responsible and dont underestimate our security forces. Next, we have a china watcher. I want to know when and how the situation in hong kong ends, and what is the end game here . Its important to the u. S. china trade fiechght. groans hmph. food grunting menacingly when the food you love doesnt love you back, stay smooth and fight heartburn fast with tums smoothies. Tum tumtum tum tums stuart we really did lose almost all of the rebound, down 760 yesterday, up 150 at one point this morning, now up just 50 points. Not much of a rebound. Lets move on. I think this trade fight has president xi jinping of china, i think hes in a corner. I think President Trump has the upper hand. I know thats just my opinion. Most people seem to disagree with it on the program this morning but lets bring in steve orlins, on the National Committee on u. S. china relations. President trump has the upper hand. What do you say . Last time i looked, President Trump has to stand for reelection next november and president xi amended their constitution to eliminate term limits. Stuart thats true. The political pressure on him is substantially less. I think, though, he must be disconcerted by kind of the tariffs, president xi must be disconcerted by the tariffs and by branding china as a currency manipulator because what china has been doing is actually the opposite. China has been supporting its currency and now suddenly, they are being accused of forcing a devaluation. They just must look at this and go huh . Whats going on here . It must be very confusing to the chinese leadership. Stuart one of the reasons i say that president xi is in trouble and kind of in a corner is because of hong kong. Weve got reports today that gangs are attacking the protesters all over again, and the authorities are saying, warning people hey, watch out, were coming after you. That sounds like a real crisis in the making, and that i think is a real problem for xi jinping. I think it is connected to china trade. Where am i going wrong . Didnt you live in hong kong once . You lived in hong kong. I lived in hong kong for ten years. Ultimately, whats happening now is the protests are beginning to affect the economic viability of hong kong that we have seen data now that retail sales are dropping, trade is dropping. That is damaging kind of the overwhelming majority of people in china. So youre beginning to see a pushback not only from government, not only from the Liaison Office of the peoples republic of china. What i hope and expect is going to happen, its going to peter out. The protesters in many ways have won already. They should declare victory and go home. The extradition bill that was the cause of the protests initially has been withdrawn. Carrie lam said its dead. The protesters should now kind of take that victory, recognize that they now have the ability to influence government policy and allow hong kong to kind of go back to work. What hong kong people care about, its a tough place to live. s t its very expensive, its difficult to make ends meet. When you have protests like this going on, its really going to damage the economy and cause multinationals to question do i want to be based in hong kong which is what you and i remember from those days, its very dangerous because that is the basis of hong kongs success. Stuart so you dont think President Trump has the upper hand. You think the protests in hong kong will ultimately fizzle out so i think i hope that will happen. I expect it will happen. Ultimately its not even clear anymore what the demands of the protesters are. Initially, it was stop the extradition bill. Well, it stopped. They won. They should actually go home. There certainly is a radical fringe that wants to continue the protests but my guess is knowing the people of hong kong, having lived there for many years as you have, i think we are going to see people begin to push back hard against those protests. Stuart im sure you saw this, but Chinas Foreign Ministry warned america against putting intermediate landbased missiles anywhere in asia. Heres the statement. If the u. S. Deploys missiles in this part of the world at the doorstep of china, china will be forced to take countermeasures. To me this sounds like the beginnings or rather, the early part of a cold war. Its symptomatic of the deteriorating relationship both in the strategic side, the economic side and the political side. What we are seeing is unfortunately a deterioration across the board which ultimately is bad for the people of the United States and i think its ultimately bad for President Trumps potential to be reelected. Stuart but it also is very hard to see the end game here. If you escalate the trade fight, hong kong has escalated to some degree, the missile question, escalation. Warships between the mainland and taiwan, its all escalating. I dont see how you bring it all back down to earth, fix everything, we all live happily ever after. Thats where leadership on both sides need to exercise leadership. We need a Good Relationship with president xi and President Trump. This is not in the interests of each of our countries. This is not in the interests of the people of each of our countries. Stuart true, but you dont see this happening any time soon, do you . One hopes it will happen. That ultimately, its not, you know, President Trump needs to be reelected. President xi needs to do whats good for his people. This kind of strategic competition where we each spend hundreds of billions of dollars on defense is not good for rebuilding infrastructure, for education, for doubling down on r d. Stuart that is not going to change. The two sides are drawn up opposite each other. Theres no quick fix here. But ultimately, what we are beginning to see is increasing pressure both in the Academic Community in the china watching community against kind of this narrative that china is a strategic competitor and enemy of the United States. Theres a debate thats occurring in the United States now, whether or not this is in our interests. My view, its not. Stuart you sound like you want america to give in. You want President Trump to back off a little bit, make nice. On the tariffs, i certainly want him to end the tariffs. Stuart hes not going to. Hes tariff man. He will at some point in time determine the political pressure is sufficient that he needs to declare victory and go home. That the agricultural states may be shifting to the democrats because of these tariffs, that energy exporters are not able to export their energy and those states are going to begin to shift. We are going to begin to see a political shift. In terms of the strategic competition, thats actually more dangerous and more difficult to resolve, that basically the president s have to say the threats to the United States, the threats to china, are common threats and we need to Work Together to resolve those while we have issues which we differ on. Stuart all right. You are welcome on the program even though you totally disagree with me. Thats pretty good. I dont totally disagree with you. We have disagreement today. I lived in hong kong once upon a time. Stuart i bet you lived on the peak. I lived on the bay. Stuart you know the hotel there . Knew it well. Lived about 400 yards from there. Stuart they opened the first mcdonalds in hong kong right in repulse bay and on day one they sold more fish fillet sandwiches at that restaurant than any other restaurant, mcdonalds in the world. I remember that. Accurate data. See, we agree. Stuart there you go. Thank you very much, sir. Now, on a similar theme, look at tencent. Thats a big chinese tech company. They are in talks to buy a stake in universal music. They are going to pay 3 billion for it. Thats the record label which has contracts with drake, queen and the beatles, by the way. Its owned by a french conglomerate. Dow component disney reports its numbers and profits after the bell. Look for investors to look in particular at the streaming service that disney is coming up with sometime in the fall. Thats what im interested in. Ashley thats what its all about. Deirdre its priced to get us all in. So what is it, 6. 99 . Ashley 6. 99. Stuart i would pay that. Deirdre why not. Stuart how many people can you get on their, you know, the account number . Ashley you would know. Stuart i jumped on somebody elses im not supposed to do that. Ashley you didnt do that. Stuart no, i didnt. Certainly not. My daughter did not use her password to get me on to netflix. I wouldnt do that. We are digressing a lot here. Oh, a promo. Stay with fox business for full coverage after the bell 4 00 eastern. Ashley will be there. Ashley cant wait. Stuart i want the know how many people can be on one account. Ashley multiple people on one account. Deirdre your grandkids stuart i thought this was going to be serious but its not. Facebook has removed the page for an area 51 event. Now, thats where they were going to storm, right . Ashley yes. Its the much talkedabout, highly classified area about 150 miles from las vegas. Was there alien technology, whatever. It was a tongue in cheek post saying lets raid this area, find out once and for all whats going on there. Of course they were told dont even think about it. Facebook since has taken down the page saying it went against facebooks community standards. Ironically, the gentleman involved who started all this, matthew roberts, then decided to hold an event on the same day but just as a festival. Nowhere near area 51, just to kind of bring it all around. They took that page down. Stuart by the way, the moon landing, you know it was a hoax. Ashley well what . Stuart im joking. Please, please, please. Ashley it happened on my eighth birthday. To this day im a little scarred. Everyone was watching television. Stuart you ever get the feeling were losing control of the show . Now this. Chaos at the democratic socialists convention. These are hardcore leftists, believe me. The use of the word gendered or again gendered language. Youve got to hear it. Third time on the show. Its worth it. A new Study Reveals where rich people are putting their money. Stocks, cash, gold, bitcoin . Find out next. My body is truly powerful. I have the power to lower my blood sugar and a1c. Because i can still make my own insulin. And trulicity activates my body to release it like its supposed to. Trulicity is for people with type 2 diabetes. Its not insulin. I take it once a week. It starts acting in my body from the first dose. Trulicity isnt for people with type 1 diabetes or diabetic ketoacidosis. Dont take trulicity if youre allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2. Stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, or severe stomach pain. Serious side effects may include pancreatitis. Taking trulicity with a sulfonylurea or insulin increases low blood sugar risk. Side effects include nausea, diarrhea, vomiting, belly pain and decreased appetite, which lead to dehydration and may worsen kidney problems. I have it within me to lower my a1c. Ask your doctor about trulicity. Stuart so what are rich people doing with their money right now . Deirdre will tell us. Deirdre they are selling stocks. They are not as invested in hedge funds and they are investing more in real estate. They are also keeping a little more cash on the sides than usual, and going a little bit into commodities. Stuart who says this . Deirdre this is actually a legitimate group of people. Most people who are selfmade or they have been running their own businesses, its called tiger 21, an investment club. The net worth of the group, theres about 750 members. They have a collective 75 billi billion. They are pretty serious. They meet once a month, sometimes more frequently, but they are very serious. They help each other look after their money. I think for a lot of selfmade people, entrepreneurs, they feel like their best interests are best served by themselves. Its quite a vibrant group. They put out research every quarter. They are stuart theyre legit. Im so used to x number of people cant scrape together 200. Deirdre no, no. Stuart leave me alone, please. This is serious stuff. Deirdre this is whats happening, the head of tiger 21 founded it after he sold his First Company and he felt a lot of Financial Advisers were trying to rip him off and decided he could do it better. Stuart they are selling stocks and getting into real estate and keeping cash. Lets check the price of gold. That is a traditional safe haven. Its up another 8, 1484 on gold. At least a sixyear high. Bitcoin, that spiked yesterday when wall street, the stock market was selling off. Right now its at 11,700 per coin. I want to bring in ron paul, former texas congressman, friend of the show. Sir, i always think of gold as the goto safe haven. Would you accept bitcoin as the new gold . I doubt that. I think that it should be made available and what i work on is making sure that it is legal but i think its history is shortterm so you dont know. Gold has a longer history like 4,000, 5,000, 6,000 years people have depended on it to maintain wealth. It is difficult. The biggest problem people have in maintaining their wealth is not whether you have gold or stocks or bonds or whatever. Its whether or not you have your freedom. Because just think of in the depression, people thought gold might be a good thing to hold so the government took it away from them and made it illegal. [ speaking simultaneously ] stuart you dont think were free . I came to america and reveled in the freedom i found here. You dont think were free . Well, compared to others, yes, were doing pretty well. But i dont consider us a constitutional system of government that was designed many years ago. I dont consider it a libertarian system. There still is respect for property but there is way too much government intervention. Maybe most of our prosperity is dependent on debt. Here we are living in a system where you can endlessly print money, take Interest Rates below zero, then borrow money at trillion dollars a year. Somebody has to pay. When you are very much in debt you are really not free. You should be free from debt. Thats when individuals feel better when they dont owe a lot of money. Stuart im going to read a tweet the president put out about the fed which of course, you are very interested in. Im sure you have seen this but i will read it for the viewers. China dropped the price of their currency to an almost historic low. Its called currency manipulation. Are you listening, Federal Reserve. This is a major violation which will greatly weaken china over time. You have no time for the Federal Reserve at all. Does the president have a point . Very weak one, because yes, the chinese are manipulators but what about qe . Didnt we manipulate our currency . Dont we manipulate when we badger the Federal Reserve to lower the Interest Rate no matter what they really think . Then they come along and lower it a quarter of a point and everybody gets hysterical and the markets crash because it wasnt a whole half a point . Yes, we manipulate just like everybody but its different because we as the reserve currency, we are the biggest manipulator because we get to print as much as we want at will, and license our congress to run up deficits of a trillion dollars a year. Theres tremendous manipulation. You have to compare somebody thats running a reserve currency to somebody that does not have a reserve currency. I would say theres way too much interference and right now, when youre demanding that Interest Rates go lower, which is what our administration is doing, you are manipulating the currency. You are saying loan that money out very cheap. I would question this whole thing so i would say china probably is a manipulator, they probably artificially kept their yuan too high for a long time. Now they are sort of making up for lost time. Stuart ron paul, you just made far too much sense but you are welcome on the show. We do appreciate that. Thank you, sir. Always appreciate it. See you soon. Thank you. Stuart question. What happens when you put a lot of young hardcore socialists in a room together . Answer, doesnt end well. You will see it after this. Hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Stuart they call themselves the democratic i believe socialists of america, and they held their National Convention in georgia this weekend. Check it out. It came to a halt after there was a sensory overload and use of gendered pronouns. Youve got to watch. First of all, james jackson, sacramento, he him, i just want to say can we please keep the chatter to a minimum . Im one of the people whos very very prone to sensory overload. Theres a lot of whispering and chatter going on. Its making it very difficult for me to focus. Thank you, comrade. Okay. Is there a speaker point of personal privilege. Yes. Please do not use gendered language to address everyone. Stuart thats right, comrade. Comrade, what were you thinking . David nichols, president of nicholas wealth management. This is not your turf but i cant resist asking you, what do you think . I will tell you, this is comedy gold. Saturday night live couldnt dream this stuff up if they tried. How did we get here as a society . Theres two reasons for it. When you look at modern liberalism which, when you take it to its full conclusion, is socialism, it really attempts to liberate man to live however he wants, to whatever means he craves. It attempts to remove absolutes from society, essentially remove god from the public sphere. When we do that, its government now that becomes allpowerful, government provides us our job, our security, our health care. Its the collective now that in essence becomes god. So what were seeing here is when we remove absolutes, we start to question simple concepts like what is right appear wrong, what is gender, what does it mean to be a man or woman. The second reason is when you look at our generation, okay, we have only known prosperity. We know nothing else. We didnt live through the great depression. We didnt live through two world wars. We didnt storm normandy with bullets flying past our heads. We didnt see the rise and fall of capitalism and socialism. We only know life with our smartphones and electric cars and chi tea latt hes. We dont have a prosperity issue in our country. We have an entitlement issue. An ungratefulness issue. When you have ocasiocortez and Bernie Sanders leading the equity didd ithe democratic par unfortunately ideas like this are spreading like the plague. Stuart im glad we brought you on the show to comment on that. That was a very erudite response and we like that. But david, you are on the show to tell us what you bought or what you would buy given the big selloff that we have seen recently on wall street. I think the big stuff you like is ford motor company. Tell us, please. Its funny, our interns came into my Office Yesterday and they were concerned, they were worried. I said guys, this is a great time to buy. If you were buying two weeks ago, you better have been buying yesterday. Some of the companies i like, a company like ford. A company that whether or not what happens with the trade issues with china, they are in the business of building ford trucks. They focus on that as their main product. Not exactly the Product Market for china. I think ford is a buy. If you are looking for a company, it provides a 6 dividend right now, has lower exposure to china. Its a great buy. Also, small cap stocks that dont have as much exposure to the trade issue i think is where we are going to see value Going Forward. Stuart tell you what, its the 6 dividend i really like because i assume that that is very safe and 6 is 6 . I think thats pretty good. David, thanks for joining us. Great comments on the democratic socialist convention. Come again soon. There will be more varney after this. Here you go little guy. A cockroach can survive submerged underwater for 30 minutes. Wow. Yeah, wow. Not getting in today. Not on my watch. Pests never stop trying to get in. We never stop working to keep them out. Terminix. Defenders of home. Stuart now the retailers, most of them took a big hilt yesterday. Some of them are rebounding a little today. But weve got another iconic retailer who is in serious trouble and deirdre will tell us. Highend retailer, barneys, very much a new york institution, filing for bankruptcy. Theyre trying to keep the boston, San Francisco and Beverly Hills locations. They will close new york, chicago and seattle. They owe 10 million in rent. There is other ways to get these goods. Ashley its a trend more and more Flagship Stores shutting down on fifth avenue. Calvin klein, lord taylor. High rent is a big reason and changing Consumer Behavior online. Stuart if you dont live in new york city, some of our viewers come to the city for vacation or whatever, you walk up and down fifth avenue, which used to be the premier its a little bit sad now. Stuart a lot are closed up, isnt it . A lot of whitewashed windows. Stuart i have a number here on barneys, one of the reasons why theyre in deep trouble. Their rent from 16 million a year to 27 million a year. Up the rent just like that. Which means there is an 11 milliondollar difference. You have to make an extra one Million Dollars a month in profit. See how much the greedy landlord are getting now . Nothing. That is the problem. You cant rent people out of business. Stuart rents have to adjust to this new lower level. There is a lot of stubborn landlords, they dont want i remember in 2009, 2018, 2009, there were some people here who just refused, if they were in an iconic property to lower the rent. They would rather a third of the building be empty. Stuart financial story of the day is the rebound or otherwise from yesterdays big selloff from wall street. Modest rebound at the moment. Were up 100. Neil, it is yours, stuart, thank you very much. For now a gain is a gain, of the sectors, theyre not all participating robustly, but they are up. We have most of the dow stocks looks like about 20 of them on the upside. But again the trade concerns are continuing to weigh on these markets. Farmers might be bemoaning their situation, because theyre not getting any break. Guaranties on the part of the chinese, theyre not planning to buy any goods from them anytime soon. Meanwhile recession signs are peeking amid the investor yield you hear about, gap between shorter and longerterm rates, pronounced as