Transcripts For FBC Varney Company 20240714

Prices and lack of demand. Oil is up about 2 amid more tensions with iran. That countrys foreign minister is threatening allout war in the event of a u. S. Or saudi military strike. Meanwhile, facebook chief Mark Zuckerberg heading to capitol hill today, trying to promote his vision for moderate internet regulation, as antitrust investigations are heating up. Plus, we have news on a possible isis connection to that mechanic who tried to sabotage an American Airlines plane. And Major Tv Networks are saying no to advertising ecigarettes. Varney company starts right now. David first to washington, d. C. , where midlevel china trade talks are kicking off today and they seem to be having a positive effect on the markets. The Dow Jones Industrial went from negative to positive on the news. Edward lawrence joining us live from the white house right now. Hi, edward. Whats going on . Reporter yeah, literally right now, the talks with the chinese delegation have started. The delegation has walked in there. These are deputy level talks that will set up the talks between the heads of the two trade delegations in early october. Now, about an hour ago, in an interview that was aired on mornings with maria an exclusive interview with Vice President mike pence, he says china must address the structural issues around protecting intellectual property and trade. President trump is going to stand firm til china comes forward, opens their markets to our goods and ends the practices that really, really have harmed american businesses and American Private property for decades. Reporter chinese sources say that among the discussions that are happening is the chinese buying more u. S. Agriculture. Also, the chinese laying out a plan in this discussion to further reduce the number of forced joint ventures, showing their commitment to protecting intellectual property. Also, the chinese talking about during the deputy level meetings increasing the number of Holding Foreign owned enterprises within china. China wants to talk about discussions related to removing themselves from a currency manipulation list treasury has them on, also reducing or removing tariffs now in place. Again, these are deputy level talks to set up the main event in early october but we will get a sense of the progress thats happening right now. David . David good stuff. Thank you very much. President trump weighing in on the fed decision, as you might have expected, to cut rates by just a quarter point. He wasnt happy with it. Roll tape. I dont think he knows how to play the game very well. Theyve raised too fast and i have been saying this openly, and they have lowered too slow. So im not thrilled with the fed but despite that, we have an incredible economy and we dont have inflation. Chairman powells job is safe . Its safe. Yeah. Its safe. I mean, sure. Why not . Hes got a job and you know, im disappointed in him. Im very disappointed in him. David hes got a job. Joining me, former dallas fed adviser danielle dimartinobooth and former Kansas City Fed chairman herman cain who also ran for president. Danielle, first, your reaction to all this. Yesterday, he said no guts, no vision about his fed chairman. What do you think . Well, look, hes going to continue to berate and bully powell. This is great. Hes collecting a paycheck, this is what were supposed to take from trump. But you know, in powells defense, we have had fresh data out this morning, jobless claims remain very low, Philadelphia Fed came in stronger than what was expected. So we are still seeing a lot of green shoots in the economy to suggest that the fed doesnt have to go hit the panic button, and ease as dramatically as say, the europeans. David but you cant ignore the europeans, can you . They keep lowering their Interest Rates and part of the job of the fed is to make sure that the United States currency is sort of in parity with whats going on around the world, right . You are absolutely right. But the other point relative to the fed is that they are inherently cautious. So thats probably why we only saw 25 basis points. But what the president is alluding to is we are not taking advantage of some of the things that the europeans and other countries are taking advantage of because we are lowering too slow. I believe that that was the president s point. David well, the new york fed, this is something that seems to be ominous to some people, have been stepping in recently to help money markets, putting billions of dollars in overnight for folks, banks and others who were caught short on cash. Danielle, is this a big problem . Well, i think its a big problem if the fed cant get its arms around whats happening right now. Theres a supply demand imbalance. They came out, they did another operation this morning. These are theoretically emergency measures that theyre taking but you cant take an emergency measure every day. There are some facilities and other options that have been discussed at the fed that powell certainly had the option of rolling out yesterday that he chose not to do. Again, it wasnt until he mentioned that if pressed, quantitative easing would be back on the table. It was not until that moment in his press conference that markets began to turn around and come off their lows. David but herman, we think back to 2007, there were some money market problems that sounded a little similar. They were short on cash, the new york fed had to intervene. Happening again now. Is it just a coincidence that it happened in 2007 . I dont think its a coincidence and i think that the key question is did the new york fed have to do that. Danielle alluded to it. I dont know all the details, but remember, one very important point, the u. S. Economy and the World Economy are very complex entities and so one move by one Federal Reserve board does not necessarily tell you everything that might be going on. As i said, the key question was did they have to do it rather than was it the right or wrong thing to do. David good question. Good question. Yes, they did, to answer that question. David we will hear more from herman in just a moment. Facebook chief Mark Zuckerberg has a plan for moderate internet regulation and will pitch it on congress. Whats going on . Susan first time hes back in d. C. Since his two days of testimony in 2018. Hes here, yes, to sell his vision of selfregulation of facebook to the politicians but also to shake hands and of course, a Charm Offensive is on. David on both sides, by the way. Susan so last night, he was at a dinner apparently, according to our sources at fox business, he met with senator blumenthal, senator cantwell and today he will meet with mike lee, chairman of the subcommittee on antitrust of the senate. We deal with politicians on both sides of the aisle talking about a breakup of names like facebook. Do they have too much control over the internet and over the discussion, not only antitrust, privacy concerns and content moderation. David for all those concerns complaints, they are wining and dining each other. Susan the stock up 40 this year. Teflon. David look at u. S. Steel. Its going in the wrong direction, down big time heading into the open. Ashley, whats the deal . Ashley weakening steel prices is a big problem. We also have restructuring costs in the case of u. S. Steel. They expect a loss earnings per share of 35 cents this quarter. The estimate was for 6 cents. Since the tariffs were announced last year, the shares of u. S. Steel makers, not just u. S. Steel, have been in a slump. We had Steel Dynamics also recently reporting lowering prices for steel and the trade tensions, and global slowdown thats hurting demand. You put all that together, its been a tough go and certainly for the steel industry. By the way, those tariffs were put in place to help the steel industry. David of course. [ speaking simultaneously ] david of course the World Economy is slowing down. Well, President Trump campaigning in california, trying to broaden his base. Hes also trying to do that by wading into the gm strike. Of course, hes been reaching out to africanamericans in a big way. But according to a latest fox news poll, its not really helping that much. Hes trailing all the major Democratic Candidates in headtohead matchups. So herman, clearly hes widening the base, clearly hes trying to do what other republicans have failed to do, and i think he is succeeding in a lot of areas but why isnt it showing up yet in the polls . You remember the phrase silent majority . I think you have some silent blacks when it comes to them saying how they feel about trump. I know anecdotally from black people that i talk to, they love the results that this president is getting. Our challenge, the communications worlds challenge, is how do you communicate all of the positive things that hes done. I believe that some people simply dont know it. Secondly, you have a lot of democrats that are already predisposed to be in favor of some of these very radical democrat president ial candidates, so i dont think that these numbers truly reflect the number of people who understand whats really going on from this president thats helping not only blacks and african americans, but helping everybody. David absolutely. Starting with the unemployment figures which are just extraordinary. More jobs than ever before in american history. Herman, great to see you. Thank you very much. Thanks, david. David check the futures, they are up and they were down all morning until we had several things happening. One, this meeting that was talked about among officials leading into the major trade discussions with china coming up in october, then we also had a very interesting meeting with larry kudlow on mornings with maria speaking positive about the china trade talks. That i believe has led to a turnaround in the futures. Well see what happens in about 20 minutes when the markets open. Meanwhile, the new iphone coming out tomorrow and according to reports, preorders have been strong, but is this an indication the phone will be a big hit . We will ask one of our top tech watchers later this hour. Secretary of state mike pompeo says theres no doubt iran was behind the saudi oil attack, so can we punish the iranians by blocking them from coming to the u. N. General assembly in new york next week . That story coming next. Fact is, every Insurance Company hopes you drive safely. 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What happens now is the israeli president rivlin will meet with the parties separately and try to decide if he believes one of them can actually form a government that can get a majority. David the dealmaking thats going on right now. Ashley third election looking likely. David secretary of state mike pompeo accusing iran of being behind the saudi oil attack, calling it quote, an act of war. Heres what President Trump said about military action against iran. Roll it. Well see what happens. A lot of things could happen. We could have a peaceful solution, thats good. Its possible that that wont happen. But theres never been a stronger country militarily, not even close. David joining us is congressman adam kinzinger, republican from illinois and former air force pilot. Congressman, nobody wants a war but on the other hand, the iranians keep racheting it up. We dont do anything, they keep racheting it up. We are tightening, we are squeezing them economically but should there be something more than that . Absolutely. Think about it, theres really three options but taking the history basically from 1979 on, this is nothing new with iran. Now, its been speeding up here pretty recently as we saw with the drone attack which, by the way, was the economic equivalent of losing ten f16s. It wasnt a small your uncles barbecue drone. The size of an airliner. The president should have struck then. But i think whats happening is iran is going to continue to push the limit until they provoke a u. S. Response. Its like if a bully is pushing you around, you got to punch him in the face. Thats where were at right now. He can either strike oil fields, the equivalent oil facility in iran, he can take out the military equipment iran used or what i think is actually maybe even better is going after iranian assets in syria. I think thats proportional. I think it would have an impact and look, too, the israeli strike iranian assets in syria all the time with no response. David i didnt realize that we were not doing that. We were not going after their financial interests. A lot of new yorkers, by the way, are dreading the coming u. N. General assembly because the streets get more crowded than usual. Its a big mess. Is there any way we can keep the iranians from coming there . It is on u. S. Soil. I know its historically open to all parties no matter how obnoxious they may be, but what about keeping iranians out of new york . Yeah, its possible. I dont think it will be done because of just what you said, its kind of considered basically a diplomatic immunity zone to bring all these World Leaders together and of course, iran has a big stake in terms of some of the happenings in the middle east now. But i hope that iran finds a very unfriendly audience in the u. N. I hope the people, you know, like kneejerk blame america stuff is getting pretty old when all you have to do is look at yemen, for instance, and see that the iranians overthrew the legitimate government of yemen and put only military aid in there and no humanitarian aid. Really bad nation doing bad things. David quickly, what do you think their next move will be if we just keep on the economic track and dont do anything militarily . It will be something else. It will be another tanker seizure, another strike somewhere. David do we have to wait for an american to die before we do something . I dont want to wait until an american dies. I want to stop them from killing americans. Yeah. Thats my concern, too. Because that will be eventually happening, more than likely, and then we will be forced to respond. Better to punch the bully early and shut him up. David congressman kinzinger, you make a lot of sense. Appreciate it. Take a look at the futures. Markets are up after having been down for most of the morning, though they have lost a little steam. They were up in the futures about 58 moments ago, now theyre up 40. Still a good sign, all the indices are up. Well see what happens in about 14 minutes when the markets open. Meanwhile, the American Airlines mechanic who allegedly tampered with a plane before takeoff had ties to isis and propaganda from the terror group on his phone. What more did he have . Was he actually in contact with isis . That story coming next. Imagine a world where nothing gets in the way of doing great work. Where an American Icon uses the latest hr tools to stay true to the family recipe. Where a music studio spends less time on hr and payroll, and more time crafting that perfect sound. Where the nations Biggest Party store can staff up quickly as soon as its time for fun. This is the world of adp. Hr, talent, time, benefits and payroll. Designed for people. Now you can, with shipsticks. 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The flavors are now illegal in the United States, india banning all ecigarettes. China pulling a lot of the ecigarette advertisements from retailers. You are getting it across the globe. Those companies you mentioned, viacom, cbs, warner media, said they may put it back up if the Research Shows its not harmful. Juul, though, still advertising themselves as an alternative to cigarettes. David youre on bulls bears today . Oh, no. David investigators uncovering a disturbing connection with the American Airlines mechanic who allegedly sabotaged a plane. Tell us about it. Ashley 60yearold abdul alani is being held without bond for damaging an air data module on a flight that was due on july 17th to go from miami to nassau. This individual, prosecutors claim, had sent video depicting people being shot to an individual, so telling that individual that he wanted allah to cause harm to nonmuslims, claims his brother is in isis and at one point said he needed to fly back because his brother had been kidnapped. All of this could be fantasy but theres no doubt hes charged with tampering with a plane which is incredibly disturbing that one mechanic could do this. Thankfully a member on the flight crew noticed something was wrong. The flight was canceled. Prosecutors not quite sure whether he cannot confirm he has any relatives in isis. None of what hes accused of other than tampering with the plane david that person on the flight crew spoke up. People, if you see something, say something. This guy did, he might have saved a lot of people from dying. Thank you. Lets take a look at the futures. They are up, they were trading down for most of the morning but they turned up on good news from china. 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Soon you are going to be able to make Campaign Contributions through your device. Susan, im not sure about this. Its not only this device, its also alexa, right . Susan you say hey, alexa, i would like to donate 500 to President Trump or 500 to Elizabeth Warren. That will be voiceenabled on your speakers and alexapowered devices in the future according to amazon. But whats interesting is who they deem as Principal Campaign committees. You have to have that designation in order for that to take effect on these alexa devices. Its not apparent who amazon actually considers deemed worthy for these alexa donations. So the eligible candidates, you have to of course have a u. S. Based street address, u. S. Bank account, credit card, et cetera. David well, as you were talking, we had the opening bell ringing down on wall street and the person ringing the bell, i think its on the nasdaq side, right, andre durant, Ping Identity ceo. Their ipo is coming out today. We will have them on in the 11 00 a. M. Hour. Ceo of Ping Identity. Theres reason to cheer today, by the way. The markets are doing pretty well. You see some red on the screen but the majority is green, as we see an up market of about 30 points, as the market opens on the big board. Lets take a look at the s p, see if its all the way through the indices. The s p is up about. 15 . Not a huge opening but again, considering it was down most of the morning premarket, thats a good thing. And nasdaq is the healthiest of all the openings, opening up about a quarter of a point. 17 points, to 8,195. Take a look at oil. Its up a little bit. Remember, we had been down for the past couple of days as tensions seemed to ease a bit in the mideast. Now tensions may be racheting up a little bit as the Iranian Foreign minister said some nasty things about the United States and saudi arabia. That sent shivers a little bit in the oil markets and they are up about 47 cents for a barrel of oil. U. S. Steel. That is the big individual stock story. Huge company, of course, they did well initially with the tariffs, steel tariffs on foreign steel, but eventually as the World Economy began to slow down, partly because of trade tensions, that put an edge on steel as people stopped their orders for steel. U. S. Steel is now down 11. 5 in fast trading markets to 10. 92 a share. But now its at 12. 25 loss for u. S. Steel. Joining us, michelle mckinnon, susan li and ashley webster. Michelle, you have been consistently bullish. What could turn you bearish right now . I would say the consumer. The consumer continues to be strong, the consumer is the backbone of this economy, of america, and i think if i saw the consumer slow down in regards to retail sales, if i saw the consumer be less optimistic, i would say that would be a cause for concern. David although we have to say that yesterday, despite all the doom and gloom that we have been hearing from commentators on air and everything, we still are the strongest economy in the world. It seemed like the fed was saying that. Susan thats right. By the way, one of the main governments that still pays you for holding some of the debt that the country owns. But expected to show the slowest growth since the financial crisis. We are only looking at Global Growth of 2. 9 , the worst in ten years. That also justifies why the fed had to cut Interest Rates yesterday and they might cut again, 60 say they might cut in december this year. David in fact, it was powells statements after the initial figures came out of the rate cut where he suggested that if the economy slows more, they will be more aggressive, maybe not cutting rates specifically but broadening ashley they will have to be. Its interesting, 2. 9 , europe would kill for 2. 9 growth. Its barely growing at all. But theres no doubt, we are the only game in town. Our economy is doing fine. Theres mixed data but overall, theres been more hopes in the housing sector but the fed is going to have to keep cutting just to compete with such low rates around the world, especially in europe. The strong dollar kills you, right . David but our economy compared to europe, take a look at european markets right now. I think we can put that up on the board. They are up right now. Thats a good thing. But you look at whats happening in germany which had a bad quarter, negative quarter. You look at a negative quarter in the uk. Michelle, im wondering why would you think theres some bargains to be bought in europe right now . Im laughing only because lets face it, guys, you dont get good prices with good news. Without question, europe is trading at historically low valuation, they have a higher paying dividend. Im sure if we sat here in 2008 and 2009 with all the terrible news, not that im saying its similar, but still, youve got to think about those similar motions, similar reactions when you look at all the bad news. Thats where you get good prices. Susan also, if you look at it, you should be avoiding dollar assets because the fed is so obvious that they want to weaken the currency, the u. S. Dollar, you might as well look elsewhere where you might find bargains like europe and outside of u. S. Borders. David but im a hard sell on this. I look at what theyre doing with regard to their economic policy. They are going in the wrong direction. Susan for now, though. For now. David theyre not lowering tax rates, theyre not deregulating. In fact, you have massive regulators in the European Union who were reaching over the pond ashley the central bank only needs to do so much. Christine lagarde will be taking over the ecb, says you can only put so much fairy dust on this. Shes calling on individual governments, germany in particular, to do more on the fiscal policy side. Susan they have the power over their own currency. Ashley they still try to help their own economy. Susan germany has benefited from a cheaper euro. Has everybody else, because theyre slowing down . Probably not as much as germany. Heres the thing i think youre missing. Youve got a lot of companies overseas, particularly in europe, you have multinationals in europe. Lets pick shell. Shell is a Multinational Company that has global sales that is trading on a much lower valuation to exxonmobil. Which has very similar revenue. To me, its not like shell gets all its business from europe. Its trading at a lower valuation, a better yield. Those are the kind of opportunities im talking about. David im going to switch to some music for stuarts ears. Hes not here but he would love to hear about this. Microsoft is buying back shares and hiking the dividend. Michelle, shares of microsoft are up 36 this calendar year. Would you buy it . I think its very important to still have tech. We own it in our broadbased etfs growth sector. Would i buy a tremendous amount, im not sure. Its obviously had a massive runup. I think tech is still important to have in the portfolio. I certainly wouldnt back off of it. David you are talking about facebook. Its not only microsoft. Susan but microsoft is doing some Financial Engineering because they actually havent finished off the 2016 Share Buyback program and are adding another extra on top, bumping up the dividend by 11 . You can do that when youre worth a trillion dollars and there arent that many bargains out there to spend your cash. David on the other hand, if you are spending your money not on building, investment, sending it out to shareholders, thats a problem. Ashley it is a problem. People would like to see that money used to build the business but shareholder value is tremendous. The stock has quadrupled in five years and as you say, it has reached a trillion dollar market cap. Impressive. David whats impressive is the market is up 80 points right now. The Dow Jones Industrial average is up 80 points. Again, for most of the Early Morning premarket activity, we were seeing negative numbers. That seemed to turn around on news from larry kudlow on mornings with maria and others that trade talks were improving with the chinese. Well see what happens there. Meanwhile, olive garden, parent darden restaurant sales, coming in lower than expected. Take a look at whats happening with the stock, its down about over 4. 5 . Fed ex, remember what happened yesterday, a really bad day for fed ex. Today, kind of flattening out. Figures 150 is a good place to stop in the downward movement. Investors think that for now. Check roku, down again on new streaming competition, down just a tick. Look at Home Builders ahead of existing home sales. That comes at the top of the hour, about 10 00 a. M. Eastern time. Its a mixed picture on Home Builders. They are waiting for the numbers to come in. Great stuff, everybody. Thank you very much. Now this. Facebook chief Mark Zuckerberg has a plan for moderate internet regulation. Thats what hes calling it. Hes going to be on capitol hill today to pitch it to members of congress. Joining us is jim anderson with social flow. His firm helps companies with social media. Whats interesting, today is the hearings but yesterday lavent night, not only was he wining and dining but was being wined and dined by a lot of politicians. It was senator mark warner had a dinner for him where the wine was flowing. Theres something unseemly, mark warner will be introducing legislation will social media, yet hes being wined and dined and wining and dining zuckerberg right before he introduces this stuff. That doesnt look right. Its such a better look for facebook than sitting in front of the camera uncomfortably surrounded by all of the house or senate and you know, all the cameras. Its a much better venue for Mark Zuckerberg to sort of get out there, have some oneonone relationships, build relationships on both sides of the aisle. David dont get me wrong, i think its a smart move for zuckerberg. Nobody is saying this guys not smart. Its very smart move by zuckerberg. But for the outsiders, for us civilians outside of the world of tech, it looks unseemly. This is a guy who is hobnobbing with politicians who are supposed to be regulating him, coming out with regulation that will affect him, doesnt look right. I understand that. Dont make a mistake, he will take his flogging. Facebook has so many issues. They are playing whackamole. They have antitrust concerns which is really the umbrella concern hes most concerned about. You have privacy, you have alleged election interference, you have alleged bias against certain political views, youve got the Facebook Libra cryptocurrency we have talked about. Hes got so many issues hes dealing with. Im pretty sure those meetings are not all happiness and light. David bottom line, we always see it whenever hes facing off with congress, you say its uncomfortable for him but i think its much more uncomfortable for the politicians who dont know enough to really carry on a conversation with him. Thats a great point. This is a complicated sector. He obviously has built a Company Worth more than 5 billion. We have seen time and again most of the regulators and congressional leaders dont necessarily even understand how his business works. David great to see you. Thank you very much. More on Mark Zuckerberg coming up at 11 00 this morning. We will be talking to south dakota senator john thune. I want to know what he wants to hear from the facebook chief during his trip to d. C. Today. Also at 11 00, President Trump trying to appeal to blue state voters with trips to places like new mexico and california. Is this just a waste of time . We will be asking trump 2020 Campaign Press secretary Kayleigh Mcenany coming up. Up next, we have florida senator rick scott. Hes fired up about medicare for all socialized medicine. He says the American People deserve to know exactly how much these proposals are going to cost before we vote on them. More varney coming next. I get it all the time. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Thats where i feel normal. Having an annuity tells me my retirement is protected. Learn more at retire your risk dot org. David check on the big board. Its pulled back a little bit. It was getting a little out of hand, considering it was negative for about the three hours preceding the market opening. It went up to about 80 points positive on the dow, its now about 51 points to the positive side, 27,198. Its day three of the gm workers strike and gm is no longer paying for striking Workers Health insurance. Its a very interesting situation. Everybody was thinking that this was going to be kind of an easy play here but it may go on a bit longer than expected and the stock is down today. Here we go, stuart. This ones for you. Microsoft just hitting an alltime high. There you go. Got the trumpets and everything. Its up 2. 77 right now. Thats a 2 gain, to 141. 33. Do you know how much it was when he bought it . Probably about ten cents. Well, you know who to borrow money from. Meanwhile, some truly astronomical numbers have been thrown around when putting a price tag on medicare for all. Now senator rick scott wants some answers from the government bean counters. Senator scott joins us now. Senator, Bernie Sanders has pretty much accepted this george mason study that shows its going to be anywhere from 33 trillion to 40 trillion over ten years. Thats about a doubling of the u. S. Budget. Thats enough for me. But you want the cbo on it, right . First off, when you go to the store, dont you look at what things cost . David of course. Sanders, warren, cory booker, all of them, medicare for all. Shouldnt we know what its going to cost . I asked the Congressional Budget Office whats it going to cost. You would think all those wonderful president ial candidates from the democrat side would want to team up with me and say we really want you to do it because they havent done it yet. Do any of them want to do it, no, because they actually dont want people to know what its going to cost because then they have to answer whose taxes are going up. David exactly. We saw liz warren, by the way, even stephen colbert, who is not known as a right wing extremist, pressuring her saying arent middle class tax cuts arent middle class going to have to have tax hikes as a result of this and she wouldnt say. If she does, by the way, i think we are going to have a Walter Mondale moment. Remember in 19 was it 1984, when Ronald Reagan was running for reelection, sort of bragged about the fact that he was going to raise taxes. I think we have that clip. Lets play that. Mr. Reagan will raise taxes and so will i. He wont tell you. I just did. David well, as a result of that, many people say Walter Mondale lost the election. By the way, Ronald Reagan did not raise taxes, he lowered them significantly in his second term. I think warren and the others trying to avoid doing a mondale thing. Absolutely. We dont need tax increases. We need to spend our money better. Look, we need to know the number. Im asking right now, national television, Elizabeth Warren, join me in the letter, Bernie Sanders, lets get on this. Lets make sure the cbo tells everybody so that you can tell everybody exactly how much their taxes are going up because one, your taxes are going up and your health care will be worse because the government doesnt do a good job. David i think its a terrific idea. Remember that nancy pelosi line, well read it after we vote for it. We should know how much its going to cost before any chance of voting on it. Before you go, senator, youre concerned about the government buying drones from our adversaries. I didnt know this was happening. Tell us about it. Well, do you want your adversary to be spying on you . David no. We are buying drones from china. Think about that. Our federal government is buying drones from china, then china has all that information so they can spy on us. How crazy is that . So my bill would say were not doing this anymore. Were not buying drones to spy on us from our adversaries. China is clearly an adversary. Theres no ifs about it. We dont want to do business with huawei. David have you heard any response from the pentagon when you ask them about this . Everything i have known so far, people are very interested, they get it, they understand it. They want to make sure theres Good American product. There will be american product if we buy it. Its pretty simple. David i have a very simple last question. You were governor of the great state of florida. Now you are senator from that state. Which job do you prefer . I like both of them. David oh, come on. Youre hedging. Its just a different job. I love my job as governor. I got to solve state problems and now i get to work on, you know, on National Issues and interNational Issues. This is a great job. I get up every day excited about it. David you still get to file your taxes in the state of florida where you dont have an income tax . Do thats right. Yep. I file in florida and hope everybody moves to florida. 500,000 people moved last year. Its the best place to live. David i dont know if it will fit 300 Million People but i agree. Its a nice place to live. Great to see you. Thank you for being here. Appreciate it. Check the dow 30 stocks. They are up, its a nice gain on the dow, up 50 points to 27 almost 27,200 right now. A lot of news this week on streaming. Companies are spending hundreds of millions of dollars to land classic tv shows like seinfeld and the Big Bang Theory but which streamer will come out on top . We will ask a top tech watcher, next. Orlando isnt just the theme park capital of the world, it also has the highest growth in manufacturing jobs in the us. Its a competition for the talent. Employees need more than just a paycheck. You definitely want to take advantage of all the benefits you can get. 2 3 of employees said that the workplace is an important source for personal savings and protection solutions. The workplace should be a source of financial security. Keeping your people happy is what keeps your people. Thats Financial Wellness. Put your employees on a path to Financial Wellness with prudential. [upbeat action music] pilot were going to be on the tarmac for another 45 minutes or so. So why isnt it all about you when it comes to your money . So. Whats on your mind . We are a 97yearold firm built for right now. Edward jones. Its time for investing to feel individual. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. David take a look at some of the streaming stocks, as netflix pays about half a billion dollars for seinfeld and hbo shelled out 600 million for the Big Bang Theory. Its kind of a mixed situation right now. Joining us is market watch tech editor jeremy owens. Great to see you. What do you think about this . Is it a smart use of money . For netflix to go after seinfeld . You know, the thing is, those kind of programs are not going to attract subscribers. For a service like netflix, which already has a lot of subscribers, that will keep them on. The problem with all of these streaming services coming on together is that people could churn through them. Im going to have netflix this month because i want to catch up on orange is the new black and then i will go to hulu to catch up on this one and then im going to cancel that and go to this one. The way you combat that is to have some of these shows that people will always watch even if theyre not watching anything new. They will turn on friends or seinfeld or something they have already seen because its funny and comfortable and they will stick around and not churn out. So Companies Like netflix that already have a lot of subscribers need those type of shows. I dont see it as much for Something Like peacook, nbcs new streaming service. Nobody will pay nbc a monthly fee to watch the office. David good for netflix, bad for nbc. Take a look at apple, if we can. The iphone 11 comes out tomorrow. Reportedly preorders have been really good for apple. Its down a little bit but just a tick, 222. 50. What do you think about the iphone 11 . Preorders look good, but could that be misleading . Well, sure. The preorders look good means that there are certain models that are pushed out to longer delivery times. Apple could totally do that. There is no visibility to see these preorders are actually doing well. One way we have always known, usually preorders go off on friday, apple will put out a press release on monday if theres anything they can claim as a record. We didnt get a press release monday. I dont think theyre spectacular. Im sure theyre fine. David okay. All right. I want to talk about 5g for a second. It is being rolled out, we know china is way ahead of us in terms of the rollout. But other countries, switzerland in particular, is moving ahead with 5g. Nevertheless, there are concerns. Serious concerns by politicians there about radiation, the way you beam out 5g carries a lot more radiation than it does with our regular system now. Is that a concern for you . You are a tech guy. You deal with these things all the time. Are you concerned about 5g radiation . Not in the least. You know, we went through this with smart meters out here in california, you know, it throws off more. Eventually we will get to the point where we have to start regulating this. We do regulate it but its not at a point where im scared of it. David great to see you. Thank you for being here. Appreciate it. We have breaking news. Walmart president and ceo Doug Mcmillan was just named chairman of the Business Roundtable. You remember they came out with this report yesterday suggesting theres a slowdown in the economy. Hes going to be replacing jpmorgans jamie dimon, who has been chairman of the roundtable since january 2017. Dimon is going to remain an active member of the Business Roundtable but again, they have been pouring a little cold water on the economy. We will be talking to other guests about whether thats the right thing to do. Secretary of state pompeo, meanwhile, says iran is responsible for the attack on saudi oil facilities. President trumps military options are not off the table. Here is the question, though. Could we be heading for any kind of ground war with iran . General jack keane is coming up on that. Plus every time you fill up your car with gas, part of the tax you pay goes to Highway Maintenance but as of now, electric cars getting a free ride and anyone who buys one gets a hefty subsidy from the government. Senator John Barrasso wants to change all that. Hes going to tell us what his plan is in our 11 00 a. M. Hour. Check the big board as we go to break. Markets are up today, very nicely. An important piece of Economic Data is coming up at the top of the hour. We are going to get the latest read on existing home sales. That could change either positively or negatively the way the market is moving now. We are going to break the number down for you, thats coming next, right after a short break. At fidelity, we believe your money should always be working harder. Thats why your cash automatically goes into a Money Market Fund when you open a new account. Just another reminder of the value youll find at fidelity. Open an account today. Imagine a world where nothing gets in the way of doing great work. Where an American Icon uses the latest hr tools to stay true to the family recipe. Where a music studio spends less time on hr and payroll,. This is the world of adp. Hr, talent, time, benefits and payroll. Designed for people. David nearly 10 00 a. M. On the east coast. 7 00 a. M. On the west coast. Were about to get latest read on existing home sales in august. Couple stocks stand out. Microsoft hitting alltime high today, along with the market it is up. Oil is up tick as tensions in the middle east seem to be getting more tense but u. S. Steel, a big story of the day. That sort of rockefeller stock as we call it here, down significantly double digits. We just got numbers on existing home sales. Susan . Susan better than expected, 7. 9 million homes. We were expecting 5. 3 million. Better than expected. Inflation story and up tick were seeing in housing. Existing home sales represent 90 of the market. July was a better number as well after what we called a disappointing spring selling season. Interest rates were up over 1 month over month. That is encouraging. David it is encouraging. Susan Housing Starts yesterday seeing the biggest gain in august since 2007. So the Housing Market might be bumping up once ben. David once again predictions of a falling economy looking badder, worse and worse as we go along. We got the latest read on mortgage rates. Ashley, interesting number here. Ashley an uptick. An uptick nearly the biggest uptick in a year. 3. 73 . David still very low. Ashley still very low. 3. 56 last week. So there is nearly a year of, first uptick in nearly a rear. There is positive news, purchase applications up 13 yearoveryear and residential permits over 12 yearoveryear. The demand is there, even if we saw an uptick in mortgage rates. David talk to a guy selling his house. Our own Gary Kaltbaum is with us here. At a good price. At a good price. At a good price by the way. What is the question . David overall existing sales numbers, pretty good. I think housing numbers are fine. Look, you know i have never called for recession in spite of many calling for recession and depression. I think were pretty decent here. My worry has always been were not immune to what is going on around the globe. There is some issues in europe. There is issues in asia. Of course the trade war and all that other stuff. Something has to be watched closely. For me, there is no way were going into recession when the market is at or near new highs. The market will flush it out first. If the market is down 10 or 15 well think about it but i think were in good stead here. David you see pockets though. Housing is a good pocket or at least the month of august. You look at the pockets of u. S. Steel and fedex. Of course. David there are individual pockets of concern. Are they harbinger of the economy. Markets alltime high. David talking u. S. Steel. Were looking at it, down 13 1 2 today. Of course they benefited initially from the tariffs on foreign steel but as those trade concerns slowed down, World Economy, people stopped buying as much steel as they were. That is what is hurting the company now. Look there is a bear market in steel. Something that has to be watched which really has not affected the overall, especially here. Im not going to say it is company specific. If you look at nucor, some other steel stocks, not very good, even though u. S. Steel is much worse than others. But on the whole, i think were in decent shape. And now you have our central bank after 10 1 2 years and full employment, and actually says yesterday, they will have no problem printing money even if we dont go to 0 or have any trouble. Markets absolutely love that the wealth effect will stay in full gear. That helps the economy also. David President Trump, for one, was not very happy with a quarter basis point cut. He thought there should have been a bigger cut. What do you think about that . Well President Trump, well, candidate trump when obama and yellen were at 0 was yelling at screaming at them being too easy. Now all of sudden theyre two tight at 1 and 3 4. David there is a difference between 0 and one and 3 4 of a percent. There is significant difference. President obama had 0 for most of his presidency. That gave him a big leg up to do a lot of other things. You wont see me arguing. I cant stand that there is 0 screwing savers. I think the president should leave well enough alone. 1. 75 on fed funds and ten year. That is easy money. Powell as much as i cant stand the fed is in line with the markets. David he is is not line with what is happening in the world . Do we want him to be . Were not supposed to be. Because somebody is at negative rates means we should be at negative rates. David right. Does it mean that we should be lower than what we are now. We have never, ever, had to be in line with everybodys rates across the globe. There are some countries with rates at 8 . David gary not listens. I didnt say in line. Should go to negative. Should we lower ours so the dollar makes our goods more competitive than they are right now. I think around here is pretty darn good. The economy is sound. Who knows what is down the road. Markets are acting fine. I think the president should back away, and leave well enough alone. Im a big believer when things are going right, less is more. David you know what, gary, generally i agree with you. I like the pressure the president is putting on get. They deserve the pressure. They might do what they didnt do yesterday, not cut at all. That would be a concern if they didnt cut at all. At least there was a quarter percent cut. Watch the 10year yield, if it stays here, no reason to do anything. If yields start tanking again, they have to play catchup. David gary, good luck selling that house. See you tonight, good sir. David absolutely. On bulls and bears at 5 00 p. M. President trump says he will use the epa to crack down on San Franciscos homelessness problem. He said the waste from homeless people, used needles is creating environmental problems. Matt ma cove yak, Potomac Group president. Youre from austin, texas, nowhere as bad as it is in San Francisco but do you think the president is on the right track here . I do. The homeless challenge in the major cities around the country is gets worse. Think about this statistic. California has the largest number of individuals than any other state. Three quarters dont have shelter. New york state, only 5 dont have shelter. California is problem totally different scale than any other place in the county. L. A. County last year saw homelessness increased 12 in one year. After passing a billion dollar bond in the city of los angeles in 2016. After passing a tax increase of 300 million a year over 10 years in Los Angeles County in 2017. David matt, let me get to you talk specifically about the epa. Sure. David the epa was set up to regulate those things hurting Public Health. I would argue, i think the president make make as good cas, Public Health is now endangered by simply the irresponsibility of these city leaders to clean up the streets . No question. Public health and Public Safety are both threatened by large homeless populations that are allowed to do whatever they want, wherever they want, whenever they want this is absolutely the case in places like los angeles and San Francisco. This is a novel approach i think the Trump Administration is taking by looking at this through a pollution lens. The left claims to care about the environment, claims to care about things like beautification in urban areas. Lets see if they put their money where their mouth is with the Trump Administration and my guess is they want. David we saw how to turn around in homeless crisis in 1990s. Mayor giuliani did it near had new york city. Is it was not humane for people to live and defecate on the street. It wasnt humane for them. It wasnt healthy for the homeless. Well get you into a homeless shelter but put you away. You will not sleep on the streets. He cleaned up the street for 15 years. It was fine until things began to change with de blasio. No thats right. Obviously homeless populations are complicated there is drug and alcohol abuse. Those need treatment. They need to be off the street. People with Mental Health problems. They need to be off the street. They need shelter there is no question. That is part of the reason why the Trump Administration in june, President Trump signed an executive order to ease Affordable Housing development. Theyre doing what they can at the national level. Ultimately cities and states are going to have to step up. David there is a word that these city and state leaders have to know, intervention. You dont allow people to continue to live in horrid situations if you care about them. If they really care about the homeless they would intervene to get them off the streets. Matt, thank you very much. Good stuff. Thank you. David facebook founder Mark Zuckerberg is in capitol hill, meeting with lawmakers, to make a pitch for moderate internet regulations. Hillary vaughn is with us. Hopes they will be moderate changes, right . Reporter that is kind of the point of this twoday trip with zuckerberg to have face time with lawmakers behind closed doors, talking about potential future internet regulation. Last night senator mark warner organized a dinner with a group of senators including senator Richard Blumenthal who publicly called for facebook to be broken up. Blumenthal told fox earlier this morning that the meeting went great. This is very interesting. This is rare trip tore zuckerberg who has not been on the hill since he testified in a public hearing before Congress Last year. They want to talk about a number of issues. Election security, antitrust concerns, potential conservative bias and user privacy. This afternoon zuckerberg will meet with one of the loudest skeptics of his company, senator josh hawley who has been outspoken about conservative bias on the platform and possible censorship. Hawley called for a Third Party Audit of facebook. That is likely to come up in his meeting this afternoon. Facebook requested a meeting with senator brian schatz who has been very critical of facebooks cryptocurrency libra. So what happens behind closed doors, were waiting to find out. It is very clear, david, that Facebooks Zuckerberg really wants to get facetoface time with these lawmakers in behind closed doors. David . David i would like to be a fly behind those closed doors, to hear what is happening. Hillary, thank you very much. Irans foreign minister has threatened quote, allout war in the event of u. S. Or saudi military strikes. This threat coming as President Donald Trump promises to increase sanctions on iran. What are we going to do about all this . Well be asking general jack keane later this hour. I want to know whats up with the u. S. Chamber of commerce talking down the economy . Our economy is strong so why are their numbers on Small Business that they just came out with so negative . Well be asking them. Meanwhile, Holiday Shoppers are expected to spend over one trillion dollars this holiday season. That is according to deloitte. Our top retail guy is next. Does he buy those numbers . Well ask him right after this. 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Flonase sensimist. 24 hour nondrowsy allergy relief david checking the big board. Were Holding Steady on the plus side for the Dow Jones Industrial average, up about a quarter of a percent point, 70 to the plus side. 27,217. Check u. S. Steel. All this is happening with the dow despite the fact that u. S. Steel is taking a huge hit today, sort of like what happened to fedex yesterday. It is down 13 1 2 more or less right now, down to 10. 77 a share. Steel purchases are going down worldwide as a result of trade tensions. Initially the trade tariffs put on foreign steel helped u. S. Steel. Now it is pretty clear that the trade tensions are causing the opposite to happen. Check overstock taking a hit, Patrick Byrne talked about his problems right here on Varney Company, we were the first place on television any way he talked about what had happened to him that eventually led to his departure from the company. He sold 5 million shares over the past three days. And that has led to a problem for the stock itself. It is down about 4 right now. Of course this is a stock that trades four, 5 either way on a single day quite often. There might be some other factors here. He said he will help recapitalize the company if it needs it in the future. Meanwhile the Holiday Shopping season is around the corner and deloitte is expecting sales to trop one trillion dollars. Lets bring in jerry store storch, a retail icon. Do you believe the figures . How can you tell what a consumer can do two months from now . No one can forecast the future but the best indicator of the future what is happening right now. We say in retail the trend is your friend. Sales are up 4 yearoveryear. If i were a betting man, absent external forces you will see sales up 4 next few months. Deloitte said sales up 4 to 5 range. The consumer is strong. They have been strong for several years. Employment near full employment. We saw jobless numbers today, freight again. David right. People are working. When they work, they have money. When they have money they spend it. David pretty simple. Another one for you, gerald. Fedex, profits down this quarter. Coming after they cut their business ties with amazon. What is your take on fedex . Well, amazon is a big deal. Amazon is over half of ecommerce in the u. S. Alone. And so they couldnt come to terms on pricing. So fedex parted ways. That means that fedex is not taking part now, at least not fully in this whole internet revolution. Where the growth is in consumer sales. In that same august report i mentioned earlier on retail sales, the Internet Sales were up over 16 yearoveryear. It was just incredible. Now fedex has lost that best from amazon. Also its a global company. Theyre taking a big piece of that global slowdown weve seen even though the u. S. Is more robust. Internationally it is not so strong. So theyre seeing that happen. If anyone is hurt by tariffs got to be a company that makes its living through trade which is what they do. David fedex reinvented itself time and again very successfully. Do you think they will do it again here . Fred smith is one of my business heroes. Every company goes through a rough patch but they always offered tremendously innovative services. Im sure they are working on that now. Everyone is chasing them since they began. Remember when they first came out with twoday service. Everyone raced to oneday service. Everyone raced to oneday service. Then we get there by 10 00 a. M. 10 00 a. M. A. M. , whatever it is. They are a fine company. They made the business decision that amazon was not profitable at levels amazon wanted. Amazon has become their competitor. They are identifying them as such. Amazon is shipping the packages themselves. David gerald storch, thank you. My pleasure. David well talk to the ceo after company out with a debit card for kids . Would you want your kids their aim is teach youngsters about saving money. That is a good idea. I dont know, are you addicting kids on debit cards, credit cards early on . Well can for hem. The governor of new mexico wants state residents to be provided Free College Tuition with the growing list of democrats wanting Free College Tuition. The question as always, is, how will they pay for it . After this. Have fun thanks to you, we will. Aw, stop. This is why voya helps reach todays goals. All while helping you to and through retirement. Um, you guys are just going for a week, right . Yeah thats right. Can you help with these . Oh. Um, were more of the plan, invest and protect kind of help. Sorry, little paws, so. But have fun send a postcard voya. Helping you to and through retirement. At aetna, we find that inspiring. Ot game. But to stay on top of your game takes a plan. Thats why aetna takes a total approach to health and wellness. With Medicare Solutions designed to help you age actively. Aetna Medicare Solutions. That could allow hackers devices into your home. Ys and like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. David more free stuff. New mexico out with a plan to offer free college for state residents. Kristina partsinevelos is here with more on this. How does it work . Reporter before we get to new mexico we have to talk about the fact that student debt levels are astronomically high. It hit a new record. For a bachelors, debt level is 29,200. It increased 2 . The growth rate is little slower. There is good news. If you live in connecticut you have the highest amount at almost 39,000 worth of debt. If you live in utah it is the lowest. Often we hear a lot of people talk about the rising debt level. Politicians like Elizabeth Warren and Bernie Sanders saying we should wipe out student debt at the state level. That is where the new mexico part comes in, theyre taking it into their own hands. New mexico proposed a new Free Education for all residents regardless of your income. Tough attend 29 of the Public Institutions within the state. They plan to pay for this, the cost is 25, 35 million, the estimate, will pay for that through oil revenue. It still needs to pass legislation but it would be free tuition at these Public Institutions. New york has a similar plan where its free as long as you dont make more than 125,000. David that word free is thrown around easily. It is not free to the taxpayers who have to bail out the kids who have student debt or who have to pay for the thing, right . Precisely. That raises a point, critics arguing that tax dollars go up, the fact maybe money should be better spent towards health care, or, you opt to make this choice to go get a Higher Education over the lifetime, person with a bachelors degree ends up making more money. You have to pay the debts now but later on you make more. This is ongoing but it is a problem though. 1. 6 trillion. Expected to go up to 2 trillion for all student debt. We hit the peak or maybe not the peak but the highest levels. David you remember how much the tuitions are really worth in the bottom line. We can get into the debate of government subsidies. Why are they giving money to schools. David we can indeed. Kristina. Good point. United auto workers strike is it continuing. Gm dropped Health Insurance for those on strike and the people on strike only live on 250 bucks a week. How can you live on that. Boeing chief will not allow the boeing 737 to take to the skies until he i am heavily, he is a licensed pilot, flies the plane. Imagine a world where nothing gets in the way of doing great work. Where an American Icon uses the latest hr tools to stay true to the family recipe. Where a music studio spends less time on hr and payroll, and more time crafting that perfect sound. Where the nations Biggest Party store can staff up quickly as soon as its time for fun. This is the world of adp. Hr, talent, time, benefits and payroll. Designed for people. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Baby youre a rich man, baby youre a rich man too david stu, likes, baby youre a rich man . Ashley i believe so. David surprise, surprise. It should be the theme song for this show. Its a good day. A good day to get rich. The market is up 84 points right now. It was down significantly in premarket activity but turned around when there was good news on china trade talks. That is always what tips the scales at least for the past year or so. Market, dow jones trading at 27,232 right now. The u. S. Chamber of commerce out with new data that says the china trade war is hurting medium sized companies. Lets bring in neil bradley, the u. S. Chamber of commerce executive. Good to see you. Thanks for being here. There is so much good news. Why so negative . Well there is great news on the consumer side. Generational low unemployment, rising wages. Consumers are spending money. You go to the business side there is less good news, right . So big businesses are drawing back on investments and fixed property for the first time now were seeing middle Market Companies which are 40 of the economy, 40 million jobs, who are expressing uncertainty about the future, what theyre cite something uncertainty with the trade wars. 40 of them say that tariffs are hurting their business. David you know what is not uncertain about the future, neil, are millions of investors all around the world who have nothing but bad news report on their economies who bring their money here because they see a booming u. S. Economy with the best jobs market i have ever seen. No question were doing better than relative to the rest of the world but we should be doing better here at home. Policy decisions are holding back Economic Growth here. At the chamber we dont want to settle for two, 2 1 2 Economic Growth. We think we should be at 3 . David i think the president thinks 5 . He thinks you have to do something about the chinese who have been eating our lunch for decades . Sure. He deserves credit taking on the chinese. David what is he doing that is bad policy decision . It is escalation. Imposing tariffs, getting to the table, threatening to impose additional tariffs whether on china october or in december. He currently threatened to do, or tariffs on automobiles out of europe or japan. This is the sword of damocles david we signed a partial trade agreement with japan. My point is, neil what do you do other than the president is doing to get these countries to act the way they should act toward us . There is lot of things we can do to rein china, including with our allies. Frankly we should have stayed in the transpacific partnership. We would have had allies surrounding china to challenge them economically. You know, there is a lot of things that we can do. There are certain things that we should be doing right now to help the economy. One is halting the escalation of the trade war. Two is Congress Passing usmca. Congress has a lot of responsibility here too. David absolutely they do. Do you think that will pass before the election . I do. I think it will pass before the end of the year. David wow. I think it will pass before the holidays. David really . That is one reason we love to have you here you guys have great information what is going on inside the beltway. Nancy pelosi does not want donald trump to have any win before the election this could be seen as a beg win for the president and his trade push, it could also provide us with leverage dealing with china. Why would she be willing to give him that win . I give a lot of credit to the president and ambassador lighthizer and nancy pelosi. Theyre actually working through issues trying to come up with something that both sides support. You saw statements out of Speaker Pelosi last couple days, that were very encouraging. All sides are entering in good faith. One thing we at the business community, chamber are asking politicians to do, put the American People and economy first. At least with respect to usmca they appear to be doing that. We have did over 90 events with members about congress in their districts over august. Members of congress, whether theyre democrat or republican want to vote for this bill. Im confident that they are going to have that chance before we all sit down and celebrate thanksgiving dinner. David wow. From your lips. Before thanksgiving . That is a very optimistic preview whats going to happen. Neil bradley, good to see you from the chamber of commerce. Thanks for having me. David news on amazon chief jeff bezos is hitting back at his critics saying that the his company doesnt do enough for the environment. Theyre buying up 120,000 electric cars. They are vowing by 2030 to be powered by 100 Renewable Energy. Well tell you about that coming up. The United Auto Workers strike against gm continues. Gm has dropped the strikers health benefits. Grady trimble is in detroit. How long can this last . Reporter hey, david. Well have to see. It is starting to get political. Amy klobuchar running for president as a democrat will arrive here any minute, talk with picketers and meet with them. One of their big concerns they dont have Health Insurance coverage through general motors. Gm stopped paying for that to put pressure on the union. Now that means the union starts to pick up the tab under a program called cobra. The problem with that, they have to pay for that out of the emergency strike fund. That could potentially drain it even quicker. It doesnt include health and vision insurance. That is a concern for these people. There is also confusion what is covered and whats not. They will be talking with regional representatives with the union in the coming hours to try to figure all that out to make sure it doesnt affect them and their families as this strike goes on. For now the talks are going on a few miles from here. There hasnt been much that has come out of those conversations as of right now but well keep you posted with the latest as soon as we learn any new developments. David grady trimble, thank you very much. Nbc announcing their new streaming service. It is called peacock, not surprisingly launching in april. No price named yet. Roku and netflix were both down on this news. Apple has a big reopening of their fifth avenue store here in new york. Susan, we remember the glass cube. Will this look like anything like that . Susan it has been unwrapped the iconic apple glass cube. It was closed in 2017 for renovations. It has taken two years to get here, reopening on friday to the public, just in time for the iphone 11, when sales officially go online. As you can see here, executives from apple talking to the media. David you see the logo with the cube around the apple. The head of retail, and people, she tooked it off. She took over the job from angela arrons, former burberry ceo. It is bigger and brighter. Executives wanted more natural lighting since it is downstairs. It is underground. We have tim cook who will be in attendance tomorrow morning at 8 00 p. M. Just in time for the arrival of the iphone 11. Preorders are pretty good. Retail, bricks and mortar still important to a company like apple even if they are moving into services. David apples stock up a tick. Oil up 2 amid tensions with iran ratcheting up again. Irans foreign minister is threatening allout war with a saudi or u. S. Military strike after President Trump ordered new sanctions on iran. We have general jack keane coming up on this next. The fed cutting rates a quarter point. President trump is not happy. He wants rates going even lower. Here is the question, will we see more rate cuts this year . Were asking the one and only charles payne. That is at the top of the next hour. This is the age of expression. But shouldnt somebody be listening . So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. [upbeat action music] pilot were going to be on the tarmac for another 45 minutes or so. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because 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. Ive been through two tours of duty, and luckily, i came home with my health. But what almost ended up taking me down. Was a stroke. I thought i was invincible. But its really humbling to face an enemy you dont see coming. Fortunately, life line screening showed me i was at risk. 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Ash, what are the details. Ashley they filed lawsuit against manhattan d. A. Against cyrus vance and according to documents filed in manhattan federal court. Basically the democrats through cyrus vance have been trying to get eight years of business and personal tax returns from maziars, president s accounting firm. I saw a statement from jay sekulow, lawyer for donald trump, says in response to the subpoenas we filed lawsuit in federal court on behalf of the president in order to address the significant constitutional issues at stake in this case. David that is the story. President trump is suing the manhattan d. A. Cyrus vance. Ashley yes. David big story. President trump is ordering new sanctions on iran after the Saudi Oil Facility attack. Roll tape. Well see what happens. A lot of things would happen. If we could have a peaceful solution that is good. Possible that wont happen. There is never stronger country military, not even close. David bring in general shake jack keane. Foreign minister saying any saudi strike on iran by United States or saudi arabia or anybody else would lead to quote, allout war. Theyre free to strike wherever they want but nobody is free to defend themselves, right . Well, first of all i dont buy the statement he is making. That is bravado, psychological warfare designed to strike fear in the American People. Designed to impact the analysts and decisionmakers that, if the United States responds militarily with a coalition based on what iranians did, egregious act of war in attacking the worlds economy. Certainly retaliation to completely justified based on that premise, then theyre going to, going to allout war. That is nonsense. Why is that nonsense . Because the iranians, first and foremost want to preserve power and run their regime. And if they do anything, like theyre describing, then, the United States would have no choice but to respond comprehensively against them and they would lose their regime. Theyre not going down that road. Here is what they fundamentally believed, they miscalculated. They miscalculated all along about the administration. They never expected comprehensive sanctions they put on, that the United States has put on the iranians and it is crippling them. They have negative been in such a hard place before. They have never acted so desperately as, as theyre acting now. I believe, after we go to the u. N. , lay out all the evidence, well get more International Support for what the iranians have done because it is a fundamental attack on the worlds economy. And also build a coalition to conduct a limited military retaliation. It must take place. The iranians are counting on the fact we will not do that. David general, forgive me for interrupting but the point is, every time they do something, they dont see the reaction from us i think they fear, some kind of a military retaliation, from us or one of our allies, so they keep ratcheting it up. First a hit on tankers. They take over tankers. Then a hit on our drones. Now this hit on the saudi facilities f we dont do something other than tightening economic sanctions against them, wont they ratchet it up yet again . Absolutely. They have shot down three of our drones. They sabotaged tankers and attacked saudi pipelines and oil pump stations. We tried diplomacy. We increased sanctions. E reached out to them to negotiate. That diplomacy hasnt worked obviously, but the fact is now they have upped their game as we said. They would exhaust their playbook. This is in their playbook. The next thing after the playbook would be to attack u. S. Facilities. This is an egregious act of war. This is essential that we respond. They are counting on the fact we will not. David president says we wont react unless u. S. Personnel is actually injured or killed. I dont want to wait for that to happen. That is not true. That is absolutely not true. That is not where the president is, okay . The president is playing this very close to his chest. When he plays something close to his chess, be prepared. That is what is happening here. Diplomatic efforts, build a coalition, get support for what the iranians have done. Then we have to take a measured response but it has got to be, when we do, when we do take this on, start hitting military targets and also economic targets in a limited way, it has to be consequential enough, david, to deter them. It cant be a pinprick. It cant be what we did to assad after he did the chemical attack and we didnt, we did not conduct a consequential attack on him to deter it. He did another one. It has to be significant enough to stop it. David weve got to run. But you really lay it down on the line. We appreciate you coming in, straightening it out all for us. We appreciate it. Thank you, general. Good talking to you. David good talking to you as always. More breaking news from the markets. Airbnb will file for their ipo next year. Weve been waiting for this, susan. Susan in a statement on their website, plans to list on stock exchanges next year 2020, making it one of the highest profile market listings debuts next year. They havent told us where they intend to list. Airbnb, has taken in more than a billion dollars in revenue, in the Second Quarter of 201019. They are making big sales. They have considered a direct listing according to reporting from reuters. They are going to the stock market next year. Internally they have valuation calculations. This company internally back in the spring, valued itself at 38 billion. It has been a tough ipo market. We were shelving at least for now they say until october of ipo listing. Theyre cutting valuations in half. Now a quarter of what it was. Well see whether in 2020 ashley new york city. David Hotel Industry is putting a lot of pressure on politicians. They put pressure on airbnb. A new startup launching a debit card aimed at kids. They say the goal is to teach youngers Financial Literacy are they just getting kids hooked on credit cards . Attention, Downton Abbey fans who could spend a night in the iconic mansion from the show. Well tell you how much that will cost you in the next hour. [awith doilies and tifancy mustaches. 5hour tea time starts when a client says, i want the mona lisa. 5hour tea, get a boost from a unique energy blend with caffeine from green tea leaves. I cant have an off day. Oops, sorry, no. I have to be perfect. Yeah, so, i grab a 5hour tea, and i stay energized. [announcer] go to 5hourtea. Com to buy a weeks supply. Get the boost you need or get a full refund. Let others start their tea time with kneehigh socks and bagpipes. 5hour tea time starts when you say, we have to be better than the stevensons this year. 5hour tea, b vitamins, amino acids, caffeine. You wanna be great at something . You gotta work for it. 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Com to buy a weeks supply of 5hour tea. Thats a week of more getupandgo, feeling alert, and more energetic. If you try it, and you dont think 5hour tea gives you the boost you need, youll get a full refund. Go to 5hourtea. Com. David some boeing news. This is interesting. Faa chief wont certify the boeing 737 max until he flies it himself. Ashley . Ashley he is a licensed pilot for the 737 max. He will get in the cockpit and he will fly it. He says he has to do this before the plane is certified, however him doing that doesnt mean it is certified. In fact for recertification one pilot has to fly it from boeing and one has to fly it from the faa. Mr. Dixon is not a test pilot for the faa he is just doing this to make a statement. David he is certified for the max . Ashley he is certified. He will go into the simulator to see what changes were made to the software but Interesting Development but needs to get recertified as quickly as possible for boeing. David i admire his courage. A new start up called greenlight launching a debit card aimed at kids. It is aimed to teach young folks to manage Financial Literacy and parents can monitor it from the smartphone. Timothy is here. You know what the complaint is from anybody who had kids. Do you want to get kids accustomed to a credit card while in the preattorney era . It doesnt sound right to me. It is actually a debit card. David but it looks like a credit card. Yeah, yeah, but it is actually like three accounts in one. It is a debit card that the parents have control over so they can choose the account, the stores where the kids can spend. They can choose how much the kids can spend. It has a builtin savings account as well. And a builtin giving account for parents who want to teach their kids to give back. And very soon here, in a few months, it will have a builtin investing account as well. So it is kind of the multiple accounts all built into one. But it is debit, spend what you have is the mantra and, learn to save because you need to have savings set aside too absorb the unexpected. David i appreciate new ventures and i hope you, wish you nothing but the best in the future. You have got millions of dollars in people that believe in you, have invested in this idea but when you look at the website that you have, i looked it up. It showed a 10 or 11yearold girl in front of a bunch of dresses holding debit card. It wasnt anything about saving t was about spend, spend. If you look throughout the website, even in the app when youre a customer you can see that it is not, it is not kind of heavily oriented towards spend or anything like that. It is about essentially, it has choice tracking and allowances. Idea of kids learning to perform work and actually earn money that they get, so it ties chores together with allowances. Then it has, the debit card so that you know, the kids if theyre going on a School Field Trip or traveling with a sports team or, you know, doing things like that, then the parent actually have the convenience of being able to give them some money but also have control over where it is used and how much they spend. But on the savings account, one really neat feature, one really popular feature is the parent paid interest rate. So the parent can actually set an apy at any amount this they would like. David wow. They have, so some set it at like 25 , 50 . David i was going to say. That would be my rate for my kids. Exactly. It is working. The average across all our parent is 18 and kids just saved over 10 million in the greenlight platform. David i wish you the very best. You have a lot of support from financial investors. Good luck to you. Timothy, thank you very much. Thank you for having me. David facebook ceo Mark Zuckerberg is on capitol hill. He will try pitching lawmakers for his plan on moderate internet regulations. Here is the question, can he convince hardline law make thats want tougher regulations on facebook and other social Media Companies . Well ask senator john thune. He is with us. President trump wrapping up his trip to california. Before that he was in new mexico. Seems like he is trying to appeal to blue state voters but is wasting his time there . Well ask 2020 trump Campaign Press secretary caylee mcenany coming up. President trump wants to use epa regulations to tack can San Franciscos homeless population. How will that work . We have the a former epa officialing coming up here on varney. Automatically goes into a Money Market Fund when you open a new account. Just another reminder of the value youll find at fidelity. Open an account today. David check the big board. We were up 63 points. We were up triple digits for a moment and things were looking good but again, think about how we were negative for most of the premarket activity today. Nice turnaround when people started talking nice about china trade talks again. That seemed to turn things around. The fed rate cut wasnt as much as a lot of people were hoping for but at least there was a cut. Some people were worried there wouldnt be any cut at all. September is historically the worst month of the year for stocks. We, included today, the dow is up 11 of the past trading days so that is actually a good deal. Ping identity, its an i. T. Security company and the ceo is going to be with us momentarily. Look at how its trading now. Its up 21 . They just issued their ipo this morning. Thats why the man who is going to be with us, was ringing the bell on the board. Ashley the ipo price was 15 bucks. As you say, nice opening for this company. Well see. David a 22 gain for ping, i think they will take that. I want to talk about the fed. President trump was not satisfied with the quarter point rate cut. Roll tape. Well, i think we should do more because other countries have done more. If you look at germany, if you look at japan, if you look at so many others, theyre cutting much more. In fact, theyre borrowing money and getting paid to borrow money and were paying interest and we are the most prime in the world. We have this great economy, were doing better than we have ever done, our employment numbers are the best they have ever been and unemployment numbers also. We are doing great. But we should be cutting. Theres no inflation. David come in, charles payne, host of making money on this network. What do you think about this . I thought it was okay. I understand where President Trump is coming from, too. I think you can argue a couple things in the sense that you know, theres this thinking you only cut rates when the economys in trouble. So the idea that President Trump and others in his administration, by the way, other thinkers outside are saying that doesnt have to be the rule, why not give a good economy a boost to make it a great economy, particularly when theres no risk right now of inflation. By their own admission, the inability to get Inflation Higher is one of the big things that worries the fed. They have talked about it. Mario draghi really talked about the idea that deflation which we know is much more insidious than inflation, that the idea of trying to stop deflation once you go into deflationary death spiral, its impossible to stop it. David the fed cant ignore whats happening overseas as they continue to cut rates into negative territory. They alluded to the global economies that have one of the reasons theyre doing that is the weakness of the global economy. Without necessarily saying global Interest Rates, the fed talks a lot about the global economy, but you got to understand theres a correlation between those rates, trying to prop those economies and the relationship between the dollar and corporate profits and everything else. David in the meantime, our economy is still doing great. I mean, the point is you have business you have these Big Industrial lobbying firms, i call them that, in washington, Business Roundtable, chamber of commerce, talking down the economy. What do you think of that . You know, its just, its unfortunate. It really is. With the Business Roundtable, when they came out with their new mission staying it was all about stake holders, not shareholders, my challenge to them is prove it. If its not about the bottom line, then you should be less resistant to this trade war because you are talking about doing business with a country that has a Million People in reeducation camps, a country thats stolen a lot of things from us, you know, so the idea of this is the new Business Roundtable and by the way, they will have a new person in charge of it, the ceo of walmart is taking over from jamie dimon, if this is the new Business Roundtable, show us. Dont talk down an economy. By the way, this morning i dont think it was the china trade talks that got us moving higher. It was the economy. The philly fed manufacturing number was phenomenal. Inside that number, employees surged, work weeks surged, manufacturing is one of the weaker parts for our economy. But its not as weak again as they have been telling us. David they are saying its in recessionary territory. We also got good numbers on housing, existing home this week has been mindboggling for existing new home sales, Housing Starts, mortgage applications. I mean, if we turn this around, forget about it. We really could be that could be the beginning of the next leg higher. David on the other hand, charles, stay with us, we are looking at u. S. Steel right now, way down. Whats going on with that . Ashley expecting a first predicted loss of 35, 36 cents this quarter. Expectation was for sixcent loss. They had to battle weakening steel prices, restructuring costs and also, they say you know, look, this was the third Steel Company in the last three days who have said look, their outlook has gone down and down. The tariffs that were put in place last year, in 2018, have not helped this sector at all because Global Demand david they did in the beginning. Ashley initially. Not now. David thats the point, whether or not initially obviously the tariffs were meant to help u. S. Steel and it did help u. S. Steel, but then the trade concerns, tariffs, growing number of tariffs, brought down world trade and thats why people arent buying enough steel. I think world trade was going down before the tariff war. Chinas economy was growing at 12 and going to the trade war david the tariffs havent helped. But isnt it ironic, we were warned tariffs would make prices go up. We were warned steel prices were going to go through the roof and President Trump was picking winners and losers. Same with lumber. We had tariffs on canadian lumber for two years. Lumber prices have gone into a death spiral. Thats what i mean by deflationary death spirals. These are the things people said dont do these tariffs because steel prices will go through the roof. They went the exact opposite. There are other factors that determine pricing, you know. Its unfortunate but it started happening very shortly afterwards and now it is into the throes of this death spiral. David the Holiday Shopping season around the corner. Deloitte has a big number for it. Lauren lets bring it home to the u. S. Very positive, what recession, what slowdown, what trade war, because between november and january, they are predicting retail sales to rise between 4. 5 and 5 . Thats more than 1 trillion in holiday sales. It was about 1. 1 trillion last year, expected to be higher this year. So again, the consumer right now is not a pocket of weakness in the economy. David you have been talking about retail for years, literally. Theres been a real breakthrough in terms of the Retail Market here despite again, all the gloom and doom you hear about brick and mortars, retail is still doing great. Brick and mortar is suffering but the transition, you look at this retail sales report out most recently, and 64 billion online, 61 billion in general merchandise, obviously Department Stores have gone down, but just yesterday, kohls announcing 90,000 seasonal workers. 90,000. Kohls is one of the theyre in trouble and they announced this. So it really, its a transition. What i like, even though we are losing retail jobs, those are the Second Lowest paying job categories so if they are transitioning to warehouse jobs and those things that actually pay more, im okay with that. David talk about fed ex. Not much of a bounceback after the big drop. Is this more of a fed ex story than it is a story about whats happening i love fred smith. I love the idea in college that he writes his dissertation and the professor gives him a gentlemans c because it could never work out. Turns out to be the blueprint for fed ex. Good news, he gave the professor a job later on. I do believe that this is a fed ex story. I went and looked at the last nine years. Their operating margins peaked in 2016. Their rate of growth peaked in 2016. They made an acquisition in a european rival that will not pay off until 2021. They thought it was going to be a lot sooner than that. I think they have been flatfooted. When you dont have a relationship with amazon, when you dont have a relationship with amazon, it is tough. Reminds me of having a relationship with the u. S. Postal service. These Companies Take massive hits. Maybe it pays off as the rest of the world gets better and demand picks up from these alternatives but without a relationship with amazon ashley that decision cost 900 million a year. They are aligning themselves with walmart and target. Sure. Sure. David the stock is down to 150. Think its a buy . I wouldnt buy it yet. I dont like the trends i have seen over the last three or four years. If this was just a flash in the pan, i would say it looks intriguing. I got a lot of calls on it yesterday. Im like no, look at roku. Lauren is it good for ups, what fed ex is saying . Conversely, an opportunity for ups . Amazon has given them both headaches. They are making these massive investments. Moments ago they announced a 10,000 electric vehicles they will be buying. Its not from tesla. David charles, you always end with a bang. Lot of winners and losers when it comes to amazon. David catch charles on making money that airs on this network at 2 00 p. M. Eastern. Never miss a single show. You will make money. Facebook chief Mark Zuckerberg on the hill today. Coming up, we talk to south dakota senator john thune. I want to know what he wants to hear from the facebook chief today. And meanwhile, President Trump trying to appeal to blue state voters with trips to places like new mexico, california. Is it all just a waste of time, though, when you think about california . We will be asking trump 2020 Campaign Press secretary Kayleigh Mcenany. The third hour of Varney Company starting right now. During the fall, everyone who has medicare may be eligible to choose a new Medicare Health plan. But you may be able to choose a new plan right now. 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Just to coincide with the release of the new iphone 11 release. This store has been closed, iconic store on fifth across from the plaza there, has been closed for almost three years. If you have ever been in david been an eyesore. Ashley certainly has. You go downstairs to get into it. It was underground. They removed a lot of what was there, expanded, rebuilt that space, more natural light. It has been operating in a little store behind where the cube used to be. All that changes tomorrow. As you say, tim cook himself may be there to greet people as they come in. David we should invite him here. Yesterday on the program, we had indiana senator mike braun on the show, talking about the importance of passing usmca for his states farmers. So when are we actually going to see some progress on this . Lets ask senator john thune, republican from south dakota. Senator, great to see you. There are a lot of soybean farmers in your state. They have been really hurt by the chinese tariffs. Im wondering if they are hoping that the usmca will help them out in what they have lost with china. Thats the whole for sure. I think most of our farmers believe that any of these trade deals that are pending, the more that we can get those done and open up more markets to american agricultural products, the more demand there will be and obviously, that will change the price situation that were currently looking at which has been very detrimental for farmers and ranchers. We have seen depressed prices for a long time. Youve got these trade uncertainties coupled with now bad weather has made it very difficult to plant in states like mine, south dakota. Its been really complicating for the ag economy but i think usmca could at least, its teed up and ready to go, we just need House Democrats to act on it. Its been 290 days since the president signed it and they have yet to take it up. If we can get that one done, canada and mexico, two of the biggest markets for american agriculture, then get a deal with japan, i think it will isolate china. I think we can david by the way, your number one crop is corn. Soybean is a close second. Corn is number one. Of course, a lot of people in mexico and canada eat south dakota corn. Thats important, too. I just want to ask when, because we had somebody from the chamber of commerce on earlier who suggested we could get a usmca deal passed by both sides, by both the house and the senate before the thanksgiving vacation. You think thats possible . That would be ideal. Frankly f it doesnt get done by then, i worry it doesnt get done at all. Once it bleeds in a president ial election year, the politics just become almost in a way overwhelming. So to me, this has to get done in that time frame. I hope that the speaker of the house can wind up the negotiations that she has going on but this is a deal that just has to get done for the good of the country, not just agriculture, but our entire, all sectors of the economy which benefit from it. David let me move dramatically to another industry which is very different. The high tech industry. Mark zuckerberg is in washington, hes been there for more than 24 hours, i think, and its kind of looked unseemly, whats been going on, because he has been wining and dining and getting wined and dined by a lot of politicians inside the beltway, even though there is legislation pending, i guess its going to be introduced in the next few days, about social media. You think thats proper . Doesnt look right from the outside. I think what hes trying to do is he has maintained and has written opeds to this effect, there need to be more federal regulation of the Tech Companies and i think hes probably trying to shape that to some degree. David of course he is, yeah. Frankly, i think what we need more than anything else with Companies Like facebook is transparency. They use algorithms, artificial intelligence, to customize and tailor everything we see based on specific user data that they collect, and a lot of times American People have no idea how its being collected, whats being collected or how its being used. So we urge them to be more transparent. I hope that he will, his company will lead the way on that. I think hes meeting with a lot of people today on capitol hill, members of the Judiciary Committee because hes concerned about antitrust. David he has reneged on his promises before about he has. Thats right. David you cant rely on what he says. No, thats why i think we need to take steps. We need a privacy law which you have consumers have the right, they have, you know, they have to consent to how their information is being collected and used. We need to move forward with that, irrespective of what facebook does. David great to see you. Thank you for being here. Now this. Facebook is doubling down on video chatting with an allnew portal device. Tell us about the details. Lauren speaking of privacy, would you allow facebook into your living room . With this new device, its the second iteration of their portal. Its about 150 bucks and enables video chat so you can speak with friends and family, and also streaming can happen on this device. This is a battle for your living room. Facebook pushing into hardware but are they tonedeaf about all the privacy concerns . They say now we have this little knob on the device and if you just shut it off, the cameras off, we wont see what youre doing, you can also turn the microphone off. I just think with everything going on, all of these hearings and grillings on capitol hill, are consumers going to say here, mom, here, dad, here, husband, here, wife, heres a device in your living room. David weve got to say the stock has been doing spectacularly well despite all of these controversies over the years. You never count them out. Now this. Fans of the tv series Downton Abbey this is for you. The iconic home will be listed on airbnb. Can you imagine . We will tell you how much it will cost you. What a time to be alive. The world is customized to you. Built for you. So why isnt it all about you, when it comes to your money . So. Whats on your mind . We are edward jones, a 97yearold firm built for right now. With one Financial Advisor per office, were all about knowing whats important to you the one who matters. Edward jones. Its time for investing to feel individual. Like very high triglycerides, can be tough. You diet. Exercise. But if youre also taking fish oil supplements, you should know, they are not fdaapproved, they may have saturated fat and may even raise bad cholesterol. To treat very high triglycerides, discover the science of prescription vascepa. Proven in multiple clinical trials, vascepa, along with diet, is the only prescription epa treatment, approved by the fda to lower very high triglycerides by 33 , without raising bad cholesterol. Look. Its clear. Theres only one prescription epa vascepa. Vascepa is not right for everyone. Do not take vascepa if you are allergic to icosapent ethyl or any inactive ingredient in vascepa. Tell your doctor if you are allergic to fish or shellfish, have liver problems or other medical conditions and about any medications you take, especially those that may affect blood clotting. 2. 3 of patients reported joint pain. Ask your doctor about vascepa. Prescription power. Proven to work. Every curve, every innovation, every feeling. A product of mastery. Lease the 2019 es 350 for 379 a month for 36 months. Experience amazing at your lexus dealer. David the new Downton Abbey movie hits theaters tomorrow and the owners of the iconic english castle are listing it on airbnb. How much per night . Lauren 187. On november 26, you get to stay at the castle but you have to write an essay of why you are passionate about the show, about the castle, then perhaps you can win. What a nice stay that would be. David 187. Lauren the service you would get . Its going to be competitive. David yeah. Speaking of airbnb, they have Just Announced a 2020 ipo but years of compounding regulation in new york city in particular scaring off some investors. Ashley the fight between airbnb and new york city has been at a standstill for years. Essentially new york city has very strict rules and essentially shortterm rentals of most of the apartments are illegal in this city. The city is now trying to subpoena, get this, from airbnb for the addresses of more than 17,000 hosts in new york city because they are trying to find them because what they are doing is illegal. David unbelievable. Ashley they also added 8 million to the yearly budget to find these people who are listing their properties. David its that kind of antibusiness attitude that is killing new york city. Ashley absolutely. David that is antibusiness. Just that simple. Speaking of ipos, Ping Identity up bigtime. They are a Security Company that serves Companies Like netflix. They just opened for trading at the top of the hour but look at this. Its already up 27 . My question is, are they prepared for a hack of some kind . We will be asking the c. O. O. Coming next. Listen to this. You will soon be able to make Campaign Contributions through your alexa devices. Is that a good deal . What could possibly go wrong . Of course we will tell you about it in a moment. President trump meanwhile trying to appeal to blue state voters with trips to places like new mexico and california. Is he really going to flip california in 2020 . We will ask trump Campaign Press secretary Kayleigh Mcenany, next. At fidelity, we believe your money should always be working harder. Thats why your cash automatically goes into a Money Market Fund when you open a new account. Just another reminder of the value youll find at fidelity. Open an account today. Oiits not acceptablend or nothing. And its definitely not close enough or nothing. Mercedesbenz suvs were engineered with only one mission in mind. To be the best. In the category, in the industry. In the world. Lease the gla 250 suv for just 329 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. David the big boards doing quite nicely, as you can see. A lot more green on the screen than red. Its up about 92 points right now. Lets look at the s p and the other indices which are doing well also. Maybe we cant get them up on the board. Trust me, the other indices are doing just as well. Ashley i trust you. David lets stay on your money. Identity Security Company Ping Identity went public just a little while ago and the stock is now soaring. Its up almost 30 right now. We have the ceo with us, andre durand at the new york stock exchange. Congratulations. Why you going public . Thank you so much. You know, this is such an exciting day for us. We have been serving the Largest Enterprises around the globe, helping them, you know, secure themselves and secure identities and this market is just exploding. Security is changing for Large Enterprises, identity is now at the heart of cybersecurity, and so we are going public because we have Big Aspirations and a lot of companies to help. David im just curious about timing, because there have been some tech ipos of late that havent done so well. You think you did it at the right time . You know, look, were excited to be out, were excited about the way that it opened. We have been around for some time, helping these very Large Enterprises enable identity security, keep their workers, their customers, their partners secure, and look, were built to last. Were a recurring revenue business. We are Mission Critical to these Large Enterprises. I personally have lived through a couple of downturns, i know what it feels like. I think were in a space that is going to be very durable. David are you going to use some of that capital to expand to individuals, because you mentioned you focus on the big businesses. Yeah, theres no plans for that right now. We actually help enterprises secure their customers. So indirectly, we are helping individuals be secure. David all right. I have to ask you first of all, have you ever, has your company ever been hacked . It has not, thank goodness. David and how there have been other Financial Companies of course that have gone through that problem with data breaches and so forth. How are you securing against it . Well, look, we have as a Security Company, we have a very mature and robust internal security program. We implement our own technology in many places and look, we take the stewardship of keeping the Largest Global enterprises secure. We know that thats a big responsibility so internally we take security very seriously. David well, we wish you the very best. Its always fun to see an ipo, particularly one that starts the day up 25 as yours has right now. Andre durand, best of luck, my friend. Thank you for being here. Appreciate it. Check microsoft, everybody. Good news for all you stuart varneys in the audience. They not only hit an alltime high but are increasing their dividend bigtime. They have come back off of their high, right . Ashley yeah, they have. I can hear stuart somewhere giggling. David i can hear it. Ashley they authorized another 40 billion worth of buybacks. They raised their Quarterly Dividend another five cents to 51 cents a share. We are just noticing, since satiela took over, the stock has quadrupled and dont forget, has eclipsed at times the trillion dollar market cap. If youve got this stock back in the day, we were talking about this earlier, you are smiling today. David absolutely. I would love to know how much it was when stuart bought it. Love to know. I bet it was a lot less than it is today. Coming up next, we are seeing a push inside the Trump Campaign to appeal to voters in traditionally blue states like new mexico, New Hampshire. Those are two states where he has held rallies recently. Come in, Kayleigh Mcenany, trump 2020 National Press secretary. I remember when New Hampshire was a solidly republican state. That changed about 15, 20 years ago. Its become more and more blue. You think you can turn it around and what about a state like california . You dont really think you will turn california around, do you . Well, look, california, thats high hopes. You never know but nevertheless, i would say were looking more at places like New Hampshire. Thats a place where President Trump lost by just 2700 votes. We are looking at a place like minnesota. They have two urban centers in minnesota and outside of those urban centers and those counties, romney won those counties by just 65,000 votes. President trump won them by nearly 300,000. So hes really a candidate that can drive up turnout in places in the mold of pennsylvania, wisconsin, michigan, so he makes these blue states winnable. We see it in our rally data as well. David i dont have to tell you, the democrat candidates have gone further and further to the left. Not only with socialist economic policies, even joe biden now says he will eliminate fossil fuels in his administration. Just imagine how this iranian problem would hurt us if in fact we didnt have any fuel production in this country. But how are they going to turn to the moderate side after the convention, after having made all these left wing promises . Oh, they will try, especially joe biden. You know, hes trying to preserve this centrist lane but we wont let him do that. We will remind voters as you correctly noted, he wants to eliminate fossil fuels. He wants to provide Taxpayer Funded Health Care for illegal immigrants. He wants a public option that would have the end result of crowding out private insurance. What does that do in a state like nevada where they have a large Culinary Union and people are very happy with their employer provided insurance, or a state like minnesota or wisconsin, where the Union Workers love their employer provided insurance . That will be one of the biggest issues in the election and one we believe will help us maintain that 2016 map. David a lot of people who dont necessarily like donald trump say theres no alternative. We actually had one of those people on, actually he does like donald trump, but he spoke to this point, our friend dennis rodman, the former great nba basketball player, was on yesterday. Let me just play a bit of the tape from that and get your reaction. What do you think about donald trump being reelected . Do you think he should be . Do we have a choice . Do we have a choice . I know some other candidates thats out there right now, i just think people are looking at the business, the money factor, the way hes changed it 180 degree and i like donald as a friend. David he likes donald but i think a lot of people would vote for him in 2020 dont necessarily like him but think theres no alternative. Well, they see the economy. I think thats exactly what dennis was pointing out right there. When you look at the money coming into your pockets, there is no alternative. Thats why we think in the Hispanic Community in particular, there have been at least five public polls that show the president s support climbing from that 29 he got in 16 to the upwards of 40 , sometimes 50 because the Hispanic Community sees the economy working for them. I think the black community as well will see an uptick in that support because its finally working for these groups. David going to be fascinating election. Thank you very much for being here. Appreciate it. Thank you, david. David coming up, amazon, soon you will be able to make donations to your favorite politician through the amazon alexa. I dont think its a great idea. How does it work . Lauren alexa, make a donation to mayor pete buttigieg. What if you say his name wrong . Will alexa still be able to make the donation . Ashley you just made a donation. Lauren so this is what amazon is doing. You know, its innovative and thats the problem. Can the fec regulators keep up with this. They will allow you starting next month to make a donation between 5 and 200 to a candidate in 2020 that amazon determines as being eligible, not sure what those requirements are just yet, but heres another issue. A lot of theres concerns about, you know, alexa spying on you and eavesdropping on your conversations and storing that data. While amazon says you can disable this, some people might not want others to know who they are donating to politically. David i had an alexa once wake me up. I might have said something in my sleep and it set it off. Unplug that thing. Ashley, walmart is trying to compete with amazon with its new credit card. Ashley yes. Its the capital one walmart rewards mastercard. It comes out next tuesday. Its kind of an upgrade to their current credit card, especially when it comes to rewards. It offers the introduction offer of 5 back on purchases if you use the Walmart Mobile pay app. They will do that for 12 months. Also, 5 back on walmart. Com including the Grocery Pickup Service and delivery service. Bottom line, this is to compete with the apple and Goldman Sachs card that was unveiled this year. David we have breaking news on fed ex and its not good news. One of their commercial pilots has been arrested in southern china. What are the details there . Lauren this pilot, by the way, a former u. S. Air force pilot, was detained in southern china, headed to his home in hong kong amid the violence there. But in his carryon bag, he had air gun pellets and chinese authorities have said that is an illegal transportation of ammunition. They have detained him. David thats the accusation, by the way. We dont know whether its real or not. All right. If you are not looking to buy a mercedes, the company is now rolling out an electric scooter. Imagine mercedes with electric scooter. We will tell you what it will cost you in just a moment. For the first time in teslas history, they won the highest safety honor on the model 3, earning the 2019 top safety pick award. We will tell you what tests it had to take on to win that award. Plus, every time you fill up your car with gas, part of the tax you pay goes to Highway Maintenance. But as of now, electric cars get a free ride and anyone who buys one gets a hefty subsidy from the government. Senator John Barrasso says theres something wrong with that. He wants to change it. He will tell us how, next. And we are at session highs right now. That is great news. Well be right back. And let me tell you something, rodeo. I wouldnt be here if i thought reverse mortgages took advantage of any american senior, or worse, that it was some way to take your home. Its just a loan designed for older homeowners, and, its helped over a million americans. A reverse Mortgage Loan isnt some kind of trick to take your home. Its a loan, like any other. Big difference is how you pay it back. Find out how reverse mortgages really work with aags free, noobligation reverse mortgage guide. Eliminate monthly mortgage payments, pay bills, medical costs, and more. Call now and get your free info kit. 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Im off to college. Im worried about my parents retirement. Dont worry. Voya helps them to and through retirement. Dealing with todays expenses. While helping plan, invest and protect for the future. So theyll be okay . I think theyll be fine. Voya. Helping you to and through retirement. Ever since you brought me home, that day. Ive been plotting to destroy you. Sizing you up. Calculating your every move. You think this is love . This is a billion years of tiger dna just ready to pounce. And if you have the wrong Home Insurance coverage, you could be coughing up the cash for this. So get allstate and be better protected from mayhem, like meow. David some Big Companies are sinking big bucks into the scooter market. Lyft, uber, Harley Davidson and guess what, mercedesbenz is actually coming out with a scooter. Their own escooter. Its on your screen now. No word on a name, range or top speed or how much its going to cost. Only that they partnered up with swiss scooter maker micro. Should be on the roads early next year. I know ashley wants one. Ashley im in. David and some good news on tesla for once. Their model 3 just receiving the highest safety award possible. Lauren . Lauren bam. Okay. This is finally some good news for tesla. Will it silence the critics . The Insurance Institute for Highway Safety has ranked the model 3 with their highest safety rating. Technology perhaps paying off in these vehicles but specifically, the aluminum and steel cabins are very strong. The car has a low center of gravity, reduced rollover risk. Its getting this nice rating, the overall market is up but so is tesla today. David our next guest has a new oped out all about how electric car drivers arent helping Highway Maintenance because they arent paying a gas tax. Come in, senator John Barrasso, republican from wyoming. Senator, you dont want to add taxes to electric cars, you just dont want to give them the tax rebate, the owners a tax rebate they get when they buy one, right . Thats right. Thanks for having me. You know, whats happening now is our bridges, our highways are in disrepair. We just passed out of the committee i chair in the senate the largest bridge Highway Infrastructure bill we ever had in this country because the work needs to be done and theres an agreement that it has to be paid for. Well, right now, those sorts of constructions are done through the highway trust fund. Its paid for through gasoline taxes. Electric vehicles dont pay anything into that trust fund because they dont use any gasoline, but they ought to be basically pulling their own weight when it comes to the fact that repairs need to be done and those that use the roads ought to be paying for it. David and again, only 2 of the vehicles on the road are electric. If we were to charge them as some people, not you, but some politicians say we should actually charge them for the money theyre not paying in the gas tax, it wouldnt add that much to our revenues, would it . Well, theres actually significant amounts of revenue that can be raised. You need to do two different things. One is not provide subsidies for these very expensive luxury vehicles, whether its maserati david its for the rich. It is. 7500 per car. Also, i believe those who are using the roads ought to be paying. Electric vehicles ought to be contributing because they do contribute to the wear and tear. David how . How should they be contributing . Im recommending that they be charged a users fee comparable to what people who use gasoline in their vehicles pay on average. There are ways to do it. Thats what one of my pieces of legislation, its the fairness for every driver act. Thats what we are proposing, that drivers of electric vehicles dont need the subsidy because its now an established market. David im with you on the subsidy thing but a user fee is just another name for a tax, isnt it . Otherwise, they are doing damage and have a free ride, asking those people in gaspowered vehicles to pay more and more and more. David i never met a tax that i liked, senator. I got to tell you. Im against all new taxes. I think we have more than enough right now. But im with you on the tax rebates. I think thats a great idea, getting rid of that. Its beyond time for that. Senator, thank you very much for being here. I appreciate it. Amazons jeff bezos saying the company has placed an order to buy electrical vehicles. Ashley an electric vehicle startup, this is all part of a climate pledge, they will be net zero carbon by 2040, 100 Renewable Energy by 2030. They ordered 100,000 electric vans and mr. Bezos david 100,000 . Ashley 100,000 electric vans. They are all going to be on the road by 2030. This is all part, he says they will fulfill the goals of the Paris Climate Accord ten years early and hes imploring other ceos to join him on this climate pledge. David well, if senator barrasso gets his way they may have to pay a tax for that. Ashley thats true. David quick check on roku. Its been taking quite a hit lately on all the streaming news. But they are up today and thats all thanks to their new product line, unveiling a smaller, cheaper express streaming device. And a faster soupedup ultra device as well. Check streaming names in general, if we can put them up on the screen. Its kind of a mixed picture there. Now to california. President trumps epa just putting San Francisco on notice saying their homelessness problem is damaging the environment of the bay area. Coming up, we will be talking to a former epa official. Is this a problem the administration can fix . Well see. Liberty mutual customizes your car insurance, so you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. 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. David on to the homelessness crisis plaguing california and a lot of states in the country. The epa just put San Francisco on notice, claiming the homelessness problem is damaging the bay area environmentally. Come in, mandy gunasekara. Exactly how are the homeless affecting San Franciscos environment . The homeless situation in california is getting out of control and a lot of its driven by their extreme democrat leadership trying to impose expensive policies that just make life much more complicated and much more expensive. And what you have is a growing homeless area that causes all sorts of environmental degradation to the water system, to the air system and you are on the cusp of a budding Public Health crisis as you have seen a resurgence of once eradicated diseases such as leprosy coming back. David a whole bunch, cholera. That was a 19th century disease. We wiped it out in the 20th century. Its back after 100 some years. But again, epa was meant to protect Public Health, and Public Health is being endangered by the homelessness crisis. So it does fit into the purview of the epa, does it not . It certainly does. Theres a longstanding relationship thats been defined by congress that the federal Government Works with state and local officials to deal with issues, whether its dealing with a Public Health crisis or environmental issues. Thats exactly what the president said the other night. He put the state on notice if you dont clean this up, protect your people and the surrounding environment, i will. David mandy, another thing the president is announcing is rollback on emissions standards in california. He doesnt want them to set their own rules apart from the rest of the country. He just wants one National Standard for everybody. You think this is a good play . Its a great play, and its what the law requires, which is what President Trump is advocating for here. He made very clear there will be one National Standard and establishing a one National Standard to make cars cleaner, cheaper and more accessible to all americans is in the purview of the federal government. A state like california doesnt have the authority to dictate to the rest of the country what type of cars we all should be driving. David both of these issues, you know theres going to be pushback from the local government, certainly San Francisco will push back, but california as a whole might push back on the emissions standards. Can the epa initiate procedures, initiate these new standards and the epa ruling on homelessness, and before the court makes a final decision . Well, it depends. In some instances, when the courts get involved, they put something called a stay on the effectiveness and enforcement of an action. I dont necessarily see that in this instance, especially with the revocation of the california waiver, because its something that never should have been granted to begin with. And the law is very express and clear in this area. So the federal government is sitting in a very strong position with regard to revoking californias waiver and implementing a one National Standard. David mandy, great to talk to you. Thank you for being here. More varney right after this. At fidelity, we believe your money should always be working harder. Thats why your cash automatically goes into a Money Market Fund when you open a new account. Just another reminder of the value youll find at fidelity. Open an account today. Of the value youll find at fidelity. [upbeat action music]. pilot were going to be on the tarmac for another 45 minutes or so. David take a look at uber right now. It is up about a percentage point. It has a new gee whiz safety feature on a it. Tell us about it, lauren. They have been experimenting with in a Pilot Program for a year now. It is called ride check. If there is a long wait or crash, they ping you, they respond, get you your help. Not sure how this would help in instance of sexual harrassment which has been a big problem for uber as well as lyft. David good point. Fox businesss Charlie Gasparino is reporting that at t may part with directv with the rise of streaming. Who gets satellite tv. They could spin it off. Other possibilities as charlie has talked about maybe a merger of some sort, wrapping it in with dish, the two rivals to make it one entity. Certainly the satellite tv business is shedding subscribers. A few more just dropped. David talk about movement, we have movement in the market. It is going in the right direction. Take a look at the big board. It is up 93 points. Despite the fact that the market was down in premarket activity. Very good manufacturing numbers came out. Better talk about china trade despite u. S. Steel down, double digits down, as the economy. Very good economic indicators. Remember all the talk, ash, how we were going into recession. Ashley gloom and doom. Inverted yield curve. David thank you very much for watching. I will see you here tomorrow. Mean while neil cavuto is standing by to take it way for the next hour. Neil not standing but sitting watching you guys. Thank you very much, my friend. So far no problem for the Federal Reserve as markets brush off the latest move. Why is the president fuming . Man, oh, man he is fuming. Mark zuckerberg is on capitol hill meeting with senator mark warner. He is here to talk about washingtons next steps with facebook, they are coming. Huawei took a big shot at apple. Were all over it. First recession and no more cuts. Despite cutting rates the president is not happy with Jerome Powell at all. In case you have any doubt, listen. I dont