Transcripts For FBC Varney Company 20140820

The unemployed. Two months to the elections economy is coming back into focus. Not good news for the president. Varney and company is about to begin. Stuart lets begin with an eye opening look at the obama economy. More numbers, this is a reuters survey. 34 of Unemployed People have stopped looking for work because the job market was so bad. 40 were no more optimistic about their job search today than when they initially stopped working. This is middle america. It is losing ground. Middle america getting shrink. Charles people who were pretty good contributors to the overall economy. The 20 plus week unemployment number will look at, that number has been over 3,000,004 longtime. These are people who had jobs, worked in at factory, an assembly line, huge money, huge income, they will eventually get back to the job market and work at a job where they make significantly less like most of these people, and i throw my hands out so what does this mean . Stuart does the economy come back into focus . Charles there is no way anything could be income inequality, higher minimum wage, Michael Brown thing, ferguson might be. Every couple weeks we see something, it is about the pocketbook and the fact that people are making less money, 11 Million People dropped out of the job market. Theres a 20 decline in the average wage from the 8. 1 million jobs lost in the. 1 million jobs we recovered from the Great Recession. 23 less. Stuart this is president obama. He thinks everything is okay. Watch this. I remind folks that in my first term if i had a press conference like this, everybody would want to ask about the economy and how come jobs werent being created and how come the Housing Market is still bad, why isnt it working, but you know what . What we did work and the economy is better. Stuart the president wanted more questions about the economy. That was a different topic that particular day. Jobs that were lost in the Great Recession come back, 20 less than they did before. This year in 2014 the job creations have been met parttime jobs, negative, so we have dynamics and composition of the jobs recovery is pretty bad and people know it. You can talk your way around it. Stuart i have news on president obamas last opponent, mitt romney sounding like he is on the campaign trail. He was the Republican Party event and sharply criticized the president. I will tell you what he said. The results of his mistakes and errors in my opinion have been more severe than even i would have predicted. Mitt romney has denied he has any plans to make another run at the white house but Charlie Gasparino has some information that might suggest otherwise. I talked to people on wall street who are major bunglers for mitt romney. To the man, particularly lately, as they think he is seriously considering a run, they think he is leaning toward a run. When i talked him a major romney been diluted gets a lot of cash, talks to the man himself. This one gentleman told me has the backing of his wife, he is not 100 committed but is moving in that direction. Personally i will believe it when i see it. Richard nixon did it, and third time was the charm. This one is tougher for mitt romney but clearly this is what is bouncing around Republican Party circles at a high levels that he is really considering it. I know what he is saying publicly. Stuart these guys raise the money. They got their feelers out. Paul ryan and the Republican Party apparatus and talk about the economy, what gives mitt romney thinking he might be able to win this, the economy may be improving slightly better economic cycles run in seven years. Hillary clinton could be running in the middle of a recession. It is very well a possibility. Chinos it, she knows the obama economy is the toughest thing for her to get by because economic cycles run 7 years and 7 years i believe is 2016. Stuart i am trying to say mitt romney was primarily an economic candidate. That was his main point. A lot of people are annoyed he did well in the first debate but if you think of the republican field, no offense, jeb bush, rand paul, is he ready, mitt romney is definitely ready. Stuart put odds on it. That he runs. I owe neil cavuto a dinner if he does run. Full disclosure. Maybe ben stein as well. These are top guys. I think it is 5050. I dont believe this massive stuff. I understand she is behind him. Stuart thanks very much. Good stuff. Check the big board. We are not that short of 17,000, 52 points and change. Within one good rally of 17 k. The s p 500 is also on the upside, not by much, you got a point and half. That is all it is. Lets talk individual stocks, lowes reduce its Sales Forecast for the year. Not good news but not taking a huge hit. It is down 0. 20 on a 51 stock. Home depot, same line of business, hit a new high of 90 earlier today. It is again from Investment Companies said this thing is going higher, higher price target. Home depot on a real tears this week, 90 bucks almost now. Another winner american eagle, 18 retail, higher profits for future sales. Look at that. 8. 5 up 15 retailer. Target is in the news, it opened lower today but now it is higher. What happened . Positive comments from somebody . Nicole the chief Financial Officer speaking positively about the return of trust and confidence. Your metadata breech and so many customers have their credit cards and personal information act and the terrible news for time and they have been trying to bounce back and the stock is up 1. 1 . Not only is it the return of trust and confidence but u. S. Traffic in stores also improving and the last thing i will point out is promotional items. They had to continue to do promotional reach to get the inventory at the door a little more than they hoped but it was improvement quarter over quarter. It is about the margins and making the money and if youre cutting prices on your items ultimately, they could do little less in the latest quarter and that is good news. Stuart if it is getting past the data breach that is the good in the equations. I want the latest from ferguson, missouri. Protestors and Police Clashed again last night. They were less violent clashes than previously. No teargas use. Attorney general eric holder will arrive shortly. We have on our news line now sunny diane on the phone, the owner of the store at the heart of a riot. The story is called st. Louis cordless communication and that store was looted. Welcome to the program. I want you to take us through it if you would. When did you find out you were hacked attacked . Thanks for having me. The first time i noticed was Early Saturday Morning when i got a call from my company. We had looters inside the stores just hanging in there all little too long than normal and a lot of people i went down to see what happened. The police wouldnt do anything because the ride was in progress and they wanted to get into the neighborhood and ask the situation so they let people with and decided to act when the damages are greater. Stuart how much of the loss . They looted your store. What was taken . Everything was taken. I put most of my stuff in a safe and all that but the damage to merchandize was dramatic, in the thousands but the greater damage is to the structure. The greater damage was to the showcases and the equipment i am using inside and all of that. Those of of things that are hard to replace and table longer. In that sense the damage is even greater ben the loss of merchandize. Stuart when can you go back into business . As soon as possible. Were operating on a skeleton situation, to do some of our business because some people in the neighborhood depend on us for their business, depend on us to pay their bills or investigate their stock and take care of it, no other place in the neighborhood to do that. We have been around for 18 years so we have to be there. We have to survive for ourselves and to be part of the community to show us we are not going to give up. We are not going to close and go after 18 years. Stuart we want to get the feeling what was like on the ground when you had been attacked. Thank you very much. The financial question about ferguson, who pays for the damage, who pays to rebuild. Joining us now is the former mayor of los angeles, author of the coming but the mayor. Richard breeden. You were the mayor of los angeles after the rodney king riots. Who paid for the rebuilding . Who paid for the damage . Essentials ease the city paid to with the help of wealthy white people land the people in the areas that was rioting, it was really interesting because they immediately started shopping in the white areas. They were not shopping in the black areas so it took a long long while to turn around, to get people to make investments in south l. A. But it worked. Stuart where did the dollars come from . If the city paid part of it, that is taxpayers money. Did the feds coming with taxpayer money at the federal level . Yes. The fed helped us quite a bit. We also had restore l a. I put 3,000 of my own money into thats, like an outside marketing that people could make and the problem is they didnt come to that market, they went to a supermarket in a wide area. Stuart why did you put money in . If you burn down work. Your own neighborhood why would you come in with your money to pay for it . Why would you do that . Because i care about everybody. I am of wealthy white guy but i care about the poor black, but for everybody, and right now i figured what i could do would help the black Community Rise up. It took longer than i thought but it worked. Stuart i have got to ask this question. Who is going to pay in ferguson . It has got to be the state. If they are going to get involved, they have to come in and help the monetarily but basically the whites and ferguson and the blacks have to get together and come up with plans on how to improve ferguson. It is not going to be magic. Working is not going to magically do it, nor is the state of missouri going to magically do it. Stuart thanks for joining us. Sorry our time was so short but we appreciate your presence on the show. And now this. And american journalists has been murdered, be headed by islamic terrorists. They turned to kill another hostage unless we end airstrikes in iraq. Two months ago the Obama Administration negotiated the release of Army Sgt Bowe Bergdahl by handing over five high level taliban leaders. Did we negotiate with terrorists then and will we now . K. T. Mcfarland is next. [ dog barks ] [ male announcer ] imagine the cars we drive. Being able to see so clearly. To respond so intelligently and so quickly, they can help protect us from a world of unseen danger. Its the stuff of science fiction. Minus the fiction. And it is mercedesbenz. Today. See your authorized dealer for exceptional offers through mercedesbenz financial services. Stuart look at the nasdaq, close to a 14 year high at 4,526. Now look at apple, that is a new intraday high. 100. 77 per share. It is split 7 for 1. What we are looking at is a 700 stock. Time is money. Three other headlines. Who led is getting better. President obamas 2008 campaign, the new, quote, campaign manager, the second, partnering with big capitalists like starbucks and united airlines. If you open up those companies apps you can order an uber car. Meat prices at record highs, up 12 since last year, up 80 in the last five years, Internet Service versus traditional cable tv for the first time, more internet subscribers than cable subscribers. More people are pulling that plug. Isis terrorists released in a gruesome video of the beginning of kidnapped american journalist james foley. There is this picture, stephen soughtoff is trend with be getting if america does not bomb isis targets. That terrorist on the video says with a british accent, but David Cameron has cut short his vacation. K t mcfarlane. I have a lot of questions. Was but be heading read, this latest the heading threat, set up by our negotiating with terrorists over Bowe Bergdahl . Theres a reason you dont negotiate with terrorists. Their only emboldened. They take more hostages and do more heinous crimes. We learned this the hard way. Jimmy carter tried to negotiate with terrorists in iran and did didnt work. One of my colleagues in the Reagan Administration was taken hostage in lebanon, tortured, beaten and killed. You do not negotiate with terrorists. Valid does is emboldens them. Stuart isis, is the threat. You bet it is a threat. Stuart we will be that this person if you dont stop bombing. That is an attempt to threaten us. There are two ways ices threatens the United States, hostages, american hostages, overseas, were going to kill them. How more american journalists missing that will potentially be brought up and be headed as well, thousands of american civilians in iraq and afghanistan who are sitting targets but theres a second thread which is isis has 7,000 european passport holders, several hundred american passport holders. These are experienced fighters, jihadists and they have all friend to come back to their homelands and carry on holy jihad. Stuart does president obama continue his policy of containing isis or go at them and killed them . Contain terrorists, you dont contain these people and negotiate with them. They cannot be reasoned with. You killed some. How do you kill them . American bombs from the air and boots on the ground. Not american. We are not good at that. We have shown you dont root out terrorists with american. You need local sandals in the sand and use of american aid, military intelligence, whatever it needs to form a new coalition against these guys. Stuart do you think American Public opinion at this moment favors local. On the ground, intensive american bombing, back to iraq for america . This is not talking about american boots on the ground. Get the locals to do it. I dont think americans want to see american citizens be headed a you see time and again americans will be be petted. Stuart largescale american involvement in fighting in iraq is what youre looking at. I dont think you are looking at that all. It wont succeed. It didnt succeed in vietnam or afghanistan. It never succeeded in iraq. You need to get the local people to do the fighting. Given whenever it is they need, arming the kurds, closer support, open checkbook, give them the military equipment they need, in the last week to months adam one guy on the video had a british accent and is worried about thousands of jihadists with british passports. That is worrying to him. That is a threat to his homeland. Stuart the same threat to america . 7,000 european passport holders can get into the United States without a visa. We have seen the underwear bomber, the boston bomber, people flipped through our crack so we need to focus on terrorists like behavior, get serious about protecting the homeland and tell the guys in the neighborhood in the middle east to do what they need to do to kill them. Stuart the game just change. Lets check the big board. One good rally, 17 k, puts us up 55 points from the 17,000. Look at the price of gold, it has been drifting lower, it is down 2 bucks. The price of oil going up today may be because of this terror in the middle east. 95 a barrel now. We always keep a close eye on the ten year treasury and we are at 2. 41 . The superbowl the most watched tv sporting event, football is king and if you are a musician like katy perry or bruno mars, the nfl says you are going to have to pay if you want to play the halftime show but i say it is worth it. If you want to attract an audience of 100 Million People i pay to get in front of that. Serious numbers in a moment. In new york state, were changing the way we do business, with startup ny. Weve created tax free zones throughout the state. And startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. Thanks to startup ny, businesses can operate tax free for 10 years. No property tax. No business tax. And no sales tax. Which means more growth for your business, and more jobs. Its not just business as usual. See how new york can help your business grow, at startup. Ny. Gov Stuart Stuart Stuart Stuart check it out. This my account thing. We can tweet directly toa comcast expert for help. Or we can select a time for them to call us back. The future, right . This doesnt do it for you . [ doorbell rings, dog barks ] oh, thats what blows your mind the advanced technology of a doorbell. [ male announcer ] tweet an expert and schedule a callback from any device. Introducing the xfinity my account app. Could help your business didavoid hours of delaynd test caused by slow internet from the phone company . Thats enough time to record a memo. Idea for sales giveaway. Return a call. Sign a contract. Pick a tie. Take a break with mr. Duck. Practice up for the business trip. Fly to florida. Win an award. Close a deal. Hire an intern. And still have time to spare. Go to comcastbusiness. Com checkyourspeed if we cant offer faster speeds or save you money well give you 150. Comcast business. Built for business. The two they said many times on the show that goal is in the need of a new start. Max adler thinks that there is another star and the ring. We have deals, all the time. He is Something Like 140 from regulation. He is ethically average. You put it all together, he is 12th in the world ranking right now. Stuart yes, but is he a star . Who do you think the big star will be . Both watson. He is so likable. Okay. The results will bolo the forecast. Pet smart. Exploring the sale of the company. Makes note difference. Pro football. The nfl is breaking the tradition. Charles. I think that is entirely reasonable. I expect you to pay for it. Charles or if they dont change the channel because of the performing during halftime. He was not a household name. He put on an amazing performance. Maybe it would be worth the while. They just will not do that. Charles i have to give the nfl credit. You want talk about 1 of head injuries. 1 of whatever else. Stuart biofilm sales went up 164 . It was absolutely amazing. The performance was phenomenal. Stuart i think we are in agreement. Relax. The National Wildlife federation says Global Warming is jeopardizing what is called the out side experience. We will do with that next. The man who ran president obamas 2008 campaign is crossing over. He will be there campaign manager. That will be covered at noon on this program. We have a guest who says he will end up helping rick perry. I had no idea i had shingles. There was like an eruption on my skin and burning. Id lift my arm and the pain back here was excruciating. When i went to the doctor his first question was did you have chickenpox . I thought it was something that, you know, old people got. Stuart here is another one from the greediest. Climate change is making mosquitoes and poison ivy worse. Charles there is a Nature Preserve right behind my house. I have been there a couple of times. Not a lot of things like that. Tiger mosquitoes, then in this tiger ants. Stuart i have a swedish study. The sun and not just humans could be increasing Global Warming. We are off the hook. Charles the sun creating heat. I think this climate changing thing is really starting to fade. Since katrina we have not had a new dynamic. A recent poll suggest bolan kneels may actually be financially centrist when it comes to the economy. Are you buying this . This is a poll from a libertarian organization. I believe we are seeing the birth of a new paradigm. Individual choice. We have seen young people endorse obama and the idea of central planning. Now you are seeing them live to the suffering of the ails of their on both. I think financially and fiscally we are seeing the generation that will just go back to liberate some. Stuart you have also been on this program. When you are out there, they are not like him. They are not listening to your message. They are still very firm on the left. Collectively. Right. Across the last eight months, the idea of republicanism. They do not know what those words can mean. If you say, hey, that iphone you are always texting on, those things are a byproduct of capitalism. That is why we have to make the free market message. Stuart rand paul. He is the most popular politician on the right. Absolutely. He will use these other medians. He is the only person that is engaging young people. I think other republican politicians if you look at young people, democrats really like his message. Stuart rand paul is known for favoring the legalization of marijuana. Where do you stand . I think that has to go on a statebystate basis. Case by case. Issue by issue. Leave me alone. Do not tell me where to live my life. These are issues that matter to bolan kneels. Bolan kneels time and time again want to be the ones making their own decisions and controlling their own destiny. Stuart always a pleasure. Thanks for being with us. Stuart another travel website. It describes itself as different. It better be. There is a lot of competition out there. When the world moves, futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with paper money to testdrive the market. All on thinkorswim from td ameritrade. The. Nicole iam Nicole Petallides. The third day in a row perhaps. A record high. The Dow Jones Industrial average is up 32 points. Home depot is hitting a record high today. A multitude from Raymond James ceo and barclays. Take a look at hurts. Having to withdraw its fullyear numbers. Also because they did not have cars available. That stock right now is down 10. 5 . We are also taking a look at walgreens. That is slightly higher. Two executives are out. In new york state, were changing the way we do business, with startup ny. Weve created tax free zones throughout the state. And startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. Thanks to startup ny, businesses can operate tax free for 10 years. No property tax. No business tax. And no sales tax. Which means more growth for your business, and more jobs. Its not just business as usual. See how new york can help your business grow, at startup. Ny. Gov stuart we have this coming in to fox business. President obama will have this coming in next hour. No word at this moment on which issue the president will address. We have been up ever so slightly off warning long and extremely slow trading. I have a sign of the times stored on here for you. There are more proud. Internet subscribers then there are cable subscribers. 49. 15 people. We are increasingly cutting the cord. If you are a proud. Provider, it is cheaper for you to provide the internet and cable. Stuart that is right. I never thought of it that way. It is just one past the other. Thank you. Charles says he will make us some money. He has spoken about this before. You will tell me again what they do. Stuart they start off with putting them out into networks. They branch out with things beyond that. A lot of it is technology jargon. All of the big names, the most recent quarter numbers were huge. By the way, we are looking at a technical breakout. I am looking for the stock to go back to 147. Stuart yes, it would. A 15 high. There is a new website. It aims to make booking hotels a little easier. It searches the web for prices, ratings and location recommendations. We are joined now by the ceo. My benefit, i have to take myself through this. I get your app. I am coming to new york. The app gives me a choice of Different Hotels. Prices and all the rest of it. Then it makes a recommendation aware would be best for me to stay. Is that accurate . First we would pull in all the data you would need. Most people are usually looking at three to four Different Hotels at a given time. We will scour the web. They may take the address of the hotel and put it into google maps. Use street view to see what is around it. Then they may go over to one of the travel sites to review reviews. We bring it into one central location. We allow you to compare it sidebyside. Did we also sort through that information for you to help you, you know, make and informed booking decision. We will tell you which hotel is better and why. Stuart how do you make your money . You could recommend a hotel. Recommend i make the booking of that hotel and then you make a bit more money because you recommended that hotel. You may not be totally object if. Not really. We just make a small commission off of the booking. We actually send you off site to book. We send you to expedia or travelocity. Stuart no favorability whatsoever. You are totally object is. Does that make you better than kayak . They focus more on just price. Price is really important, but people both a lot more than just price. They may want to be near a specific point. You may need to be near a hotel, you know, they have a meeting at. We will take into considering how do the hotel is to that. Stuart how long have you been in business . We are actually launching today. Stuart thats right. Good luck. Make no mistake about it. Regulation in the east cigarette business is coming. It could end up putting a little guy out of business for good. We have a guy up next with the east cigarette business. Stuart that is the attorney general eric holders claim landed in st. Louis. He is there. He is on his way to ferguson, missouri. Regulation is coming. There is cause to prohibit the sale of flavored cigarettes. Then no tv advertising. The latest crap down call comes from airports. What regulation does the east cigarette business feel most . If i walk into a store, your brand is the light. Is that correct . It is one of our customer prints. Stuart i have it all wrong. No tv advertising. No internet sales. No flavors. Pam from airports and luggage. Which one do you fear the most . We live in a very regulated environment. The conflict of regulation is important. I think the way they approach these regulations actually makes sense. A lot of the things that we are doing today stuart hold on. Do you therefore approve of no tv advertising, no sales on the internet, keeping them out of luggage. No. I do not approve of that. I think that there are aspects to those issues that we need to address. I think that we need to look at flavors and not target flavors that obviously appeal to young people. We need to protect new entrances into nicotine addiction. Online is a very protect good way to prevent minors from getting access to the product. Stuart they will let you do all kinds of Different Things with some restrictions if you are taxed like regular tobacco. They want the money. You give them the money and they will let you do what you want to do pretty much. I think that there will definitely be a tax issue. They are starting to tax in certain states. It is obviously unpopular. People that are switching to these cigarettes look at it as a survival mechanism. I think it will be a challenge for the consumers. I think that the demand will still be there. Stuart thank you very much. Thank you for joining us. Come again soon. David plouffe hired from the Obama Administration. He has a campaign against unions. It will be new at noon. Gerri brown. Leading an economic turnaround in california. The numbers tell a very different story. That is two minutes away. Its monday. A brand new start. Your chance to rise and shine. With centurylink as your trusted technology partner, you can do just that. With our visionary cloud infrastructure, Global Broadband network and Custom Communications solutions, your business is more reliable secure agile. And with responsive, dedicated support, we help you shine every day of the week. My motheits delicious. Toffee in the world. So now weve turned her toffee into a business. My goal was to take an idea and make it happen. Im janet long and i formed my Toffee Company through legalzoom. I never really thought i would make money doing what i love. We created legalzoom to help people start their business and launch their dreams. Go to legalzoom. Com today and make your business dream a reality. At legalzoom. Com we put the law on your side. Stuart hiring david plouffe. That is the headline and that is big news. It is a ride sharing app. And app comes out of nowhere and tires washingtons top gun. What is going on . The sharing economy has clearly arrived. Number two, it demands. Dollars. David plouffe has switched sides. He was awarded the unions with president obama. He is now against them. What happened to the president promise . Here is the bottom line. Things change fast in america. The money woes quickly. Right now money, power and influence is going to a whole new area. Right now that would be the sharing economy. Stuart lets get right into the news. We have every angle covered with jo ling kent, rich edson and doug schell. This shows just how much clout who were really has. It has launched its new api. This allows developers to integrate into the applications. They are partnering with a whole slew of companies. Stuart you have to take me through. Stuart booking a room. I am automatically on hoovers app website. It allows you to book a car. You are in the united app. You land at jfk or laguardia. It is essentially integration. Stuart it has huge clout. It has come from nowhere to 18 billion. Taxis are actually in very high demand. That is what is so alarming. They are sometimes more efficient. Stuart sometimes the Taxi Companies do not like them. It looks like they are switching sides. I think he was battling for of the unions. He switched sides, doesnt he . Both parties are clearing a path to get close to this company. They have health the entrance into the cities. It is really democrats versus democrats in some places. Republicans still say they have the edge on them. They tax the union supporters. It is blocking hoovers expansion. The committee is now offering a online competition. It is definitely getting into the lobbying game. Stuart lets move on to doug. What happened to the president promise . They have relaxed their rules on the revolving door between the federal government and lobbying. David plouffe, feeling some of the most serious issues of life and death, now is going for the money changing sides. It is disquieting to me. Somebody that took things seriously. My goodness gracious, i never would have done that. Stuart we do not know what mr. Plouffe is being paid. He could get a lot of money. This could be an extremely rich and wealthy companies. David plouffe would not go from the highest levels of the federal government to being Vice President if he was not cashing in big time. I bet dollars to donuts that mr. Poff plouffe will do very well in an ipo. May be he has been hired by them to be nice to the unions. He is close to the unions. He is opening up a path. Maybe that is the object. I would put the regulators first. I would put the unions second. Ipo. He is trying to get rich quick. That is what they are about. Ultimately, that is what this whole deal is about. Lets just say maybe this is hinged with jealousy. I got out to make money the oldfashioned way. [laughter] stuart we will leave it at that. Thank you. Check the big word. We are pretty flat at the moment. Maybe we will make a run at 17 k. Maybe not. The s p 500. Exactly the same story. Nevermind the lower forecast at target. The stock is up. The chief Financial Officer made some positive comments and investors liked it. Lows reduced its Sales Forecast for the year. Down earlier. The stock has turned positive. Barely higher, but higher. American eagle. That is a winner. It is a teen retailer. Out. Is making a new record. Nicole take a look. Right now we are watching apple. It has easily crossed the 100 market. Right now you are seeing it at 100. 80. That surpasses. Remember looking at apple above the 700 mark. We had to surpass that and we have done that. Everybody is eagerly awaiting the iphone six. The bigger screen. Easier to type on. The i watch. That should probably bring on some wild fanfare. A lot of people think that those smart watches have not been extremely popular in that that i watch will be a different story. Those people that love the apple , they are probably going to want to i watch also. We will see. The analysts do believe it is something that will have some popularity. Stuart okay. Only time will tell. Thank you very much. Despite what governor gerri brown says, the wheels seem to be coming off of californias comeback. They are losing residents. California population continues to grow. The economy continues to decline. James lacey is the author of taxi for you. He joins us with all of this. They raise taxes. Their tax revenue has actually come down about 10 . You really cannot say it has become that state. That is predict the bull. Art laffer predicted that if reagan cut taxes that the tax revenue would go up. Revenues went up. Within six years they had even more money than they had before proposition six. Poverty, unemployment and welfare. California is the most povertystricken state in the nation for two years running now. It is unemployment. It is higher than the rest of the nation. There has been some improvement, but it is not going in the right direction right now. California has become a welfare state. The welfare recipients come from california. This state senator up in San Francisco has added to the Food Stamp Program in california. We have added convicted drug violence. They are now entitled to welfare because they had to have an equity situation because the rapist felons are entitled to them. Stuart yes. Yes. I know where you are coming from. It has made absolutely no difference to the polls. I think you have a point with respect to brown. Brown is a special situation. I would like to focus on the opposite controller. It has a lot to do with taxation. The republican candidate, who is a republican mayor and fresno is tied back and neck. I am not saying that there will be a big tied turning there, but i do see a change in the state. The fact of the matter is california is doing everything wrong. It has the highest taxes in the nation. It has the highest welfare. It has the highest poverty. It reminds me of a seinfeld episode. When he did exactly the opposite, he was able to get a girlfriend. He was able to get a job. Consumption taxes keep the poor poor. This 15 minimum wage that they are trying to pass in San Francisco is insanity. Yes. Hold on. We are out of time. You and i both know that in the foreseeable future, california will never change its ways. I think that weve got a shot with this controller race. When people see how about the economics are, we will start to see change. Stuart only time willyou for j. See you again soon. Let me tell you what the lineup is for the rest of the hour. Rick perry pope john felony charges. Later on this program, a gift that says this whole fiasco could actually help perry. It is arguably the biggest eyesore. It is painted to mimic shipping containers. It is supposed to be a shopping mall. Still empty to this day. They give style casinos may be coming. That is an eyesore. More on that in a moment. Beef prices. We have the man who runs Planet Hollywood restaurants. Up next, a different way of looking at ferguson. We asked doctor ablow this. Is policy being used as an excuse for violence. He is up next. Unemployed or retirement people. 34 . The job market was just so that. 40 said they were no more optimistic about their job search today. Half of them, by the way. Scott joins us from the cme. The folk of the middle class is is losing ground. They are the ones that will be taking this on the chin. Minimum wage will be 15 an hour. It depends on the city you are in. We have more jobs than we did. Back to the level that we have had since the recession. The parttime jobs. They are not the Quality Manufacturing jobs. We will really need to get this market going again. These things all have a knockdown effect. You can get 4 00 p. M. Growth. You have 10 seconds. It has been interesting to see what the fed does this week. Rates are higher. Sooner rather than later. We talk about the jobs market getting better. It is 2. 4. It will be interesting to see what they will do about that. Big name, you know it. It is known for its products. Inc. , toner, paper. Juan williams has been sounding off. Here is the pope. Killed by gunfire today. About half of the nations murder victims are black. They only count for 13 of the population. Bitter exchange. It is time to admit that the sluggish behavior creates legitimate fear within every community. Dr. Keith ablow is with us now. That is pretty strong stuff. Poverty. That is part of the cause for this violence. What do you say to that . I do not think that poverty causes violence. It is not an excuse for violence. What leads people to be filing is foregone conclusions. The prejudice is ruining their lives. The facts here are not fully known. For all we know, whether he has had other episodes of violence towards white folks. We do not know any of this. We do not know why this young man was shot yet. This presumption is self and excuse for acting out here. Taking the lid off of turmoil. What we need is straight plain talk. A violent minority here. The behavior of young minority black men. It is unacceptable. Absolutely. It is a wonderful justice system. Surely, it is any case. It is one in which the attorney general of the United States, a black man is headed to town to make sure that this unfolds correctly. Any episode of violence, either before or after that is simply above or below the person committing it. It is not a get out of jail free card. That is not an excuse. It does not explain what you just did. Those folks would have looted. Rioted, committed crimes under the cover of any excuse. Stuart got it. Doctor keith. I want to move on to this news item. The father of ethan couch. A 16yearold. He killed four people and a drunk driving accident. The father. He has been arrested for impersonating a Police Officer. Did you get it. What do you make of this . Stories always make sense. The sun having little regard for the lives of others. Willing to put himself first. Maybe there is a little link to the father. Lying in order to puff himself up. Listen, always when you investigate a young mans story who has taken lives, you find family trouble. There is trouble in this family. Stuart always a pleasure. We will see you again soon i hope. Rick. Both on charges. It could end up helping him. The governor. We will do with that fax. Stuart you may know them primarily for jams and jellies, jm smucker is the largest Coffee Roaster in america. Disappointing profit, disappointing sales down 1. 5 for smucker. Rick perry pleading not guilty to corruption charges, he was fingerprinted, mug shot taken, accused of abusing power by vetoing a package by the states integrity unit overseen by rosemary lundberg, a Deputy District Attorney arrested for drunk driving. She refused to resign after her arrest. Here is christian whiten, a former state Department Senior adviser, hes with us now. I think it ends up helping governor perry, am i wrong . You are absolutely right. Thats one of the remarkable things, this is so frivolous, unlike charges from other republican governors thought to be contenders for scott walker in wisconsin and christie in new jersey. I think those lead nowhere. The fact is this is so frivolous, it casts perry as a someone who is being attacked, and therefore is also someone whos seen as a conservative, as someone worthy of attack which will endear him to Republican Voters and bring him above the rest of the field of 2016 contenders. Stuart you have been around washington quite sometime. You know your ways around the corridors of politics. A total miscalculation on the part of the democrats. It is ludicrous. You dont just see this coming from republicans criticizing this district attorney. David axelrod who was one of the chief political fixers for president obama saying this is frivolous. The New York Times editorial page not thought of as a conservative province came out and said this also looked very iffy. You know, its so over the top and gives perry the chance really to defend and act thats very conservative in effect, saving taxpayer dollars from being spent by a corrupt Government Official and if you combine it with other conservative things hes doing as with immigration and job creation, it makes him look pretty good. Stuart do you think hes emerged as a viable candidate for 2016 . You are right. Hes the guy who sent the National Guard to the texasmexico border. Hes been pinned with this ridiculous criminal charge that looks bad. You think hes now become more of a front runner . I think so just because hes doing the types of things a chief executive has to do. You know weve heard a lot about the republican three amigos in the senate, marco rubio, ted cruz of texas and rand paul of kentucky. Senators in the Minority Party cant point to many accomplishment. You can point to speeches and all of the potential candidates have things to commend them, but perry is out. Hes luring businesses to texas including gun manufacturers from states that hate guns to texas where they embrace them, the lawabiding sense. Creating jobs and also on immigration thats cast as an issue that benefits democrats. 68 of voters in a recent ap poll disapprove of obama on immigration when it comes to border security. Most republicans who may disagree over amnesty or past naturalization agree the border should be secured. It benefits them. Stuart thanks. There is nothing going on that market right now. Weve been a plus 3032 for the last hour going nowhere and i believe the volume is extremely low. Beef prices, record high, no matter, you will still go out there and order those highend hamburgers. A big name in the Restaurant Business next. Stuart remember that Obamacare Tax on medicare medical devices . Falling short. You wont believe why. Liz macdonald knows. Less revenue . 24 less, thats a big deal. Its a big shortfall. They expect to get 29 billion over the next decade. Heres whats going on. The medical device makers dont know about the tax or theyre just ignoring it, and stuart, this is so serious. They cant do that. Thats right. This tax hits revenues. Like cigarettes and alcohol companies. Stuart you cant just wait a minute, wait a minute, you cant just say that medical device makers dont know about the tax . Theyre ignoring it. Im giving you conclusion from the treasury Inspector General report. Thats what theyre concluding. They dont know for sure, its assumption. When you raise taxation and expect revenues to come in like this and it doesnt, that means taxes have to go up to pay for health reform. You see it in california with the facebook Capital Gains taxes. Californias Credit Rating is in the ditch. You saw it in 96 when clinton raised taxes, what brought in revenues, the cut in the death tax and Capital Gains tax. This happens time and again. They have the expectations and doesnt come through. Stuart bottom line obamacare is not going to be funded as it thought it was going to be funded. Thats right. Stuart just ignoring it . Thats what theyre concludeing. Keep a close eye on apple stock. Its the number one stock of the day. Its at 100 a share. 100. 71. Thats a new record high. 3. 88 per pound of ground beef. Burgers, are they recession proof . No matter you how expensive, people buy them, dont they . Highend burgers, too. Were going to bring in someone who knows a thing or two about this. The ceo of Planet Hollywood international. Hes the host of the upcoming show be my guest, on the cooking channel. That man is robert earl. Welcome to the program. Thank you, stuart, thank you for the mention. Stuart i didnt know you got a british accent are you a brit . I am. But i didnt make it to lse. Stuart you googled me. [ laughter ] okay, okay, okay. Also one of the two main owners of everton football club. Stuart i didnt know that either. You didnt google me [ laughter ]. Stuart but i did google the price of beef. And i want to ask you because you run a huge chain of highend burger restaurants. Theyre recession proof. Doesnt matter what you do with the price. People will pay 15 bucks for a burger . If were talking about america, they are unquestionably recession proof. I think that america educates everyone to love burgers from an early age. We all stop at the fast food outlets and as the years progress, a lot of people have moved onto some of these wonderful fast, casual chains, and some people are lucky enough, such as me, for room service last night, to have an 8 ounce burger. Stuart how much did you pay for it . [ laughter ]. Didnt look at the price. But it was divine. Stuart it was on somebody elses dime. I know you englishmen, i know you guys. I know you everton guys. Im a liverpool kind of guy. Dont forget that. Yes, i heard you were a red. Stuart wait a minute. I got to tell the audience when one englishmen says to another, i knew you were a red, youre talking politics, as if im a socialist. Dont confuse the audience young man. Everybody knows i am not a socialist. Okay. Let me move on. Right. Stuart i am not a foodie, but everybody in my family is a foodie. I got the text right here. They want you to tell us what this new show is about. September 8th called be my guest. Whats it all about . Yes. Very simply, its a combination of travel, restaurant guide, cooking show, and a little fun. I have very diverse guests on. I hope that we might have you one day, and simply, i travel around the world eating. Its absolutely delicious show, and its on the cooking channel, which is a new channel from the food network, and its every monday from september 8, noon eastern, and i visit every type of cuisine, and i hope i give a very good insight to the viewer. Things that they didnt know, places they will salivate over and perhaps visit. I cook in all of them and i have a lot of fun, im very naughty. Stuart yes, wait a minute, im not going to watch, and i do not suggest that my viewers watch either. If youre on at 12 noon, im on at 12 noon, mr. Earl. Okay . [ laughter ]. Stuart how could you do that to me . Good lord it depends. Stuart it was good stuff. Thank you for joining us, and good luck with the show. Good to see you. Very kind, stuart. See you soon. Stuart you got it. Missouris governor says vigorous prosecution must be pursued in the ferguson, missouri case there. Former attorney general Alberto Gonzalez is with us and hes next. You make a great team. Its been that way sincthe day you met. But your erectile dysfunction it could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. 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Im Nicole Petallides on the floor of the New York Stock Exchange with your fox business brief. The dow industrial average up at 16,948. It was up almost 40, down over 20. We have had back and forth action. The s p 500 up 2 points. Airlines are leading the Dow Jones Industrials transportation index, jetblue and also Southwest Airlines are hitting new highs. Dont forget the transportation index is the best of the bunch. That index is up about 14 this year. The s p is up 7. Staples warning of weak sales, low demand. The core supplies that they sell down 3 at the moment and closing the underperforming stores. Lazboy down 6. 25 right now. They did have profits but didnt meet the business analysts. Foreign markets. Asian debt that recognizes the shift in the global economy. You know, the kind that capitalizes on diversity across the credit spectrum and gets exposure to frontier and emerging markets. If you convert 4quarter p e of the s p 500, its yield is doing a lot better. 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Spiriva helps me breathe better. Sfx blowing sound. Does breathing with copd. Weigh you down . Dont wait ask your doctor about spiriva handihaler. Stuart moments from now, the president will issue a statement from that podium. We believe it will be about the american journalist beheaded in iraq. The statement should be delivered very soon. U. S. Attorney general mr. Holder has arrived in ferguson, missouri. Hes ready to investigate the death of 18yearold Michael Brown. The governor of missouri already condemning the Police Officer involved. Listen to this. We have a responsibility to come together and do everything we can to achieve justice for this family, a vigorous prosecution must now be pursued. Stuart a vigorous prosecution, you heard it. Were joined by Alberto Gonzalez, attorney general to george w. Bush, and also the dean at Belmont University college. Mr. Attorney general, it seemed to me that the governor of missouri there was tipping the scales. What do you say . Well, im hoping that the governor misspoke. I hope that what he really meant to say we need a vigorous investigation, and if the facts warrant it to pursue a vigorous prosecution. Its dangerous when Public Officials say things or do things which indicate that theyve prejudged the outcome of the particular investigation. What everyone should be wanting here is justice under the law, not just your justice, my kind of justice, someone elses kind of justice but justice under the law. And that means that that requires a thorough investigation and there are certain rights that this Police Officer enjoys under our constitution, and those rights have to be respected. We have a process in place and the rush to judgment is damageing. What about the position of attorney general holder who just arrived in missouri . He is flooding the zone with 40 fbi agents and conducting a separate federal investigation. What do you make of this, in this particular instance in ferguson . Obviously, this is an extraordinary case generating national publicity, international publicity, and i think that in this kind of situation, i dont have a problem with extraordinary measures taken by the department of justice. After all, they were invited to an investigation by the governor in this particular case, and so long as the investigation is in parallel, which i understand it is with state and local investigation doesnt interfere with that investigation, i dont have a problem with it. I think general holder is having an agency asked to come into the state of missouri to help find out the truth, and i have no problem with the attorney general coming in, reinforcing to his troops, hey, we have a job to do. The world is watching. Do the job right. Also to reinforce to state and local officials were here to help you achieve the goal of finding out the truth and the presence will ease the raw feelings in the community. Stuart the attorney general, mr. Holder, has the tendency to jump into racially charged situations. What do you make of that . Well, of course, there are laws that exist on the books to deal with violations of civil rights. He is the chief Law Enforcement officer of the country. I obviously, as an africanamerican, he takes these kinds of issues very personally, but hopefully hell discharge his obligation as chief Law Enforcement officer of this country in a way that is unbiased, and in the manner we would expect the chief Law Enforcement officer of this country to exercise discretion in deciding when to move forward with the prosecution of the particular case. Stuart sir, he has not, specifically not jumped into the irs scandal, he has kept out of that. And yet hes jumped right into ferguson, a racially tinged issue. How does that look . If he doesnt go into the irs situation, why not . It obviously looks somewhat strange to someone like you, apparently. The other thing you have to remember, of course, the attorney general works for someone, and very well may be that the president said i want you to go to ferguson and look at the issue. Why the attorney general hbeen involved in the irs situation, i dont know the answer to that. Maybe hes been involved and were just not aware of it. I understand the frustration about the lack of progress in that investigation, and i have serious questions about why more isnt being done, again, there is information that im sure they simply do not have. But i dont question, your questions are legitimate ones. Stuart okay, former attorney general Alberto Gonzalez, thank you for joining us today. Taking time out of a very busy day. We appreciate it, sir. Thank you very much indeed. Thank you for having me. Stuart moments from now, we have the warning that the president is on his way to that podium that you can see on the screen. He is taking time out of his vacation to address, we believe, the issue of that beheaded american journalist by isis. We believe that is the nature of his statement. It will take place moments from now. About 60 seconds from now, we understand. Well bring that you full statement when we get it. Now Liz Macdonald others you are with me. You heard what Alberto Gonzalez had to say about the visit of eric holder to ferguson to start another investigation into whats been going on there and the death of the 18yearold Michael Brown. What do you make of what mr. Alberto gonzalez said. Eric holder is the first africanamerican u. S. Attorney general. To go to effectively mediate between Law Enforcement and the community to try to i think in his mind, calm the waters down there. Youre right, is it selective . Is eric holder picking and choosing which issues to get involved in . Stuart hes gone right into ferguson which is essentially a racially charged issue. Hes stayed away from the irs scandal which, in fact, was a very important issue. That bears on the skewing of a president ial election by the present supporters. With a growing body of emails of evidence to prove there should be a special prosecutor appointed to probe it. Stuart which are now lost conveniently. They are now probing the president is at the podium, lets listen, please. Today the entire world is appalled by the brutal murder of jim foley by the terrorist group isil. Jim was a journalist, a son, a brother and a friend. He reported from difficult and dangerous places bearing witness to the lives of people a world away. He was taken hostage nearly two years ago in syria and he was courageously reporting on the conflict there. Jim was taken from us in an act of violence that shocked the conscience of the entire world. He was 40 years old. One of five siblings. The son of a mom and dad who worked tirelessly for his release. Earlier today i spoke to the foleys and told them we are all heart broken at their loss and honor jim and all that he did. Jim foleys life stands in stark contrast to his killers. Lets be clear about isil. They have rampaged across cities and villages killing innocent, unarmed civilians in cowardly acts of violence. They abduct women and children and subject them to torture and rape and slavery. They have murdered muslims, both sunni and shia, by the thousands. They target christians and religious minorities, driving them from their homes. Murdering them when they can. For no other reason than they practice a different religion. They declare their ambition to commit genocide amidst an ancient people. So isil speaks for no religion. Their victims are overwhelmingly muslim and no faith teaches people to massacre innocents. No just god would stand for what they did yesterday and what they do every single day. Isil has no ideology of any value to human beings. Ideology is bankrupt. They may claim out of expediency that they are at war with the United States, or the west, but the fact is they terrorized their neighbors and offer them nothing but endless slavery to their empty vision, and the collapse of any definition of civilized behavior. And people like this ultimately fail. They fail because the future is won by those who build and not destroy, and the world is shaped by people like jim foley in the overwhelming majority of humanity who are appalled by those who kill them. The United States of america will continue to do what we must do to protect our people. We will be vigilant and we will be relentless. When people harm americans anywhere, we do whats necessary to see that justice is done, and we act against isil standing alongside others. The people of iraq who with our support are taking the fight to isil. Must continue coming together to expel terrorists from their communities. The people of syria, whose story jim foley told, do not deserve to live under the shadow of a tyrant or terrorists. They have our support in their pursuit of a future rooted in dignity. From governments and peoples across the middle east, there has to be a common effort to extract this cancer so that it does not spread. There has to be a clear rejection of the annihilistic ideologies. One thing we can all agree on is that a group like isil has no place in the 21st century. Friends and allies around the world, we share a Common Security and a common set of values that are rooted in the opposite of what we saw yesterday and we will continue to confront this hateful terrorism and replace it with a sense of hope and civility. Thats what jim foley stood for. A man who lived his work, who courageously told the stories of fellow human beings, who was liked and loved by friends and family. Today, the American People will all say a prayer for those who love jim. All of us feel the ache of his absence. All of us mourn his loss. We keep in our prayers those other americans who are separated from their families. We will do everything that we can to protect our people and the timeless values that we stand for. May god bless and keep jims memory, and may god bless the United States of america. Stuart the president looked angry. There were moments in that statement when he clearly displayed anger and emotion. Heres what he said. He said that he would protect america. He said that they would see that justice is done. He would do that by acting against isil by standing with others. He went onto say that this comment there would be a common effort standing with others to extract this cancer. He was no more specific than that, but that was an angry president obama, went right to the heart of the matter. The beheading of jim foley and his reaction to it and americas reaction to it. I keep coming back to that one sentence, very close to the end of the statement. There will be a common effort to extract this cancer. And he was talking about isil. Liz, you were watching along with everybody else, angry . Angry. This is probably the most powerful weve seen president obama speak and his language, rhetoric was really rampedup. You could see he was very angry about this and reminded me of the 2001 president george w. Bushs state of the union when he talked about terrorism. And the president then said it will lead to historys unmarked graves of discarded lives. Thats what president george w. Said back then. Extracting this cancer, no ideology of value. Bankrupt ideology, they terrorize neighbors, this is a rhetoric of president obama right now. Stuart he said lets be clear to isil and went onto a long list of savagery. And note of christians, we heard religious minorities, spelling out religious minorities by name, stuart. Clearly the president is upset at the death of mr. Foaley. Stuart a powerful statement. He showed anger and emotion, and you saw it on the Fox Business Network moments ago. It would be crass to attempt to link this to a financial theme. The Dow Jones Industrial average did not move throughout this statement nor after it. It would be crass to suggest there is any connection between one or the other. There was no connection. President was angry, and ive got to come back to, this he said there will be a common effort to extract this cancer. And he was talking about those terrorists. The people at isil who beheaded an american journalist. Our time is up. Thank you for joining us everyone. Deirdre bolton is next. Stuart, thank you very much. We are going to continue here on risk reward. Wall street journal reporter dana beside me following allergans reported defensive move to acquire another company and thus avoid being purchased itself. Well bring you all the details. And we have our private equity reporter from the wall street journal, mike specter with the latest on pet smart. The retailer exploring strategic alternatives. Jolene kent watching snapchat. It is launching in talk with advertisers that could mean big money for the vanishing message app. Firstup, we start with the activist investor move. Tons to track this year. One that stands out because of unique strategy is the valiant and Pershing Square pair taking on botox maker allergan. In the past five years its rare to see activist investor engineer a takeover attempt as pershing