Transcripts For FBC Varney Company 20170728

And jubilant democrats celebrate their win, senators warren and schumer do a gleeful selfie. Thats the political state of play. Not good for the gop or the trump presidency. Another news development. The economy is expanding very nicely. Between april and june, we expanded at an annual rate of 2. 6 , way better than the 1. 3 gain in the first three months of the year. The obvious questions, how to react to the political mess, the economys improving performance and perhaps most importantly, amazons profit decline. Stay right there, please. All will be revealed. Varney companys about to begin. Stuart all right. Friday morning, in 29 minutes we open this market, and im going to start with the news on the economy again. Gdp growth, 3. 6 2. 6 percent annualized in the second parter of this year. Quarter of this year. What kind of growth rate would we get if the republicans got out of their own way . 4 . It is encouraging that were growing a little bit better than europe or crab grass right now, youve got to get those Corporate Tax cuts going to get that two trillion parked overseas, a lot of it back home. Capital investment is stuart nice gain though, 2. 6 , compared to the First Quarter. Sort of last years Second Quarter. Little perspective. Stuart lets look at amazon. It is going to open sharply lower. Its profits dropped 37 . 77 . Amazon, i think, has reverted to its old style, pouring money back into its growing business. Its spending on new distribution centers, new employees, new content for its prime viewers. That cuts profit. David steinberg is with us. All right, david, right from the get go, would you buy amazon on this dip . Well, you know, i think you nailed it when you were talking to maria before. This is an Amazing Company with a ceo who has a great grasp and control of his organization whos willing to invest as he sees fit to to grow the business in the long term. And to your exact point, shareholders have rewarded him for that. Now i dont know be today were if today were going to see a dip reverse. I think youre going to see the company take a bit of a hit today. They really did come in well below what people thought. But you have a business that grew 25 stuart okay. All right, david. Im interrupting you. I want to cut right to it. The Market Pricing amazon at this moment at just over 1,000 a share. Would you buy it at just over 1,000 a share today . I would, yeah. Stuart you would . Okay. Thats what i want to know, because our viewers want to know this. Is this the day to buy back in . Because its an extraordinary opportunity. Now, let me expand this. Were going to see the big five technology stocks, i think almost all of them will be down at the opening bell today. Is there any other tech stocks that you would buy this morning on this dip . Well, i love facebook and apple. I own both. I think that anytime they dip, its a Good Opportunity to jump in. Ive said that i think amazon will be the first trillion dollar company, you know, for a few hours yesterday jeff bezos was the wealthiest guy in the world. Who thought that would happen ten years ago, right . I mean, its youve got some amazing technology. Obviously, they talk about the run on tech stocks, but at the end of the day theyre really not overpriced if you look at multiple versus growth rate. You know, if you look at amazon in particular, you have you have aws which i think is the most exciting business they have grew over 4 billion for the quarter with a 22 operating margin. You just that business alone stuart right. Is worth a fortune. Stuart david, you answered the question which i think most of our viewers will be asking, buy the dip, yes or no, and your answer was, yes, buy the dip. Thanks for being with us and straightforward. We like that, david. Thanks very much, indeed, sir. Good stuff. Now this, anthony koop lashing out at reince priebus, chief of staff. It was in an interview in the new yorker. Heres quote theyll all be fired by me. I fired one guy the other day. I have three to four people aisle fire tomorrow. Reince priebus, if you want to leak something, hell be fired very shortly. And now this. A white house official tells fox news the situation in the white house is not good. Here is that quote. This is getting out of hand. Im honestly getting concerned for my safety in the office tomorrow. This type of behavior is unbelievable. Working in the white house in Something Like that, it is a disgrace. Joining us now, Fox News Contributor byron york. Byron, the white house is in total disarray, seems to me. Is the president to blame . Oh, absolutely. I mean, the president is usually always to blame for anything that happens in the white house. Thats any president , any white house. And i think what has happened here is a lot of republicans have become deeply embarrassed by whats going in the white house going on in the white house. Look, weve had a lot of palace intrigue in previous white houses, weve had people who were at each others throats, but youve never had such a crude, Public Statement of it as youve had with Anthony Scaramucci. On the other hand, if you look at it from the president s perspective, this is his new White House Communications director pledging total loyalty and to purge the white house of the president s enemies. So im not sure anythings going to actually change real soon. Stuart well, is it going to bleed over into the tax cut debate . Because thats about to happen, and it looks to me like Many Senate Republicans are at war with the trump white house. Yeah. Stuart what chance do we have of a tax cut in that environment . Not really good, actually. I mean, this is an incredibly complex topic. If you lock at the statement that the look at the statement that the big six released about tax reform yesterday, other than the statement they made on the border adjustmenting tax is not going to happen, there were no details in it, there was nothing to suggest that theyre really together on anything. And, look, this is something that republicans could not agree among themselves before donald trump showed up. This is not entirely a trump thing. But having a white house that just appears to be shooting itself in both feet and the head stuart you know is not going to help. I get the impression that some republicans in the senate truly detest donald trump. Am i right . Oh, yeah. Look, there are a number of senators who strongly support the president s agenda, and then there are others who basically have been waiting for him to fail. And they didnt do anything to help him. On the other hand and now here we are, six months into the president s term in office, and weve had this failure with obamacare. And when anybody talks about tax reform in august, you just kind of have to laugh at that because thats just not going to happen. Stuart i think you wrapped it up very nicely there, byron. We appreciate you be you being with us on a dismal friday morning. Thank you, stuart. Stuart individual stocks, first of all, look at starbucks, ouch to. Reporting strong sales in america, but its going to close all of those [inaudible] stores by the spring of next year, down 7 on starbucks. How about mattel . Reporting lower profits on weak sales of barbie dolls and fisher price toys. Its going to take a 5 hit this morning. Mattel down to 20. President trump is heading to new york today, laying out a plan to fight the violent street gang ms13. That gang accused of 17 brutal murders on long island, some victims hacked to death with machete9ties. Thats a story were following. Venezuela, key vote this weekend. The socialists could seize absolute power. More violence expected. The u. S. Pulling diplomats out of that country. Politics, new study from the tax policy foundation. If your family makes 150 300,000 a year, that Organization Says you could be paying more in tax under the president s tax reform plan. Congressman kevin brady, top guy on the taxwriting committee, hes up on this program many our next hour. And another varney stole the show on fox friends this morning. My daughter, angela, interning on fox friends for the summer. She got a chance to give the Weather Report this morning. I am a very proud father. Watch this. I want to introduce you to a little friend of mine. Her name is angie varney, and shes related to someone very famous in the building, arent you, angie . I think i might be. To so tell us who youre related to. Stuart varney is my father. Stuart varney is her dad. I dont see him in the audience. Im disappointed. Yeah, i told him id Call Security if he showed up [laughter] angie is our college associate, shes been one of my favorites, and she is going to do the weather for us today. Are you ready, angie . I think so. Are you guys ready for angie . [cheers and applause] 73 degrees in new york city for our summer concert series. Partly cloudy skies. We are watching the threat of storms across the southeast and midatlantic with strong winds and heavy rain. Flash flooding could also be a problem over the southwest, and the heat continues. Across the Southern Plains this weekend, thats a look at your current forecast. Back tyou, ainsley, steve and brian. [cheers and applause] stuart i thought that was pretty good. By the way, shes doing the Financial News on monday morning. [laughter] no, thats just a joke. Well done, angie. Great stuff. Well be back. Pleasure with my dentures. I love kiwis. Ive always had that issue with the seeds getting under my denture. Super poligrip free. It creates a seal of the dentures in my mouth. Even well fitting dentures let in food particles just a few dabs of super poligrip free is clinically proven to seal out more food particles so youre more comfortable and confident while you eat. Super poligrip free made even the kiwi an enjoyable experience try super poligrip free. The great beauty of owning a property is that you can create wealth through capital appreciation, and this has been denied to many south africans for generations. This is an opportunity to right that wrong. The idea was to bring capital into the Affordable Housing space in south africa, with a fund that offers families of modest income safe and good accommodation. Citi® got involved very early on, and showed an enormous commitment. And that gave other investors confidence. Citis really unique, because they bring deep understanding of whats happening in africa. I really believe we only live once, and so you need to take an idea that you have and go for it. You have the opportunity to say, ive been part of the creation of over 27,000 units of housing, and to replicate this across the entire african continent. Whoa thats amazing. Hey, im the internet i know a bunch of people who would love that. The internet loves what youre doing. So build a better website in under an hour with. Gocentral from godaddy. Type in your idea. Select from designs tailored just for you and publish your site with just a few clickseven from your. Mobile phone. The internet is waiting start for free today at godaddy. People would ask me that we traveled,ntries what is your nationality and i would always answer hispanic. So when i got my ancestry dna results it was a shocker. Im from all nations. It puts a hunger in your heart to want to know more. Stuart intel reports strong profits from its data center group. I think thats the Cloud Business. The stock is marginally higher, 20odd cents, thats it. Video game maker electronic arguments reporting weak sales. The worst thing it did was to look to the rest of the year and say it looks dismal or not so good. Down over 3 . Venezuela, the state Department Orders relatives of american diplomats out of the country and, e. Mac, i think weve got a new death toll. 111 now dead, 1900 injured. The majority young men shot by gunfire, killed by gunfire. And this comes as news breaks venezuela has banned protests through next tuesday, threatening people who protest or even Public Meetings 510 years in jail. Still a massive protest planned for today in caracas. Stuart okay x. This weekend it comes to a crunch, i believe. Thats correct. Full control by maduro, thats what the vote is about. Stuart this weekend. Okay. Now this, President Trump is heading to long island, new york, today. Hes going to talk about the fight against ms13, the violent gang. Joining us now is congressman lee zeldin, republican from new york. Congressman, im going to chalk this issue up as a win for President Trump. One of few, but a win nonetheless. And i believe that two of the victims of this gang are in your district, correct, sir . Well, no doubt, the president was has been all over this issue going back to the campaign. This is leadership. Its, on his part, the white house, department of homeland security, doj, theyve been all over it. And im reading about one indictment after another. Ms13 is all over long island, tearing apart families, its tearing apart communities, and President Trump even though hes the president of the United States and hes in washington, d. C has this laserlike focus on very local issue for us on long island. And its a very welcome relief. Stuart okay. Now, ive got to turn to other issues, obviously. The Obamacare Repeal bill, total fail in the senate last night. Now weve got to move on to tax reform. What are the prospects for a tax cut, congressman, bearing in mind that we couldnt get anything done on health care . On the house side, we are going to be able to pass broadbased tax reform. Theres high confidence, high optimism in our chamber, and weve passed hundreds of bills that have been sent over to the senate, 43 bills the president has been able to sign since the beginning of his term, including stuart if i may interrupt, forgive me, congressman, ive got to cut to it right here. If it gets to the house, when it gets to the house, can you tell us definitively that the house will vote to cut individual tax rates and cut Corporate Tax rates . As close as i possibly can to be guaranteeing anything about any topic, i would say absolutely. I mean, im speaking to colleagues, and the house is ready to reduce Corporate Income tax rates, to reduce, to make it easier for individuals to be able to file their taxes on a postcard, to reduce the number of brackets, to move up to immediate expensing and depreciation. The house is there. I would be shocked if we didnt pass that. Stuart okay. Now, i understand that the house is about to go on a fiveweek recess. Is that correct . Well, we do start a recess. However, you know, right now as im here with you theres a conference going on two floors underneath me which is a planning conference to talk about various issues that were working through. And i know as of the last update there was discussions of being here to vote on different pieces of legislation. But i will tell you that, you know, when this planning conference got scheduled, it was with the Senate Passing an obamacare stuart yeah. Repeal bill. So i dont know whats happening directly two floors underneath me, but i know that were discussing i dont know what the discussion is regarding Obamacare Repeal morning. Stuart what do you think will be the reaction of constituents if you come back for five weeks away from d. C. And we dont have obamacare and we dont have anything on taxes . Theyre going to, theyre going to go crazy. Well, i mean, as it relates to taxes, you know, thats just, thats not i dont think anyone was talking about that passing by august recess. Thats something that im really hoping that we could put on the president s desk by thanksgiving. Thats been the timeline. It would be great to see that retroactive to the beginning of 2017. But as far as health care goes, for people who for years have been actively campaigning for and fighting for repeal of obamacare, theyre greatly disappointed this morning. Stuart yep. What the senate brought up was a partial repeal, and to all the heat that conservatives like mike lee, ted cruz, rand palm got and moderates rand paul and moderates, it should be pointed out they all voted yes last night even though that wasnt what they wanted. Stuart got it. Congressman lee zeldin, good luck today with ms13. Thank you, sir, appreciate it. Now bill simon, the former ceo of walmart usa. Not a fan of jeff bezos, not a fan of amazon. Accusing bezos of predatory pricing and anticompetitive behavior. Youll hear from him at the top of next hour. And weve been saying it for a while, all those National Anthem protests at Football Games are cutting into the nfls ratings, yes, they are. More varney after this. Today, were out here with some big news about type 2 diabetes. You have type 2 diabetes, right . Yes. So let me ask you this. How does diabetes affect your heart . It doesnt, does it . Actually, it does. Type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. And with Heart Disease, your risk is even higher. You didnt know that. No. Yeah. But, wait, theres good news for adults who have type 2 diabetes and Heart Disease. Jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. Jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and Heart Disease and lower your a1c. Jardiance can cause serious side effects including dehydration. This may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. Ketoacidosis is a serious side effect that may be fatal. Symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. Stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. Symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. Do not take jardiance if you are on dialysis or have severe kidney problems. Other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. Tell your doctor about all the medicines you take and if you have any medical conditions. So now that you know all that, what do you think . That its time to think about jardiance. Ask your doctor about jardiance. And get to the heart of what matters. Stuart this is the premarket stock price of the travel web site expedia. They made 57 million profit last quarter, a little bit better than expected, but no influence on the stock. Its up just 25 cents at 154. Chevron made money, 1. 5 billion last quarter, and chevron is virtually unchanged. Headlines, here we go. First off, Amazon Holding a competition in japan. 16 teams competing to build a robot that can complete the final stage of shipping an order. Picking up differentlyshaped objects, stuffing them into boxes for shipping. Currently, that job is held and only be done by humans. How about this . British Treasure Hunters say they found nazi gold from world war ii about 100 miles off the coast of iceland. Its in a sunken german cargo ship. The gold could be worth upwards of 130 million. The Salvage Company that found the wreck still needs permission from iceland to recover the gold. Next, new survey out. J. D. Power says playerled National Anthem protests hurt nfl ratings last season. 26 of people say they watched fewer games because of players like Colin Kaepernick taking the knee during the anthem. Not popular. Outgoing ge chief jeff immelt on the short list as the next uber chief. Update, just last night meg whitman another name being floated for the top job said not interested. All right. Now, look, weve got, what, four minutes to go before that market opens. Well be down ever so slightly. Heres what the market has to consider; a stronger expansion for the economy in the Second Quarter, but a whopping, great big decline for amazon. Will we see a bounceback . Stay tuned, youll find out here. Stuart one minute to go before we open trading this friday morning. May i remind you that last night amazon, king of the Technology Companies thats what many people think reported a huge drop in profits, and the stock promptly headed south. Look at it now with, what, a few seconds to go before we open trading. Were down 33. Thats the premarket, implied open for amazon, all the way down to 1,012. Is heres a question which will be answered today, is this the time the buy on the dip . And what influence amazons profit report have over the rest of the market . There are other factors to weigh here as well. About an hour ago, we received news from the economy. Between april and june of this year the economy expanded very nicely, 2. 6 annualized growth. Not bad at all. But then again, weve got the taillight fail of obamacare total fail of obamacare in the senate last night, voted down, and weve got chaos in the white house. Thats the backdrop. It is 9 30. We are off and running and we are down. Not much, but were down. Down 24, down 20. Plenty of green on the lefthand side of your page right there. And now were up. [laughter] i dont know what the market is paying more attention to, amazon, chaos in the white house, the death of Obamacare Repeal or amazon. Which is it . I guess theyre all many play. Lets have a look at amazon. As we said, it reported a 77 profit decline. Thats the first few moments of trading, and its down 35 at 1,008, down 37 at 1,008ing as we speak. Now, look at the big Technology Companies. Theyre all down. Not as much as amazon, but theyre down. Facebook, microsoft, amazon, apple alphabet, apple. Another huge loser, this is a surprise to me, starbucks. Its closing all of its tee very that locations. Is that whats taking it down 7 . Theres more to it than that, surely. Lets sort it out. Liz macdonald is here and so is Scott Shellady and jeff seeger. Jeff, this is going straight to you. Is this the day when we buy on the dip . What say you, jeff . No, well, first of all, i love amazon. Ive loved amazon for a while, but ive been and i dont own any shares, but ive been consistently telling people it is not the time to buy amazon. First of all, what amazon made perfectly clear was that in order for them to grow, they have to continue to spend on things like Fulfillment Centers which are these massive structures, content. Theyre spending billions and billions of dollars to grow, and as long as theyre doing that, youre going to see revenue numbers that are good, but youre going to see some of these earnings numbers that disappoint. Stuart all right. Lizzie, get in. They forecast a potential quarterly loss coming up. So you maybe buy then. The first time in two years, youre right, 38 billion in sales, 37 billion in charges. They are plowing back into the bids. But without that cloud, this would be about 290 million in the red without the Cloud Business. Stuart ouch. Okay, now were down 40, almost 41. Scott shellady. Now, youre a trading kind of guy. Thats what you do. Yeah. Stuart youre in, youre out, thats what you do. Absolutely. Stuart would you be in real fast to amazon at 1,005 . No, im looking for i think we cant have everything go up forever. Im not saying weve got doom and gloom coming around the corner, but the market would be healthier with some sort of pullback. Thats what im waiting for. Its hard to call a pullback in the amazon stock price because, stuart, coming on to the show this morning i looked, and it looked to me we were going to open up where we were two weeks ago . [laughter] is that that a massive pullback . Lets have a little bit of common sense here, thats all. Stuart okay. Give me common sense on the rest of the big five technology stocks. Theyre all dipping a little this morning. You buy any of them on this small dip . I think technology is absolutely the place to be, and i would slowly be feathering money in, because thats the type part of the economy thats going to expand. And theyre going to be a large part of where we go in the future. So i love technology, i love what it can do, but i would slowly feather things in here. I wouldnt be betting all of grandmas wealth on one shot. Stuart next question, why is todays numbers on the economy were growing at an annual rate of 2. 6 , very solid, indeed why is it that weve gotten rell tvly good news on the economy, but the market is still heading south . I dont really think 2. 6 is great news. We havent hit the 3 number in a very long time. The reason why is that we have a lot of rhetoric about tax cuts. I think tax cuts are imperative in order to get gdp numbers to improve. Stuart okay. So until we see that, were still in the worst recovery in history, and we need a catalyst beyond talk. Stuart so weve got to have tax cuts we have to. Stuart no way around it yep. And we cant accept gdp under 3 3r. That would be a valve city. That would be accepting slow growth to z the norm, and i dont think thats necessary. Whats mess is for us to get congress to get off their butts and get something done so we can get gdp better. Stuart ive got to tell you half of all the s p 500 companies that have reported earnings so far, 73 of them, seven out of ten, have produced better profits than wall street was expecting. 72 have topped revenue estimates, if you want to put it like that. So the profit picture, scott, looks pretty good. Is that balancing out the negatives from washington, d. C. . Yeah, i dont think washingtons i mean, washington is an irritant. I dont know if its a negative. Its just an irritant. I think that Going Forward with a 3 growth rate, i agree with jeff, were going to need to see some tax cut, but lets not stop at 3 , folks. Thats still low. Ive been doing this a long time, im expecting 4 , 4. 5 , really get this economy going. Right now washington is an irritant. It could be some wind in our sails when they get themselves sorted out. Earnings are a pat of the reason part of the reason, but theres so much money out there. Look at some of these companies that are floating bonds and they can borrow a lot of money for as long as they would like. Theres such liquidity out there, thats the real big reason why i think stocks are where theyre at yeah, and i think scott and jeff are right, but heres the thing, we are at record highs with record lows in volatility. Its pretty complacent and, you know, calm sailing out there. The last time we saw a rocky market was brexit or the threat of four Interest Rate hikes from the fed. So its nice and calm right now. Also you pull those five stocks occupant of the indexes, the big five out, and you have good returns but not great returns. What im seeing is a very come complacent market where people are plowing into the same stocks. Those stocks continue to move up on momentum. And scott said, it was perfect, theres so much liquidity chasing few stocks, its a very dangerous place for investors. Stuart and look at, the crosscurrents arrive at this level for the dow industrials. After six minutes worth of business, the dow is down 10, thats it. Down 9, down 10. But look at the level, 21,787. Thats no selloff right there. Yeah. Stuart no selloff. Maybe in amazon but not across the board. Couple of more individual stocks. First off, energy. Exxon doing worse than expected. The stock is down 1. 8 . Its down. Chevron reporting higher profits, that is up 1. 5 . Mixed picture from energy companies. Mattel dropping sales on the iconic barbie and fisher price brands, its down theory, what, 8. 5 down. The video game maker, electronic arts, doing worse than expected, its down 1 , 1. 39. Expedia, the travel web site making money, more than it did last year, thats up 2 at 157. How about American Airlines . Very solid profits there but its down 1. 4 . Hard to get a handle on this, isnt it . [laughter] expectations here and there. Starbucks is going to close all of its t. Varna stores. Is that a good move . Look at it, down 7 . Is starbucks down because theyre closing well, first of all, i know youre a tea drinker, so my condolences stuart sort of. [laughter] and liz too. One thing i will say is starbucks has proven yet again theyre unable to view some of these trends that most of these store first of all, tea is not exciting as coffee. Most tea drinkers are relatively plain people [laughter] theyre creating all these you say that of stuart and i . Stuart im an american, come on. Theyre creating all these new drinks like that unicorn drink at starbucks, what could you innovate in tea . Its weak u. S. Demand. Stuart thats the question, thats very good. I mean, thats it. Its over. [laughter] stuart i do want 600 million. Stuart Scott Shellady, new resident of britain, i dont think hes a tea drinker. Come on, park judgment on teavarna. It never really sold itself to me in the first place. I think the foot traffic in malls is going to be down until they start to turn them into condominium complexes. It just didnt all fit together for me. Im the guy who couldnt understand, i dont smoke, but when you couldnt smoke in a starbucks near europe, i thought the stock would take a hit, but, no, its gone straight up. It was never a real good sell to me, and i think its good they get rid of it and, ultimately, theyll be healthy without it. Stuart well, its gone. Its the end of an era for apple. Its going to stop selling ipods, thats the portable music player. The ipod put apple back on the map, didnt it . Yeah, it did. It was before the iphone. Stuart i dont think thats a big deal. They had the touch instead. Stuart its just getting rid of a project thats lasted a long time. No big deal. But apples at 149, and thats not great. Were ten minutes into the trading session, its time to say goodbye to jeff in new york and scott in london. Bet back to your get back to your tea and your warm beer. [laughter] now, were down 17 points on the dow industrials. That means its a standoff between the relatively decent news on the economy, the chaos on the senate floor and amazon testing the 1,000 pershare level. Were down 17 on the dow. The senate, total fail on Health Reform. The republicans couldnt get 50 yes votes. As of now, obamacare lives on. Well cover it for you. In our next hour, a congressman whos in charge of writing the tax code, kevin brady. Question for him, why should we have any confidence in congress to deliver tax cuts by the end of the year when they cant do anything on obamacare . Well be back. Stuart twelve minutes into the session we are down 19 points, 21,777. How about this . More people are drinking sam adams beer, and the stock is way up. Nicole, explain please. Check it out, right . Its up 17 . Sam adams is under the umbrella of boston beer company, and they came out with their Quarterly Report that really wowed wall street on the top and bottom line. In fact, we talk about sam add ams sales, and in the latest quarter, 372,000 more barrels of product sold from the prior quarter. So everybodys loving the beer and the summer ale. Back to you. Stuart thats a very nice jump for the stock price as well. All right, nicole, thank you very much, indeed. A new day, a new airline controversy. Group of American Airlines flight attendants gearing up for lawsuit all over their, what, uniforms, liz . Yeah. 3,000 complaints filing in. 70,000 American Airline workers got these new uniform, and they immediately, they said, began to pall ill. Respiratory diseases, nausea, headaches. One person said heavy metal poisoning. The yet to be filed lawsuit is expected to name the uniform supplier, twin hill. So well be watching this story for you, flight attendants getting sick and ground staff due to their uniforms. Stuart okay. Thats a new one, isnt it . Yeah. Stuart back to politics, please. Last night the senate failed totally to pass a skinny version of the Obamacare Repeal bill. Joining us now, the heritage foundations president edward feulner. I am calling in the gross failure of the Republican Party. Would you disagree with me sharply . No, not at all, stuart. In fact, its on the job training, im afraid, for the last six months, and you were going to be stuck with zombiecare as we call it for the next couple of years until we can actually get to repeal. But the encouraging thing, stuart, and coming up with kevin brady is it looks like theyre learning some lessons to coordinate the administration with the house and the senate on real tax reto form. Thats very exciting to me. Stuart but tell me about that, because when obamacare failed totally last night, a lot of us under the r turned around and said, well, there go tax cuts because if they cant do anything on obamacare, what can they possibly do on tax cuts . Youre telling me they may learn from this lesson . I think they really have. Yesterday you had mnuchin, gary cohn in the house, the house in the white house, the house and the senate and house ways and Means Committee all coming together and saying these are the basic principles we want. Kevin bradys gotten off this border adjustment tax, and everybody is now going out and saying were going to reduce corporate rates, were going to reduce individual rates, were going to go for repatriation, and were going to really grow the economy above where it is right now. Stuart if they dont, you say hello to the democrats running the house next year, say hell throe the democrats hello to the democrats in the white house this 2020 and possibly the impeachment of President Trump. I mean, thats kind of a dire response, isnt it . Well, that would be, stuart. But im one of washingtons congenital optimists. [laughter] ive been here for 50 years, ive seen the ups and the downs, and there are no permanent defeats in washington. Yeah, we had a setback last night on health care, very disappointed particularly with senator mccain. Boy, he was a surprise and a disappointment. If he had witch switched his vote, it would have gone the other way, that was that close. Stuart heres Something Else which i think is positive, and thats the gdp number, annualized growth rate of 2. 6 president. I see that as pretty good, dont you . Thats pretty good, stuart. Im a 3 er, minimum. Id really love to see a 3 plus because thats where it should be, thats where historically it has been except for the last decade when weve had too darn much regulation and too high taxes, and lets get rid of that. To his very great credit, i think the president has done a lot in terms of executive orders. The house has passed the choice act whichll get rid of the worst parts of doddfrank, so there are some positive things happening right now down here in washington, stuart. Stuart has President Trump got anything to do with the gross republican failure in the senate last night and a difficult relationship with youre shaking your head. Duds any blame rest upon does any blame rest upon President Trumps shoulders . I dont think so really. This was he had every reason to anticipate since the house and senate both voted for full repeal in the past when it really didnt matter because they knew it was going to be vetoed by obama, he assumed they would do it. And he has made it very clear publicly and privately he will call anybody, he will twist any arms or invite anybody over and buy hem a sandwich or a sam adams or whatever theyre serve anything the white house and try and get them on board x. Hes been a team player and a real leader on this, so i dont put the blame there at all. I put it on the fact the republicans have got to learn that this is that theyre in a team. This is not a round of golf for the u. S. Open. Ing theyve got to may together. Stuart do you think were going to the get used to this president , his tone, his conduct, the way he runs the office . I know youre laughing, but theres a lot of people out here shaking their heads. Were going to have three and a half more years of this . Yeah. A lot of us do shake our heads. Im a midwestern guy from out in illinois, but all my friends from new york say, hey, get used to it. Thats what were like in new york. And this business now with scaramucci and the others going back and forth, i dont understand it. But lets, lets stay focused on the big picture, and lets get some tax reform done. Stuart oh, yes, please. By way, dont go back to illinois. [laughter] theyll take you for an arm and a leg. Not right now, no thanks. Stuart thanks for joining us, sir, we appreciate it. Thank, stuart. Stuart were down but i see a little bit of green there, about twothirds down, onethird up for the dow 30. And amazon, pretty close to 1,000 a share. Treasury secretary Steve Mnuchin on capitol hill repeatedly cut i off by california democrat Maxine Waters. She just kept on interrupting, wouldnt let the secretary answer questions. We will play you the sound bite shortly. And coming up top of the hour, President Trumps top budget guy, mick mulvaney. Hes live from the white house, 10 00 eastern. And tonight on wall street week more from maria bartiromos interview with House Speaker paul ryan. One topic of discussion, can republicans pass tax cuts by the end of the year. Heres a clip. What were trying to communicate is that we think most of all that is important that we come to Common Ground on how to do tax reform so that we can get it done in 2017. Nah. Not gonna happen. Thats it. Im calling kohler about their walkin bath. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] mmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. 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Reclaiming my time several times reclaiming my time, reclaiming my time mr. Chairman, i thought when you read rules, you acknowledged that i shouldnt be interrupted and that i would have reclaiming my time, reclaiming my time, reclaiming my time would you like to give the secretary an opportunity to apologize to mr. Ellison for not a that is not a proper parliamentary inquire. Stuart democrat congresswoman Maxine Waters interrupting, repeatedly, treasury secretary mnuchin at a hearing yesterday. Liz, i just think that was rudeness. It was. It was rude. It was notably nasty, and it basically Jeb Hensarling had to break it up. Hes run ugh the house financial running the house financial services. Maxine waters upset that mnuchin didnt respond to her letter about President Trumps financial sewer actions with russia interactions with russia. It was a nasty hearing and exceptionally rude, youre right. Stuart sign of the times, is it not . Yes. Stuart our politics is nasty. Thats the way it is. Look at this, new study finds conservative students increasingly afraid to voice their beliefs in class. Wake up, campuses across the country. If youre training your professors and student squads about microaggressions and you have bias teams, look what youre doing to your students in your own classroom. To have them selfcensoring and silencing debate a makes for a less interesting discussion, less informed students and, basically, adds a false consensus about reality going on. Its not reality. Stuart its not a university. Right. Stuart its not a college education. I spent my time at college arguing furiously about politics, philosophy, culture, you name it, and i was out there arguing about it. Yeah. Stuart and some people were offensive. Okay, so what . Thats free speech. It is. But, you know, i experienced it in the 80s at college. This is back to the 80s. So this has been decades in the making, and i think they need to stop, because were not getting wellrounded students for the real world. Stuart its not an education. Right. Stuart and i dont want to pay for a noneducation, thank you very much, indeed, even though ive paid out a lot of money. [laughter] were down 35 points, 21,761. Hate to say it, but as we were just discussing, our politics has descend into what you might call chaos. White house staff in a very public fight, a failure, total failure to repeal even a small part of obamacare. Its descending into chaos, and ill have my take, my editorial on that coming up, top of the hour. Stuart what a mess, republicans, the president of the democrats all have a piece of the blame. Our politics have descended into embarrassing chaos. At the white house two top officials are involved in a very public fight. Obscene language used by the president s spokesman was the president himself has stirred the pot, angered senators with his tweets against his own attorney general and then he said alaska republican Lisa Murkowski really let our country down and he said that just as she was about to vote on the skinny bill. She of course voted no. The republican president is at war with his own party. The party is at war with itself. It couldnt even muster 50 votes to kill even a small part of obamacare. This is the failure of the gop, they promised a fix and they accomplished nothing but as for the democrats they are rejoicing. After the vote last night senator feinstein said tonight we celebrate. Senator warren appeared in a gleeful selfy with senator schumer. Democrats gave us obamacare and as it collapses they are happy. Chaos within the white house, open warfare within the Republican Party, a gross fail on an election promise and the growth agenda stalled. Now what . Democrats will be brought in to fix the obamacare mess they created which means more government care. America stays on the european road. Republicans will go on to tax cuts. After the obamacare debacle why should we have any confidence that they will get it done . Today the president goes to long island, new york, to check promise against the ms 13 game. Where we left with . The vague hope that our politics have hit bottom, that republicans understand they cant go on like this, white house staffers understand you cant go on like this in the president understand if he doesnt stop his offthewall behavior his administration will be a complete failure. The second hour of varney and company is about to begin. Stuart is that an instrumentalist . Madonna, celebrate. Stuart democrats celebrating after republicans failed to repeal obamacare yet again, senators schumer and warren marking the occasion with a selfy. The latest read on Consumer Sentiment. Are we more optimistic or next . The last 393. 4, still around 9month lows, before donald trump was elected people still worried about their personal finances. Stuart what about the tax cut and obamacare. A modest loss. We may be way down for the stock price of amazon but the overall dow jones average is down 23 points and i keep saying this. Look at that level, 21,773. Individual stocks moving include starbucks, take a look at that, big tech, only one is going up. Starbucks down 7 , biggest drop in five years. It lowered its forecast for the year. That always hurts stock. They are closing their teavana outlets across the country. Exxon hitting below is level of the stock price since february 2016, down 2. 7 . Now to Donald Trumps growth agenda. Joining us, mick mulvaney. Welcome back to the program. Why should i have any confidence that you can get us tax cuts when we couldnt get anything done on obamacare . A fair question but there is a fair answer. You saw the big 6, the House Republicans, senate republicans, the white house rollout yesterday or the day before yesterday a basic set of principles everybody agrees on. The ideas about growth are there. We are all on the same page so we are ahead of the curve on taxes compared to healthcare. I dont think republicans seem to agree on where healthcare repeal and replace ago but we agree on tax reform. Stuart is there basic agreement within the Republican Party in the senate and the house we can individual tax rates and Corporate Tax rates . It is more than fat. The basic idea that the system needs to be simpler, needs to be more progrowth and more proCapital Investment. These are big ideas and big places to have agreement. The details are not there but the answer is yes, we all agree it needs to be simpler, rates need to be lower, now the discussions will be how much simpler and in what way and how low will the rates be but those are the details that can get done in washington. Stuart in the white house you are dealing with the Anthony Scaramucci issue, the use of obscene language going after rights priebus, clearly there is chaos in the white house. Is that going to get in the way of your job and cutting taxes . I know you will shake your head but the rest of the country is looking at the saying what is going on here . I will push back on the chaos thing. We just revealed yesterday this idea of a unified position on basic principles on taxes. That is not chaotic. We rolled out of the office of management and budget over 860 regulatory actions we have delayed or stopped in the first 6 months of this administration. That is not chaos was the media does pick up on that and that is fine, that is what they do for a living but we work here and we are making progress with you side in todays gdp numbers and the Capital Investment numbers and Consumer Sentiment at the top of the show. Look at the Business Sentiment reflected in the Capital Investment numbers europe, 8 , this is tremendous sort of testament to what is actually going on with the nuts and bolts of running this country and getting the economy moving in every direction. The chaos will play on it, palace intrigue sells better than raw numbers for the raw numbers are looking better and better and that is because the ministration is doing its work. Stuart if you push back against the idea of chaos in the white house, what about this . Some republicans in the senate especially who appear to detest donald trump. Dont know if those feelings had anything to do with senator mccains no vote last night but that was a surprise and there are republicans in the senate who really do not like this president. It is personal. That could get in the way of cutting taxes in the senate. No . It shouldnt. At the end of the day you hope democrats, republicans, house members, Senate Members will allow policies to help guide their final decision. Also allow the promises they made to their constituents decide those decisions. Maybe you dont like the president but if you promise your people you would vote to repeal obama care you should have done it and need to do it and that is why the senate isnt finished with care. I dont think they can go home without passing something. Personal feelings for the president notwithstanding, policy should drive their decisions and when it does we will the Obamacare Repealed and replaced. Stuart we have the obamacare taxes with us. They will probably stay for some time. That is a probability, doesnt that get in the way of cutting taxes elsewhere . I was disappointed when i saw that come out of the senate. Here is how i look at it. If that is what it takes to get Obamacare Repealed and replaced, we will get a second bite on that. We know what they do to gdp growth, the negative impact on the health of the american economy. We want to see them removed as part of the Health Care Debate but we get a Second Chance to review the issue as part of tax reform. Stuart 2. 6 annualized growth between april and june. Several commentators on this program have said we love to get to 3 but you cant get to 3 unless you cut taxes. Do you agree with that . A lot of things have to happen. We introduced the concept of a unifying theme of everything we do as we try to get to that sustained 3 Economic Growth, tax reform is part of that but dont discount the value of the regulatory effort in the office of management and budget as part of the white house ever to jumpstart the economy, we are seeing that in gdp growth, dont discount things we are doing on welfare reform, energy policy, weaving together all those things as we get to 3 growth. You ask if we could get a 3 Growth Without tax reform probably not but other things moving at the same time, you are seeing that filter through the numbers. Stuart you have a very tough job and you are in a tough position but we thank you for appearing this morning. I love my job and being on the show. Stuart amazon is the individual company, the individual stock of the day down 3. 5 at this moment, it reported last night its profits dropped 77 . They are returning to the old way of doing business, they take in a ton of money and fill it out to expand the entire company. That is what they are doing but stock is way down this morning. Joining us for walmart usa chief bill simon. Welcome to the program, good to see you. I know you are an opponent of amazon. You dont like them, you think they are predatory prices and you dont like jeff bezos you think he is running the show and not doing the right thing so i take it you would not be buying amazon stock at 1010 this morning. Absolutely not, that is crazy. There is only one direction for that stock to go and Everybody Knows that. I cant tell you when it will happen but it is inevitable. Stuart why . If you look at the details, the last release, you can see it. The Retail Business was up 17 which was robust. The growth they got from the rest of the company came from web services and other areas but if you take 17 growth and weve in whole foods, the acquisition they are hoping to make, that will lower their overall sales increase to 11 or 12 and they will still be losing money. They are running a massive enterprise, their growth rate will slow and they are losing money. At some point investors have to wake up to the fact that it is a house of cards that only has one direction. Stuart on the other side of the fence you say growth has to slow. They look wellpositioned to keep their dominance of the Retail Industry. Half of all searches go to amazon first. 55 . Stuart you go to amazon first and you are discounting their Cloud Business which is very profitable and they are leaders of the field. Not discounting at all. They made 900 on Amazon Web Services and lost 300 million in retail so they are using web services to fund this aggressive approach to pricing and expansion and retail and the growth will have to slow by the law of large numbers and walmart is a great example at 500 billion, walmart in order to grow 10 would have to grow 50 billion in a year so their ability to keep putting up these massive numbers are going to run into difficulties the bigger they get. Stuart we have seen no bounce back, we have an open 40 odd minutes but amazon stock has stayed down 35, 3. 5 and you are on board with that. We will get your views on amazon on another occasion. Check this out, that is a rare shark, the mega mouth shark off the coast of indonesia. Since being discovered in 1970s there have only been 60 sightings. They grow to about 17 feet long, are located mostly near japan and taiwan. That was spotted off indonesia. Dont call me that. Donald trump heading to new york in the next hour, all about wiping out the violent street gang ms 13. Congressman kevin brady writes the tax code. I will challenge him after the Health Reform debacle, why should we have any confidence they can get taxes cut . Mister brady joins us and you are watching the second hour of varney and company. Stuart steady as she goes, down 21 points on the dow industrials, well above the 1700. Better take a look at snap. As of next monday early investors will be able to sell their shares. If they did sell that stock would go down further. It has hit five record lows this week alone. Check this out, goodyear, the tire guys, biggest drop in nearly a year, off 91 2 , they have weak sales in america, europe, africa and the middle east, that is pretty much around the world. Republican congressman mo brooks says senator Mitch Mcconnell, majority leader, should step down. Roll tape. At this point if i were Mitch Mcconnell i would resign and let somebody else provide the kind of leadership that is necessary to address healthcare now, tax reform next, infrastructure next and on down the list but we cannot continue to have the kind of failures we have had in the United States senate. Stuart congressman louis gohmert, republican texas, frequent guest on the show. This is a flat out war between two wings of the Republican Party. Until it is settled there will be nothing done in congress. With that is my opinion. What say you . I dont think it is a war between two factions of the Republican Party. It is a war between people who repeatedly made a promise that they would repeal obamacare and their own conscience them pushing them to keep their word and then Something Else to lie about it. Stuart it is a war. It is outrageous. I pray for senator mccain, for his health, his full recovery from the cancer but it doesnt give him the right to make people suffer more under the current aca. It is incredible. Every one of those senators except Susan Collins said we will repeal obamacare. For heavens sake, that bill, i have been here 12 years, seems like an eternity. I have never heard vv body contacting the other party in congress and saying you got to promise us because we can only pass this bill if you promise us you wont pass it. This never happened before that i have ever heard of. Stuart a clearcut divide. Intends division with the Republican Party. I put it to you again, until you bridge that gap, until you bridge it, bring peace to the Republican Party, you cannot get tax cuts done. It is a matter of people keeping there would, pushing people at war with some of is the want to keep our word pushing them to keep their word. If they keep their word. Stuart do you agree with me as things stand with the Republican Party we are not going to get taxes cut . We had a very Good Conference this morning in the house. We have done some good things and i hope it is good news for the economy at we are giving up on the border adjustment tax. I was talking to people who dont see that is helping, it is going to hurt. Great news they will abandon that. Isaac we can get tax reform done now that that is out but i keep pushing the president , dont like ryan and mcconnell talk you up to 20 , 24 , stay at 15. We undercut china, we bring all these manufacturing jobs back, my friends art laugher said after they got that 30 tax cut, they had 12 growth after that. Can you imagine getting back to that. It would be awesome but we can do it now that we have the bat out of the way and go with a big tax cuts, that will be great news. Emma kratz will demagogue you to death. It will be giveaways to the rich and republicans the cbo score will kill us because they will not add this new stream of tax money coming in but he is right, we just need to put a provision in the bill, cbo doesnt count on this, they cant find their rear end with both hands. We are moving forward because this will jumpstart the economy and it is not going to stop as long as these tax cuts are in place due to tax cuts, watch people make more money, it will be awesome but we cant let ourselves get bogged down and cant walk away from the repeal of obamacare. People are really hurting and we owe it to not to have lied about repealing obamacare. God bless trump, trump is hanging in there. If we had a lesser president i would say we have no hope but trump is not going to give up and im grateful he is there. Stuart i got to go. Im wound up because we are going to get this done. Stuart democrats celebrating on the republican fail on obamacare. Chuck schumer and Elizabeth Warren taking a selfy to commemorate the occasion. We are all over that and more after this. Copd makes it hard to breathe. So to breathe better, i go with anoro. Go your own way copd tries to say, go this way. I say, ill go my own way with anoro. Go your own way oncedaily anoro contains two medicines called bronchodilators, that Work Together to significantly improve lung function all day and all night. Anoro is not for asthma. It contains a type of medicine that increases risk of death in people with asthma. The risk is unknown in copd. Anoro wont replace rescue inhalers for sudden symptoms and should not be used more than once a day. Tell your doctor if you have a heart condition, high blood pressure, glaucoma, prostate, bladder, or urinary problems. These may worsen with anoro. Call your doctor if you have worsened breathing, chest pain, mouth or tongue swelling, problems urinating, vision changes, or eye pain while taking anoro. Ask your doctor about anoro. Go your own way get your first prescription free at anoro. Com. Stuart it was a total fail. The gop failed totally to pass the skinny vote on the Obamacare Repealing democrats are celebrating lose tammy bruce is with us. All the celebrations going on, what do you make of this . They are salivating too really. They should not be selling at all. Last time we had an obamacare victory for democrats was in 2010. In that midterm the democrats lost the troll of the house giving obama and the democrats the worst losses in 62 years. Stuart dont you think it could be the republicans who suffer huge losses in the next year . This is the difference. It is not about democrats versus republicans. The question American Voters and trumpeters are asking is who is the problem . Democrats have always been honest about being loses and not be in touch with the American People that the republicans have lied to people according to eric cantor to get elected. That is what the American Voter has to address. Stuart kevin brady writes the tax code, he is next on this program after this. Hello, this is adt, is everything ok . I could hear crackling in the walls, and my mind went totally blank. All i remember saying was, my boyfriends beating me and she took it from there. When a fire is going on, youre running around, youre not thinking clearly, so they called the Fire Department for us. And all of this occurred in four minutes or less. Within five minutes. I am absolutely grateful we all made it out safely. Its kind of one of those things you cant even. You cant even thank somebody. People you dont know actually care about you. To protect what you love, call 1800adtcares stuart i will call this a stable market with moderate loss down 17 points, 21 7 is where we are but for look at the 5 tech stocks, facebook is up, amazon, microsoft and apple are down. Mixed picture from big tech and amazon down 31 4 . Mattel is down big, fewer people buying barbie dolls and fisherprice toys, 8 drop. Look at starbucks taking its biggest hit in five years, down 7 . They lowered their forecasts for the rest of the year. They will take your stock to the cleaners. Check the share price of fiat chrysler. The epa gave him the goahead to sell new diesel vehicles blues not much impact, 1. 5 higher for the stock. First solar, demand for solar panels up, giving an upbeat forecast, Deutsche Bank raised its forecast up a solid 9 . We expect more details of the gop tax reform plan today. We know the border adjustment tax is out. Our next guest is one of the people who writes the tax code, he does write it loses name is kevin brady and he is chair of the taxwriting committee and the congressman joins us now. Welcome back to the program. Good to see you on a particularly important day. Why should we have any confidence that you can get tax reform done or even a minor League Tax Cut done when you cant do anything about obamacare . Last nights action was awfully disappointing. Healthcare is still clashing around. I am always hopeful the senate can give us direction on what the next steps are but i can tell you this on tax reform, this joint statement from Donald Trumps team, when we are unified now behind a bold tax reform plan, there is an urgency to get this done, and more excitement and optimism in protax reform advocates that we can get this done. Stuart that is not the way it seems outside the beltway. There is great disappointment about last night. I agree with you on the healthcare aspect and the tax reform areas there is a different sense. Stuart is there real agreement on both sides of the republican parties that we need to cut, we will cut individual tax rates and Corporate Tax rates . It is. I have to tell you we have heard these words before. We must cut taxes, we have heard this approach. I am starting to drone on like this but we have heard this before. It has been 31 years, we heard this for a long time but what is different now is we have a republican house, senate and white house willing to lead, we have key unified plans Going Forward, and no question about it, we have to work through these issues in the white house and senate and im encouraged by the seriousness of the purpose. Stuart if there is no border tax, how to you pay for the tax cuts for individuals and business . How do you pay for it, the border adjustability is gone. I made the case, it needs to be set aside now so we can focus on a unified plan. We have more work to do as a result for the local business. It balances within the budget over its we 10 years, it continues to be our goal because businesses tell us, dont give us temporary. Need to count on this for longterm investment decisions, that is where we are headed. Stuart if you are talking about paying for these cuts, we are told donald trump is at least considering higher taxes on upper income people and had the suggestion from steve bannon that we could have a 40 tax rate on people making 5 million or more. And a pax decrease on others. Of the trump tax team, we are going to low taxes for individuals and create tax relief for every income level in my view and that is the approach we continue to go down. The Tax Policy Center listen to everything donald trump has said and all the statements about taxes, they conclude of all those things were put into place, people making 300,000 a year would end up pay more in taxes. Do you take issue with that . And and simplify the code so people can actually. Thank you for appearing with us, you are busy but we appreciate you being here. Next, white house advisor steve bannon has reset moment ago, reportedly pushing for 44 top tax rate on high income earners, 5 million or more and steve bannon is suggesting a 44 top tax rate on you. Eric schonberg is a patriotic millionaire and private investor and has been on this program before urging higher taxes on individuals. You must be a happy guy this morning. A lot of ideas come out of the white house and very few get any traction. I would love it if the white house proposed a higher rate on income is high income individuals. You were not expecting it, you were expecting a Republican Administration to float the idea, you thought this was something coming for the democrats. In 2000 and i observed opportunities for cooperation from the progressives left and the tea party right. There was a survey done, they had a favorable view of the tea party and 50 thought the taxes should be higher in people making more than 1 million a year so i am not shocked at that. What is shocking is despite running clearly on a platform, people who have been screwed are the middle class and the wealthy have been making out like bandits, we see the policies they pursue like on health care which was fundamentally a major tax cut for the rich it never happened. Stuart are you a trump supported . I am not a trump supported. Our unity party supported . I agree with the tea party and the sense the wealthy have manipulated the system in this country to their benefit for a long period of time, the problem i have with the tea party is i agree concentrations of governmental power are bad. What i disagree with them on is that the private sector doesnt have these concentrations of power as well. We need the government to balance the power of these large corporations. Stuart do you want to see higher taxes on high income earners . Absolutely. We are running a massive fiscal deficit in this country. The notion that the most important thing is cutting taxes and reducing them on everybody, and where is the money going to come from. On upper income people, you pretty much got 50 . Im totally okay with this. Currently, currently the federal government, if you look at the actual effect of tax rates on wealthy individuals. Stuart marginal rate, looking at the marginal rate is the important rate because that is what you consider when making a move up or working more overtime or whatever you are doing. Are you retired . I do a variety of things which i do not have a fulltime job. Stuart you dont have income. You dont have a high income. I have a high income but not from a fulltime job. Stuart where is the income from . Investments. Stuart you pay Capital Gains. Income taxes. You are proposing higher taxes on people earning good money but not higher taxes on people earning investments. And apparent contradiction. This is an element of an ongoing discussion, i making this point, you make a good income from doing this show. You pay a higher rate on the income you make doing this shows and i pay on the Capital Gains i received for sitting back and doing a and i am a strong advocate of equalizing. They talk about closing loopholes but they never talk about the biggest loophole the rich take advantage of which are lower rates on Investment Income and income you receive for actually working for a living. Why should a plumber or a teacher be paid a higher tax rate than a private investor like myself . I dont it is right. Stuart if you raise the Capital Gains tax rate, you put it right up there, if you treat it as personal income, suppose you have a top rate of Capital Gains on 39. 6 where it is now you will get far fewer Capital Gains. People will not take their profits. Stuart i served in the reagan administration. People talk a lot. Congressman talk a lot about looking to the tax reform 1986, what a great reform that is. That reform equalized rates between Investment Income and labor income. It was a very poor and element of that agreement. Stuart the Clinton Administration brought Capital Gains tax rate down. I agree it is one of the problems i had. Stuart you did that. Again, this is where i do agree with the tea party. There is no this has been a joint endeavor between republicans and democrats benefiting the wealthy in this country. I will not disagree with one that. Stuart it is a pleasure to have you back with us. I dont blame you for having a big smile on your face when a Republican Administration talks about higher taxes on the wealthy i am shocked. Thanks again. The growth agenda. Can i say stalled in dc . If republicans cant agree on repealing obamacare, or past tax cuts, can donald trump deliver on building of the wall . We are on it. Happening today the president goes to long island, new york, fighting violent gang ms 13. The president again leaving the swamp. Stranger to you and me i feel it coming in the night make of all vain a, obamacare failed. Why should i have any confidence you can get us tax cuts when we couldnt get anything done on obamacare. A fair question but there is a fair answer. You saw the big 6, House Republicans, senate republicans, the white house, rollout yesterday or the day before yesterday, a basic set of principles everybody agrees on, the fat is gone. We are all on the same page. Stuart look at this, tobacco stocks way down, big drop, every single one of them. The fda announced a new regulatory plan. They want cigarette makers to lower nicotine to nonaddictive levels. They are also considering restrictions on menthol and other flavors in tobacco products, all of them down. Ultra is down 14 . The google of china, basically a search engine. 18 months high, rosy outlook, they expect revenue to rise 30 next quarter. How about amazon . We have it in the bottom corner of the screen. Doesnt look like many people if any are buying on the dip, the dip is still in place, 1009 is the price of amazon stock right now. Next guest, what he is calling is a smart border wall, congressman william heard once the wall to be hightech including sensors, radar drones and a lot more. Congressman heard joined us now, republican from texas. How are we going to build a wall, hightech or otherwise if we cant get the Republican Party to agree on getting rid of obamacare . These are two very different things. Everybody recognizes the importance of border security. I think the American People have been frustrated because it is 2017 and our border should be secured. We should have a smart wall that utilizes all Top Technology in order to detect threats on the border. Stuart you make a good case. A substantial problem in the Republican Party, we dont need a wall want to pay for it. There is that feeling in the Republican Party. On a physical wall, i believe a fourth century solution to a 21stcentury problem is ridiculous. 24. 5 million a mile is what physical wall will cost. A smart wall, digital wall you can get for under 500,000 a mile, 24 million difference. There is acceptance from republicans and democrats on the important of border security, now we talk about taxes. I spent 9 years as an undercover officer in the cia, shaking bad guys across the world and we need to increase intelligence on the criminal organizations south of the border. These are things we should be doing that makes this fight more efficient and costeffective. Stuart very interesting. One more point. I look at economic numbers. I see texass economy up nearly 4 in the First Quarter but california is up just 0. 1 . You can tell us it is about taxes, but what about energy . That is a strong point for texas too. It absolutely is. When you look at the 4 growth, a lot of that was fueled by mining, especially a fan that is used in the Energy Industry being mind in southwest texas with new fines which everyone knows there is the Delaware Basin which is a gigantic reserve and something being focused on in far west texas. This is something fueling that and folks coming from california helping to fuel this as well. Stuart great interview and appreciate you being here. Now this. We heard it all before. We must get health care. We should cut taxes. Build that border wall. Sounds like a broken record. My take on the words being used. The president is somebody who can externally with the American People. He cut out the middleman through his social media platform and sometimes the middleman, the Mainstream Media doesnt like that. Because of his social media platform which reaches 100 million americans he conveys a message at the same time to the billionaire ceo in the ivory tower with 20 people working his social media platform, he communicates at the same time to the plumber on the job who is checking his phone between his work and stayathome mom. It is a powerful democratization of information. Stuart Kellyanne Conway defending Donald Trumps tweeting. Many of you wrote in on that subject. This came in from kate. He needs to be sure the what he tweets is important and not just whining about the media or attacking his own people. I do not need to know the mans every possible grievance. Sue says the tweets are the best thing since sliced bread but only the opposition doesnt think so. I sent trump to dc to drain the swamp. Tweet on. We got to tone this done a bit. The president ial tweets are getting in the way of the legislative growth agenda and that is not good. They are a distraction and the president of safetynets public opinion. He has a base but it is peeling off. People are getting tired of the distractions. They want to focus on helping with their jobs and wallets and you dont go after members of congress right before crucial vote as he tweeted against Lisa Murkowski and has been going after. Stuart it is a selfinflicted wound. The president wants something done on obamacare and then tweets right before the vote last night to Lisa Murkowski he let the country down. She is a republican. Needs support to get something done. When tweets get in the way and establish a feeling of chaos in the white house you have a problem. He has the agenda, he has it right, the Economic Growth platform. Stick with that, he doesnt need to work out his political vendettas via tweets. The first viewer was right. Stuart it is not going to go away. We will be back. One laugh, and hello sensitive bladder. Ring a bell . Then you have to try always discreet. I didnt think protection this thin could work. But the super absorbent core turns liquid to gel. For incredible protection. Snap so its out of sight. And out of mind. Always discreet. For bladder leaks. Ive discovered incredible bladder leak underwear that hugs every curve. Cant tell im wearing it, can you . Always discreet underwear. For bladder leaks. Stuart viewers of this program have seen it countless politicis interviewed on the president s growth program. They use the same words over and over; we must do health care reform, we should cut taxes, we ought to to wild build the wall. Its like a broken record. All that but we dont actually do it, do we . Thats the reality thats staring us in the face this morning. Total failure to do anything on obamacare. With democrats, oh, it is completely different. It took them a year to pass obamacare, and there was intense division. It cost them two elections, but they got it done. So now the republicans move on to tax cuts. Bedrock republican policy. Will we get anything . Of course, we should. Of course, we ought to. And, yes, we must. But after the obamacare debacle, faith is dwindling. Lets be direct. If the gop keeps going like this and the president cant stop with the selfinflicted wounds, then the democrats win the house, the president will face impeachment, and in 2020 the democrats will take the white house and complete what used to be the unthinkable reversal of political power. The third hour of Varney Company is about to begin. Stuart i know this. You all think that i dont know this. I do know it, it is the beastie boys, get it together. I think thats a very appropriate lyric, right . [laughter] in particular. Check that big board, were down five points, thats it. Were narrowing the loss. Still plenty the red, but plenty of red, 21,791. Thats money, okay . We live on politics here. The gop failed totally to deliver Health Reform. Well, now theyre working on tax cuts. Here with us now, Fox News Contributor pete hegseth, foremost trump supporter. Why should i have any faith in the Republican Party getting anything done on tax cuts when they failed so miserably on obamacare . You probably shouldnt. This is at the feet of senate republicans, this is at feet of Mitch Mcconnell, this is at the feet of john mccain, of people who yelled and screamed for years about a full repeal of obamacare, then when given a chance to vote on it, some reversed themselves, and they couldnt even pass a removal of the individual mandate. Stuart right. How can you be for forcing people to buy something . The fact that they cant even get a skinny repeal passed lays at their feet. If they lose majorities, its their fault be, not the president s. Stuart youre a principal trump supporter. You dont lay any of the blame on President Trump. Remember, his tweets have created chaos in the white house. Tell me why a tweet should prevent a senator from voting the right way on something theyve been standing up for forever. Stuart right before the vote last night, he tweeted about alaska senator Lisa Murkowski and said she was letting the country down, right before he needed her because they knew how she was going to vote. Stuart why did he have to tweet it out at that why not . Clearly, their constituents arent putting enough pressure on them, the rnc isnt Lisa Murkowskis been voting with democrats for a long time, her and Susan Collins. We know we need them in order to get to 50, and they voted once the right way, but otherwise where where have they been . What do you stand for . Stuart okay. Were clearly in agreement about the Division Within the Republican Party and the threat that it poses to the future. How about the white house . What do you make of Communications Director Anthony Scaramucci . He went on a tirade against another white house staffer. It was obscene. Youre in support of this administration. Yeah. Listen, salty language gets used, its big boy stuart this is the presidency of the United States of america. Im a newlyminted american, do you think i came aboard for this . No one listens to every single private conversation you and i have, and i bet we use salty language as well [laughter] this is a guy trying to the take back the white house from people who are leaking to hurt president. Hes a loyalist, hes bringing in lowallists, and theyre loyalists, and theyre closing rankings. He made a phone call to Anthony Scaramucci to a reporter saying who did you get that from . Whos leaking to you all information . Because the leaks have been very detrimental to this white house. The swamp is so swampy that there is virtue in the process of fighting it. I know people want to say just move on to your agenda, you cant get your agenda done if your staff is undermining you, leaks are happening, the media is against you. Hes got to fight an on all of these front, and republicans are not doing enough to advance a real agenda. Stuart do you think well ever get used to this president . No. Stuart his tone, his style, his demeanor, his betweens, his personal insults against people. Will we get used to . Let me back off a little no. Stuart ive lived in america for 40 years, ive never seen anything like this, never. Fair enough, but weve never seen a moment like this in america either where america required and needed a fighter who was willing to say and do the things that no ones been willing to do. Washington has worked a certain way for 40 years, and thats why we have 20 trillion in debt. This guy is a disruptive force. This guy says what he means and means what he says. And hes bringing in someone like Anthony Scaramucci whos going to swing just like he does as to opposed to sean spicer or and reince priebus. Theyre nine people, but are they really theyre fine people, but are they going to go to the mat for this president . Hes fighting for this country. If thats whats at stake, then why are with we apologizing and gladhanding with democrats on the senate floor like john mccain . Republicans and conservatives should be furious about that. Were not supporting our president stuart just dont disrupt my tax cut, hegseth. [laughter] yes, im in for it. Stuart appreciate it. Thank you very much, sir. All right, i want to move on to amazon, okay . The profit report last night showed a 77 drop in profits compared to last year. What the company is doing is pouring its money back into growing its business. Here is burt flickinger, strategic Resource Groups managing director. Obvious question you cover the Retail Industry from top to bottom and the online guys as well. Yes. Stuart i see amazon at 1,013, down 32, i dont see people buying this dip yet. Would you . Yes, stuart. Stuart you would . Power to prosper. We recommended amazon at 500 a share, were recommending it today, its going up to 1,150. Stuart hold on, what price . 1,150 a share. Stuart so you would buy it right now, 1,013. Theyre accelerating the retail ice age. Its going to be amazon armageddon across the retail sector. Amazons going to win. Its going to create devastation economically. Public sector, private sector and across retail bricks and mortar and shopping centers. Regrettably, amazon shareholders win while america may lose. Stuart thats pretty strong stuff, flickinger. [laughter] we like people when say, yes, buy it now because its going here. We like that. You are also saying that amazon should be reined in by the government because its too powerful, and americas suffering. How do we rein them in . Stuart, ive worked with the federal trade commission for nearly two decades. Every republican and democratic chairperson and the commissioners, there hasnt been an ftc antitrust examination in 20 years, anticompetitive practices, red story pricing. Principled story pricing. Walmart did it in the 20th century, amazon may be doing it now. Its time to investigate. Level Playing Field for all retailers, all suppliers. Consumers can win rather than, as you said, let amazon invest now, wipe out the big part of retail and raise prices later. Stuart if the administration announced a big investigation of amazon for predatory pricing, would you then sell the stock . No, i would not, because jeff bezos, amazons brilliant founder and one of the great retail leaders, owns the Washington Post and has tremendous influence across washington and the swamp as you just referenced very well. Stuart thats pretty good. Burt flickinger, thank you very much, indeed. Thank you. Stuart lets see you buy at 1,012. [laughter] thanks, burt. Quick headline, again on amazon. Theyre holding a competition in japan. Sixteen teams competing to build a robot that can complete the final stage of shipping an order; picking up differentlyshaped objects and putting them in boxes ready for shipping. Currently, that job can only be done by humans. Wait until amazon gets a handle on that one. Much more ahead in this hour. Well be joined by National Reviews john fund. The he says if President Trump wants to win on health care, he should end the congressional exemption. Obamacare. Im sure lots of people agree with that one. This is all happening as House Republicans move on to tax reform, but after the health care debacle, why should we believe they can get anything done . Stay right there, all will be revealed. Potsch you each drive a ford pickup, right . in unison russ, leland, gary yes. Gary i have a ford f150. Michael ive always been a ford guy. Potsch then i have a real treat for you today. Michael awesome. Potsch im going to show you a next generation pickup. Michael lets do this. Potsch this new truck now has a cornerstep built right into the bumper. Gary super cool. Potsch the bed is made of highstrength steel, which is less susceptible to punctures than aluminum. Jim aluminum is great for a lot of things, but maybe not the bed of a truck. Potsch and best of all, this new truck is actually gary all laughing oh my. Potsch the current chevy silverado. Gary im speechless. Gary this puts my ford truck to shame. James ill tell you, i might be a chevy guy now. laughing were unified now behind a bold tax reform plan are. Secondly, there is an urgency to get this done this year. And then finally, the president s fully committed, behind this approach. Stuart theres a great deal of disappointment about last night well, no, i look, i agree with you on the health care aspect of this. On the tax reform area though, theres a difference stuart can i conclude that youre not going to pay for the tax cuts for individuals and business . No, you no, do not conclude that because, as you know, stuart, a priority is permanent. Stuart all right. That was congressman kevin brady last hour, the top guy on the taxwriting committee. He also made news when i asked him about Steve Bannons reported proposal to raise the top tax rate to 44 . Roll that tape. Is it possible that we will have tax increases on some people as a way of paying for tax decreases on others . No. To be as clear as i can be, no. Stuart here to react, herb london of the London Center for policy research. That was a categorical no to raising taxes on top income earners. You must be very happy. Well, im not very happy. In fact, i think that the bannon proposal, even though its obviously not going anywhere, is pretty sensible. Stuart really . Yeah, i do. 42 , maybe 43 for the top income earners. Doesnt make that much difference to them and helps to offset the decreases for the middle class. Stuart i could go after you on this one of course you can. [laughter] stuart since when have we got serious Economic Growth by taxing people, successful people more . No. You dont. I think its largely symbolic. Youve got to do the real tax burden in the United States is on the middle class. Thats where the taxes have to be reduced. If you really want to see Economic Growth in the United States, thats where you do it. Its not going to have that much of an effect on a tiny portion of the population are. 1 of the population to today pays about 45 of the taxes today. If they pay 46 , its not going to make that much of a difference. Its the middle class that has to be addressed. Stuart for accept years, the republicans for seven years, the republicans have been saying were going to repeal obama withcare. It was a total failure last night. Why should i believe that they will actually cut anybodys taxes in the very near future . Stuart, ive gone from believer to agnostic. Im no longer confident that the Republican Party can do anything. Look, i think if you cant even get a skinny repeal, then it seems to me that the republicans are in deep trouble. Stuart well, theyre so divided. Well, absolutely divided and shouldnt be divided. They need leadership from the white house, they need leadership in the senate. Theyre not getting it. Stuart are you disappointed with President Trump and his i am disappointed. Im disappointed by the white house, by the leadership that exists in the house, and im disappointed with mcconnell in the senate. Stuart there you have it. Theres more to come, hold on a second [laughter] gdp, the state of the economy, in the march sorry, the apriljune quarter we were expanding as a pretty good rate, 2. 6 . You happy with that . No. Because i think we can go up to 3. 5 if you got health care and tax reform. Theres no doubt that the economy is prepared to engage in a tax a takeoff. This is a takeoff, all you need is this shot of adrenaline. If the congress would act appropriately, youre going to see dramatic changes that would occur in the american economy. Unfortunately, weve got a congress that is engaged in stasis. Stuart so where to for the economy . If were growing nicely in the Second Quarter but we dont get health care reform, were not going to get it, and we dont get Even Minor League tax cuts, where to for the economy . Were not going to get 3 , are we . Youre not going to get 3 . Yellen is already making it clear that shes not going to increase the Interest Rates because she recognizes this problem. This is a problem, and it is a problem when you have this stagnant Economic Growth that has occurred in the socalled recovery. And we are going through this similar kind of stagnation. But as i said, when you consider corporate profits, this country is prepared go through a growth phase. But the growth phase will only occur if the Congress Acts appropriately. Stuart you know, youve been on this program consistently for about six months, maybe even a year now. Every time ive talked to you youve had a smile on your face, youve been upbeat, optimistic and enthusiastic but not today. Its true. Stuart last night got to you, didnt it . It did, indeed. And im very disappointed. I used the expression of going from believer, and i was here on your program saying we will get reform. Now im agnostic. Ive got to see evidence that the republicans can act in an appropriate matter. Stuart agnostic herb loan bonn, thanks for joining london, thanks for joining us. [laughter] youll be back. Thank you. Stuart all right. Im going to check the price of oil because this is a fresh twomonth high. Getting awfully close to 50 a barrel, 49. 70, to be precise. Overnight gas prices have started to go up a penny. Stuart yeah, but its the trend oh, okay. Stuart 2. 29, is the price. However, were still at a 12year low on gas prices for the overall month of july. Now this, breaking news. Reuters reporting north korea appear to have fired a missile. The missile may have landed in japans exclusive economic zone. Im sure that thats out to sea. Well keep you posted on this as the story develops. No impact on the stock market from that development which is just coming into us now. Individual stocks, and are they moving . Yes, they are. Starbucks lowered its forecast for the rest of the year. It was down 7 , now its down 8. 5 . By the way, its also closing those teavana stores, tea shops this mall, closing them all by spring of next year. Look at mattel, lower profits and weak sales from barbie and fisher price toys. Its down 8. 5 . Tesla, hacked for the second time. Chinese computer experts hacked into the tesla model x. They were able to engage the brakes, and wait million you hear what else they were until you hear what else they were able to do. Aaron judge of the new york yankees chipped a tooth while celebrating a gamewinning home run last night. It was the 11th inning of teams 65 victory over the tampa bay rays. You get chipped teeth and all on Varney Company. Bet you cant wait for more. [laughter] today, were out here with some big news about type 2 diabetes. You have type 2 diabetes, right . Yes. So let me ask you this. How does diabetes affect your heart . It doesnt, does it . Actually, it does. Type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. And with Heart Disease, your risk is even higher. You didnt know that. No. Yeah. But, wait, theres good news for adults who have type 2 diabetes and Heart Disease. Jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. Jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and Heart Disease and lower your a1c. Jardiance can cause serious side effects including dehydration. This may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. Ketoacidosis is a serious side effect that may be fatal. Symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. Stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. Symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. Do not take jardiance if you are on dialysis or have severe kidney problems. Other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. Tell your doctor about all the medicines you take and if you have any medical conditions. So now that you know all that, what do you think . That its time to think about jardiance. Ask your doctor about jardiance. And get to the heart of what matters. Hey, im the internet i know a bunch of people who would love that. The internet loves what youre doing. So build a better website in under an hour with. Gocentral from godaddy. The internet is waiting. Start for free today at godaddy. Thats why at comcast were continuing to make4 7. Our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Stuart nasa is one step closer to making a supersonic plane that could cut your flight time in half. Its going to be tested at Kennedy Space center next month. Bad news for People Living near it, theyre going to hear dozens of sonic booms every week, thats the loud bang you hear when a plane breaks the sound barrier. Theyre trying to figure out how to cut that down. Going to take a lot of trial and error, but a good looking plane. A driver captured this rare megamouth shark spotted off the coast of indonesia. Only 60 megamouths have been seen since they were discovered in 1976. Theyre so rare, scientists dont know much about them, but they grow to 17 feet long, theyre located mostly in the waters near japan and taiwan, they dont pose a threat to people, but they have 50 rows of teeth. Thats correct. Stuart rolls royce unveiling its grandest car ever, the phantom 8, updated version of the rolls royce classic phantom. These have been driven by elvis well, the classic phantoms by elvis, Queen Elizabeth and 50 cent, to name a few. The automaker says its the most technologically advanced rolls royce ever. All right, heres the key thing, how much . 440,000. Chinese hackers got into teslas model x for the second year in a row. They turned on the brakes, opened the closed the doors, they blinked the lights, they played the radio. Hackers got in by sending malware to the cars web browser. Tesla says actively, it actively encouragings this kind of research to help improve the car. Its supposed to be a friendly hack. All right. Were going to update a story we brought you yesterday. That sketch of the new york city skyline by President Trump up for auction, sold. It was auctioned off thursday. The price . 29,184. The bids started at 9,000. It drew a total of 11 bids, sold for 29,000. John fund says if President Trump wants to the win on health care, he should end congressional exemption from obamacare. We also have a stock market bear, major bear actually. He says the gop trump tax plan will not go through as proposed. Maybe he thinks that will precipitate the great stock market selloff. But weve got it all for you next on Varney Company. [vo] progress is seizing the moment. Your summer moment awaits you now that the summer of audi sales event is here. Audi will cover your first months lease payment on select models during the summer of audi sales event. Stuart yes, life is very short. Stevie wonder, we can work it out. Check that big board, pretty stable with the has of, what, 17 points, right around 21,780. Mow this, retailers celebrating as republicans drop the border tax, but theyve still got amazon to deal with. Come on in, matt shea, National Retail ped ration ceo. Congratulations, matt, you did win over the border tax. Lets get that out of the way. Now you face amazon. Are you retail guys, are you going to mount a challenge to amazon, try to rein it in . Well, stuart, first, i think we should lets go back to the tax issue for a minute. We havent won. Were certainly stuart well, its off the table. Kevin brady told me this morning, literally an hour ago, the border tax is off the table. So come on, you won, lets move on. Are you going to try, are you youre a powerful guy. Are you going to try to reign in amazon . Rein in amazon . We should all celebrate when we get tax reform. Thats for the economy. The amazon question, this is for regulator ors to discuss and debate and for legislators to discuss stuart oh, matt shea, matt shea, i know how powerful you are. I know youre a very powerful lobbyist. Dont tell me, sir, that you have nothing to do with any move against amazon on predatory pricing. I am sure youre mounting a challenge, arent you . Were not mounting a challenge, and were going to let this play itself out. If the regulatory authorities want to pursue something, they should. But i think the point here is the economy is changing dramatically. Its a very disruptive environment for retailers and many businesses, and thats why you saw amazon trying to figure out how to go the last mile in produce, trying to buy whole foods. Thats why youve seen walmart making big moves to acquire knowledge and technology in the internet space. And i think thats what youre seeing happening across the entire industry. So before we jump to conclusions about what is and isnt appropriate in terms of business practices, we have to remember that whats driving all this is a desire to reach the consumers the way they want to be reached. And as long as things get better for consumers, its going to be hard to prove anythings wrong because youre seeing wall a mart, walmart did this, and people accused walmart of things and other big box retailers over the years. And you know what . Lots of people thrived in that environment, and theres a way for everybody to survive and be sustained. I think weve got to give this more time to play itself out. Stuart would you object or do you object to amazons proposed purchase of whole foods . We havent taken a position on that. I dont think its our place to take a position on what a private company is doing with regard to ordering its business the way it thinks is most effective. So we wouldnt take a position on that any more than we took the position on walmart and jet. Com or the moves that any number of other retailers have taken to make themselves more competitive in the marketplace. And ultimately, again, we should think about what this is all about. Were trying to reach and serve consumers with the lowest possible prices, the best service, the best selection, the best quality of goods. That kind of progress is what america has always been about. So anything that gets in the way of that, i think, we ought to to all question why were going to challenge something thats good for consumers. Stuart amazon is not a member of the National Retail federation, is it . They are members. Stuart they are . Whole foods and walmart and target and many, many, many others. We have thousands of members across the retail spectrum from mcdonalds to kroger to discount scores, department stores. So we reflect the Retail Industry. Stuart yeah, you do. Broad, diverse and inclusive. Stuart i think youre about as divided an organization as the Republican Party in congress [laughter] but thats a nasty thing to say. I think you run a great organization, sir, i really do. And congratulations on winning on border tax. Thanks. Stuart matt, we will see you again soon. Thank, stuart. Stuart here now, major bear. That gentleman on the righthand side of your screen . This guy has for a long time a crash is coming on the stock market. Or at least a very significant decline. His name is dan schafer, hes president and ceo of schafer asset management. Now, i believe youre saying that the tax cuts will not go through. Divided Republican Party, hopeless congress, not going to happen. Do you think that is the news item that sets off a Big Stock Market selloff . Yes, i do. I believe that the stock market is at levels that are predicting that this tax program will go through and save money and people will be able to spend. I dont think its going to happen. Of just look whats happening with the obamacare and the divided, like you were just talking about whats going on in washington. I just dont think that this tax program is going to get through based on the senate and the house trying to get things done for trump. Of theyre just trying to just block him in everything hes trying to do. And, again, the stock market is all the way up to such levels that are predicting that this is going to happen. So if it doesnt happen or it doesnt happen in the form that theyre predicting, this is going to be a disaster. And remember, my 18month target 18 months ago was a high in july for the equity markets, and bond yields should start to collapse down to 1. 5 on the tenyear based on all this stuart okay. Problems going on in washington. Stuart well, look, you saw the news this morning for the Second Quarter of the year, april through june. An annualized growth rate of 2. 6 . I mean, the economy really is picking up some steam. How does that fit into your calculations . Because we got that growth rate without obamacare reform, without tax cuts. Well, no. First of all, that number is going to probably be adjusted just like the previous quarter was adjusted down. A hot of that was based off of a lot of that was bassed after of consumer spending, furniture and other items. But Consumer Debt also went up to high levels too, so its not from wage growth, its not from the economy growing, its from people borrowing money to spend to buy goods. And also in that number is manufacturers cut back because the wholesalers are not holding as much inventory. Stuart okay. Theyre expecting a recession. Stuart lets get right at it, dan thats what i see coming. Stuart youve been predicting a Big Stock Market selloff. End this interview by telling us how big, what level do we go down to, and when does the selloff startsome go. Okay. Based on my indicatorsings were looking at july will be the peak in the equity markets. Im looking for 3,000 points down on the dow to get it started. Thats my point. When we hit the 3,000 down from where we are now, then we might get a little bounce, but then i see over the next two years that the market will go into a similar slide from 1973 and 1974. And, again, a lot of this is based on whats going on in washington being against trump. Stuart all right. We heard it. Dan schafer, thanks for being with us again. We appreciate it, sir, thank you very much. Thanks, stuart. Stuart i want to bring many john fund. Hes got an idea or two about how to get obamacare fixed and done with. Your idea let me paraphrase this, see if i can get it right. Your idea is that President Trump should tell congress, hey, your exemption from obamacare is gone. Youre in, live with it. When obamacare passed, congress and its staff were treated as everybody else was. But once obamacare was implemented, congress and the staff went to president obama and said give us an exemption. He picked up his phone, he called the office of Personnel Management which handles federal employees and said declare congress a small business, under 50 employees, for purposes of the district of Columbia Exchange that its in. That allows it to congress and its staff to get a 70 subsidy on their insurance premiums. This is blatantly illegal, has been challenged in court but no one has standing to sue. If President Trump just called his office of Personnel Management and say obey the law, congress would have to live under obamacare, they would be in the exchanges, insurance costs would explode. And guess what . The d. C. Exchange, do you know how much premiums are going up this year . 26 . They would be hit with that. Id bet congress would come back in special session [laughter] to deal with obamacare at that point. Stuart thats very good, john its true stuart its highly original. Well, the independent womens forum, Heather Higgins had a piece in the wall street journal on monday, so its not my idea. In fact, senator david visit earth of louisiana fought a lonely struggle to have congress covered by this law, and privately members of congress some of them will agree. But their staffs, their staffs wrote the lay, and their staffs crafted this exemption. I say whats sauce for the goose, sauce for the gander, and if americans want relief are obamacare, make Congress Live under the laws they pass for the rest of us. Stuart thats a very i like that idea. Its very original and simple. You can actually do it. The president could pick up his pen and just write it out. Now, congress will claim that he cant do it, but i would love to be the member of congress [laughter] who tries to sue and say, no, we should be treated special. Stuart thats good. One last one. Total debacle last night, total fail on obamacare. Why should we hi, why should we believe, why should we hope that well get anything on tax cuts . Well, what john mccain did and, of course, we were very upset about his illness, but it was inexplicable. He ran commercials last year saying i will end obamacare. He barely won his primary by about 15 points, the smallest margin hes ever had, and now he reversed his course and is the one vote to save obamacare, the decisive vote . I think hes let down his constituents in arizona based on what he told them in his campaign. Stuart thanks for joining us, john fund, national review. Thank you. Stuart we brought you broking news on breaking news on north koreas latest missile launch. The pentagon has now confirmed the launch, it happened, confirmed it to fox news. Theyre still assessing what impact, if any. Japans prime minister, shinzo abe, is converging an emergency meeting. It landed in waters off japan. It was in the air for 45 minutes according to japanese government officials, that is. We will bring you any additional headlines. No impact on our stock market or the price of gold whatsoever. I want to alert this story. Outgoing ge ceo, jeff immelt, on the short list as the next uber chief. And just last night, meg whitman another name on the short list for the uber job she says shes not interested. Whats that all about . Treasury secretary Steve Mnuchin on capitol hill repeated by cut off by democratic congresswoman Maxine Waters. She wouldnt let the secretary answer questions. Well play you the sound bite in just a moment. And in the two most populace states in the country, the economy is booming in one and tanking in another. Can you guess which is booming and tanking . Its easy. And look at this, three new crew members from the International Space station are are are scheduled to launch from kazahkstan. Theyll spend more than four months together before returning to the earth in december. Were counting down, youre going to watch this right now. Its about to take ignition. I cant hear the countdown, but its happening. Ignition and liftoff. Sergei, randy and paulo rocketing away and on their way to the International Space station. And liftoff. You can see the very bright first engines cutting across the night sky there. Stuart you get it all on Varney Company. Stock market, space trips, chipped teeth by aaron judge. I tell you, youve got to watch this show. Most Exciting Program on the on television. Well be back. But when family members forget, trust angies list to help. [ barks ] visit angieslist. Com today. Im Nicole Petallides with your fox business brief. A close look at facebook today. We know it hit yet another alltime high yesterday. It is up almost 2 at 172 and change, but this is about the oculus headset. Costs about 400, and you too can feel like youre right in the movie. That little boy there got a robot as a Christmas Gift from his businessman father. Its a Virtual Reality movie, and you as the viewer get to experience the movie firsthand. The actors will look directly at you, its all about Virtual Reality, the wave of the future. Its about a 40minute movie. You feel the love of the family, the troubles of the family, and you are one with this robot. Something new from facebook and oculus. Facebook up more than 48 this year. I was wondering if an electric toothbrush really cleans. Better than a manual, and my hygienist says it does. But. Theyre not all the same. Turns out, theyre really. Different. Who knew . I had no idea. So, she said look for. One thats shaped like a dental tool with a round. Brush head. Go pro with oralb. Oralbs rounded brush head surrounds each tooth to. Gently remove more plaque and. Oralb crossaction is clinically proven to. Remove more plaque than sonicare diamondclean. My mouth feels so clean. Ill only use an oralb the 1 brand used by dentists worldwide. Oralb. Brush like a pro. Reclaiming my time several times. Reclaiming my time, reclaiming my time. Mr. Chairman, i thought when you read the rules, you acknowledged that i shouldnt be interrupted and that i would have reclaiming my time, reclaiming my time, reclaiming my time would you like to give the secretary an opportunity to apologize to mr. Ellison for not a that is not a proper parliamentary inquire. Stuart congresswoman Maxine Waters repeatedly interrupted treasury secretary mnuchin. Joining us now from the blaze, the host thereof, my close friend, lawrence jones. All right, lawrence im your brother. Im your brother. Stuart okay, you got it. Seriously, that was ugly. I thought it was rudeness, and i think it says a lot about the state of personal animosity in politics today. Your take, please. Well, the problem with Maxine Waters is now shes the leader of the resistance. So youre going to see this sloppiness. Shes cursing at events, shes strong arming people within her own party. The leader of the resistance, but now she made a statement saying if Millennials Want her to run for president , then shell run for president. Of course, shes going to be mean, shes going to be nasty. Shes setting herself up for a run for president. Stuart so whats your take on her standing within the Democrat Party . Well, her standing from a National Standpoint is great, but when you look at her in her own district can, the district that she doesnt even live in because, you know, she has that 4 million mansion in the rich neighborhood, is really poor. I mean, she just had a democratic primary challenge. When you look at the people in her district, many people that look like me, the wealth of those people, the income is going down in that district. Now, the cost of living in her district is going up, but wealth for black folks in the district is going down. So im hoping that people in the district will finally wake up and say shes not benefiting us, shes benefiting the rich people and people in the community that she actually lives in which is that 4 million mansion, not a povertystricken neighborhood in south l. A. Stuart i just thought it was ugly to see that well, shes a nasty person. Stuart okay. We asked our viewers before the break which state they thought had the Fastest Growing economy in the First Quarter of the year. The answer is texas is the winner, 3. 9 growth. By contrast, california only. 1 growth. Now, lawrence, youre a texas guy. What do are you guys what are you guys doing so right . Well, first, we dont have a state tax and then were drilling a lot. And so what were seeing now is because now we have President Donald Trump in office now, a lot of those standards when it came to oil and gas as well as clean energy, as well as fracking in the state of texas, all those bans that were going on from the epa under the Obama Administration are being lifted. So now you see us going back to work in those areas. Stuart you have lower taxes, youve got the energy boom. California lower taxes and no state tax. Stuart yes. Thats very important, actually. California, by contrast, is high tax. Theyre the home of hollywood and all that. Theyve got finance, theyve got insurance, theyve got retail, theyve got agriculture, forestry, fishing and mining. All of those, we are told, drag on the california economy. I find that rather surprising, actually. It does. And this is why even in texas now were saying that were open for business. And so if youre living in california or where youre at right now, stuart, in new york and you want to have a climate that invites business to come and we want you to prosper so the citizens of texas can get more money with your business, come to texas. Come on to texas. And once we started that pr push, were seeing a lot of those businesses leave those states and come to texas. Even when were talking about from an entertainment perspective. Austin, texas which is kind of liberal, but it still has a state that is inviting a lot of people in the Entertainment Industry are moving down to texas. Stuart i just love the look on your face when you say, austin, kind of liberal. [laughter] it is kind of liberal. [laughter] stuart you can come back anytime. Thanks, brother. See you soon. Stuart ive got to take a look at exxon. Why . Because that stock price is at an 18 month low. Not good, down 2 today. American airlines doing better than wall street expected. Thats usually a good sign, but its not today. Down nearly 2 percent. 49 a share. Now this, another varney stole the show on fox friends this morning. Thats my daughter, angela. Interning on that show for the whole summer. She got a chance to give the Weather Report today. Im a proud father, well play you the clip in a moment. Thats angela, right there. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement insurance plans, they could help pay some of what medicare doesnt, saving you in outofpocket medical costs. Youve learned that taking informed steps along the way really makes a difference later. Thats what it means to go long™. Call now and request this free decision guide. Its full of information on medicare and the range of aarp Medicare Supplement plans to choose from based on your needs and budget. All plans like these let you choose any doctor or hospital that accepts medicare patients, and there are no network restrictions. Unitedhealthcare Insurance Company has over thirty Years Experience and the commitment to roll along with you, keeping you on course. So call now and discover how an aarp Medicare Supplement plan could go long™ for you. These are the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. Plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. Remember, medicare doesnt cover everything. The rest is up to you. Call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. Go long™. Stuart if you watched fox friends earlier today, you saw another varney steal the show. Watch this. I want to introduce you to a little friend of mine. Her name is angie varney, and shes related to someone very famous in the building, arent you, angie . I think i might be. Tell us who youre related to. Stuart varney is my father. Stuart very is her dad. Now, i dont see him out in the audience, im very disappointed. No, i told him id Call Security if he showed up to watch me. [laughter] hes upstairs. Angie has been one of my favorites, and she is going to do the weather for us today. Are you ready, angie . I think so. Are you guys ready for angie . [cheers and applause] all right, take it away, my girlfriend. Heres a look at your current temps. 73 in new york city for our summer concert series, partly cloudy skies. We are watching the threat of storms across the southeast and midatlantic with strong winds and heavy rain. Flash flooding could also be a problem over the southwest and the heat continues across the Southern Plains this weekend. Thats a look for your current forecast. Back to you, ainsley, steve and brian. [cheers and applause] stuart i thought Cheryl Casone is with me, watching her. I thought it was pretty good. Of course, im youre biased. No, she did great. I think i just watched my replacement on television. She was wonderful, shes got it. People talk about the it fact or, and im not just saying in this because i like you, i think she did a great job. Stuart shes a wonderful daughter. Does she see hes on air . Herself on air . Stuart ill keep that quiet. Okay. [laughter] all right. Is she your favorite . Stuart what . Ive got six i dont have favorites, okay . Is theyre all wonderful as far as im concerned. They really are. Just wondering. Stuart well be back. [laughter]. Stuart Cheryl Casone has been sitting with me for much of the last hour. Most interesting story of the day to you . Cheryl i think Anthony Scaramucci, the new White House Communications director. Interview he gave to the new yorker, has likely learned his lesson that what you saver verbatim to the reporter is going to be reported. Stuart quickly, check amazon, still way down. Bottom line here is the value punters, the bargain hunters have not yet bought this not to any degree. Times up. Friday lunchtime. Neil thanks, rejection of the socalled skinny repeal measure. What happens now. The President Trump says the senate must go to 51 majority. Remember on this particular undertaking those were the rules that affected simple majority and they couldnt cobble that together. We are following the fallout from all of that. Surprising limbed stocks. I have expected this morning that futures would be tanking, they werent. The markets continued to surprise and defy expectations, we are going to get into that and what it might mane for taxes, conservative reviews, Real Clear Politics National political reporter caitlin hugh burns