Like it or not, we are big spenders and big borrowers, too. Now look at this. Boris johnson is the new Prime Minister of great britain. In a gracious victory speech, he said he would complete brexit, unite the country and beat the socialist jeremy corbyn. Hes the first to admit he has an uphill struggle but hes got a sense of humor and reminds me very much of donald trump. More on boris coming up for you. Look at this. Stocks going up again this morning. A series of Solid Earnings reports are clearly helping. Two dow stocks, cocacola, united technology, they are standouts. Obviously helping the overall average. Profits across the board are strong. Stocks also getting help from the budget deal. The governments not going to run out of money and they can borrow. The dow is going up triple digits, about 100 points. S p up 11. Look at that nasdaq, up 33. Thats close to a half percentage point gain. Summer doldrums . Not here. Varney company is about to begin. Stuart a little time with me. It was inevitable, wasnt it . You had to pick that song to open the show. Big spender in honor of the new spending deal. 2. 7 trillion more in spending over two years and it suspends the debt ceiling for two years as well. Economist, know thyself. Come in, peter morici. Theres no restraint on spending, no restraint on borrowing. You tell me as an economist, what impact on the economy . Well, in the short term, its going to give a small lift to gdp. We are going to pick up a couple tenths of a percentage point over the next few years from this spending. It wont dramatically change the growth path. Longer term, you know, at some point, we have to pay the piper. The world right now stuart but we never do. We never do. Look, we never do. Look, you and i, we have been around a long time. We have been talking about the debt bomb thats coming and coming and coming and it never comes, and look at us now. 22 trillion in debt. Open the spigots to borrowing more. Well, just because it hasnt happened doesnt mean it will never happen. Whats happened is the dollar has become internationalized so people need more of them to hold on to and they do it in the form of bonds. At some point, that demand is satisfied. The other thing is, libra is on the horizon. Libra looks, walks, talks and acts like a currency, even if mr. Zuckerberg says that it is a payment system. And it cant be stopped. If that happens, we may finally be in a world where the Federal Reserve has competition from the private sector, and someone can provide the world with a more reliable currency than the dollar. Stuart okay. Can we sum it up like this. You dont see any negative impact from this budget deal in the short run, no negative . Absolutely. No negative impact. In fact, its positive. The longer term, we are selling out our kids. Stuart okay. I think that wraps it up nicely. You said it all in 90 seconds. Pretty good, peter. You have learned television. Well done, sir. Thank you very much. Now, lets go to the futures market, because looking good. Earnings season is in full swing. Look at this. Rosy forecast from the dow m could component. Not bad. Cocacola forecast a 5 growth in profit in the future. Theyre up 3. 33 . Nice gain there. A rosy forecast from the defense contractor, Lockheed Martin. Up it goes, 1. 5 . Mike murphy is here. He follows this kind of thing closely. Youre all about profit, arent you . I like to be. Yes. Ideally. Stuart pretty good so far across the board. We are up over 8 . Absolutely. When you looked just this morning, you have defense, you have a company like cocacola you could argue is ripe for disruption, ripe for one of these Venture Capital backed companies to come in, displace coke. Theres a push for healthy living, Healthy Lifestyle and coke keeps delivering. I think right now, some Large Companies like coke, like utx, are figuring out the best way to get the most profit for your invested dollar in this market. Thats why they are going up. Stuart so we have a budget deal, no restraints on spending and borrowing, strong earnings and the dow and the other indicators, close to record highs. You keep on saying it, will you say it again, we are in for another leg up . We are in for another leg up, and the budget deal i think is something we havent talked about. I didnt see a twoyear deal coming. I didnt see that on the horizon. One thing you didnt talk about at the top was in this deal, you have the republicans on board, you have the democrats on board. What if we get a little unity in the United States, everyone seems they want their share of this money and are going to get it. Maybe if the focus is on unity, on growth, you use your money for your area of growth, ill use my money for my area of growth, maybe it takes even another leg up for the economy. Thats why the market will follow. Stuart you really are an optimist. I am. Stuart you have a nice sunny smile. Okay. Stay there. We will bring you back for 9 30 when the market opens. Lets get to britain, where Boris Johnson is the new Prime Minister, replacing theresa may. Largely because she failed to deliver brexit. President trump tweeting this morning, here you go, congratulations to Boris Johnson on becoming the new Prime Minister of the united kingdom. He will be great. Joining us now on the phone, fox news contributor, nigel farage. Hes not on the phone. No. We will actually see him. There he is. Nigel, will boris deliver brexit on the dropdead date of october 31st . No. Im afraid not. Im afraid not. Boris, hes a great guy, i like him on a personal level, hes positive, hes upbeat, we saw some flashes of sense of humor this morning from him. All of thats terrific. But what boris says and what boris does could be very different things. I think he takes over with virtually no parliamentary majority at all, and hes only got 100 days from now to deliver brexit. Now, if hes very brave, if he looks at parliament and says i dare you to vote against this, if hes got the guts to go to the country in a general election with my support, then he could do it but my question is, just how brave is boris. If hes brave, he will do it. If hes not, he will fail. Stuart if he fails, and you dont have brexit by october 31st, what have you got . Youve got a chronic mess, havent you . What will happen is we saw a snapshot of this in the european elections back in may, where i led the brexit party to winning the election, getting 50 more votes than our nearest rivals. If they dont deliver brexit, the brexit party will, i mean this, take over from the conservative party. Stuart is it possible that america could bail out boris with a really favorable trade deal . I know you cant negotiate a trade deal until you are out of brexit or out of europe, but if that was kind of agreed to, if its on the timetable, we could do a deal with america, or you could do a deal with america. Yeah. Yeah. I mean, look, we cant sign a trade deal all while were part of the European Union but whats to stop us having negotiations . I think those negotiations should begin now. I do think that a trade deal with the states would make a huge difference to us. But you know, boriss problem is the conservative party is bitterly divided. Parliament will still remain. He has no majority. This all sounds great but what is he going to do . Mrs. May, the last Prime Minister, she told us 100 times we were leaving on the 29th of march and we didnt. Boris now tells us were leaving at the end of october. I do not believe its possible to deliver brexit without having a general election and changing the arithmetic in parliament. Stuart you would have to win the general election. Im not so sure you can do it. Well, honestly, you know, if you look at the polls, if you look at the conservative Party Support and the brexit Party Support, together, we would smash the labour party out of sight. But to do that, for boris to do a deal with me would mean splitting his own party because about a third of the conservatives are still in their hearts remain so hes got some huge choices here. Stuart nigel, thanks for joining us. I know we are going to see you again a lot. See you soon. Thank you very much. Im going to switch subjects and talk about alibaba, sometimes called chinas amazon. It is inviting Small Businesses here in the states to sell globally on their platform. Tell me more. Susan taking on amazon in the process as well. So in the past, u. S. Small businesses were only allowed to buy on alibaba. Com but now in the future, they can sell as well. This is more of a businesstobusiness transaction so this is a 24 trillion market and amazon, alibaba, chinas amazon, of course, is trying to expand internationally since theyre looking at leaner ecommerce Revenue Growth and this is because of the u. S. china trade spat and also more competition as well. Stuart i do own some alibaba stock. Am i being transparent . Susan yes, very. Stuart good. Check futures. It is Tuesday Morning, we are going up maybe 100 points for the dow, 30 odd points for the nasdaq. By the way, as im sure you know, we are less than 24 hours away from Robert Muellers testimony on capitol hill. One senior gop senator had a very blunt response when asked if mueller could derail the budget deal. We will tell you that twoword response, might have to bleep a bit of it out but we will tell you what it is, discuss it, too. Rashida tlaib says a 15 minimum wage isnt enough. She wants 20 an hour. Can you imagine . Same wage everywhere, no matter what the cost of living . What would that do to businesses . We will tell you. The latest movie trailers go viral. The new mr. Rogers starring tom hanks as the man in the cardigan. Hanks is a dead ringer for mr. Rogers in the movie. Thats not the right shot. Believe me, we will show you the right shot where they look exactly alike. Varney just getting started. How do you gauge the greatness of an suv . Is it to carry cargo or to carry on a legacy . Its show of strength or its sign of intelligence . In crossing harsh terrain or breaking new ground . This is the time to get an exceptional offer on the mercedes of your midsummer dreams at the mercedesbenz summer event, going on now. Lease the gla 250 suv for just 329 a month at the mercedesbenz summer event. Mercedesbenz. The best or nothing. Stuart hasbro, the avengers toy sales giving it a nice boost, 6 up. Quite an impact there. Rosy forecast from kimberlyclark. They make all kinds of products, huggies diapers, you name it. They are up 1. 5 . Another good earnings day there. Two big stories of the day. Thats what we are concentrating on here. A, youve got a deal to increase spending and borrowing and b, mueller testifies tomorrow. Now, when asked if President Trump could blow up the budget deal because of what mueller might say, a senior gop senator told fox news producer chad pergram quote, f, yeah. Okay . Susan okay. Stuart thats a direct question. Joining us, senator john barrasso, republican from wyoming. Youre smiling, mr. Senator. Is there any chance at all that if President Trump doesnt like what mueller is saying, he could just get angry and blow up the budget deal . Well, a couple of things. One, as you know, i will be meeting with a number of senators with the president today at the white house, and im sure all of these things will be topics of discussion. But this mueller thing, this is all about the democrats beating the drum for impeachment. Thats what theyre calling for. You have the majority of the president ial candidates calling for impeachment on the democrat side, you have 80 members of the house wanting to move to impeachment, you have nancy pelosi saying the president belongs in prison. Thats what this is about. To me, the case is closed. The evidence is in, no collaboration, no collusion, no coordination. We need to get this behind us. This is just the democrats trying to take this into overtime. Its not going to work. Stuart you are going to get five hours of testimony, every minute of it is going to be on national television, and throughout those five hours, the democrats will attempt to suggest that the president is unfit for office. They will slime him. Youve got to be a little worried that some of that sticks. Well, they have been trying this since the day he was elected in november of 2016. Theyre still not over the fact that the American People rejected Hillary Clinton and elected donald trump president. We have a Strong Healthy growing economy because President Trump is in the oval office with six million new jobs since the day of that election so im not surprised that the democrats are continuing down this road, but look, these are the people that are recommending a one size fits all Health Care Program that will bankrupt the country and these are the people that are supporting the Green New Deal which is unpopular, unworkable, unaffordable. These folks have taken a sharp left turn, its where they want to take the country, and the American People i believe will reject all of it. Stuart do you ever think well see the day when we really do cut spending . Well, ultimately to do that, you and i have talked about the need to do it, you have to look at entitlements. Those are the tidal waves that are coming at us in terms of the baby boomers. Today, 11,000 americans will turn 65, be on Social Security and medicare. As a doctor, i have always said we got the medicine right because people are living a lot longer, healthier lives, but we got the math wrong. Stuart how come when we Start Talking about these programs stuart how on earth, look, weve got a booming economy, very low unemployment, a deficit of 1 trillion and we are going to spend some more and borrow some more. Wouldnt this be the time to cut spending . Were not doing it. I cant think of how we will ever do it in the future because we have never done it in the past. Our problem isnt that we tax too little. Its that we do spend too much but the drivers are the tidal waves of baby boomers coming on to the medicare and Social Security. We have it also now with medicaid under obamacare. That is a big driver of spending. Im going to encourage as i know a number of our colleagues will at the white house meeting with the president today to take on entitlements because ultimately, thats where you are able to deal with the funding. Revenue is at an alltime high. Revenue coming in today is at an alltime high. With the money going out, it exceeds that. So much of this is mandatory spending. Stuart yeah, but i just feel its extremely difficult politically to cut entitlement spending. Senator, ive just got to go. I do apologize for that, sir. Thanks for having me. Stuart thank you. Quickly to the futures market. We are 11 minutes away from the open of the market. We will be up 100 for the dow, up 34, roughly 30 on the nasdaq. About a half percentage point. Solid gains across the board. Venezuela plunged into darkness again. Wait until you hear what the maduro regime is blaming for this blackout. We will deal with that, next. Dto experiencer gthrilling performance. Now, at the lexus golden opportunity sales event. Get 0. 9 apr for 60 months on all 2019 models. Experience amazing at your lexus dealer. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. 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Susan an electromagnetic attack. They didnt designate this to a government but dont forget, back in march when they suffered a nationwide weeklong outage, they blamed the opposition and the United States for a series of these power outages. Venezuela as i mentioned to you is on its knees. This is its fourth major blackout in less than five months. The economy has shed in half at this point and maduro and six months out since guaido announced himself as the illegitimate leader of venezuela, they have a blackout. Stuart the price of oil this morning is at 56 a barrel, barely budging. Meanwhile, iran as we keep saying, tensions in the gulf keep on rising. Carl lowry is with us, ace energy expert, with us in new york today. The story here is not tension in the gulf, its not what iran is doing, its the fact that the price of oil is only at 56 a barrel despite all thats happening there. You know, absolutely right. If it were ten years ago we would easily be over a hundred. Right now, america controls the price. First time in history we control the price. Stuart repeat that. America controls the price of oil around the world. How do we do that . We have ample supply, we have great demand but we are not needing the rest of the worlds oil as much as we used to. Stuart are we Energy Independent or almost . We are Energy Independent. We export nearly three Million Barrels of crude a day. Not including gasoline and diesel. We are supplying the rest of the world finally in this time and age. Stuart is it true that this year, this calend