How that turns out and beijings reaction to it may well have an impact on our market today. We will show you that protest. Second, that recession signal, the inverted yield curve, well, as you can see, it is no longer inverted. The tenyear yields more than the twoyear, the way it ought to be. But i want to show you this. Money is pouring into americas 30year bond. Its yield has dropped below 2 again. Why . Well, germanys bond has reached yet another new low, negative yield, minus. 7 . Really crazy stuff. All right. You may think this is a crazy headline, too. President trump, according to the wall street journal has suggested america buy greenland. Varney company is about to begin. No, i think the longer the trade war goes on, the weaker china gets and the stronger we get. Were taking in massive amounts of money, billions and billions of dollars, as you know, and i think the longer it goes, the stronger we get. I have a feeling its going to go fairly short. Chinas lost millions of jobs. Stuart you heard that. I think its going to go fairly short. President trump talking china trade. More on that in just a moment. First, i want to turn to hong kong, where a protest is happening right now. Susan li is there right in the middle of it. Tell me whats going on right now. Susan we will be moving right to it as well. If you are looking at these live pictures, we do have a sizeable rally taking place right in the financial heart of hong kong. This is just right beside the famous skyscrapers that dot the hong kong skyline. I would say maybe up to 1,000 are in attendance and the headliner at this rally in particular which is stand with hong kong, rally to the people power, thats what its called, this rally. We have joshua wong, the young protest leader in 2014 of the Umbrella Movement that we know paralyzed the city and its roads for about two months time. Now, this weekend is when we are expected to see the really big rally so on saturday night, we have whats taking place in more the rural parts of the city. We are expecting 300,000, at least thats the number thats being bandied about at this point. That will take place tomorrow evening on saturday. But sunday, theres a rally being called for also the financial part of the city of hong kong as well from central. For anybody thats ever been here, they know that is the main roads in the city of hong kong and the last time there were these rallies in the city of hong kong, two million of the citys seven million residents came out in support. We are expecting pretty large numbers to come out and walk this weekend. Stuart the chief executive officer of Cathay Pacific, hong kongs airline, rupert hogg, just resigned. Why . Susan well, because of the disruptions caused by these hong kong protests. It was the worst week for Cathay Pacific as a public company. The stock is trading at a tenyear low. Also, there has been some controversy over the participation of some of its pilots, some of its employees, in these hong kong protests. In fact, Cathay Pacific had to fire two of its pilots because of what they saw as participation in these hong kong protests, and also, of course, the disruptions at the airport. The hong kong airport is the worlds eighth busiest, hong kong Cathay Pacific is the main airline out of hong kong so you can imagine the damage to the business it has taken. Stuart staying in hong kong, James Carafano is with us, Foreign Policy guy with heritage. Does the unrest in hong kong give President Trump some leverage . No. I dont really think so. Beijing knows that the u. S. Has super little leverage here. Stuart youre still on. I dont know whether you just lost everything but youre still on, lad. Keep going. No, no, no. Look, theres not much we can do. Beijing knows that. Heres what they do know, right, which is the one thing is if they send the troops into hong kong, then u. S. china relations wont be the same for a very long time. The trade deal will be dead, the anger against china and the u. S. Will be massive, so all the things that china is trying to do to work around, all that would be lost. Stuart what we should be looking at is how these protests tonight and more especially, tomorrow night, and into the weekend, how they turn out. If they turn violent, thats when there is the possibility, the ominous possibility, of the intervention of those chinese soldiers who have indeed massed at the border. Thats what were going to look at, right . Well, i dont know. Look, the Hong Kong Police are certainly capable of maintaining order in hong kong. They demonstrated that again and again. There are different explanations for why having the troops in the mainland. One is they can be there as an insurance policy in case pro democracy demonstrations move to the mainland. One thing the Chinese Government couldnt stand. So thats a warning against that. Two is it does intimidate the demonstrators in hong kong. If they might be there as kind of a last resort if things really break down, or maybe they are proactively thinking about moving troops in. There are lots of explanations and lots of arguments why sending the troops into hong kong is probably the last thing xi would want to do. Stuart we will take an eye on that one for sure. James carafano, thank you. Thanks for joining us. Lets get back to your money. Take a look at futures because we are going up this morning. 200 points for the dow, 75 for the nasdaq. That is not exactly a vshaped recovery after the 800 point loss, but its something of a recovery. Market watcher hans olsen with fiduciary trust with us now. Why are we up this morning . Because we got maybe favorable trade news and the yield curve is no longer inverted . Those are the two things that are happening here. In reality, too, the economy is not that weak. If you look across whether it be the hard or soft data, the economy remains in relatively fine fettle. Stuart i read your stuff. Youre worried about Interest Rates going to zero. We have a real sharp decline in Interest Rates going on. Look at that on the screen. The twoyear, 1. 51. The tenyear, 1. 54. The threeyear is below 2 . Context. There is 16 trillion of negatively yielding debt right now. Its up 180 from october. That money, the entire german sovereign yield curve is negative, below zero. Which is remarkable. That powerhouse, as you talked about. That money is coming to the United States. Thats flowing. You add that, plus the Central Banks are all in a repressive mode with Interest Rates. Finally, because we are in the later stages of the economic cycle, the longest economic cycle, longest expansion on record, we have a flat yield curve and every now and then, we are going to see these dips into inverted territory. I think, though, when the next downturn does happen, and it inevitably will, historically, Central Banks have had to cut Interest Rates 300 to 500 basis points. Were at, what, 2 right now . That puts us below the zero bound if they have to do that. I think its not only possible but it is indeed probable when it happens. Stuart that probably would not be good for stocks, i suspect. Its a new world. Stuart the world turned upside down. Thats a fact. Indeed. Stuart President Trump was talking about what would happen if he loses in 2020, what happens to your 401 k . Roll that tape, please. You have no choice but to vote for me because your 401 k s down the tubes. Everythings going to be down the tubes. So whether you love me or hate me, you got to vote for me. Stuart im sorry, but i have to laugh because i have never, ever seen a United States president speaking that way. Okay. Now, is he right . If he lost in 2020, and any democrat won, do you think the market goes down the tubes . Well, markets hate uncertainty. A change of president ial administrations is the epitome of uncertainty and in truth, some of the folks that he might be running against have a very hostile attitude to commercial stuart the answer is yes, if he lost, down goes the market . We would be in for some tough sledding. Stuart thank you. You got there eventually. Thank you very much. The journal, that is the wall street journal, is reporting that President Trump has been quote, talking with advisers about buying some real estate. That would be greenland. Ashley with varying degrees of seriousness, we are told. But dont laugh. This is not the first time the u. S. Has looked at buying greenland. Harry truman back in 1946 offered 100 million for it, was turned down. Back in 1867, the state department tried to buy greenland and iceland. That didnt happen, either. The danish have already responded saying we are open for business but were not for sale. Former Prime Minister of denmark says this must be some sort of april fools joke but its in the wrong season. Greenland itself, 811,000 square miles, population of 56,000, kind of a pivotal place in the world between the north atlantic and the arctic oceans there. The u. S. Does have stuart thats the response. We are open for business, not for sale. Learn more about greenland on greenland. Com. Okay. Ashley they are using it for their own advantage. Of course, denmark owns greenland although it is semiautonomo semiautonomous. Fascinating stuff. Stuart its friday, isnt it. Thats the kind of thing will make a headline on a friday morning. Ashley can you put a golf course on greenland . Im wondering. Stuart thousands of golf courses. The place is gigantic. It is the largest island in the world. The australians object to that because their island is a continent. Ashley right. Thats right. Stuart you learn everything here. Im telling you. You really do. Back to the markets. We have come back down not down, but come back a bit. Now we will be up about, what, 1 180 for the dow. Change of heart from israel. Why the country will now allow congresswoman Rashida Tlaib to visit the west bank. Hong kongs president is calling on residents to withdraw as much money as possible from atms to disrupt the areas banking system. Thats a different kind of protest. President trump continues to tout our economy but the Mainstream Media is having absolutely none of it. They are still drumming up fears about a recession. We will cover it, next. Varney company just getting started. 900 acres. 48 bales. All before lunch, which we caught last saturday. We earn our scars. We wear our work ethic. We work until the works done. And when it is, a few hours of shuteye to rest up for tomorrow, the day well finally get something done. youre smart,eatinally you already knew that. But its also great for finding the perfect used car. Youll see what a fair price is and you can connect with a truecar certified dealer. Now youre even smarter. This is truecar. Stuart police in new york are now investigating a third suspicious device. The first two Pressure Cookers found to be harmless, but jackie, what do we know about the third . Jackie thits a third Pressure Cooker found in chelsea. It is not clear to police at this point if that one is explosive or not. This has been an ongoing story this morning and its continuing at this point. We will update you when we have more. Stuart who leaves a Pressure Cooker or two or three lying around in new york city. Unless its to scare everybody to death. All right. President trump again touting the strength of the u. S. Economy. Roll that tape, please. China wants to make a deal and i will tell you, iran wants to make a deal, because the sanctions are not good for them. They are not happy. So well see how it all turns out. But its in good hands. Its in good hands. The United States right now has the hottest economy anywhere in the world. Stuart however, the Mainstream Media is playing up recession fears. Look at this headline, new york times. Here we go. Economic trouble signs hang over trumps trade war. Okay. From the washington post, trump banking on Strong Economy to win reelection. Frets over a possible downturn. Joining us, jack kingston, former republican congressman from georgia and former cnn contributor. We will get into why you left cnn in just a moment. First of all, my proposition to you is that the media is talking down the economy deliberately. They want a recession. Am i going too far . No, youre not. This is absolutely the case. The democrat president ial candidates do not have any issues, they think that america wants socialism, americans arent embracing it so i think the media is stepping in, trying to help them out, talk about doom and gloom. If you remember, absolutely the same headlines that were seeing today, we saw in 2016 running up to november and then we even saw in december 2016 that the stock market was going to crash, america was going to plunge into a deep recession because donald trump, and yet here we are, six million new jobs later and the economy is rolling. Stuart why did you leave cnn . You know, it was one of these things where i think they just did not want the Opposition Party to speak. We were generally, we Trump Supporters were on panels and it was always four versus one or one versus six and yet i think there were people there who thought that was too much. I was told hey, you defend President Trump all the time, and my response was yes, because you criticize him all the time. You know, you can criticize him but when everyone is pounding on him, you need to defend the guy. With this economy, there were so many good things to talk about. Think about this. In spite of the doom and gloom, 164,000 new jobs created in july alone. We are over one million this year, 2019, yet theyre saying the economy is bad. Wages are up, the market is jittery right now. Everybody understands markets get jittery but it has broken its alltime high 80 different times under donald trump. Stuart got it. Thanks very much, jack. Appreciate you being with us. If you ever want to go back to cnn, just watch out. Youve been there. You know. Stuart long time ago, though. Next case, congresswoman tlaib, not going to israel. Okay. Despite getting clearance to visit her relatives on the west bank, shes not going . Jackie no. She just tweeted this. Quote, i have decided that visiting my grandmother under these oppressive conditions stands against everything that i believe in. So just to backtrack quickly, she requested permission to go, netanyahu said she and ilhan omar wouldnt be allowed to do it because of their support for the antiisrael boycott movement. Then she did get permission. Now shes saying nope, im not going. Stuart im with israel on this. Why, you and i joked about this, i thought first they should let them in, but i think israel has every right to say wait a minute, you want to boycott, divest and sanction israel, you are opposed to us, you are one of our enemies, why should we let you into our house . I think they have every right to stop them. Now tlaib, congresswoman tlaib is not going. Futures. Check them out again. We have come back a little bit. We were going to be up 200. Now we will be up about 150. Race car driver Dale Earnhardt jr. And his family out of the hospital after their plane skidded off the runway and burst into flames. Were on that story for you. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you preorder a new samsung note. Click, call or visit a store today. Stuart we reported moments ago that a third suspicious package had been found in new york city. The police have just given the allclear. It is harmless. Lets move on quickly. Attention, gamers. Weve got an investment for you. Weve got a pure play, a gaming etf, a pure play, electronic sports and video game playing. Will hershey is with us. Youve got this etf and the stock symbol is on the screen. Nerd. Good choice, young man. Good choice. Is it a pure play . I know its a basket of stocks, but are all of those stocks about video gaming and esports . Yeah, very much so. Really, when we look at creating a thematic product, we want to provide people exposure to that theme. We are not going to add amazon and microsoft in there where you end up with something that looks like a broadbased benchmark. We will invest in companies that are very much tied to this space. Stuart pure play. Yes. Stuart would i be right in saying that playing these games and competing in these games, we in america are behind other parts of the world like asia and india . Very much so. Leaders in the space, believe it or not, unlike other industries, are really korea and china. They call it, you know, 400 Million Viewers of esports worldwide growing to 600 million by 2022. A lot of those are in asia. Stuart why is your stock, your etf, ive got a chart on the screen, its flat. Its flat, i mean, its tough launch i launching june sports with all the market volatility we have seen since then. At the end of the day we are investing in public equities so we will trade in line somewhat with the Broader Market but we like the theme of investing in esports. Stuart got you. Will, thanks very much for joining us. Good stuff. Okay. Two big stories. We are obviously following them for you. Big crowd gathering in hong kong. Is that him . Is that joshua wong . Okay. That may be joshua wong, a leading protester in hong kong. He may be the speaker now at that rally and protest in hong kong. Its ongoing. We will take you there in a moment. A stock market rally. Thats the other big story. Which is in progress or will be in a few minutes. Nice bounceback to end a wi