Transcripts For FBC Varney Company 20240714

Bidens age. Senator warren punted when confronted with middle class tax hikes to pay for medicare for all. Bernie sanders, same old, same old. Nothing new. Hes still humorless and very angry. Senator harris failed to break through. She accused the president of sowing hate. Beto orourke came out in favor of gun confiscation. He received cheers for that. If there was a breakthrough, it was andrew yang. He would select ten families and give them 1,000 bucks a month for a year. He calls it a freedom dividend. Lara trump will join us. Shes going to respond to the democrats calling the president racist and a white supremacist. Now look at this. Another rally and its likely going to take stock prices to new alltime highs. Probably today. Two items helping the market. President trump talks about china trade and seems to suggest that an interim small scale deal is possible. And this morning, china says its not going to put new tariffs on american soybeans and pork. That does sound positive. The president talked about a big middle class tax cut to be announced next year before the election. It all helps the record stock market run. One more thing. Carl icahn, mr. New york, is leaving town. Where do you think hes going . The Green Pastures of lowtax florida, of course. Varney company, the friday edition, about to begin. Stuart just in to us. President ial tweet. Here it is. How do you impeach a president who has helped create perhaps the greatest economy in the history of our country . All time best unemployment numbers, especially for blacks, hispanics, asians and women. More people working today than ever before. Rebuilt military, a choice for vets, became number one in world and independent in energy. Will soon have Record Number of judges. Im not sure what two sc means. Supreme court justices, thank you, producer, done more than any president in first two and a half years despite phony and fraudulent witch hunt illegally led against him. Win on mueller report, mueller testimony and james comey. Ig report which showed him to be a disgraced and dirty cop. Republicans have unified like never before. You dont impeach president s for doing a good great job. No obstruction, no collusion. Only treasonous crimes committed by the other side and led by the democrats. Sad, exclamation point. Okay. I got through it. That just came in right from the president. Here we go. Look at futures, we are a stones throw from record territory. Market watcher layfield is with us now. Do we hit record highs today . I think so, yes. I think the perceived alleviation of the trade war is hg the market. Stuart not so much the nasdaq but certainly the dow industrials are headed up. Is it trade war . Is that the deal . Thats whats pushing it up . Absolutely. Yeah. I dont think the market thinks we will get a trade deal done out of this but the alleviation, the suspension of tariffs, the market likes this. They like status quo for the time being and the market is responding. Stuart i dont see any of the democrats onstage last night actually winning in november of next year. Do you think that helps the market . Youre being facetious. It is like the battle of the tallest leprachauns last night. The only president elected during a bad economy was mckinley. Stuart stay there, john. More for you later. More on the debate from last night. Kamala harris making a veiled accusation against President Trump. Roll that tape. You know, people ask me in el paso, they said, because i have a longstanding record on this issue, they said do you think trump is responsible for what happened. I said well, look, i mean, obviously he didnt pull the trigger but h cerinly has been tweeting out the ammunition. Stuart joining us now, lara trump, Senior Adviser to trump 2020. Lara, your reaction when your president , your fatherinlaw, is spoken of like that. Lets start with how boring this debate was. I found it very hard to watch. And really uninspiring in so many ways. None of these candidates look like they could ever in any way, shape or form defeat this president in 2020. But this is more of the same. They accuse the president of everything under the sun because how else are they going to beat him, stuart . When you have a great economy, when people are back to work, when things are working for people in this country, i dont know how you argue against that. The reality is you cant. You call him racist, white supremacist, you blame a shooting on him which is disgusting that they are still beating this drum. Stuart hold on. I have to roll another sound bite with the candidates talking about racism. I will get your response to that. Roll it, please. Anyone who supports this is supporting racism. The only people who actually buy into this president s hateful rhetoric around immigrants are people who dont know any. We also call out the fact that we have a white supremacist in the white house and he poses a mortal threat to people of color all across this country. We know Donald Trumps a racist but there is no red badge of courage for calling him that. President trump, you spent the last two and a half years fulltime trying to sow hate and division among us and that is why weve got nothing done. Stuart can i have your personal reaction to that . Well, my reaction is the only folks that have been sowing hate and division are the mainstream media, members of the mainstream media, quite frankly. Theyre the ones that continue to push this ridiculous narrative. I dont know how many times you have to denounce white supremacy, make sure that you talk about not being a racist. It is crazy that people are able to just throw this around so haphazardly and just very freely call you a racist. We know Donald Trumps a racist . Really . That is so ridiculous. Then you see Robert Francis orourke, stage name beto, as many of us might have come to know him, trying to remain relevant. His campaign is tanking. None of these people, stuart, bottom line, are going to be able to beat donald trump. But they think that the only way to do that is to charge him with something and you see buttigieg calling Trump Supporters racists, just flat out. If you support this president , you are a racist. I dont think thats a very good tactic when you are running for president. Stuart reminds me of hillary and deplorables. Candidate andrew yang, can i say he looked generous . Try this. Thats why im going to do something unprecedented tonight. My campaign will now give a freedom dividend of 1,000 a month for an entire year to ten american families, someone watching this at home right now. Stuart before you say it, i will say it. Thats buying votes. Its 100 buying votes. Its okay because hes asian and knows a lot of doctors is what we heard from him last night. I dont know if anybody caught that. Susan im asian. I know some doctors. I know a lot ofeers engin which might be a new trend. Im not asian but i know doctors as well. Its very interesting, some of the things he said. This is 100 buying votes. I guess whenever you dont really have a strategy, you say im just going to throw money. Hes been talking about giving money away every single debate. Very interesting. Stuart it wasnt boring. It was fascinating. You should have watched it. I had to continue to turn the channel back. My husband kept changing it. Because i said i probably have to talk about this tomorrow. Maybe i should watch it. Stuart you did talk about it. Lara, thank you very much. See you soon. Thank you. Listen to Elizabeth Warren answering a question about raising taxes on the middle class. Roll that one, please. Will middle class taxes go up to pay for the program, i know you believe the deductibles and premiums will go down. Will middle class taxes go up, will private insurance be eliminated . Look, what families have to deal with is cost, total cost. Thats what they have to deal with. And understand, families are paying for their health care today. Families pay, when they hear sorry, you cant see that specialist, every time an Insurance Company says sorry, that doctor is out of network, sorry, we are not covering that prescription. Stuart John Layfield is still with us. Bet you hope she doesnt win. I think wall street hopes she doesnt win the election. Im from the state of texas. She bans fracking the first day is what she said. Thats 1. 7 million jobs lost the first day. Stuart the idea that the rich can pay for everything, that is the idea thats being put forward by all the candidates. The rich will pay for this, that and the other. Its simply out of the question. Its not true. Thats seventh Grade Student Council Election running. We will have free pizza for everybody. Whos going to pay for it . I guess the rich kids are. Its insane. Look, its wealth inequality. They have to have something to run on. Thats what theyre running on because you cant run on the economy so unless the economy turns south they really dont have much of a chance. Stuart we are having far too much fun covering this debate. Thats a fact. Better than watching it. John, hold on a second. More for you. We just received the latest read on retail sales for the month of august. They were strong. Really seriously strong. Tell me more. Susan twice the rate expected, up. 4 . The consumer is not behaving like its a recession, right . Basically they bought more autos and cars in the month and online sales continue to be strong. We had prime day in july, so with all the retailers kicking in with their promotions, some people thought maybe we will trail off in the month of august, after a stellar july for Consumer Retail sales. Not the case. It shows that the consumers are still buying, picking up the slack, whereas Business Investment has been slowing because of what they see as uncertainty because of the trade war, and that does not seem recessionary, does it . Stuart no, it does not. Susan a lot of people have been trying to talk us into a recession. Ashley it absolutely makes what the ten democrats said last night completely false. They were describing a country that i dont live in and clearly the consumers of this country dont live in. They were so negative. Everything was awful, it was all terrible. I dont know if anyone buys that. Stuart Bernie Sanders. Ashley the man is angry. Yells all night. Stuart moving on. Look at futures. Smile at this one. We are going to go up this morning. We were going to go up over 100 points. We have tapered that down a bit. We will be up about 70 for the dow, down a fraction on the nasdaq. Then theres juul. The vaping people. They may fight the upcoming ban on flavored ecigs. The Company Reportedly wants menthol and mint flavors to be exempt from the ban. Look at beyond meat. The stock i believe is up again this morning. Yes, it is, just a tiny fraction. Its partnering with a pizza chain on fake meat and wait for it, vegan cheese. We will tell you which one. Carl icahn, leaving the big apple, heading to florida. Another example of the rich fleeing high tax states in droves and of course, taking their money with them. In icahns case, 17 billion. Varney company just getting started. Ney should always be working harder. Thats why your cash automatically goes into a Money Market Fund when you open a new account. Just another reminder of the value youll find at fidelity. Open an account today. Of the value youll find at fidelity. All right brad, once again i have revolutionized the songwriting process. Oh, here we go. I know i cant play an instrument, but this. This is my forte. Obviously, for auto insurance, weve got the wheel route. Obviously. Retirement, were going with a longterm play. Makes sense. Pet insurance, wait, let me guess. Flea flicker. Yes howd you know . Studying my playbook . Yeah, actually. Thats where i feel normal. Having an annuity tells me my retirement is protected. Learn more at retire your risk dot org. Stuart ah, those europeans, they really want to be regulators of American Technology companies. Eu antitrust regulators are going to impose some new rules ensuring that companies which collect data dont misuse the data. Theres facebook, amazon and alphabet in the crosshairs there. They are all down. Microsoft, though, is up. Investor carl icahn, well, hes leaving new york. Hes heading for florida, miami. Reportedly in part for lower taxes. Look, the only surprise to me in this is that he waited until hes 83 years old to get the hell out of dodge. What do you say . Well, look, you look at new york, new jersey, connecticut, the exodus out of that area to not just florida but nashville and charlotte and austin, theres a real demographic shift in this country and yeah, he might have been a little bit late to catch the trend. Stuart i think we are just seeing the start of the mass exodus. What do you think . Well, if you look at tax rates in the northeast, look at infrastructure, look at the quality of education, look at climate, frankly, and look at other parts of the country, the advantages are obvious. I think they will persist. Stuart okay. You are going to get our audience is going to get an editorial on this from me at the top of the 10 00 hour. Next one, just listen to the president on trade. Roll the tape, please. I see a lot of analysts are saying an interim deal, meaning well do pieces of it, the easy ones first, but theres no easy or hard. Theres a deal or theres not a deal. But its something we would k i guess, but were doing very well. Stuart i think hes saying we would consider an interim deal. What do you make of this . I have been saying it for months that i thought there was a plan b. If we couldnt get a big huge grandiose package, why not agree on what both sides have already settled . 90 as mnuchin and others have said is agreed upon so i think there is a chance there may be some other issues. They are never going to solve hong kong or the treatment of chinese dissidents. Lot of really thorny issues. But i think on the trade issues, they are close. China is now buying more soybeans. I think you could agree on 90 . Stuart okay. Next one, President Trump is promising quote, a substantial middle class tax cut to be announced sometime next year. He may announce it but youre not going to get it unless he wins the election. Then you might get the middle class tax cut. Have i got that right . Its a great sound bite for him. Hes not going to get it past nancy pelosi unless he really agrees to a big increase of taxes on the wealthy and corporations. But he can say during the campaign i want middle class tax cuts, its nancy pelosi who doesnt. Stuart would you be worried if any of the democrats, if they won the presidency from last night . No. I thought it was a pretty sorry performance. Then we see this morning a great retail sales report. I think chances of a recession have been grossly overhyped. Yeah, it might only about 2 , 2. 25 but thats three times the growth rate in europe. Stuart got it. Thank you very much. See you later. Look at futures again, please. We were going to be up about 100. Now its maybe more like 60. A modest loss for the nasdaq. Gamestop, the stock thereof has been absolutely pummeled this week. Sales way down. They are closing a lot of stores. Next, we have a wall street analyst who is still bullish on the company and the stock. We will let him make his case after this. Im your cat. 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Com saves you time and money. Make it simple. Make it ship sticks. Shipsticks. Com saves you time and money. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Stuart big day today but look at apple. It is down 1. 5 , three bucks lower. Susan will tell us why. Susan we had Goldman Sachs cutting their price target on the stock, down 26 from their original price target. They are looking at 165 for apple shares. 165. Stuart whoa susan dramatic cut there. The most bearish of all the wall street brokerages. When goldman talks, people listen. Why they expect the stock to fall, they are looking at a material negative impact they say on earnings when it comes to the caccounting method they put in for the new streaming service, apple tv plus, undercutting on price, 4. 99. Will they bundle this with hardware they are giving away for free for any new purchases of ipads, macs, et cetera. Stuart if you bundle it in for free you dont get the revenue which you were supposed to get at 4. 99 a month. Susan right. Therefore it might hurt the bottom line. Stuart 165 . Next case, gamestop. Theres a stock thats gone down 63 this calendar year but our next guest who is the video game analyst on wall street, hes the only one with a buy rating on this particular stock. His name is michael pachter. He joins us by phone. Make your case. Why are you bullish . Thanks for having me. You know, i am just being pragmatic. Im a valuation nut, so when i see a stock that the share price doesnt reflect the cash flow generation, i have my rating accordingly. These guys are generating over 200 million in free cash flow. The company is worth about 400 million. So at their current rate it takes two years to justify an investment, get 100 payback. Stuart would you be are you talking primarily to traders who might buy at 4. 57 where it is now and sell at 4. 65 or are you talking to longer term investors who want to put it away for a couple years . The answer to that question is whether you think they will be around in a couple years. The answer to that is yes. There are new consoles coming out in 2020 for microsoft and sony. Each of those will have an optical disc drive, meaning they will sell physical media. They wont be download only. We learned that in june. Thats when i got really optimistic about gamestop. There will be a next generation of consoles. They tend to last about seven years. Last one was 2013 and so i think until 2027, you are going to have physical media available for purchase. I think these guys end up looking like best buy. They will be the last man standing in physical video game retail. They should thrive. Stuart im out of time but you are the man on this. We appreciate your analysis. You did it without any jargon. Thats really good. You are a goo man. Thanks for joining us. See you again soon. Switch to the futures board, please. We will be up about 60 on the dow couple minutes from now. Back after this. During the fall, everyone who has medicare may be eligible to choose a new Medicare Health plan. But you may be able to choose a new plan right now. If you answer yes to any of these questions are you turning 65 . Do you have both medicare and medicaid . Do you have medicare . And are you losing Employer Health coverage . If you answered yes just once, you may be able to choose a new Medicare Health plan right now. 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So call a licensed humana sales agent today at the number on your screen, to see if youre eligible to enroll today. And say yes to getting the right Health Care Coverage without having to wait for it. Stuart the wall street journal says wework will go public on the nasdaq and its going to make some changes to its corporate governance. More on that, please . Susan they have to. There are concerns about the corporate leadership, especially with the founder and ceo, adam newman. The company will list on the nasdaq probably the week of september 23rd and they basically say they will appoint a lead independent director by the end of this year. No member of adam newmans family will sit on the companys board. There were concerns his wife would be on the board, then have all these stipulations in terms of who they choose to succeed adam as ceo. There is concern about him dumping we shares before the ipo. What does that say about confidence in the company . Stuart they are going ahead with it but how it turns out, who knows. Stay tuned, please. We are on the upside in the early going on wall street. 60 points higher as we suspected as expected, i should say. 50, 60 points to the upside for the dow in the first few seconds. The s p 500, wheres that . Up just a tiny fraction,. 09 . How about the nasdaq . Maybe thats down a bit. Yeah, down just a fraction again. The tenyear treasury yield, look at this one. 1. 83 . Ashley on fire. Stuart thats extraordinary. Literally a couple weeks ago it was at 1. 40 . Okay. That is astonishing. Thats an enormous move in bond prices right there on your screens. The price of gold, where is it . I think the price of gold yesterday was up around 1500. Now 1511. We are returning to apple. Its down this morning, why . Goldman sachs cut its price target all the way down to 165. Ouch. Apple is down three bucks. Amazons down four. Facebooks down a fraction. Googles down four bucks. Microsoft is up seven cents. I own some of it. Got it. John layfield is with us, susan li is with us, ashley webster. John, are all these gains, whatever gains we see on the market today, is this headline driven and china trade . Absolutely. The alleviation that we will have status quo for awhile. We have problems around the world that you cant handicap, brexit, the china trade war. The economy here is very strong. Stuart we have nice momentum going. Up seven days in a row. Momentum carrying us through . I think so. The u. S. Is anyplace to invest money right now. Stuart aint that the truth. Look at google. More on this story. They have been subpoenaed for details related to their advertising business. Ashley its all about domination. What is google doing, are they playing fair, why did they are being asked to give their business rationale why they bought other Companies Rather than compete against them, you just buy them, right . They want to know what were you thinking. Look, the company itself has maintained, google says to suggest the ad tech sector is lacking competition is simply not true. To the contrary, the industry is famously crowded. In other words, google says no to all these questions from attorney generals. Google share, the digital app market, is 37 . Stuart the stock has not suffered from all of this. Wait a minute. The house of representatives wants to read emails from tech executives . Susan the House Judiciary Committee has asked amazon, facebook, apple, alphabet, the owner of google, to provide by october 14th lots of documents including executive emails, communications, Financial Statements and this has to do with their look into anticompetitive behavior. Look at the stock. No reaction. Know why . Because this just adds to the long list from the possible doj investigation which is probably most severe of all of them. And all the state attorneys general that have jumped on board saying lets take a look at the anticompetitive behavior but teflon stocks. It adds a long list. Whether or not theres going to be any action, i think that will move stocks eventually. Stuart apple is the only one seriously moving. Susan thats on goldman. Stuart a new report in the wall street journal says ecig maker juul may fight the feds upcoming ban on flavored ecigarettes. The company specifically objects to mint and menthol bans. Thats what the story is . Susan thats what the story is. This adds of course to the president , his assertion this week that he says he wants to ban all flavors of cartridges especially for vaping and all. So what does this mean for the company like altria which has a big investment in juul, and whether or not juul will ever come to market . Thats a big question at this point. Stuart look at that chart on altria. They have a big chunk of juul. The stock, from late august to now, midseptember, you have gone from 46, 47, down to 43, 44. Not a huge drop. Susan its been priced in, i think. If you look at when that started, that was initially when we heard that a lot of states, michigan being the first one, has already banned for six months at least the sale of flavored cartridges for vaping. Stuart by the way, at 11 00, in our 11 00 hour, we will talk to one of the top officials at health and Human Services. Im going to ask him what if you had to have a prescription to get a vaping device. Wouldnt that solve your problem . It certainly would. You have a lot of kids now vaping stuff from cocaine to meth to opioids. Thats a real problem. Its not just the ecigarettes. Stuart i just dont want to see kids, forget about all the other stuff, i dont want to see kids hooked on nicotine. I just dont want to see that. They are vaping in class. They are vaping all the time. Its something you cant smell, you cant detect. Its a real problem with our youth today. Stuart the varney solution which is a prescription for all vaping devices, i might author a bill he. Check the big board. Modest gain. We are up 44 at the moment. 27,230. Look at broadcom, down 3. 5 . Theres got to be news. Its down ten bucks. Bitcoin, 10,300 this morning. The price of oil, i think its at 55 a barrel this morning. Yes, it is. The national price, the average for regular is 2. 57. Same as yesterday. Susan broadcom lowered their Sales Forecast for this year. Stuart when you do that, the stock goes down. Down ten bucks. 3. 5 . Look at smile direct. Earning the dubious distinction the worst ipo performance on day one of the year. Lauren simonetti joins us. Lauren when you look at an ipo of this size, since the financial crisis. What is smile direct club . You ever heard of it . Its a retainer you can get through the mail. It is a disruptive business. Orthodontists are saying whoa, whoa, whoa. We could see lawsuits because of this, slow down, you are disrupting our business. That could be the appeal. Yesterday when we saw the share price tank 28 , worst first day performance this year. We are seeing somewhat of a recovery today. Investors might be saying okay. Stuart that aint much. Lauren maybe the disruptive appeal of this stock, theres something to that. Stuart fascinating. Disrupting the dental industry. Lauren you dont have to go. You can basically through the mail do a 3d print of your mouth. They will send you a kit. Its 1900. They say in six months you will have straight teeth. Stuart straight teeth. I thought it was white teeth. Lauren might do that too. The perfect smile. Stuart im in. Lauren are investors smiling today . Wheres the shares . Stuart no. Lauren thats yesterday. They are up in the premarket today. Stuart its not a recovery. Its up 60 odd cents. Down 28 , then up 1 . Lauren we have another ipo today, though. Cloud fare. Well see how that goes. This talks about the ipo market of unprofitable companies, unicorns coming to market. How are they doing . Stuart not well in this case. Smile direct is back up 3. 7 . Whole foods Cutting Health care benefits for just under 2,000 parttime employees. This starts next year. Why are they doing that . Susan basically in the past, employees needed to work at least 20 hours a week in order to get benefits and buy into the health care plan. Now they will need to work at least 30 hours and less than 2 of the 1900 employees actually work more than 30 hours. Of course, this is cost cutting, as you know. They are trying to compete with the likes of walmart, the biggest grocer in america, and this is how it works. Especially when you are trying to make inroads in retail sales and trying to make inroads in a market that youre not winning in at this point. Stuart amazon right now, 1840. Not bad. Last nights debate, lets get to that again, please. It was such fun. John, andrew yang wants to give free money to everybody. Lets suppose that it happened. Just suppose on the extraordinary situation that it might actually happen. If it did happen, would 1,000 a month for every adult in the country help the stock market . It would be huge for the stock market. Absolutely. Consumers, 70 of gdp. If you are giving free money to everybody, its going to help the stock market. It tanks our country. It ruins our country, absolutely. But is it good for the stock market to give free money to people who will go out and spend it, yes. It will be good. Its a horrible idea. Stuart thats not the only freebie thats being offered. Free college, free education, free health care, et cetera, et cetera, et cetera. Is that good for the stock market . No, its not, because of spending. We have profligate spending. There are trillion dollar deficits and almost 3 growth. Thats inexcusable. We cant add to that. Thats what the democrats that are running want to do. Stuart we are up 50 pois on the dow industrials. Im looking at big tech. They are all down. The dow industrials are up, what, 49 points. Its that time, folks. Just for you, john. Youre out of here. Im the only one . Stuart we cut down the number of guests at 9 30. We are really moving fast. Susan hes special then if you cut down the number of guests. We only hav you. I feel better about being ejected. Stuart er out of here. Big board shows a gain as we said, 50 points. Thats the way we are as of now. Heres my takeaway from the big debate last night. If a democrat wins the presidency, we should all b worried about our jobs, our income, and our retirement. My take coming up at the 11 00 hour on that one. Later today, Actress Felicity Huffman will be the first parent sentenced in the College Admissions scandal. We will tell you how much jail time she could face. Walmart expanding grocery delivery subscription nationwide. 98 a year gets you unlimited Grocery Delivery Service right to your front door. Next, a guy who knows more about retail than just about anybody. He loves what walmarts doing. Calls it the future of retail. Stay tuned for that one. Well be right back. I get it all the time. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. Lease the 2019 rx 350 for 399 a month for 36 months. Experience amazing at your lexus dealer. For 399 a month for 36 months. All right brad, once again i have revolutionized the songwriting process. Oh, here we go. I know i cant play an instrument, but this. This is my forte. Obviously, for auto insurance, weve got the wheel route. Obviously. Retirement, were going with a longterm play. Makes sense. Pet insurance, wait, let me guess. Flea flicker. Yes howd you know . Studying my playbook . Yeah, actually. Stuart 12 minutes in, the dow is up about 60 points, 27,242. Then theres beyond meat. Teaming up with a big pizza chain this time. Okay, ashley, i have two questions. Number one, which pizza chain. Number two, wait for it, what the devil is vegan cheese . Ashley yes. Well uno is the one theyre partnering with. Vegan cheese, i have never had vegan cheese. Im a huge cheese fan so i want the real thing. However, those who swear by it say its actually pretty darned close to the real thing. Only thing it doesnt do, it doesnt melt like real cheese when you heat it up. Apparently. But you can get all sorts of different types of vegan cheese. You name it, you can get it. But uno pizzeria, the latest to jump on the trend of beyond meat. They will start with nine east coast locations, going nationwide this fall. More and more people are jumping on fake everything. Stuart there was an ipo, beyond meat, that did incredibly well. Best performer of the year thus far, i do believe. Susan roku as well. Stuart yeah. Yeah. That was not an ipo this year. Susan okay. Fine. Calling me out. Stuart got you. Walmart adopting that 98 a year Grocery Delivery Service, Subscription Service. Thats the model. Seems to be working. Our next guest says grocery delivery and a Subscription Service is the way of the future. Look whos here. Jerry storch, who knows real estate better than everybody. You do, you really do. You say walmart is the way of the future. Make your case. Lets put this in context. You have walmart is trex and amazon is triceratops and they are going at it bigtime. This is the next great battle. Im sure you saw that retail sales report today. One number was eyepopping. Ecommerce sales were up 16 on a year over year basis, when you compare this august to last august. 16 . The consumer is very very strong and what was down . Department stores, down 5 . Its all moving online. Now, in hard goods space, amazon has a huge lead. They are ten times, ten times the size of walmart. Com for Home Delivery of everyday items but in grocery, walmart is the nuer onerocer in the country and the world. They are huge in the grocery space. They are not going to give it up to amazon without a hard fight. Already, you see walmart growing rapidly in what we call the pickup in the store so when you drive up to the store to pick up the groceries you bought and you drive them home. The next big battle is going to be delivering those groceries to your home. This has been a very difficult market to go after. Why . Because groceries are bulky and heavy. You are delivering a lot of water and soda, things like that. Very expensive for that last mile. So i pay the subscription one time, dont have to worry about it anymore. As many times as i want, they will deliver to my house. Whats still not solved, what has to be solved before this really explodes, is what i call the last ten feet. How to get those perishable products from the curb into your icebox. Your refrigerator. Then talk about letting people into the home, that hasnt been solved yet. Thats keeping a cap on this. Because nobody likes to carry those heavy bags of groceries into the house. They havent quite solved that problem. Amazon bought whole foods, i have to say that was one of the biggest blunders they made because they bought the wrong grocer. A relatively small grocer, high end, upscale, kind of a quirky Natural Foods positioning, and it hasnt given them what they thought it would in terms of battling walmart in grocery. But you know, they are going to keep trying. Thats whats going on. Stuart the two retailers that really stand out for me, costco and walmart. Would you choose between them . Which is the better retailer . Look, they are totally different business models. They are both amazing. I said many times i think costco is one of the greatest retailers in the world. They operate a razor thin operating margin and deliver tremendous value every day, in a warehouse setting. But they only carry a few thousand skus. You cant get everything you need. A lot of times it comes in giant sizes. So you go there for specific needs you can get in that environment. Walmart, meanwhile, meets all your needs on an everyday basis. Largest grocer in the world, best for health and beauty care, best for other things, and they have finally drawn the line in the sand as you can see with this move with subscription groceries to say we arent letting amazon go any farther. If they had drawn that line in the sand a long time ago, amazon wouldnt be amazon today. It would be walmart we would all be shopping at online. Very different companies, costco and walmart, but both are going to be winners. There is no retail apocalypse. Just Companies Like walmart, amazon, costco, target, dollar general, taking the share away from the dying sectors Like Department stores and others. Stuart can you restrict yourself to 20 seconds and tell me why men are not wearing suits and ties any longer . Because the workplace has become casual. Only buffoons like you and me are wearing suits and ties anymore. Anywhere in the world, like investment banks, they are dressing casual. The mens market for apparel is growing tremendously rapidly, just not in suits and ties. Stuart thats what happened to mens wearhouse. Parent company tailored. Oxford went down as well. We are dressing differently except you and i. Its a refrigeratorefrigerator. My grandfather called it an icebox. Thank you, jerry. Appreciate it. Thanks very much. Check the dow 30. Lets see the split there between winners and losers. Its about even. It really is about an even split, winners and losers. The dow is up about 60. From fitbit to the apple watch. Fitness trackers are becoming more popular, they are, but would you pay 30 a month to get the data that the tracker collects from you . Up next, we have the ceo of a company that is offering just that. This is the age of expression. But shouldnt somebody be listening . So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. That could allow hackers devices into your home. Ys and like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Stuart in the College Admissions scandal, Felicity Huffman is going to be sentenced today. What could be her sentence . Susan prosecutors are asking for one month of jail time, 20,000 in fines. Her lawyers, meantime, Felicity Huffman of desperate housewives fame, wants no jail time, 250 hours of Community Service and is offering 20,000 in fine as well. Given that she has one of the lowest amounts, 15,000 in this College Admissions scandal, that was to tweak her daughters s. A. T. Scores, compare that to Lori Loughlin, the other famous name in this, who paid 500,000 to get her daughters into usc. In fact, Lori Loughlin has not pled in this case, so someone has to be made an example of. Will it be felicity or lori . I think people are saying lori will probably get a harsher sentence if she is found guilty. Stuart we shall see. Thank you. Would you pay 30 bucks a month for a fitness tracker . Joining us is the ceo of whoop, will ahmed, who charges 30 a month for his fitness tracker. Why do i need to pay you 30 a month to get my information when i can go to fitbit or apple watch and get the same thing for free . Well, really what we have developed is a 24 7 lifech thats going to help you understand everything about your body. I think theres a lot of people out there who are exercising or are stressed or are not sleeping enough, and they are asking themselves dhhow do all these Different Things in my life affect me. What we have done at whoop is developed technology really across hardware and software and analytics designed to continuously understand your body. We are able to tell you things about how much you need to sleep to recover for tomorrow. We are able to tell you based on your recovery whether you should exercise or rest more. Whoop is the first fitness product to tell you to actually rest. Then we will actually measure all the stress and all the strain on your body over the cove course of a day. Stuart look, its all good information. But you are selling really to people who, a, have 30 a month and b, are really concerned about their fitness and lifestyle and the impact on their body of all the stuff that theyre doing, sleeping, eating, et cetera, et cetera. I mean, do you have a market of people who are prepared to pay that much for that information . Well, to clarify, you can also get plans for as low as 18 a month. Having said that, we do see a lot of demand right now for better understanding your body. These arent just people who are athletes. These are lawyers, executives, doctors, cops, firemen, people with stressful jobs. People who want to understand their bodies. We have built the best 24 7 monitor and coach to really help them understand their bodies. Stuart thats what gets me. Thats what gets to me, the idea that something i wear around my wrist or wherever is going to coach me through my physical life. I kind of draw the line at that. Well, you have to, one, want to improve. Lets not forget there does need to be some level of motivation here but fortunately, our audience is motivated. This is a group of people thats competing in their daily lives and wants to be a better version of themselves. What whoop is able to do, its able to dial that person up or down. If you need to get more rest or you need to exercise more. Lets be clear, this is pretty passive, too. Im wearing this monitor on my wrist, it doesnt have a screen on it or anything. Its meant to be very passive. Really, you can check in with an app whether on your iphone or android and thats going to tell you where you are in your day and what to do next. So it can be as involved or not as you really want. Stuart okay. Look, i understand and lets see how this thing turns out. Will ahmed from whoop. Thank you for joining us. Appreciate you being here. Thank you, sir. Thank you. Stuart next, will Bernie Sanders defending his brand of socialism at last nights debate, well, he did defend it. We will talk about it. He says what he wants is nothing like whats going on in venezuela. You will hear it all. Back after this. During the fall, everyone who has medicare may be eligible to choose a new Medicare Health plan. But you may be able to choose a new plan right now. If you answer yes to any of these questions are you turning 65 . Do you have both medicare and medicaid . Do you have medicare . And are you losing Employer Health coverage . If you answered yes just once, you may be able to choose a new Medicare Health plan right now. Call humana at the number on your screen to see if you qualify. And well send you this helpful medicare decision guide. The call is free, and theres no obligation. 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Stuart carl icahn is leaving new york, and he is taking most of is employees with him. Theyre relocating to, florida. The high tax, largely democratrun states like new york are paying a very big price for their decades of economic incompetence. It is a modernday exodus, and it is becoming a flood. The rich are leaving in droves taking their money with them. Some who say, good riddance, but more sober democrats are quietly very nervous. So they should be. Carl icahn is mr. New york. He has lived and worked here all his life. He owns homes and runs his business here. There is a stadium named after him. There is Medical Center named after him. He is worth over 17 billion and he is heading south. In messages to his staff, he wants quieter life in a warm climate. He reportedly told associates it is tes put pushing him out. His estate is worth 17 billion. In florida there is no estate tax. David tepper, Paul Tudor Jones are already gone. You cant blame them. If you make good money in new york city, you will lose 60 cents on every dollar you earn. Sometimes more than that the in a city where the mayor has no time for you. He want you to pay even more. So does the governor of new jersey. So does the governor of connecticut. So does the governor of illinois. Democrats all. If any democrat wins the 2020 election they will to after everything that you have got left. Pile on the rich time. It is all their fault. Take their money, you can solve every single problem. What utter nonsense. If tax to the max was a success, hightaxed states would be booming, but theyre not. Low tax republican states are growing fast, texas and florida. There is no sign this is going to change. We have yet to hear any democrat at the state or National Level suggest a tax cut of any kind. Meanwhile, mr. New york is packing his bags. He leaves new york march 31st, next day, he opens up in florida. He wont miss a beat. But new york will surely miss his money. The second hour of Varney Company is about to begin. Stuart that was good. We like that. Welcome to miami. I think i got that right. David dietze with us this morning. You heard my take on mr. Icahn leaving for florida. I think is a start of much bigger exodus, are you with me . Absolutely. Im in Money Management business. I know knows my clients are leaving my state of new jersey. David tepper. Taxes are the symptom. The problem is spending and spending it out of control. I would have to submit you look at union Cadillac Health care plans. The fact that they dont have defined Contribution Plans that the rest of us have. Stuart you also have to look at estate taxes. Go to florida. A lot of money, leave it to your heir, there is no estate tax at the state level in florida. Across the board. Much better deal down there. Local property taxes same thing. Everyone is making a move. Just the beginning. Stuart theyre leaving you, david. Personally we have telephones. Stuart stay there, please. Look who is with us in new york city today, congressman lance gooden, republican from the state of texas no less. Sir, welcome back to the program. Thanks for having me. Stuart i take it youre cheering this on . You would love to take all the money out. It is fascinating to watch the failed policies of these liberal states and ramifications. Weve seen californians moving to texas in droves. Seems the exodus of new yorkers going to places like florida and staying. Stuart do you have any idea how many people are fleeing to texas, this tax exodus . I was told at some point thousand as day are actually moving to texas, some ridiculous number that sounds so big you cant fathom it. Were adding i believe three congressional seats. Stuart losing congressional seat or two, im not sure how many. They lose seats. Texas gains them because of population flow. As companies move, theyre sending employees with them. Google had an operation here. They opened up shop in austin. I talked to employees who were thrilled from moving to new york where they would get a huge tax break for relocating to texas. Stuart stop smiling because youre from texas. Congressman, hold on, i have more. Big money people are fleeing to fa. Who else . Susan big dea likes of Paul Tudor Jones, david tepper man, carl icahn. Why . Because there is zero income taxes for the state. Property taxes are lower as well as 5 . Compare that to new york which is at 6 . You know, when you have billionaires leaving. Eddie lampert as well. 1 of the population contribute 40 of state tax covers. That is a big deal. Not just the billionaires are leaving as well. Look at average daily residents that are basically hiking out of new york. 277 each and every day. That is 200,000 that left new york last year. Yeah, city. Stuart the city . Susan los angeles lost 201. Chicago lost 161. This is every day. You know where theyre going . Half the top 10 cities have actually seen the biggest influx are in florida. Stuart good lord. Those numbers really put meaning to the story. Thats extraordinary. Good lord. Im going to move on. We made other point right there. Congressman is still with us. A debate last night, quite a few shots were taken at the president. President Kamala Harris placeally blamed him or the el paso shooting. Several candidates referred to him as a white supremacist and a racist. Is that a Winning Strategy . If its a Winning Strategy to get through the far left primary know its a losing strategy in november. Kamala harris attacked joe biden couple months ago, that was her biggest day yet. She is suffering. Lower tier candidates going all out against joe biden and against the president. I think at the end of the day when we get toed middle of 2020 they have their nominee set, the American People will go who delivered the greatest economy in 50 years, donald trump. Stuart houston is where debate as, Americas Energy capital, that is my opinion, fossil fuel capital. Candidates in that city said would get rid of fossil fuels. Doesnt that make a difference to the texas vote which is heading to the left . I cant believe that will do that. Far left Texas Democrats recently thiseek voted against their party when we took up antienergy bills this week. Republicans voted against it but some of the Texas Democrats of the delegation, i wont name their names, i dont want to get them in trouble if you look at the voting record, Texas Democrats voted with republicans because they know how Important Energy is to our texas economy. Campaigning against the Energy Industry is not a winning bet in texas if youre trying to win electoral votes or senate seat. Stuart youre a texan. Welcome to new york. I dont think you will stay very long. A great place to visit. Stuart actually is. Lance, thank you, appreciate it. Check that big board. Very modest gain on our hands here. Up 40 points for the dow industrials. Were still quite away from record highs. But not that far away. Look at apple, a price target, a target price cut from Goldman Sachs. They say that thing is going down to 165, down three bucks now at 219. David dietze back with us again. I read your stuff. You like altria. Before you explain yourself, lets tell our viewers that altria has a big stake of juul, the vaping people and the vaping people are under sharp attack these days but you still like altria. Make yourself clear. My clients come to me, david, market alltime highs i have to worry about the fed, worry about trade wars, i have to worry about brexit, how can i escape all that . Fixed income and bonds. I dont get any yield. Al tree altria is the answer. I dont see it as cigarette company, but a lifestyle products. Huge stakes in wine, marlboro, marijuana. Stuart cancel how you use the question, lifestyle product. Tobacco obviously the fda is clamping down, i support the efforts, but the end. Day government will not tell young people what they are going to do. Stuart what is the yield on altria . 7. 6 . Stuart youre kidding me. Not just high yield, it increased 10 per annum last five years along with earnings. Stuart if i buy altria at 42 a share, as of right now im looking at a 7 yield. 7 1 2 , absolutely. Stuart that is secure . I will not lose it . Earnings keep supporting it. Not something capital intensive. Icing on the cake they split up 10 years ago from philip morris. There is domestic and international. They could come together that will be a huge winwin. They can cut costs and have the globe as a playing field. Stuart do you have any moral qualms investing in Tobacco Company . I personally dont support that. On other hand he there is ace market for it. They have huge stake in kronos, medicinal marijuana. They are going where people are going. Stuart david, you make your case, 7 1 2 yield is 7 1 2 yield. Thank you so much. Bernie sanders last night defended his brand of socialism. He said it is nothing like what is going on in venezuela. What kind of socialist is he . Were asking a reformed socialist about that in just a moment. Were going to set the record straight on china trade. A lot of confusion. Whether the u. S. Will make a short term deal with china. The man who has the ear of the president will join us this hour. President trumps gop challenger mark sanford is on the show. He says the Republican Party has lost its way. He is on the show. We will allow him to make his case. Fact is, every Insurance Company hopes you drive safely. But allstate actually helps you drive safely. With drivewise. It lets you know when you go too fast. And brake too hard. With feedback to help you drive safer. Giving you the power to actually lower your cost. Unfortunately, it cant do anything about that. Now that you know the truth. Are you in good hands . Stuart were holding on to a very modest gain. 28 points up for the dow industrials. 27,211 is the level. Bernie sanders defending his style of socialism in the debate last night. He says what he wants is not like what is going on in venezuela. Watch this. Anybody who does what maduro does is a vicious tyrant. In terms of democratic socialism to equate what is going on with venezuela with what i believe is extremely unfair. I tell you what i believe in terms of democratic socialism. I agree what goes on in canada, scandinavia, guarantying health care to all people as a human right. Stuart okay. Joshua is with us. He used to be chair of the Young Peoples Socialist League but he changed these days. Turning a very different tune here. Look, i think bernie actually has a point. I think there is enormous difference between the socialism, marxism, communism of venezuela and the social democracy of canada and scandinavia and what Bernie Sanders wants. Where am i going wrong here . Two things. One is, now in the debates in trying to come across well he makes a distinction but over the years he has always found good thinks to say about castros cuba, even about the soviet union. In the old days he absolutely loved the sandinista regime in nicaragua which he praised to the skies. He is being a little coy what he has believed over the years. But the second point is, if you look at scandinavia, lets say or canada, those are countries that have more Government Spending than we have, higher taxes, not just on the rich. On everybody. And but they also preserve their business sector. They have, in scandinavia dozens of billionaires. They have very profitable businesses. And they have learned there, they can have a big welfare state but they need a thriving Business Economy to generate the wealth that pays for that welfare state. But if youre hear sanders talk about businesses in america, his plan for health care is to put the Insurance Industry out of business, put the pharmaceutical industry out of business. His plan for the environment is to put the Energy Industry out of business. And he speaks with such rage against business profits. Stuart he always looks angry. Rarely smiles. He might laugh at somebody but rarely with a joke. But that is another story. Another subject that came up last night is medicare for all, and how to pay for it. Senators warren and sanders didnt really have an answer how to pay for it. Just listen to joe biden. He had a plan. Roll it. My plan for Health Care Costs a lot of money. It costs 740 billion. It doesnt cost 30 trillion. How are we going to pay for it . I want to hear tonight how that happens. Thus far my distinguished friend, the senator on my left has not indicate how she pays for it. And the senator has in fact come forward and said how he is going to pay for it but gets halfway there. Stuart ive got a question about joe biden whether or not he is a socialist. Jonathan, if he builds on obamacare as he says he will, does that make him a socialist . No. I dont think it makes him a socialist. I think it, it leaves him with a question of how were going to pay for all of this. The same question that he put to sanders, so tellingly, because their plan is just kind of out of this world in terms of the cost but, even for a more modest plan, were facing, we have a one trillion dollar deficit in our federal budget. We also have the report from the Medicare Trustees that the, the Medicare Trust fund is no longer going to be solvent as of the mid 2020s. And thats medicare as it exists, without expanding it, without adding anything to it. So even bidens one trillion dollar program, as he describes it, comes, it is not socialism but it comes with a big question of, how are you going to do that . Stuart i can understand that, real fast, can you give me 20 seconds why you were the chair of the Young Socialist League and now youre not, what happened . 20 seconds. The french leader who started out as a young radical himself, any man who is not a socialist when he is 20 has no heart. Anyone still a socialist when he is 40 has no brain. Stuart that was winston churchill. No that was claremont, often misattributed to churchhill. Stuart well take it. We appreciate it. See you again soon. Thank you, stuart. Stuart as you know, im sure by now if you watch the program the Trump Administration is banning plan on flavored ecigarettes. Juul first agreed with the plan. No report from wall street journal, juul is considered pushing back on it. Well tell you what juuls argument is. Popeye is figuring out a fix for chicken sandwich shortage. Theyre telling customers to fix their own buns. Well tell you what on earth is going on. Ashley wow [laughter]. I get it all the time. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Stuart a quarter of 1 up for the dow industrials. How about popeyes, okay . They have a solution to the shortage of their popular chicken sandwich. Apparently there is a shortage of buns. Lauren simonetti with us. Before we get to the solution, why a shortage of the buns . It was a shortage of the sandwich t was a popular sandwich about a month ago. A wall street analyst who upped his ratings on popeyes not a public company, look at traffic. It is doubling at neighborhood popeyes. The sandwich was so popular, the chain ran out. Theyre saying tongueincheek, byob, bring your own bun and bread, well give you three chicken strips, make your own sandwich. Stuart are they making faintly sexual i dont think so. Stuart bring your own buns . Maybe they should have said bread. Stuart that wouldnt work. Chikfila has popular chicken sandwich. This was competition for them in the fastfood wars. Theyre laughing over here. Susan im sorry. You went right in for that. I didnt even think of that. Stuart my talk war inability ashley were laughing with you, stu, not at you. Big difference. Stuart youre not like Bernie Sanders . Ashley no. Laughing with him. Stuart thank you, susan. Will come back for good in the near future. Will not be a limited item. It was successful. Stuart im moving on because im told to do so. There is another piece is a chain conquered by beyond meat. What are they doing . Uno pizzeria is adding a beyond burger to their menu. They sell more than pizza. Theyre also adding vegan cheese on your peas say, we asked you before, what is vegan cheese . I didnt. Im not in the market for any of this stuff. However i Pay Attention when im in restaurants and in food store. There is a lot of space now on those store shelves and on those aisles for plantbased everything. Stuart really . I dont see it in peoples carts as much. It is there. You have the option but who is buying it . Stuart it is available in stores and in restaurants but do you actually buy it . I mean the jury is out at the moment. We havent seen any numbers, have we . Ashley no. At dunkin donuts. Not in my car. Kfc. Stuart i wish i would have invested in beyond meat at ipo. It is now at 154. I would have taken that. You have to admit this, there are conflicting headlines about whether or not were going to get an interim trade deal with china. Our china watcher will try to set us straight and me, after this. Last night on the democrat debate stage, beto orourke went for not just gun control but gun confiscation. He will take them away from you. Im asking tomi lahren what she makes of that. That is coming up in the 11 00 hour. This is the age of expression. Everyone has something to say. But in a world full of talking, shouldnt somebody be listening . So. Lets talk. We are edward jones. With one Financial Advisor per office, were built for hearing whats important to you. One to one. Edward jones. Its time for investing to feel individual. Stuart you like this one, dont you . Susan im excited. Because i actually knew it. Stuart this is really nice song. It makes you feel good. I think it was 1967, summer of love. I think, i think. You dont remember that but i certainly do. Breaking news, happening now. New sanctions on north korea. Ashley yes, announcement from the treasury department. These are cyber secure entities, according to the treasury department. The Lazarus Group, blue naroff, controlled cyber groups but they say are controlled by north korea. They make attacks on critical infrastructure. Say the treasury department. By the way the u. N. Is also in on this. The Lazarus Group, they believe was the one behind the 2017, i dont know if you remember this the virus where, it was, affected cyberattacks, i think forget what it was called, wannacry. That is what it was. Wannacry, that was devastating attack in 2017. It affected 150 countries, the uk and u. S. Shut down more than 300,000 computers. It is believed the Lazarus Group or subsidiary thereof was responsible. Stuart north korea did this . Ashley yeah. Stuart thank you, ashley. Ashley sure. Stuart lets update the wework ipo. This sounds dramatic. Susan it does. Dont forget they started off at valuation of 47 billion, in a private round of the funding. As we march closer and closer to the september 23rd ipo. It is expected to take place later on this month. Looks like the valuation has gone down to 10 billion. Stuart 10. Whoa. Susan sources according to reuters are saying that theyre looking at valuation of just 10 billion. This is concerning. Also dont forget this morning were going to list on the nasdaq, putting a lot of handcuffs on cofounder and ceo adam newman. They diluted Voting Rights in shares that he owns. Bringing in a independent director on the board by the end of the year. Putting handcuffs on the fact he cant sell shares a year after the ipo. He cant sell more than 10 of his Share Holdings in the second and third years of the ipo. Why . He had hundreds of millions of dollars he sold before the ipo. And in fact he has taken out 740 million in loans against the shares that he owns in the company. So people are concerned about corporate governance, leadership, how much this company is actually worth. Stuart youre right. It has come from 47 billion to probably 10 billion. Susan according to reuters. Stuart that is drastic. Reuters said it. Susan no decision has been made. Stuart no decision has been made. Thanks, susan. Lets get to china trade. A lot of confusion whether or not mr. Trump would make a partial, quick deal here is what the president said about it. I hear a lot of analysts say interim deal, well do pieces of it first. There is no easy or hard. There is a deal or there is not a deal. Something we would consider i guess. But were doing very well. Stuart a little confusing there. Come in china watcher michael pillsbury. There is confusion here. Last time you were on the show you sat next to me. I said maybe well get an interim deal. You said no, no, stuart. That is not going to happen. President trump will not do it. Straighten us out. Will President Trump even think about an interim deal . Well, you just played the clip where he said he would consider such a thing. Stuart yeah. I refer to it as the Stuart Varney interim deal. Stuart thank you, but, he will consider it. Because youve been very specific about what you like to see in it. But the president also said in the clip you din play i think, he would like to pet get the whole deal done. That is the important phrase. Stuart yep. This is negotiation. So the chinese have something to say about all this they have been doing quite a few things themselves. Stuart didnt the chinese say were good for a 40 deal, well talk about 40 of the deal but 20 is off the table, nonnegotiable, isnt that what they said . This is unauthorized leak that the wall street journal ran, 40, 40, 20, now. I didnt put much stock in that. That is a negotiating tactic. They have a lot of respect for President Trump as a negotiator. They translated all of his books. They do a lot of things that are technical to try to iluence President Trump. Doesnt seem to be working. He is sticking to his main strategy, china will not pass america. D that six or seven times in public. Stuart youre discounting the idea of a small interim deal, basically said not going to happen . Im quoting the president who says i would rather have the whole deal. I think we ought to stick with analyzing the president s words, his tweets, not pg attenon to unauthorized leaks from socalled advisors. That is not, you have a lot of influence, stuart. If you were to come out this morning who should be the next National Security advisor to President Trump, that might be part of the process. Stuart i dont think do you have a favorite choice yet . Stuart flattery is the mothers milk of television but you will not get to me like that, lad. The president watches. Of retweets you. Stuart im happy about that. Hold on a second. There is more china trade news. American farmers getting some relief from china tariffs. Explain this one. Susan goodwill gesture after President Trump said he will delay tariffs on the 250 billion worth of chinese goods until october 15th. Stuart what is it now . Susan looks like they will be reprieved from the punitive tariffs of 30 according to some estimates. Stuart no. Soybeans and pork, from america will not have these extra tariffs put on them by the chinese . Isnt that what i said . Stuart that is the development. That is right up front, thats the headline. Susan yes. Stuart what do you make of that, michael . Stuart, susan this, is about 10 of concessions chinese made. They like to do it in a public way to get credit for it. They opened up the Financial Sector for wholly owned american companies. They passed a new Foreign Investment law. Theyre expanding socalled shanghai free trade zone model to another 10 cities in china. There is quite a long list. Theyre feeling pain. President trump is quite clear about this were doing well for two reasons. One, china is getting more desperate to make a deal. Secondly he thinks they are losing 3 million jobs. He said theyre losing, this decoupling phenomenon that President Trump hasnt caused but it is happening. He thinks were doing well in the negotiations. What susan is reporting, it is another example of that. Another bigger goodwill gesture to move the talks along. Were still nowhere near going back to what they basically agreed to in early may. Stuart okay. Okay. But it seems like there is some progress here. The atmosphere seems to be improving. Yes, thats true. Stuart we can say that, can we . Thats true. Stuart michael pillsbury, thank you so much indeed. I will talk to you later about the National Security advisor. Thank you, michael. More on this, back to the government crackdown on vaping. The journal reporting that juul, big Vaping Company of course, may push back against the governments proposed ban on flavored ecigs. Grady trimble has been following this one for us. You tell us what is juuls argument . Reporter well, juul originally said it would support this ban on nontobacco flared ecigarettes. That would include the fruity ones like mango but ones like mint and menthol. There are reports there is internal debate behind the scenes at juul maybe pushing back, trying to keep the mint and menthol flavors on the market and the reason for that, those are the ones similar to cigarette flavors, menthol cigarettes. The argument is, the foal, if we want to switch smokers from Tobacco Products to our vaping products we need to offer them these types of flavors, mint and menthol. There is some business motivation behind this too, stuart. Juul says or it is reported that 80 of its sales are from these flavored products. Keeping mint, one of its most popular flavors out there for people to purchase, obviously is incentive to push for that. Stuart i can see that. Grady, thank you very much indeed, good stuff. Altria which has a big chunk of juul is down, but still yields 7 1 2 in dividend payments. Well ask the health and Human Services people about this next hour. I want to know, im going to make, im going to make a suggestion, the best way to regulate this stuff, the best way to regulate vaping, surely require a doctors prescription for a vaping device. I know it is draconian, i know it is extreme but i will propose it. Next we have one of President Trumps republican challengers on the show, former South Carolina governor and congressman, mark sanford, not happy with the state of the Republican Party. He said they have lost their way. More varney after this. Experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. Lease the 2019 rx 350 for 399 a month for 36 months. Experience amazing at your lexus dealer. Liberty mutual customizes fyour car insurance, for 36 months. Hmm. Exactly. So you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, Liberty Stuart it has been like this all morning. A very modest gain for the dow industrials. 40 points higher at the moment. 120 odd points away from alltime record high. Now this. Not just democrats has to worry about next year. Several republicans are challenging him in the primary. One of them is mark sanford, former South Carolina governor and congressman and he joins us now. Governor, you say that the republicans have lost their way but look, under President Trump we have tax cuts, prosperity, and a booming economy. Isnt that what republican want . Well as you well know, stuart, in essence you can buy growth. You can buy growth in a company, you can buy growth in a government. I would argue we bought some of our growth at great cost in terms of indebtedness. Republicans have always stood for sound financial footing. I think we have lost our way given increases in spending weve seen of late, latery record deficits recorded and just talked about yesterday in the papers. Stuart is their your main point . Is that the main point, were going deeper and deeper into debt and it is trumps fault in part and you dont like it . Yeah. Thats the central, i lay it out on my website, marksanford. Com. What i say, the central message of this campaign weve got to do something about debt, deficit, Government Spending e were at a tipping point. I honestly believe that. Stuart look, weve got a deficit this year of approximately, almost a trillion dollars. And it is growing. Yes, sir. Stuart it has been growing for a long, long time and nothing happens. I mean there is no, at the moment, i dont see a downside. Not like a sudden crash of some sort. Like suddenly banks run out of money. It is not like that. It is not an immediate problem, is it . Well, i respectfully disagree in that, it is an immediate problem. As we all know whether on a businesss Financial Statement or in a familys budget, there is a tipping point. I would argue that were at that tipping point, because we have never run what is projected which is trillion plus dollar deficit over the next 10 years in a peacetime relatively benign economic environment which is the case right now. Weve never had this level of indebtedness in peacetime which is where we are right now. Obviously the spending that drive both. So what i would respectfully submit, that we are at a tipping point. The numbers are in fact alarming. You could come up with a lot of different bites at the apple. Look at the length of this economic expansion to your point. It is double the length of any other expansion in terms of the average since world war ii. And when things begin to turn down, it is going to put acute pressure on the financial picture of our country. Stuart okay. Historically, just one quick point, historically, as weve gone through downturns as we do on cyclical basis it has been a five and five rule. The fed reduced rates five points, combating recession. The federal government level we have seen deficits spiral up five Percentage Points up with fiscal policy right now we do not have the tools in the tool kit where we are on both fronts, trillion dollar deficits, where the fed is. I think were at tinderbox point. I think were at very vulnerable spot. Stuart you listen to the democrat debate. You know what democrat policies are. You know they would expand the deficit like you wouldnt believe. Are you worried about criticizing President Trump and republicans and allowing the democrat to run that deficit up to the sky . No. I would agree with you. I sent out a tweet last night. I dont send many tweets. This is crazy. A debate of more versus more, i totally agree with you. What i would say, there are a lot of sports teams playing tonight in South Carolina and they scrimmage this week. They are made stronger because they scrimmage. I think there is value within the Republican Party. I think were strong as a party, consequence of debate on spending. Stuart let me leave it here. You will make a point, not necessarily going to win. Mark sanford, we appreciate it. Pleasure. Thank you. Stuart got a new tweet coming from the president. I will read it for you. Illegal immigration cost the u. S. Over 300 billion a year. There is no reason for this and things are being set in motion to have this number come way down. Democrats could end loopholes and it will be a whole lot easier and faster. But it will all happen anyway. Very stupid to negotiate a trade deal and illegal immigration, tremendous cost and burden to our country. They are both coming along very well and some day in the nottoodistant future america will see a positive change. Remember, america first. Here is what we have coming up for you, last night on the debate stage, Bernie Sanders called Climate Change a catastrophic crisis. Elizabeth warren said its a threat to every living thing. They will not like our next guest about what he has to say about green energy. It is not really green. Sad news to report, rocker eddie money has died. Best known for songs, two tickets to paradise and, take me home tonight. He was diagnosed with stage 4 lung cancer. He was 70. Stuart at the risk of sounding like a broken record, weve been like this all day, 40, 50, 60 point higher for the dow. Thats where we are, up one quarter of 1 as we speak. Not much mention of the Green New Deal at last nights debate. There was some talk about Climate Change though. You better watch this. We will address the catastrophic crisis of Climate Change and transform our Energy System away from fossil fuel. I refuse toostpone any longer taking on Climate Change and leading the world in taking on Climate Change. We need to work on every front on Climate Change. It is the threat to every living thing on this planet. We are running out of time. Every time the scientists go back they say we have less and less time than we thought we had. Stuart i think you get the point. Daniel turner is with us, president of power the future. Welcome back, daniel. Good to see you. Great to see you. Stuart what is this about green energy not being green. Explain yourself. It is not. This is business show. Im giving my first stock tip, right . If you want to buy green energy, believe in green energy, start buying fossil fuels and coal. The amount of fossil fuels requires to make green energy, Wind Turbines, hundreds of tons of steel. Hundreds of tons of cement to anchor them in place. That all requires a lot, a lot of coal. Same with solar panels require rare earths moving equipment. That is katrina. Ton of fossil fuels. Green energy is made using green energy is a myth. It requires a tremendous amount of fossil fuels. Stuart that is a little thin. That is a little thin. It is. Now you head . Power of the future. Advocate for energy workers. Stuart are you fossil fuels guy . Absolutely this powers our entire country, powers the world, i dont oppose green energy. I think the technology is fascinating. It has real promise for us to give this idea that windmills and solar panels can generate themselves, it doesnt happen. Stuart they cant generate the kind of energy that we require. Nor can a factory. Show me a wind turbine factory runs on Wind Turbines . There isnt one. They run on conventional energy. If we go green, you need awful lot of fossil fuels. Stuart i join you on this one. In new york city, School Students will be ad how to drop class to attend a climate protest. What do you make of that . This is shameful. The reason why our kids are buying into a lot of this myth of the Climate Crisis and Climate Change because they dont have a Strong Foundation in physics, in science and photosynthesis. It was just a couple weeks ago we were talking about how the amazon or the lungs of the earth. Anyone who knows the slightest bit about buy echemistry and photosynthesis. That is fraudulent statement. Kids are buying into this stuff. Why dont we keep our kids in class, teach them about science, have them protest. Stuart if let them get out, they will take any excuse to get out of class. Daniel turner. Thank you very much. Thank you. Stuart one thing that came out of the debate last night all democrat candidates in varying degrees, this is my opinion, are essentially socialists f one of them wins the presidency, you really ought to be worried about your money, your job, you retirement. My take on that. Plus Charles Payne coming up. Actress Felicity Huffman will be the first parent sentenced in the College Admissions scandal. Well have those details for you coming up shortly. If you want to live in the happiest place on earth, now is your chance. Select properties at disney world are for sale. They dont come cheap. Of course this being the close to the 11 00 hour. Well tell you how much theyre going for. That will be in the third hour of varney. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Stuart i dont care which democrat wins the democrat nomination. Its a democrat winning the presidency that should get us all worried. Its clear that all the frontrunners are in varying degrees socialists. That means worry about your job, worry about your income, worry about your retirement. Biden, warren, sanders, the top three, all would raise taxes. That means all would [ inaudible ] the job boom President Trumps tax cuts created and it threatens your income, of course. Senator warren tacitly admitted taxes on the middle class will go up. This thats a hit to your takehome pay. Your retirement money, watch out. Bernie sanders attacks wealth accumulation even though hes made a few million himself. He doesnt like you putting money aside for your golden years. Senator warrens plan to socialize big business would hurt stock prices. Thats americas primary form of retirement savings, the stock market. It would take a hit. Wheres the moderate joe biden . Theres nothing moderate about building on obamacare. Theres nothing moderate about his green policy. He just extends the time were allowed to use fossil fuels. And he says this. In houston, texas, Americas Energy capital. Hardly a word last night about the stellar economy. It barely got a mention. That is ridiculous. We have growth and prosperity under President Trump and none of the candidates had anything to say about keeping the gravy train rolling. They would reverse it. They would kill it. Thats why a democrat win should make you nervous about your job, your income and your retirement. The third hour of Varney Company is about to begin. Stuart we better bring in Charles Payne, who will pass judgment on what i just had to say. Hes the host of making money on this network. Heres my premise. You heard it loud and clear. If a democrat wins the oval office, worry about your job, money and retirement. What say you . I give your delivery bplus. I give the statement aplus. Stuart whats wrong with my delivery . What have you got against br british accent sns. That gives you the plus part. I listened and listened and listened and hoped and hoped and hoped i would hear something about the ability of individuals to seek and gain prosperity in this country. Essentially they are just talking about flattening out this nation and divvying up the spoils. You got to find money for these projects. You cant get it from taxing your normal stuff so you do have to go after 401 k s. They are going to have to go after 401 k s. They will have to go after land. They will have to go after the value that they cant tax on a daytoday basis. Im telling you, youre right, i think your piece is understated, to be honest with you, particularly now that the whole party has been pushed so far left. Stuart my biggest worry is senator warren and her accountable capitalism act. Thats her basic proposal. She would essentially socialize American Business and dictate where the profits go, not just to shareholders but to the community, all the rest of it. That would take stock prices down, in my opinion. It would. I will say this, though. I am concerned about this whole notion of Conscious Capitalism and how its caught fire. It really has. Whether they are giving this lip service or not, of course the Business Roundtable saying stake holde holders wants, 145 ceos trying to get elected officials to act on guns. They are taking this movement is already getting into boardrooms so its a worrisome thing. Ultimately, the bottom line of a private company belong to the public and thats worrisome, obviously, because then it will be a freeforall. It wont be profits, at a certain point there wont be profits to share anymore. Stuart are we going to get an interim trade deal . We have confusing statements from officials in charge and to some degree, from President Trump as well, and i think if we were going to get an interim deal this market would be way up more than 60 points on the dow. Where you coming from on this . My theory is the stock market has sniffed out its trade deal or interim deal on august 28th. August 28th, the Dow Jones Industrial average was off 100 points plus. It was plummeting. It was ready to break key support points. The u. S. Trade representative came out and put in the Public Record those tariffs. It was official. You would think okay, we are going to go down a lot more, particularly with the Labor Day Weekend coming up. We turned around, made a 400 point reversal to the upside. The more i thought about it, the more im thinking wall street now knows that everything has been tariffed on both sides. That this war only gets more painful and can only get worse from here and maybe thats where it had to go. Maybe everyones back had to go against the wall for them to start coming back together. If you watch the stocks that have done well, if you watch this market, over that period of time, i think wall street, not investors, not talking heads, but the market somehow sniffed out on that day with that 400 point reversal that we were actually getting closer to a deal rather than further away. Stuart that doesnt mean that the president will make an interim small scale deal. Because he might turn around and say no, im hardcore guy, im staying with a hard line process here, no interim deal. He could say that. He could obviously say that, but remember, we had an agreement, we sent it to china, they sent it back, it was all marked up like one of my high school term papers, then on tuesday, i think it was the South China Morning Post said that chinas ready to do a deal in november if we just accept 80 of it. Then the wall street journal followed up with the idea of maybe, you know, a deal, separate the items. Its a huge gargantuan deal. It really is. President trump is going to have to think long and hard about do i secure a big chunk of this thing, 95 perhaps of what im demanding, then put in place tough, tough parameters so that we can get the rest of the deal done. Its going to be tough to turn that down from President Trumps point of view. I think his leverage is significant now. I think chinas economy is worse than we thought. One of the things that happened this week no one talked about, one of the Largest Insurance Companies just sold some Key Real Estate assets here, the essex house and things like that. Remember when japan bought all of americas all this big property, rockefeller center, pebble beach. It was when they had to start selling it back because people figured out that whole economic miracle is over. Same thing is happening in china. I got to tell you, its up to President Trump but i think hes in a great position right now to cut a strong deal that would have 90 to 95 of what he wants and keep the pressure on what he doesnt get right now. Stuart market went up when you said that. Charles payne, market mover. You dont want tb a market mover. Charles, thanks very much. We will see you when . 2 00. I will go further into this and maybe talk about records by then. Who knows . Stuart who knows. We have been rallying pretty strong into the close the last few sessions. Stuart we are 100 points away from the record on the dow at the moment. Thats nothing in this market. I will watch you at 2 00. Check out big tech, please. All the big Tech Companies. The point here is that the europeans want to be the regulator of big american companies. The European Union antitrust guys, they just imposed may, i should say, may impose new rules that would ensure that companies that collect data dont misuse it. Not sure how they are going to do that. Thats what they are threatening. Those stocks are up, look at that. Google up three bucks at 1238. Focus on it. They have been subpoenaed, google, for details related to their advertising business. Whats this all about . Ashley the whole issue is are they acting in an anticompetitive manner and if they have competition, do they just turn around and buy the competition. Is that the way they do it. They want to know what the business rationale is. Should you have to tell people why you are doing something in business . Its under the umbrella topic of anticompetitive behavior, antitrust behavior, and thats why they are being called on to provide details. They have 77 of the ad tech sector. Stuart deirdre, are they asking to read executive emails . Deirdre they sure are, similar tone over here. Bipartisan lawmakers want info from the four horsemen of the apocalypse, if you listen to some tech analysts. Google, amazon, facebook, apple, say they are asking for emails. They want to parse through these emails, these companies have until october 14th to hand over these reams of communication. They are looking for the same kind of information that ashley just went through. None of these companies, because we did reach out, have actually commented. In the past they have all said they will cooperate, then in the past they all underlined that they provide good value. Stuart i think what this story tells me is this is getting real serious. When you start demanding tim cooks emails and the other top guys, thats serious stuff. Deirdre they are looking for anticompetitive evidence. Its all the same theme, both sides of the atlantic. Stuart the stock is at 1238, up three bucks today. Ashley it actually affects the business model. Thats been the key from day one. Once that happens, you might deirdre i also think these guys have great lawyers. They can defend themselves. Well see what happens. Stuart deirdre, thank you. Better check out apple. It got a downgrade at Goldman Sachs. Thats basically a lower price target. Goldman thinks apple is going to go down to 165. That loss, by the way, causes about a 40 point drop on the dow industrials. Apple is at 219. Democrat president ial candidate beto orourke saying he will take away, confiscate your ar15 and ak47. He proposed a mandatory buyback of assault weapons. Pretty strong stuff. What does Second Amendment supporter tomi lahren say about that . And mr. New york himself, carl icahn, skipping town and heading to florida. No, its not just about the weather. Taxes are at the root of this. The wall street journal guy James Freeman on it coming up next. First, we have to deal with andrew yang. He wants to select ten families and give them a thousand bucks a month for a year. He calls it a freedom dividend. Kennedy is next. Shes all about freedom. I bet shes not on board with this one. Stay with us. Third hour of Varney Company just getting started. See thats funny, i thought you traded options. Im not really a wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade all right brad, once again i have revolutionized the songwriting process. Oh, here we go. I know i cant play an instrument, but this. This is my forte. Obviously, for auto insurance, weve got the wheel route. Obviously. Retirement, were going with a longterm play. Makes sense. Pet insurance, wait, let me guess. Flea flicker. Yes howd you know . Studying my playbook . Yeah, actually. Stuart a california bill allowing College Athletes to be paid is on its way to governor newsoms desk. Deirdre we dont know if he will sign it. What i would say is California College students could hire agents and sign endorsement deals so this is basically breaking down all the layers between being an amateur athlete, being a professional athlete. Professional potential confrontation with the ncaa that could jeopardize the athletic futures of powerhouse programs usc, ucla and stanford. This will be a fight. Well see what he does with it. Stuart kennedy is with us. We will get to her in a moment. Lets get to Felicity Huffman. She will be sentenced today for her role in the admissions scandal. Details . Ashley the first parent up. Listen, prosecutors want one month in prison, and a 20,000 fine. Huhuh, say her lawyers. How about no jail time, one year of probation, 250 hours of Community Service and oh, yes, still pay the 20,000 fine. Its going to be interesting to see whether she gets any jail time. Thats the big question in all of this. Stuart she only put in 15,000. Ashley correct. Others stuart 500,000. Somebody will be made an example of. Ashley someone. Maybe not Felicity Huffman. Stuart lastghts democrat debate, listen to what andrew yang had to say about free money, giving it away. Roll tape. Thats why im going to do something unprecedented tonight. My campaign will now give a freedom dividend of 1,000 a month for an entire year to ten american families, someone watching this at home right now. Stuart all right. Kennedy is with us. Lover of freedom. Youve got to love this. You are a libertarian. People would be at liberty to spend 1,000 of somebody elses money at will. How great would an extra thousand bucks a month be . Its not free, if andrew yang wants to do that, voluntarily, if he wants to go ahead and give people money, hoping that somehow, this gimmick secures him another spot in the next debate, i dont have a problem with that at all. I love creative electioneering. Thats fine. The idea of universal basic income is really only acceptable if you are getting rid of every other entitlement and every other government program. Essentially, if you are telling people we trust you to spend this money on your own savings and your own health care, thats one thing and there are libertarians like Milton Friedman who made somewhat of an argument for that. But thats not whats happening here. Ubi in this case somehow augments and is coupled with things like medicare for all. Stuart exactly. Its baked into the Green New Deal along with federal jobs. Stuart its a fair point, isnt it. Give you this money but we take away all other giveaways. Yes. Stuart help yourself. Get on with it. Its not like that. No, not at all. In fact, its taxing and taking from hardworking people and forcing them to give up their money and we really should be working toward enhancing creativity and the choice of the individual. Stuart buying votes as well, but thats another story. There was a lot of shouting, confusion, talking on top of each other, almost chaos in the debate. Have a look at this. Roll tape, please. You just said two minutes ago they would have to buy in. You said they would have to buy in. Its are you forgetting what you said a minute ago . Are you forgetting already what you said just two minutes ago . Youre forgetting that. Everyone but the grandmother who has no money you are automatically enrolled. Im fulfilling the legacy of barack obama and youre not. That will be a surprise to him. This is why president ial debates are becoming unwatchable. This reminds everybody of what they cannot stand about washington. Scoring points against each other, poking at each other and telling each other that my plan, your plan. Look, we all thats called a democratic primary election. Stuart that was a mess. What i came away with from that was Julian Castro was harsh to joe biden and will be condemned for it. I think he was overly harsh but then again, hes not polling very well. The reason hes at the periphery of the dais is because his poll numbers are much lower than the peloton in the middle. Thats why biden, bernie and Elizabeth Warren stood in the middle of the entire gaggle because theyve got higher poll numbers and Julian Castro is really just trying to stay in the race. At this point, its a rush with desperation for candidates like him and beto orourke. Amy klobuchar is sort of in the same boat but i think she took a more moderate approach, and she sort of surgically took things apart she disagreed with. You have to have a strong point of view. Shes one of the few moderates left on the stage. And i think for that, she did a better job. Stuart i admire your acerbic wit. Oh, Stuart Varney. Stuart yeah, baby. Ill be looking for it tonight, i believe. It is not tonight. No. Its too much show for five days a week. We are on monday through thursday, 9 00 p. M. Eastern, 6 00 in the west. Stuart you get friday night off. All right. All right. I got that. Fried chicken friday. Stuart thanks. Disney fans, this one is for you. Do you love disney so much you would want to live there . You can, you know. You can live in disneyworld, a property thereon. It will cost you. How much . Deirdre 2 million. I will fill you in on the details. Stuart back after this. Fact is, every Insurance Company hopes you drive safely. But allstate actually helps you drive safely. With drivewise. It lets you know when you go too fast. And brake too hard. With feedback to help you drive safer. Giving you the power to actually lower your cost. Unfortunately, it cant do anything about that. Now that you know the truth. Are you in good hands . But shouldnt somebody this is be listening . Pression. So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Stuart lets get to the disney story. You can, if you wish, purchase a property on disneyworld, within the area. Deirdre exactly. You go into disneyworld but you would have to pass through two separate checkpoints to get to golden oaks basically community. Stuart im not surrounded by tourists. Deirdre certainly not. The basement level basically, the smallest amount you can pay for one of these homes is 2 million. It goes up from there. They dont actually give you a quote on the largest home which is 20,000 square feet. Essentially, it is a completely luxurious experience. They also have a partnership with the four seasons. They have lots of vip services. You enjoy vip access, of course, to the resort. Theres about 300 homes in eight sections, i think Something Like eight approved architects. You could have an italian villa style, a spanish style and be close to disney, for people who are true fans. This is as good as it gets. Ashley wonder if you can rent them. They would be popular rentals. Stuart depending on the price. We got it. Thank you. Lets move on. Carl icahn, i call him mr. New york, hes leaving town. Where do you think hes going . I will tell you. The Green Pastures of lowtax florida, of course. We have more on taxes for you. President trump says sometime in the next year, he will announce a big tax cut for middle income people. James freeman, ll street journal guy on that and he is next. [upbeat action music] pilot were going to be on the tarmac for another 45 minutes or so. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Stuart big board shows a gain of 73 points. Thats about one quarter of 1 . Now wait a second. News on economic projection from the new york fed. Deirdre they say growth in the u. S. Is going to be slightly stronger than they previously said. You will notice, though, the numbers are relatively low. For the third quarter, new york fed says the u. S. Economy will grow at 1. 59 . That is up from 1. 55 . If you look at the fourth quarter, new york fed says u. S. Declined 1. 1 , up from 1. 08 . We have the big fed meeting 17th and 18th, next week. Ashley its definitely anemic. Deirdre better than nothing. Ashley the eurozone would love to have those kind of numbers. We have had stronger. Stuart larry kudlow talks about a bounce back to the 3 level. 1. 59 does not make it. Not much good. Dow still up 54. However, now this one. This caught my attention today. Carl icahn, i call him mr. New york, hes leaving the city and hes going to, of course, florida. Miami, to be precise. James freeman, wall street Journal Editorial Board man, is with us now. I think, look, we have seen this exodus. I think it picks up steam. I think its going to be a real flood pretty soon. Yeah. You dont see any reason why people wouldnt continue to look at this tax differential. Florida, no state income tax. New york, 9 at the top end. Pretty easy math. You see the same problem in new jersey and connecticut. Very high tax states, no government reform and people are going to keep moving to lowtax jurisdictions. Stuart the other thing, its not just income tax. There is no estate tax. No state estate tax in florida. A man like icahn, with 17 billion, he goes down there and avoids the estate tax. Hes probably got a trust fund to avoid the feds estate tax as well. The other warning imbedded in here besides the noncompetitive tax rates in this part of the country, heres another financier leaving. You dont have to be on wall street, you dont have to be in this city to engage in finance. We have seen firms that have been here for decades moving to places like nashville. Every year it gets easier to do finance somewhere other than Lower Manhattan or midtown. I think its another reason you wonder what its going to take before politicians in blue states start saying weve got to reform, weve got to compete. Stuart got to cut taxes. They will never say it. You know it. They need to do it. Whether or not they say it, theyve got to say it. Unless they want to see high income successful people continue to look for the exits. Stuart President Trump is talking about an announcement of a big middle income tax cut over the next year but thats not going to happen in the next year. Hes using that as a teaser for the election. This is what you get if you elect me. Fair enough to let people know as they prepare to vote what the choice is and what they can expect in a second term from President Trump versus a first term for one of his opponents. I do think one thing he can do right now, this would help middle income people, is administratively index the Capital Gains tax to inflation. Theres a myth that this only affects rich people. I think its a related myth that only rich people own stocks, own assets. This helps lots of americans. He doesnt need to go through congress. Hes got a very strong case and a Supreme Court precedent that helps him to say the treasury can say right now without having to go to congress that were not going to tax phony gains that are simply based on inflation. Stuart i would love to see that. Indexing Capital Gains. That would be huge. Huge. Ive got to ask you about xi jinping. Chinas leader. Sto stuck in a big battle with President Trump. You say, i think youre saying xi jinping would be crazy to turn down any kind of deal that he can get from mr. Trump shortterm. Why . Clearly, these tariffs along with burdening, we have seen the burden on consumers and on Corporate Investment here in the u. S. They are making china less competitive. You see Companies Looking to move to places like vietnam. You also see Companies Looking to automate instead of using chinese labor. This is putting pressure on china. I think what you saw in that democratic debate last night, it was very interesting when the moderators were asking the different candidates about the trump tariff approach with china, you saw a lot of attacks on trump personally, you saw a lot of griping about the way hes going about it. You didnt see a lot of people saying im taking the tariffs off. You saw them saying we ought to use our leverage in terms of access to the u. S. Market. In fact, some of them want to bring in new issues. They dont want to just punish china on intellectual property theft or some of these trade issues, they want to use it as a tool to force environmental changes. I think xi jinping, if hes saying im going to wait out trump, i think hes going to be disappointed if he thinks all these tariffs are going away january 20th, 2021. Stuart President Trump is going to stick to the hard line because hes negotiating in public. Thats what hes doing. Right. I think hes essentially won the argument that china has to be confronted with unfair business practices. We obviously argue about the tariff fights in other parts of the world. I wish he would make peace with more of our friends. But on the china issue, i think hes essentially persuaded people in this country to focus on it, to acknowledge the intellectual property theft is a problem, to acknowledge we need to reset the relationship there. Stuart i think youre right. James freeman, thank you very much, sir. Now, dow is up 55 points, 50 points. Been there all morning. Got that. How about a virtual wall for the border . Forget bricks and mortar. Forget fences. A Virtual Company is putting some money behind it. Tell me more. Deirdre so the company is helping the government stuart who is that guy on the screen . Deirdre palmer lucky, the founder. Most people in the Tech Community know him for founding oculus vr which was very successful. Facebook bought it for 2 billion. His new company is called andriol, a reference to lord of the rings. Quite a lot of money has been invested in this. Peter thiels founders found stuart okay. Ay. Who wants airtual wall . What is it . Deirdre its using big data. Stuart whats that got to do with a wall . Deirdre it will help track whos coming in and out. This is very controversial for the Tech Community to work with the u. S. Government. Microsoft, amazon and google have all had to cancel contracts with the government because of employee pressure. Stuart im sorry, i dont get it. Deirdre you have facial recognition. They would put your image in a data base, they would track you if you were coming from somewhere that they didnt want you coming in from. Stuart they dont want anybody coming in across the border without a visa or permit. Deirdre whether or not we want it, its happening. There you go. This young man has created a company to prevent it from happening. Stuart im just confused. Since when is a virtual wall using data going to stop immigrants coming across the border . Deirdre with facial recognition and a couple other things, couple other tools that are a little bit nsa. Listen, its happening. Stuart nice try, sunshine. Build me a wall, please. A big, tall wall. Deirdre our whole lives are like this. This is running everything. Stuart i got a visa before i came in here. I was checked by the police. I was checked by the immigration authorities. I had to line up, pay my fees, go to the doctors several times. Deirdre ever see minority report . They scan the retina . Thats kind of where were going. Stuart yeah, but that doesnt keep people from crossing the border illegally. Deirdre it helps you identify. You need to call palmer lucky. Invite him on. Stuart okay. Lets move on, shall we . I didnt mean to crush the messenger. Deirdre no, no, no. Stuart big loss for big brother in the formerly golden state. Not sure i understand this one. California says no to facial Recognition Software. Tell me more about that. Ashley two reasons. Privacy and the fact that it may not be accurate. You are unfairly targeting someone whose face resembles someone who is maybe not such a great member of society. They are going to ban the use of facial Recognition Software within those body cameras that police have both on the state and local level. Also, you are not allowed to put that video they do record through facial Recognition Software. It does not, though, include the feds, the fbi. They can continue to use it. You know, they still have facial recognition in stationary cameras in california and that doesnt change. The governor signs this bill by middle of next month, it will go into effect for three years. Until they get the technology to work better, so there is not so much a possibility of a privacy intrusion. Good luck with that. Also, the fact that mistakes can happen on these things and people get unfairly targeted. Stuart wait until the day comes when there are no mistakes at all. Ashley they are working on it. Stuart they know everything about every person as soon as they see them. Watch out. Not happy about that one. We have to check a couple markets for you. Bitcoin at 10,300 a coin. The price of oil i think is 55 a barrel. Not much change. 54. 79. The average price for a gallon of regular gas is 2. 57. Democrat president ial candidate beto orourke declaring he will take away, he will confiscate your ar15 and ak47. He proposed mandatory buyback of assault weapons. Pretty strong stuff. I wonder how the Second Amendment supporter will feel about that one. We will certainly ask one. Tomi lahren is next. During the fall, everyone who has medicare may be eligible to choose a new Medicare Health plan. But you may be able to choose a new plan right now. If you answer yes to any of these questions are you turning 65 . Do you have both medicare and medicaid . Do you have medicare . 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And when it comes to prescriptions, in 2017, humanas Medicare Advantage Prescription Drug plan members saved an estimated 6900 on average on their prescription costs. So call a licensed humana sales agent today at the number on your screen, to see if youre eligible to enroll today. And say yes to getting the right Health Care Coverage without having to wait for it. Stuart at the debate, beto orourke said he wanted to take away guns. Roll that tape. Hell, yes, were going to take your ar15, your ak47. Were not going to allow it to be used against our fellow americans anymore. Stuart we require comment on this. For that we go to tomi lahren, host of fox nations final thoughts. That is confiscation of guns, isnt it . It absolutely is but i do have to give beto, real name robert, credit because at least hes being transparent. For so long democrats have said were not going to take your guns, we just want common sense gun legislation. At least beto is coming out saying yes, i want to take your guns. At least you are being honest. I think the rest will follow suit. That just shows how far left the Democratic Party has gone. Stuart did you notice the cheers that he got when he said that . We will take away your ar15 . I mean, they were cheering. I assume it was a democrat audience, because they had to be held captive for three hours in that room so i would assume most of them were on that band wagon already. I think you are going to see a lot of democrats who live in rural areas in this country say you know what, thats too far, thats not for me. Again, they are going to push them right on over to the trump side. Stuart you think its too far for subject uurbanites . I know people say weve just got to get rid of them. I know its impractical and unconstitutional, but thats where sentiment is. In a large portion of america. We need to do better at educating americans on what our gun rights are about. I would also remind those that might not have a use for a gun or dont feel they have a use for a gun, Many Americans do. Many americans dont live in the suburbs who are far away from where police can respond and so thats why that selfdefense is so important. I would also caution people, once you start giving away your rights because you feel you dont need them, you are never going to get them back. Be careful which ones you are willing to give up. Stuart fair enough. Thats right. You can never get them back. Give them up, they are gone forever. Now, on your show on fox nation, its called no interruption, you spoke to a guest about gun control. I will play a clip for our audience. They can all see a little bit of this. Roll it, please. Thats the systemic issue that more and more, we are afraid of guns, the less we will understand them, the less educated we will come about lifesaving equipment and its only going to make the issue worse. For a guy like me, im a public figure, i live on a bunch of acres in texas. If i call police officers, they are 20 minutes out. Thats why i sleep with night vision and an ar, because i get threats, i have got that from the progressive side, from isis across the years. Stuart who is that gentleman . That is matt best, lot of people know him from youtube. Hes one of the coowners of a veteran coffee company. He fought for our country overseas and he knows the value of that firearm and he knows thats how hes going to protect his family. He lives in rural texas. That is his first line of defense. You cant depend on the government to protect you at all times. Thats what so Many Americans forget. They put their safety and security in the hands of the government. The government is going to fail you. Stuart the government, what i like about america is that we are the only country in the world where armed citizens are allowed. Just in case the government gets out of line. That makes america unique. Its one of the things that really appeals to me about america. You never hear about that. Well, thats what Second Amendment activists and people that are for the Second Amendment rights remind people over and over and over again. This is your right, your right to protect and defend yourself and your family and all the things the democrats want to put in place, my goodness, if they want to open our borders, you better be sure people in texas, people in south dakota, people in the middle of this country will be armed and ready because we have to have a means to defend ourselves from who knows whos coming in . Thats the thing. We dont know. We have to be able to protect ourselves. Stuart you can see tomi get more of this, if you wish, on her fox nation show called no interruptions. It is indeed on fox nation. You are all right. Thank you for joining us. See you soon. Check that market. Its been like this all day. What are we now, 57 points put the camera on me. Thank you very much. We are up 59 points, 27,241. Next one, juul. They may fight the upcoming ban on flavored egs. They reportedly want menthol and mint flavors to be exempt from any ban. We are going to talk to hhs about this. Heres the question. Will banning vaping lead people back to smoking tobacco . Well be right back. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Stuart vaping is under fire. You got that. The administrations considering a flavored ecig ban. Joining us now, assistant secretary for health. Can i just throw something at you . Forgive me for doing this. The real solution here is to make vaping devices only available through prescription. That would stop a lot of the problems. What do you think . Well, our approach is clear and that is we are finalizing our guidance policy to remove flavored ecigarettes from the market. That includes menthol and mint and bubblegum and mango, but it does not include tobacco flavored ecigarettes. Stuart well, juul is pushing back on you, now suggesting that menthol and mint might be kept because thats the best way of getting smokers off smoking and into vaping. Look, let me tell you the true facts here. The facts are that over five million youth are now using ecigarettes. Very addictive Nicotine Products that are very harmful to their health. From 2018, there was 20 of High Schoolers, now up to 28 of High Schoolers and we know that flavors like mint and menthol are the primary draw for these youth, these children, to get hooked on Nicotine Products. We are preserving the Tobacco Products, tobacco flavored products, because these are primarily used by the eight million adults who use ecigarettes and again, for many of them, this may be an alternative to combustible tobacco. Thats the way were doing that. Stuart understandable position, sir. I got it entirely, but look, if you have any vaping product with nicotine in it, kids will get it and kids will be hooked on nicotine before they even start smoking cigarettes. Well, the primary draw for the youth according to our data are really the flavored products. We remove the flavored products from the market, from the internet, from anyplace that children can get it, this will have a profound effect on the use patterns because they wont be drawn to it in the future and wont, once they start the cycle, wont get hooked on the nicotine thats very highly addictive drug. Stuart could you have black market people doctoring a legitimate vaping device which contains nicotine and is for adults . You could get people doctoring them up and putting different stuff in, couldnt you . There is all kinds of possibilities about what people can be doing. But when we eliminate the main market channels, the bricks and mortar stores, the internet, the vaping shops, all the major Distribution Channels where we know millions of children get their products from now, we are going to make a huge impact on Public Health in this country and save millions of children from a lifetime of addiction. Stuart yes, sir. I think youre right. Im not arguing with you, sir. Im very much in favor of what youre doing. I just want to come up with alternative arguments. Absolutely. Absolutely. Stuart i want to bring this to your attention which you know. Hhs Just Announced its going to move ahead with asking for money back from those people who sponsored illegals. Can you explain what this is all about, sir . No, i really cant explain what that is all about. But we are definitely going to be very forceful in our enforcement of this. We expect all of those who are marketing these types of Electronic Devices with flavors to have tm off the market. Stuart no, no, this is about illegal immigrants, i believe. Tell me the question again . Im sorry. Stuart okay. Hhs, your agency, has Just Announced that you are going to go after the sponsors of illegals. I dont know how that works. But the sponsors of illegals, and get money back off of them. So not going to comment about that right here. We are talking about ecigarettes and the Public Health of the children that were going to save from these highly addictive drugs. Stuart sorry, i didnt mean to spring that on you, sir. I really didnt. Hhs is a very big agency. Its a veryig agency. Stuart it just came at us. I thought we might get a comment. If youre not familiar with it, we understand entirely. Thank you very much for being with us, sir. Im very much with you on this vaping thing. I didnt mean to press you as if you were in the wrong direction here. Forgive me. We are all good. Im really very happy to have the opportunity to come on the show and explain our position and improve the Public Health of children. Stuart excellent. Come on back, sir. Thank you, sir. Appreciate it. Thank you. I want everybody to check crowd fare, a web security company. It just opened for trading. This is an initial public offering, ipo. Initial share price was 15. Its gone now to 18. 98. That is a gain of 26 . Not bad. More varney after this. Lease the 2019 rx 350 for 399 a month for 36 months. Experience amazing at your lexus dealer. Ever since you brought me home, that day. Ive been plotting to destroy you. Sizing you up. Calculating your every move. You think this is love . This is a billion years of tiger dna just ready to pounce. And if you have the wrong Home Insurance coverage, you could be coughing up the cash for this. So get allstate and be better protected from mayhem, like meow. Stuart all right. I see Facebook Stock virtually unchanged ever so slightly but there is news on libra, you know that digital currency. What have we got ash . Ashley france and germany blocking it. They do not want to take it on. Stuart really . Ashley french finance minister said in the past, this is the reasoning, risks are too high and trust and faith in facebook too low to allow the currency to exist on their soil. What we remember none of these Tech Companies are homegrown to europe. So they dont have the bragging origination rights the u. S. Has. There is more after predisposition to not welcome, not saying that facebook hasnt stepped in quite a few times especially with cambridge analytica, the eu will be harsher on american Tech Companies than americans will be. Stuart they dont have a amazon, they dont have a google. They dont have a facebook. They dont have a microsoft. Ashley they say their currency, money, sovereignty is under threat by use of libra. Which is odd in a way, i have been critical everybody else has been of facebooks missteps, the company set up a subsidiary in switzerland and created libra. They have been trying to structure it correctly. However france and germany not having it. Stuart a quick look at smile direct. That was the ipo yesterday. It dropped 28 on day one. It bounced back 10 today. 1847 is your now on smile direct. Cloud fair going public today. Cloud flair, cloud flair, now doing very well indeed, a web security company. Theyre up 27 . Here you have a ipo dog extremely well. Market, were up about 40 or 50 points all day long. Were still about 130 points from the alltime high. But we are still higher this friday lunchtime. Times up. Neil, its yours. Neil thank you very much, stuart. Were looking at the 8th straight day of gains if it continues for the dow. 130 point away from record highs reached in the dow middle of july. We could be revisit them, at very least teasing them as weve had all day. Well keep an eye. Democrats are saying president is losing on trade but is an interim deal better than no deal at all . The president promising a substantial tax cut. In case you didnt hear, were at record deficit. We have record deficit a trillion bucks with one more month in the fiscal year to go. Whether we get Something Like that. There are a lot of hints and teases out of the