Phase one trade deal, there will still be challenges between the United States and china, even after that trade deal is complete. Maria mr. Secretary, we thank you for your time today. Of course, we are always giving you best wishes on your trip. Thank you so much. So long. Maria secretary of state mike pompeo. Over to stuart varney. Stuart good morning, mr. Secretary. Good morning, maria. Good morning, everyone. The debate. All right. My opinion. No clearcut winner, but senator warren emerged as the clearcut leader. She was attacked from all sides. They went after her because shes out front. Joe biden asked about his sons Business Activities said only that neither he nor hunter had done anything wrong. Bernie sanders came on strong after his heart attack. Yes, he did. Mayor pete and Amy Klobuchar asked warren pointed questions on paying for medicare for all, but did not get a straight answer. Tulsi gabbard was the lone voice suggesting democrats be careful with their impeachment drive. All the rest said impeach him. And get this. In a cnn New York Times sponsored debate and with all the headlines about trade, not a single question about china. Never came up. Weve got a threehour show. Plenty of time for you to see it all. There is indeed lots of news about china today. Hong kong legislators interrupted chief executive carrie lam. To me thats a sign that the moderate middle class in hong kong still rejects control from beijing. The u. S. House of representatives passed a motion in support of the hong kong protesters. China now threatens retaliation. Weve got one more for you. Barstool sports putting out a teeshirt mocking lebron james for defending his financial interests in china. How about that. Lets get to the market. Big gain yesterday because of solid corporate profits. More solid profits reported from bank of america and united airlines. However, retail sales actually dropped in september and thats put something of a damper on the markets this morning. The dow is going to be down about 40, s p down about 6, nasdaq down about 23. All right, everyone. Great to be back. We have a jampacked show for you. Varney company is about to begin. This is why people here in the midwest are so frustrated with washington in general, and capitol hill in particular. Your signature, senator, is to have a plan for everything, except this. At least bernies being honest here in saying how hes going to pay for this and that taxes are going to go up. And im sorry, elizabeth, but you have not said that. Senator warren, i have been talking to americans around the country about automation. Theyre smart. They see whats happening around them. Their main Street Stores are closing. Its ignoring the reality americans see around us every single day. I dont want to just push donald trump off twitter. I want to push him out of the white house. Thats our job. Join me in saying his twitter account should be shut down. Lets figure out no . Stuart that was the democrats, i guess you could say they were piling on to Elizabeth Warren at the debate last night. It was in ohio. Joining us from a diner in columbus, ohio, pete hegseth, cohost of fox friends weekend. Pete, look, theres no clear winner. I think warren emerged as the clearcut frontrunner. What say you . I agree with you. People can talk about being a frontrunner but what we saw was the reality of a frontrunner. Everyone turning their questions and challenges to Elizabeth Warren, who has ascended because shes been blunt and clear about policies, but when asked about whether she would raise taxes on the middle class, she refused to answer time and time again, even called out by fellow democrats about hey, you say you have this plan, you have a plan for everything, but not this. I will say one thing. As a viewer, if you watched people tuned in at the beginning to see what they are going to get. If you watched the first half hour, you almost heard of nothing other than impeachment and joe biden being asked about hunter biden. Then you went into 30 minutes about medicare for all where candidates were openly saying im going to take away your private health insurance. If im a democrat today, i dont feel like i had my best foot forward to the largest audience at the beginning. Stuart the moderates were nowhere to be found, really, last night. I want to ask you about joe biden. He was indeed asked about hunter last night. I want to show the viewers how he answered. Roll tape, please. My son did nothing wrong. I did nothing wrong. I carried out the policy of the United States government in rooting out corruption in ukraine. What we have to do now is focus on donald trump. He doesnt want me to be the candidate. Hes going after me because he knows if i get the nomination, i will beat him like a drum. Stuart beat him like a drum. I dont think joe biden was very forceful last night. No. He was not. You hear that even from democrats we talked to this morning who are much more enthusiastic about Elizabeth Warren. Its hard to find someone who is gungho for joe biden. All night long he was making missteps, talking about, you know, things that didnt make sense, then ultimately when asked about hunter biden the answer of he speaks for himself, first of all, what are you going to say. Its his son. He will defend him either way. Hes in a bad position. But hunter biden openly said yeah, i wouldnt have gotten this job if my last name wasnt biden. Yeah, it is a swampy kind of thing. So hunter biden didnt do his dad any favors and joe biden was not forceful. Bad night for him. I just dont see how he regains his footing if the debate performances are going to go on like this. Stuart i agree entirely. Warren is the frontrunner. Thats the way it is right now, in my opinion. Thanks for joining us. Come on back where you belong in new york. Appreciate it. I will have some more food first. Stuart this amounts to a dramatic forecast from moodys, the big wall street firm. They say mr. Trump will easily win reelection next year. They base this forecast on the economy. I should point out they have been right on every president ial election except one since 1980. John lonski is with us. Not only that, john lonski is a moodys guy. He joins us now. Thats quite a forecast. Its based entirely on the state of the economy as we head towards 2020, thats it, trump wins . How well consumers are doing, thats very important. Remember, the forecast for the u. S. Economy is not especially strong. We see perhaps Economic Growth coming in 2 , 2. 25 in 2020. Thats not very strong. The important thing is we avoid an increase by the Unemployment Rate so the idea here would be the Unemployment Rate stays close to its current 3. 5 . Stuart it didnt get much publicity but numbers from the Census Department show that the Median Household Income has gone to well over 65,000 a year. Thats up 5,000 in the trump presidency. In the 16 years of bush and obama it went up only 1500. That was 16 years. Trumps policy changes have been very beneficial to the middle class and lower middle class. You have the lowest hispanic Unemployment Rate on record, one of the lowest africanamerican Unemployment Rates ever. So this is, you know, benefiting the middle income and lower americans to such an extent it can only improve trumps prospects in 2020. Now, it could be that the fact some of these lower income people who otherwise might vote democratic are doing so well, doing better economically, what may well happen is not so much they go out and vote for trump, but they fail to vote for the democratic candidate. Stuart thats it. They stay home because they dont want to work against their own prosperity. Stay home and watch your show. Stuart yeah, youre right. I hope they do. John lonski, thank you. Appreciate it. Now got to talk about opioids. The big drug distributors are in talks for multibillion Dollar Settlement with state and local governments. By the way, those connected stocks, mckesson and the other two there, all up significantly this morning. Ash, which companies are we talking about . How much money . Ashley a lot of money. We will get to the companies. Mckesson and cardinal health, amerisourcebergen, they are the companies. Its a big number, 18 billion over 18 years. This would be, by the way, the first broadbased settlement in this case. There are still thousands of lawsuits out of there. Whats interesting about this, it still needs to get the okay of the plaintiffs lawyers. Johnson johnson may also kick in some money on this deal as well. As we go forward, the sense is to try and find Common Ground where they can all agree on one solution. This is the first big one, up and down the pharmaceutical supply chain, everyone is being held accountable from drug makers to drug distributors. To the pharmacies themselves. This is the first time we have seen Something Like this. Its not a done deal, but its big money, 18 billion over 18 years. Stuart as soon as you get that dollar number, you can focus on it, figure out how to pay for it and the stocks go up. Ashley thats what happened. Stuart check futures. We slipped to a minus 50 points. Disappointing numbers on retail sales came out at 8 30 this morning. A little slippage in the market there. Apple, whoa, going full hollywood with a red carpet premiere for a new original show on its streaming service. Just as netflix is about to announce its earnings later on today. A question, who is actually winning the streaming battle. We have another forecast of a bonanza Holiday Shopping forecast for you. You want to hear that. Weve got it. Energy secretary rick perry is here. Big announcement on america exporting natural gas. He will tell us how we are the leading producer of oil and natural gas, on this planet. Varney company, what a day, just getting started. Youre still out there chasing what matters. Thats why at aetna, were committed to taking care of the whole you. With Medicare Advantage plans that offer Health Coaching and fitness memberships. Plus hospital, medical and Prescription Drug coverage in one simple plan. With monthly plan premiums starting at 0. Aetna Medicare Advantage plans call today to learn more and well send you a 10 visa reward card with no obligation to enroll. Or visit us online at aetnamedicare. Com tv stuart yes, we have a beyond meat story of the day. Hardees restaurants will begin testing beyond meat at breakfast, lunch and dinner. They have a new beyond Breakfast Sausage biscuit and original beyond thick burger. Now you know. Beyond meats at 123 per share. The Energy Department making a big announcement, authorizing liquid natural gas exports from louisiana. Energy secretary rick perry joins us now. Mr. Secretary, welcome to the show. Great to have you with us again. Good to be with you. Thank you. Stuart this is just the start, isnt it, of exporting natural gas . What a story. 15 years ago, they told us we were at peak oil, had found it all but they forgot to tell a few folks down in texas like George Mitchell that hydraulic fracturing, Directional Drilling that became the innovation and technology that has changed the world. Today, the United States is right on the verge of being a net energy exporter. We are one of the three largest lng exporters in the world. Just a fascinating story, but a lot of peoples lives are getting better, the climate is being addressed in a very positive way by this, and just a great story about american innovation, american technology. Stuart mr. Secretary, is it true in the introduction or in one of the in the previous block, i said america is now the largest producer of oil and natural gas. Is that accurate . Yes, sir. And the point right at it is if were not there this month, we will be in the next few months. It is a fascinating story, when you think about it, that in the next 18 months, you are going to see a doubling of the lng that the United States is bringing to the market. I mean, just fascinating stories today. We are going to be announcing this three bcf plant down in just south of new orleans at plaquemin plaquemines, louisiana. Right now, we are bringing about seven bcf to the market billion cubic feet per day to the market, when this plant is open, its going to be an additional three. Stuart sorry to interrupt you but there are some people who say look, we are producing all this oil and gas, lets keep it in america, drive prices down and all our consumers benefit. Why export it. Whats your answer to that . We are using all that we can produce here in the United States as it is. We are driving down the cost of electricity in most places in america. There are some places like new york that forbid Natural Gas Pipelines from being sent across their state. If you look at a map, stuart, on kilowatt hour cost, one of those bright red places which means the highest kilowatt hour cost is in new york. You look at my home state of texas, its at least half of that or less. So as people make the decision about where are you going to go build your manufacturing, which with power being a major cost driver, lets say data centers, for instance, theyre not going to go to new york. New yorks not even going to be in the conversation because albany and the governor have decided were just not going to put Natural Gas Pipelines across our state. I think a really bad economic decision frankly, a bad environmental decision because there are points in time where new yorkers are having to look for different forms of energy and they are going to old, inefficient fuel oil to drive that which is really bad, its really costly and really bad for the environment. Stuart mr. Secretary, i work in new york. Tell me about it. One quick political question. Will you comply with the subpoenas from House Democrats to supply documents by friday . Listen, the house has sent a subpoena over for the records that we have, and our general counsel and the white House Counsel are going through the process right now, and you know, im going to follow the lead of my counsel on that. Stuart okay. We will wait for that. Mr. Secretary, thanks for joining us. Good to be with you. Thank you. Stuart thank you very much. Thank you. Look at futures. Still down about 50 for the dow, 20 odd for the nasdaq. Some disappointing retail sales figures put a damper on the market. Well be right back. Most people think of verizon as a reliable phone company. woman but to businesses, were a reliable partner. Were engineers. Cloud architects. Developers. woman data scientists. We Keep Companies ready for whats next. We do things like protect their data. woman with security built right into their business. 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Stuart on your screens, netflix stock, 284 a share, down 17 since last october, and wait for it, our guest thinks that the price is going to go down some more. He thinks its going down to 265. Ouch. Bernie mcturnin is with us. Thanks for having me. Stuart youre welcome, fellow. Make your case. Its already down 17 . Growth concerns. This is a company that doesnt generate any free cash flow, so its all Revenue Growth that matters. We think growth expectations are coming in so right now, we are going off of high 20 Revenue Growth. We think two years from now it will be high 20s and thats going to cause the revenue multiple to come in. We have a four and a half times multiple a year from now. Stuart hold on. All the money they bring in at the moment goes into new product. I mean, new content. All of it. 15 billion on cash content costs. Stuart for cash flow, i mean, cash they can actually use, over and above what they are using for content, thats got to be new subscribers. Its really debt thats funding the company right now. We think we are three years away from them Generating Positive free cash flow. Stuart that doesnt mean to say they are losers in the streaming war. It just means theyve got a difficult financial position going into it. Isnt that it . A hundred percent. It could be a Great Company but a tough stock. Thats what we think. They are at 150 million subscribers globally. We think it will be over 200 million but whats priced in is much faster growth than that. So thats why as we think growth decelerates and the revenue multiple come in and because they dont generate free cash flow, then really that revenue multiple is all investors have to hold on to. So we think the multiples already come down a lot but if growth concerns come even more we are looking at high teens it will