Transcripts For FBC Varney Company 20170809 : comparemela.c

china failed and the diplomatic approach from clinton, bush and obama also failed. the criticism of president trump has started, senator feinstein doesn't like his bombastic language. senator schumer calls it reckless. overall sense of shock. america is waking up to something that we have not seen before, rogue state with sophisticated nuke and america's president responds, in the nuclear era this is unique. financial reaction is unfolding. there has been a flight to safety, investors buying gold and u.s. treasuries and some selling of stocks. this market is like likely to move. on this day august 9th, 1945 an atomic bomb was dropped in nagazaki, last time a nuclear weapon was used. varney & company is about to begin. ♪ ♪ ♪ >> north korea best not make anymore threats to the united states, they will be met with fire and fury like the world has never seen. he has been very threatening beyond a normal statement. and as i said, they will be met with fire, fury and frankly power the likes of which this world has never seen before. stuart: there you have it. fire and fury, we have never seen this kind of rhetoric before from any president, frankly, and by the way, he's doubling down, tweeting this morning, here we go, my first order as president was to renovate and modernize nuclear arsenal, hopefully we will never have to use this power but there will never be a time where we are not the most powerful nation in the world. here is what you want to see. the market's reaction, what's going on here? it's not a huge selloff, all indicators are pointing lower. so far it's not been dramatic, this could change as developments occur. there is some safe haven investment, but not dramatic, up in gold 17 bucks. tillerson has this to say about the president's remarks, roll tape. >> i think the president -- what the president was doing is sending a strong message to north korea in language that kim jong un would understand because he doesn't seem to understand diplomatic language. stuart: that's the secretary of state on his way to, in fact, in guam itself. former senator tom corbyn, republican from oklahoma, sir, let me put it to you directly, i think that the ball is in china's court at this point, what say you? >> stuart, i would agree with that but i think we've created that somewhat because we have -- i listened to an interview of donald trump in 1999, i think it was where he had -- he stated what needed to happen was forceful negotiation if not an elimination of the threat and we've now had 24 years of failed negotiation, failed diplomatic efforts and you can thank china for that because north korea has definitely been a proxy for china in terms of causing trouble in that area of the world. so it is in china's court and china can fix this if they want, the question is do they want to and that's the 24-dollar question. nobody knows the answer to that. stuart: i'm looking to the next step here. north koreans have issued direct threat to attack guam, flat out, they'll attack, that's what they said, i suggest that the next missile that they launch whether it's short-term or long-term, doesn't matter, the next missile they launch, we have to shoot it down, we have no choice and that will be the next step, what say you? >> well, i'm not sure i agree with that. i think what we have to do is we have to make sure that the chinese know what we are getting ready to do before we do it so that they're advised, number two, whether they launch a missile or not, we need to be prepared and i'm sure we are in terms of deployment of troops and the weapons of war, conventional weapons of war and number three, shooting down missiles is hard, it's not easy. our only response to shoot missile and miss, we have to have other response. stuart: that's what's happening with secretary state tillerson in guam telling china, south korea and japan, the next missile that flies, we will try to shoot it down, laying the ground work for a shootdown, is that possible? >> well, i think they know that. i think we are at that stage now that if they want to continue to test then we are going to have to start using the technology we have to eliminate the evaluation of whatever test they might put forward. even more threatening than that right now is the fact that they armed significant fast boats with missiles because that's a threat to our navy and that's to what we should be targeting. stuart: thank you very much, that's politics, that's diplomacy, now the money side of things. i want to bring in the black swan expression. that is an event, it's unforeseen, emerges suddenly and changes the financial equation. liz peek, columnist with the times is with us, do you think this could develop in black swan event? >> it certainly could, i would back up and say the unpredicted events are not complete shock to the system, we knew the financial crisis were inching closer, we knew the banks were overextending and we watched and all of a sudden a huge crisis. the same thing is true here. we have been watching as tom coburn just said since 1999. stuart: exploded yesterday afternoon when they militarized the bomb. at that point everything changes. >> i would add another thing that came out recently, the new york times ran a story several weeks ago about how we do not have eyes on most of north korea. we have satellite coverage of very few specific places in north korea, the obama administration decided not to spend the money on bigger coverage, when they went to solid state fuel, that meant they could launch a missile from almost anywhere in north korea. we don't have anticipation, we can't predict when these things are coming our way, i mean, your idea when they fire a missile, shoot it down, great, but we may not know. stuart: fair point. i remember when the first gulf and invasion of iraq in 2003 when the shooting started, stocks went up, i suspect that this is a different situation. >> i think people are really scared of this. it's unimaginable. stuart: let's go with disney for sure. that stock is going to open way down this morning when it opens. that's yesterday's close by the way. it's going to open down enough to take 30 points off the dow industrials, they are going to end deal with flet félix. ashley: they are, they missed on revenue, big problem again for disney is their cable business, espn, continuing to suffer from those court cutters, income was down 23% year over year, that continues to bleed heavily for disney. other big issues you said, stu, they are now doing away with netflix, with the movies, content. they are going to start a stand-alone sports streaming service next year and then one for the movies and tv programming in 2019. not only is disney stuck moving lower premarket but as you can imagine, netflix as well. stuart: for sure. stuart: late to the streaming, liz? >> i don't think so. it seems to me incredibly good response to problems with espn. let's face it. it's not just by the way the animated movies and the disney stuff we are familiar with, they have marvel and movie franchise out there. stuart: star wars. >> it's pretty darn confusing. [laughter] stuart: i canceled my netflix because i didn't use it. i'm one of those who canceled. ashley: wow. >> let's think about the other revenue options that disney taps into, what they want to make sure is when they run a movie they can also sell products. maybe it won't cost very much to access streaming product. stuart: maybe. we don't know until 2019. the story in the market this is morning is north korea, what are we going to do, in advance of that we will see stock prices fall, s&p down 8, nasdaq down nearly 40, 43 points down for the dow industrials. it's going to be a down day but not a huge selloff at this point. to france, a driver plowing his car into a group of soldiers, they say it was deliberate, the suspect has been arrested, terrorism not being ruled out. politics, senator majority leader say president trump's agenda getting passed is complicated. new reports that president trump, robert mueller, the man leading investigation messaging back and forth. can he do that? if we do get into armed conflict with north korea, what does that mean to allies in europe? we will ask nigel faragae, jam-packed show. it continues after this stuart: a couple of stocks in the news down big, look at the fossil, they make accessories, watches, weak sales forecast down it goes 25% almost. how about priceline, similar story, weak forecast as to what's coming in their future, that's a drop of $135. paris, a driver intentionally plowed his car into a group of soldiers, what's the latest on this? ashley: driver, attacker arrested in a state north of paris after we are told a shootout, there were bullet holes in the windshield of this bmw that was identified as the attacker. a police officer has been injured in what is called a shootout but we now believe that the suspect was not armed. anyway it is believed he attacked soldiers in northern paris, nonfatally injured but two seriously injured. there's no doubt, this was a deliberate attack. stuart: got it, thank you, ashley. according to reports the president and robert mueller's lawyers have been messaging backwards and forward, judge napolitano is here on that, a, the optics don't look good and b, should they be doing this? >> well, the independent counsel has asked the white house for documents and the easiest way to do that is in a cooperative venture so he doesn't ask the white house legal counsel for the documents, he asked the president's private lairs and then in that process they communicate with each other but i have seen misleading headlines that leads you to believe that donald j. trump and bob mueller are messaging each other. they are not doing that. their lawyers are communicating with each other in a professional vain. i suspect that the president has been advised that it would be better to cooperate with the legal counsel than to attack his legitimacy and we haven't heard the president call this a witch hunt in about a week. stuart: okay, next one. i want a reality check on north korea. we have a reality check from senate arms services committee member, dan sullivan, roll tape. >> if one of the military option s of preemptive war, that would require authorization of copying, article 1 of the u.s. constitution is clear about that. stuart: war powers leave the president vis-a-vis north korea? >> i'm smiling because you know my ideological bias which is to follow the constitution, i wish senator sullivan were correct but he's not. gives president to engage military action for 90 days. stuart: we can do it? he could shoot down a missile, if we shoot -- >> he can evade north korea in order to prevent them from attacking an ally. after 180 days he has to stop or get congress' authorization. stuart: could the democrats move to cut off funds for military in the area? >> i doubt mcconnell would allow that in the floor. could they have a majority, yes, but they don't have a majority. stuart: the president has free hands certainly for the 90 days? >> absolutely. stuart: it's going to make difference to overall market, disney is going to be down big, that drop of what 6% on disney will shave 40-odd points off the dow industrials, got it. more fallout from the firing of the google engineer who sent that company wide memo on diversity. there is now talk of a class action lawsuit on behalf of women in the tech industry. we will have judge napolitano on that subject in a moment after this it's time to rethink what's possible. rethink the experience. rethink your allergy pills. flonase sensimist allergy relief uses unique mistpro technology and helps block 6 key inflammatory substances with a gentle mist. most allergy pills only block one. and 6 is greater than one. rethink your allergy relief. flonase sensimist. ♪ or a little internet machine? 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[ laughing ] so all you pay for is data. see how much you can save. choose by the gig or unlimited. call or go to xfinitymobile.com introducing xfinity mobile. a new kind of network designed to save you money. stuart: you know a lot of big name stocks who are down today, mylan labs is one of them. the falling prices for generic drugs, mylan specialty, falling prices took a bite out of profits and the stock is down 6 and a half percent. napolitano still with us. i have to ask you about this google firing. please, look at this. the headline from "the new york times" the opinion page, here it is from anita hill, class actions could fight discrimination in tech. is that what's coming down the pipe? >> gosh, i hope not. as liz pointed out during the break, the tech industry has treated women with great opportunity. i don't know if there's a paid disparity at google, if there is and if it's based on gender, then that violates california law and federal law and there's the basis for the class action, whether this sort of off the wall memo, we all read it, it's filled with all kinds of theories and six syllabus word. this is all politics, if this is all left politics, you have a bunch of very liberal plaintiff lawyers who love this stuff. i'm sure they are making phone calls in response to anita hill's article. stuart: this man was fired and put it on the company system, the gentleman right there, he was fired. i remember when former treasury secretary larry summers was fired as the president of harvard because he had suggested that maybe the lack of women in top jobs in math has something to do with biology. wait a second. what was the book written by the lady who is -- >> my point is she basically wrote an entire book about how women have to behave differently to get ahead because they are different. i think what this engineer did -- if you actually read this entire memo, he asked the question basically why are so few women in engineering and tech, that's what he's trying to answer and his answer is offensive. >> we are not talking to somebody in soap box in a public street. somebody using the boss' asset and in the way the boss doesn't want done. stuart: you get the point. free speech for women on the women's issue. >> dead wrong. >> on private property they can get away with it. stuart: we are coming to the opening of the market. we have the north korea situation looming on the backed. consider this, disney is a dow stock, disney is going to be down a lot, 6%, that will take approximately 40 points off the dow industrials. well, the dow industrials is set to open 40 points lower, in other words, disney cancels out the dow's loss and north korea is not featuring that prominently. we will be back in a moment stuart: we have an interesting situation developing here. we have the north korea situation lurking in the background. a great deal of hard rhetoric being thrown around this morning and explicit threat to attack guam by the north koreans themselves. what kind of impact is that going to have on the stock market? there are also a couple of individual companies which have made bad forecast for the future and that is down big time. we are down 67 points from the get-go. down 65, 67, just above 22,000. i caution here, in the background is all this war talk with north korea and yet the dow opens just 60 points lower. and by the way, a good portion of that loss is accounted for by disney which is a dow stock, bottom-right hand corner of the screen. how about the broader indicater, s&p 500, down a third of 1%, as for the nasdaq, this is the technology sector, that's down .8%. more substantial loss for the nasdaq than s&p and dow. the price of gold is up. it's up $16 an ounce. that's a flight to safety. that's the safe haven investment when you've got the turbulent times overseas. gold up 16. now, look at disney, $100 a share, down 5 and a half percent. theme parks and movies did well but they're starting a streaming service and they are taking movies off netflix, a lot to go after disney, the market doesn't like it. netflix on the downside, if disney is taking movies away from netflix, that's not good, it's down 1 and a half percent. apple, retreating from its all-time record high that it hit recently, well above 160, it's not down much, 21 cents leaves it at $159 a share. that's what's happening in the very first minute and a half on this wednesday morning. who is with me. ashley webster, e-- elizabeth peek. i was expecting a sharper drop for the dow this morning, we didn't get it, we are down 65 points. there was talk about this being a black swan event, is the market telling us that this is not at this point a black swan event? >> that's exactly what the market is telling you, don't forget if earnings are there, earnings are good and guidance is good, then you have a bet to the future, when the shooting actually starts, thin you've got a problem so traders right now literally, stuart, can't afford to do anything other than profit-taking so they're not going to do much of that because they know the future is where they want to be. stuart: liz, i mentioned earlier, when the shooting started in the first gulf war stocks went you have, when shooting started in invasion of iraq, stocks went up. i think this is different. >> i think people would be terrified. it's kind of unimaginable. interestingly nikkei was down 3% overnight. my guess is you will see continued selling in asia if, indeed, this continues to heat up because there it's much more on their doorstep and could be much more impactful. stuart: if an incident occurs, who knows when that could be a trigger for market reaction, i don't know if up or down. look at disney, this is the biggest drop in, i think, two years for disney and it is a dow stock so that's help to go push the dow down. it's winding down relationship with netflix. why a huge hit to disney? >> their core business is brands, parks movies and this sound great ideas in a board room and someone had a good powerpoint saying, hey, we ought to do this and there are businesses that do it better. we know espn is a problem, that's been a problem for a long time. you don't want to touch disney until they get rid of that, this content thing, that one to me seems like a major managererial mistake. i will eat my words. ashley: why would you pay a third party to carry your programming or content when you can easily do it through the internet? why not save some costs and do it yourself? >> content is king. >> well, to ash's point, that's a very astute question but the problem is it's never as easy to gain eyeballs as you think it is. they are going to wind up paying more to grab an audience they have no experience with using variables they don't understand when people like amazon, people like google and facebook and netflix. ashley: never underestimate marvel, pixel. >> they can take advantage of it. there's proliferation of delivery out there and the content is all you really need to talk about. stuart: i don't watch movies on the phone or television, i don't want movies period except at the cinema. ashley: i don't because the public is so annoying. stuart: look at apple, coming off all-time high, 159.82. buying opportunity? >> they haven't even begun to unlock the fraction of the death and they are continuing nibbling their way towards. stuart: we have a development with the dow industrials, we were down 67, that was two minutes ago, now we are down 36. the drop in disney accounts for all of that loss on the dow industrials. in other words, the north korea situation is having no negative impact at this stock market at this point, certainly not in terms of the dow. i did not expect that, liz. >> i wonder if the release of a korean canadian captive in north korea which just happens hours ago after trump made statements could be accounting for easing of tensions, that might be viewed as kim jong un trying to be a little -- olive branch, maybe accounting for a little bit of lessons of tensions. stuart: i'm not buying it. >> oh, well, they don't let people very easily. stuart: fossil, they make watches, they make accessories, down 27%, why? they cut sales forecast for the future. weaker sales also the, twinky maker, down, look at priceline, weak forecast from them, down 6%. they are down 141-point share as we speak. how about monster beverage? they are talking about product shortages, don't do that, the stock is down 1 and a half percent. what is this? >> the job of monster and the monster drinks and blame to have shortages in both of those areas . stuart: franchising plan is paying off, the stock is up 4 and a half percent. look at the broadcaster, tribune media, tribune has 40 stations in 30 states, down 1%. some big moves in -- in some of the smaller. a couple of numbers for you, facebook's chief has made more money, mrs. zuckerberg than anybody else this calendar year and that includes jeff bezos, zuckerberg is up $23 billion and bezos at $19 billion. i think this guy, mr. zuckerberg, i think he's getting into politics. >> well, he certainly can afford to do it and he has enormous platform and he's politically active and has hired a major pollster from the clinton campaign who is doing some work for him reportedly on where he should be giving his money, but, look, i think all of these people have enormous egos, why not? now we have broken the ice on billionaires getting into politics. stuart: as in donald trump. >> as in donald trump. stuart: would you sell facebook, keith, if you found out that mr. zuckerberg was, indeed, making a serious run for the presidency? >> well, not to be cynical, easy to be a limousine liberal act, they are one and done billionaires, in old ipo you went public because you had sustainable business and today you go public, you hope to make your money in one shot and you have the money to do whatever you want to do. he's possibly going to be great at this. if he doesn't, another limousine liberal. i wouldn't sell facebook, that's a different issue. stuart: you're right. i have to divorce politics from money. i find it very hard to do. >> very few people do. [laughter] stuart: wal-mart, this is important, rolling out a new technology in its stores, let's shoppers scan and pay for their items without check out line, no registers, no cashiers, is this a blow to amazon or is this wal-mart fighting back? i know the stock is at 81, keith. >> i think it's a hail mary. i don't think this is a shot at amazon, i think this is a shot at 15-dollar minimum wage and people who wish for that, better be careful what they're going to get. stuart: $81 a share. i'm not talking about buying the stock, resilient retailer in an age with all the retailers are under attack. >> they are fighting hard and this particular thing may not work well, but we have seen effort after effort to compete with amazon. they're not giving up, that's for sure. stuart: i'm afraid it's that time. ten minutes into the opening of the market where we have to see keith and liz, thank you, ladies and gentlemen, thanks for being with us. look at the the big board now, we are back down to tune of 58 point, just above 22,000, now this. senate majority leader mitch mcconnell says president trump had excessive expectations on how quickly things happened in washington. this has not gone down well. later this morning, mark stien reports. highest drug overdoes rates. it shows the number of overdosed deaths per one thousand people in one state. look at west virginia, 41 per 100,000 per year that is. new hampshire, 34, kentucky nearly 30, due in large part to the opioid epidemic. shocking numbers. back in a moment. ♪ ♪ i'm... i'm so in love with you. ♪ ♪ whatever you want to do... ♪ ...is alright with me. ♪ ooo baby let's... ♪ ...let's stay together... stuart: breaking news on tiger woods, reportedly struck a deal on dui case, he will plea guilty to reckless driving in exchange he will get a year of probation and required to complete a dui education class but avoid jail time. all stems from arrest in may when police in florida found wood passed out at the wheel of the banged up mercedes. check out the big board. dow down 67 points. half of the loss accounted for by disney which is a dow stock. lockheed martin says lately it's getting more inquiries about missile defense systems, what's going on with that in nicole, come in please. >> we know the threats have been on the rise particularly from north korea which has been practicing over and over again and countries not only the u.s. but other countries want to be able to take on an incoming missile and it has become front and center in the defense world, lockheed martin moves to a new high and they have seen increase inquiries to that point and i will tell you that morgan stanley reached look heed martin and raytheon, both hitting all-time high in having some way to combat missile. that's what we are seeing, the question now is are the inquiries going to turn to future sales. the other thing that lockheed martin will have to do is have to ask for u.s. regulatory approval from the legislators to be more specific. they can't just pump them out and give them out to the world. so that'll be something that they'll have to face as well. but winning day for some of the defense stocks. stuart: we've got it, nicole, thank you very much, indeed. here is something that's not going down well. senate majority leader mitch mcconnell says the president expected too much too quickly from congress. roll tape. >> our new president has, of course, has not been in this line of work before and i think had excessive expectations of how quickly things happened in the democratic process. stuart: coming in grober, it sounds like senator mcconnell is edging away or walking away from tax reform this year. >> i don't think so. i think he's looking backwards on what happened at health care which is a much more challenging problematic effort. as we look forward on tax reform, you have less problems internally inside the republican house and senate, republicans do know how to cut taxes, they've done it regularly, they haven't had a lot of experience repealing and reforming entitlement programs which we are trying to do with medicaid and obamacare, still need to do it. remember, we were stopped by one senator, one senator, that was not the republican party's failure, three republicans who voted no. anyone could have joined and make entitlement reform happen, so we just -- we have elections in 2018, we need five new republican senators so we don't have to return the phone calls from those senator whos who were problems in the last fight. >> i'm sure you were involved with that. gary cohn said on this program, tax reform, tax reform will get done. roll that tape, please. >> it looks like it's going to be a slimdown tax cut plan, slimdown to just maybe tax cuts for individuals and tax cuts for corporations and it's not going to be paid for, is that how it's shaping up? >> no, i don't agree with that whatsoever. the way we are going to do taxes and the way we have to do it is it's going to have to balance, we need to the permit nanttax reform in the united states. stuart: forgive me for saying, i'm not buying it, you? >> if you take the corporate rate and the subchapter s rate down to 15%,, there's a whole bunch of stuff you do too, i think you solve most of the tax reform problems on our international situation but taking the rate as low as 15. stuart: i tell you, what let's not get confused with what is tax reform and what is tax cuts, do you bee with me that what it's going to come down to is a slimdown version of tax cutting where you cut the corporate rate and the individual rate and that's it? >> i'm in favor of doing that plus they may do other stuff as well but i would consider that drammic tax -- dramatic tax reform. stuart: you're optimistic that this is going to get done. is it wishful thinking on your part? >> no, i'm talking to each of the players involved, two from the white house, cohn is one of them and you have the house and the senate leadership, as paul ryan told me a week ago, we used to be at 80% agreement, that's when the house was still pushing for the border adjustable, border adjustability of the corporate income tax, now that the house has put aside and we are not going to do, now at 97% accord. that's a fair characterization. we will have to make some things permanent and some not permanent in order to fix the box. there's agreement on what goes in the box, i think if you make some things temporary like the alternative minimum tax, they'll never go away anyway. stuart:i will leave it like that this, eternal, thanks for being with us. >> you've got it. stuart: check the market, down 54 points, even split, winners and losers, disney is the big drag on the dow. how about this? new study from princeton says doctors who graduate from lower-tier schools are more toyi describe pain medication drugs ak you this... how does diabetes affect your heart? it doesn't, does it? actually, it does. type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. and with heart disease, your risk is even higher. you didn't know that. no. yeah. but, wait, there's good news for adults who have type 2 diabetes and heart disease. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease and lower your a1c. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. do not take jardiance if you are on dialysis or have severe kidney problems. other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. so now that you know all that, what do you think? that it's time to think about jardiance. ask your doctor about jardiance. and get to the heart of what matters. who knew that phones would starentertaining us,ng? getting us back on track and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save when you choose by the gig or unlimited. call or go to xfinitymobile.com. xfinity mobile. it's a new kind of network, designed to save you money. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. stuart: well, would you look at this, the states with the highest overdoes rates listed as deaths per one hundred thousand of the population in those states, just look at that. vest washington, new hampshire, kentucky, ohio, rhode island, dreadful numbers there. and we have a study, doctors who attended, quote, lower-tier medical schools, whatever that means, they prescribed far more opioids. dr. mark seigal is here. that's a slam on so-called second-tier med schools, isn't it? >> i looked at the study carefully, it's from princeton economics, it's accurate, they use harvard as their benchmark. an average doctor describes a hundred opioids per year, lower medical schools, 300 per year. general practitioners, overall are written with family doctors, i have a gripe with that. they're not pain experts. listen to this, harvard, 180 approximately on family practitioners. 550. three times as many prescriptions written by general practitioners outside of a top school like harvard. stuart: if you went to a top school like harvard or new york college, medical school, you probably have a clientele that is wealthier than the second-tier doctors who didn't go to harvard and that accounts for some of the difference in opioid prescription. >> you're training of the london school of economics is coming in here but they thought about that too. princeton may not be as good where you went but it's not a socioeconomic problem, it is a real finding, they found for all socioeconomic levels this held true. you know what this is, it's a wake-up call for more education. i know you don't like the word mandatory, i just took a mandatory education course in new york state, which is you have to have on opioids and it focuses on the word exposeture. how long were you on opioids, did you get two days prescription, did you get 30 day's prescription, you had surgery, 120 pills, call me in the morning or did they actually treat the problem. that's what they are teaching us now. even if you went to lowered-tier medical school the problem would be compensated now. we need specialty training, we were taught about pain but we weren't taught how to treat it. doctors are the problem here. i hardly ever prescribe them. stuart: i was encouraged, you prescribe, you get 7-day supply. >> that's the law in maine. as you pointed out in the beginning, there are states worse than others. limiting duration. so that idea is going to become more prominent. thank you. the stakes couldn't be higher, could they? the world has never seen anything like this before, a nuclear armed rogue state north korea directly threatens america and president trump talks about fire and fury, my take on that coming up at the top of the hour. ♪ hey, i'm the internet! i know a bunch of people who would love that. the internet loves what you're doing... ...so build a better website in under an hour with... ...gocentral from godaddy. the internet is waiting. start for free today at godaddy. itwhat's possible.nk . . . . 6 key inflammatory substances with a gentle mist. most allergy pills only block one. and 6 is greater than one. rethink your allergy relief. flonase sensimist. ♪ stuart: we have not seen anything like this before. north korea has directly threatened america. it is a rogue state. reportedly it developed a compact nuclear weapon that fits on to a missile capable of hitting the american main land. north korea's leader has publicly warned he has plans to attack. in the nuclear era this is unique. and we have a brand new president. his first response matched rhetoric of kim jong-un, fire and fury the likes of which the world has never seen before. that is what the president said. the stacks clearly could not be higher. previous presidents tried diplomacy. it failed. china part is responsible for this. north korea is their client state. they bert be a part of the fix. japan is watching. they could go nuclear very quickly, add yet another asian state to the nuclear club. pakistan, indyou yaw, china, north korea and now japan? but president trump very much in the spotlight. this crisis is not of his making but it is his crisis to deal with. no the president can sit back and do nothing when a rogue nuclear power publicly threatens the united states. he can't walk a way from it or kick the can down the road. democrats and republicans should not let the north koreans divide us. they would exploit any opening. unite around the president, no matter what you think of his tone or style. president trump needs the support of the country because it is all of the whole country that is threatened. one more time, on this day, 1945 an atomic bomb was dropped on the japanese city of nagasaki, the last time a nuclear weapon was used on the battle field. the second hour of "varney & company" is about to begin. ♪ stuart: how far is north korea and the situation hurting our stock market? answer? not much. down 50 points. that is where we are. 22,000 level is holding despite all of the war talk, we're at 22,000. now look at disney, still dragging on the dow. disney ending its content deal with netflix. down nearly 5%. that takes 40 points off the dow. in other words the dow's loss is balanced because of largely the disney's loss. netflix is down because disney is ending the deal to put disney movies on netflix. that is about four bucks down. there is a flight to safety. that's the price of gold. it is up $15 per ounce. safe haven investing right there. look at the watch and accessory maker, fossil. they cut the sales forecast. the stock is chopped off at the knees. down 25%. some beg time movements on the downside for individual stocks but not the overall markets. kim jong-un threatens guam after president trump's threat of fire and fury. joining us now lieutenant-general thomas mcinerneyly. from the get-go, general, what should president trump be doing right now? >> right now, stuart, he ought to be preparing for war for the next six months to a year. he has that much time. what he ought to do, i liken this to, when i was a young lieutenant, i went down to key west during the cuban missile crisis two days before president kennedy announced it to the world. this is president trump's cuban missile crisis. it is a korean missile crisis and he should handle it accordingly. i would immediately if i was president, recall congress, get them to pass a 2018 defense bill. we need that right away. we can not be delayed. we can not have a continuing resolution. i would then politically create a pacific area treaty organization just like we have in europe in nato, because we must not only counter the north koreans but the chinese. remember the chinese are ones that created this monster in north korea. we can not expect any help from them. i'm from the john bolton school of diploma my. they are not going to help us so we must do it ourselves. stuart: do you think the people of the united states would accept going into war in asia rather than accepting north korea as a nuclear power? >> i think they will. when you listen to what kim jong-il said attacking guam with nuclear weapons. the only nation he will attack are u.s. cities. we have no choice. it is not whether america wants to. this president has been he given this deck of cards and it is not a good deck. he has got to do it and i believe the american people will support him. we do have the ability despite what john songbird mccain said, we do have the ability to do it. it will be a combination of conventional and nuclear we have to retaliate. stuart: the first step would presumably be we shoot done their next missile launch, would that be the first step? would that be an act of war? >> we may or may not do that. the fact is there are other things we can do. i would build up our offensive capabilities, our retaliatory capabilities. as i said both nuclear and conventional. we use nuclear capabilities if they fire one round on seoul, we dehe troy with, in five minutes because we have an airborne alert, with cruise missiles, that we can take out that artillery right away. we don't want to do it but we will retaliate. we can take out that artillery with conventional weapons. liken 1000 cruise missiles in the air at one time. 200 is the aircraft attacking. we can do that. we need six months to a year to do it. that is how much sometime we have. we must be prepared to do this. i believe the american people will do it just like the american people will, backed president kennedy during the cuban missile crisis. i remember it. i was flying over the island. this is what we are faced with. he didn't ask for this and the nation does not need it now but these are the cards he is being dealt. stuart: okay, general thomas mcinerney, always strong stuff. you delivered again today. we appreciate you being with us. >> thanks, stuart. stuart: yes, sir. let's get the latest, this is now being called terrorism. i'm sure -- okay, a car drives deliberately in six soldiers as they emerge from their barracks in france. what is the latest? >> he has been arrested. he was captured in a bullet-riddled vehicle in northern france on the motor way there. as you say he rammed, laid in wait from what witnesses said as the troops came out to begin the day after 8:00 a.m. local time, he rammed his bmw, rammed down six of them injured, two of them seriously. he is now in custody. hopefully we get more. stuart: they're not ruling terror out? ashley: certainly not. it's a deliberate act, put it that way. stuart: they haven't said it but not ruling it out? okay. that is terror in europe. let me get back to north korea because herb london is with us. president of the london center for policy research. you're familiar with this expression, the black swan, and he event comes out of nowhere, it is unexpected and it changes the financial equation. is this, north korea, a black swan event? >> i do not think so. you've seen this for a considerable period, 25 years of extortion the kim family has been engaged in. kim learned from his father and grandfather, you send out a test and the west responds appropriately. we do not believe the north koreans had not the capability to reach the united states. we now know that is not true. they have the capability to reach guam, hawaii, and west coast of united states maybe as far as east as chicago. this is different threat, different than anything encountered by previous presidents. there is a lot that has to be done. keep in mind statement was made about guam yesterday there was contingency associated with it. kim jong-un's spokesman said we will engage in preemptive strike against guam if there are further provocations from the united states. i don't know what those provocations are, but the very word if, clearly suggests this is a contingency. stuart: i think the market agrees with you. >> yeah. stuart: i walked into work this morning expecting to see the market selloff because of war talk, it is not happening. we're down 63 points now. at least is half accounted by disney. i think market agrees with you, not at this point. >> i don't think this is a black swan. this is the third time this statement has been made by the north koreans. not as if we haven't heard this before. this is little more precise. this is a little more dangerous. we know something about technical capabilities about the north koreans we did not know before. stuart: if that is limited negative, let me show at you what i think is flat-out positive, number of job openings available in america today. almost a record level. 6.2 million jobs available in the month of june, up nearly half million. you got a smile on your face, that is a positive, isn't it? >> it is indeed. no question about it. jobs are available. we're looking at unemployment rate, the lowest in 25 years. there are remarkable developments occurred with this trump presidency for which he has not been given credit. stuart: it is overshadowed by north korea black swan possibilities and the dow at 22,000. as we speak. >> what is the market saying to you? we're very doubtful what will happen. there are a lot of imponderables in this equation. recognizing those the market is saying we're not going to act until we are sure what will happen in the future. stuart: i wonder if the president faces down kim jong-un, tough, tough talk, fire and fury, kim jong-un has contingency we'll attack, if, then we have news, canadian he korean minister has been released by the north koreans. i wonder if the president is winning on this? you know, that -- >> look, i think general mcinerney has it right. we have got to prepare for the worst possible scenario, that is, have a robust anti-missile system. we have to start working on that as quickly as possible. thaad and aegis are reliable missile technologies. it goes beyond that. we have to do a lot more to assist allies in the area, inyou concluding those that may face conventional attacks. stuart: her london, thank you very much indeed. >> thank you. stuart: yes, sir. check this out. california estate you might remember from "the beverly hillbillies," the tv show. it is the most expensive residential listing in the entire country. the bel-air estate hit the market with asking price of $350 million. it was owned by the late univision billionaire. we have more on that for you. coming up of course, senate majority leader mitch mcconnell taking a swipe at the president saying trump had excessive expectations about how quickly things happen in d.c. so then, why is congress on vacation? we will ask that question. chicago's mayor rahm emanuel suing the justice department for with holding funding from sanctuary cities. will other cities follow emanuel's lead? texas attorney general ken paxton is with us. he has a few sanctuary cities fighting the same thing in his state. you are you watching the second hour of "varney & company." ♪ stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. stuart: that is not much of a loss when all this war talk with north korea. how about that? how about priceline? they gave a weak forecast, boy, their stockholders are paying the price. they're down $164. 1884 is the price there. look at trip advisor, gave a weak forecast. that is down $3.30. trip advisor way down. senate majority leader mitch mcconnell criticizing president trump, says he expected the president, expected too much too quickly from congress. roll tape. >> our new president of course has not been in this line of work before and i think had excessive expectations about how quickly things happen in the democratic process. stuart: excessive expectations. the white house responded quickly. just coming in now from the president's director of social media, dan scovino here it is. "more excuses. senate majority leader needed four years in addition to seven years to repeal and replace obamacare. that is called sarcasm. i think mitch mcconnell will take a lot of heat for his comment. what say you? wait a minute, one more thing. our colleague lou dobbs has launched ditch mitch campaign. is that correct. ashley: being very critical. stuart: what you do you say? >> lou dobbs is poet. sounds good to me. everybody is laughing because this is absurd. i think what mcconnell is trying to do, everybody is home now. they're receiving a lot of heat for doing nothing. they're say well, donald trump doesn't know what he is doing. the fact this is the business approach. in business you have to keep up with the leader. donald trump's crime though is waking up every morning wanting to accomplish things and of course his comment is perfect. we have had years. we're tired of whatever this process is. this is emergency in this country just like the north korean situation is an emergency. one must act. the american economy has got to be dealt with. american individuals have been crushed because of their inaction. it is really disingenuous. it is nonsense. we have given them years and we have been patient and right now mcconnell is worried about the nature who is going to prevail this argument. congressional approval rating at 10%. president trump's is in 40s. president trump will win this fight. stuart: real fast, do you think mitch mcconnell has long left for being the leader of the republicans in the senate? >> he may look at nancy pelosi lasted. frankly with a 10% approval rating if they had any kind of dignity, either paul ryan or mcconnell, they would have he resigned their positions, not being in the senate but in their positions. they clearly have failed. they seem to not care. we'll see if the republican base in congress cares. we hope they do. stuart: now what do you make of some of the democrats and what they're saying about president trump's use of the use of word fire and fury i think it was? senator dianne feinstein is criticizing him about north korea. she says isolating north koreans has not halted their pursuit of nuclear weapons. president trump is not helping the situation with his bombastic comments. reckless rhetoric was the word used by senator schumer. what do you make of that? >> we should be trash-talking the north koreans 24/7 at this point. i worked on her campaign in 1992. she has been in the senate a quarter of a century, overseeing the ability of north korea getting to this point. it has only been diplomacy from day one and it has been failed. there is no isolation of north korea. we have been facilitating them, funding them, ranging from clinton to bush to obama. that failed. this is not about, if you listen to what president trump said, he is using language of the enemy that they understand. stuart: right, yes. >> he is not becoming crazy. he is saying things that the north koreans and the people that surround kim jong-un will understand. stuart: kim jong-un thinks that he can beat any and all american presidents because they will all, and have all backed off. ashley: they have. they call it strategic patience. what a load of rubbage. stuart: donald trump is president of the united states. i won't say they have met their match, that is a foolish thing to say but as you say, tammy, he is giving back in kind what they have done always to us. >> he wants them to know it has changed. he wants them to know this will not be the same. donald trump knows when you say something like that, he is not going to do a red line dynamic. we know how ha harmed barack obama. we've already seen donald trump act. he doesn't want to act or do it this way. people say we'll use nuclear weapons or something. we have enough conventional force to be able to deal with this situation. but it is imperative with everyone on guam is an american citizen. our allies matter to us. the japanese are clearly extremely concerned because of the medium range capability now. and i think donald trump has that in mind. i just grateful that he is the president at this point in the dynamic. north koreans must understand things are different now. stuart: we should be united in our opposition to this tyrant. >> indeed. stuart: well-said. thank you. we searched long and hard so we could he bring you an amazon story of the day. we got one. amazon teaming up with a dog trainer cesar millan, host of the tv series, the "dog whisper." wait for it. they are selling audio books for dogs, i am serious. a study shows 75% of doug owners play audio books for their dogs, were more calm and relaxed. ashley: i will try it. stuart: we searched hard for an amazon story. woof woof. coming up, cook county illinois, forcing a soda tax on sugar drinks. if you don't want to pay the tax cross the street. we'll explain that one for you. when we come back. ♪ copd makes it hard to breathe. so to breathe better, i go with anoro. ♪go your own way copd tries to say, "go this way." i say, "i'll go my own way" with anoro. ♪go your own way once-daily anoro contains two medicines called bronchodilators, that work together to significantly improve lung function all day and all night. anoro is not for asthma . it contains a type of medicine that increases risk of death in people with asthma. the risk is unknown in copd. anoro won't replace rescue inhalers for sudden symptoms and should not be used more than once a day. tell your doctor if you have a heart condition, high blood pressure, glaucoma, prostate, bladder, or urinary problems. these may worsen with anoro. call your doctor if you have worsened breathing, chest pain, mouth or tongue swelling, problems urinating, vision changes, or eye pain while taking anoro. ask your doctor about anoro. ♪go your own way get your first prescription free at anoro.com. that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? 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flock, the first time i ever heard you describe yourself as middle of the road. we'll be back to you. that is a promise. >> reporter: margaret thatcher said it was a bad idea. neil: thanks, man. we got to go. we have oil numbers for you right after this. i accept i don't bike as far as i used to. i even accept i have a higher risk of stroke due to afib, a type of irregular heartbeat not caused by a heart valve problem. but no matter where i ride, i go for my best. so if there's something better than warfarin, i'll go for that too. eliquis. eliquis reduced the risk of stroke better than warfarin, plus had less major bleeding than warfarin. eliquis had both. don't stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. while taking eliquis, you may bruise more easily... ...and it may take longer than usual for any bleeding to stop. seek immediate medical care for sudden signs of bleeding, like unusual bruising. eliquis may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical or dental procedures. i'm still going for my best. and for eliquis. ask your doctor about eliquis. ♪ ♪ stuart: yeah, if you had a hard night, expecting to come in this morning to see the dow industrials selling off big time because of north korea, you would be wrong. we're only down 60. 22,000 is holding. hold on a second, we got latest numbers how much oil we have in storage or not. ashley: if i heard that correctly, down 6.45? that is much bigger drawdown than expected. stuart: let me term that. 6.4 million barrels of oil less in storage. ashley: yes. stuart: because we used it. ashley: correct. stuart: that means we're using a lot. that means demand is pretty strong. ashley: almost three times more than so-called experts believed. that should push oil prices up because there is less to use. stuart: certainly holding them right around 50 bucks a barrel. we'll keep an eye on the bottom line. we are using a lot of oil. ashley: we are. stuart: got it. check the big board again. we're down 66 points. half of that loss by the way, is accounted for by one big name and that will be disney. i will get to that in a second. look at the big name technology companies we always check them at this time, facebook, microsoft alphabet, now, apple recovering to the $161 a share level. how about disney? that is a big drag on the dow. it is ending its content deal taking its movies off netflix. netflix is down. disney is down. the dow is down 60. now this. president trump talking tough against north korea. roll that tape. >> north korea best not make anymore threats to the united states. they will be met with fire and fury like the world has never seen. he has been very threatening beyond a normal statement. and as i said, they will be met with fire and, fury, and frankly power, the likes of which this world has never seen before. stuart: all right. charles hurt is with us, washingtons times political columnist, fox news contributor. chars, i have never heard an american president use language like that before, have you? >> no, i have not. i think it was a case where donald trump -- i think this was intentional. i think these were words that were picked out beforehand, and they were designed to be the language that kim jong-un himself speaks. sounds like something that quite frayingly he would have said. the difference being, that when he says it, it is usually hyperbole, and it sounds ridiculous, but when the president of the united states says it, knowing arsenal we have at our disposal, it is a credible threat. stuart: he is saying it deliberately, because all previous presidents have kind of backed off. they have been diplomats. they talked about negotiation and sanctions, do this, do that. this is donald trump breathing fire and brimstone and i think it is directly aimed at kim jong-un. he is saying believe this. i'm not like previous presidents. i'm president trump, and we're different here. >> yeah. stuart: that means it is a test of president trump, isn't it? >> it is. and it is a signal that this era of strategic patience is over. the strategic patience that was brought to you by the geniuses in the obama administration clearly didn't work. you know where were we -- we don't know where we were eight years ago versus today vis-a-vis of our intel because it has been getting so much wrong. you wonder if we took a different stance past eight years maybe we would be in a different predictment. remember, six, eight months ago, everybody was worried that donald trump doesn't listen to anybody, he is questioning our intel community. then of course you look at today, well, first of all he does listen to people. he is listening to his generals. we see that around the world, that is a good thing, he questions our intel. that is a very good thing. obviously they have been getting a lot of this wrong. stuart: the democrats have taken issue not with the president's stand, but with the language that he is using. i think dianne feinstein says bombastic statements. doesn't like that. senator schumer calls it reckless rhetoric. there is charles schumer. we need to be firm and deliberate with north korea but reckless rhetoric is not a strathegy to keep america safe. i'm not sure i like that, frankly. i think american politicians and leaders, you have to be united behind our president at this particular moment in time. >> absolutely. we're talking about tens of millions of people's lives are in the balance right here and what i want more than anything obviously the unity that you talk about but also i want a president who will be very direct, very clear, that we are not fooling around here. if you're going to threaten our people, millions of our people, with one of your missiles, then we're going to eliminate that threat and we'll do whatever it takes to eliminate that and i just want a president that will be that direct and he is and the previous administration, you know, talk about kicking the can down the road, they didn't want to deal with this at all. stuart: okay, now president trump has to deal with it. when a foreign leader with a nuke threatens to attack america, you deal with it. you have got to. charles hurt, thank you for joining us here. active news day. we're moving on to breaking news, paul manafort, fbi are searching his home? ashley: they are. they executed a search warrant of one of his homes. mr. manafort is former campaign manager of president trump. i'm assuming this is from his lawyer. mr. manafort has cooperated with law enforcement and serious inquiries, did so on this occasion. fbi agents executing a search warrant at one of paul manafort's homes. stuart: put up the dow industrials. this is classic case the market does not care. we have the north korea situation. we have the fbi searching paul manafort's home in connection with russia, russia, russia, the dow is down 45 points. almost all of the drop in the dow is accounted for one dow stock, disney, down 4 1/2%. in other words the market doesn't care about politics. at this moment in time that is the situation. s it la's chief elon musk is begging the federal government remove tax subsidies on electric cars. look at this. look at what he is getting. first a 7500-dollars credit for each electric vehicle. in all tesla buyers qualified for $284 million worth of federal tax incentives. look at this. tesla's new gigafactory in nevada is receiving 100% sales tax abatement for 20 years, worth $725 million. david williams with us, president of the taxpayers protection alliance. david, i know you want to withdraw subsidies from elon musks from this world but why do you think musk actually wants those subsidies withdrawn? >> good morning. elon musk is the king of corporate welfare. people on the other side of the argument look at him as this god or rock star but the fact of the matter he is king of corporate welfare. you cited some of the numbers. that is outrageous. don't forget the loan he got from the fed ral government, $465 million, but he paid it back at 2.6% rate. we didn't get that much back from the loan. this guy has been using subsidies for all of his businesses. let's grant him this one wish, let's say, mr. musk, no more subsidies, you have your wish. i would love to see that to wane him off subsidies. stuart: explain to me why is he asking to be waned off subsidies? why him? why is he asking for this. >> i think this is a pr move. i think these things are already in place. he has already gotten billions of dollars whether solarcity or tesla. this is a great pr move saying oh, i don't need the subsidies anymore. look at denmark. they got rid of the subsidies, tesla sales plummeted, went from a few thousand to a few hundred from one year to the next year when they got rid of subsidies. he doesn't mean this. this is pr move. this is set in tone. the department and congress and will not get rid of these subsidies. he said this. stuart: what they will do issue junk bonds plural to the value of 1 1/2 billion dollars. he is not looking to the taxpayer for subsidies. he is looking to the bond market to lend him his money to expand. there is nothing wrong with that business practice, is there? >> no, it isn't. that is why it is time for him not to get those subsidies, to move to the bond market if that is what he wants to do. taxpayers are paying billions of dollars for what purpose? states are involved in this. you mentioned nevada, california has generous tax incentives and zero emission credits that tesla is getting. there is a lot of market distortion, that is my concern. there is no free market in tesla. we need to get rid of did itoring shuns and see. will they -- distortions. that is what taxpayers want to see. stuart: he is green, david. he can do no wrong. have times changed? >> they certainly have. some people are wising up to it, he is sucking off the government. this guy created paypal. he was responsible for paypal which was a great private sector, private market, free market sort of thing. something happened after he sold it, he went to us, taxpayers to finance everyone of his business ventures. there is not a business venture that he has done that has not receive attacks payer subsidy. tesla, solarcity, spacex, getting money to the tune of a billion dollars. stuart: if the government hands it out for free i would be in line to take it. that is fact. >> that is why we need oversight. stuart: thanks for joining us. appreciate it. >> thank you. stuart: see you soon. chicago's mayor rahm emanuel files a lawsuit against the department of justice over his city's sanctuary city status. he says the trump administration makes every citizen of chicago less safe. we'll have to deal with that. also in our next hour, nigel farage will be on the program. what is europe saying about the unprecedented threat of a nuclear-armed north korea. we will ask him, around 11:15 this morning. ♪ rethink what's possible. rethink your allergy pills. flonase sensimist allergy relief helps block 6 key inflammatory substances with a gentle mist. most allergy pills only block one. and 6 is greater than one. flonase sensimist. ♪ ♪ ashley: there is plenty of skepticism that we will get full-fledged tax reform sometime this year. americans for tax reform president grover norquist remains optimistic however, and here's why. roll tape. >> as paul ryan told me a week ago. we used to be 80% agreement, when the house was pushing for border adjustability of the corporate income tax. now that the house has put that aside, and we're not going to do the bat, he says now we're at 97% accord. i think that is a fair characterization. we'll have to make some things permanent, some things not permanent in order to fit inside of the box the present rules require but there is agreement what goes in the box. i think if you make some things temporary, like alternative minimum tax they will never go away anyway. ♪ stuart: seeing something what is called a flight to safety, safe haven investing. gold is one of those safe may have vans, up 1%. 14 bucks higher. 1277. attorney general jeff sessions slamming chicago, this after that city sued the administration over the threat to cut off grants to sanctuary cities. joining us, ken paxton the attorney general of great state of texas. rahm emanuel claims if you cut off grants, it hurts taxpayers over all. what do you say? >> the mayor is making a decision, he is making the decision to cut off the fund. obviously he is making a choice about crime rates in his own city. he can do that but he should not expect federal funding is congress specifically required that cooperation. stuart: don't you have the same pushback? you want to eradicate all sanctuary city status throughout the state of texas. aren't you having the same pushback from austin? >> absolutely. austin, san antonio, dallas, houston. we're in a lawsuit with them right now over our sanctuary cities, that they just passed this bill this session. it is a really simple fight. it is about whether we'll allow illegals who are criminals or whoever suspected being criminals, are we going to let them stay in our cities. the legislature in texas said no. obviously the chicago mayor said yes. stuart: if it all goes to court, doesn't that just spin things out for a long, long time? you're stuck with sanctuary cities and people trafficking going on all over the place? >> just depends how this is resolved. if there is injunction put in place, our bill goes into effect september 1st. if there is an injunction it would slow us down. we're hopeful with the fifth circuit, if we lose at district court will hear it quickly. we're confident. the supreme court looked at issue in arizona case said it is fine. we're cost we'll be successful. stuart: i always think of texas getting it right when it comes to the ethnic mix and influx of hispanics into texas. you always seem to get it right. now we have this sanctuary city question. i wonder what is public opinion in the state of texas with what you are doing trying to get rid of sanctuary cities? >> so it is all about the narrative. the media has been out with a narrative that it is show me your papers deal, or that somehow you're going to require victims of crimes or witnesses to crime to come forward and then they would be deported. that is a false narrative. the truth is, those witnesses would not, they would not be allowed -- police would not be allowed to ask them questions about immigration status and it is not a show me your papers deal. it is about sending criminals, people suspected of crimes who are illegal out of our cities. that's it. it is about safety. it is about law enforcement. it is about protecting our citizens. we know from statistics state police do, we have hundreds of thousand of crimes committed by illegals. that's what we're trying to stop. stuart: i have to ask but the dallas police department, we're told they're leaving police officers, they're retiring in record numbers. they have got2 openings expected this month out of a department with 3500 officers. i'm told exodus of police from the city of dallas. you're the attorney general. what about this. >> they have done a great job of recovering, i applaud them for that. part of problem is pension reform. legislature passed a bill this session goes into effect september 1st. a lot of those officers are uncertain how it will impact them. especially ones that have been there a while. hey, since we don't know how it will affect us individually, we'll retire. in addition higher salaries paid by the suburbs, significantly higher. a lot of them since i have uncertainty in my pension i can get paid up to 20%, maybe more in the suburbs, why not leave now. stuart: you're the attorney general of texas, would you pass an opinion please on the north korea situation? why not? what do you think the president should do? >> you know what? i mean it's a very difficult situation. obviously we have tried being passive on this issue. i applaud president trump for standing up. you can't let this bully run amok or we'll be facing some very difficult challenges down the road. i say take a strong stance now, deal with it now. stuart: okay. you're a frequent guest on the program. i throw all kind of things at you. you have always got a response. we like that. ken paxton. thank you. >> we're from texas. we as you have an answer. stuart: that's true too. appreciate it. senate majority leader mitch mcconnell says president trump had excessive expectations when it came to how fast d.c. can really work. mark stein is here. we're talking about that with him for the next hour. -- mark steyn. ♪ (microphone feedback) listen up, heart disease. you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies and data without insights. and fragmented care- stop getting in the way of patient recovery and pay attention. every single one of you is on our list. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. juswho own them,ople every business is different. but every one of those businesses will need legal help as they age and grow. whether it be help starting your business, vendor contracts or employment agreements. legalzoom's network of attorneys can help you every step of the way so you can focus on what you do. we'll handle the legal stuff that comes up along the way. legalzoom. legal help is here. track your pack. set a curfew, or two. make dinner-time device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and control. change the way you wifi. xfinity. the future of awesome. stuart: sir, let me put it to you directly. i think that the ball is in china's court at this point. what say you? >> stuart, i would agree with that but i think we've created that somewhat because we have, i listened to an interview of donald trump in 1999, i think it was where he had stated what needed to happen was very forceful negotiation, if not an elimination of the threat. we have had 24 years of failed negotiation, failed diplomatic efforts. you can thank china for that, because north korea is essentially been a proxy for china terms of causing trouble in that area of the world. so it is in china's court and china, china can fix this if they want. the question is, do they want to? and that is the 24-dollar question. nobody knows the answer to that. stuart: i'm looking to the next step here. north koreans have issued a direct threat to attack guam, flat-out they will attack, that is what they have said. i suggest that the next missile that they launch whether it is short-term, long, doesn't matter, next missile they launch we have to shoot it down. we have no choice. that will be the next step. what say you? >> well i'm not sure i agree with that. i think what we have to do is, we have to make sure that the chinese know what we're getting ready to do before we do it, so they're advised. number two is, whether they launch a missile or not, we need to be prepared and i'm sure we are, in terms of deployment of troops and the weapons of war, conventional weapons of war, and number three, is shooting down missiles is hard. it is not easy. so, if in fact our only response to shoot down a missile and miss, we have to have another response. stuart: is that what is happening right now with secretary of state tillerson in guam, telling china, south korea, and japan, the next missile that flies we'll try to shoot it down? they're laying groundwork for a shoot-down, is that possible? >> i think they know that. i think that, i think we're at that stage now that if they want to continue to test, we'll have to start using the technology we have to eliminate the evaluation of whatever test they might put forward. all done by... yesterday. ♪ ♪ they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. ♪i'm living that yacht life, life, life top speed fifty knots life on the caribbean seas it's a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany♪ ♪watch this .. .. stuart: republican leader of the senate mitch mcconnell could not bring home the repeal and replacement of obamacare. the vote failed, senators left down for the august recess. failure. the republicans could not make good on a 7-year promise. mitch mcconnell blames donald trump. he says the president doesn't understand the slow, churning, legislative process. he has not been in this line of work before, he had excessive expectations about how quickly things happen. that statement has not gone down well nor should it was granted which mcconnell had to put up with a president whose tweets frequently got in the way of legislative action, and getting would of the gigantic mess known as obamacare could never be quick and easy but to put even part of the blame on the president is not going to fly with voters. they will not turn on donald trump, they will turn on the republican party. dodging the blame won't work. call them back to washington, mister senator. obamacare is collapsing, people are getting hurt and you have a job to do. start supporting your president. his base is still with him, yours is not. the third hour of "varney and company" is about to begin. stuart: sarah four british accents around the set today all of them singing along. we are the fab four. serious stuff. there are the fab four around the set. >> when we didn't get back. stuart: you know what the producer said to me? get on with it. he does. mark stein does have an accent. we are down 58 points. on a day where there is war talk, north korea threatens to go after guam, we are only down 60 points. we are joined officially by an international best-selling author named mark stein. i want to get your reaction to what i said about mitch mcconnell. do your job, the president holding onto his base and you are not. >> i'm sick of listening to mitch mcconnell explain why nothing can be done. that is not what he did when he was running in 2010, 2016, his autobiography incredibly is called the long game. it is such a long game that none of us are going to live to see it. and whether you are in grade too. his long game is too long, he should get on with it or get someone else. stuart: our colleague, lou dobbs launched a ditch mitch campaign. are you with? >> yes i am. i would like the guy who runs kim jong un's nuclear program to set over the as majority leader. they would you like about him, that guy leaps from one stage to another like an alpine jammy going from crag to crag. stuart: you were saving that up. >> i stole that. stuart: you deal with serious stuff, you make us smile and laugh. i want to talk about north korea. donald trump comes out with very strong, bombastic statement, fire and fury like the world has never seen before. do you approve of that language? >> one of the problems is a guy says he wants to nuke you and someone stands up at the united nations and says the gravest concern, the government -- that hasn't got us anywhere. talking to kim jong un in the same language kim jong un uses. i am happy with that. my concern is whatever you feel about north korea, this is the template, basketcase states i nuclear rising. how it goes for north korea, iran and all the people who want to go nuclear like sudan will look at how this plays out and understand that is going to be there template moving forward. it is critical he gets this right. stuart: stay for the hour please. >> i am honored to. stuart: flattery, thank you so much. let's deal with the impact of the north korea situation on our financial markets. shah gilani is with us, we used the expression the black swan event, comes out of nowhere, rearranges the a financial equation, is this a black swan event? >> know the only black swan event this may result in is because of some nukes flying somewhere. stuart: that would be enormous. >> this is rhetoric right now, fire and fury is reminiscent of shock and. it is not appropriate language. they are not selling off at all. it is a minor blip. stuart: that did get to me. we are down 50 points on the dow industrials, much of that loss is accountable by disney which is down 5% and it is a down stock. i would conclude that frankly there is no market reaction to north korea as of this morning. >> there is no reaction and you are right. disney is moving the dow. waiting to see if anything happens will be the escalation and rhetoric or anything for missile start flying. stuart: when we had the first gulf war, the shooting started stocks went straight up. the day the shooting started they went up. same in 2003, invasion of iraq, we go in stocks go up. think i some remote possibility that if the shooting starts over north korea stocks will go up. >> there is an outside chance. stuart: why are you laughing? >> you are pricing in -- i understand you are an optimist but -- wants to be here when the dow opens the day that happens. stuart: thank you. return to shah gilani, the voice of reason. of the shooting starts, only a remote possibility stocks go up. >> best case is they have nowhere to go but up. a blip can't happen, a potential for profittaking, talking about the market being overpriced, i don't think it is overpriced. investors are nervous about the leadership stock, getting tired here even though tech stocks have started to leave again. stuart: you are a tough guy. >> i am a raging bull but doesn't mean we can't have a few blips, some profittaking. stuart: deal with disney, getting into the streaming business, taking the movies off netflix, 2019, they are late to the streaming business. >> better late than never. they have a great deal with netflix, a lot of revenue with other cable providers they sell content through. this is a matter of timing. the time is correct to do it through 2018-19 to go fully subscriber-based and this is where they have to go. they stocked themselves because revenues will get hit. it will take time to build up the digital platforms they need so the stock is prone to a $90 level. stuart: would you buy it at 90? >> let's go to 90. stuart: would you buy it at 95? >> 95. stuart: i understand, you are all right, thank you very much. let's check various markets, the price of oil, we had news this morning we have drawn down 6 million barrels of the stuff, a lot more than expected. >> gasoline stocks were higher than expected which cancels the big drawdown in oil. stuart: let we give you the price of gas, $2.35 national average. if we are actually using a lot of gasoline we have more in storage. maybe not. $2.35 is where we are on gas. started occasions at an all-time high, reports that it is going to be bought. up goes the stock. hold on, it is coming. snore from stein. apple back above $160 a share. close to its all-time high as you said. apple back in favor this morning. >> tremendous complete, tremendous stock and we see the iphone x, the 10th anniversary edition, their expectations are staggering. we own it and we will add to it. of the iphone comes out, we will add. stuart: raging bull notwithstanding. there is a lot more for you. if you are a baby boomer and expect better care to pay for the replacement, don't count on it. betty mccoy is morning boomers be where and she has her reasons, we will be back but first, hold on, we are joined by that gentleman right there. the gentleman is nigel for raj, what is your role in the drama? we will be back. up. ael: let's do this. potsch: this new truck now has a cornerstep built right into the bumper. gary: super cool. potsch: the bed is made of high-strength steel, which is less susceptible to punctures than aluminum. jim: aluminum is great for a lot of things, but maybe not the bed of a truck. potsch: and best of all, this new truck is actually- gary: (all laughing) oh my... potsch: the current chevy silverado. gary: i'm speechless. gary: this puts my ford truck to shame. james: i'll tell you, i might be a chevy guy now. (laughing) stuart: next guest a member of the european parliament, fox news contributor, showing nigel for raj -- nigel farage. what is the reaction to the north korea situation? >> surprisingly mute. if you look at european newspapers on the news reports talking about the north korea crisis, it is down the agenda. europe doesn't really take defense very seriously. of all those european countries, members of nato, only five of them later to present membership fee, pretending north korea was not happening, leaving it to everybody else. stuart: mark stein with us in new york, european sitting back and lobbing tomatoes and eggs at donald trump. >> they would like to blame him for this but to nigel's point, the richest country in history, kind of defend themselves and economic basket cases, in north korea are nuclear powers. how long will that last? stuart: in france, a driver plowed a car into six soldiers who were patrolling a paris suburb. they arrested a suspect and not ruling out terrorism, that is the develop and of terror, there is this. looks like angela merkel is going to win, continuous chance in germany in the election next month. what do you make of that? >> the real change in european politics, the prime ministers of hungary, poland, the czech republic and slovakia have said to the european commission we will not accept migrants quotas of people coming across the mediterranean, that is where the political story is. in germany, angela merkel made the most catastrophic policy era of any western leader of modern times. thing she is up against, martin shultz the socialist is even worse. we are not going to get much change in germany. >> it connects with the story from paris, basically the political class of europe says you got to get used to it. the least they could do and the least they could ask is to stop importing more. stuart: before you go, you say ministers in britain backtracking [on] promises and you might concern to frontline politics if this continues. and what role do you see your self? >> i'm disgusted. 13 million people voted conservative a few months ago on a promise they would take us out of the european union, take us out of the single market and reduce net migration to tens of thousands. couldn't have been clearer. we have senior figures like the exchequer backing up on watering it down. over the last 20 years, we find in a couple years time that brexit does not happen, we will fight the battle again and i will get back to the front line. stuart: hasn't there been backtracking on the part of the british electorate and european electorate as well backtracking away from this kind of policy? >> not one little bit. in the european parliament, populism is dead. what no one tells you is in the first round of the french presidential election, 46.5% of voters voted for succession asked candidates. this wave of people wanting to claim back their identities and countries has barely begun. stuart: the base is holding very strong and your parliament. back to your money, we don't have a serious selloff on wall street despite north korea but we have a serious selloff in the individual stocks like fossil, and accessory company making watches and that kind of thing, down 23% after a week sales forecast, down it goes. there maker, hostess, apparently not as many as we use to come out of fashion, whatever it is. stock is losing 5.5%. how about that for a drop in price? 81/4%, what did they do? they gave a weak forecast, down $169. one belonged to elvis presley and mel gibson. still not as much as the next one we are going to show you. this is the mansion from the beverly hillbillies movie and series from the 60s. it is the most expensive residential listing in the united states. weight until you hear what we have for you. stein is blanching. we will be back. ♪ ♪ the world is unprepared ♪ i am a billionaire ♪ rethink what's possible. rethink your allergy pills. flonase sensimist allergy relief helps block 6 key inflammatory substances with a gentle mist. most allergy pills only block one. and 6 is greater than one. flonase sensimist. ♪ so it only made sense to create a network that keeps up. introducing xfinity mobile. it combines america's largest, most reliable 4g lte with the most wifi hotspots nationwide. saving you money wherever you check your phone. yeah, even there. see how much you can save when you choose by the gig or unlimited. call, or go to xfinitymobile.com. xfinity mobile. it's a new kind of network designed to save you money. stuart: in the early days. ♪ lonely baby ♪ stuart: hope you turned the microphones off. you do thing, don't you? >> i have -- hasn't sold as much as heartbreak hotel. need to turn the ago chamber up. stuart: why are we playing elvis? in honor of this story. you can rent beverly hills mansion, $4000 a night. he lived there from 67 to 73 with his then wife priscilla and daughter lisa marie. he left shortly after his divorce. mel gibson, $400 weekend estate includes 11 bedrooms, three hilltop villas, $29.7 million. gibson discovered the spot the estate sits while scouting locations for that movie apocalyptic. we told you about the mansion from the beverly hillbillies movie, the most expensive residential listing in america. what is the asking price? $350 million. 25,000 ft. of living space, 10 acres of land, a ballroom, wine cellar, tennis card, parking garage, what was that? ashley: 75 feet long. look at this. illustrations of dubai's new underwater villas, part of the project 15 years in the making set for completion next year. they are anchored to a man-made island in the persian gulf, 125 of them. a coral reef garden, they are on sale for under $300 million. back in a break, just a moment. stuart: tom brady -- headline. if you are a baby boomer, to pay for your new replacement a cataract operation in 10 or 20 years, do not count on it. having scared you all to death, she will explain what she is talking about in a moment. ♪ ♪ hey, i'm the internet! i know a bunch of people who would love that. the internet loves what you're doing... ...so build a better website in under an hour with... ...gocentral from godaddy. the internet is waiting. start for free today at godaddy. ♪ stuart: back with the turnover. we love the canadian -- canadian music. stuart: down a little more. you were expecting a big selloff, we haven't got it, down 70 points, accounted for by disney. mitch mcconnell, donald trump expected too much too quickly from congress. >> has not been in this line of work before and i think excessive expectations about how quickly things happen in the democratic process. stuart: there were gasps from our next guest while the soundbite was being played. here is betsy mccoy, author of beating obamacare. why are you gasping? >> americans are so sick of these career politicians and their line of work and that is why they elected donald trump and congress is dithering about keeping his promise to repeal obamacare donald trump is keeping his promises with rapidfire speed. new supreme court justice, pulling out of the transpacific ownership, pulling out of the paris climate accord, launching a massive deregulation, moving toward energy independence and so much more, mcconnell has to get into high gear. stuart: should he no longer be the leader of the republican -- >> we should be asking that question? has he failed? most people would say yes. stuart: in ats for your appearance i scared the audience by saying you baby boomers might not get your cataract operation or noon the if betsy mccoy is right. what do you mean? under what circumstances? >> democrats are rolling out medicare for all or medicare for more meaning people in their 50s but when boomers have to compete with the younger population for healthcare they will be pushed to the back of the line as they are in a single payer country. look across the atlantic and england where the british national health service facing a budget crunch is targeting the senior and boomer population saying you have to wait 13 weeks for a colonoscopy, can't get hip or knee replacement anymore. you have to wait six months for angioplasty, that is virtually a death sentence. seniors in this country will face the same prejudice, they will be told when they get a procedure they won't have as many years to benefit from it so we will save it for somebody younger. exactly what british people are told when they reach a certain age. stuart: people in britain like socialized medicine because it is essentially free. it is paid for by somebody else. they will put up with the three month wait for a knee operation. >> the lowest cancer survival rate in western europe because they put up with that, cancer is diagnosed too late and treated less aggressively than in the united states so they may like it but they are dying sooner because of it. stuart: your previous mission was killing obamacare. now killing single-payer. >> i want to make sure seniors i told the truth, i don't mean 80s and 90s the people in their 60s who are led down the garden path, people on medicare, people having a heckuva time getting a doctors appointment because many won't takers stingy medicare payments. to expand medicare in their 50s will mean 10 million more people, 20% increase, the same doctors appointment with a doctor willing to take medicare, won't be helped. stuart: the poll from erica too, since this came along that was the answer to mitch mcconnell, democrats shoved thing, got a hammer and hammered it down the gullet of the american people, the legislative agenda, they change the politics of this, the answer to more and more americans if obamacare is going to collapse maybe we will go to a single payer. not like mitch mcconnell, they change the politics when americans -- stuart: thanks for joining us. bringing that thing with you. we breaking news in the last hour. the home of paul manafor it has been searched by the fbi. paul manafort is the campaign manager. what is the significance of the home search? >> a predawn unannounced fbi raid on a person represented by sophisticated counsel means the fbi -- voluntarily, with sophisticated counsel, and the federal judge, probable cause meaning evidence of criminality, the place to be searched and things to be seized. the custodian of these documents will not give them to us voluntarily. stuart: is he all part of this russia russia russia thing. stuart: i haven't seen the affidavit fbi agent sign. it would state what they are looking for. and with russian billionaires and wealthy ukrainians as well. this is bad for mister manafort. the most potent tool, a predawn unannounced raid via search warrant. stuart: not good. north korea situation, the next step might be us shooting down a north korean missile. judge napolitano: makes eminent sense. if they should a tortoise we have to shoot down. stuart: any problem with the president ordering a shoot down or does he have to conform with the war powers act or some congressional restriction? judge napolitano: war powers resolution permits the president to take offense of action on his own, he can attack before an attack reaches us for 90 days, then tells congress he has a second 90 days, then expressed authorization. stuart: not much of a restraint on his action. judge napolitano: when nixon vetoed the war powers act and acted, they overrode his veto, he thought it restricted the president from too much. congress that it was liberating the president because prior to that congress had to authorize every single military incursion. so donald trump had 903 days to stop these missiles. he may have wanted to go to congress because he wanted political consensus behind him but in an emergency he need not do so. stuart: 90 days from now. judge napolitano: from the day the first american military action commences. a few minutes ago you said you thought it was short. stuart: stein is on the set. i get confused. we look alike. serious stuff. to overturn a law in arizona which bans controversial mexican american studies program. officials say the program stokes racial resentment, teachers say man violates their constitutional rights. first word to you. judge napolitano: teachers, for the judiciary to decide. stuart: you have no cultural comment. judge napolitano: except you hate this. >> agree with that last comment. i am disturbed at the idea you teach different ethnic groups. and agreed historical past, we have an agreed future and that is the problem. and absolutely horrible and not a lot of history in it. you were educated in england. the object of school is to lower self-esteem to undetectable levels by the end. and actually teach you stuff thereafter. judge napolitano: the government owns the school and has to provide more freedom of speech than socialist joint that you went to. stuart: i am losing control here. now this. pretty much everyone in america except perhaps myself knows the restaurant chain huddle house. huddle house. on your screen, ladies and gentlemen. we are joined next by the ceo. he is frustrated with congress. he is on the way into the studio. gold up on the north korea threat, $17 higher. that is called safe haven investing. more on that in 90 seconds, stein is will -- with us. he sits on the set passively. we will be back. today, we're out here with some big news about type 2 diabetes. you have type 2 diabetes, right? yes. so let me ask you this... how does diabetes affect your heart? it doesn't, does it? actually, it does. type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. and with heart disease, your risk is even higher. you didn't know that. no. yeah. but, wait, there's good news for adults who have type 2 diabetes and heart disease. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease and lower your a1c. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. do not take jardiance if you are on dialysis or have severe kidney problems. other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. so now that you know all that, what do you think? that it's time to think about jardiance. ask your doctor about jardiance. and get to the heart of what matters. >> i am nicole pedallides with your foxbusiness brief, safe haven of gold jumping off stocks selling off, all of this on tensions with north korea. markets tanked, they had been up 60 and down 60 after donald trump spoke of fire and fury warning north korea that they are considering plans for a missile strike on the us a specific territory of guam. gold pulled off $16 and 5 sessions, gave $17. gold with a safe haven on the rise. they have been running up since early july, pyongyang's first attempt, freeport mcnamara 17% have been on the run on the rise. liberty mutual stood with me when this guy got a flat tire in the middle of the night. hold on dad... liberty did what? yeah, liberty mutual 24-hour roadside assistance helped him to fix his flat so he could get home safely. my dad says our insurance doesn't have that. don't worry - i know what a lug wrench is, dad. is this a lug wrench? maybe? you can leave worry behind when liberty stands with you™. liberty stands with you™. liberty mutual insurance. it's a highly contagious disease that can be really serious... especially for my precious new grandchild. it's whooping cough. every family member, including those around new babies, should talk to their doctor or pharmacist about getting vaccinated. stuart: our next guest should prepare himself to be insulted because we never heard of his restaurant chain, stein never heard of it. >> most americans have. stuart: the ceo of huddle house. >> you have a standing offer to come to visit us. you might have to alter the accent a little bit. stuart: 355 locations and we have not heard of you. >> we have a restaurant open in east orange. new york is opening in the next few weeks so there is an opportunity to get to us if you want. stuart: i would bet that you are rapidly automating your restaurant system as rapidly as you can because you don't like $15 an hour, you don't like obamacare. you are rapidly alternating. >> we are trying to evolve and it is difficult to keep up with that. if you think of going from $7, a dollars to $15 an hour, double the cost of your crew wages sales in the restaurant industry grow at 1% to 2% a year if you are lucky so if you double your crew wages there is no way to keep up with that from a sales standpoint. stuart: how far can you go with automation? ordering from tablets using kiosks? >> that is it. equipment on the back line, productivity, efficiency with training but it is very difficult to compensate. a lot of employers think you will find ways to do more with fewer people which is going to have the reverse effect, more people out of work, minimum wage employees. stuart: mark stein has a comment on huddle house. >> aside from the fact i like the look of those staffed - rounds which is a brilliant idea i think there is a limit. the point about a place like huddle house is it is convivial and friendly as a real-life fresh and blood waitress is a power to that. >> it will change the complexion of a business when you order from a tablet versus somebody coming over saying hey, darling, how are you doing, changes the experience. stuart: you don't want that but are being pushed into it. >> most of our restaurants are in the southeast so we are insulated a little bit but at some point we know the minimum wage is coming. stuart: that is minimum wage, $15 etc.. the story is obamacare, you have to be frustrated they haven't done anything. >> it is frustrating they can't work together to make something happen. for our franchisees who have under 50 employees it is a disincentive for them to build another restaurant, create more jobs because it will create more of a financial burden on them. to cover insurance once they go over the 50 employ minimum threshold. stuart: lobbying hard? >> we are doing what we can, the national restaurant association, we support them into a great job lobbying in washington and things like that make a big difference. stuart: what is the difference between huddle house and waffle house? waffles are a lot. >> buildings are significantly different. we have a different menu platform then they do. fryers, fried food, we are in a lot more -- stuart: competitors. >> they are one of our big competitors was the other competitors mcdonald's, we have a low-price point, the same communities, 80% are shared with mcdonald's much less ihop, denny's and cracker barrel less than 15%. stuart: average check size. >> $13 with an average, per person is $6.50. if you think about that, the same you would pay for the mcdonald's experience you can come and have a delicious sitdown meal in one of our restaurants. stuart: why did you come on the show today? >> to promote our brand. i want to get you into the huddle club. the official huddle club hat. you may want to participate. stuart: the camouflage hat. stuart: you think i will where is this? >> probably not. stuart: the end of the segment. stuart: how much will you give me to where it? >> a greased biscuit hashbrowns. >> i will wear it for that. stuart: i think you are all right, thanks for joining us. huddle house guy. >> i will have the hashbrowns. stuart: while we are on the subject of food look at the stock price of mccormick, the spice people, up 4%. why? they got an upgrade from one investment firm. one upgrade, up they go. how about this one? bernie sanders is writing the team guide to political revolution. should we call it chicken soup for the socialists all? that is what we are going to do. we will be back, do not despair. ♪ is this a phone? or a little internet machine? 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[ laughing ] so all you pay for is data. see how much you can save. choose by the gig or unlimited. call or go to xfinitymobile.com introducing xfinity mobile. a new kind of network designed to save you money. you're searching for something. whoooo. like the perfect deal... ...on the perfect hotel. so wouldn't it be perfect if... ....there was a single site... ...where you could find the... ...right hotel for you at the best price? there is. because tripadvisor now compares... ...prices from over 200 booking... ...sites ...to save you up to 30%... ...on the hotel you want. trust this bird's words. tripadvisor. the latest reviews. the lowest prices. stuart: bernie sanders is releasing a how-to book for teens interested in political activism called bernie sanders's guide to political revolution. any comment, mark stein? >> he is the world's oldest teen idol which tells you something about politics. is a kind of neighbor of mine in the far north of new england and the word there is he is going to run again. he will be running up against a guy who is 74. the fact that bernie is only 112 isn't going to seem like a big difference. the best thing he ever did for teenagers and the use of this country was when his wife ran that college into the ground and closed it down in vermont. if she could only closedown every other college, that would be a great contribution to the youth of america. go bernie, go mrs. bernie. stuart: this one is for you. leaked emails show mayor bill diblasio berating staff over frenetic spelling. this is literally the 100th time i am reminding you phonetic spelling requires one syllable to be indicate emphasis in pronunciation. i have no idea why you guys can't get it right. the city staffer told the new york post, in plenty of meetings, known to kick staff out of meetings. this one is for you. >> annoying when the emphasis is on the wrong syllable. stuart: very good. >> just reading it off of the prompter, put it in canadian form. stuart: on the spur of the moment. >> i didn't know about this story. stuart: i can't do that, nowhere near you. get to get up at 2:50 a.m.. >> they want an american to do it. you got to be the real deal. stuart: you know i am a citizen and you insult me. >> you are as american as apple pie à la mode. stuart: never forget that one. you are all right, more varney on the all-american varney after this. ♪ possibl rethink the experience. rethink your allergy pills. flonase sensimist allergy relief uses unique mistpro technology and helps block 6 key inflammatory substances with a gentle mist. most allergy pills only block one. and 6 is greater than one. rethink your allergy relief. flonase sensimist. ♪ . . . . stuart: it has been a special show. the dow is down 4points. it has been a special show, especially last hour we've been joined by mark steyn. the man is brilliant, funny, insightful. all together a good guy. i think you're okay, mark. >> flattery is the mother's milk of -- stuart: my expression. connell mcshane in for neil. you, sir. connell: look at three of you. no irishmen on the set. good to see you, stuart, thank you very much. interesting to watch the market reaction, everything from going on to fire and fury, the north korean threat, some people, many people are taking more seriously than they had been. the feel of it may feel like we're on the verge of war but in addition to the markets enter secretary of state rex tillerson trying to calm everybody down. >> i think americans should sleep well at night. have no concerns about this particular rhetoric over the last few days.

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