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tv   Varney Company  FOX Business  March 22, 2018 9:00am-12:00pm EDT

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last few years. but the fact that trump used social media got washington upset. >> yeah. exactly. >> we don't want a trade war. >> yep. >> markets are going to be low. >> markets are going to be down about 300 points this morning. "varney & company" has you covered on that. stuart varney, good morning. stuart: yes, we do. good morning, good morning, everyone. first thing today our president tweeted this. crazy joe biden is trying to act like a tough guy. actually, he is weak. both mentally and physically. and yet he threatens me for the second time with physical assault. he doesn't know me, but he would go down hard and fast crying all the way. don't threaten people, joe. yesterday joe biden said he would beat the hell out of donald trump if they were in high school over his comments about women. the comments rose to joe biden's bait. what will they think of the president's tweet? the president of the united
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states saying things like that. we will ask. what will voters think about the gop spending bill? yeah, there's a deal. but it's not the deal that gop voters voted for. there's hardly any money for a wall, and there's no settlement of the dreamer issue. senator schumer says we democrats feel very good. facebook'smark entering apologized for the misuse. he says he's not sure we should be regulated, and he's happy to testify before congress if he's the right person to do it. investors are not happy with that. but the stock market premarket and premarket the stock is down five bucks. that's 3% all the way back to 164. three hours from now, the white house will formally announce tariffs on chinese exports to america. china is reportedly ready with tariffs on its own on america's agricultural exports. that's not going down well with investors. whether it's the start of a trade war or not, it is a sell
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signal to many people, and the dow will be down about 300 points of the opening bell. all right. i say it every day. jam-packed show for you. three big hours. here we go. "varney & company" is about to begin. . stuart: normally, we start with an animation. that's what we call it. fancy music. okay. we missed it. i don't know where it went. maybe we lost the tape. liz: that looked really good you standing there like that. stuart: animation. liz: there we go. fantastic. stuart: let's start with the futures. 300-point drop for the dow industrials. i want to ask you, liz. is this drop primarily the result of the president's announcement on tariffs against china coming up in three hours. liz: yes. we should be looking at adm,
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arch daniels and midland. china's going to retaliate. they're going to go after the farm factor. soybeans. eight of the ten states, trump won. so this is retaliatory right at his base to get at those voters that voted for him, so this is now a midterm election issue. stuart: so investors think this is the start of a trade war. ashley: they do. also somewhat aggressive threat fed yesterday. but i think this is about a trade war and not only with china but this has the potential to spread across the world. stuart: i want to get back to that tweet from the president, which was a response to a tough talk from joe biden about president trump. first of all, listen to joe biden. >> asked me would i like to debate this gentleman. i said, no. if we were in high school, i would take him behind the gym and beat the hell out of him. stuart: i'll show you again. here's what president trump responded to what joe biden said. crazy joe biden is trying to act like a tough guy.
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actually, he is weak both physically and mentally, and yet he threatens me for the second time with physical assault. he doesn't know me, but he would go down fast and hard crying all the way. don't threaten people, joe. all right. that's from the president of the united states. joining us senator john kennedy. what do you make of's tweet this morning, senator? >> how can i say this, stuart? what the vice president has done, vice president biden, you can only be young once, but you can always be immature. you know, he and the president, they could never have a physical fight because it would take vice president biden with no disrespect, he has a mocking bird mouth. it would take him four or five hours to discuss the rules. they would both fall asleep. they could never have a fight. i mean, this is silly.
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stuart: but do you like hearing this kind of language from the president of the united states? i think a lot of people will be embarrassed by it. >> i don't like to hear it from the former vice president or the president. i will say it again. you're only young once, but you can always -- you're never too old to be immature, and this is silly. stuart: i want to talk to you about mark zuckerberg. the chief guy at facebook there. he was asked about testifying in front of congress about that data breach. here's what he had to say. roll tape. >> i'm happy to if it's the right thing. facebook testifies in congress regularly on a number of topics. some high profile and some not. so what we try to do is send the person at facebook who will have the most knowledge about what congress is trying to learn. so if that's me, then i am happy to go. stuart: he will testify in front of you, senator, if he's the right person for it. your reaction to that. >> facebook is a wonderful american company, but it's no longer a company, stuart.
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it's a country, and they have enormous power. they do enormous good, but we need to talk about whether facebook has been a good steward of our data. we need to talk about how we can preserve the good aspects of facebook while stopping the corrosive effects. mr. zuckerberg needs to come. so do the other ceos. last time we had a hearing, mr. zuckerberg sent his lawyer. and i don't know what he paid him but he got his money's worth because his lower didn't say anything. he spent the whole time dodging, bobbing, weaving, stalling, restalling. i mean, he's a good lawyer, and he did his job. mr. zuckerberg -- these issues aren't going away. i'm not interested in regulating facebook half to death. but some of their actions recently, they're kind of getting into the foothills of creepy here, and we need to talk about this stuff. stuart: sir, you're on the budget committee, and i want
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to ask you about this spending agreement that we have. you are not happy about it; right? >> no. you know, the president didn't get his wall. but as best i can tell, senator schumer got a swell tunnel. stuart: yeah. >> this -- i don't know whether to hope this is intentional or negligent because it looks to me like it represents congress' best attempt to borrow and prosperity. i'm not going to vote for it. i'm told, look, it's either this or shut down government. well, that's a false vote. i don't want to shut down government, but i'll do what i have to do. and i'm not going to vote for something that has this much red ink, a trillion dollars plus. no effort to try to reduce spending, find the extra money for reduce spending.
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this is manure management. keep us in the dark and feed us management. mushroom management they call it. and i'm not going to vote for it. stuart: senator, we hear you. senator john kennedy. republican louisiana. thank you very much as always, sir, for being on our program today. >> you bet? stuart: yes, sir. now, the senate minority leader which you can schumer, he is happy about this spending bill. here's the quote. every bill takes compromise, and there was plenty here. but at the end of the day, we democrats feel very good because so many of our priorities for the middle class were included. come on in, white house legislative affair director mark short. the democrats very happy with the spending bill. a lot of republicans are not. what say you, sir. >> well, stuart, i think constitute step back and look what we delivered on this bill, the largest pay increase of our military in the last ten years. it's what president obama hollowed out since world war ii. it does provide the
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$1.6 billion we asked for the wall, despite your previous guest comments. this is 1.6 billion, keep in mind, over the next six months. six months of appropriations to complete this fiscal year. 1.6billion is 110 miles of new construction along the southern border. it provides the funding we would ask for combating opioid epidemic, it provides $20 billion for infrastructure we asked for, it also provides a couple of different legislation the nra support that helps tighten rules on background checks, and it also provides the legislation we wanted on stop school violence act. so there's a lot of things in this bill as well that we're proud of. stuart: here's what we're hearing from the republicans both in the house and the senate. this is not a bill that republican voters voted for when they voted in the presidential election november 2016. this is not what we voted for. would you respond directly to that. >> yeah. stuart, i think the
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president has articulated that we needed to rebuild the military and the part of that was parting with democrats on domestic spending. congress has not filled the appropriations process appropriately in the last 22 years. not since 1996 have they gone through the normal process. the process is broken, which means you end up with a system that you have a biological bill that is negotiated on a bipartisan fashion. it's under kennedy, the sort of choice you're faced with of shutting down the government or supporting the military. the answer is for congress to do their job and actually complete the bills on time. the president submitted his budget last february. the appropriations process has to be completed on september 30th. we've had six continuing resolutions but secretary mattis has told you since he's basically funding broken equipment as opposed to picking up new equipment that he needs to do. if congress would do their job, we wouldn't be in this position. but since congress has failed to, we're negotiating on
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things on this bill and ending up getting things we didn't ask for. but there's no doubt it provides more nondefense spending than we would like. but the alternative is not shut down the government, not provide the military the resources they need, not provide the border security they need. stuart: yeah, i do have to ask you about the back and forth between president trump and joe biden. that extraordinary tweet from the president this morning. your response to it, sir. >> well, stuart, i don't edit's tweets. i think the reality is you've seen them many times as the american people appreciate he's somebody who's going to stand up for himself. and they appreciate a strong president. stuart: i would -- in my opinion, i think the base may approve of this. but many people in america will be embarrassed by a president who uses that kind of language. >> stuart, i think the american people appreciate direct communication with them time and again, and i think the reality is in many cases, the vehicle that he has to
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communicate with them are new, and i think that's what helped propel him to the president of the united states. stuart: mark, thank you for being with us. >> thank you for having me. stuart: we are going to open this market down about 300 points. pay attention to the bottom right hand screen there. israel revealing a new air strike on a facility. they're sending a message to iran. stop building nukes or you are next. general jack keane will discuss that later in the show. and president trump furious that someone linked the video that said don't congratulate putin. if they identify the lyric, can he or she be prosecuted? we'll ask the judge that next ah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh.
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feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.
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. stuart: there are worries about trade and some industrial stocks are taking on the chin. exporters like boeing, caterpillar, boeing, 3m. all of them on the downside. those are dow stocks and the
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losses combined there mean at least 40 points shaved off the dow. so what is going to be down 300 at the opening bell? we have a leaked memo, white house memo leaked, it advises the president do not congratulate vladimir putin for winning another term. judge napolitano is here. all right. judge, look, i know this is a complicated issue, but it's important. if they find the lyric, can they prosecute. >> there's actually two leaks here. and one is more complicated than this. this is the leak of a document. is the document classified? does it contain classified material? probably not. the other leak is the leak of the existence and the contents of an international telephone call. stuart: right? >> from washington, d.c. to moscow. that has far more implications because of its movement over inner state lines and international wires. so let's break it down. first, if you work for
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someone, you have the duty of loyalty, what's called the common law duty of loyalty to help the person you work for, not to harm them. stuart: yep. >> second, if you leak because you want the public to know it is classified, you have committed a crime. if what you leak is not classified, you will have probably not committed a crime, but you could certainly be fired for it. suppose the leak came from a verizon worker who wanted to embarrass the president. could a verizon worker do that? well, a verizon worker -- i'm not picking on verizon. they happen to have the contract for the white house. has the duty to maintain federal law privacy if they accidentally or inadvertently come upon a phone conversation that a verizon customer is participating in. stuart: i don't want to get bogged down legalisms. >> online if it's classified can they be fired. can they be prosecuted. otherwise they could be fired. stuart: but this is evidence of the deep state leaking
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information about our president of how he conducts -- >> i was more outraged by the contents of the phone call. but if rh mcmaster and his team sends a memo to the president saying here's the downside of speaking to vladimir putin, that is for the president's eyes only. and whoever did that is trying to undermine -- whoever leaked it is trying to undermine this presidency. you can understand, and you can justify his frustration. stuart: it is extraordinary the degree to which maybe it's obama holdovers. i don't know. >> well, they should know who obama holdovers are now. we're in the 15th month of his presidency. stuart: well, clearly there are some appointees and staff who are opposed to this president. >> yes. stuart: and it's an substantiate to me that it should be so consistently leaked. negative information by -- i'm going to call it deep state. >> suppose the president called up jim madison and said we need another 25,000 troops, and we need them tomorrow in a certain place, and that were leaked.
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that would probably be criminal because that would impair the safety of the troops. stuart: and if it -- a speculative thing. >> right. but i'm just trying to give you examples. stuart: there is huge internal opposition to what the president is doing within his administration. i've never seen anything like it before. >> yes. and someone like jared kushner who is totally 1,000% loyal from the president cut off from reading classified materials. i mean, you almost can't make this up. stuart: that's an expression we try not to use very often on this program, but we're forced to use it. judge, we'll see you again. >> okay. stuart: take a look at the bottom right-hand side of your screen. uber releasing new video from the moment their self-driving car hit and killed a pedestrian. we'll show it to you in full after this
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. stuart: all right. we're going to open sharply lower. down about 300 points. all kinds of worries about a trade war because we are going to be announcing tariffs on chinese products later on this morning. down 300. new video of that fatal self-driving uber crash. you're going to see it right now. the lady on the right-hand side is the operator of the vehicle, although, it was in self-driving mode. on the left-hand side of the
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screen, you're going to see the pedestrian appear out of nowhere. you don't see the moment where she is run down and killed. now, ash, was the lady who we see in the video, was she in control. ashley: no, she was clearly relying on the self-driving software of the vehicle doing 40 miles an hour and as this dash cam video shows, she's looking down. what she's looking at, i don't know. but at the very last minute, she looks up, sees the person crossing in front of the car, you can see the shock on her face. a couple of issues here. was she responsible? initially she's considered a safety driver because she's supposed to jump in immediately something needs to be overwritten. in other words, if the car doesn't appear to be slowing down, and she sees someone crossing the street, hit the brakes. initially the tempe police department said, no, she's not responsible. doesn't appear to be. however, given the result she has on this car may very well be. what failed is the laser that goes out. the radar and the front of the
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vehicle that's supposed to pick up anything coming out like that and immediately hit the brakes. . stuart: but, liz, did the pedestrian come out of nowhere in the dark so quickly. liz: yes, out of the shadow. stuart: when it was driven by a human or driven autonomously had no question to react. liz: that is the question because it does look like she's coming out of the shadows, out of the dark, walking in front. however, there is enough light on her. so set aside the issue that the driver's sitting there. why this didn't uber car pick up this pedestrian crossing in front? why didn't the sensors pick it up? . stuart: because she came out of nowhere on a dark night. i'm not trying to defend anybody. liz: i hear you. ashley: they will look into this. it's under investigation. if that driver is found particle responsible or fully responsible, she could be charged. stuart: and then there would be real trouble for the autonomous driving industry. how will you ever find anybody to be the person behind the wheel? liz: that's right. neil: . stuart: how will you do that? liz: that's right. stuart: interesting. one more time. this is how the market's going to open in about five minutes
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stuart: all right, how will we open this market? 20 seconds for now the stock
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market will go straight down. we close yesterday at 24,600 change. we will be down maybe 250, maybe 300 points when the opening bell has finally run and we start trading, which will begin in three seconds. two, one, boom. if you go thursday morning and i am predict in right now a lot of selling. yeah, i'm right. that wasn't hard-core, believe me. everything on the left-hand side of your screen, 28 of the gal 30 are down all in the red. now it is 29. the last one to open and let the unanimous downside move. at this moment, the dow was down 255 points. every dow stock off 1%. show me the s&p 500. what is the loss they are? it is almost 1% from a very similar to the dow. show me the nasdaq. this may be a significant loss, yesterday spirit it is greater than 1%.
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85 points down. a lot of selling in technology this morning. specifically facebook. it is opened with a $3 loss. $166 per share. it bounced up yesterday coming down today after zuckerberg offered something of an apology. what a day. ashley webster, elizabeth mcdonald, so two of the gently fold -- john layfield and dennis gartman. i redone because of trade fears that the china terrace? >> we are going to have to because of our debt is selling a lot more bonds. stuart: where's the inflation indicator? >> i think that is companies reporting, ford and whirlpool. a lot of companies say inflation is hurting their bottom line. i think the worry is though accelerated. >> they don't understand the economy is growing and yet denying his inflation. i don't think they understand
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it. stuart: what is your take? why is the market down so much? >> let us understand inflationary pressures out there. commodity prices is up to .5% and we are only into the middle of march. at that rate will be up 10% this year. i doubt that will continue, but to doubt inflationary pressures would be illogical. we've already see them raise prices because of the products come in the material prices in comment have been going on. there are inflationary pressures. no question we will see wage increases later this year appeared to doubt inflationary think is illogical. stuart: with our trade war fears, inflation fears in the dallas dump 318-point as we speak. i wanted it to facebook. mark zuckerberg apologizes for the data breach. lives, do you think it was too little too late?
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liz: too little too late. this thing is fighting since the open, now down more than 2%. he also said regulate me. that's a sign of weakness, saying he doesn't map control of 2 billion users. if you have control, russia would have broken in. now trust and credibility. the words out of mark zuckerberg are like corporate flannel to pad around the mistakes they are making a lead an army of developers announce watch what you're doing and manipulate. ashley: basically said that mistake, sorry our fault, does not instill confidence. too little too late. >> the big-name technology stocks because they are all down to some degree in the fallout from what zuckerberg sat in what is happening in facebook. all of them sharply lower. amazon down 21 bucks. microsoft is down $1.55. a-alpha that is down 17 macs, apple down $1.34. john, it seems to me the fallout
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from facebook, if you were to be regulated in other texts will be regulated as well. >> i don't have a stock on that chart except for microsoft. the problem you have right now as is politicians. they've gone after banks. the lower approval rating than they do. they've taken all they can off all they can off the all they cannot do being spirit will not go to the tech companies. that is worrisome. stuart: dennis, i know you are not a big tech investor. when you make of the selloff in the stock is up? >> first of all, a bear market in all stocks everywhere. doesn't matter what you're looking not except for the financials, which release will be in of stability. all stocks come in steel stocks, auto stocks, they are all down and in the bear market, all stocks go down. i think we are going to see lower prices coming forward. i am amused when we call
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facebook -- excuse me, when they caught him is tech stock. it's a retail company that happens to use technology. high tech is better computer. high-tech is better pharmaceuticals. high-tech is better medical equities. amazon is not a tech stock. the retail company. stuart: you just broke some news right there. dennis gartman says it is a bear market and we are now down 314-point. 24,300 is where we are. a couple individuals.. higher sales of the closing retailer in gas. off it goes 16% in a sharply lower market. better sales and profit at conair grow. that's a huge company. you might know that they make pam cooking spray, peter pan peanut butter and a dozen other products we see in the grocery store. it is up in a down market.
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sales fall short at olive garden. the parents or his garden restaurants and it is down 4%. maybe the weather has something to do with restaurant performance recently. take a look at general mills. a very interesting story here is going to raise prices on some meals and snacks to reflect higher ingredient in shipping costs. do you know that they've got a shortage of truck drivers? can you believe that? a fallout from a fully employed economy. >> is a shortage of truck drivers everywhere right now. the trend is going towards vehicles, but were not there yet. >> we had a number this morning. unemployment benefits claims fell to a 45 year low with the labor situation right now. it's going to go down a 3.6%. lowest in 50 years. stuart: they can't find a driver. you've got to have a totally clean record to drive a truck
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these days and you better pass a drug trust. i know something about this. take a look at netflix, please. we've got a survey which says 55% of all homes in america subscribe to at least one streaming service and they're prepared to pay for it. i've seen the future and i think it is streaming. gartman, what do you say? >> i just got netflix six months ago and i still don't know how to turn it on properly. stuart: dennis, you're just like me. i see the future and i say streaming. >> when she got the major-league nfl by itself, you're done. >> streaming stocks are down. i want to move on the ford motor company. they've just lost two executives that they recently recruited from silicon valley. you're going to sell for it? >> this has been a horrible stock for a couple years.
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gm has been so much better but they are 4% yield that i'm holding on more to hope of anything else. it certainly doesn't look good now. stuart: you are the kind of investor who buys stocks like ford and general motors on industrial stocks. do you own forward and would you buy any more of it at $11 a share? >> i don't own forward, but looking at the chart and how far it has come down in the fact that the 4% yield, i will put it on my radar screen. it's for going to go away anytime soon? i doubt that very much. have they had problems? of course. in a 4% yield i% yield i've got to put it on my radar, no question. >> they will read their whole fleet to be hybrid electric. mustangs in the hybrid in the next couple years. juries do i like the sound of 4% yield. the carmaker jaguar land rover. they are going to use the self driving software in its
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vehicles. self driving software. >> they move from the whole crack berry come in the smartphone into secure software. now they are going full-blown into vehicle entertainment system, but now they have expanded that. this is a remarkable story of a turnaround of a company that a font that done and dusty. >> if you have robot cars on the road, they will be able to talk to each other and not crash into each other. that means you have to have open source. open software systems to be able to talk to each other. that means apple needs to change his ways and so does blackberry. that's an important thing. stuart: techie liz macdonald. john, you own it pro professional rugby team in new york. i guess i'm giving you a commercial. >> i'll give you tickets if you want to come out. yes, the new york city's first
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professional reteam having to do with cbs sports and espn and together we have rugby united new york are the first game against boston this saturday night. stuart: that'll be $3500 for the commercial. dennis gartman, thank you for joining us. all good stuff. we appreciate it. check the big award. if i say we've come back a little, it is not much. we were down 320. it is better. i don't know how we're going to close by the way. not good news for the republicans. new numbers from peel show that millennial women are leaving the party in droves. we will have details for you. a former cia or john brennan speculating that president trump is playing nice with the russians because hooton has the dirt on him. he set it on tv. you will hear it after this.
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i made my own way, now it's time to make yours. ♪ everything is working, just like it should ♪ stuart: a significant loss for the dow industrials. down 1% this week, 270 points. there will be maybe a big payday for elon musk. tommy, nicole, how much? >> over $50 billion. it sounds insane. this is one hefty pay package they are putting together as they approve this for elon musk over the next 10 years. tesla's market value needs to skyrocket to 650 billion. it's at about 350 billion now. he makes big wraps for so much line on model three and they certainly don't want him spending time with other companies. stuart: well said.
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if the value of the company goes to. an absolutely extraordinary statement from the former cia chief john brennan. roll tape. >> the russians i think i've had one experience with mr. trump and may have things they could expose. stuart: the former director of the cia thinks that the russians have got some mean on the president of the united states. before that, he was insulting the president quite openly. general jack keane is with us. i find this extraordinary coming from the guy who used to run the cia. >> it's very disappointing. this is as you point out a former director of central intelligence agency, speculating on national television that our president is compromised by the russians in being blackmailed. he's had plenty of opportunity to provide any evidence to that effect before congressional
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investigation committee is testified before them. if he had the evidence to go forth, it would have been a bombshell. we've already had the so-called dossier that is out there and accuses the president of misbehaving. none other than jim call me, director of the fbi has credited that document has been salacious and lacking credibility and he is certainly no friend of the president. this is really not professional behavior on the part of john brennan who i happen to know when i just think it's profoundly wrong in what he's doing here. stuart: i want to move on from this because i'm shocked by what is going on with the cia in the president. israel admits to a strike on a suspected syrian nuclear reactor. is that a warning to iran while the iran nuke deal is coming to an end? is some kind of hard action coming between israel, america, iran? would you think.
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>> absolutely. we're talking about a strike that israel did in 2007 against what was becoming an established nuclear facility inside of syria. it was a covert strike to be sure and one they never admitted to. so why now? why after 10 plus years. what is happening is inside of syria, the iranians through their proxies to hezbollah are getting closer and closer to approaching on israel's sovereignty. they want about rocket and missile bases inside serious so they can fire them from multiple locations into israel. remember, every single year since the islamic state has been established coming the iranians have been remarkably consistent in saying this. our intent is to drive the united states out of the region so we can dominate the region and to complete the domination, we must destroy the state of israel. every single year they say that. what is happening is the drumbeat of war is getting
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closer here between the israelis and the iranian proxies to hezbollah and certainly they know full well and they said it before and iranians are aware of it. israelis would never permit iran to have a nuclear weapon. they would obsolete go after it militarily if that became a reality. this is actually much more about the nearness of war possibly coming between the israelis in lebanon and hezbollah and potentially the iranians themselves. stuart: the saudi crown prince, much-publicized visit to the white house just the other day. was this discussed? is this part of the discussion whatever saudi stand vis-à-vis israel and the united states and iran? >> absolutely. i can tell you for a fact that mohammed sees one major strategic enemy and that is iran.
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iran wants to tackle saudi arabia and the royal family whose then running that country for years and certainly he wants the united states to assist him in counting iran's belin behavior in the region. no doubt about it. that is absolutely right at the top of the list in terms of foreign policy. the mutual business interests we have a saudi arabia. stuart: general jack keane, thank you is always for joining us. check the dow 30. where are we now? we opened 330. now we are down to 50. only one stock among the dow 30, which is on the upside. coca-cola. everybody else 29 down. the republicans 2200 page spending bill. $1.3 trillion in hardly any of that money goes towards building a wall. that is not the deal that gop voters voted for. more "varney" after this.
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members of freedom caucus has sent a letter to the white house and here's what it had. they don't like it. mr. president, we urge you to remember the forgotten men and women of america who place their faith in you to trade business as usual in washington. we urge you to join us and reject this omnibus. joining us now, the author of the book by capitalist combat due out next month, his name is andy pazner. number one, you don't get a capitalist combat with a spending bill like this. number two, this is not what republicans voted for. am i right? >> in many respects you are right. however, as president, your focus becomes certainly on national defense. that's got to be your number one priority. the air force can play its planes. soldiers in the field that are ill-equipped. the president did get what he wanted on defense spending and unfortunately you've got leader
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mcconnell and speaker ryan negotiating this deal. the president is not their negotiating it. yet this is what they thought was the best deal they could get. the president is disappointed that certain things were in the bill. i'm certainly disappointed there were more things in the bill that would advance our agenda. but this was the best they could negotiate. stuart: the white house spokesman on this morning saying this is only for six months. you've got a chance to redo whatever they do next september. i suppose that is a saving grace. but you are disappointed, right? >> you've got money for national defense, which really needed the help the military. you've got money for schools, $2 million to beef up security schools. 4 billion to fight opioid addiction. 21 million on infrastructure, which is not direct to any specific project. and then you go 1.57 for $110 million a border wall and
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fence. it is just disappointed we didn't get more. we are going to continue to fund planned parenthood which is ridiculous, but we did keep the homes amendment which restrict funding for abortion. it was a negotiation. stuart: i want to draw your attention to something the president tweeted first thing this morning. i want your opinion. i'm going to read some of it and leave it on the screen. crazy joe biden is trying to act like a tough guy. actually, he is weak both mentally and physically and yet he threatens me for the second time with physical assault. he doesn't know me but he would go down fast and hard crying all the way, et cetera, et cetera. >> this is the president of the united states saying something like that. a lot of people be embarrassed by it. >> is responding to a former vice president of the united states who could be the presidential candidate of the democratic party and in the next
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election. call them out for a fight they should have had in high school. the whole thing is very immature. the vice president biden often says things that are just absurd >> joe biden baited the president and the president took that bait. >> as president will fight back. one thing we've heard over the past year is if you go after this president, he will go after you. he's been with the mainstream media, political opponents and a stunner with joe biden. this is the man we have in office. this is who he is. i would have beat him up in high school, how ridiculous is that. why are they even talking about this? stuart: i've got to go, thank you for joining us. finally, the house passed the right to drive bill giving terminally ill patients the chance to try experimental unproven drugs. in my opinion, this is very good news and we are up.
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stuart: good news. in my opinion actually unadulterated good news. the right to try legislation has passed the house. this allows terminally-ill patients that try experimental drugs and treatments that had not received fda approval. think about this please. you're on your deathbed. you're terminally ill. you will grasp at any straw. the authorities say no, you may not experiment with unproven drugs. you may not take that risk, even though you are certainly going to die. that is not right, is it? hope at the end of your life is very much your business. you should have absolute free choice, period. well that is what this bill does. it gives you the right to try. who would oppose that? answer? 149 house members said no. why did they do that? well democrat jan schakowsky
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that it would create backdoor to modern snake oil salesman. it strips important safe guards helping patients. i honestly don't understand that strip away safe guards? you're on your deathbed! i don't know about jan schakowsky but right to die bill absolves doctors and hospitals of liability. if you try an experimental drug you can not sue if it doesn't work. oh, the lawyers hate that. and that is why so many democrats oppose right to try. this time they lost. the senate will very likely approve and 38 states have similar laws on the books already. good news. if ever there was a time when you should have the right to try, it is when you are terminally-ill and experimental drug is your last hope. good news indeed.
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second hour of "varney & company" is about to begin. ♪ stuart: the latest reed on mortgage rates. ashley: it has gone up, not by much. 4.45%. what was it last week? 4.44%. never the less well above 4%. interest rates, fed yesterday said two more rate hikes this year, three next year. you would think the 10-year yield we would be following would shoot up. it hasn't. it is 2.82%. so it is an interesting environment right now. i'm not sure the fed really gets it. they are a little bewildered. stuart: on that all day, not got the buzzer even once. buzz me, baby. [buzzer] stuart: thank you. sharp down move for the overall market. facebook getting multiple
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downgrades. it was down four bucks earlier. now it is down about one dollar. all the other major technology companies are sharply lower again this morning. boeing and caterpillar, they're two of the biggest losers on the dow. boeing is down about seven bucks. why? because we're going to i am prose tariffs on chain. they may reciprocate. our exporters like boeing and caterpillar, they take it on the chin. the markets reacting it news on the tariffs. that is one of the reasons why overall market is down. brian brenberg is with us from kings college. wall street doesn't like tariffs. business doesn't like tariffs r we in for a trade war? >> i think we're in for a trade war. the only way you win, get allies, which means we knee germany, japan, to all these
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guys are mad at us dealing with the aluminum and steel tariffs. that is the problem the president has to solve. maybe he can use steel and aluminum tariffs as a partnership against china? i don't see it working. many people in the u.s. are nervous. it will hit farmers, manufacturer, the president's base. >> direct threat from china, the tit-for-tat, they go after our agricultural exports to them which they're numerous. we export a lot of stuff. >> soybeans, hogs, sorghum, all these products. farmers say this will kill us, combined with higher steel prices for equipment we use, i don't know how we survive this. i don't know how the president deals with that politically. stuart: join the club, brian. you don't like tariffs. stay there please. now this. as i said at the top of the hour, the house has passed the right to try bill. it allows terminally-ill
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patients to try experimental drugs. arizona congresswoman martha mcsally joins us now. i'm ecstatic. this is great. i think you do too? >> absolutely this is great day for america. and for all of us who is struggling with illness that can be terminally ill. it is a great day patients to choose for themselves what they need to change their lives. we've been championing this thanks to the goldwater institute and 38 states. we tried to pass this once in the house and democrats stopped it. this is a big day. stuart: one of the reasons some democrats didn't like because lawyers can't sue. if you take an experimental, unproven drugs on your deathbed and it doesn't work, the lawyers can't sue and democrats don't like that. they want the lawyers in there. am i right on this? >> well i don't know what is in their hearts but that is an awful reason for you to be
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stopping terminally ill parities to try whatever the takes what they choose to save their own lives. if that is the purpose voting no you have to ask each and everyone of them. that is awful reason, just another example of them choosing electoral politics or their donor base over what the american people are looking for. every family has been dealing with something awful dealing with cancer or terminal disease. i've been through it myself last year-and-a-half with very close loved one like a father to me. i can't imagine in those days maybe there is something they could try, something they were willing to choose in order to maybe save their list. they would be given opportunity and government telling them no. and democrats saying that is not good for them or trial lawyers or whatever their motive is. stuart: at a roundtable on sanctuary cities, you proposed, maybe it was a joke, build a wall between california and arizona. okay. we heard that. i think you were kind of joking on that one. but look -- >> yeah. stuart: hold on a second. this spending bill, they have
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got this agreement. it doesn't pay for a wall on our southern border. our southern border. gives $1.6 billion, for the next six months, that's it. we're not going to build a wall this year? >> stuart, of course i was being sarcastic about california's dangerous sanctuary cities policies. we in arizona are focused on the so you were border but now we have to look to the west because of policies that are hurting people and allowing criminals being released from prisons back into our communities. but look this spending bill has $1.6 billion for the next six months. this is what the president asked for in the budget last year. this will build more miles after border wall system, 100 miles in the next six months. this is good down payment to get the border wall system started. we need to fight to make sure it is fully funded and everything we need to secure our border and secure our country so it's a good start, stuart. stuart: it is $1.6 billion.
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>> in six months. exactly what the president asked for. we're squeezing more efficiencies to get 100 miles. stuart: some to rebuild sections of the wall or the fence which are not working properly at the moment. the recognize is for fencing an technology. it is not for a concrete wall. it is not. >> actually the technology is on top of that. plus the additional resources for the manning. so 1.6 billion is for a border wall system. we went to the border patrol leadership in the field and different sectors said, what do you need? the president's budget request for this year including 74 miles. we're giving him almost 100 miles for them to address the issues, sector by sector, terrain by terrain what they need in order to start building the border wall system to secure our borders. be optimistic, stuart. it is a good start. we'll keep fighting to make sure we get this complete. stuart: i hear you. martha mcsally, thank you very much for joining us. we appreciate it. thanks very much. you can't ignore facebook. that stock has dominated, look
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it bounced -- when we opened up trading this morning, they were down 164, 165. evidently people are buying the dip and it has come back up to 169. but we have to talk about zuckerberg kind of apologized, admitted mistakes. doesn't sound too excited about testifying in front of congress. roll tape. >> i'm happy to if it is the right thing to do. facebook testifies in congress regularly on a number of topics, some high-profile, some not. we have the person at facebook who will have the most knowledge about what congress is trying to learn. if that is me i'm happy to to. stuart: brian brenberg i think facebook is a monopoly. if it is not a monopoly it should be a utility and regulated as much. >> it is not a monopoly or a utility, but they want to be regulated. it increases barriers to
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competition. mark zuckerberg would love that i think it is a bad idea. the way to go after facebook, create a different platform, something else that gets it right. stuart: you can't have -- >> you're too pessimistic. liz: i'm sorry to cut in to say that is ridiculous to you, brian. stuart: to me. liz: to you either. mark zuckerberg to regulate us. this is all nonsense. he made 41 billion in sales. why? he lets in a hoard of army and apps developers to look into you, manipulate consumers. this is corporate flannel. this is nonsense. stuart: top guy at facebook, to preserve facebook in its current way and profitability. liz: trump factor. people don't trust him. who are you letting in to look at us? that is the issue. >> exactly why he wants to be regulated. because they can navigate regulation. they will turn into a utility. nobody else will get into the market and challenge them. liz: nope. let the market fix it.
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>> exactly. ing arelation will do that. you have to get regulation out and let market do it. liz: all right. stuart: the debate continues. facebook is at 169.45 and it is up sick cents. i will change the subject, get myself out of trouble. look at this, mit unveiling a robotic fish meant to observe marine wildlife without speaking other fish. sophie. 18 inches long. 3 1/2 pound. can dive 60 feet under water. swim 40 minutes at a time. currently swimming in and around fiji. that is pretty cool. liz: that is cool. stuart: let's get serious again. russia accuses of using a nerve agent to attack a former spy on british soil. yet the president congratulates putin when he wins re-election days later. nigel farage is with us.
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he is a brit and with us later this hour snoop. >> the man behind the investigative book called, "clinton cash," called, "secret empires." how politicians use their influence to make family and friends rich. you are watching the second hour of "varney & company." ♪ so i got an offer on the business, and now i'm thinking... i'd like to retire early. oh, that's great sarah. let's talk about this when we meet next week. how did edward jones come to manage a trillion dollars in assets under care? jay. sarah. so i have a few thoughts on that early retirement... by focusing our mind on whatever's on yours.
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stuart: well, well. we were down 330 ten minutes into the day. now we're down 169. it's a comeback of sort. liz: you never know, right? stuart: darden restaurant, parent of olive garden, longhorn steakhouse, maybe the weather has something to do with that. the stock is down nearly 5%. taking it on the chin.
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better sales at lands end. they like it. up 50%. lands end. i remember that name. our next guest wrote the book on your screen, "secret empires," how the american political class heights corruption and enriches family and friends. that sounds like a juicy topic. peter schweizer, who wrote the book. >> great to see you, stuart. stuart: you have some examples. i want to start with president obama. did he in some way help family and friendses? >> barack obama has a best friend a lot of people don't know who he is, never heard his name, marty nesbitt. when barack obama gets reelected his friend marty nesbitt sets up private equity firm. the obama administration goes after university of phoenix, for-profit university, you know what, we don't like the way the company is operating so we'll suspend g.i. bill money from the pentagon going to the school so soldiers can't attend.
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stock price a you can imagine drops from $100 a share down to three. guess who steps in and buys university of phoenix? stuart: mr. nesbitt. >> mr. nesbitt. it's a great business model if your best friend is regulator in chief. once you buys it, obama administration says we ought to let gi money go back to the school. this is pattern repeating over and oaf again involving close friend to president obama. stuart: someone might say this is coincidence. >> that is often times what they say. the problem when you look this happened in the coal industry, barack obama drove down coal valuations. friends bought companies for pennies on the share. happened at pay day lenders. happened at all the entities deemed politically sensitive and bad industries. his friends went in bought companies for pennies on the dollar only to see the valuations rise. stuart: you're such a conspiracy theorist. it is coincidence. hold on peter. sons of joe biden and john
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kerry, you use them as examples how they benefited from their, from their parents? >> that's right. we think of the old corruption. we think of congressman jefferson had 90,000dollars cash in the freezer. you remember him? stuart: i do. >> the old way of the payoffs. the new way, juice in the sons rather than politicians themselves. december of 2013 vice president biden goes to bejing to negotiate with chinese officials. on air force two with him, his son hunter biden. joe biden is criticized on the trip going soft to the chinese on south china sea on trade issues. lo and behold, 10 days later hunter biden's firm scores, one billion, with a. about, private equity deal with the government of the china. keep in mind hunter biden has no background in private equity. he was a lobbiest before his father became vice president. that is the first of three deals that occurred involved hunter biden, a close aide to john kerry named deaf very much archer. in one of those deals also
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involving the son of secretary of state john kerry. major deals which the chinese government, while the fathers are negotiating with that same government. stuart: are you saying that this is business as usual in politics today? it was exactly the sail 50 years ago, 100 years ago? >> this is getting worse. this is part of globalization. i think trade is good, globalization is good but corruption is being globalized. the chinese clearly identified the way you get favor from american policymakers you juice in their family members. we saw this when george w. bush was president. his son, his brother, neil, joined the board of a chinese computer company run by the son of the vice premier of the country. it has gotten worse of the numbers have gotten larger. the amounts of money have gotten larger. this is the way they are going to engage the united states to achieve their political objectives. stuart: fascinating. this is the new book. you're doing well. are you on amazon's list? >> yes, we're number three on
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all of amazon. came out on tuesday. >> not bad at all. peter schweizer, you're doing well, aren't you? >> with help from people like you stuart. stuart: come on. peter schweizer, we appreciate you being with us. all about the book. good stuff. thank you, sir. vice president pence, now he is is headed to georgia tomorrow. headlining a gop fund-raising dinner there. the white house not leaving any state to chance as the midterms get closer. one of the republican candidates for governor of georgia will join us later this hour. ♪
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stuart: guess is a clothing retailer. good sales. look at the stock. nice performance, up 24% at 19 bucks a share. higher sales and higher profit at conagra. this is a conglomerate and a half. they got a boost from frozen foods and fewer discounts they're offering. they make ready whip. pam cooking spray, "peter pan" peanut butter. i have a three-hour show but i have not time to list all the conagra products. that is a fact. losing executives under new owner, whole foods. culture war? liz: dozens of executives and managers leaving. this is culture clash at the company. the honeymoon is over. amazon has hypercompetitive relentless culture. whole foods has distinct organic natural foods, soft nuturing
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culture this is like general patton bossing around tom steyer or another vegan. i'm being facetious. what is the bottom line is this, is about a price war. this is about a price war. they're neck-and-neck in walmart with frozeries. walmart prices are just about one or 2% more on average than amazon's prices. stuart: brenberg wishes to speak. >> bezos doesn't care who you work at whole foods. he cares. liz: remember it was whole paycheck. bezos is saying it is about lower prices and prices. stuart: this is from jack dorsey. as you know is ceo of twitter and square. he has a prediction for bitcoin. he says, it will be the world's, it women be the world's single currency, the world's single currency, what, ten years from now i think it is. brenberg. >> probably owns it. good luke to you.
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silicon valley is famous for these oh wrought predictions. we're seeing it this week with the uber crash and questions about self-driving cars. i don't think that is as close as silicon valley thought it was. i don't think bitcoin is as close as jack dorsey is. 10 years from now, wipe out the dollar? >> i think not. >> you agree with me. stuart: 100%. 100%. ashley: taking a payment out of elon musk's playbook. shoot for the moon. stuart: baby. stuart: president trump going after i guess you could say vice president biden this morning. the president said, biden would go down crying -- i can't believe the lang woman but we are on it. you will hear it. we will be back. ♪
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they all lead here. cme group - how the world advances. ♪ ♪ can't buy me love stuart: 1964 if i'm not mistaken. a fine song then and now. moving quickly along. look at the big board. we are down, rain, 259 points as we speak. that is just 1%. big tech names led by facebook moving lower again now. it is off two bucks at 167. all of the others on the dow side to the tune of 1% or more. wynn down again today. founder steve wynn selling 1/3 of his stake in the company worth about $739 million. that is a big sale. he is taking the overall stock down 2%. boeing and caterpillar, two of the biggest losers among the
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dow 30. why are they such big losers? because there is a threat of a trade war if we impose those tariffs on china, as we will do a couple of hours from now. boeing down six bucks. back to the overall markets, jonathan golub, credit suisse chief equity strategist is with us now. all right, jonathan, i am going to confront you. >> okay. stuart: in my opinion, looking at recent market action i feel this market just wants to go down. >> does it right now feel ill at ease? maybe i think but i do think we're overreacting to this threat of trade war and some other headlines. reality we'll probably not end up in a full-blown trade war. this is the way trump is negotiating these things. and i think that the market probably in a month or two from now will realize, worst case outcomes didn't play out. we're left with a very good economy. stuart: well, look, i think
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you're right to take slightly longer term view. we shouldn't react to day-to-day events. up today, down tomorrow. what is the reason. i take your point but your outlook relies on profits continuing to go up very nicely, the economy continuing to expand very nicely. >> and it will. the expectations are between something like 18 or 19% earnings growth this year, which half of that is from the underlying strong economic trend and half of it is benefit from taxes and also the fact that you have better economics coming from this tax-and-spending bill. stuart: wait a minute, profit this is calendar year, 2018? >> s&p eps. stuart: profits? >> profits. this is wall street consensus among analysts around something like 18 or 19%. stuart: compared to last year? >> compared to last year. stuart: that is huge, massive increase? >> 7% of that is straight and away, take corporate profits, put a lower tax on it, you're
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left with a bigger number. that is the biggest thing. the economy really is in very, very good shape. this year we're expecting economy, we, us, at credit suisse, but also broad view of gdp almost 3%, better than we've seen in quite a while and some of that will spill into above average next year as well. stuart: jonathan, you're making a lot of sense. my confrontation obviously failed but i will try it again. how about the tech stocks? seems to me they just want to go down from their astronomical valuations that we saw in late january. >> i will challenge you on this one. stuart: go ahead. >> so tech has gone up way more than anything else throughout this entire recovery for nine years. the issue though is that we confuse a stock price going up with the stock getting more expensive. the earnings on these companies have been absolutely brilliant, and they have delivered far more earnings than anything else. so there are other sectors that, let's say like consumer staples
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or energy are expensive that the prices have gone up but not driven solely by a better earnings. so i think these things are probably closer to fair value. neil: on your screen right now is facebook at 166, down $2.69. do you think their earnings, their profits are going to go up? >> you know listen, i will not comment on a given stock. i'm not the analyst. stuart: not allowed to, you're right. >> here is the reality. there are news headlines that right now are making you know, making investments uncomfortable around the tech space but when you get beyond that, yes, these companies are expected to deliver fantastic earnings in 2018 and 2019. stuart: i'm not going to give you game, set and match but i think it is 15-to you at this point. jonathan, appreciate it, next case. first of all listen to what joe biden said about president trump this is yesterday. listen. >> they asked me would i like to
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debate this gentleman? i said, no, i said if we were in high school i would take him behind the gym and beat the hell out of him. stuart: that was joe biden yesterday. this is president trump tweeting this morning. crazy joe biden trying to act like a tough guy. actually he is weak mentally and physically. yet he threatens me for the second time with physical assault. he doesn't know me but we go down fast and hard crying all the way. don't threaten people, joe. oy. lisa booth, fox news contributor. >> hi, stuart. [laughter] stuart: this is the president of the united states of america. i'm sorry, but i don't think the president should be saying things like that. i just don't like it. >> well can i point out the fact as well vice president biden was making these comments at an event for sexual assault an gender-based violence. there is sense of irony he is is making physical threats at an event against violence. stuart: president rose to the to
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the bait. >> are you surprised about that? stuart: i'm surprised language used, calling him mentally, i haven't in front of me. are you kidding, lisa? >> president trump is considered a counter puncher. how he ran the election based on no-holds-barred kind of tactics and rhetoric. i find it to be unsurprising. if you don't like it, that is fair. plenty of americans dislike language from the president, but i don't know why you're surprised though. stuart: wait a minute. you don't think they're getting tired of this? >> they could be. we'll see heading into 2020 if they're tired of it or not. stuart: quote, actually, he is weak both mentally and physically. yet he threatens me with physical assault. he doesn't know me but he would go down fast and hard crying all the way. this is the president of the united states. i think that is juvenile language. i'm sorry. i don't mean to come on too strong about this i think just don't like to see that. >> it is juvenile language but the point being is that i don't think it's a surprise.
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president trump says he is counterpuncher. he tends to hit back when he feels he is under attack. vice president biden made a direct threat against the president of physical violence. i think president trump sees it if he is responding in kind. i think amount of attention these comments are getting the american people are not paying as much attention to it, i don't think they care as much about it as media gives it attention which tends it be most topics in the country on most issues, particularly rush share, call it 15 all on this one. serious stuff now. new "pew research poll," shows millenial women who identified as democrats grew from 54% in 2002 to 70% in 2017. millenial women identified as republican shrank from 36 to 23%. not good news for the gop. and for trump. >> no. it is obviously not good news. you look at those numbers. that being said, the women vote
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breaks down in different ways. for instance, president trump did better with white women than hillary clinton did. she thought she would have a hold on that demographic. millenial women don't make up a vast percentage of the electorate. are democrats will be successful driving them out to the polls? we'll see in 2018. younger voters tend to vote for democrats as it is. that is significant jump not good for republicans and it should be concerning. stuart: i think so. >> we're in agreement on that part. we are good. stuart: discerning things -- >> concerning things in the world, stuart. come on. stuart: hold on a second. how about this? the dow industrials down 300 points. i'm a little concerned about that. microsoft, i own some of that stock is down i'm not even going to tell you. how about this on ford, the automaker, losing two executives it recently recruited from silicon valley. lizzie, any reason for that? liz: one was from apple.
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one was from another silicon valley company. they were there just a couple of years. not sure what the reason is. it is just another example of executives leaving ford motor as it is rejiggering its product fleet to be more hybrid electric cars. a hybrid f-150 and mustang. doesn't come at on port tune for ford. stuart: ford is down in the 10-dollar range. blackberry, when i think of blackberry, "crackberry," texting et cetera. ashley: those were the days. stuart: they are teaming up with jaguar. why? ashley: we thought it was gone, dead and buried but they turned themselves into a software company, initially providing software secure to hacking but has gone into the autonomous vehicle area. they started with the infotainment systems. now they have expanded into self-driving cars and they have just signed up land rover. they're already with ford and
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deals with qualcomm and nvidia. this is company, canadian-based, who really turned it around and doing very well in this space. stuart: total turn around. total reinvention. that's a fact. ashley: yes. stuart: good stuff, thank you, ash. coming up, what do we have for you? russian agents attacking one of their former spies on british soil. the president congratulates putin when he wins re-election a few days later. should he have condemned putin? nigel farage. he is a brit. it was on his soil when the attack took place. he will join us shortly. arnold schwarzenegger hoping to reignite the gop in california. rocky chavez, schwarzenegger endorsed him to fill darrell issa's seat when he retires. he is with us next hour. ♪ whoooo.
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testify before congress. roll tape. >> facebook is a wonderful american company but it is no longer a company, stuart. it is a country. and they have enormous power. they do enormous good but we need to talk about whether facebook has been a good steward of our data. we need to talk about how we can preserve the good aspects of facebook while stopping the corrosive effects. mr. zuckerberg needs to come, so do the other ceos. last time we had a hearing, mr. zuckerberg sent his lawyer, i don't know what he paid him but he got his money's worth, because his lawyer didn't say anything. oooooohhh! you stopped! you're gonna leave me back here at year 9? how did this happen? it turned out, a lot of people fell short,
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stuart: well we have gone back down again. now we're off 306 points. we're pretty close to the low of the day, 24,003 is where we are. both britain and america blame russia for the poisoning after former russian spy on british soil. nigel farage is with us, fox news contributor. he is with us now. nigel, welcome to the program. obviously first question, should president trump condemned vladmir putin instead of calling to congratulate him on his election win? >> well let's just be clear. president trump did congratulate putin as did before him the head of the european commission here in brussels, and, angela merkel,
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the chancellor of germany. so if you want to condemn trump you better condemn germany and european union as well. stuart: now the russians are not in good standing in britain at this point. as from what i can tell, the brits are in a uproar about a nerve agent, a deadly nerve agent being used on british soil. am i accurately stating how the brits feel? >> well, look, you know, two people, okay, he was a former russian spy who defected to us and his daughter were poisoned but the fact is, it did actually threaten the lives of many other people. it happened in a public place in a small town in the west of england calls salsbury. the government have told us, the home secretary said this was definitely ordered by kremlin. some say it could be russian mafia. it could be a former colleague.
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we have the international chemical weapons in salisbury who will give us a independent report. but either way people are not happy. stuart: now the brits have expelled 23 russian diplomats. i believe the russians did the same to the brits but i believe prime minister may, she wants other european countries to do the same, expel russian diplomats. she is not getting much cooperation though, is she? >> no, she won't. the elections in italy a couple weeks ago, the two big winners were parties that are sympathetic it having continued liaison with russia. the greek government similarly take that view. as indeed it appears does germany with merkel. so i don't think she is going to get much solidarity on that front. the words here tonight supporting her, i don't seat actions. the real question why 23, what a strange number? stuart: i don't know why it was 23. >> nor do i.
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stuart: what is the standing of president trump with the brits today? >> well the standing of president trump, you know, as i say the fact that he congrat lated putin, you know, merkel did it, junger did it. i don't think it makes much difference. they can see america is doing well economically and that this president keeps his promises and you know, our problem is, successive british governments get elected making promise and don't keep them. trump is a real contrast to that. stuart: prime minister may really needs a bilateral two-way street on a trade deal with america. do you think she will get it? >> yeah. look, i think it is very much in the interests of the uk and the usa to have a trade deal. there are many areas, i worked in financial services for two decades before getting involved in politics and some of the
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regulations, barriers stop us doing business. so look, there is every positive reason for to us talk about a trade deal and i know the trump administration wants to do that. you know the uk is not china. we're not going to undercut you. we can all do more business, create more jobs and more wealth together. stuart: last real small subject here, the world cup starts in russia in june. england is playing in that tournament. am i, i right in saying there is now concern for british fans who go over to russia in this environment? >> yes, there is. it has to be said that we call it football, you call it soccer, but football hooligan system rife in russia. there are genuine concern for safety of british fans. the foreign secretary, are boris johnson yesterday compared the world cup tournament in russia to hitler's olympics in 1936. there are now even questions whether the team should go or not.
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stuart: that is a big deal. nigel farage, welcome back to the show. we'll see you again soon. thank you, nigel. coming up vice president pence heads to georgia tomorrow, going to georgia, to headline a gop fund-raising dinner. the white house is pulling out all the stops to make sure georgia stays as a red state. one of the republican candidates for georgia will join us after this. ♪
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whether you're on medicare now or turning 65 soon, it's a good time to get your ducks in a row. duck: quack! call to request your free decision guide now. because the time to think about tomorrow is today. stuart: i think this is the low of the day. we're down 371 points. that is 1 1/2%. this is a down day thus far. seven gop candidates are in race for governorship of georgia. the white house is getting involved. vice president pence headlines a gop fund-raising dinner in georgia tomorrow. joining us now is one of those seven candidates, clay pippins is with us this morning. clay, are you 100% a trump guy in. >> absolutely. if you look at what president trump's done, i mean who would have thought a couple years ago we would be having 3% growth? last time we had 3% growth the
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bus was playing football for the steelers. we're happy how things are going. stuart: i just want to ask you about, i want your reaction to a tweet that president trump put out this morning. i don't want to catch you off-guard, i'm sure you've seen it but i read it to you. crazy joe biden is trying to act like a tough guy, he is weak mentally and physically, threatens me for the second time with physical assault. he doesn't know me but he would go down fast and hard crying all the way. et cetera, et cetera. sir, do you approve of that kind of language in a tweet from the president of the united states? >> i didn't see that tweet. i mean president trump, vice president biden can do whatever they want to do, but my focus is going to be governor of georgia making sure the agenda we're coming out of washington, d.c., less regulation, lower taxes, fiscal stewardship, pro-growth, that we do that here in georgia. stuart: i don't want to press the point too hard but do you think that the people of georgia
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approve of the president of the united states saying that kind of thing? i mean, do you? >> do i, what i think is, ultimately, what people are going to judge this president by is outcomes and output. if you look at results we're seeing. stuart: there will be a judgment made on this presidency and the way this president conducts himself and that is a political fact. it is a political statement. a lot of the opposition to the president is because of his manner, his demeanor. >> sure. stuart: this is example of a very strong and almost embarrassing demeanor. i will give you the last word on this, but you know, a lot of people are concerned here? >> again, president trump has his own style. that is what it is. i think when people go to the polls this fall, when people go to the follows in 2020, they will look at complete body of work. some things about his style would like to be different. ultimately he will be judged and
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our party will be judged by results and outcomes. if you look at outcomes we're experiencing right now they will be there favorably. stuart: welcome to the show. thank you very much for joining us on the show. i didn't mean to ambush you there. >> that is fine, there will be more "varney" after this. how do you win at business? stay at laquinta. where we're changing with contemporary make-overs. then, use the ultimate power handshake, the upper hander with a double palm grab. who has the upper hand now? start winning today. book now at
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call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ stuart: arnold shah warts negativer, the former republican governor of california, wants to reform the republican party. he says right now the gop is like the titanic, headed for disaster. in california, he says, the party may disappear, but if like-minded people get together, the party can still be saved. move to the center. concentrate on education, the economy and the environment, he says. that, he says, is how you save the party. hold on, arnold. let's take a look more closely at those issues. the environment, schwarzenegger recently announced plans to sue oil companies for murder on the grounds that they knew their fossil fuel would kill people. that is hardly a centrist view
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of the environment. that's buying the hard left climate guys' policies hook, line and sinker. the economy. what's arnold's problem with the gop's tax-cutting agenda which has produced low unemployment, better wages and bonuses for millions and the lowest jobless rate for blacks and hispanics in a long, long time? what does arnold want? tax increases? tax the rich to bring down income inequality? the man talks like charles schumer, if not bernie sanders. education. again, what does arnold want? betsy devos wants school choice. she is an opponent of the teachers unions. is arnold in favor of the current situation in california where education standards have fallen badly and where the state is reeling from the cost of teachers' pensions? what is a california republican education policy? what is it? i'm not sure he knows except,
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perhaps, give the unions the money. so or here again we have california stepping away from the rest of the nation. it seems that arnold is part of that movement which is really a resist trump movement. maybe that's what he's really getting at. but if his policy ideas are just warmed-over democrat proposals, he's not going to help the republican party. the third hour of "varney & company" is about to begin. ♪ ♪ stuart: okay. you just heard my take on arnold in california. fifteen minutes from now we'll get some reaction from california assemblyman rocky chavez. he's running for darrell issa's seat. he is an arnold supporter, so we'll have at it with him. checking the big board, we've come off the lows of the day, but we're still way, way down, about 1.5% almost, we're off 348 as we speak.
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we're down on fears of a trade war. of basically, that's the problem this morning. >> yeah. stuart: joining us now is hal lambert, ceo and founder of point bridge capital. i'm putting this loss down primarily to the trade tariffs which we are going to impose on china in about 90 minutes from now. is that the reason? >> could be. i think that's one of the reasons. i think the issues with tech is the other reason, but i think a trade war's part of it. stuart: okay. what do you say here? you can't be happy, because you run the mega-etf. [laughter] and it's in support of president trump make america great again -- >> correct, yeah. it's an s&p fund, s&p 500-based fund, and, no, i think, i think what president trump's doing is actually the right thing because, look, we've been in a trade war with china for the last decade. we just haven't been firing back. the chinese have been stealing ip, they've been forcing companies to sell them ip, they
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won't open -- they've been promising to open their markets for years to their billion and a half consumers, and they haven't done it. we've got a huge trade deficit is with china, and president trump is drawing a line and saying we can't be a country if we don't have steel production. stuart: fair point, but as soon as the president imposes these tariffs on china, they turn around almost immediately and impose tariffs on our agricultural products to them. that is a trade war. >> i think a couple things will happen. this is all in negotiation, right? the chinese don't know what's going to happen, they're threatening, but they've also thrown out a carrot that said we want to open our markets, but we need to see what they're actually going to say and do and not just v.a. the same words that are -- have the same words that are meaningless. stuart: that's a fair point. inside your etf which companies do you buy into, which stocks do you put in your etf that are
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make america great again stocks? >> we've got big positions in oil and gas, so that's one area. the defense stocks, we've got big positions in defense stocks, industrials. so those companies are, i think, going to continue to do well. there's a lot of fear with companies like boeing. those are long, long-term contracts. i don't think that we're going to get into a situation where boeing has problems because of what we're doing with china. stuart: so, essentially, you invest in companies that are going to do well from the trump growth program. that's basically it. >> companies that are supportive politically with their contributions to trump and republicans. so it's political contributions is what we look at. stuart: okay. >> but we don't have any tech in our portfolio, basically. they're very big democrat firms, and so they're not in there. stuart: so you're feeling pretty good this morning. [laughter] thank you very much for joining us, sir, we appreciate it. thank you. let's focus on tech, facebook in particular. zuckerberg is -- well, he has apologized for the data scandal.
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he says he's not sure facebook should not be regulated. i'm not sure what that means, but i'm going to bring in jim anderson, ceo of social flow. okay, that's a company which does what? >> we're a social marketing platform. most of the big media companies use us to get their contact out to -- stuart: you tell me how to get my message out to everybody else. >> you're meeting just like -- competing just like everybody else. stuart too i most certainly am. do you think we're going to get regulation of the facebooks of this world? >> i think we're headed definitely towards testimony, and people wanted to hear mark zuckerberg last night, they want to see him in front of congress, that's clear, and the other tech companies as well. i think the question is what are we talking about and what are the unintended consequences. tech is especially vulnerable to that. stuart: here's one thing i think we might see, and where it's practical or not, i don't know. if i join a social network, i think i should be allowed to say you may not use my personal
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information for anything. ever. don't touch it. i think i should be allowed to say that. it's my information. now, if we got that kind of regulation, you're in trouble. >> could be. but let me challenge you on that. it's a social network, right? social implies that you want to share information, and social and socialization is almost diametrically opposed to privacy, so why are you joining a social network? stuart: share my posts, but not my social security, my date of birth -- >> i would suggest you not enter your social security number -- [laughter] stuart: fair enough. >> we can all sort of try to tease out what we're individually sensitive to. stuart: supposing regulation took the form of saying, hey, facebook, you may not use that personal information like this or like this or like this, and you may not monetize the information which you have. you can't monetize it like you are doing now. that would kill 'em.
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>> maybe. i mean, this sounds awfully prescriptive, right? to say you can use it like this or that. facebook was predominantly accessed by desktop and laptop computers, now it's cell phones. i heard you earlier talking about blackberry which used to be an e-mail technology, you know, device, and now they're providing software for autonomous vehicles. these companies change on a dime, and i'm not sure regulation is going to keep up with the reality of what these businesses are doing. stuart that's a fair point. would you say if i bought facebook now at 166 a share, if i bought into thed idea, bought into facebook now, i don't have much to worry about? is. >> i wouldn't -- i don't know that you don't have anything to worry about because i think facebook is facing a very real crisis, and it's a pr and political crisis. they've got two billion users, and 1.2 billion log in on any given day. we'll see how that changes. i think there clearly is some
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pent-up anger, but they are a juggernaut as is google, apple, amazon. stuart: oh, yes, they are. thanks for mixing it up with us, jim, we appreciate that. make sure my message gets out there, okay? thank you very much. now this, a survey says more than half of all house ld 40s -- households, it's actually 55% in this country, do subscribe to a streaming service. 55%. not just netflix that's benefiting, the average subscriber pays for three streaming services. that's the average. >> yeah. it generates $2.1 billion a month. stuart: a month in. >> a month. stuart: i didn't know that. >> it's huge. stuart: i better join. those streaming stocks are actually down, i'm calling netflix, amazon, alphabet, i think they are streaming stocks, and they are caught up in the big downdraft. where's bitcoin this morning? it's down at $8559 per coin, off $300.
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where's gold? is it holding above $1300 an ounce? yes, it is, 1334. arnold schwarzenegger taking on the california gop. in a few moments, we'll be joined by rocky chavez, assemblyman from california. he was on the ground with arnold. we'll talk about that. tomorrow marks the eighth anniversary of obamacare being signed into law, eight years in and now the insurers are trying to get a bailout. they lost a ton of money trying to sell it. details coming up. in about 20 minutes, we'll hear from speaker ryan. he'll likely address the spending bill. get ready, the third hour of "varney & company" is only just getting underway. ♪ ♪
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stuart: elon musk's space company, spac, leasing space in los angeles to build rockets that could one day go to mars. they are 350 feet tall, these rockets, bigger than the statue of liberty. musk wants a million people to colonize mars as a backup plan for earth. now, there's a guy who knows how to get a headline. back to my take at the top of the hour. now listen to what arnold schwarzeneggerer said yesterday about the california gop. roll tape. >> and today we are the titanic. [laughter] after it hits the iceberg but before the last bit of the ship submerged. but unlike the titanic, we might be able to save leonardo dicaprio -- [laughter] before he goes under. stuart: okay. so the gop is the titanic in california, and you can save it by going to middle of the road policies. okay, okay, okay. joining us now, california assemblyman rocky chavez.
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he's running for congress, and you were with arnold. >> schwarzeneggerer yesterday when he was making that speech. do you approve of what he's saying? do you want to reform the california gop in the way that he wants to? >> well, thanks, stuart, for letting me be here. what i do want to do is make the california republican party more relevant. right now only 26% of the voters in california even think about being a republican. so, obviously, we have to become relevant within the state. stuart: look, arnold schwarzenegger is launching a lawsuit against oil companies, charging them with murder. do you approve of that? [laughter] >> i'm not a big one for lawsuits and overstatements. but i to approve of -- but i do approve of the idea of republicans being relevant to people. and if you listen to the whole discussion we had there yesterday, one of the largest issues we talked about was education. right now republicans are stepping forward what we call career technical education, cte, because not everybody's going to be a french literature major out
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of berkeley. some people are actually going to go out and get jobs, and how do we set up people to have good paying jobs in different careers. stuart: okay, i got that. now, some places in california are joining the city of los alamitos to opt out of the state's sanctuary city law. where do you stand on that? >> with, i think the -- well, i think the law is so misunderstood. i actually was on the floor when that item came up. there's no way that we can insure the safety of our communities without the support of i.c.e. and statewide issues, because drug runners, as you know, is an international cartel. and no local police department can deal with that. additionally, no community police officer ever wants to take grandma away and put her away just, you know, causing dysfunction in the family. so if you actually read the law, you'll find out that california's probably doing nothing any different than they're doing in texas.
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stuart: well, do you think the republican party, do you think it approves in some way or in any way of sanctuary cities? because you appear to be supporting sanctuary cities, and you want the republican party to support sanctuary cities. >> no, i didn't say -- that's why i think you're getting caught up on details and not listening. there is nothing about a sanctuary city. you have to work with your local police departments. and every city that i have in my district and in the 49th congressional district needs the support of i.c.e. and needs the support of the coast guard to deal with public safety and the cartels. stuart: okay. >> and so nobody's walking away from that. stuart: okay. the mayor of oakland warned people in oakland that i.c.e. was coming to make arrests of all legals. of ill reels. and -- illegals. subsequently, they were not arrested, they were not taken in, and then we have three of them who actually committed crimes, two of whom beat their spouses.
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now, that's -- >> and that's -- i think -- stuart: do you approve of that? >> i actually think the mayor of oakland, what she did was terribly wrong. because these police officers, be it national, state or local, were going about their business that we've asked them to do to uphold the laws. and to put them at risk, their lives at risk, was wrong. the mayor of oakland was wrong, it was not a leadership role, it was more of a political stunt. stuart: rocky, we wish you well. you're trying to take darrell issa's seat, running for congress -- >> well, i'm winning in the polls, so we're doing pretty good. stuart: okay. see you again soon. >> hope to be back, stuart. stuart: yes, sir. republican rick saccone has conceded to democrat conor lamb more than a week after the special election. got it. now this: two american astronauts, one russian cosmonaut are on their way to
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the space station. they blasted off from kazahkstan yesterday, they'll dock at the space station tomorrow afternoon. we thought you might like to know that, they're on their way. a chinese company unveiling the world's most expensive suv. please, try to guess how much one of these things costs, and i'm sure you have no clue, but we will tell you. >> no clue. stuart: and also in about ten minutes, we're going to hear from speaker ryan. the spending bill is going to come up. is this what you republicans voted for? there's a good question -- >> yeah. stuart: -- and i'm sure mr. ryan will be asked that question. we'll be back. ♪ ♪ whoooo.
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when it comes to travel, i sweat the details. late checkout...
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stuart: all right, now we're down 418 points and falling, that's 1.7%. i think this is because in about an hour -- >> yes. stuart: -- we're going to be talking tower riffs on chinese products coming the america. >> yes. stuart: trade war is being talked about -- >> bottom line, if you're listed on the stock exchange, you have exposure to china, you're getting hurt right now. stuart: and just moments ago from "the washington post," trump attorney john dowd set to
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resign amid a shake-up on the legal team for the russia probe. maybe that is upsetting the market as well. >> yeah. and, you know, now the jockeying is going to go on. just moments ago adam shapiro forwarded to us $50 billion worth of goods will be hit with tariffs. that's the chinatariff, thank you. and as reported, 1300 different products. that's what he said in his, what adam is reporting. it was initially thought to be 100, we're talking about high-tech. this is an across the board selloff right now because "the wall street journal" reporting that china could retaliate, right? stuart: oh, they will. "the wall street journal" says they retaliate or are likely to retaliate -- >> to go after trump's base, right? stuart: farm exports. >> that's right. stuart: which would, indeed, go after trump's -- >> precisely right. stuart: we also have congress debating this spending bill. they've got a deal. they're debating it. conservatives are not happy, and most republican voters would say this is not what we voted for.
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>> right. stuart: i don't know whether that's playing into the townside -- >> well, i don't think it helps the mood, for sure, but i think it is tariffs related -- >> i beg your pardon, sorry. let's put up, if we can, the ten-year yield, it's down to 2.38%, so that's a big drop from 2.9%. if it's turning to below 2.4, that's a safe haven play. stuart: okay. one of the trade policy guys in the white house has just said that australia, who else? argentina -- >> brazil. >> south korea. >> the e.u -- stuart: all of them will be exempt from -- >> basically takes out everyone but china. >> it's focused on china. >> that's the biggest concern, that everyone else gets wrapped into this trade war because of tariffs aimed at china. if you make all of those countries exempt, you assume they won't retaliate themselves, and it really comes down to the u.s. and china. stuart: so there you have it. we're down 422 points as we
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speak and falling as we speak, 24,250. very big day for your money, clearly. the president will impose tariffs on china products in about an hour, the house debating that spending bill. the market right at its low of the day. back after this. ♪
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because the time to think about tomorrow is today. stuart: moments from now house speaker l ryan will be speaking. we're expecting him to refer to the spending bill which is now under discussion in the house. the breaking news is, and this is coming to us from a variety of sources and confirmed by fox news, trump's attorney, john dowd, has resigned amid a shake-up of the legal team for the russia probe. that's not going down well on wall street. when that news broke, literally six or seven minutes ago, the dow took a nose dive further south. at one point it was down 420 points. it's come back a bit since then. we're now down 381. but the resignation or the getting rid of john dowd is a significant event, and the market does not like it. okay. who have we got with me now?
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first of all, let's go to judge napolitano on john dowd. you make of it what? >> well, i think it's indicative of the fact that the president has begun to take seriously whatever it is bob mueller is going to press upon him. dowd and ty cobb, his colleague staying there, were in the school of let's go along and get along. let's give bob mueller everything he wants. dan -- don mcgahn who's the white house counsel was saying you start surrendering things to them, you're going to waive all of the president's privileges. the hiring of joe digenova who comes from the don mcgahn school, let's not cooperate with bob mueller, let's fight him and resist him, shows an entirely different, more serious attitude on the part of the president remembering -- recognizing the danger of cooperating with bob mueller's investigation. stuart: so it's a switch in the way the trump team approaches the mueller investigation. >> yes. stuart: take a harder line. >> yes.
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i also think that john dowd's last statement to the press did not go over well well with the president. he issued a statement last week which said, almost verbatim, i pray that bob mueller will close down his shop. not something donald trump has hired him to do or to say. stuart: okay. we've got the dow now down again more than 400 points, 407 as we speak. left-hand side of the screen, that's the podium speaker ryan will be speaking from moments from now. we expect him to talk about the spending bill, but this resignation or the getting -- i don't know what the right word, what is it, resignation or firing, which is it? >> i think he was fired. stuart: pushed out. >> officially, it's a resignation. >> he was furious when joe digenova was hired, because they didn't tell him it was happening. dan henninger is with me this morn, "wall street journal" editorial guy. the headline for his piece today is, yes, shut down mueller.
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that's his opinion piece in "the wall street journal" today. and the first line of your piece mentions john dowd. >> yes. stuart: so what do you make of john dowd out? >> with what i have written, i've said that trump and john dowd are right, that the mueller investigation should be shut down, but not for the right reason. i think the reason it should be shut down is because it is simply wrecking washington's institutions. you saw that last week with the mccabe firing. the place is going completely insane. it is looking like wild west justice. they're looking for a hanging judge to bring down trump, and it's just the fbi, the congress, the media who's been trying to nail trump for well over a year. all of these institutions inside the washington orbit are simply collapsing under the weight of this russian collusion investigation. my argument is, look, if mueller has something big on donald trump, so be it.
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the process will go forward. but if, as trump believes as a lot of us believe, i believe, that the charge is probably going to be de minimis, very minimal, it's not worth it. it's not worth the crisis that this will precipitate, and that's why i think if that's the level mueller is bringing a charge, then it should be shut down. and look, this dowd resignation, trump obviously believes he did not do anything, and that's why he's bringing in joe digenova who thinks it's an fbi plot. so he wants to go to the mattresses against mueller because he says i am innocent, this shouldn't be going on. at the other end, you've got a special prosecutor with a lot of significant legal power who could cause the president a lot of trouble. stuart: and he won't shut it -- mueller himself won't shut down his own investigation. and you don't necessarily -- surely you don't want the president to fire mueller. >> absolutely not. no. stuart: but he's not going to shut it down voluntarily. >> he's not -- but he should bring it to a quick end. if it's, if he's going to bring
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minimal charges. because the process is spinning out of control in washington. we saw that with the mccabe firing, with the sunday talk shows full of talk about impeachment, resignations, massacres. that is what this has come to. stuart: by the way, the dow has just hit another new low as -- today, that is. we're down now 430 points, 24,252. keeps on going down. >> do you know how far it's gone down since the dowd announcement? stuart: i do, as a matter of fact. we were down 360, 370 -- >> yes. >> wow. stuart: -- at about 20 minutes past 11. this news came out about john dowd, and the dow promptly went down 430. so you went down 380 to 430, that's a 50-point drop just like that, and now we're down 442 points -- >> on top of the announcement of the $50 billion of chinese goods that will be taxed. that's a safe haven play, the
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ten-year continues to come down. >> i address what john roberts is just reporting? stuart: go. >> john dowd advised the president not to sit down for an interview with bob mueller. the rest of the team is advising him to do so. that according to our own john roberts is one of the clashes that they had. stuart, if he sits down with bob mueller and his prosecutors and fbi agents, it'll be the most dangerous environment that donald trump has been in in in s entire life. stuart when speaker ryan starts to speak, we'll pick that up. it will be the spending bill and maybe this john dowd resignation. i'm not sure which word to use finish. >> dowd. resignation? it's hard to tell. >> it's a resignation. behind the scenes, probably a push. stuart: pushed out, got that. we'll take speaker ryan when he starts to speak. he may speak something about john dowd, i don't know. but from what you're saying here, dan, you -- look, you want mueller to wrap up this
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investigation fast. he's not going to. so we're going to be leavitt with this madness -- left with this madness around our institutions in washington for the rest of this year. that's what we're looking at. >> that's right. and i think it's very damaging. i mean, the government has to function in some way. we can't be in favor of chaos and anarchy in the government. half the country has withdrawn their credibility from the federal bureau of investigation and possibly not without reason. the fbi needs to be reformed. peep don't trust the media -- people don't trust the media anymore, the congress is completely polarized. democrats think they passed obamacare with no republican vote, i'm happy the tax bill got passed but with no democratic votes. the two sides are like the hatfields and mccoys, like two warring tribes. stuart stuart you know what got to me more than anything else was when the former top guy at the cia -- >> oh, absolutely. stuart: -- personally insulted
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the president and then went out and said he thinks the russians have got something on him. that's how our institutions are redegenerating here. >> not long ago judge william webster or richard helms would have gone to his grave before saying the sort of thing john brennan did, but now it's just another day at the office. >> i fully agree with danny. the entire culture of the relationship of the intelligence community has radically changed. stuart: okay. as we hit a new low -450 on the dow, paul ryan speaks. listen in. >> [audio difficulty] various hearings and testimony, the fundamental question that comes down on this bill is whether we're going to preserve the primacy of the american military in the 2 isst century. -- 21st century. we have of the greatest fighting force in the world, but we have asked them to do so much more with so much less for so long. under the last administration,
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keeping a modern military force was simply not a priority, and the result has been a staggering readiness crisis that has cost us american lives. today we begin to reverse that damage. yes, this bill is critical for many, many other reasons. this bill starts construction on the wall, it turns the gateway decision over to the trump administration, it funds our war on opioids, it invests in infrastructure, it funds school safety and mental health. but what this bill is ultimately about, what we fought for for so long is finally giving our military the tools and the resources it needs to do the job. just last week, i mean, your networks covered this. your networks covered this. [laughter] scotty, you always get me there. just last week, but we lost two naval aviators, f-18 pilots, off of key west because of a
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training accident. we lost seven service members in a helicopter crash in wen iraq. in western iraq. nine people last week alone -- stuart: now, we will get back to speaker ryan. he will be taking questions, and when we get to the question and answer session, we'll get back to him and see what he's got to say. meanwhile, i've got to tell you this market continues to head south. at this moment we're down 450 points, and the immediate catalyst for this selloff was the announcement that john dowd, president trump's attorney, has been pushed out amid a shake-up on the legal team for the russia probe. now hold on, judge napolitano, you -- i want to know from you the significance of this. >> well, i'm getting two stories here from our people. one is john dowd advised the president not to take pot shots at bob mueller, which advice that the president accepted but has begun to reject in the past week. the other is john did not want to hire an attack dog to go toe
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to toe against bob mueller, advice the president rejected in the last week. big picture, the president's people believe something is coming at them, and they need an attack dog to resist it, not somebody who wants to go along and get along. stuart: there's another story, trade tariffs imposed on chinese products. look at hose big dow losers. they are exporters. they could be hit in a trade tit for tat. >> yeah. any exposure to china. stuart: caterpillar down 3%, 3m, jpmorgan, they're all down, and now we're off 479en points. >> yeah. stuart: two catalysts, that is john dowd, trump's attorney pushed out, and sanctioned -- not sanctions, sorry, wrong word. tariffs imposed on chinese products. >> the s&p just erased its gains for 2018, and the dow is trending down to where it was after that mini flash crash in february. it's at february 9th lows.
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remember the dow plunged 1,125 points. but the retaliatory nature of the tariffs is a big deal and the number of products that are going to be hit has risen, according to adam shapiro. stuart: we're talking now -- >> it's way more than 100, it's ten times the initial 100 different product lines. it's ten times that. stuart: so the number of chinese products sold in america which will be hit with tariffs -- >> yep. stuart: -- is over 1,000. we thought it would be 100, it's over 1,000. that's helping push this market down, now we're down 492 points and falling. there's some big losers there. >> yeah. stuart: over 1,000 chinese products hit with tariffs, and now -- not now, but we understand that china will retaliate -- >> absolutely. stuart: -- probably with tariffs on our farm exports to china. >> yep. soybeans, sorghum, live hogs, huge exports of the middle west
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and the farm belt states who are the basis of the trump -- >> yeah, that trump won. stuart: so you've got the -- >> [inaudible] >> stuart: you got the makings of a tit for tat move with the two biggest trading partners in the world, america and china. we're down almost 500 points now, back to 24,100. there you have it, 4 -- 489 points, that's almost a 2% loss. >> 130 points since the announcement of john dowd. it's not a good week for the president. i don't know what's going to happen tomorrow, but i know what's coming sunday night, stormy daniels interview. what do you think we're going to be talking about on monday morning? stuart: but the john dowd pushing out has nothing to do with the stormy daniels, etc., etc. none of that. >> i think there might be a connection. i don't have that hard enough, but we're looking at whether there is a connection, because the president has been silent about these three allegations by these ladies, two of whom just
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got judicial permission to pursue their cases. and in one of them, the court expressly authorized the lawyers for the lady to depose the president of the united states under oath. stuart: so it looks like the president is under significant attack -- >> yes. stuart: -- both from that interview that comes up on sunday night -- >> as tough a guy as he is, he is under siege at the moment, stuart. stuart: under siege, that's the expression -- >> i'm sorry to use that word, but it's so regular, systematic and coming from so many different sources, it's not just bob mueller, it's these three women, it's most significant legal person in whom he confided for months summarily leaving the team. when a new lawyer comes on the team, there's a learning curve. do you know how many documents bob mueller has? over 100,000 pages of documents. joe digenova's got to review all those documents before he can start advising the president. stuart: so he's taking a hard line, you think, a harder
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line -- >> yes. stuart: -- against mueller. >> hasn't happened yet, but that's what's coming. stuart: okay, now, many of our viewers will say, look, we're down 450 points, that's close to a 2% drop, what about my stock? can we show stocks again on the screen, please? first of all, can you go with the big techs? if we can get that screen up, i'd like to see it. >> not doing well. stuart: there's the big losers on the dow, boeing down $11, caterpillar down 5, 3m is down $6, chevron down 2%. that all adds up to -- they're all members of the dow 30. okay. these are the big tech stocks. facebook is now down another -- down $4. it had recovered earlier, now it's back to $165. amazon is down $35. that is over 2%. you're back to 1546 there. microsoft, yes, i own some of it, down $2.26. we're at $90 a share for microsoft.
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alphabet is down $38 at $1,055. apple is down $2, it's dropped below $170. and the dow is moving down again. now we're off 480 points, that is the best part of 2%. again, there's two big stories in play pushing this market down. it's not the spending bill which is being discuss now in the house of representatives. they've got a deal. they will get that deal through. it's not that. that's not hurting the market. it's china trade that's hurting the market, and it's the resignation of john dowd as the president's personal attorney. that's what's happening right now. anything to add, ladies and gentlemen? okay, or you're with us, judge. you're sighing here. >> yeah, i'm sighing because i know what this means for the trump legal team. this is the most important member of the team who viewed every document that was surrendered to bob mueller over the objection of many of trump's other lawyers who didn't want to surrender anything. now the new legal team must put
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a pair of eyes on every one of those documents. the learning curve is expensive and time consuming, and that's what donald trump personally is going to be paying for. stuart: okay. we brought betsy mccaughey onto the program, we invited her to join us, and she is with us. we originally said she's got good news on health care. that's what you've got, isn't it? [laughter] >> good and bad. mixed. stuart: give me the good news. give me some good news. >> well, the good news is that ap increasing number of americans are signing up for medicare advantage plans. we're up to one-third of the market. stuart: what's so big about that? >> well, the reason -- [laughter] stuart: what's so good about that this. >> the reason it's a good deal is that seniors who sign up for these plans get a lot more for their money. they have fewer out of pocket expenses, right? they've got a lot of extra bells and whistles like gym memberships. and it used to be that there was a trade-off, that you gave up a choice of doctors, a choice of hospitals and surrendered to
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hmo-type tactics to limit the cost of care. but now that trade-off, the obama administration more or less eliminated the advantages of fee for service medicare by imposing the same kind of hmo controls on doctors. it's very hard now for seniors in regular medicare to find a doctor willing to take the stingy payments, so you're going to see medicare advantage go up to probably 40% of the market. that's a big deal for the big players, accept teen, united health care, anthem. stuart: that's the good news. okay. we've got a sea of bad news here. >> and i've got some of that too. stuart: i don't want any more of that. [laughter] you are the former lieutenant governor of the great state of new york. >> i am. stuart: what do you make of what's going on here with the president pushing out his personal lawyer, and is we're going to impose tariffs on china trade? >> well, i'm very concerned about mueller because the fact is the muler investigation should have been over -- mueller investigation should have been over. there should have been no independent prosecutor. the fact is mueller is pursuing
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this because if he, if he claims he can't find anything against the president, that's the definition of failure. but we know that independent prosecutors have to find something, and the whole country is being held hostage to this pursuit. stuart: that was dan henninger's point. and, judge, i think you should reiterate it because i don't see any -- there's no way to force robert mueller or to come to a conclusion. >> no. stuart: there's no way to force him. >> the president can't fire him. the president could direct rod rosenstein to fire him. does he obey the president, or does he do what he thinks is right? how that ends, i don't know. but this is not good news for the president at all. stuart: okay. now, we brought you very, very briefly speaker ryan who is at a press conference, he answered questions, but there was not a single question about john dowd. there were questions about the spending bill now being debated in congress. we've had our own statements on that. is this what you voted for? is this spending bill what you
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voted for? the judge pointed out just notes ago there is, there's still money flowing to sanctuary cities. >> yes. stuart: and the only way you coulden end them is by cutting off the money -- >> but there's a big improvement, no bailout for the insurance companies. >> weren't the republicans elected to stop the money going to sanctuary cities or at least to require compliance? weren't the republicans elected to stop federal dollars going to planned parenthood? why don't they -- weren't the republicans elected to balance the budget and not to mortgage your grandchildren's future? stuart: why is senator schumer saying it's a good day for democrats? >> why? >> i don't know. >> that's always a bad sign. [laughter] >> adding to the worry. >> add dog the president's bad legal -- adding to the president's bad legal news is the recent revelation this morning that bob mueller conducted an investigation of jeff sessions to determine whether or not he committed perjury when he was senator sessions before the senate judiciary committee and later as attorney general sessions when they called him back.
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the conclusion was no perjury, but they did not tell the attorney general of the united states that he was the target of an investigation. if you or i were the target of an investigation for perjury, they would have sent us a letter telling us we were the target. stuart: the market does not approve of this. i'm not going to use the word chaos in the administration, that's -- i'm not going to say that, but the president is under siege. >> yes. >> it's gorilla warfare -- get april rah warfare -- guerrilla warfare. it's not the president. stuart and that's what you're seeing on your screens right now writ large. >> yes, we have the tariffs problem, the chaos in the white house, but there's also a big story among the banks which are getting hammered because -- and don't buzz me -- but it's the libor rate which is, basically, the rate the banks charge each other to borrow money overnight. it has hit 2.27%, the highest since november of 2008. what was going on then?
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the financial crisis. so that's a real alarm bell ringing. >> that's a costly increase. stuart: jpmorgan down over 2%, morgan stanley down 2.9 percent, goldman down, group down, wells fargo -- >> we just -- >> this is not the beginning -- >> hang on. [inaudible conversations] >> let's show boeing. boeing has been responsible for 24% of the dow's gain over the last two years. look at boeing. watch the action in boeing. they are basically saying, hey, china, we have a trillion dollars worth of deals with china over the next 20 years or so. boeing is getting hit very hard right now. so is apple, intel, caterpillar and cisco. so what's going on is we also see the high-tech sector getting hit because apple and the high-tech sector, they use a lot of electronic components from china. stuart: leave that on the screen, please. boeing and caterpillar, both of them way down. they are two dow stocks sharply lower. that loss on those two stocks
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accounts for 119 of the dow's loss. okay? so about a quarter of the loss of the dow is concentrated in those two stocks. >> wow. stuart: and now we're down 450 points, close on 2%. >> so the president's going to sign the tariffs live -- >> yes. >> -- at 12:30. will he take questions? will he take questions about being under siege? stuart: can he resist it? >> does he understand the gravity of the incoming fire? >> and it's also the gravity of speaking in the middle of a chaotic, slippery trading day, right? because this is his wheelhouse is talking about how great the market has performed. so, you know, that's going to be key, what the judge just said, the q&a there. stuart: also 16 minutes from now sharp at 12 noon, mick mulvaney, director of the office of management and budget -- >> omb -- stuart: six minutes, i'm sorry, 12 noon he has some explanation of what's behind the spending bill. as we said -- yes, he is, he's a
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very articulate guy, a former member of the freedom caucus. >> in those days he was a fiscal hawk. now it's let's spend it whether we have it or not. [laughter] stuart: he's going to explain what we're doing with this spending bill, $1.3 trillion. we're not going to build the wall, and that's for the next six months, and some of that money will be to repair existing wall facilities. not build a new one, okay? >> they building the tunnel between new jersey and new york? stuart: yes, they are. they're routeing the money -- >> the president said he would veto anything with that tunnel in it no matter what else was in the bill. stuart: okay. well, mark meadows said -- this is a freedom caucus guy -- he says i am troubled that we're going to build a tunnel, but we're not going to build the wall. >> fair enough. stuart: i think that sums up the attitude. there is one more item here in that budget. there is still money going to sanctuary cities -- >> without the strings attached. stuart: -- without the strings attached.
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>> very bad. stuart: how did that happen? >> they must have just given it to, given in to schumer. they caved to schumer. they ran on these things in 2016. stuart: can you explain it? >> right. well, it's obvious that the momentum is on the favor of the democrats because the white house is under siege with these issues that should not be part of governance in america like stormy daniels. stuart: okay. sum it up. we've got the dow industrials on the downside to the tune of 422 points right now. it was almost down 500. if i say we've come back a bit, we haven't come back that much. we're down 420, 24,263. so we're back on the dow almost to where we were at, i guess, the middle of february, right, liz? >> good opportunity to buy stocks. >> yes -- [laughter] within three days of that flash crash in february, right? so february, february 9th lows. that flash crash happened, i think, on february 6th.
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if the president is saying he wants to cut $100 billion out of the china trade deficit, you're seeing that action right now on the tape with the companies that'll feel that immarket of the $100 -- impact of the $100 billion being cut out. it's about trade with china. stuart: am i right in saying, judge, that it was just last saturday that john publicly said the mueller probe should end? >> yes. stuart: and he shouldn't have said that? >> well, he said it. he had a line in there that was controversial. i pray that bob mueller will shut it down. the president wasn't happy with that line because later in the day he said my statements did the not represent my client, they do not represent the white house, they represent my thinking only. that is a public slap in the face if ever there was one for the president's lead counsel to say something he thinks he wants the president out there and then to be forced to withdraw it and say it was just you. if it's just you, we don't care. when you speak for the president, we do care. stuart: once again, you've got to repeat this, you believe that the president is under legal
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siege. >> i do. because i know the work that has to be done by the new legal team. they effectively can't do anything for the president until they examine all 100,000 pages of documents that have been surrendered to bob mueller. and i know they're going to find things that they're going to say why the heck did you give them this, give them that? once you surrender it, it's too late. the other issue is they have to address immediately, like in the next two weeks, will the president sit down for an interview with bob mueller? john dowd said no -- >> and it would be a terrible mistake. >> i've said this before if i can repeat myself, the most dangerous environment that donald j. trump has ever been in in his life would be to sit there in front of those fbi agents and prosecutors and let them ask him anything he wants in an environment where any lie or misstatement he makes could result in a criminal prosecution. stuart: did john dowd favor that? >> no, john dowd opposeed it
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from which we can only conclude that the rest of the team favored it. stuart: so where are we left? i mean, we're trying to work this out. >> these things will come to a head very soon because bob mueller has not only asked for the interview, they've been negotiating subject matters for the interview. >> ultimately, the decision >> i know his character. ashley: he will state his case. >> he will accept their advice or reject it. stuart: i sum this up. fast-breaking news day with a lot of moving parts. number one this market is sharply lower. the dow industrials are down 447 points. best part of 2%. similar losses for s&p and nasdaq. across the board stocks are down, why? issue number one, china trade tariffs. they will be imposed by the president. he will do this live around 12:30 eastern time. that is not sitting well with
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our exporters, boeing and caterpillar because they may be retaliated by the chinese. downside issue for the market number one china, the possibility, the used expression trade war. doesn't go well down on wall street. second around the announcement 11:20 eastern time this morning that john dowd is pushed out as president's personal lawyer. as judge napolitano that leaves the president legally beleaguered. >> yes. stuart: certainly under siege. >> a new team with a huge learning curve. stuart: interview with stormy daniels coming up on "60 minutes" sunday night. any way you slice it that is negative for the administration. >> yes. stuart: i do believe. you're looking at president of the united states facing this on going probe by robert mueller. it is not going to end anytime soon. he has got to decide does he
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speak with mueller one-on-one or with the legal team that will be decided very soon. >> couple weeks. stuart: a new legal team coming into place. they have to read up what is going on here. that is not a quick thing to do. >> even more reading that did not -- stuart: time's up, neil, it is yours sir. neil: man oh, man, we were already down on concerns about the president launching what some are calling a trade war with china then this eclipsed it. news his lead attorney was quitting, leaving, we don't know why john dowd is doing that. he might have been the odd man out. but he is out. a lot of people continue to read into that all sorts of awful things. whether that is the case maybe starts reanalyzing things later. we're in the selling phase. this is the worst performance so far since february 8th.


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