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tv   Varney Company  FOX Business  May 31, 2019 9:00am-12:00pm EDT

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sit at home with a plan about what you mr. will invest in. >> it's your anniversary? >> yeah, today. four years ago today. >> now it's mr. varney and company. >> good morning, everyone. in a nu nutshell this is what is happening. trump threatens mexico with new tariffs. the market sales off big time and interest rates go down more. mr. trump tells mexico take action to stop the flow of migrants or starting june 10th we will slap tariffs on anything you send to america. he sends his foreign minister to washington. they said it's a misuse of presidential tariff authority.
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we will ask what mexico can do to satisfy trump's demand and stop the tariffs. there is china, they are asking if it's worth making a trade deal if new tariffs can come. ping is the moderate stable leader but no moderation in their position. they are drawing up a blacklist of people they don't want to do business with. china marked a slowing of it's economy. new factory orders are down and they are feeling the pain of the train fight. so are investors. there is a sharp sell-off of stocks across the board. it's bad when you talk percentages. the dow off 1%. the nasdaq down 1.13%. this will be the worse since december. interest rates are tumbling.
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it yields 2.17%. treasury is a safe haven. you buy them when things look grim. they are down today. there is another reason to buy you get interest. with german bonds you get no interest. you pay them to keep your money. it will be a big day. we are glad you are with us. varney & company is about to begin. >> the mexican government is incapable or unwilling to assist unites states ius in resolving t the border. 5% on july 1, 15% on august 1, 0% on september 1, and 20% on
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october 1. >> that's what you call a sliding scale. mick is talking about this. we have the former adviser on trade. the president is fighting a trade war on all fronts. this is a dangerous situation. >> it's dangerous for those on the other side. >> not dangerous for us? >> i don't believe guacamole will be a luxury item as a result of the president's action. >> you can't be flip about it. >> you can't. you can't. you can't. >> all types of companies will have their supply chain interrupted if the tariffs are imposed. >> these tariffs, you have to remember they are optional taxes. if you make things in the united states you don't pay a tariff. we are simply going back at the worse case scenario, by worse case i but it in quotes. we are going back to status quo
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ante. what things were like in america in the 1970s and 1980s when things were made here. we can have our supply chains in the united states. that's the most extreme case. businesses are leaving china and going to cambodia and other countries. when they make t-shirts and clothing they are sourcing textiles and cotton grown in the united states. this is a good thing. >> why should china do a deal now if they think if they do a deal and sign it the president could turn around and reimpose tariffs. >> it's not up to china how we run our economy. the international economic powers act which is what the president has used has been on the books since 1962.
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>> it's up to china to get back in the trade talks. >> that's right. if they chose not to make a trade deal they have every right to make that decision. >> you are comfortable with this. the imposition of tariffs all over the place you are comfortable with this? >> absolutely, yes. this is what the united states is suppose to do, lookout for america first. congress won't act to enforce our borders. if we don't have a border we don't have a country. >> before we get too carried away it's possible mexico will suggest something they can do. >> wouldn't that be nice. >> that's not out of the question? >> not at all. >> it would be a difficult case of face. if mexico backs down they lose
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face. if china backs down they lose face. >> mexico has always enforced it's southern border. they don't want an inflection of poor migrant migrants from el s. they shouldn't allow their territory to be used as a transit avenue. >> you are defending hard line trump and what we have right now? >> absolutely. >> thank you for joining us. it's a very important day and glad you are with us. let's take a look at futures. we will be down and sharply so and tariffs are the reason for the decline. dow down 1%. big down day. market watcher jonathan is with us. are we going farther down from here, jonathan? >> yes, we are going farther. in fact, much farther.
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hohonestly, steward. does anyone when when hoover enacted trade tariffs in 1930. that was the great depression. i fear this could be very much the same thing, stuart. look at yesterday, only 30 new 50 two week highs and the tape doesn't high. this is a weak market and dangerous trade approach. >> i'm trying to keep up to speed with fast moving development. jonathan is saying we are going down much farther on the dow and stock market from here because of the tariffs. now, let me talk to you about interest rates. the ten year treasury is 2.17 at the moment.
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that's way down there. explain to me and viewers why the interest rates are so low at the moment. >> because of uncertainty. it's not historically unprecedented. look at japan. they had an aging population, heavy infrastructure spending, massing government debt and near zero interest rates. i fear you are seeing in a worldwide. you are seeing negative interest rates in europe. this is what happens when government control central planning, quantitative easing. there are negative yields throughout europe. it helps gold, though. you see that flight in gold as well. people are seeing real assets. >> i have to sum this up. jonathan said if these tariffs
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are imposed and the tariffs we have will push stock prices farther down and interest rates are down because of the flight to quality and flight to safety of the u.s. treasury. that's it? >> yes, stuart. it could cost a family $850 per year. now we have the mexican tariffs. >> jonathan, it's fortunate we have you on the show this morning. thank you. >> thank you. let's turn around here. uber lost a billion dollars, i think that was in three months. 13 weeks. >> yeah. >> that's what wall street was expecting. you have a cross the board down day today. premarket uber is up 2%. look at the gap. same store sales, worse performance there in three years. the stock is down 14%.
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costco, their sales fell short and warning prices will go up because of the trade war. costs go down 2%. look at william sonoma. profit is up. surly they face higher prices because of tariffs. the stock is up. look were the market opens today. down over 260 points on the dow. close to a 100 point loss for the nasdaq. north korea repeatedly executed a high ranking official for his role in that failed summit with kim jong-un and president trump. what a story. a rare display of bipartisanship on capitol hill ted cruz and alexandria ocasio-cortez came up with a new legislation. a new story shows a thousand
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migrants crossing the border in one large group. they claimed asylum immediately. this is the largest group to be detained at the border. varney & company just getting start. 2,000 fence posts.
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900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic. we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow, the day we'll finally get something done. ( ♪ )
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we have to bring this to you frequently. it's friday morning and you are looking at a sell-off big time. 200 down for the dow and 100 for nasdaq. big lots is making a lot of money. the stock is up 9%. there is a retailer making money and the stock goes up. we have president trump who will slap a 5% tariff on imports from mexico to pressure the government to crackdown onboarder crossings. who better to join us than active border patrol agent brandon judd. let me ask you this, what could
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mexico do in the immediate future to stop president trump and tax action and stop president trump from putting on the tariffs. >> they can expand the migrant protection program. allow us to send people back to mexico that cross the border into the united states illegally. if we send them back to mexico pending their asylum hearings that will immediately appease the white house and say look, mexico is doing what they need to do. it's a simple thing and pay huge dividends. >> at the moment we are not allowed to send my migrant back to mexico. at the moment we can't do that? >> there was a ninth circuit court of appeals case that affirmed the president to do it but we have to have an agreement with mexico. all mexico said is we will take
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them back, we will accept them pending their asylum cases and that will do a great deal to lessen the burden. >> that would be a relatively easy thing to do. it sounds easy to me. >> exactly. >> i have to talk about the huge group 1,000 strong crossed the border as a group. the largest ever i believe. they crossed the border this week. they sought asylum and were released into america. there is nothing we can do about this, is there? >> no, there is not. you said this is the largest group thus far. it's good you said that. every month we are breaking new records. we are apprehending more people than we have ever done before in the history of the border patrol. this is an absolute crisis and president trump making these bold moves like imposing tariffs on mexico this is what he's being forced to do because
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congress is not doing their job. they have to step-up and work for the american public and do their job. if they don't, president trump will be left to do what he needs to do under the authorities he has. >> brandon judd i'm glad you are on the show today. come back soon. >> thank you. totally different subject now. north korea repeatedly executed a top official for his part in the failed second summit between president trump and kim jong-un. what else do we know? >> this is according to a south korea news paper. a man that claimed he had special envoy to the u.s. was executed for being won over by the american imperialist for betraying the supreme leader. four other officials were also executed in the same month and the top aid, the equivalent toe mike pompeo was sentence to hard
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labor because of the breakdown of the second summit in february. none of this has been confirmed. mike pompeo was asked about this. >> this is a report in one south korean news paper. back to the futures market. we will be sharply lower. i look at the screen down 260 on the dow and 100 on the nasdaq. j.p. morgan are pay because they discriminated against new dads. we have the story. i don't know what's going on. i've done all sorts of research, read earnings reports,
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j.p. morgan settles a paternity leave. they were accused of discriminating against men. >> yeah, new dads. actually a father was having his second child and filed to be the primary caregiver and get 16 weeks of paid leave. that didn't happen. the bank said you get what we a lot for fathers and you are not the primary caregiver. there was a lawsuit and they
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changed language in their policy and now up to 5,000 father's are getting $5 million. this will help set precedent on wall street and corporate america about the definition of who takes care of which kid. >> it doesn't matter. it doesn't matter who takes care of the baby. it's the fact that you are a father and you are a mother and both of you are entitled of parental leave. >> at j.p. morgan chase that's correct. >> it will go industrywide and across banking and finance. >> it's a percuteur tract employees. if you have -- at h.p. you get six months paid. >> it's a perk. >> ceos and leadership roles. that's a good example for others
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to follow as well and helped their parenting skills. >> it shows you are willing to take time off to be a caregiver as a male and female. it shows both sexes can be involved in child rearing. >> you think it's a good thing. >> absolutely that both sexes are involved. >> where are we going with this? >> why are you objecting that? >> as a child wouldn't you want both parents there. >> i don't know about that. >> a man decides to take time off to take care of his children. is there still a sigma? >> that's an important question. >> it's nice to have the choice if you want to do it to do it. >> look and scandinavia. >> the most important part is this is a fully employed economy
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and it's approximat a perk. >> at the federal level there is no protection for workers, particularly for women after they medically and physically have a baby. that will change especially on the campaign trail for 2020. >> i can't believe we spent so much time on this. the dow will be down 260 points and we'll be back after this. let me ask you something.
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a little drama. wawai ordered employees to cancel meetings with all u.s. contacts. >> oh, yes, this is a step-up in the trade dispute. they are on the trade blacklist. they said employees stop meeting with any american citizens. that includes employees working at the head quarters. they were sent home two weeks ago. they said cancel meetings and they are sending those that are repatriated americans back to the u.s. >> that's part of what china said they have their own blacklist. >> yes, thousands of american companies. it's vague with the types of
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wording but it could include international firms with japan as well. >> thank you. >> escalation all around the block on this one. in five seconds the market will open and it will be down and sharply so. here we go, we are off and running. 155 points right from the start. make that 190. make that 216. i have a sea of red on the left side of the screen. every dow stock that's opened is down. it's down and in the red. look at the s&p. that got a comparable loss. it's down over 1%. i'm interested in the nasdaq 1.25%. this is another number. 2.17% on the yield. >> a 22 month low. that's extra orderly.
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>> a 20 month low. >> before this moment it was down below 215. >> yes, definitely. >> you have tumbling interest rates and markets. i'll start with you, is this the start of a sharp downturn? >> i believe we have done some serious technical damage. we'll open below. this will liely be watched by a lot of analyst and we have broken the 2800 which is a low. technical damage, fundamental damage. no clear pathway out of china. 2700 in the s&p. >> we could be down maybe 4% maybe 5% from where we are now? >> yes. >> we have broken through the average. the signals are we are going lower from here.
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>> we are down 273 as we speak. i have to talk about interest rates. i'm not sure. look at the ten year treasury yield 2.17%. why are rates so low? >> a flight to safety. they are concerned about the health of the u.s. economy and global economy. they would rather take a yield and make sure they don't lose. >> if you go elsewhere in the world you don't pay for the yield. you give the german government money and they don't give it all back to you. >> we are still a few percentage points from record highs. bonds and yields are treating it like it's a recession with germans trading like we never traded ever. >> negative interest rates in europe and it hasn't stimulated their economy. it has not worked. >> 18 countries in the world have at least part of
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their-year-old curve negative. 18 countries. almost all of them in europe including japan. you think about that and to suzanne's point those economies are in much worse shape. >> we are down 264 points. that's 1%. that's where we thought we were going and we are down 1%. show me uber, please. they lost more than $1 billion in three months. that is what wall street was expecting. suzanne, tell me why you lose a billion in three months and your stock goes up. >> in the earnings call he said the price competition is going down and might have to spend lesson incentives and boost their profit. this is a hope. don't forget uber eats gained 80%. >> you are kidding me? >> uber eats is a $20 billion company by itself. >> you are the stock guy here,
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would you buy at $40.80 per share. >> if you get it around $40 for your long-term portfolio. 89% uber eats growth. this company will get bigger. they are playing in a lot of different areas. you have to buy it. >> wow, i missed it. a week ago i said i would buy it. >> let me put this into context people are looking at five to ten years when the ride hailing market will be hundreds of billions in size. you don't want to look back. the key thing is always go with the market share leader. they have 75% of the market and control the pieing -- pricing going forward. >> uber is up. >> it's a big down day. we are down 1.1% on the dow. that puts us at 24,889.
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look at the price of oil. forty-five dollars per barrel. down 30%. the goal, i think that's going up $1,300. >> it's not the savings it used to be. it's not liquid. no one wants to pay to hold it in these circumstances. >> you are a tough case. >> show suzanne bitcoin. >> there you go. >> up $137. >> that's the new way to diversify. >> is that a safe thing? >> i didn't say safe i said diversification. bitcoin has been again versus the stock market decline. >> do you own any? >> i do. >> you own bitcoin? >> i do. >> okay, sweep the screen clean. dell revenue fell and they are down 8%. same store sales at gap.
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is it the gap or gap i'm not sure. the worse performance in three years and down 3%. look at ulta beauty that stock is down 4%. a lot of downside. how about costco, they said their prices will go you have ge of tariffs. >> i would say that's an excuse for them to raise prices. remember, they are the low cost leader. the prices will go up for the competition too. this will benefit costco. remember they are making all of their money on those membership fees. the tariffs won't effect the membership fees. >> is that true, they make money on frees. >> they have a 90% of renewal rate. i would buy them on every dip. >> we need to remind viewers about who pays for the tariffs.
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we keep saying it's the consumer. it's actually the companies and they can decide how much to pass on. >> it's the importer that pays the fees. >> whether they buy half, a bit, or pass it on. >> this is the advantage of a strong economy. we are seeing record low enemployment. this is a time when retailers can pass it on. we haven't seen much in the way of inflation and this is one reason they have picked this point and time to pursue the initiatives. >> also were there is an 80% probability. 80%. >> that's something we should have mention bed. the fed is taking a fresh look at it's stance. if we take this in global economy. >> we were looking at interest rate hikes and four months later a cut. >> the dow is down 264 points. let me remind you of that. i have the amazon story of the
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day. we used to have one every single day. we have this one for you. they are interested in buying a prepaid cell phone service known as boost mobile. they are backed by t mobile and sprint. where are they going with this? >> it's not for the 7 or 8 million customers they have. they are lower in customers because they are prepaid. they can get that for $3 billion. for $4.5 billion they can get a lot of unused spectrum for data. amazon is in the global data domination business. where are they launching rockets like elon musk because that's the next wave how data will move. we'll go from fiberoptics. >> they want t-mobiles wireless network. they will have access for six
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years. >> it's the wireless network. >> this is amazon going into another area were they will have another big footprint. >> world domination. >> galactic domination. >> let's not get carried away. >> by the way, show the big board again. this is the low of the morning with nine minutes into the trading session and we are down 986 points. almost 300 off. dollar tree will sell alcohol in some stores will that work? >> only if they retitle it dollars shots. seriously, this is deflecting from the main problem which is the merger they had is not working out well. they paid too much or costing too much to intergrade. maybe they should sell cannabis and not alcohol. >> who knows what might happen
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in the future. >> that might work better for them. >> it's 9:40 on a friday morning. both of you, thank you for joining us. we appreciate it. check the market again. we are down 294 points. that's 1.1%. it's a down day across the board. there are more opportunities to invest in the cannabis industry. legal marijuana has arrived and looks like it's here to stay. i'll give you my opinion in the 11:00 hour. zuckerberg has been marred. his security chief is on administrative leave. he's accused of making racist remarks about people including zuckerberg's wife. president trump is taking a hard line with mexico, is this the right way to go? why would china do a deal with us after seeing what's going on with mexico? we'll have more on that story
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we are 14 minutes in and that's the low of the day. we are down 316 points 1.25%. look at all of the auto makers. all of them are down today except genral motors. they day care in more cars from mexico then any other producer. if the tariffs hit g.m. will pay a big price. that's why the stock is down 4%. chrysler is down nearly 5%. auto makers across the board and that's because of the big news of the morning. president trump will put a 5%
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tariff of imports. they will crackdown on the el legals across our border. this is a very hard line trump. is this the right thing to do? >> this is the only thing to do. look at what jason son -- johnson. would he say there was a cryist is at the border. presidencongress is incompetent. >> listen to this, the president just tweeted about the mexico situation. mexico took advantage of the united states of decade. this is because of the immigration laws. they can easily fix this problem. it's time for them to finally do. your comment. >> 80% of mexico's imports.
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we have a very strong economy. if i every solve the problem now is the time. we have a leadership. >> that's the u.s. mexico situation. now the u.s. china situation. why should china do a deal with us when they look at what is happening. if we sign a deal with president trump. he won't turn around later and say, wait a minute. i don't like what's going on. >> there is no problem with immigration. this is a serious problem. it's not that are acting with a long time. we hit the boiling point. they should take solace in the fact that we can reach a good
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deal that will benefit both of us. >> the problem with mexico is different. >> the situation doesn't encourage that. >> i would say that, it's not encouraging. it shouldn't dissuade china from doing a deal and i don't think it will. >> okay, we have the market selling off big time. that's a big story. tariffs is a big story. you wrote a peac piece saying te federal reserve should lower interest rates. >> the problem with the interest rate hikes there were too many too close together. the eight quarters after. i think the economy could incur interest rate increases. when we hit 2% as you continue the increase the interest rate you straighten the dollars with the american economy already strong. the rest of the world's economy
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is weakening. the dollars became stronger and stronger and cut down on exports. the analysis, the john heartily a young economist wrote this together. he did an analysis that said it was 3/10 of a percentage point higher over the last three quarters due to the interest rate increase. it really hurt economic growth. >> the fed will cut rates. >> i hope that i do. >> got it, thank you very much. >> thank you, good to be here. how about the bipartisanship in congress. >> what? >> let's talk about that. [ laughter ] >> on your screens you won't believe it senator ted cruz agreed with a.o.c. >> they both wanted to drain the swamp. strange bed fellows here. they once starred over twitter.
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they wore lowlighted ban lawmakers from becoming lobbyist. i agree with aoc. aoc is reacting between a 60% f lobbying. aoc said you should be banned from every becoming. there should be a wait period. ted cruz said i agree and we should drain the swamp. they shouldn't move on. >> okay, we'll take it. check the dow at 30. we have come back a little bit. we were down 300 points now down 299. this is better than expected so our economy is not doing badly. uber lost a billion dollars in the first three months of the year. can you make a case for buying
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uber stock right now. >> we will ask that question should you buy it now. we'll be back.
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22 minutes in and we are at the low of the day. down 320 points. that's 1.25%. the auto industry trade group released a statement on trump tariffs. they say we are strong supporters of the administrations u.s./mexico agreement because it makes improvements to the master. it relies on duty free to be successful the tariffs will undermined it's positivism pact and impose significant costs on the u.s. auto industries. prices are going up. >> all of the stocks are down. look at genral motors down 4% and so is chrysler. uber lost over a billion dollars in their first quarter of the year. joining us know is ted murphy.
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he's ceo of the social media marketing firm. you are a tech kind of guy. >> the uber stock is up in a furiously down market. >> yes. >> how do you explain that? >> if you work at uber overall the amount of growth -- >> in marketing and driving people to use the platform. there is a lot of complication. >> i think they will go through a tremendous amount of crash but the market expects it. what you are seeing is the adoption of the platform is
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everywhere. a few times per week. >> uber eats, having food delivered to your house makes it easier and i in particular citizens love this. >> the uber eats could be a $20 billion industry. >> yes, just that aspect of uber. >> i wouldn't dream of it. i wouldn't pay the extra fee. last time you used uber eats you sent out for food what food did you buy? >> i had a barbecue at my house. i bought $250 worth of barbecue for my friends and family. >> 20% extra fees. >> are you prepared to pay 15%
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extra? >> yes. my family didn't have to go anywhere. my friends didn't have to go anywhere. it came to my house. >> i'm told if you are a restaurant operation you have to have uber eats. >> it's also taking a big chuck out of their profit as well. >> exactly. >> it's $10 billion worth of food getting delivered. >> thank you so much for being on the show. >> thank you. >> we'll check the big board again. down 300 points. president trump engaged in a high game.
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it won't end until one side of the other feels more pain and can't take it any longer. my take on that coming up next. 2,000 fence posts. 900 acres. 48 bales. all before lunch, . . we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow,
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the day we'll finally get something done. ( ♪ )
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stuart: right, at 10:00 eastern time the we're expecting a big number on consumer sentiment from the university of michigan. i believe the number is just coming at us right now. you got it, ash? ashley: yeah, looks very low. 93.5. that is final reading for may. the initial one was 115.4, a 15-year high. coming in at 93.5. that is university university on consumer sentiment really going a lot lower than we thought. stuart: i read into that, sentiment is less as positive? ashley: wait a minute. stuart: different number. ashley: 100. still well under what we were expecting. again under what we saw the
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preliminary reading for at may 102.4. either way you look at it. stuart: it is a miss. susan: still hovering near the 15 year highs. we're still triple digits in month of may. it is not falling off a cliff. ashley: not as strong as it was, let's put it that way. stuart: the dow not reacting that much in any way, shape or form. we're down 280. i want to bring in market watcher jeff sica for this. we have a pretty big downside move across the board. are we going further south? >> i think we are. keep in mind is doing exactly what he needs to do with mexico and border issues and china. stuart: you approve of this? >> i approve what he is doing. the problem the market is not going to like it. it needs to be done, it is one of the bandaids that needs to be pulled off. what will happen, as you start to see with a consumer sentiment number. the consumer is going to suffer
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because prices are going up. no way to head that off. if that happens, we're going to see another leg down on the market. stuart: okay. 24,800 on the dow at the moment. you want to put a number on it where you think it might go, if there is no solution to the trade with mexico problem and trade with china problem? >> i before we could go down 2,000 points from here. i believe we could head into the 22,000 range. i think there is a possibility of that happening. i think this will be a prolonged process. with the mexico tariffs, they ratchet up, the less, if they, if they act proactively, we could head this off. i don't think they're going to. they ratchet up, that will hurt the consumer. the consumer will always be in anticipation of investors will be in anticipation of a scenario that could evolve over time which could get a lot worse before it gets better. stuart: jeff, you i have given you a hard time in the past
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because you said you were cautious, i have given you a hard time. you got it right. >> that is moments of life. stuart: the market is selling off. jeff, thank you very much. look at that market, please, because it has come become a little bit. not that much. we were down 300 and change. now we're down 268. got it. now this. all right, you slap a tariff, you slap on a tariff to change your trading partner's behavior. that's what the president is trying to do with mexico, stop the flow of migrants to our southern border, or there will be gradually rising tariffs on everything you send to us. that starts june the 10th. on a much larger scale, pretty much the same story with china, stop messing with our technology or the tariffs already in place will be expanded. now tariffs are the president's weapon of choice. simply put, his objective is to inflict more pain on them than on us. let there be no doubt the pain
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for both sides is getting worse. news overnight that china's economy has slowed, a lot. our stock market is selling off, falling sharply. mexico's market and its currency also falling. american farmers are hurting. there is pain all over. that has produced very strong pushback. republican senator grassley says, it is a misuse of presidential tariff authority. he is a republican. retailers warn of rising prices. manufacturers warn about their supply chains. democrat are eager to pounce on anything the president does. now look at it from mr. trump's point of view. what else can he do? there is a crisis on the border. there really is. the democrats will not help. mexico has failed to stop the migrant flow. 2,000 walked across in el paso alone just on memorial day. a huge group of 1000 just came across. the president takes action.
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he calculates that the pain is worth the gain. with china, the fight is ratcheting up, the president calculates that their pain is greater than ours and therefore worth it. oh. it is hard-line trump. high-stakes, enormous risk. it ends when the pain for one side or the other is no longer worth it. the second hour of "varney & company" is about to begin. ceo mexico businessman operates in the united states. good to have you on the show. welcome back. good to see you again. >> thank you, stuart. nice to be here. stuart: seems to me it would be relatively easy for mexico's government to fix this problem. mexico say okay, don't have to let them into america. push them back into mexico. if mexico did that, said that, there would be no tariffs. it is easier for them to get around it, isn't it? >> well, let's start by saying
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could be the tipping point of u.s.-mexico relationship, because the pain will be on both sides. there is a lot of worry here in mexico by these actions. it is not as simple as you mentioned, stuart. stopping this flow of central american people through mexico is a challenge. i think that the mexican government has tried to address it. obviously here you have another populist government as well as in the u.s. mr. lopez obrador is concerned about human rights elements on his action but i think at this moment, you know, a lot of action needs to be done on both places. stuart: gaston, it would not take much to satisfy president trump, that mexico's government is trying to do something. it wouldn't take that much you know. >> well i think that the government is doing -- the border is an issue. there is lot of leaking in that border. obviously there is a lot of
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people already in mexico trying to cross the border. it is more difficult to stop them once they are at the border. i think action has to start at guatemalan border. so i think that, the state, the secretary of state of mexico is going to washington as we speak, hopefully to diffuse these threats and see if we can enter into a dialogue that can actually address it, the problem, not go through this very painful moment that, the whole economy is facing. stuart: but look, these 5% tariffs will not be imposed until june the 10th. is 10 days away, 11 days away. you have got some time here t wouldn't be that big of a deal for mexico to show, take some action to limit the flow across its southern border. i mean this is a, this is solution here and it is not too far out of reach.
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>> i agree with you. we're going to see some action. also we can't for get the fact that we have, central america, something has to be done there. so i think that we're going to see some action in the next few days because otherwise, remember, it is going to impact consumer, $17 billion in tariffs if it goes do 25%. $13 billion affecting mexico if there is retaliation on similar tariffs. i think there will be a lot of pressure for some, some activity in the next few days. only 10 days away. those are precious 10 days. stuart: they are indeed. gaston, thank you very much for being on the show. thank you very much indeed. >> thank you, stuart. bye. stuart: we have dealt with trade, mexico trade, china and we dealt with the market selloff. ii want to deal with that, interest rates way down, 2.1% on the 10-year treasury as we speak. jeff sica, market watcher still with us.
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why are they down so much? >> expectations investors had we would have a solution to the trade issues with china and that would help the markets and interest rates and economy would start to pick up. interest rates would move up in tandem. now, that all hopes are dashed for a short-term solution, interest rates continue to go down. i had said at the beginning of the year don't be surprised if we see 2%. we could see under 2% in the treasury bond. what that means is, that a lot of investors that sought the diversification through bonds are getting yet again starved out of yield. now if they are going, in fact, go into stocks, move stock prices up, that's a good thing but we'll know that we're in trouble when investors do not, when investors continue to go into bonds and abandon the stock market out of concern. that is what the bond market is telling us. we have to pay attention to the bond market. when you listen to the bond market, it will speak of the future of the economy and the
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bond market is telling us that we're seeing a slowdown, not as much in the u.s. but globally we're seeing a legitimate slowdown that needs to be dealt with. stuart: dear viewer, bear with us because i want to talk about something that is very technical, negative yields. i mean there is $11 trillion worth of bonds out there in europe where you give the government the money, they don't give it all back to you. >> not only that, in japan, their junk bonds are yielding 1%. so low credit quality is yielding 1%. stuart: that is a signal that the global economy is really slowing down. >> the global economy is slowing down. currency in jeopardy. that's a problem. stuart: if you want yield you come to america, buy a 10-year treasury you get 2%. >> people get starved out of the bond market, buy stocks. that is not the best way to move the market up. but that is it what has been happening. there is not much more starvation that can happen
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before investors start to look to the fixed income market as an alternative. stuart: jeff, thanks for being here. important you were, we appreciate it. thanks very much indeed. president trump taking a risk with his use of tariffs on mexico and china. i want to know, is this going to hurt him in 2020? that is a pretty good question. the trade war between china and america taking a toll on retailers. costco is included on that. they say prices will go up. costco's stock is down nearly 2%. the fda is holding a hearing today to see whether companies can add cbd to food and beverages, dietary supplements. cbd is the stuff that won't get you high. who better to get into that the ceo of canopy growth. they're the world's largest grower. "varney & company." hour two is getting started. ♪ orlando isn't just the theme park capital of the world,
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stuart: white house press secretary sarah sanders just spoke about the proposed new tariffs on mexico. blake burman at the white house. what did she say, blake? reporter: let me give you a few headlines. first off president trump and mexican president lopez obrador, have not yet spoken at least not as of 10:00 this morning though the press secretary saying the two teams are in contact. one of the big questions what can mexico do to avoid these 5% tariffs levels that we're going to go up potentially, significantly more than that? sanders was asked about that. she said at one point, quote, one of the biggest things they can do to repatriation of thousands of people. she called that, that possibility a quote, very big first step. she also said there needs to be some process on asylum. she was asked as well,
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republicans whether or not they should have been blindsided by this the remember the president has threatened to shut down the southern border but has not threatened at least as far as i can remember to do what he is doing now. sarah sanders making the argument no one should have been bleed sided by this, because the white has been seeing it the president has talked about the need to shore up the southern border for quite some time. i asked her, stuart, why lawmakers on capitol hill should vote for the usmca, which is what the white house is hoping for, considering constituents in their own district which likely pay more for goods from mexico? sanders contented it is good policy, so lawmakers should look at it in that prism. as you know, stuart, there is a whole lot of politics behind all of this, the usmca is just one component. stuart: blake burman there at the white house. thanks very much, blake. i just want to add this, seems as there is a possibility that this dispute with mexico could be resolved relatively quickly.
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this is a possibility. sarah sanders suggested, allow repatriation of people back the to border, the moment they come across the border to america, if that were shifted and changed, that would be a bilge deal. brandon judd, border patrol guy said exactly the same thing on this program earlier. so there is, i'm not saying this is a glimmer of hope. i'm saying there is an idea here, as how this dispute could be resolved. next case. we got a statement from the national association of manufacturers about the mexico tariffs. ashley: they're not happy. they accuse the administration creating a poll tiff cocktail of policy. they say this. these proposed tariffs would have devastating consequences on manufacturers in america and on american consumers. we have taken our concerns to the highest levels of the administration and strongly urge them to consider carefully the impact of this action on working
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families across this country. stuart: they don't like the tariffs, not at all. check the big board. we're still down close to 300 points. better than 1% loss, that is true all across the board. i want to bring in jeff bally bonn,. president taking a hard-line on trade, all across the board. >> not sure this is really as much about trade, the only thing left for him to do now, to deal with serious crisis on southern border. the obama judges taken away in the courts. congress taken away from what is their role. we have generational problem, building for decades, a true crisis. he is trying to solve it. luckily, will cause pain, strengthen our economy vastly. every policy at this level will have some price. democrats are interested in driving the price up. he will try to make it as low as possible but he will not back down. stuart: it is also a negotiation. these tariffs on mexico would
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not be imposed until june the 10th, 11 days away. that gives you not wiggle room, negotiating room. there is time to negotiate here. there is time for the president's hard-line to yield some results if the mexican government does something to alleviate the my grant problem. >> i agree completely. by the way if they don't, they will be paying for the wall, won't they? stuart: i guess they will. one way of looking at it. >> look, the president on a political level could easily demagogue this issue until 2020. the money he is asking for is negligible in the budget, negligible compared to the money these guys spend. they don't care. they want to drive up the pain, drive up the price. the president could have used that. instead he wants to deliver on a major problem of this country, crisis of crime, drugs, gangs and he will deliver. again he is strengthening our economy. there will obviously be pain. all policies cause pain. he figures it is worth it. as you say it is worth it,
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mexico can back down, if they don't, they will be paying for the wall. stuart: strong stuff. jeff thanks for joining us. better check the automakers, all of them are taking it on the chin after president trump threatened new tariffs on mexico. look at that. general motors down 4%. fiat chrysler down 4%. electively 2.7 million vehicles from mexico into the united states. if you put tariffs on them that is serious interruption of business for the automakers. down goes the stocks. china strikes back, threatening to black lis foreign companies in retaliation for the huawei ban. we'll have details next. ♪ fact is, every insurance company hopes you drive safely.
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stuart: we were down 330. now we're down 267. all indicators though down about 1%. how about the s&p? down over 1%, 30 points lower. nasdaq? down more than 1%. 1.25% down. we're down across the board. yield on 10-year treasury just dropped a notch. it is 2.16. there is a hearing underway to discuss regulating cbd. that is the stuff in marijuana that has health benefits but doesn't get you high. hillary vaughn is at the hearing. come on in. is this about putting cbd in food and drinks? reporter: that is part of it,
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stuart. we heard from everyone today. this is a listening session. where the industry thinks where regulation should go and what regulation is needed. we heard from farmers, cbd regulators and even parent. what is not known about ingesting cbd. one scientist says it really isn't known, what effect it could have on and consumer that ingests it like candy but use as cbd lotion on the body. there is concern that there could be acute overdose. farmers say 50% of the world's hemp supply comes from china. they want the opportunity to keep up with that. so they think that producing hemp seed is key to their industry as well. manufacturers and retailers say overregulation by the fda of course would drive people to the black market. that wouldn't help consumers either. stuart? stuart: i believe it is on its way. hillary, thanks very much. we'll have a lot more on this.
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the growing push to legalize thc side of the marijuana business. we have a big guest many coming up next hour. bruce linton, the man on the screen. he runs canopy growth which is the world's largest marijuana grower. he is on the show 11:00 this morning. mr. trump says the mexico tariffs will increase until mexico does something about the flow of illegal migrant through our border. what does mexico need to do if it wants to stop the tariffs? we'll ask a top i.c.e. official, that key question. last year we imported $350 billion worth of stuff from mexico. if those tariffs are imposed, does this mean tax increases or americans and american businesses? good question and we'll find out for you. ♪
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♪ ashley: "here comes the sun." stuart: do you think that is apt on a day that the market sells off. susan: for a friday? stuart: how about this. the night is always darkest before the dawn. here comes the sun. check out the big board. we're down 260 as we speak. 1% lower for the dow. 24,900 is where we are. the yield on the 10-year treasury holding at 216. how about this, new tweet just coming in from president trump. i will read it for you. in order to not pay tariffs, if they start rising, companies
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will leave mexico, which has taken 30% of our auto industry and come back home to the usa. mexico must take back their country from the drug lords and cartels. the tariff is about stopping drugs as well as illegals. reaction to president trump's threatened tariffs is coming in as well. look at this quote from republican senator chuck grassley. trade policy and border security are separate issues. this is a misuse of presidential tariff authority and counter to congressional intent. this tweet from democrat presidential candidate beto o'rourke. just more manufactured chaos and confusion from this president. don't need more tariffs or more reckless policies. we need immigration laws that map our values. we understand a president who understands the border. doug schoen, fox news contributor. doug, is there such a thing in this moment as a democrat response to the threat of
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tariffs from the president on mexico? >> yeah. i think the democratic response is going to be no. it will be in line with what chuck grassley saying, tariffs and border policy are separate. we have the north american trade agreement up for grabs, the china negotiations. this makes those much more difficult. stuart: i would defend the president on the grounds that he wants a change in the asylum laws, he wants something done about the border but the democrats won't let him. >> and what i would say to that given that we're down a few hundred points on market, we've been down for a couple weeks, i think the president is potentially, and i underscore potentially, putting our very strong economy at risk with all these tariffs, whether it be china, mexico or others to come. stuart: well, my point is this. there really is a crisis at the border. i don't think we can deny that. 2,000 came across just in el paso, just on memorial day. we have a video of a group 1000
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people walking across, going straight into america. i don't think the man has any choice. it's a crisis. what else is he going to do? >> negotiate with the democrats a real immigration policy. stuart: they won't do that. >> we were close to it six months, a year ago. stuart: that was before mueller and before all this talk of impeachment. they're not going to sit down and give him a win. >> presidents have to negotiate whether or not they have been investigated or not. richard nixon did. donald trump needs to. stuart: but they won't talk to him. >> they were there, he walked out last week. stuart: are you serious? do you really think that if donald trump invited nancy pelosi and chuck schumer in and said to them, okay, let's talk, you would think they, they would talk? >> talk about a comprehensive. stuart: they will not give him a win. >> immigration policy included a pathway to citizenship for the dreamers, perfectly fence for the 11 1/2 million illegals that are here and wall. i think he would.
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he would talk in a second. i think the democrats would do well to do that. stuart: they would never do that. >> they should do it. i hope they will. stuart: you know they won't. >> no, i don't know they won't. we do need infrastructure. i would tell the president to talk about that. carry on, do your job, and i would tell you those tariffs are extraneous and potentially harmful in my judgment. stuart: well, i'm glad you're on the show. >> i'm glad i'm here too. stuart i agree some of the time but i'm not quite there. i'm still in miami. i'm still a democrat. stuart: you may or may not be back. seriously, thank you very much. >> thank you. stuart: i want to stay on the tariffs. look first of all, look at automakers. they're all down because of the threat of these tariffs, which would be applied to cars coming from mexico into the united states. look at that. gm is down 4%. fiat chrysler down 4%. look at retailers, they're also taking a hit, because, if these tariffs are imposed, prices will go up and retailers with will
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suffer. come on in shah ghailani. frequent guest on the program. if you look at the group of companies and industries who takes the biggest hit? >> clearly the automakers will take the biggest hit, for good reason. because a lot of auto manufacturing coming out of mexico, being imported into the u.s. those tariffs will hurt automakers. it will hurt them globally also. other areas, other segments, sectors will get hurt. i think this, timing of this couldn't be any better. the economy is super strong. the markets have been, we're only 6% off the reese highs. that is because of the trade toss-up with china. this was excellent time to do it. the president needs to invoke policy anyway he can. this is what he was elected on. this is what he campaigned on. he is following through the best way he knows how. he will not get it done through congress. stuart: that's interesting,
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shah. essentially you are taking the president's side, saying his strong stand, his hard-line, is the right thing to do, even though it takes the wind out of the sales of stock market and really takes down automakers and retailers? you're saying the pain if we have to suffer any, is worth it, that is what you're saying shah? >> that is exactly what i'm saying. i'm 100% behind the president in the move. i think it's a brilliant move. investors are fearing 5% escalation to 25% is going to be fairly rapid. that is the timetable, put it as rapid. they're worried this is going to cascade into other issues. i think this is going to force mexico to do what the president wants him to do, what they should have done all along. secure the southern border, not allow caravans into mexico to the united states. stuart: take people from the border, automatically go you there the border into america, take them back into mexico. that has been suggested by sarah
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sanders, white house press spokesperson, and brandon judd, who was on the program earlier. what i'm saying, shah, there is swift solution available here if the mexicans agree. am i right? >> you are right. there is no reason for them not to agree. they should have done that a long-time ago. the president is exerting his power. i think in the correct fashion, and mexico needs to take heed. i think they will. i think this is going to be short-lived. they know they have to do this anyway. the markets, we're not down that much, down 1% on this news. that is not horrific. stuart: very interesting shah, we like your perspective. the market came back a little. we were down 330. now we're down 250. i want to move on to costco, want to talk about that company. they issued a warning because of price increases an tariffs. kristina partsinevelos at the exchange. tell me exactly what costco is saying.
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reporter: you mentioned retailers are down, pass on cost of tariffs and. at the end of the day prices will go up. the big question when is this going to happen? they're still uncertain about that. they're doing several steps to mitigate the situation, increasing shipments in advance of the tariff increases. they're cutting costs with suppliers. outsourcing different locations away from china as well. they have warned they will increase prices. this comes at a time where costco you walk into a store get anything from 400,000-dollar diamond ring, to 16 toilet rolls in a pack. you get everything there. they have strong bargaining power. they have said they will increase prices. they're not the only one. just in the last 24 hours, costco, dollar tree, dollar general have all warned about higher costs for consumers due to these increases in tariffs. back to you, stu. stuart: got it. kristina, thank you very much indeed.
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now this, china is threatening to blacklist a large number of firms some in america, some not in america. is this in retaliation for the huawei blacklist? susan: seems retaliation. a larger relationship with china is close to billion dollars, what huawei is threatening at this point, comes from the ministry of commerce and chinese government, they say they will target and lack lis companies that -- blacklist companies. who will be impacted? qualcomm, google, apple and the likes. these are major companies. intel another chipmaker involved as well. because of the vagueness of the language that the ministry of commerce is using might even catch up some of the japanese firms as well. some of the japanese, toshiba, british chip-makers as well. so there is just a lot of people could be caught up in this just doesn't only apply to u.s.
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firms. stuart: it is a hard-line, isn't it? susan: it is a hard-line. ashley: escalation. that is the word. stuart: that is the right word. a escalation. susan: i would say posturing as well. we're trying to negotiate. maybe it's a negotiating tactic. stuart: fair point too. the dow is down 260 points. it has come back a little bit. it is still a down day. coming up, i tell you we have a top i.c.e. official on the show. she says the migrant crisis doesn't just start at the border. she is calling for backup as thousands of migrants are released into the u.s. population. coming up next, bruce linton, the ceo of canopy growth, the world's largest cannabis grower. that is in the 11:00 hour. all coming your way shortly. ♪ -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95.
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stuart: here is the trump tweet. i will read it for you. 90% of the drugs coming into the united states come from mexico and our southern border. 80,000 people died last year. one million people ruined. this has gone on for many years, nothing has been done about it. we have a 100 billion-dollar trade deficit with mexico. it is time. the dow industrials on the downside this morning because of the threat of tariffs on mexican products. we're down over 1%, a 275-point loss. the price of oil is way, way down because of threats to the global economy. we're back to $55 a barrel as we speak. more on tariffs. president trump has announced possible tariffs on goods coming in here from mexico. our next guest says, that is a tax on all of us. kristin tate is with us. she is columnist with "the hill." you would think we all, if it's a tax, we all end up paying this, do we? >> in some form or another, yes,
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stuart. i have a few concerns about the tariffs. the first is exactly that. that essentially would be a tax hike on american families and businesss who purchase goods from mexico. last year we imported $350 billion in goods from mexico. so on that basis, this will be an 87 billion-dollar tax. my other primary concern here is that these announcements of tariffs could threaten the passage of the usmca deal which would have been great for the u.s. economy. now having said all of that, while tariffs are a very imperfect solution, i also recognize they might be one of the few solutions left to trump. the border crisis is reaching incredible new highs. just this week as i'm sure you know, over 1000 migrants were apprehended in a single group near el paso. that is a new record. congress refuses to act on this issue you. now trump needs to act alone. stuart: i don't think we have to think these tariffs are set in
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concrete and definitely coming down the pike at us. i don't think that is the case at all. there is a 11-day period here where we could negotiate with mexico. indeed the foreign minister is coming to washington, d.c. there is one solution put out there, and that is instead of migrants coming automatically across the border into america, send them back to keep them in mexico. don't let them through. that is a solution that would fix the problem, isn't it? >> great solution. as you mentioned, i'm hoping that these threats of tariffs are just a short-term political tactic. mexico has been very unhelpful with our border crisis. they have actually made it worse in a lot of cases, making it easier for central american migrants making the trek north to our border. i would prefer if the trump administration would look at other options like removing incentives for them to come here in the first place. that could mean cracking down on u.s. employers who hire illegal
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immigrants. could mean removing some taxpayer benefits illegal immigrant can take advantage of. reforming our asylum laws. we know trump can't do these things if he is not getting help in congress. the threats of tariffs might be one of a few things he can actually do alone. stuart: i think you're right. kristin tate, thanks for joining us on an important day. >> thank you, stuart. stuart: the market comes down a bit. we were down 250 a few minutes ago. now we're down about 300 points. 24,800 is where we are. won't believe this, alexandria ocasio-cortez and senator ted cruz find common ground, extraordinary. showing a rare sign of bipartisanship. coming up we'll tell you what policy they're teaming up on. ♪ patients that i see that complain about dry mouth,
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stuart: down about 250. down about 1%. that is pretty much across the board on the market today. >> big news of the day is president trump threatened to slap tariffs on mexico if they don't do more to stop the flood of migrants coming into our
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country. natalie asher is with us, i.c.e. executive associate director of enforcement. welcome to the program, good to have you with us. >> thanks so much for having me. stuart: we want to fix this problem. we don't want mexico, we don't want to impose these tariffs on mexico. we want to fix. what could mexico do to satisfy president trump? >> so absolutely to your point, we do need the assistance now more than ever. echoing what acting secretary mcaleenan did cover last evening when asked the same question, really three items need to happen right now. first and foremost the operational security measures mexico must take to their southern border. clearly they know these individuals who are coming from the northern triangle are merely traversing their country. they have no interest in staying in mexico but continue northward to the united states. that needs to stop. secondly we need the assistance of mexican law enforcement to help us in combating the transnational organizations who are clearly behind moving these
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individuals through their country and to us. there is absolutely no way that this is not organized. we've been talking all through the morning of this most recent group of 1000 plus coming across. that is not a coincidence. that is organized. clearly with the organizations who play to our vulnerabilities. lastly we need their assistance in getting the whole policy of asylum, getting that straightened out as far as working with them, allowing individuals who seek asylum lawfully to stay safe in their country in mexico. stuart: yes. >> we need all of those items to come into play. stuart: it was that third item which sarah sanders talked about this morning and also brandon judd about this morning, they talked about this morning. asylum-seekers pushed back into mexico as opposed to being allowed automatically into the united states. that would seem to be a relatively easy fix for the situation. am i misguided here here? it seems easy? >> you're right. again while it is the politics
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and clearly above my lanes as an operator, i can tell you that these negotiations are critical to occur. if they do not, with each day passing we have raised the flag along with our colleagues and border patrol. 6, 8, 10 months ago that the problem would get worse. my agency alone, removal operations, since december 21st, 2015 we have release just under 200,000 family members at the interior. this is border humanitarian crisis. it becomes something of national security, public safety, and then the problem then moves into the interior. we cannot sustain this current pace. stuart: you're overwhelmed. you're in charge of, you're part of the overall enforcement of immigration law. you're overwhelmed. we have a group of one how just walked across the border, el paso area, just, on the
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screen right now. 1000 people just walked in. they are now distributed all across america i think. you're overwelmed. what do you need to cope with this crisis? >> it is unbelievable. just when you think you have seen it all, stuart, it is this, right? 1000 plus in one day. frankly i don't know how my colleagues in cbp are able to face this each day. it is remarkable what they're trying to do to strengthen the border. we in i.c.e., we absorb the problem to your point. we do not have the resources as it relates to deportation officers. we have only 6,000 deportation officers, which in non-detained docket alone, all the individuals you see coming into our country, they go on a non-detained docket. that is at 800,000 and growing with the immigration court. those are open cases to be ajudicated. they will talk about single adults in our custody.
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we have upwards of 51,000 single adults in our custody. we don't have the resources to work that. we're not funded at that level. the numbers will only continue to grow north. stuart: don't tell me it is not a crisis. it is a crisis. >> it's a crisis. stuart: natalie asher, thank you very much indeed, laying it out there, telling us the precise situation. we needed that value that. >> sure thing, thank you. stuart: big news of the day. president trump threatening to slap tariffs on mexico if they don't do more to stop the flow of illegal migrants you just heard about. coming up we're talking to a woman who negotiated the original nafta deal, what does she think of today's developments. like it or not, legal marijuana it has arrived. looks like in my opinion, it is here to stay. you will get my take on that. my editorial. you will get reaction from the ceo of the world's biggest marijuana grower. it is all on this show in the next hour.
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stuart: it is precisely 11:00 here in new york, and let's check what's going on in your money. right now the market is selling off, across-the-board, we've got a 1% loss for stock prices, that translates to a minus 2.67 for the dow we're at 24, 900. can you show me interest rates please i need to see that. yeah, there you go look at that. 2.17% is the yield on the 10 year treasury that's not at historic low but it's way, way down from where it was in recent days. that implies that you'll get a much lower interest rate on your mortgage if you take a 30-year fixed. i surveillances we'll get down well below 4%, so if there's any
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-- ashley: it's already at 3-point whatever it was. stuart: you ask why are we see ing rates fall so much so the answer is it's a flight to safety. all around the world we got the jitters what do you do? go to the united states treasury securities which are dead safe and they always pay you and that's what you have. ashley: prices go up and yield goes down. stuart: 2.17% and coming up we'll talk about trade, and tariffs, with charles payne and also, with carla hill. she's the lady who negotiated the original nafta deal. don't miss that. but first, this. something different. these days, when you're walking around the streets of new york city, you can tell that marijuana has arrived. you smell it frequently. in fact, there's hardly a day goes by that i don't pick-up that distinctive odor when i head out to midtown, manhattan at the end of the day but that is the way it is now. truth is, legal weed is here and
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it sure looks like it's here to stay. most states allow some form of medical marijuana. most states have decriminalized the possession of small amounts and 10 states plus washington d.c. have fully legalized its recreational use. pot shops, they're all over the place, and they're doing good business. that is the key to marijuana's future growth. consumers are buying it. local governments are taking in strong tax revenue . just follow the money. the cannabis industry is well positioned to expand rapidly in the near future. it has a back door entry point. cbd, and that's the pot product that doesn't get you high, but which is said to be effective against mild pain and inflammation. cbd is legal in all 50 states so the industry has its cbd infrastructure in place and they have done the ground work for the thc side of the business that's the side that gets you high. the anti-pot is now fighting what is really a rear guard
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action trying to limit the legalization trend. they are in for an up hill struggle and which local government is going to reject new tax revenue? which politician will again say a majority of voters who in most states now favor legalization? bottom line? like it or not, legal marijuana has arrived and odds are, wherever you are, you'll be smelling it, in the streets, if you're not already. special guests to react to this, bruce linton, ceo of canopy growth which i'm told is the largest legal marijuana grower on the planet. that's you. >> that is true. stuart: okay tell me about these hearings today in washington. what is it about cbd? do you want regulation? >> yes, we more than anybody want regulation because what happens in the absence of regulation is consumers don't know what they're getting or not getting. is this with chemicals? is the doseage as described?
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and so when there's no regulation, that's when the sketchy players prosper and we want regulation. stuart: but is there any actual proof that cbd is an anti- inflammatory or a mild pain-reliever? is there proof of this? >> well there's a pharmaceutical company which took the molecule and put it through trials to show that it has if efficacy if you want to call it seizures and so that's a specific study and it got approved to be a product in the u.s. but what i think you'll find is theres so much anecdotal what we were doing with canopy is actually running the trials now so does this diminish anxiety in a canine is a good question to answer and then you need to know what dose do you need to give, how frequently do you need to give it so those are the sorts of things because it's federally legal in canada, in germany, we can run those trials stuart: you can do that because it's federal and legal in there? >> yes so you can actually pull all of the ingredients together and we're running sleep trials so if you're in canada and you have what's called primary
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insomnia, you can't stay asleep, we're running a sleep trial where we're putting people in a double-blind fda study to see which combinations of ingredients cause you to stay asleep so you can be sharper at work the next day. that kind of stuff will move the needle on why you want it regulated because when you ignore it do you know what really likes that? criminals. that is the best practice. stuart: i just want to put this up on the screen. we've got a map. 34 states have pot available for sale in one form or another. ten of those states i think that's plus d.c., fully legal, recreationally. you think the tide is turning sharply towards mass legalization in america? >> well, yes to an extent. so we did a deal with a company called acreage which operates in 20 states and the deal we did is when it becomes federally permissible because i'm not sure that the federal government is going to say it is a recreational platform. i can see them saying on a medical basis we're going to regulate it and put it through
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the fda trials and that may be less unappealing to people but if you're a federal politician your goal is to remain a federal politician so if you say to everybody it's a party that won't go as well as saying states rights let each state govern it so that is very soon. stuart: is the thc content of the marijuana that you're growing today much much higher than the thc content of marijuana in the 70s? >> so we grow a whole variety. stuart: you know what i'm getting at. critics say it's much much stronger today. >> well we even go so far to say guys why is anybody smoking it? it's not a great idea and what they do when they smoke it is just activating it. there's so many better ways in which you can activate it and regulate it down but we do have some which is extremely strong compared to that time and then it goes stepping all the way down and so what happens is if you buy it in the illicit markets some types it's extreme
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ly strong and sometimes the supply chain causes it to be adult rated with other activations, could be fentanyl and so these sorts of things, if you don't regulate it how strong it is a big question. stuart: you're going mainstream aren't you doing a keynote with martha stuart? >> yeah there's a big congress on the east coast of canada in a couple of weeks, and what's happening is people want to understand who can they trust, what brands are coming through and what's it going to do for them and so martha's quite interested in how can we help animals and how can we use cbd to help animals? stuart: just a few short years ago -- >> you wouldn't have me on your show i'm sure. it's a big change. stuart: how many tons a year? >> well if you think about that it's a little more than 500,000 kilograms. so that's kind of the potential of our platform. stuart: how many tons is that? >> well so that's just drop a zero. you get to 50,000 tons. stuart: 50,000 tons? >> yeah. stuart: all yours?
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>> well that's our potential yeah. stuart: okay! glad we met you. thanks so much. >> thank you. stuart: now i want to get back to the markets and what's going on today, big sell-off down 250. charles payne is with us, host of "making money" on this network. this is all about mexican tariff s isn't it? charles: potential mexican tariffs. stuart: that's what it's all about? charles: and a little bit of china weakness again that got lost in the sauce more manufacturing data showing their economy pulling back dramatically and came in worse than anyone expected last night overshadowed of course by this news. stuart: call me crazy but it seems to me there is a short-term reasonable fix here. that is mexico takes back the people who have arrived at our border. but the asylum seekers. you could keep them in mexico and that would solve the problem charles: i think they've
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offered things to induce folks to do that. i think if you have gone all the way from guatemala or el salvador to our border, i think president trump wants them to fortify their own southern borders and make it much more difficult, because what we saw was, you know, we saw policemen standing there, mexican and border patrol but folks just walking right past them. they didn't really put any real elbow grease into that. stuart: is this a break in the market? if we don't get a deal with china and we impose tariffs on mexico and there's a problem with the u.s. mca, all of that bad stuff is just a break to the downside? charles: this is as excited as i've been in a month about this market. i'm ready to buy big time in my own personal account. stuart: really? charles: i'm not today but probably next week i've got a list of stocks i'll keep refining them but listen we have had tremendous economic data that we barely have been able to talk about. today, personal income, surging $92 billion, so personal
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spending way beyond what wall street expected them, here is the beauty about the american consumer. savings rates still went up so we've got a disciplined strong household consumers, with a tremendous amount of run rate to buy even more and i think they will, so yesterday, gdp number, inflation, you talk about tariff s adding to inflation. it's monday, and it's in the weeds, but yesterday the door was open for the fed to come in and cut rates, so listen, the bottom line is, these headwinds being built in worse case scenarios being built into this market creating amazing opportunities. stuart: charles payne ready to buy. charles: i'm salivating, man! stuart: here is what's coming up for you we'll also talk to steve hilton a fan of hard line trump. what's he think of the president 's hard line, with mexico? he's on the show and i'll ask him. we're talking to the woman who negotiated the original nafta deal. what does she think of today's developments?
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stay with us this is the third hour of "varney & company."
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stuart: the mexican embassy director of trade says mr. trump 's plan tariffs on mexico violate nafta, so let's bring in carla hills. she was the chief u.s. negotiator of the original nafta back in the 90s under bush 41. if the president does go ahead and impose his tariffs on mexico is that the end of the u.s. mca, the new nafta? >> it certainly presents a problem. i'm worried that he has identified a problem with people fleeing horrific crime, violence , lack of economic opportunity, but putting tariffs
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on mexico is not going to fix the problem. we should be working with mexico to try to deal with these root causes. stuart: but i'm sure we have been working with mexico full tilt for some time and we've still got a massive number of people just pouring across our border. i mean the president has to do something doesn't he? >> he certainly has to do something but putting tariffs on mexico are going to have a lot of downsides, including putting at risk his new u.s. mca, alienating one of our largest export destinations. you know, mechanism's our second largest export destination, and alienating a neighbor, where we want to have good relationships. the fact of the matter is if you look back at history at 2015 congress created a fund to try to help those in central
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america, and the current budget from president trump reduces the spending that can be used for central america and increases what money it wants to build a wall. we really need to deal with the root causes. stuart: do you flat out oppose any even mention of tariffs on mexico? >> i would not put tariffs on mexico. i don't think tariffs are a good tool of trade. i think that we have made progress in dealing with mexico on a range of issues, economic and strategic, and as a result of their becoming a much more compatible neighbor, we even share intelligence and they've made a big difference in how we've dealt with international crime, our exports to them have gone up fivefold. their investment to the united states has gone up. let's build on the positive
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relationship that our economic bonds have created. lets not slap them in the face when we try to deal with the problem and tariffs, tell me, why would a 5% tariff on everything that mexico sends into the united states keep those who are fleeing violence, lack of food, and crime, from fleeing? stuart: carla hills look thank you very much for being on the show today, and we value your opinion on this, on a very important day. carla hills, thanks for joining us and i do hope we can see you again very soon. thank you very much. >> thank you. stuart: now i want to bring in steve hilton host of the next revolution on the fox news channel. now steve, this terror threat is classic hard line trump. carla hill did not approve of it , do you? >> yes and he is the reason why , stuart i'm not sitting here saying that this move is definitely going to deliver
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success but what it is is unconventional. that's exactly why president trump was elected to be unconventional and i would put it in the category of creating of entrepreneurial policymaking and frankly you've been saying in your conversation just now highlighting we've got a crisis at the border. the normal mechanisms for trying to resolve that which is first of all negotiating with mexico, and secondly, our own congress doing something about it and that hasn't worked. everyone agrees that there's a crisis, so let's try this. there's no guarantee that it'll work, but it's a bold move that i think is a great example of why we needed fresh thinking in the white house and why people elected donald trump to try and solve problems that have been festerring for decades with the old conventional approach. stuart: now mexico's foreign minister is on his way or has arrived to washington d.c., i believe the president of mexico is going to hold a news
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conference a bit later on today. it wouldn't seem to me to be that difficult to make some progress towards mexico doing something about this invasion of our southern border. it doesn't seem to me to be an insurmountable problem, steve. >> that's exactly right and in fact if you go back six or seven months ago in fact you had very very warm noises around corporation on immigration, coming from mexico. i vivdly recall an interview with the mexican ambassador here in america where he was saying we're stepping up the policing of our southern border. we're doing what we can, we're working very closely with the u.s. authorities, and it's as if there was good work going on there and i think we just need to get back to that, because since then the problem has got much much worse, and so i agree with you, i think this should be quite straightforward to resolve and what president trump is doing with this move is giving mexico a real incentive to go back to that level of
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corporation and increase it. stuart: it's a good debate and i'm glad we're having it on this program. steve hilton, thanks for being part of it, appreciate it, sir. >> good to see you. stuart: here is a story we brought to you previously. connecticut cut the boat sales tax in half and now, the boat business is booming. coming up we're joined by a fourth generation of connecticut boat dealer, he says they can now be competitive with other states that have been stealing their customers and how about this? a rare moment of bipartisanship in congress, ted cruz and alexandria ocasio-cortez agreeing on something? hold on, sports fans, we'll tell you more after this. >> ♪ ♪
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stuart: what on earth is this? bipartisanship, what? senator cruz acring with aoc, can you believe? jackie what's going on? what are they agreeing on? >> well it's a rare alliance stuart and it's about lobbying so actually aoc started it and she basically said she has the opinion you should ban former congress men and women from becoming lobbyists and getting
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that big paycheck and ted cruz has been outspoken about this since 2015 so it all started with a tweet from aoc, and cruz responded, here is something i don't say often, i agree with ao c, indeed i've long called for a lifetime ban os money former members of congress, and it goes on, so basically what they're saying is you shouldn't use that influence, that power that experience to then get that kind of big paycheck and critics of that point of view would say well, you know, presidents go out and lecture afterwards and write books and do a lot of things and leverage their experience, so why should we ban the congressman from doing it? stuart: but they've got an agreement on this. who would have thought? ashley: i know. it's the apocalypse. >> [laughter] stuart: uber lost $1 billion, which was about what was expected. we're going to talk to an early uber investor, mitchell green. does he regret investing in the company that is now bleeding cash? the markets are coming back, look at this. we were down 330 and now we're
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down a mere 200. next up, jeffrey cleveland, interest rates are down toy a 20 -month low. why? inquiring minds want to know. >> ♪ ♪ 2,000 fence posts. 900 acres. 48 bales. all before lunch,
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stuart: well, i would have thought with progress, we were down well over 300 and now we're down just under 200, 195 down. can we say coming back? ashley: we can. stuart: we could. we just did. look at uber, yes, they lost more than $1 billion in just 13 weeks. ridership, revenue, both went up but they lost 1 billion. come on in, market watcher mitchell green, and managing partner lead edge capital, you, sir, i know, you were an early investor in uber. did you think, did you ever think that it was going t bleed cash like this? >> listen, we did not, how are things by the way in new york. stuart: [laughter] >> i would say that it's probably been a more competitive battle than we would have thought and competitive may mean burn more money, but i'm hoping that i think these stocks were
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actually down in the aftermarket yesterday and then on the earnings call, nelson made reference to competitors both in north america and south america being more rational, like subsidies and i think that is a great thing and we expect if that continues you'll see the burn rates substantially decrease. stuart: so that's why -- >> i think that's why both stocks are up, yes. stuart: in a horribly down market both those ridesharing companies are up. lyft especially is up what over 5%, fractional gain there for uber. now i have to ask, do you still own a piece of uber? >> of course we haven't sold anything. stuart: and have you any intention of selling it at any point in the future? >> i mean, at some point in the field look at we run a fund. we have no desire or any pressure or any indication to sell anywhere near these prices. we think the stock is dramatically under valued. stuart: one thing that's caught our attention on the show this
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morning is uber eats. is it true that it's close to a $20 billion a year industry/ operation for 20 billion a year? >> look, the numbers are in the filings. we think it can be substantially north of a $20 billion a year operation over the next couple of years. the business is growing north of 100% a year, and what's happening what you're going to see happen in my revenues at uber we think will dramatically accelerate for a couple reasons. one, the fx headwinds are disappearing because a bunch over the next couple quarters a bunch of the business is international and two, we think uber eats take rates which is the percent that uber takes is going to dramatically increase, because if you looked at the last year, its come down a bunch and it started to jump and go back up in q1 and we think that's going to continue which will massively reaccelerate revenues. stuart: aren't you surprised? i mean, it blows me away that
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$20 billion per year is spent on uber, ordering food, for delivery. i mean, i'm blown away. look i never ordered food for delivery ever in my entire life and i'm not going to start now. aren't you surprised at that? >> it's fascinating and not like it started with grubhub actually with a guy named jason finger who founded a business called seamless web which is big in new york and merged it with grubhub and that's a large publicly traded company and then along came uber eats, door dash, you know, that's also growing like a rocket ship. i think we're just freaking lazy you know? they just want to, everybody got all excited about like blue apron and hello fresh, which are these like at home meal kits that like send you all of the ingredients and you can cook it. i think people realize that at the end of the day they still had dirty dishes. if you order uber eats and door
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dash, and you get like all of the food and you can eat it. stuart: it's a generational thing. i'm an old guy okay? i'm a senior citizen okay? and i don't think my generation is out there ordering in food when you pay what is it a 15% piece of the action? ashley: correct. >> you'd be surprised. stuart: and a tip to boot. >> you'd be surprised, when you look at the, if you can look at credit card panel data and i could send you this but if you look at the credit card panel data and look by age, old people are lazy too. stuart: [laughter] okay you made your point, green. ashley: [laughter] stuart: it's very good information. i find it fascinating. great that you're an early investor, great that you're not selling. you're a rich man, congratulations, son that's crate. >> no, not yet. it's all on paper it means nothing. stuart: rubbish. it means a lot. ashley: [laughter] stuart: mitchell green you got to come back soon. you just got to. we appreciate it see you soon.
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>> good to see you. thanks again. stuart: now i want to deal with interest rates. look at that. that is the yield on the 10 year treasury as of right now, 2.18%. that is extremely low, by historical standards by recent standards any standard you care to name, 218 is extraordinary. jeffrey cleveland is with us the chief economist. jeffrey, tell me why. why are we down so far on rates? >> well stuart i'll give you three reasons and then maybe a bonus reason. number one, the tariff turmoil. that's weighing on investors estimates of global growth and u.s. growth and that tends to lead the lower 10 year treasury yields. number two, inflation. we got data this morning, core p ce, it's up a little bit year-over-year but it's still low at 1.6% year-over-year. that tends to keep interest rates low, and the third big thing talking to our traders today. traders in the bond market are betting that the feds next move
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is likely a cut, and if a cut happens soon, that means short-term interest rates go lower, and that has implications for your 10 year treasury, so those are the three forces that i think primarily are driving it , and if you'll let me, one bonus, the u.s. treasury, the 10 year treasury, it trades out a premium. investors globally want it. it's a hot product if you will. it's in demand for collateral purposes and prepare for any kind of risk off. it tends to keep yields lower. stuart: i don't want to get too technical but there's something that fascinates me and that is the $11 trillion worth of bonds, mostly issued by europe, which pay no interest whatsoever which actually have a negative interest rate, so you pay the bank or the central bank to keep your money. can you explain this and how does this end? >> i think what the viewer at home needs to realize is there
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are a lot of investors globally, institutional investors. they can't keep their money, their liquid savings, in a deposit at the bank. they have too much of it and they have to meet payroll, make acquisitions, so they keep that money in the bond market, in assets that are safe and liquid, and if you're a european institution, you're going to keep a substantial portion of that in europe. now the ecb is taking bonds out of circulation with their qe program so institutions have fewer options so there you have negative interest rates. it's supreme court play and demand. there aren't enough bonds to make the demand by investors for those securities so they do pay up for the liquidity. stuart: i just find it absolutely incredible. i'm blown away by uber eats and by negative interest rates, jeffrey cleveland thank you for explaining it. we do appreciate that see you soon. >> i'm going to cook my own dinner tonight. stuart: wash the dishes too. thank you very much indeed.
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next case, president trump lifts ethanol restrictions, jackie dea ngeles is with us. what's going on here. this would keep the corn farmers happy. >> for sure right because they're struggling from the trade tensions with china but there's a reason that the ethanol blended gas is only sold eight months a year because the blends actually releases according to the air pollution so that's one of the problems here and the second problem is potentially gas prices could go higher, the ethanol gas is more expensive so big oil, they are up in arms about this, because big oil is also saying it reduces the demand for pure gasoline once you put the ethanol in there but as you said it does give the corn farmers a little bit of a boom especially in states like iowa that have been hit really hard as a result of what we're seeing from tariff s. ashley: i think it's going to leader to a lawsuit because the gas companies, the oil companies in particular say the epa doesn't have, the administration doesn't have the authority to make this decision, so unfortunately it could end up >> that's absolutely right and
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actually everybody is saying brace for that in the next couple of months. stuart: okay. here comes ethanol. on monday, by the way, the president and first lady will be in britain for their first state visit there. mr. trump will meet with the queen, and prime minister theresa may if she's still the prime minister. coming up we'll be joined by her trade commissioner for north america, interesting. first though, blue state connecticut cut the boat sales tax in half, business is booming now. coming up joined by a fourth generation connecticut boat dealer whose doing very well. thanks to the tax cut. >> ♪ ♪
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the value from t-mobile and sprint. all right, jackie. what are they up to? >> well it might be their next move in world domination because this is a company that went from selling books, groceries and now the cloud business and now they're adding a wireless business and the price jump can be about $3 billion remember amazon is sitting on 37 billion as of the last quarter so this is not a huge price tag for them , it helps t-mobile and sprint because they are moving forward in the merger so that helps clear the path and clear the way. it seems like a win-win for all but the question is as you said once amazon has this where exactly will they go with it? just adding another part in the huge span of its business. stuart: they want access -- ashley: to the network, the actual wireless network, that boost mobile has and they will have access for six years so it will give them time to think what they want to do with it. it's not so much the business they pes reinterested in but the bigger industry. stuart: there you have it amazon at it again.
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next case, i promise you this and we're going to deliver. connecticut just cut their new boat sales tax in half and what happened? sales went straight up. marina occupancy went up, dealer s hiring more full time employees. on the phone with us now, bob petsold, president of yacht sales in portland, connecticut. sorry he's not on the phone he's there in living color the man is right there. bob you tell me first of all how much did sales go up? >> well right now, our sales have gone up by millions of dollars year-over-year, since that tax has increased. our unit volume is up 70% and we're getting into our busiest boating season right now so that doesn't account for may, june, july, which are heavy boat sales months and we're only 10 months into this. stuart: now, are you sure it's just because the boat sales tax was tax cut in half? that is the only reason?
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>> well i think it is if you look at the history of our boat business boat sales have really been flat over the last eight years and we've lost a lot of registered boats out of the state of connecticut. we haven't been competitive to rhode island and new york our surrounding states in this 2.99 has just been a great shot in the arm for us, along with every other dealer, marine supply stores, and marinas in the state of connecticut. stuart: as you've hired people as well i think? >> we have. i mean based on the increased sales, and increase of sales we need store personnel, we need people in our shops, people in our service departments. we've added nine new people since this has taken place, and these are good paying skilled jobs. stuart: that's great and look the moral of the story seems to me the obvious. cut taxes, and increase business that's the message to the rest of connecticut and by the way i live in new jersey where they've
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never seen a tax they didn't like or wouldn't dream of a tax at all. would you come and represent me in new jersey, please, bob because your message is a good one. >> we'd be happy to go down to new jersey and help you out down there. it certainly is a good message and the proof is in the numbers and i think, you know, we've shown that to hartford up there by reducing the tax, by cutting that tax in half. we've actually increased the tax dollars for this state of connecticut. stuart: that's wonderful, you belong on this program. you can have a permanent slot on this program for saying stuff like that. that was good stuff. thank you, sir appreciate it. >> thanks for having me. ashley: that is heck of a story. stuart: the price of gold is up this morning, everything else is down. gold is up $1,300 an ounce. how about bitcoin? yeah, it's up not much, $118 but its reached $8,300 that's bitcoin right now. now, on monday, the president and first lady will go to
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britain for a state visit there and meet the queen and the prime minister et cetera et cetera. next, we're going to be joined by her majesty's trade commissioner for north america, i say the president wants a trade deal, with britain let's see what the commissioner says. there's a lot to love about medicare.
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11:51 am stuart: president trump is in britain next week, for his first state visit there and her majesty's trade commissioner for north america and british general from new york is here now anthony phillipson welcome back to the program sir. is that the correct terminology? >> yes. stuart: okay now then, i think president trump would like to do a trade deal with the brits if and when they get out of europe, but he won't give a very pleasant trade deal if he gets a nasty reception when he goes to london. >> i think he's going to get a fantastic reception when he goes to london from the queen. stuart: are you sure, sir. >> i'm absolutely sure the queen will welcome him in the gardens of buckingham palace and his talks with the prime minister and an undertalked visit is the very important
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commemoration of the 75th anniversary of d-day on wednesday. stuart: i hate to interrupt but you know what's coming. is he going to take an open carriage ride to get to buckingham palace? >> no i don't believe that is the plan and the itinerary that's been released is to say he will be welcomed in the gardens but this is not unique george w. bush was welcomed in the gardens so that's not unusual. the level of security around the president of the united states, they don't always do that. stuart: but let's get to the real stuff here. president trump would like a trade deal with the brits. do the brits really want and need a trade deal with america? >> i think we really want one. i'm not sure i'd say we really need one. we already have an extra ordinary relationship and an ambition to deepen that relationship in any way that we can. the prime minister was the first if you remember wases the first foreign leader to call on the president at the white house in january of 2017 when they first stated their shared ambition to do an ambitious fta as soon as
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we left the eu. we spent the last few years preparing for that trade deal, through something we call our trade and investment working group but we're also continuing to sort of deepen and strength en our relationship earlier this week, for example, one example, we announced a new financial innovation partnership when our two treasuries so we're getting on with it now and we're already laying the plans for future fta once we're in the eu, but already strengthening this partnership. stuart: we want more trade. i think want more trade. that is the objective, long term isn't it? >> absolutely this is a hugely important trade and security relationship. the u.s. is our single biggest export market. we are the biggest investors in the u.s. and they are the biggest investors in the uk. every day over 1 million brits go to work for u.s. companies in the uk and 1 million americans go to work for british companies so this is an incredible relationship but we want to take it up to the next level in the future. stuart: do the brits like president trump a bit more than they did a year ago because they didn't like him a year ago. >> i think let's focus on the
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importance of -- stuart: [laughter] >> i mean actually state visits it worth reporting on this i think we talk about we just say he's coming on a state visit. it's worth thinking what this is this is the queen head of state welcoming the president at the u.s. head of state celebrating the relationship it's the third u.s. state visit that she has hosted and made five state visits to the u.s. in her time so this is the pinnacle of the relationship in terms of putting it on show saying this relationship matters, for all of the reasons we talk about, and all the aspirations we have going forward. stuart: real fast, sir do you have any comment on president trump's threat to impose tariffs on mexico if they don't do something about the immigration? >> i watched that story develop like everyone else, last night, sorry, we will obviously watch with others. stuart: are you shocked by the suddenness of the president's statement? >> at one level, i'd be very honest about it i was not following the operation debate. it's not part of my beat, but the u.s. concerns about the
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immigration issue are longstanding, and have been very publicly expressed. if they have decided this is how they want to address it then we will watch that. we're not in favor of tariffs, we're in favor of free-trade so we'll watch to see how this plays out. stuart: how do you feel about trump the negotiator? hard line trump? always pushing forward? not an easy guy to negotiate with, is he? >> i think he's always pushing what's in the u.s. national interest. stuart: as you know, the personalities play a role here. mr. trump is an outsized personality. he's going into this with guns blazing. >> and a very passion all negotiator for the u.s.. stuart: you are the best diplomat i ever found. would you ever back on this program? >> i'd be delighted. stuart: if you're not careful out be back. thank you very much, sir we appreciate it. >> thank you. stuart: there will be more " varney" after this.
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stuart: costco, huge retailer. big revenue win. revenue up. chief money guy says when china tariffs go up, some more, if think go up some more, their prices, costco prices will go up as well. costco says they will source their goods from other countries instead of just china. or mainly china. >> i would say. it will be a choice for these individual companies. the tariffs haven't even gone into effect. there will be a lag time. ultimately continues, they will have to how much they take of extra costs, how much do they pass on to consumers or split it up a bit. definitely increase of for consumers. no doubt about it. >> many companies say working on
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supply chains is long term things in, bringing manufacturing and processing back home would be a positive thing as well. there is additional round of tariffs on 300 billion haven't gone into effect. that is step that would really hurt. stuart: tariffs are always pending. tariffs on china products could go up on more products in the future. we could fed a rising scale on tariffs on mexican products. >> we haven't heard much about europe. there is threat too with europe. don't forget that. stuart: president is playing hardball on trade front with europe, mexico, canada. >> with everyone. stuart: everybody. that is the truth. there you have it. costco down nearly 2%. overall, this market is sharply lower. i could say we're coming back a little, because when we started out this morning we were down over 300 points. now we're down 230. it is also interesting that interest rates are way, way down
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again. we're around 2.17% on the 10-year treasury. >> flight to safety. stuart: flight to safety. 218. but that is still a flight to safety. >> close under 25,000 on the dow, under it would be psychologically for consumers -- stuart: connell mcshane. it is yours. connell: stuart, have a great weekend. welcome everybody, "cavuto: coast to coast". i'm connell mcshane filling in for neil on this friday with stocks selling off after the latest trade bombshell came in last night with president trump, rattling markets with threat of new tariffs on mexico. he says all because of illegal border crossings. the dow is now down for six weeks in a row. we're on pace for the longest losing streak we've had in eight years, in terms of weekly declines. we'll get to that in a moment. we're off the lows, down 229 at the moment. start with blake burman on the news from the white house. happy friday, blake?


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