tv Varney Company FOX Business July 5, 2019 9:00am-12:00pm EDT
markets. it's pretty clear. deirdre: thank you all so much. amazing morning. of course, that does it for us. "varney & company" is up next. david asman in for stuart. david, take it away. david: i got to second the emotion of charles payne on this market and what's happening with the economy. i think it's great news. thank you, charles. thank you, deirdre. good stuff. good morning, everyone. i'm david asman in for stuart. good news, he's back next week. here's the big story of the day. a big happy surprise jobs report. 224,000 jobs added in june. the bean counters only expected 160,000. wages were up 3.1% over the last 12 months. that is one tick less than expected but still very positive. 335,000 people re-entering the work force, that is why the unemployment rate actually ticked up. check market futures, they are heading lower this morning. a lot of that of course has to do with the fed. that's after the markets hit record highs on thursday -- on
wednesday, forgive me, before the july 4th break. and the dow, nasdaq and s&p 500 all in uncharted territory, still close to record highs despite looking down in the futures. president trump's salute to america speech from last night praising unity and american ideals, freedom and democracy. that's what this country is all about but don't tell that to the left. they say trump got too political, shouldn't have taken the stage at all on independence day. also, the largest earthquake in 20 years hitting california on july 4th. buildings shaken, houses burning, highways cracking. but according to reports, no fatalities. we will have a live report for you later in the show. "varney & company" starting right now. today we come together as one nation with this very
special salute to america. we celebrate our history, our people and the heroes who proudly defend our flag, the brave men and women of the united states military. >> god bless all those people in the military. that was president trump at the salute to america event on the washington mall on the fourth of july. the blue angels flew over washington to celebrate america's independence. that was a spectacular sight. we will have more on yesterday's event coming up throughout the show. back to that blockbuster jobs report. 224,000 jobs added in june. come in, david mcintosh, club for growth president. david, i'm happy. are you? >> very happy with that report. it was very strong and it indicated the economy continues to grow, i think in large part thanks to the president's tax and deregulatory policies, and as you mentioned, the key was
that essentially this is going to put a pause on those who want to see changes in the rates because employment looks good, inflation is about at target, there really is no reason for change. david: 335,000 people coming back into the work force, so that of course ticked up the unemployment rate to higher than it had been, 3.7 is a worrisome rate for some but not to me when i see all those people coming back into the work force. >> i think that's right. that's an indication the economy is continuing to expand and people are responding. that's one of the biggest changes from the obama era recovery and the trump era recovery is that now the pie is getting bigger. it means more people can find jobs. david: exactly. if you build it, they will come. we had a very tight labor market. in fact, some were concerned there weren't enough people looking for jobs and that was making it more difficult for employers to find people that they could hire. now with the influx of 335,000 coming back in, that's going to make it a little easier for employers who want to hire more
to expand more. >> i think that's right. you're seeing wage increasing slowly over time, 3.5% annually, and that's a response. employers are realizing they're going to have to pay good wages in order to continue to attract more people to come off of unemployment and come back into the employment market. david: just imagine, david, what would happen if we get a china deal. in fact, i want you to listen to what national economic council head larry kudlow said about the china trade deal. take a listen. >> i can promise you that we're working hard at it, reopening the talks, but i can promise you we are seeking a balanced relationship. david: we are going to hear from larry later this hour. he's sounding optimistic. do you think a deal is going to get done soon? >> i think there's a good chance they will get to a deal. both sides have an interest in doing that. but what you're seeing right now with china announcing well, we're not going to do anything unless you remove all the tariffs, they know that's not going to happen.
they are staking out their extreme position in a way the president's already done that in threatening to add more tariffs. that phase is done. now we are going to get back to real negotiations and that's a very positive sign. david: i think the give on our part, on huawei, some people are concerned about it, wondering if we are going too much to huawei considering how dangerous they could be, but anyway, that give was a real positive step for a deal, was it not? >> i think it was very much a positive step. the big question here is going to be you're never going to get all of what we need from china on recognizing property rights, particularly intellectual property rights, but if they move in the right direction and then agree on the trade side to a more balanced trade, i think that will be a deal that would look good to the president, if we can move forward and be a tremendous success to the economy. the tariffs are hurting us. they are a drag on the growth and if we can get to a deal where those come back off, you're right, another round of
really fantastic economic growth -- david: i'm sensing desperation on the part of the chinese. not only the slowdown in their own economy but what's happening in hong kong is of great concern to them, as it should be. so it looks like they are hungrier for a deal than they have been. >> the key, i think -- i'm hoping larry kudlow, who i know understands this, is able to get the president's ear, the key is letting the chinese save face even as they make those concessions, and that's just a cultural aspect to it that needs to be factored into the whole negotiation process. david: david mcintosh, always a pleasure. we are going to be able to ask the man himself, national economic council director larry kudlow. he's going to join us to talk jobs, china trade and a whole lot more coming up in about 45 minutes from now. now to the markets. we are close to an all-time high. come in, rebecca walser. how long do you think this economic boom is going to happen?
>> well, you know, this was great news this morning. like you said, 335,000 people back into labor force, 224,000 jobs added. we have just had a phenomenal report all the way around. i discount the tick up in unemployment rate because obviously all the people back into the labor market so you know, it's ironic of course, like we have been talking about, where normally we get a great jobs report and the market would have a great reaction. now they're saying gosh, we're not going to get the rate cut that maybe we expected in july and that's obviously making the market go down slightly this morning. so you know, it's crazy. we get great news and the market reacts badly. it's short term and long term what this means is the economic fundamentals are still there and we are really excited that that is the case. david: you mentioned rates. the ten-year treasury yield is now at 2.02%. the question is, is the fed going to bail us out if things get bad. >> you know, that's the thing, david. things are not bad right now.
i just disagree, i know president trump wants rate cuts. to his credit, he had seven rate cuts in two years of his administration so he deserves some help but the truth is the economy is still really strong. we might get a china trade deal so maybe it's premature to cut rates this month. what do you think? i think so. david: i'm going to be asking larry kudlow about this but you know what steve moore and other friends of that kudlow group think, which is that the fed is stuck in this idea that you can't have tremendous growth like we have been having without inflation. those two things don't necessarily go together and the fed doesn't get it. that's why they think rates should go down. what do you think? >> that's right. i agree with you. the thing is, we have seen a lot of things that don't actually, you know, stand the traditional economic models we have had over the last hundred years. negative interest rates for one is just a mind blower. but the fact is we cannot afford when the real recession does hit and it will hit eventually, economic cycles are cyclical, we cannot afford a weak, anemic
federal funds rate of 1.5% to 2%. that's terrible. what are they going to do with that? how will that help us? we should save our rate cuts for when we really, really truly need them. david: so when are you thinking? obviously you don't think there's going to be one this month, even september, you say no. any time at all in 2019? >> well, i think if the china trade deal goes south and we don't get a deal, then we are going to see some real results of that, and that's when we will need to have that power. david: remember, there's an election coming up. i don't think this president will let that happen. >> ni know. we need a good economy. david: thank you very much. now, southern california was hit by a 6.4 magnitude earthquake. susan, you have the details? susan: scary news during the july 4th independence day celebrations. this is the largest earthquake since 1994 to hit southern california. it looks like the epicenter was at ridgecrest, california. there are reports of injuries, fires, damaged homes but luckily, this is the great part
of this story, no fatalities. 6.4 magnitude. we do have seismologists warning that given that california sits on this fault line, we could see a second tremor, possibly in the next few days. there's a 1 in 20 chance of that happening. just to go back to 1994 for comparison, the 6.7 earthquake, that left 72 people dead, more than $20 billion in damages. let's see what the assessment is. david: we hit on california and some of their crazy economic policies but their preparations are extraordinary for earthquakes. they have done an amazingly good job. congratulations on that to them. check the futures, if you will. despite the great economic news, the markets are generally down. they are fearing there won't be a rate cut which they kind of worked in a little bit on wednesday. that's why we had that huge pop, record day on wednesday. doesn't look like it's going to be that way today when the market opens in about 20 minutes. but it is a big day for amazon. they are turning 25 years old, started as an online bookstore. remember that?
grown to a tech empire. can you imagine right now -- susan: without amazon? david: -- life without amazon? i can't. i absolutely can't. we will get into all of what amazon has done for the country and the world. meanwhile, president trump had a huge night last night, holding his salute to america fourth of july celebration. it did not get too political, as everybody on the left said it was going to be. kept it about our extraordinary military, our history, the amazing people that made this country the great country it is, but he is still facing a ton of criticism from the left. we're on that. also criticizing the president, joe biden. he's saying he could beat president trump by pointing out his racist policies. you will hear it after this. -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.
anniversary today. we will tell you about that later. the dow jones industrials down about 118 right now. s&p is down by a greater amount percentage-wise. the nasdaq's the worst performer in premarket activity. that could change as investors begin to realize the effect of so many more people coming into the work force. that's why the unemployment number ticked up despite the big jobs numbers. 335,000 people coming back into the work force. that is a huge number. now this. president trump held his salute to america event on the washington mall. hoor here's a clip of his speech. >> from the banks of the chesapeake to the cliffs of california, from the humming shores of the great lakes to the sand dunes of the carolinas, from the fields of the heartland to the everglades of florida, the spirit of america's independence will never fade, never fail, but will reign
forever and ever and ever. david: come in, larry o'connor, "washington times" associate editor. i heard the rain kept you away from the mall but i looked at those pictures, there were still -- it looked full to me. >> it was a huge turnout. david: i never get tired of hearing about the spirit of america. some people on the left said not only is that old-fashioned but it's also veering to the fascists when you add in all the military hardware. i didn't see it that way at all. did you? >> no. and i think most americans didn't. it's true, i didn't want to trudge down there with my kids in the rain. i did better. i watched it on fox. listen, this is what the president often sort of traps his opponents into. they start screaming with those stupid histrionic accusations about what the president is going to do, they said you're right, it was going to be a north korea style military dictatorship show, that he was going to turn it political.
any normal american tuning in and watching that speech and the demonstration last night just saw what we all saw, the president of the united states presiding over a celebration of our independence. if the military is involved, that's a great thing because the military helped secure our independence and continues to keep us free and safe. why not tip your hat to that. david: absolutely. a lot of the participants seemed to be sorry there weren't more tanks. they did focus on the air display which were spectacular. all of the forces which had an air contingent, i think this is the blue angels displayed at the last moment. extraordinary. >> incredible. my heart belongs to the blue angels because my daughter's at the naval academy. all the branches were well represented. you're right. listen, anybody tuning into this, even the people who were criticizing the appearance of the tanks, they all say they loved flyovers. can you explain that to me? why is it okay to see military flying over your head but not on the ground?
let the army and marines have some fun, too. david: joe biden slamming the president, listen to what he said. roll this. >> i beat him by just pointing out who i am and who he is and what we're for and what he's against. this guy is a divider in chief. this guy is acting with racist policy. this guy is moving to foment hate. that's the only way he can sustain himself. david: the racist charge, kind of a deflection, i'm sensing. are you? >> listen, he just endured kamala harris and other democrats at the debate calling his policies racist over the last 40 years and of course he's been talking about how well he worked with segregationists. you know what's really sad and tired about this, this is the exact same argument hillary clinton used in 2016, david. if the american people weren't buying it then, the democrats have to come up with what they're for and what their policies are and after today's jobs numbers, it's going to get harder and harder. what's joe biden supposed to say? hey, come on back to the good old days of barack obama and joe biden for those eight years
where we had economic stagnation and low job numbers? that's not a winning argument. i guess he's got to come up with something. the american people have now lived with several years of president trump and they know it's not the horrible picture that hillary clinton painted and it's not the picture joe biden is painting now. david: they talk about this president, the democrats talk about this president focusing too much on -- they're just focusing on the past. it's just constant focusing on the past, the worst of america, not the best of america. it's extraordinary. all right. >> great point. david: great to see you. thank you very much. happy july 4th day after. here's a look at the futures. they are moving lower on that extraordinarily positive jobs report but they are tempering a little bit. it was down a little more earlier in the morning. of course, the fact we had a great jobs number makes the prospect of a rate cut a little less likely. later this hour, mr. larry kudlow joining us live. we are going to get his take on the jobs report. also, i want to know if he can give us an update on the trade
talks with china. he's been teasing us with those for the past week or so. and a new law on the books in new york state, letting illegal immigrants get a driver's license. one county clerk in upstate new york says he's going to refuse to issue those licenses to illegals. he is actually driving down here from upstate new york to be on the show. he's going to make it 11:00 and we have more after this. hmm. exactly. liberty mutual customizes your car insurance, so you only pay for what you need. nice. but, uh... what's up with your... partner?
david: check the futures. we just got this spectacular jobs report for the month of june in so many ways, but stocks are down. the prospect of a rate cut now a little less likely. come in, david dietze, point view wealth management. what do you think? >> put this into context. we still have a very strong economy, very strong labor market. i mean, we were up 174 points on wednesday, the day before the holiday. now we're down less than that. let's not jump off a cliff quite yet. this is still good news for the economy. david: we still can't ignore the possibility, susan, of a rate cut. susan: fed funds futures still pricing in high probability of that happening in this month. david: even after the jobs report. susan: even after the jobs report. david: okay. let's see what the market does when we reopen. we are going to come right back. we have about five minutes until the open of the markets. going to be an exciting day. stick around.
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actually come from selling chips, memory chips. because of the ongoing trade war, huawei and the like can't get access to a lot of these components, they're not buying as much. in fact, they probably stockpiled a lot of these purchases so samsung says quarterly profit is going to fall more than 50%, 50%, in the second quarter of this year. so headaches for them when it comes to chips. also the smartphone, of course, the galaxy fold, they had to take that back, fix it. david: but the interesting thing is that our chip folks, they are down a little, we just showed the chip numbers in u.s. companies, they are down a little because everything is down a little today but they have been doing pretty well. in fact, they have been having some record highs in some cases. susan: philadelphia semiconductor index actually hit a record this year. it's just down a little bit in the last few months. >> absolutely. i think the fact that there's a relaxation of the prohibitions against trading with huawei has helped our chips, of course. and certainly, the truce that
was announced from last week as talks with president xi has also helped boost the semiconductor. on average, actually this is a great place to invest. i would recommend intel, full disclosure, we own because this is about everything, artificial intelligence -- david: the granddaddy in chips. >> plus you have a nice dividend. david: here is the market. we have started trading and we are doing a little better than we were before. now it's down triple digits. right around that 100 mark to the downside on the dow. we see three greens and a lot of reds, but the reds aren't down too much. again, we had this blockbuster jobs number this morning. not only showing that we had many more jobs created than we thought we were going to create but we also had a lot of people coming into the job market that had been sitting on the sideline. 335,000 people came back into the work force. in fact, that's why the unemployment rate ticked up a little bit. that's actually very good news. little disappointment on the wage numbers, as david was just
talking about, but david, it wasn't much, just down one tick less than expected. we still have over 3.1% wage growth for the year. >> yeah. i'm actually seeing a little bit of goldilocks here because we have some strength in terms of the job creation, but we're not seeing the inflation which really pushed the fed back into the recesses because it was only 3.1 but it's still reasonable. i think we might have the best of both worlds where we're seeing still reasonable strength in the u.s. economy but i don't think the fed's out of play for the end of july. susan: i don't think so either. right now fed funds futures are pointing to the lowest expectations for 50bips later this month -- david: basis points. susan: basically 25 basis point cuts, quarter point cuts, still on the table. in fact, highly likely according to feds funds futures despite the fact this is a blowout jobs report. david: the economy added 224,000 jobs in june. come in, jonathan hoenig,
capital pig hedge fund manager. i always hesitate to say that. but that's the name of your group. of course, david dietze, who forgive us, we didn't introduce you, nor did we introduce susan li properly. welcome to all of you here. jonathan, we haven't heard your reports on the jobs report which i thought was spectacular. >> it is a spectacular report. and you know what, the market has at least in the last couple of weeks loved it. the trend is higher for stocks even friday, about 260 new 52-week highs, only 60 52-week lows. what worries me, i think it pays investors to be worried, especially when the financial news is good, is the narrowness of this advance. the average stock that is a small cap stock this year is actually down by about 5%. in fact, the install caps are trailing large caps by about 13%, one of the biggest margins since 1999. look, i'm not a cassandra, i'm not saying sell everything but take a page, as i said before, from warren buffett.
be greedy when others are fearful, fearful when others are greedy. the fact the news is so good right now, at the very least should give people cause to maybe pay down some of that consumer debt they have racked up in recent years. david: i think jonathan is absolutely right. i will give another twist insofar as the fact that some of the smaller stocks have lagged i think gives investors a lot more opportunities. small stocks are populated by financials and so forth. we are seeing today strength in financial stocks because frankly, they need slightly higher rates in order to turn a buck. i think the fact we are starting to see some broadening here is actually good news for investors and for the economy. david: susan, we were talking about inflation before. the fact you have 335,000 more people coming into the work force means inflation expectations are down even more. susan: that's right. david: that gives less excuse to the fed to keep interest rates high. susan: well, yes. i also want to celebrate the female participation, by the way. david: extraordinary. susan: decade high so far this year which is fantastic, for working women, of 25 to 50.
but i would say the inflation expectations were 3.1% wage gains, still capped. i think that still gives room for the federal reserve to cut interest rates this month and in fact, it's a communications game when it comes to the central bank. they telestrated this. the market's anticipating this. they can't disappoint. david: having said that, what happens to the market, i will go to you, jonathan, what happens to the market if there is no rate cut before say september? >> david, the long story short is i don't know. it is so -- david: you are paid to know, jonathan, not to not know. >> i will say one thing. what i look at is big fundamental trends. oftentimes those trends continue regardless of what is even happening with the federal reserve. so susan mentioned inflation. one trend i know i would take advantage of regardless of what the fed does is higher gold prices. gold is at a six-year high. david: just came down today, by the way. >> of course. but you've got to look at those long-term trends.
if i was looking for one area with my own portfolio, we are doing it at capitalist pig.com, looking at those assets that can do well if the u.s. dollar falls. gold is one. david: the problem with gold is that it just sits there. it just sits there. >> i think that's right. i think the key thing of course is the fact that the gold is retreating today. shows no inflation risk there. in terms of what it does, even if it doesn't cut the end of july, it's all about the messaging. this is how jerome powell will earn the big bucks. he's got to negotiate perhaps just delaying a rate hike or excuse me, rate cut until september or december. susan: going into this jobs report, i want to point out the fed funds futures have priced in 60% probability we will get three interest rate cuts this year. david: that's bold. susan: that's going to be pared back. we should point out the
revisions were lower in the previous months' job numbers. >> if the trend holds true, interest rates in this country will be going much, much lower. you look throughout europe, certainly asia, it's hard to find positive yield anywhere you go. i think as the panel has pointed out, it's likely to continue. david: let's take a quick look at the big board. down 123 right now. 126. the trend is not your friend in terms of where the dow is going now. let's take a look at bitcoin. gold is way down. i suspect bitcoin is going to be down as well, as indeed it is, down about $512. it's extraordinary, just a typical day for bitcoin. it's down $512. $500 now. $11,171 for bitcoin. a check on oil. we heard somebody in the last hour, i guess it was -- was it andrew? at any rate, he was saying that oil would be down to $40 a
barrel if it wasn't for the venezuelan and iranian embargoes on oil. even though it's basically flat now at $57 a barrel, if those embargoes ever come off of venezuela and iran oil, you can expect a further drop. that might not be for some time. the national average for a gallon of regular gas is now $2.75. now this. soybean farmers are very worried about the u.s./china trade war after american soybean exports to china plunged 74%. david, i want to go to you first. soybean farmers are taking it on the chin here. they have $21 billion in exports, most of that is china. when china began to industrialize and have more money to buy things like pigs and chicken, they really expanded the soybean market. our farmers focused on china and now they are stuck holding an empty bag. >> it's a real tragedy for the farm belt because over the last
20 years, as you pointed out, there's been a huge migration of acreage from wheat into soybeans and the key customs word china. and now of course the rug has been pulled right out from them. the trump administration is trying to help in terms of subsidies and so forth, i think $12 billion last year, $16 billion this year but it doesn't really stop the problem. i think the silver lining of course is it underscores the pressure that's on the administration to cut a deal quickly with china. david: jonathan, you know it's not just about the farmers. there are all these ancillary industries and so forth that have helped our farmers to grow their market share with china. for example, railroads have spent $6 billion in this country increasing and modernizing lines that lead from the farmers to the exporters, and it's really hurting not just the farmers that have $21 billion in export sales but also a whole lot of other industries that depend on this. >> i would love to hear you bring some of this up with mr. kudlow. david: i will.
>> about how the tariffs are working. but they have really tremendously destroyed these farmers' trade relationships that -- david: i wouldn't say destroyed. i don't think they are irreperable. >> 90% down in terms of soybeans exports is pretty big. david: no doubt. >> the president can come up with tariffs but the point that should be made is trade is always a win-win relationship. the president has said time and time again we are being taken advantage of by china, these soybean farmers certainly wouldn't say that. they have built profitable careers by selling to china and tariffs have disrupted that tremendously. susan: biggest cultural export to china, that has tripled in the last two decades and because of these trade tariffs, you know, the u.s. has now ceded their market share, it's down to 31% of global soybean -- david: we have switched with brazil in terms of who has more dominance in china. stay right there. we'll be right back. quick check of the big board.
the dow is now down 124 points. we have been showing this video all week. a conservative journalist brutally attacked by antifa thugs in portland, oregon. coming up, we talk to a former antifa member who says his former organization must be stopped. you will definitely want to hear from him next hour. first, we are going to hear from larry kudlow. any moment, we will get his reaction to the jobs report and i want to know what he thinks about the president's new fed nominee, judy shelton. she's a gold bug. is the president? peter navarro, white house director of trade and manufacturing policy, joins me live on "bulls & bears" at 5:00 p.m. eastern. don't miss it. more after thchlt this.
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david: let's check the big board. it's down 138. check the big tech companies that we follow every day. we have alphabet actually trading positive a little bit and they are all down less than a percentage point. it's not a big hit for big tech. now this "mad" magazine will stop publishing new content after 67 years on the newsstands. susan: so sad. saying good-bye. that's right. starting with issue number 10 which goes on sale in october, the magazine will be available only in comic book stores from now on or it will be mailed directly to subscribers like you, for instance. david: i'm not a subscriber but i do pick it up at the newsstand when i see it. i love "mad" magazine. susan: there is alfred e. neuman, who the president tweeted after mayor pete buttigieg, doesn't he look like him. i didn't know who he was.
david: he doesn't want to admit he looks like him. it's that simple. we will be very sad to see "mad" magazine go. amazon talking about anniversaries and such, turns 25 years old today. back to our market team. jonathan, david, susan, i can't remember a time without amazon now. i'm so accustomed to it. aren't you? >> absolutely. jeff bezos, of course, rock star ceo, has expanded from just selling books, now they sell everything. there's almost nothing you can't buy on amazon. it's all delivered to your door. hats off for them on their 25th. susan: the company was started in 1994 with just $10,000 in seattle and it's grown, yes, it controls over half of the e-commerce market but don't forget, cloud is their largest growing component as well. that's where all the growth is coming from, advertising, they are getting into everything. >> you know, if jeff bezos had to take 50 initial meetings to raise the money from those high net worth investors just to start amazon because people said oh, you're going to take on
borders, barnes & noble. david: i did a show called "america's nightly scoreboard" many years ago and he was one of my first guests. kind of a small company at that time. susan is being nasty here, i won't respond to that. at that time, you could already see that he had this vision of the future that far extended where he was. he is one of the most visionary entrepreneurs in america, is he not? >> that's it. he has a vision and he made it happen. that's why jeff bezos has become a multi, multi billionaire, richest man in the world. he's changed the world, changed it for the better. all of us have amazon boxes stacked up in our homes. the whole world is available to us. that's thanks to the true visionaries, capitalist visionaries, only in america can these types of stories -- susan: the question is always what happens if amazon gets into this industry.
what happens to the players like groceries and pharmaceuticals. david: my prediction, some day he's going to shake and make up with president trump. that's my prediction. check the dow 30 stocks. before we go to break, let's look at what's happening here. the big board is down 135 points. we now have let's see, two, four, five -- susan: nike is up. david: nike is up. we will talk about nike. next, we are going to see what the white house is now saying about today's spectacular jobs report. my description of it. the one and only larry kudlow on the show after this. wanna take your xfi to the next level?
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david: this is a reason to go hip, hip, hooray. today is a reason to do it. the economy adding 224,000 jobs in june. much more than expected. all these people came back into the labor force, 335,000 of them. come in, larry kudlow, national economic council director. larry, it's a big fat softball. what do you think of the jobs number? >> that's a great number. i mean, we are in a strong prosperity cycle, point number one. point number two, we have registered stronger economic growth with frankly less
inequality. that's something i've heard on campaign trail. growth is faster, prosperity is stronger, inequality is less. the bottom parts of the work force, the nonsupervisory people are doing better than their supervisors. david: point is it's easier to hire a white collar worker than it is a blue collar. you try to get a blue collar worker and it's much more difficult to hire him because there's such a full labor market there. >> well, that's a good point, although there are a lot of people out there. you're getting people coming out of the woodwork. i do want to say to my colleague ivanka trump's campaign to help reskill and retrain workers, i think july is some kind of worker employment month, but everything's a worker employment month around here, and look, i think that people should understand again, i don't know, for the 10,000th time in the
last three or four decades, i will say and you know what's coming, more people working, more people succeeding, more people earning higher wages from their success, does not cause inflation. let me repeat that. more people working does not cause inflation. period. full stop. david: in other words, the fed doesn't get it. >> well, look, i'm not -- i'm just going to say i think the fed is looking at it very carefully, and that's a good thing. i think the markets have been predicting that the fed will probably take back its december rate hike which was probably overbaked but it's independent, i will act on their own time. but i'm just saying more fundamentally, we have to understand that with the right incentives, right, lower taxes, lower regulations, opening up energy, reforming international trade, with the right free market incentives that have been put in place by president trump
frankly, we are getting a tremendous economic takeoff. david: but again, the fed -- >> that's a good thing, not a bad thing. and may i say on july 4th weekend, life, liberty and the pursuit of happiness and let me say, when the founders wrote that, david asman, they understood that life, liberty and the pursuit of happiness was not inflationary. david: i don't think they said that in particular. but let me ask about jerome powell. he clearly does not have a history of recognizing that you can have great economic growth at low inflation. he sees them to be related in some way. is that why he is keeping interest rates at a level that you guys think is a little too high? >> well, look, i'm going to leave mr. powell aside. again, the fed is independent. they are working and puzzling through the same issues that everybody else is.
so i'm confident or at least hopeful, but i'm confident the fed is going to get to the right place on this. david: all right. manufacturing numbers are up, that's great news, and again, it emphasizes or reemphasizes the point you have been making for a long time, you just made earlier, this is a blue collar recovery. >> yeah. that's what's so important. you know, we have done some work, nec, cea and others, we have looked at the distributions here and i know this is surfaced in some campaign debates and i appreciate and respect that discretion, but, but, but, but what we're really seeing is the low end of the scale for education and skills is outperforming the high end. in terms not only of low unemployment, record low unemployment, you got to go back 50 or 60 years for some of these series, but also, in terms of the rate of increase of their wages which is so important. i'm not saying their wages are higher than the supervissupervi
i'm saying the increase is faster. that's huge. we have not seen this, david, since really the mid to late 1980s during the reagan boom. this is a very important development. david: all right. let's talk china trade, if we can. you were talking earlier about face-to-face meetings. what do you think's going to come of that and specifically what about the chinese demand that before anything is signed, we have to remove all the tariffs? >> well, couple things here. i don't want to get ahead of the curve. telephone, telecommunications between the top people which began pre-osaka will continue, and i know they are working on coming up with a date for so-called face-to-face meetings that will happen. i don't know if that's this coming week. i think the phone calls are this week. the face-to-face may not be for another week but i don't want to get ahead of that curve. it's under negotiation which is a good thing. with respect to your second point on the tariffs, i think
president trump made it very clear in osaka to president xi that we would suspend any tariff increases on perhaps the last $300 billion, $325 billion worth of trade, but the current tariff structure will remain in place. there were no conditions for those talks and no conditionality for a deal. but, but the two sides just need to talk about a lot of details and i don't want to get ahead of that curve. david: all right. let me talk about the fed. we talked about the fed before, but about a nominee for the fed. judy shelton, an old friend of yours and mine, we have known her for decades now, she's a gold bug. i'm just wondering if the president is also a gold bug. would he like to move to a gold standard? >> well, i think you do judy a disservice by calling her a gold bug. david: why? >> i don't think -- i don't think that -- look, judy has argued all these years for a steady, reliable dollar and i think that's exactly the right
approach. whether that is a link to gold or some kind of commodity index or whatever remains to be seen. now, in our conversations with judy shelton, who is a brilliant woman and highly qualified, and has already been confirmed by the senate, as you know, she's our executive director for the european reconstruction bank and so forth, her biggest beef and i think you'll see it in her writings and her interviews, "wall street journal" most recently, she wants to make the point that more people working and economic growth and should not be the fed's focal point. that is her point. our other nominee, by the ways none of the nominations are official until they go through the vetting process. i reckon you know that, but, mr. chris waller from the st. louis fed has similar point of view, as does president jim bullard, who dissented in the last fomc meeting.
lower unemployment, more people working is a good thing, not a bad thing. it does not cause inflation. that is where judy shelton stands. david: have you ever heard the president talk postively about going to a gold standard? >> well, look, in the last 20 years i interviewed him many times on tv and radio. i had a lot of conversations with him. i think he himself showed some interest in gold. that is not the main mission right now. david: i get it. >> the main mission, let me, remove obstacles to growth. to remove obstacles to growth. some of those obstacles may be garbage in, garbage out economic models. other obstacles are excessively high taxes and regulations for example. that is where the president's head and actions are going to remain. again today's jobs numbers which beat all expectations show you, that those kinds of free market
incentive policies work and we are in a prosperity cycle which is going to continue. david: larry you can get rid of all the economic jargon. it is so simple, it is economic bumper sticker, remove obstacles growth. you just said it, if you remove obstacles to growth it will grow. there is no. >> 250 years ago the founders talked about this, life, liberty, pursuit of happiness remove obstacles to growth. that's those guys were very smart. we should celebrate them on daily basis. david: i have to tell you about another person i know, art laffer, who knew everything you were talking about long ago, talked about it back in the 1970s. art was given the medal of freedom and we were very happy to be down there to join him in celebrating that but he came under all this criticism
afterwards. steve rattner, all these other so-called economists have been speaking against him saying he is one of the worst economists of all time. what do you make of that? >> i don't make anything of it. i don't even any bit. arthur laffer is a great man. arthur laffer revolutioned economics in last 50 years. reduced the whole incentive model. if it pays more to work, save, invest and take risk, people will do more all of the above. he has opponents. live goes on. it is toxic atmosphere. he is a great man, deserving of this phenomenal award. revolutionized the economics profession. you have a few outlyers, ankle biters, who will never come around. that is their problem, not art's problem. president trump never once hesitated in our discussions about giving the presidential
medal of freedom to art laffer. never did the president hesitate. the president himself. at the ceremony, you have a lovely picture there. with potus putting the medal around art's neck. he said he studied supply-side econmics when he was a student at the university of pennsylvania. he never flinched. that is to his great credit. art laffer has never flinched. i never flinched, you david asman a whole bunch of ours never flinched. when you make a revolution, whether intellectual revolution, whatever, it may not be easy, everybody may not come on board. i will tell you this, because of laffer's work the economics profession changed in very significant ways. the notion of incentives is now here to stay. that is a wonderful thing. and that is why art is so deserving that award. david: incentives matter. so do you as well.
larry kudlow, great to see you my friend. >> thanks, david. appreciate it. david: let's check the big board. concerns whether the fed will be lowering rates at all because of the spectacular jobs number. good news is bad news to the market today. that may change. this is kind of a knee-jerk reaction. sometimes take as weekend to think over, to digest, you may come out roaring on monday. come in john allison, chief investment officer. john you heard my interview with larry kudlow. what do you think? >> well i think the first part of your interview, david, had to do with china and i think larry was talking around the issue of tariffs and what the deal might be but in the middle of all this i think is something very, very important. i think trump made an important concession on huawei. it looks like a throwaway. we think that is actually much more important than people realize. it is the thing that will restart the negotiations. from our point of view, i think
actually contrary to what i even thought a few weeks ago i think these negotiations can proceed at a much faster pace now that this huawei thing has been taken off the table as an obstacle. i think in the middle of what larry kudlow was saying on china, i think that is sort of the gem in the middle of the whole thing. david: i think you're right. >> yeah. then as far as some of the other things, the steady dollar and so on, so forth, i am much more skeptical about trying to steady currencies. i think we learned over 50 years it is much better to let the markets determine where currencies are and if i had to make a bet i would say we'll continue to do that. finally on art laffer, i know him personally as welshes the key point he made is correct, that laffer pointed out the importance of incentives, supply side of the equation, not just the demand side. the only thing i would disagree with larry or anybody who says the only thing you need to do is
have growth, the only thing you need to do is have healthy growth. unhealthy growth can lead to financial crises. it is important for us to keep our eye on the ball, we don't for example, get growths put on piles of debt based on poor companies that is my basic take. david: or poor economic policies they're looking at negative interest rates. christine lagarde head of european monetary union. that is a problem where you think the central bank will not rescue the economy, without doing things like lowering taxes, cost of regulations, lowering productions. negative interest rates may lower it for the wrong reasons, right? >> they're in a dilemma and that is why you have the negative interest rates as you point out, a lot of other things you talk about incentives, less regulation, so on, so forth is not being addressed as much
interest and as much energy as we have over here. i think if europe did that there is a huge amount of talent to be released in europe. we're bullish on europe if it can get out of its own way which has been the problem. david: john allison, thank you very much, my friend. thanks for being here. >> appreciate it, thank you. david: yesterday the president gave a speech encouraging unity and patriotism in his 4th of july salute to america. the media kind of twisted it into something very different. listen to this. >> i heard nothing in the speech where this country should be going, what we should working on, some of the problems we need to fix. that is what we lean on a commander-in-chief president for. >> his speechwriters are not the best in the business. other presidential speech writing teams have been a whole lot better. >> let me see, be subtle, professional level of national security i hated it. on personal level i hated hit even more. stupid dispute politics whether nike put as flag on a shoe. can we actually have a day with
hamburgers, hot dogs, a few beers without a politician? david: come in fox news contributor tammy bruce. reaction to cnn's individual rei don't believe? nothing but pure vitriol coming out of them? >> they're poisoned by hate. there is no normal explanation for this behavior. nature what they think about. in fact yesterday's speech was one of his best. we know the normandy speech was extraordinary. the state of the union speeches have received bipartisan praise as well. yet they continue to want to paint a man that doesn't exist and it is not as though we're only reliant on what they describe. i think a lot of the news media is used to us relying on them for the reality of things. now we have different media. people are watching the speech. if they don't air a speech which the major networks did not do, we're still able to see it online, whether social media
platform or from the white house itself. so i think it was not only an extraordinary speech but it really did have a reflection about president is supposed to tell us where we're headed. clearly this president has reformed this nation already. it is moving, it was optimistic speech. unifying, remarkably unifying speech. i think at this point legacy media is speaking to an empty room. >> they were talking about the tone of the speech, suggesting that it was sophomore i can. there is something corny about being patriotic. i would suggest, there is book i'm reading, new david mccullough book. >> sure. david: the pioneers, postrevolutionary pioneers those who went west into ohio, to explore areas completely unknown. there is nothing corny about david mccullough. he gets into the nitty-gritty, historical details. these were extraordinary individuals but cnn would say it
is sophomoric and corny. >> those people didn't go to harvard. this is point of view of contempt on the nation itself. we can't deny they don't like us. it seemed to be apparent in the 2016 election. they swung the curtain where they don't like the president because he is representation of us. david: that's right. >> i think that is the core of this problem. at same time the american people know what is needed. we saw with the job numbers today, with wage growth. optimism, that consumes us at foreign policy, that is managing tyrant around the world. i think the american people see what the truth of the matter is. david: i wonder if these people who are so smart they can criticize american patriotism as something corny and sophomoric really know the history? i think they're ignorant exactly what these people have done. that is why each one of them, i would pay out of my own pocket to buy each one of those critics a copy of david mccullough's book. >> they're not interested that
is passe. the problem they don't realize they have been left behind. they're scrambling at this point. it is unfortunate. i don't like the fact, it is sad as an american so many people are consumed with this poison. it will be up to them to get out of it. david: that is the word, it is poison. the census issue, had a back and forth where that is going. what do you think what the president is saying about that? >> there is already one report of a former federal judge saying look with article 2, the president would likely be upheld very strongly by the supreme court of his right to do this. and, this is clearly a question. also that has not been not on the census. this is something that was also included during barack obama's terms within that larger census, the american survey, about if you were a citizen. it has been on recently. so, we need to be able to do this. it is clearly a question that is relevant to the economy and to safety and to just the nature of
who is in the country. this is something of interest, not to the executive branch but to the people as a whole. i think he is going to act. that is his nature. it will be i think a good action to take. david: have good july fourth. >> it was fabulous. i'm grateful, every time i wake up in the nation. most people are. it is exciting time to be an american. david: thank you, tammy, very much. president trump and china's xi xinping agree to a new trade truce but new figures showing 50% of the chinese consumers are avoiding buying american goods to show support for china. we have details. we brought you a poll last week, extreme pride in america at 18-year low. how bad is it on college campuses? we have campus retomorrow's cabot phillips with that. ♪
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david: checking the big board, the market down 140 points. the market is worried there may be a push against the rate cut at the meeting this month. we'll see what happens. meanwhile the s&p 500 is down as well, by a little more percentagewise. the biggest downer is the nasdaq, although that actually improved percentage wise a little bit right now. it is down about 54 point to 8115. yesterday the president talked about how americans gained their independence at his salute to america event. listen to what the president had to say about king george yesterday. >> days later general washington ordered the declaration read aloud to the troops, assembled soldiers just joined. an excited crowd running down broadway. they toppled the statute of king george, melted it into bullet
for battle. the far away king, would soon learn a timeless es lesson about the people of this majestic land. americans love our freedom and no one will ever take it away from us. [cheers and applause] david: our next guest wrote a book about the take-down of king george. joining me, utah senator mike lee. your book is called, our lost declaration. how so? how do you think it is lost? >> it is lost in the sense we neglected our principles, the principles frederick douglass said was saving. that we americans are great not who we are, but because what we do. we choose to recognize every human soul has worth. that those are the principles emembodied in the declaration of independence. we have forgotten over time. this is not about the government. it is about the people. david: you suggest that the our
fight against tyranny didn't end against king george, what we're discovering about the deep state, an ongoing continuing fight against tyranny. >> that's right. i wrote our lost declaration. i want to reunite the american people with the principles that helped found our country. one of the things i point out in at our lost declaration," over time we found even when tyranny doesn't wear a crown or sit on a throne it can still exist. it can take hold in constitutional republic like ours. where people neglect the constitutional protections that are there in order to protect their freedom. we picture frame the declaration is sort of the picture itself. that is with we're trying to protect. david: you dead get a democrat. you went across aisles to write a blurb, he is a moderate democrat, joe manchin. it can work on both sides of the aisle, that concern, right? >> oh, it certainly can. look freedom is neither
republican nor democratic, neither liberal nor conservative. it is simply an american ideal. an american ideal says we're going to restrain power. we'll recognize power belongs to the people. it can't be exercised against them without their consent. david: in a perfect, i think what is happening at the border where you have the american people very concerned, it is number one issue of concern for voters right now is immigration yet democrats spent a full year denying it even existed. now the department of homeland security, there is a new story, it is investigating a secret facebook group that some border patrol agents may have been a part of. so there is concern on both sides of the aisle what's happening in our attempts to get some kind of order at the border. what is your thoughts on the latest on all this? >> well look, governments are run by human beings. human beings while redeemable are flawed, they're fallible, they make mistakes. this is why we need to keep our government manageable by the
people. we need to make sure that the government always serves the people and not the other way around. and that is yet another one of the point i make in "our lost declaration." the minute people relanguish control over the government bad things start to happen. we need to recognize the signs and symptoms of an overly active government, figure out how to rein it in. "our loss declaration" helps us identifies. david: the president recreated some of the scenes that happened right after the declaration of independence happened. colonel john nixon, most people don't know that name, he was one of the town criers actually read out to the people what the declaration was. describe, we got to go, quickly describe that scene. >> when the people realized, when they were informed of what had happened, they realized we no longer had a king. they didn't have the internet, television, fox news, fox
business, but people came out and read aloud these words. those words are timely today. that is why we remember them in this book. david: amazing to think back about how that actually played out. senator mike lee, great to see you, congratulations on the book. thank you for coming here. >> thank you. david: cashless trend is growing around the world. some countries are even expecting to be completely cashless by 2023. can you imagine america without cash? you could be surprised by just how many of us think we'll be ditching cash in the near term. and earlier this week i spoke to conservative writer andy gno after he was an tacked by antifa rally in portland. later this hour we have a former member of antifa. i will ask him why he left. ♪ we call it the mother standard of care.
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david: not much of a change on the big board. it is down 160 points. still not enough to completely eliminate the gains we had on wednesday when we reached those record highs. it is all reaction to the jobs numbers which was very good by the way. revenue continuing to grow topping 39 billion in the first half of 2019 for apple, susan. they are a money machine. susan: they are indeed. this is up 15% from last year. apple's app store dominates google. made 86% more in cash. talking about $25 billion for apple's app store. guess what the number one app is? david: i can't even begin. susan: might surprise you. might not last. it is called tinder.
it is a dating app. they made half a billion dollars so far in app subscriptions. number two -- david: aging hormones of millenials spending its money on. susan: this was number one last year. this changed their apps, meaning you can't buy in-app subscriptions so their dollar amount went down, but in downloads, three apps still most downloaded, whatsapp, facebook, from what i see, and instant messenger. instagram was beat out by a new app called tick cob. david: virtually nobody in the globe, from africa, china, doesn't know what's app. susan: china they don't use. susan: china uses we chat. david: suggest like chip demand
and china trade war. susan what does this mean? susan: samsung is warning quarterly profits will be down 50%. samsung is the world's largest smartphone shipper because their smartphones cost less than say apple but they're one of the world's largest chip-makers. chips make up 75% of their offering profit. because of that ongoing trade war, names like huawei is not buying as many components as they used to. so that is hurting a same like samsung. they haven't diversified into faster ram, dram, gaming chips. they will shift away from the memory space, betting more of -- david: meanwhile our concession or viewed as concession to china on way hua mei be a huge bonus for our chip-makers. our chip-makers may be able to sell to huawei. susan: each year. david: susan, thank you very much. president trump and china's xi xinping may have agreed to a trade truce at the summit last week but new data showing
support for american companies in china is lagging and many chinese consumers are avoiding buying american goods whatsoever. what is up with that? we have numbers for you. california giving waymo the green light to transport passengers in self-driving cars. would you take a ride in one of these? we'll have more after this. ♪ my experience with usaa has been excellent. they really appreciate the military family and it really shows. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company, hey would say "oh we can't beat usaa"
that album. susan: yeah. david: this is "revolution." this is the slow version. they have several versions. susan: my goodness, they're playing, "revolution." ashley has been calling this every day. david: he got sick during his moment in the sun. that was not in the beatles. that wah wah was to something we threw in there. the dow is down 176 points. we had big moves on a holiday week. we usually don't have big moves. but we had a big up move on wednesday, and a big down move today because of the jobs numbers came out t was so good, it is making people in the marketplace a little nervous. a new survey showing that 56% of chinese consumers say they avoided buying american products to show their support for china. joining me now is brunswick group partner robert moran. now, robert, i'm not sure you
can trust polling in a police state. i mean you ask a chinese person on the street, you know, if they think american goods are bad, they are worried about who they are reporting to, right? >> well, we have conducted research in both the u.s. and china on the eve of the g20 and our research has been heavily covered in the media and it does check out. it is good data. david: how can you be sure they're not going to be nervous this information will be passed on to the secret police, and that they will get a knock on the door in the middle of the night? >> well i think the audience should know that the fact is very large amount of opinion research is conducted in china currently. heavily in the market research space of course. so opinion research is conducted routinely in china among chinese consumers. david: how does it check out with the actual consumption when it takes place? do you get, do you get trends even before they begin to show
up in the marketplace? >> well i don't think we have data on purchase trends in china right now as they have occurred over the last couple weeks but we should start to get data here sometime this summer from retailers responding how chinese consumers have or have not made purchases. you know our data suggests there is some level of potential boycotting on both sides of the pacific, with 56% of chinese consumers say they pulled back on chinese goods. 17% of americans say they pulled back from chinese goods. in america the numbers are tough for china. it is sort of, you see it on both sides. only 44% of american consumers say they trust chinese companies now. that's down 12% just in the last eight months. so you can see the president's rhett rec having an impact on
the perception of chinese companies as well. david: of course all that could change if there is a chinese trade deal that is signed. meanwhile cashless transactions, like apple pay and android pay, growing rapidly. robert, is it possible we will become a completely cashless society? we heard about this for years? >> yes. i think it is possible but i, i think it's a long way off. what i think you will see is. you will see a significant drop in use of cash over time but it won't necessarily go away. when we invent new technologies, the old technology doesn't exactly evaporate. we use it for some things. we file technologies on top. there are things to think about. in 2011, 36% of americans said that they were cash dominant. they used cash all or most of the time. today that is 24% according to gallup research. the country most advanced in
this is sweden where only 13% of swedish consumers can actually recall the last time they used cash. david: wow. >> a decade ago in sweden, 40% could. you see this all over the world, especially emerging markets, especially asia where people are replacing cash transactions with qr code transactions and similar. because the technology is new, emerging markets can almost leapfrog in a sense using some of these newer technologies. david: you know the thing that bothers me about cashless societies? americans love anonymity of cash. there is always a paper trail using something else. there is no paper trail cash to cash. that anonymity can be very helpful. bad people can use it to launder money. that is not a good thing. very often in a restaurant situation, it is easier for both
sides if you use cash, et cetera. it will take a while for that to completely wash out in our system. >> i think you're right you will see a rapid deterioration of use of cash. i don't think it will go away. you could almost say it's a cashless society at some point, maybe five or 10% can even remember the last time they used cash but it can be used almost a fall back measure. >> i like cash. robert moran, good to see you. robert, thank you very much. let's get an update on the magnitude 6.4 earthquake that struck southern california. the epicenter northeast of los angeles about 150 miles. our own jeff paul on the ground in ridgecrest, california. what does it look like now? reporter: many of the people who live here in ridgecrest are still rattled. but they're thankful that the damage from the powerful quake was not more widespread. we know one home further down
the street hit pretty hard, a few minutes after that 6.4-magnitude earthquake hit. the homeowner says his house caught on fire. if you look at the video, you can see the moment the home out of control. this man, homeowner was out getting tea with his friends. he went home to see if his house was damaged. he saw broken windows. he went in his garage to check on classic cars, when he opened up the door he saw a wall of flames. >> what a 4th of july. i quickly forgot what the hell it was all together. it will be a bad day both an earthquake and a house fire that destroyed the house. reporter: fire officials say there were some other fires, ruptured gas lines, reports of mobile homes damaged or knocked off their foundations. so far the all reports are minor
injuries. people were evacuated after the structures showed some possible signs of damages. they are checking that out right now. the concern now moving forward, what could happen next. there are reports of close to 200 aftershocks since the first earthquake hit yesterday around 10:30 a.m. local time. i can tell you we felt several throughout the morning. as we were setting up for the first hit of the day, we felt the most powerful aftershock, magnitude 5.4. david: that is a big one. jeff paul, thank you very much. google scoring a big win for the self-driving cars in california. i'm still not sure i want to get in one of these. susan: it will be fun in the future. google has gotten permission to transport passengers in the robo-taxis. the california public utilities commission i should stress is difficult from other government department basically given out shall we say licenses to test ride hailing in california.
60 companies have been given this. waymo itself can in the south bay area in san francisco, of course can use their chrysler minivans in the future. they hope the jaguar electric cars to transport, starting with own employees to the waymo campus. they're doing this in arizona. they already have the robo-taxi service up and running this is for corporate. walmart is part of this as well, to shift their employees back and forth from the transit locations but waymo of course wants to expand that in the future, maybe across the country. david: can you man these cars in the streets of new york with all of the stop and go and lane shifting or l.a., for that matter? forget about it. susan: uber has a self-driving program as well. they say that will not be available in the next 20 years or so. depends on the traffic situation. david: maybe in a quiet, not as city suburban in location but
not new york city. quickly. susan: one point there is a still a safety driver behind the wheel. david: coming up next, i talk to campus retomorrow's cabot phillips the lack of patriotism among college students. he has a brand new video that is shocking. there is no word for it. that is coming up. new york state passing a law allowing illegal immigrants access to driver's license. a handful of county clerks upstate new york will not issue licenses. one of them is rensselear lear county clerk and he is on the show next hour. ♪ welcome to the place where people go to learn about
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bad news in the markets, because of interest rates right now. and if you look at oil, that is about the only thing that is doing well. partly because of the fact it, was doing well. it was, it is now down about 17 cents. it was due to go down a little more. some people say it should be down to $40, when you take out iran and venezuela oil embargoes, that the price is too high. it is stablizing a bit the fact that the economy is doing well and economic growth in this country. growth is taking it down on the chin. biggest day down in a while. $28 to the downside. gold is trading at $1392.70 an ounce. we showed you this "gallup poll" on wednesday. only 45% of adults say they are extremely proud to be an american. that is 18-year low.
i want to know what college kids are thinking about this country. the guys at campus reform found out. watch this. >> there are some issues, i can't say yes i'm proud to be an american. that is not to say i'm not fortunate. >> i think we do as a country have a lot to be proud of but at the moment there are a lot more things we have to be ashamedded of. >> i think it is awful if someone says they aren't proud to be american regardless who is in office. so i'm more proud honestly than ever. >> one of the most patriotic things a person can do, realize a lot of problems, help the problems and still love their country at the end of the day. david: bring in the man himself, cabot phillips. media director from campus reform. did you see any glimmers of hope? i saw a glimmer of hope, what did you think. >> a few people stepped up, put their foot down, said despite that i'm proud.
how we gotten to this point, young people are not proud to be an american. that is what in education. when you remove american exceptionalism from our courses the way it going on for year, people are less likely to think we have something worth defending if they don't know what it is ignorance breeds a lack of pride. it is also important to point out when you don't have the pride, you're more likely say fundamentally changed country. when you have the rise of socialism, rise of all these policies people say, that is not what america is about, if you don't know how good america is, you are more likely to support those policies. that is why we need this under control. it is considered anti-intellectual, highbrow come out against america and can't be intellectual and patriotic. >> what is anti-intellectual about having a firm grasp what happened in the world? >> there is nothing anti-intellectual. i ask the students for specifics, many brought up the border crisis. when i look what is happening at
the border, i can't be proud of our country. that is sign how great america is, that so many people are trying to come here. you don't have hundreds of thousands of people risking their lives to headache it to sweden, norway, canada. they come to america. they know we're a beacon of opportunity and freedom in this world. we need to keep it that way. ironically enough people saying that is something to be ashamedded off, shows how good we have it. there are always problems in our country, but patriotic to work together to fix those. not saying i can't be patriotic. david: cabot, you're a good reporter, you like to focus what they think, without injecting yourself into the story, however, do you have after the cameras are off, push back say some of the things you told me, why you should be proud particularly what the rest of the world is like? >> yeah. i try to get them thinking. instead of me telling them to think. try to get people to realize on their own, get the thought provoking questions going. its interesting to point out, some people look at this, say a
lot of young people are liberal, probably democrat it makes sense they're not proud of country because there is not republican in office. look at data, eight years of president obama, republicans no dip at all in patriotism. this past year of president trump, democrats are largest segment of the society having a dip at level of patriotism. there is nothing patriotic not being proud of your country because after certain lead you are you don't like. the most patriotic thing to do as the guy in the video said work together to address problems, not lose pride, not lose what makes our country great. david: bottom line, they're not getting it on campus. they're not proud of what we've done, they don't know what we've done. they're not being told what we've done. and they're not being told what happened with countries that have gone the wrong way, the way that we didn't go, namely those that are socialist. you know george orwell, wrote a book called, "1984". he said who he controls the past controls the future.
professors in college campus realize that. they control the past, they're not being open what that past has really done. >> i think it shows how important accountability is too. when it comes to this revisionist history being taught in class and schools, not only is history not being taught, the form of history being taught is the revisionist form, almost neomarxism, leninest point of view of the world. it is leading people to think america is force for evil throughout history. that is so important to keep our universities accountable, hold what is going on in classrooms accountable. david: i happen to know several colleges where you will not get a job in political science department unless you're a marxist. it is that simple. that is the way things are in some american colleges. not all of them but some of them. cabot, thanks for the work you do. >> thanks. david: big board, looked like we were slipping pretip --
precipitously in negative fairer to. negative 200. i talked the market down. that's awful. because of good economic news on the jobs front. the market is giving a big hiccup to that. we'll see what happens over the weekend as it has a chance to digest this news. coming up next conservative writer andy ngo who was brutally attacked by thugs at a rally, you've seen video. we'll talk with a former member of antifa. he says it is time for violence to stop. more "varney" after this. ♪ fact is, every insurance company hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost.
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unexpectedly good. country continues to do well. if we had the fed lower interest rates we would take off like a rocket ship as he said. david: there you go. susan: he says obama had close to zero interest rates, whereas for him, 50 basis points increases since election day. david: thank you for spelling that out. thanks a lot. we had andy ngo earlier on the program earlier this week. i'm sure you know him. he was conservative journalist violently beaten at portland, oregon rally, by members of the left-wing group, antifa. they are just a bunch thugs. we have a former antifa member said enough is enough. he is coordinator tore leadership institute. gabriel, you were a in antifa. how did you go in. >> i was at protest, ended upbeating them and started doing a lot of protests.
someone from the leadership institute, actually, i had a lot of questions with antifa. and every time that i would raise some objections things we're doing, they would tell me to shut up, stop saying that. they called what i was saying propaganda. david: wow. >> ultimately somebody from the leadership institute reached out to me, they took me under their wing. they showed me what conservative values truly are. david: what concerned me most about what happened to mr. gno, the police, not only did not stop antifa from beating him up, they encouraged him to go back through the gauntlet to get beat up more. how did they get the police on their side or at least some of them? this is in portland, oregon? >> problem we have a bunch of spineless politicians refuse to hold antifa accountable because it benefits their political side. that is with we're seeing in the multiple areas, including the mayor of portland.
david: good for you, coming to admit, first of all to admit you're wrong, but hard to get out, isn't it? it is like mafia, they don't want to let you out? >> well, definitely it was a little difficult to talk to people once i started questioning them but luckily a lot of that has been left in my past. david: we're going to continue to follow you, gabriel. come back to talk to us again about this, i appreciate it. >> thank you, appreciate it. david: the big hour is coming up. we'll have more on the california earthquake. the biggest one in 20 years. quite a bit of damage. there is good news. no fatalities. we'll get the latest from san bernardino county's fire department come up. lyft, the ride share people, making news that they're giving big to migrant aid groups. is that a smart business decision considering the environment? new feature coming to the uber eats app, called dine in. you place order on the app. go to the restaurant. sit down, they bring you the food right away, no waiting, no
david: good morning, everybody. i'm david asman in for stu. stu will be back on monday. it's 11:00 a.m. on the east coast, 8:00 a.m. out west. let us start with your money. checking the big board, it was down moments ago, below 200. stocks moving lower after that blowout jobs report but it is recovering a tiny bit now. it's now less likely that the markets will get that rate cut from the fed that they were hoping for. it's still a little bit, i think a little on the plus side that there will be at least a 25 basis point cut this month, but check the s&p 500. that's down a little more percentage-wise, as is the nasdaq. we are watching the ten-year treasury yield as well.
remember, it was well below 2%. it has gone in the opposite direction, up 2.05% this morning. the story of the day that's affecting all of these issues are that -- is that 224,000 jobs figure. that's a number of jobs added last month. larry kudlow, the economic adviser to the president, was on the program earlier. here is his reaction to that spectacular jobs number. watch. >> we are in a strong prosperity cycle, point number one. point number two, we have registered stronger economic growth with frankly less inequality, more people working, more people succeeding, more people earning higher wages from their success does not cause inflation. david: that's the message the white house really wants to push on the federal reserve board. jeffrey cleveland is with us now, chief economist at payton and regal.
your reaction? >> i agree with larry, we are in a prosperity cycle. countless times now we have heard the cycle is about to end and recession is imminent, and with 224,000 jobs added, 171,000 on the three-month average, that is just not the case. good job growth will lead to good consumer spending which will keep this economy going. the fed can stand pat, they can sit on their hands, they can take a summer vacation, if you will. they don't need to do anything. we don't see a lot of inflation pressure. but i don't see a great need for an insurance rate cut either. what are we insuring against? the economy is in good shape. david: you heard what larry is saying. it's nothing new. he's been saying it for a long time. the fed is too stuck on this notion that if you have strong economic growth like we do, you're going to have inflation. that's why you have to keep rates steady. kudlow and the others are saying no, no, no, you can have very strong growth, as we did in the '80s, and have lower inflation as we did in the '80s.
of course, it was a different time, et cetera. but that's why the rates are a little high now, because they are stuck on this phillips curve notion. >> yeah, you know i agree. you can have strong growth, you can can have low inflation. we have had inflation right around 2%, maybe a little under 2% for 20 years. that's fine. i like stable prices. what i don't like is accelerating prices. that's where i would get more concerned. but right now, with the inflation pressure, i don't see that there's a lot for the fed to do and i think they are coming around to that view. there is no intention on hiking rates in the near future. i would say, though, wages, now, wages aren't inflation. wages can tick up without causing inflation. i expect higher wage growth over the next six to eight months. david: however, let me just push back a little on that because you had 335,000 new entries into the jobs market this month. that's the month of june. that means the more people you have coming in looking for jobs,
the less pressure there is for hikes in wages, even though there's a steady growth in wages, it doesn't look inflationary when you have 335,000 more people coming in. >> we also see in the report a rising share of people leaving jobs. so people that are confident enough in the economic outlook to say hey, i'm giving up this job i have and going to a new one, and the reason they usually do that, david, better wages. so that is a good leading indicator that wages will continue to creep higher. i think we will get to 3.5, maybe a little higher year over year on wage growth over the next six to nine months. david: wow. all right. >> but again, that doesn't mean inflation, david. that means a great environment for u.s. consumers. david: and for u.s. workers. there's nothing wrong with good wage growth and with all the productivity increases we have been having, that's why inflation's been kept so low, no? >> yes. so your productivity keeps your inflation in check.
inflation isn't an issue right now. if we get that tick up in wages that i'm expecting, i wouldn't tie that to an inflation outlook. you can have a good consumer, you can have a solid economic backdrop, better growth, and low inflation. that is what is happening. i expect that to continue over the balance of the year. david: jeffrey, let's dig into the markets a little more. we hit all-time highs on wednesday. that was a spectacular day. pulling back today. where do we go from here? >> well, you have a short-term problem where the market is throwing a tantrum. the expectation was that the fed would cut, provide an insurance boost, a little stimulus to the market, but again, if you are adding 224,000 jobs per month, the argument for that insurance cut wanes a little bit. i think you are seeing a short-term phenomenon. the key thing is if we don't have a recession, then i think stocks can continue to march higher. so investors should view stocks in the short term through that lens. a pullback i think should be
viewed as a buying opportunity. the cycle will march on, the economy will continue to expand and ultimately, stocks will make new highs. david: one thing that could practically guarantee that is a china deal, right? >> well, i think anything, anything that reduces uncertainty on the global trade front will be helpful for the market in the near term. that is actually the thing that the fed is pointing to as the key cross-current quote unquote, try to say that five times fast, that was weighing on growth, that wasn't so much a domestic situation, wasn't the u.s. labor market that was weak, it was that there is some uncertainty from global trade. if we push that off, that is a good sign, that's a lifting up uncertainty for the economy and the market. david: katie, bar the door if that happens. great to see you. thank you very much. appreciate it. and we are waiting for president trump's comments. he just spoke to reporters before leaving the white house for the weekend, going to new
jersey for the weekend. we are going to get the video back, it's called tape playback when we turn it around. we will turn it around as soon as everybody else does so you can keep it right here and see it right here. lyft donating big bucks and free rides to some immigration groups across the u.s. deirdre bolton is with us for this hour. good to see you. how much money and what are they doing? deirdre: it is $150,000 in rides to immigration groups, specifically groups that are not for profit but that offer legal advice to illegal immigrants and lyft is doing this over the next six months. they have this campaign and the tagline is america is an idea, not a geography and they are sharing stories of their drivers, many of whom obviously work for the company but who have come from other places and they are encouraging them on social media to tell their stories. so that is what lyft is doing. no effect that i can notice on the stock. david: their drivers came here legally. otherwise they wouldn't have the jobs that they have even though they are sending some of this
money to support illegal immigrants. next one, big bet from walmart. doesn't seem to be paying off to the tune of around $1 billion in losses. this is about their jet.com. deirdre: it is about jet.com and a few others. jet.com was the most money that walmart ever spent in an acquisition of an e-commerce company, i think it was about $3 billion but they also in the past bought others, and they are really suffering, in other words, none of the particular parts have actually turned a profit so they are pressuring, to your point about jet.com, that founder who is still in place there at walmart to try to cut costs and make the business a little bit more profitable. but this is really about how walmart is trying to compete with amazon. i think for any retail company at this point, it's all about how do we compete with amazon. amazon has about 38% of the u.s. e-commerce market. by comparison point, walmart has 4.7%. they have been buying all these different pieces to try to get at amazon's market share but
unfortunately, walmart is losing about $1 billion actually on its e-commerce properties this year. one thing to note, though, if you look at walmart stock over the past 52 weeks, it is actually outperforming amazon's and of course, the broader market so from a 52-week standpoint, walmart is up around 32%, amazon up 14%, the s&p 500 up around 8.5%. but the headline or subheadline is that walmart may continue selli -- consider selling modcloth later this year. they're trying but it's not working. david: it is almost impossible to compete with amazon. deirdre, thank you. let's get a check on the price of gold. taking a big hit today. of course, the economy is stronger, lot of things happening that are leading it down, $24.40 right now. it's selling for an ounce, $1,396.20. bitcoin, well, it's above $11,000 once again but it is down for the day, down about
$300. it's selling just at about $11,352 today. check the price of oil. probably if we didn't have that great economic news, it would be trading down even further. it's about flat, down about 24 cents, selling at $57.09 a barrel. check gas prices. they are up again slightly, rising about a cent from the 4th, now $2.75 a gallon, the national average. a veteran-owned clothing company is wading into the nike/colin kaepernick controversy, calling on people to boycott nike while also showing its support for the betsy ross flag. we will show you how the ceo joining us later this hour. hong kong cracking down on protesters, arresting about a dozen people. looks like we are going to see how china uses its technology for policing techniques. we will see that in action. we will talk about the
david: we are still waiting for president trump. he just spoke to reporters before leaving the white house for the weekend. he's going to new jersey. when that video comes in, we will turn it around and show it to you. meanwhile, to hong kong. police there have made their first round of arrests from those protests, around 12 protesters in total broke into the government's legislative building earlier this week. max baucus is with us, former ambassador to china. i'm wondering if this is just the beginning of a wider crackdown. mr. ambassador, can you hear us? all right. no, i don't think he can. all right. we will try to fix the ambassador's earpiece to see whether or not he can continue with us. meanwhile, any second now, we are expecting the tape playback from the president who
was just speaking to reporters. he's on his way to new jersey from the white house. he spoke to reporters while he was on the white house ground on marine one. he's already arrived at andrews air force base or is just about to. okay. i believe you have a story now? deirdre: sure. if you have $1.2 million to spend on a race car, do i have a deal for you. ford is going to be selling this new, there it is, this super car. they are only going to be making 45, let's just call it -- david: this is a car that's fit for the streets? deirdre: no. it's illegal. you can't drive it in the street. it's $1.2 million and you cannot drive it in the streets. you better have your own racetrack. i'm sure you can figure that out. what i think is funny, the passenger seat is also optional and no airbags, i have to say. this is basically a racing car. so ford is building 45 and it is
actually literally for track use only. however, for true car aficionados, this is as close as gt owners can get to le mans or any of the big racetracks. david: it is, but for poor folks like us, you can still get a ford mustang. deirdre: you certainly can. no one's going to cry for you. david: we should remember the origin of the ford mustang was the late great lee iacocca who had that idea to give the average american a chance to feel like they could be in a car like this if they wanted to. ford mustang comes about as close to that revving sound -- deirdre: this we are looking at is truly a concept car. it's for true collectors. but the mustang is great. what a great reminder and legacy for lee iacocca this week. david: as we told you, the president, who just left the white house lawn for joint base andrews, that is marine one. by the way, if you watched the president yesterday, those flyovers included a flyover of
the new marine one. i'm not sure whether producers, is this the new marine one we saw fly over the mall? i believe it is. has all sorts of bells and whistles the old model didn't have. of course, we also saw a flyover of the new air force one which was spectacular. that's what led the group of flyovers yesterday. we had every one of our armed forces that has a contingent in the air from the marines to the navy and of course, the air force and the army, they had these spectacular flyovers. the ultimate of the whole evening i think was when the blue angels flew over. i don't know if you saw that, but that extraordinary flyover, the blue angels, and they flew over once, then came back over the mall, flew over and had this extraordinary splay effect. deirdre: it's for the kids, it's for the kids, but every single adult has their neck craned. david: again, all those naysayers saying there will be
too much military hardware, what we saw, not so. it was just a spectacular event in terms of showcasing the most modern machinery that we have, just to keep -- make sure the bad guys in the world don't try to take us on. deirdre: yeah, it was beautiful and the fireworks as well. david: we are just i believe about ten seconds away from the president. here he is, just moments ago speaking on the white house lawn. let's listen in. >> we had a phenomenal [ inaudible ]. we're going to have a lot of people being recruited based on that. we're going to have a lot of people joining our military and we really needed that. our job numbers are so good that the military has a hard time getting people and i think really that you're going to have -- you're going to see a big spike. i've already heard it. lot of people calling in. no place like our military. i think we showed that last night. we had great numbers this morning, i think it was 224,000
jobs. those were really unexpectedly good. and our country continues to do really well, really, really well. so we're very happy about it. i think we're going to -- we're going to be breaking records. if we had a fed that would lower interest rates we would be like a rocket ship, but we're paying a lot of interest and it's unnecessary but we don't have a fed that knows what they're doing so it's one of those little things. but if we had a fed that would lower rates, you would have a rocket ship. when obama, president obama was here, he paid close to zero interest rates. i'm paying real interest. yet our economy is much better than it's ever been. from election day we're over 50% increased and we've made trillions and trillions of dollars, with a "t" trillions. we're doing very well. but last night was spectacular. yes. reporter: [ inaudible ] are you
going to bring democrats back to the table [ inaudible ]? >> i would love rural broadband. we're working on it and i would love to have the democrats come back and talk about infrastructure, talk about drug pricing. we're going to be announcing something very shortly, a favored nations clause. as you know, for years and years, other nations paid less for drugs than we do. sometimes by 60%, 70%. we're going to be and we're working on it right now, we're working on a favored nation clause where we pay whatever the lowest nation's price is. why should other nations like canada, but why should other nations pay much less than us? they have taken advantage of the system for a long time, forphar. we're working on right nuow a favored nations clause so
wherever the lowest price is anywhere in the world or company, but the lowest nation or company, then what happens is we will pay that amount and that's being worked on right now. we are going to do it in the form of an executive order. reporter: [ inaudible ]. >> we're thinking about doing that. it's one of the ways. there are four or five ways we can do it. it's one of the ways we are thinking about doing it very seriously. we're doing well on the census. reporter: [ inaudible ]. >> he made a statement. he wrote something out. the judge didn't like it. i have a lot of respect for justice roberts but he didn't like it, but he did say come back, essentially he said come back. that's what he was saying. so we'll see what happens. we could also add an addition on so we can start now and maybe do an addendum after we get a positive decision. so we're working on a lot of things including an executive order. reporter: [ inaudible ]. >> i don't think i'm a bully at all. i just don't like being taken
advantage of by other countries, by pharmaceutical companies, by all of the people that have taken advantage of this country. you look at what joe biden has done with china. we've lost our shirts with china and now china's dying to make a deal. and we're taking, by the way, billions and billions of dollars in tariffs are coming in, and china's paying for it, not or people. so if you look at what we've done and if you look at what we've straightened out, i call it the obama-biden mess, we're straightening it out, whether it's north korea, you could end up in a war with north korea as sure as you're standing there and now the relationship is a good relationship. we'll see what happens. but as sure as you're there, you were going to end up in a war with north korea. reporter: [ inaudible ]. >> well, i don't call them raids. i say they came in illegally and
we're bringing them out legally. these are people where we have the papers, we have gone through the court system, they will be starting fairly soon but i don't call them raids. we're removing people that have come in, all of these people over the years that have come in illegally, we are removing them and bringing them back to their countries. reporter: [ inaudible ]. >> well, i don't think of it in terms of that. we're just celebrating our country but there's nobody stronger, there's nobody that has the military anywhere close to ours. as you know, we spent $700 billion, when i took over the military, it was absolutely depleted. we had old planes, we had old jets, we had bad -- i mean, just stuff that was tired. now we have the finest jets in the world, the f-35, the f-18s, the new ones. we have military equipment the likes of which we have never
had, building submarines, building aircraft carriers, all made in the usa so it's a double. it's all made now, i'm all about jobs. we had great jobs numbers today but when it comes to the military, it's not about jobs. we have to have the greatest in the world. there's nobody that comes close and our military now is just about the top, just about the best it's ever been. there's nobody that comes close to the power we have in our military. what we have, and in fact, if you look, our nuclear now is in great shape. we have renovated, we have fixed, we're buying some new. never want to use it. we never want to use it. but we have to be in a position that we have to be in a position. but our nuclear is in great shape. our military now is in great shape. reporter: [ inaudible ]. >> well, i can just tell you those people that you see, lot of people in front of the white house, every one of them loved
it. i would actually say, and i want to give a little appreciation, the media generally speaking loved it. they loved the evening. we had a lot of rain. i stood in the rain, the teleprompter went out so -- reporter: [ inaudible ]. >> the teleprompter went out. it kept going on then at the end it just went out, it went kaput so i could have said and actually right in the middle of that sentence, it went out, and that's not a good feeling. when you're standing in front of millions and millions of people on television and i don't know what the final count was but that went all the way back to the washington monument and i guess the rain knocked out the teleprompter, so -- but no, it's not that. i knew the speech very well so i was able to do it without a teleprompter but the teleprompter did go out. it was actually hard to look at anyway because there was rain all over it but despite the rain, that was just a fantastic evening. i think people really had it and
i think a lot of people, you know, it was really a recruitment situation. a lot of people are going to be joining our army, navy, air force, marines -- reporter: [ inaudible ]. >> she campaigned on i'm going to get trump, i'm going to get trump. she never knew me, i never met her, i don't know who she is, but her whole campaign and that's illegal, you're not allowed to do that. she knew nothing about me. she campaigned oh, i'm going to get trump. we have 100 clips and so do you, and you can't do that. our system isn't about that. our system isn't about let's see if we can find something. you can't do that. but her whole campaign was i'm going to get trump, i'm going to get him. can't do that. reporter: [ inaudible ]. >> it would have to be a long time. you know what, very interesting, after 2500 subpoenas, every single person i know practically
was called in one form or another, nothing. and i'll tell you what, even with you people, you're honest people, none of you could have withstood that. they would have found something. if there was a comma put in the wrong place, if there was a period in the wrong location, they would have grabbed it. no collusion, no obstruction after that. it's almost -- it's amazing. you know what it shows? it shows i'm a very honest guy. reporter: [ inaudible ]. >> china. we'll see what happens. they're talking to us, they want to make a deal but we had a deal and they broke it. they broke the deal. they shouldn't have broken it. i think if they had it to do again, they wouldn't because right now, we put very big tariffs on. we have a lot more to put on if we want. but china broke the deal. we are talking to them. we'll see what happens. reporter: [ inaudible ]. >> we'll see what happens with
iran. iran has to be very, very careful. say it? reporter: why did the vice president cancel his trip the other day? >> you'll know in about two weeks. it was a very interesting problem that they had in new hampshire. reporter: what kind of problem? >> i can't tell you about it. had nothing to do with white house. there was a problem up there. and i won't go into what the problem was. but you'll see in about a week or two. reporter: [ inaudible ]. >> the southern border is being policed very well by mexico. mexico is doing far more than the democrat, we all know it, because of tariffs, but they've been great. they put 6,000 people, they have many of them there now on the southern border, their southern border. on our southern border, which is the main border that you think of, they are going to have anywhere between 16,000 and
21,000 troops. it's had a big effect. we have only been there for about a week where they actually had the troops but it's had a tremendous effect, tremendous impact. you'll see the numbers starting to come in very well. guatemala's going to be signing an agreement. we are talking to mexico. but mexico's really doing a good job. very big. but here's the thing. when people come in illegally and then it's crowded and i've seen some of those places and they are run beautifully. they are clean, they're good, they're -- they do a great job. they're crowded because the democrats will not give us any relief from these loopholes. we have loopholes that are so bad. we have asylum that's so bad. so these places are, many of them, not all of them, but many of them, they're incredible. they are really well run. i'll tell you what. i said it yesterday.
border patrol did not train to be doctors and nurses and janitors. that's not what they trained to be. they trained to be border patrol. that's what they're doing and they're doing a phenomenal job. because of the country, because we're doing so well as a country, we never -- we have never done this well. two days ago, we hit the highest stock market number we've ever had in the history of our country. our country's doing great. unemployment's very low. we just came out with 224,000 new jobs. the numbers are unbelievable. that's bringing people up like they've never come up. border patrol and i.c.e. have done a great job. now, people are being removed from the country. we're removing them. we're starting with the ms-13. we have taken out thousands of ms-13 gangs. but we have never had an onslaught and the reason they came up -- and they come up, is because the country's doing well, they want jobs.
reporter: there's a report saying these facilities are overcrowded, dirty and it's a widespread problem. >> they are doing a great job with those facilities. you know how it could be taken care of? number one, tell them not to come because it's illegal. very unfair to people that have been waiting on line for seven or eight years and they are about to be admitted and they studied and know the country and the history and then a person comes in, walks in and all of a sudden, they become a citizen or are allowed to stay? thousands and thousands of people were legally removed from the country and that process has started. we have been doing that for a long time. reporter: undocumented immigrants working at your trump properties -- >> that, i don't know, because i don't run it. i will say this. probably every club in the united states has that because it seems to be from what i understand a way that people do
business. but we have ended whatever they did, we have a very strict rule. those rules are very strict. but it seems that every club practically in the united states, that's the way they did business. reporter: [ inaudible ]. >> well, i haven't seen it. i will say this. i think that the border patrol has been treated very very badly by certain members of congress. very very badly. for the most part they are very respected by congress. but certain members of congress say very bad things and lie and exaggerate and border patrol people are tough people. they're not happy about it. reporter: [ inaudible ]. >> i just spoke with the attorney general. we have a number of different avenues, we could use all of them or one. we are doing very well on that issue.
we are spending $15 billion to $20 billion, we are doing everything. we are finding out everything about everybody. think of it. $15 billion to $20 billion and you're not allowed to ask them are you a citizen. by the way, if you look at the history of our country, it's almost always been asked. we are fighting very hard against a system that's a very difficult system but we'll make a decision. the attorney general is working on that right now. reporter: -- for trying to get a citizenship question? >> need it for many reasons. you need it for congress, for districting. you need it for appropriations. where are the funds going. how many people are there. are they citizens, are they not citizens. you need it for many reasons. reporter: [ inaudible ]. >> i thought ivanka was amazing at the g20. i'll tell you, the foreign leaders loved her.
they just think she's great. she's very smart and she's done a great job. she sacrificed a lot. ivanka and jared work very hard and they sacrificed a lot to be doing this but they want to do it. ivanka has worked on almost ten million jobs, training and going to companies and getting them to hire people. but the people, the foreign leaders really like her a lot. reporter: [ inaudible ]. >> i'm not grooming her for office. reporter: as a parent [ inaudible ]? >> as you know, president obama had separations. president obama in 2014 built the cells you always show on television. they were built by president obama. but he had separation. the one thing he didn't have is a good economy. so he didn't have the kind of onslaught that we're having. we have a tremendous onslaught of people. who can blame him. they want to get in, they want to take advantage of the economy.
but they have to come in, they have to come in legally into america. i think border patrol has done an incredible job and mexico has been doing an incredible job. yeah. wilbur's a good man. look, a lot of people thought his answer was fine. i didn't see the answer yet. they thought it was fine. it's going to be expanded very simply. there are many reasons but we were surprised by that decision. citizenship has been on that thing most of the time for many many years. so it's very shocking that after spending $15 billion it's not on. reporter: -- pull out of nato? >> tell biden that nato has taken total advantage of him and president obama. we were paying for almost all of nato. we're protecting countries. those countries have to protect themselves with us. they have to make a
contribution. in my first year, i raised over $100 billion from those countries. biden didn't know what the hell he was doing and neither did president obama. nato was taking advantage of us. now they're paying. they still owe us a lot of money. biden doesn't know about that. he just thinks stupidly we do. nato is fine. but they have to pay their way. the united states is not going to get killed on trade with europe. europe kills us on trade which we're changing and europe then kills us because we defend europe and we lose a tremendous amount of money but we lose on trade and the military. president obama and vice president biden, they didn't have a clue. they got taken advantage of by china, by nato, by every country they did business with. reporter: are you watching the world cup final on sunday? >> i don't know that i'll be able. reporter: do you have a message for team usa? >> i hope they do well.
reporter: mr. president, obama never begged to meet with kim jong-un. why did you say that? >> because kim jong-un on numerous occasions to me, president obama wanted to meet with kim jong-un and kim jong-un said no. numerous occasions, he called. right now, we have a very nice relationship. we have done a lot and we've gotten our hostages back. we are getting the remains back. lot of good things are happening and there's been no nuclear testing. during president obama, there were nuclear testings, they were sending missiles. right now everything's nice and quiet. david: president trump on his way to bedminster, new jersey, where he is going to spend the weekend, thinking about all that's happened over the past week or so. crowing a little about the economy and well deserved crowing, based on the 224,000
jobs number for the last month. much more than was expected. 335,000 people coming back into the work force, wages keep growing, maybe a tick slower than they were the previous month but basically very strong jobs report. matter of fact, the market is digesting it more, it's come down a little bit. it was down to session lows at about 230 points to the negative, now down about 127 points. also talking of course about china, saying that china is dying to make a deal. we had a deal with them and they broke that deal. we are still talking, also talking about immigration, saying the reason so many people are coming and why our facilities are so overcrowded right now is because of the great economy. charles payne has been talking about this great economy for a long time now. the more we get these stats in, the more you seem to be right about it. >> you know, it's absolutely remarkable, because i think these economists have to go out and throw away everything they ever learned. at the end of the cycle, we have been hearing, how long have we
been hearing it's the end of the cycle. for years. deirdre: the bull market. charles: the bull market, the economic cycle, these are late stage developments. and i think a lot of it also has to do with the way the fed interacted with the great recession. a lot of things have been thrown off. but every single time we think we're about to fall off the cliff, this is like the third time in the last maybe six or seven months, and we are bracing for that really ugly jobs report, we get something like this. it's been absolutely remarkable. i love the fact that 335,000 people came back to the labor force. it's terrific. david: puts downward pressure on inflation as well. everyone is worried about inflation. that's what bothers the president about the federal reserve. he thinks they are too focused on inflation. if you have 338,000 more people in the work force, that brings down inflation. charles: if you listen to powell in the last fomc meeting, you know, after that, he said something interesting about the lack of inflation. he did argue, he did say hey, it becomes hard to arrest once it continues to drift.
you know, as much as people study and talk about the great recession, you know, the great depression, rather, the fact of the matter is we are talking about deflationary death spiral. i don't think we're anywhere near that. but the fed's got to be wondering how do we get things, you know, for the average person when they hear financial television and inflation sounds like a four-letter word, i always tell people we feel pretty good when our paycheck in flats. we feel pretty good when the value of our home inflates. we feel pretty good when the baseball card collection inflates. there are certain inflation, certain aspects -- deirdre: we don't get to pick and choose because when we pay more for everything -- charles: no one ever said i don't want a bigger paycheck. david: good news on the wage front, it's still up. it was one tick less than expected but still up over 3%. charles: by the way, now it's 9 of the last 11 months, where nonsupervisory worker wages
surpassed other wages. this is what people are talking about. david: blue collar jobs, manufacturing up. stay there. we have more for you in just a minute. stay with us. meanwhile, new york state passing a new law allowing illegals to get driver's licenses but some county clerks are refusing to issue them. one is even threatening to sue the state about it. we will talk to that county clerk, next. don't forget, this weekend's big soccer match, team usa playing the netherlands in the final of the world cup. that's this sunday at 11:00 a.m. eastern time on fox. you can watch it on fox. more "varney" after this. ♪
are down. the market is down 137 points, was down about 230 points so it's recovered a little bit from that. charles payne is with us. i want to focus on something that the president said that was kind of -- hit us out of the blue. an executive order that he may be thinking about called favored nation clause with regard to drug prices, that is no american would have to pay any more than the cheapest drug price in the world, because a lot of other countries price drugs cheaper than we do. what do you think about that? charles: some countries also buy them. they are subsidized so it's hard to figure out is it the country that's buying the drugs and wants to take the hit, the government themselves and they pass that on to their citizens. i think the news is anywhere around the world if something like this were to go through, your drug prices are going up because if are you in the drug industry, last thing you're going to do is want to see this happen. i think there should be a more elegant solution to this. david: this is clearly politically motivated. deirdre: it is, because as we all remember from our own
proprietary research around midterms, the cost of health care is the number one voter concern. that has nothing to do with politics. that's just the american people saying how come i am not getting more for my money, whether it comes to drugs or to actual health care. that's number one front and center. david: keep an ear out. you will hear a lot about favored nation clause with regard to drug pricing. it's going to be an executive order the president will try to put out. we will see what the courts do about it. don't forget to check out charles payne on "making money" every weekday at 2:00 p.m. will we have a cp effect today? charles: absolutely. david: the market's improving. all right, charles. thank you very much. now to this. new york state recently passing a law allowing illegal immigrants access to a driver's license but one county clerk not happy about this. come in, frank marola, rentsler county clerk. you are suing the state, right? >> we are. we are going to process a lawsuit. david: haven't done it yet? >> we will do it federally this time. in 2007 i happened to be there
when eliot spitzer tried to do it. this time it's a little different. he did executive order. this time the assembly and senate passed it, the government signed it right away so we will do it on the federal level. people ask me all the time why is it different in new york state versus other states and it's a simple reason. county clerks process transactions in new york state. versus other states where the state employees all do it. so when they do something, you got 52 county clerks all separately elected officials that do dmv business. we also support the constitution. david: what is your biggest fear with regard to giving drivers' licenses to illegals? >> not just a fear, it's the idea someone is here illegally and we are going to give them a license to drive that will look exactly like the license you hold today. david: i happen to have in my hands an enhanced new york license. this is something i had to get recently. it does allow me to get on planes without using a passport or anything. it also allows me to get on military bases which is good for me. but i knew whi saw this enhanced
license coming that they were going to plan something like this. >> real i.d. law was passed over ten years ago and this governor waited right to the end to sign on. we only got a little over a year left before any license that if you want to fly domestically, it's either got to be a real i.d. license or enhanced. every other license they will say not for federal purposes. if you are here illegally the license they want to give will look just like someone else's license. david: are you afraid that somehow illegals will be able to use it to vote? >> i said in 2007, i say it again, it's really not about driving. if they wanted to give them a license that looked a little different than yours or mine, they can do this. they want to give them a license identical to the license everyone holds to register to vote. david: their claim is that it makes people safer because this way, illegals who are driving will actually have to prove that they can drive well in order to get a license, might improve safety on the roads. you are smiling. >> that's just a big joke. nothing about the safety part of it. it's about getting people, getting them to the polls.
that's what they're looking to do. has nothing to do with driving at all. david: we appreciate you coming down. it took you two and a half hours to get here to make this interview. thank you very much. >> thanks for having me. david: keep us informed about what happens. appreciate it. well, uber eats wants to make your dining experience a little quicker, rolling out a new option that will let you order ahead before you actually get to the restaurant. it's not just for takeout or delivery. celebrity chef rocco dispirito up next on that one. ♪
david: uber eats is planning a new dino dine-in feature. you drive to the spot, grab a chair, chow down, boom, the food's right there. rocco dispirito is with us once again, head of standard grill here in new york city. what do you think of this? >> what's going on? i wouldn't say the head. i'm a chef at standard grill. the actual head of standard grill might be upset. i think it's great to offer a dine in option. uber eats has been chipping away at our in-house sales by offering a really robust delivery system using its existing tech platform.
now that they're going to offer a preorder dine in option means we get to keep all the revenues, the tips and we keep the business in-house. that's really good for restaurants. david: by the way, what do they get out of it? >> i think they get more -- more throughput on their app. the more people using their app, the more fees, the more advertising and ultimately, someone's going to put two and two together and say hey, can you drive me to the place i'm going to preorder my food at. i'm surprised they haven't put that together themselves. i think it's good for restaurants. david: would standard grill play part in this? >> we are actually considering some delivery options and some dine in and order out options. uber eats would be a good one. david: one of the things chipping away at restaurants is higher rents in new york. i don't know if that's true everywhere in the country but i live in the upper west side, lot of places closed for high rents. >> it's a very difficult business. the margins are always very low. increasingly restaurants, if you look at related companies, the big real estate company in new york, they are building
restaurants into their portfolio because it makes sense to have restaurants but it exists with low margins but it helps in the real estate deal. with the advent of the new minimum wage, we have to be even more and more careful about how we hire and train and recruit and employee retention becomes very very important because replacing employees is a very expensive matter. david: you know what kills about the minimum wage stuff. i see people like ocasio-cortez go out and say well, you got to have -- you can't survive on $2.50 an hour. well, you don't if you are -- i was a waiter all through college. you survive on the tips. >> that's true. david: that's what you survive on. they never tell you that. that's where the money is. >> even the minimum wage for waiters has gone up to about $11 an hour. so it's going up no matter where you look in the restaurant business. david: with the profit margin -- >> the profit margin is lower and lower. some of us who make profits are in the 5% to 15%, most are below 10%. david: wow. summer eating tips. we are through the holidays. at least the one where we eat
hot dogs and hamburger. >> yesterday, meat was the big menu item. today, skip meat, drink a lot of water. good thing about summer is you have watermelon, melon, berries, strawberries, all kind of wonderful things full of water and fiber that you can use to consume more liquids. you don't have to just drink boring old water. eat a lot of fruit and a little detox time. david: real meat as opposed to fake meat? >> i'm sure everyone ate their share of meat yesterday. drinking water to detox is the next step. looking at the supplements you might be leaving on your calendar for a few days this weekend, think about eating more vegetables this weekend. sorry to bring that up. david: what bothers me most about fake meat, it's made with gmo. gmo takes the taste out of it. >> right now, gmo products are prevalent in the alternative meat market. that will change. we will get to organic fake meat at some point. david: great to see you.
david: fox business programing alert. i will be interviewing peter that have row. he of course the white house director of trade, manufacturing policy, a lot to talk about with peter. that is today on "bulls & bears" at 5:00 p.m. eastern. keep it right here. get a final check of the markets. the markets are continuing to recover, slowly but surely, deirdre. i think investors are realizing there is good stuff, gold in them their hills if people coming back to the workforce. >> that is positive takeaway from this morning's figures. we had an amazing surprise to the upside. we were looking for only 160,000 jobs added to the economy.
224, we'll take those overall positive results. we can't forget either, we had a all-star standout day wednesday. normal to have a pull back. david: tightest labor market in decades continue. fbn continues with my buddy neil cavuto. neil: so you were a waiter? david: i was a waiter for many years. neil: i got canned for eating all the food. i loved it. david: it is occupational hazard. neil: if tips were low. david: fair trade i would imagine. thank you, my friend. neil: a lot going on, no signs of a slow down. so why is the president pushing the federal reserve to lower interest rates? chaos over the census. the white house is facing 2:00 p.m. deadline to do something. we don't know what the design will be. apple's new iphone design has been leaked. let's say users w
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