tv Varney Company FOX Business September 13, 2019 9:00am-12:00pm EDT
you don't hear about the inverted yield curve anybody. you didn't hear about the economy last night. democrats need to find something else to run on. >> you can't run on wishing for recession in this country. they have to be careful and tread lightly. maria: have a great weekend, everybody. great to see you. "varney & company" begins now. stu, take it away. stuart: maria, thank you very much indeed. good morning to you. good moing, everyone. politics and money. that's what we do. we have big news on both. welcome to the friday edition of "varney & company." how do you sum up the debate last night? try this. you should be very worried about your job, your income and your retirement if any of the democrats on the stage wins the oval office. none had anything to say about extending the growth and prosperity that trump's tax cuts have produced. in my opinion, all of them would kill our prosperity. but i digress. joe biden held up better than just the last time. julian castro looked overly aggressive when he questioned
biden's age. senator warren punted when confronted with middle class tax hikes to pay for medicare for all. bernie sanders, same old, same old. nothing new. he's still humorless and very angry. senator harris failed to break through. she accused the president of sowing hate. beto o'rourke came out in favor of gun confiscation. he received cheers for that. if there was a breakthrough, it was andrew yang. he would select ten families and give them 1,000 bucks a month for a year. he calls it a freedom dividend. lara trump will join us. she's going to respond to the democrats calling the president racist and a white supremacist. now look at this. another rally and it's likely going to take stock prices to new all-time highs. probably today. two items helping the market. president trump talks about china trade and seems to suggest that an interim small scale deal is possible. and this morning, china says it's not going to put new
tariffs on american soybeans and pork. that does sound positive. the president talked about a big middle class tax cut to be announced next year before the election. it all helps the record stock market run. one more thing. carl icahn, mr. new york, is leaving town. where do you think he's going? the green pastures of low-tax florida, of course. "varney & company," the friday edition, about to begin. stuart: just in to us. presidential tweet. here it is. how do you impeach a president who has helped create perhaps the greatest economy in the history of our country? all time best unemployment numbers, especially for blacks, hispanics, asians and women. more people working today than ever before. rebuilt military, a choice for vets, became number one in world and independent in energy. will soon have record number of
judges. i'm not sure what two sc means. supreme court justices, thank you, producer, done more than any president in first two and a half years despite phony and fraudulent witch hunt illegally led against him. win on mueller report, mueller testimony and james comey. ig report which showed him to be a disgraced and dirty cop. republicans have unified like never before. you don't impeach presidents for doing a good great job. no obstruction, no collusion. only treasonous crimes committed by the other side and led by the democrats. sad, exclamation point. okay. i got through it. that just came in right from the president. here we go. look at futures, we are a stone's throw from record territory. market watcher layfield is with us now. do we hit record highs today? >> i think so, yes. i think the perceived alleviation of the trade war is hg the market. stuart: not so much the nasdaq but certainly the dow industrials are headed up. is it trade war? is that the deal?
that's what's pushing it up? >> absolutely. yeah. i don't think the market thinks we will get a trade deal done out of this but the alleviation, the suspension of tariffs, the market likes this. they like status quo for the time being and the market is responding. stuart: i don't see any of the democrats onstage last night actually winning in november of next year. do you think that helps the market? >> you're being facetious. it is like the battle of the tallest leprachauns last night. the only president elected during a bad economy was mckinley. stuart: stay there, john. more for you later. more on the debate from last night. kamala harris making a veiled accusation against president trump. roll that tape. >> you know, people ask me in el paso, they said, because i have a long-standing record on this issue, they said do you think trump is responsible for what happened. i said well, look, i mean,
obviously he didn't pull the trigger but h cerinly has been tweeting out the ammunition. stuart: joining us now, lara trump, senior adviser to trump 2020. lara, your reaction when your president, your father-in-law, is spoken of like that. >> let's start with how boring this debate was. i found it very hard to watch. and really uninspiring in so many ways. none of these candidates look like they could ever in any way, shape or form defeat this president in 2020. but this is more of the same. they accuse the president of everything under the sun because how else are they going to beat him, stuart? when you have a great economy, when people are back to work, when things are working for people in this country, i don't know how you argue against that. the reality is you can't. you call him racist, white supremacist, you blame a shooting on him which is disgusting that they are still beating this drum. stuart: hold on. i have to roll another sound bite with the candidates talking about racism. i will get your response to
that. roll it, please. >> anyone who supports this is supporting racism. >> the only people who actually buy into this president's hateful rhetoric around immigrants are people who don't know any. >> we also call out the fact that we have a white supremacist in the white house and he poses a mortal threat to people of color all across this country. >> we know donald trump's a racist but there is no red badge of courage for calling him that. >> president trump, you spent the last two and a half years full-time trying to sow hate and division among us and that is why we've got nothing done. stuart: can i have your personal reaction to that? >> well, my reaction is the only folks that have been sowing hate and division are the mainstream media, members of the mainstream media, quite frankly. they're the ones that continue to push this ridiculous narrative. i don't know how many times you have to denounce white supremacy, make sure that you talk about not being a racist. it is crazy that people are able to just throw this around so
haphazardly and just very freely call you a racist. we know donald trump's a racist? really? that is so ridiculous. then you see robert francis o'rourke, stage name beto, as many of us might have come to know him, trying to remain relevant. his campaign is tanking. none of these people, stuart, bottom line, are going to be able to beat donald trump. but they think that the only way to do that is to charge him with something and you see buttigieg calling trump supporters racists, just flat out. if you support this president, you are a racist. i don't think that's a very good tactic when you are running for president. stuart: reminds me of hillary and deplorables. candidate andrew yang, can i say he looked generous? try this. >> that's why i'm going to do something unprecedented tonight. my campaign will now give a freedom dividend of $1,000 a month for an entire year to ten american families, someone watching this at home right now.
stuart: before you say it, i will say it. that's buying votes. >> it's 100% buying votes. it's okay because he's asian and knows a lot of doctors is what we heard from him last night. i don't know if anybody caught that. susan: i'm asian. i know some doctors. i know a lot ofeers engin which might be a new trend. >> i'm not asian but i know doctors as well. it's very interesting, some of the things he said. this is 100% buying votes. i guess whenever you don't really have a strategy, you say i'm just going to throw money. he's been talking about giving money away every single debate. very interesting. stuart: it wasn't boring. it was fascinating. you should have watched it. >> i had to continue to turn the channel back. my husband kept changing it. because i said i probably have to talk about this tomorrow. maybe i should watch it. stuart: you did talk about it. lara, thank you very much. see you soon. thank you. listen to elizabeth warren answering a question about raising taxes on the middle class. roll that one, please.
>> will middle class taxes go up to pay for the program, i know you believe the deductibles and premiums will go down. will middle class taxes go up, will private insurance be eliminated? >> look, what families have to deal with is cost, total cost. that's what they have to deal with. and understand, families are paying for their health care today. families pay, when they hear sorry, you can't see that specialist, every time an insurance company says sorry, that doctor is out of network, sorry, we are not covering that prescription. stuart: john layfield is still with us. bet you hope she doesn't win. >> i think wall street hopes she doesn't win the election. i'm from the state of texas. she bans fracking the first day is what she said. that's 1.7 million jobs lost the first day. stuart: the idea that the rich can pay for everything, that is the idea that's being put forward by all the candidates. the rich will pay for this, that and the other. it's simply out of the question. it's not true. >> that's seventh grade student
council election running. we will have free pizza for everybody. who's going to pay for it? i guess the rich kids are. it's insane. look, it's wealth inequality. they have to have something to run on. that's what they're running on because you can't run on the economy so unless the economy turns south they really don't have much of a chance. stuart: we are having far too much fun covering this debate. that's a fact. better than watching it. john, hold on a second. more for you. we just received the latest read on retail sales for the month of august. they were strong. really seriously strong. tell me more. susan: twice the rate expected, up .4%. the consumer is not behaving like it's a recession, right? basically they bought more autos and cars in the month and online sales continue to be strong. we had prime day in july, so with all the retailers kicking in with their promotions, some people thought maybe we will trail off in the month of august, after a stellar july for consumer retail sales. not the case. it shows that the consumers are still buying, picking up the slack, whereas business investment has been slowing because of what they see as
uncertainty because of the trade war, and that does not seem recessionary, does it? stuart: no, it does not. susan: a lot of people have been trying to talk us into a recession. ashley: it absolutely makes what the ten democrats said last night completely false. they were describing a country that i don't live in and clearly the consumers of this country don't live in. they were so negative. everything was awful, it was all terrible. i don't know if anyone buys that. stuart: bernie sanders. ashley: the man is angry. yells all night. stuart: moving on. look at futures. smile at this one. we are going to go up this morning. we were going to go up over 100 points. we have tapered that down a bit. we will be up about 70 for the dow, down a fraction on the nasdaq. then there's juul. the vaping people. they may fight the upcoming ban on flavored e-cigs. the company reportedly wants menthol and mint flavors to be exempt from the ban. look at beyond meat. the stock i believe is up again this morning. yes, it is, just a tiny
fraction. it's partnering with a pizza chain on fake meat and wait for it, vegan cheese. we will tell you which one. carl icahn, leaving the big apple, heading to florida. another example of the rich fleeing high tax states in droves and of course, taking their money with them. in icahn's case, $17 billion. "varney & company" just getting started. ney should always be working harder. that's why your cash automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity. open an account today. of the value you'll find at fidelity. all right brad, once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument,
learn more at retire your risk dot org. stuart: ah, those europeans, they really want to be regulators of american technology companies. eu antitrust regulators are going to impose some new rules ensuring that companies which collect data don't misuse the data. there's facebook, amazon and alphabet in the crosshairs there. they are all down. microsoft, though, is up. investor carl icahn, well, he's leaving new york. he's heading for florida, miami. reportedly in part for lower taxes. look, the only surprise to me in this is that he waited until
he's 83 years old to get the hell out of dodge. what do you say? >> well, look, you look at new york, new jersey, connecticut, the exodus out of that area to not just florida but nashville and charlotte and austin, there's a real demographic shift in this country and yeah, he might have been a little bit late to catch the trend. stuart: i think we are just seeing the start of the mass exodus. what do you think? >> well, if you look at tax rates in the northeast, look at infrastructure, look at the quality of education, look at climate, frankly, and look at other parts of the country, the advantages are obvious. i think they will persist. stuart: okay. you are going to get -- our audience is going to get an editorial on this from me at the top of the 10:00 hour. next one, just listen to the president on trade. roll the tape, please. >> i see a lot of analysts are saying an interim deal, meaning we'll do pieces of it, the easy ones first, but there's no easy or hard. there's a deal or there's not a
deal. but it's something we would k i guess, but we're doing very well. stuart: i think he's saying we would consider an interim deal. what do you make of this? >> i have been saying it for months that i thought there was a plan b. if we couldn't get a big huge grandiose package, why not agree on what both sides have already settled? 90% as mnuchin and others have said is agreed upon so i think there is a chance there may be some other issues. they are never going to solve hong kong or the treatment of chinese dissidents. lot of really thorny issues. but i think on the trade issues, they are close. china is now buying more soybeans. i think you could agree on 90%. stuart: okay. next one, president trump is promising quote, a substantial middle class tax cut to be announced sometime next year. he may announce it but you're not going to get it unless he wins the election. then you might get the middle class tax cut. have i got that right? >> it's a great sound bite for
him. he's not going to get it past nancy pelosi unless he really agrees to a big increase of taxes on the wealthy and corporations. but he can say during the campaign i want middle class tax cuts, it's nancy pelosi who doesn't. stuart: would you be worried if any of the democrats, if they won the presidency from last night? >> no. i thought it was a pretty sorry performance. then we see this morning a great retail sales report. i think chances of a recession have been grossly overhyped. yeah, it might only about 2%, 2.25% but that's three times the growth rate in europe. stuart: got it. thank you very much. see you later. look at futures again, please. we were going to be up about 100. now it's maybe more like 60. a modest loss for the nasdaq. gamestop, the stock thereof has been absolutely pummeled this week. sales way down. they are closing a lot of stores. next, we have a wall street analyst who is still bullish on
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the stock, down 26% from their original price target. they are looking at $165 for apple shares. $165. stuart: whoa! susan: dramatic cut there. the most bearish of all the wall street brokerages. when goldman talks, people listen. why they expect the stock to fall, they are looking at a material negative impact they say on earnings when it comes to the caccounting method they put in for the new streaming service, apple tv plus, undercutting on price, $4.99. will they bundle this with hardware they are giving away for free for any new purchases of ipads, macs, et cetera. stuart: if you bundle it in for free you don't get the revenue which you were supposed to get at $4.99 a month. susan: right. therefore it might hurt the bottom line. stuart: $165? next case, gamestop. there's a stock that's gone down 63% this calendar year but our next guest who is the video game analyst on wall street, he's the
only one with a buy rating on this particular stock. his name is michael pachter. he joins us by phone. make your case. why are you bullish? >> thanks for having me. you know, i am just being pragmatic. i'm a valuation nut, so when i see a stock that the share price doesn't reflect the cash flow generation, i have my rating accordingly. these guys are generating over $200 million in free cash flow. the company is worth about $400 million. so at their current rate it takes two years to justify an investment, get 100% payback. stuart: would you be -- are you talking primarily to traders who might buy at $4.57 where it is now and sell at $4.65 or are you talking to longer term investors who want to put it away for a couple years? >> the answer to that question is whether you think they will be around in a couple years. the answer to that is yes. there are new consoles coming out in 2020 for microsoft and
sony. each of those will have an optical disc drive, meaning they will sell physical media. they won't be download only. we learned that in june. that's when i got really optimistic about gamestop. there will be a next generation of consoles. they tend to last about seven years. last one was 2013 and so i think until 2027, you are going to have physical media available for purchase. i think these guys end up looking like best buy. they will be the last man standing in physical video game retail. they should thrive. stuart: i'm out of time but you are the man on this. we appreciate your analysis. you did it without any jargon. that's really good. you are a goo man. thanks for joining us. see you again soon. switch to the futures board, please. we will be up about 60 on the dow couple minutes from now. back after this.
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having to wait for it. stuart: the "wall street journal" says wework will go public on the nasdaq and it's going to make some changes to its corporate governance. more on that, please? susan: they have to. there are concerns about the corporate leadership, especially with the founder and ceo, adam newman. the company will list on the nasdaq probably the week of september 23rd and they basically say they will appoint a lead independent director by
the end of this year. no member of adam newman's family will sit on the company's board. there were concerns his wife would be on the board, then have all these stipulations in terms of who they choose to succeed adam as ceo. there is concern about him dumping we shares before the ipo. what does that say about confidence in the company? stuart: they are going ahead with it but how it turns out, who knows. stay tuned, please. we are on the upside in the early going on wall street. 60 points higher as we suspected -- as expected, i should say. 50, 60 points to the upside for the dow in the first few seconds. the s&p 500, where's that? up just a tiny fraction, .09%. how about the nasdaq? maybe that's down a bit. yeah, down just a fraction again. the ten-year treasury yield, look at this one. 1.83%. ashley: on fire. stuart: that's extraordinary. literally a couple weeks ago it was at 1.40%. okay. that is astonishing. that's an enormous move in bond
prices right there on your screens. the price of gold, where is it? i think the price of gold yesterday was up around $1500. now $1511. we are returning to apple. it's down this morning, why? goldman sachs cut its price target all the way down to $165. ouch. apple is down three bucks. amazon's down four. facebook's down a fraction. google's down four bucks. microsoft is up seven cents. i own some of it. got it. john layfield is with us, susan li is with us, ashley webster. john, are all these gains, whatever gains we see on the market today, is this headline driven and china trade? >> absolutely. the alleviation that we will have status quo for awhile. we have problems around the world that you can't handicap, brexit, the china trade war. the economy here is very strong. stuart: we have nice momentum going. up seven days in a row.
momentum carrying us through? >> i think so. the u.s. is anyplace to invest money right now. stuart: ain't that the truth. look at google. more on this story. they have been subpoenaed for details related to their advertising business. ashley: it's all about domination. what is google doing, are they playing fair, why did -- they are being asked to give their business rationale why they bought other companies rather than compete against them, you just buy them, right? they want to know what were you thinking. look, the company itself has maintained, google says to suggest the ad tech sector is lacking competition is simply not true. to the contrary, the industry is famously crowded. in other words, google says no to all these questions from attorney generals. google share, the digital app market, is 37%. stuart: the stock has not suffered from all of this. wait a minute. the house of representatives wants to read e-mails from tech executives? susan: the house judiciary committee has asked amazon, facebook, apple, alphabet, the
owner of google, to provide by october 14th lots of documents including executive e-mails, communications, financial statements and this has to do with their look into anti-competitive behavior. look at the stock. no reaction. know why? because this just adds to the long list from the possible doj investigation which is probably most severe of all of them. and all the state attorneys general that have jumped on board saying let's take a look at the anti-competitive behavior but teflon stocks. it adds a long list. whether or not there's going to be any action, i think that will move stocks eventually. stuart: apple is the only one seriously moving. susan: that's on goldman. stuart: a new report in the "wall street journal" says e-cig maker juul may fight the fed's upcoming ban on flavored e-cigarettes. the company specifically objects to mint and menthol bans. that's what the story is? susan: that's what the story is. this adds of course to the
president, his assertion this week that he says he wants to ban all flavors of cartridges especially for vaping and all. so what does this mean for the company like altria which has a big investment in juul, and whether or not juul will ever come to market? that's a big question at this point. stuart: look at that chart on altria. they have a big chunk of juul. the stock, from late august to now, mid-september, you have gone from $46, $47, down to $43, $44. not a huge drop. susan: it's been priced in, i think. if you look at when that started, that was initially when we heard that a lot of states, michigan being the first one, has already banned for six months at least the sale of flavored cartridges for vaping. stuart: by the way, at 11:00, in our 11:00 hour, we will talk to one of the top officials at health and human services. i'm going to ask him what if you had to have a prescription to get a vaping device. wouldn't that solve your
problem? >> it certainly would. you have a lot of kids now vaping stuff from cocaine to meth to opioids. that's a real problem. it's not just the e-cigarettes. stuart: i just don't want to see kids, forget about all the other stuff, i don't want to see kids hooked on nicotine. i just don't want to see that. >> they are vaping in class. they are vaping all the time. it's something you can't smell, you can't detect. it's a real problem with our youth today. stuart: the varney solution which is a prescription for all vaping devices, i might author a bill he. check the big board. modest gain. we are up 44 at the moment. 27,230. look at broadcom, down 3.5%. there's got to be news. it's down ten bucks. bitcoin, $10,300 this morning. the price of oil, i think it's at $55 a barrel this morning. yes, it is. the national price, the average for regular is $2.57.
same as yesterday. susan: broadcom lowered their sales forecast for this year. stuart: when you do that, the stock goes down. down ten bucks. 3.5%. look at smile direct. earning the dubious distinction the worst ipo performance on day one of the year. lauren simonetti joins us. lauren: when you look at an ipo of this size, since the financial crisis. what is smile direct club? you ever heard of it? it's a retainer you can get through the mail. it is a disruptive business. orthodontists are saying whoa, whoa, whoa. we could see lawsuits because of this, slow down, you are disrupting our business. that could be the appeal. yesterday when we saw the share price tank 28%, worst first day performance this year. we are seeing somewhat of a recovery today. investors might be saying okay. stuart: that ain't much. lauren: maybe the disruptive appeal of this stock, there's
something to that. stuart: fascinating. disrupting the dental industry. lauren: you don't have to go. you can basically through the mail do a 3d print of your mouth. they will send you a kit. it's $1900. they say in six months you will have straight teeth. stuart: straight teeth. i thought it was white teeth. lauren: might do that too. the perfect smile. stuart: i'm in. lauren: are investors smiling today? where's the shares? stuart: no. lauren: that's yesterday. they are up in the premarket today. stuart: it's not a recovery. it's up 60 odd cents. down 28%, then up 1%. lauren: we have another ipo today, though. cloud fare. we'll see how that goes. this talks about the ipo market of unprofitable companies, unicorns coming to market. how are they doing? stuart: not well in this case. smile direct is back up 3.7%. whole foods cutting health care benefits for just under 2,000 part-time employees. this starts next year. why are they doing that?
susan: basically in the past, employees needed to work at least 20 hours a week in order to get benefits and buy into the health care plan. now they will need to work at least 30 hours and less than 2% of the 1900 employees actually work more than 30 hours. of course, this is cost cutting, as you know. they are trying to compete with the likes of walmart, the biggest grocer in america, and this is how it works. especially when you are trying to make inroads in retail sales and trying to make inroads in a market that you're not winning in at this point. stuart: amazon right now, $1840. not bad. last night's debate, let's get to that again, please. it was such fun. john, andrew yang wants to give free money to everybody. let's suppose that it happened. just suppose on the extraordinary situation that it might actually happen. if it did happen, would $1,000 a month for every adult in the country help the stock market? >> it would be huge for the stock market. absolutely. consumers, 70% of gdp.
if you are giving free money to everybody, it's going to help the stock market. it tanks our country. it ruins our country, absolutely. but is it good for the stock market to give free money to people who will go out and spend it, yes. it will be good. it's a horrible idea. stuart: that's not the only freebie that's being offered. free college, free education, free health care, et cetera, et cetera, et cetera. is that good for the stock market? >> no, it's not, because of spending. we have profligate spending. there are trillion dollar deficits and almost 3% growth. that's inexcusable. we can't add to that. that's what the democrats that are running want to do. stuart: we are up 50 pois on the dow industrials. i'm looking at big tech. they are all down. the dow industrials are up, what, 49 points. it's that time, folks. just for you, john. you're out of here. >> i'm the only one? stuart: we cut down the number of guests at 9:30. we are really moving fast. susan: he's special then if you cut down the number of guests. we only hav you. >> i feel better about being ejected.
stuart:e'r out of here. big board shows a gain as we said, 50 points. that's the way we are as of now. here's my take-away from the big debate last night. if a democrat wins the presidency, we should all b worried about our jobs, our income, and our retirement. my take coming up at the 11:00 hour on that one. later today, actress felicity huffman will be the first parent sentenced in the college admissions scandal. we will tell you how much jail time she could face. walmart expanding grocery delivery subscription nationwide. $98 a year gets you unlimited grocery delivery service right to your front door. next, a guy who knows more about retail than just about anybody. he loves what walmart's doing. calls it the future of retail. stay tuned for that one. we'll be right back. i get it all the time.
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stuart: 12 minutes in, the dow is up about 60 points, 27,242. then there's beyond meat. teaming up with a big pizza chain this time. okay, ashley, i have two questions. number one, which pizza chain. number two, wait for it, what the devil is vegan cheese? ashley: yes. well uno is the one they're partnering with. vegan cheese, i have never had vegan cheese. i'm a huge cheese fan so i want the real thing. however, those who swear by it say it's actually pretty darned close to the real thing. only thing it doesn't do, it doesn't melt like real cheese when you heat it up. apparently. but you can get all sorts of different types of vegan cheese. you name it, you can get it. but uno pizzeria, the latest to jump on the trend of beyond meat. they will start with nine east coast locations, going nationwide this fall. more and more people are jumping on fake everything.
stuart: there was an ipo, beyond meat, that did incredibly well. best performer of the year thus far, i do believe. susan: roku as well. stuart: yeah. yeah. that was not an ipo this year. susan: okay. fine. calling me out. stuart: got you. walmart adopting that $98 a year grocery delivery service, subscription service. that's the model. seems to be working. our next guest says grocery delivery and a subscription service is the way of the future. look who's here. jerry storch, who knows real estate better than everybody. you do, you really do. you say walmart is the way of the future. make your case. >> let's put this in context. you have walmart is t-rex and amazon is triceratops and they are going at it big-time. this is the next great battle. i'm sure you saw that retail sales report today. one number was eye-popping. e-commerce sales were up 16% on a year over year basis, when you
compare this august to last august. 16%. the consumer is very very strong and what was down? department stores, down 5%. it's all moving online. now, in hard goods space, amazon has a huge lead. they are ten times, ten times the size of walmart.com for home delivery of everyday items but in grocery, walmart is the nuer onerocer in the country and the world. they are huge in the grocery space. they are not going to give it up to amazon without a hard fight. already, you see walmart growing rapidly in what we call the pickup in the store so when you drive up to the store to pick up the groceries you bought and you drive them home. the next big battle is going to be delivering those groceries to your home. this has been a very difficult market to go after. why? because groceries are bulky and heavy. you are delivering a lot of water and soda, things like that. very expensive for that last mile. so i pay the subscription one
time, don't have to worry about it anymore. as many times as i want, they will deliver to my house. what's still not solved, what has to be solved before this really explodes, is what i call the last ten feet. how to get those perishable products from the curb into your icebox. your refrigerator. then talk about letting people into the home, that hasn't been solved yet. that's keeping a cap on this. because nobody likes to carry those heavy bags of groceries into the house. they haven't quite solved that problem. amazon bought whole foods, i have to say that was one of the biggest blunders they made because they bought the wrong grocer. a relatively small grocer, high end, upscale, kind of a quirky natural foods positioning, and it hasn't given them what they thought it would in terms of battling walmart in grocery. but you know, they are going to keep trying. that's what's going on. stuart: the two retailers that really stand out for me, costco and walmart. would you choose between them? which is the better retailer? >> look, they are totally
different business models. they are both amazing. i said many times i think costco is one of the greatest retailers in the world. they operate a razor thin operating margin and deliver tremendous value every day, in a warehouse setting. but they only carry a few thousand skus. you can't get everything you need. a lot of times it comes in giant sizes. so you go there for specific needs you can get in that environment. walmart, meanwhile, meets all your needs on an everyday basis. largest grocer in the world, best for health and beauty care, best for other things, and they have finally drawn the line in the sand as you can see with this move with subscription groceries to say we aren't letting amazon go any farther. if they had drawn that line in the sand a long time ago, amazon wouldn't be amazon today. it would be walmart we would all be shopping at online. very different companies, costco and walmart, but both are going to be winners. there is no retail apocalypse. just companies like walmart, amazon, costco, target, dollar general, taking the share away from the dying sectors like department stores and others. stuart: can you restrict
yourself to 20 seconds and tell me why men are not wearing suits and ties any longer? >> because the workplace has become casual. only buffoons like you and me are wearing suits and ties anymore. anywhere in the world, like investment banks, they are dressing casual. the men's market for apparel is growing tremendously rapidly, just not in suits and ties. stuart: that's what happened to men's wearhouse. parent company tailored. oxford went down as well. we are dressing differently except you and i. it's a refrigeratorefrigerator. my grandfather called it an icebox. thank you, jerry. appreciate it. thanks very much. check the dow 30. let's see the split there between winners and losers. it's about even. it really is about an even split, winners and losers. the dow is up about 60. from fitbit to the apple watch. fitness trackers are becoming more popular, they are, but would you pay $30 a month to get the data that the tracker collects from you? up next, we have the ceo of a company that is offering just that.
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her lawyers, meantime, felicity huffman of "desperate housewives" fame, wants no jail time, 250 hours of community service and is offering $20,000 in fine as well. given that she has one of the lowest amounts, $15,000 in this college admissions scandal, that was to tweak her daughter's s.a.t. scores, compare that to lori loughlin, the other famous name in this, who paid $500,000 to get her daughters into usc. in fact, lori loughlin has not pled in this case, so someone has to be made an example of. will it be felicity or lori? i think people are saying lori will probably get a harsher sentence if she is found guilty. stuart: we shall see. thank you. would you pay 30 bucks a month for a fitness tracker? joining us is the ceo of whoop, will ahmed, who charges $30 a month for his fitness tracker. why do i need to pay you $30 a month to get my information when i can go to fitbit or apple
watch and get the same thing for free? >> well, really what we have developed is a 24/7 lifech that's going to help you understand everything about your body. i think there's a lot of people out there who are exercising or are stressed or are not sleeping enough, and they are asking themselves dhhow do all these different things in my life affect me. what we have done at whoop is developed technology really across hardware and software and analytics designed to continuously understand your body. we are able to tell you things about how much you need to sleep to recover for tomorrow. we are able to tell you based on your recovery whether you should exercise or rest more. whoop is the first fitness product to tell you to actually rest. then we will actually measure all the stress and all the strain on your body over the cove course of a day. stuart: look, it's all good information. but you are selling really to people who, a, have $30 a month and b, are really concerned
about their fitness and lifestyle and the impact on their body of all the stuff that they're doing, sleeping, eating, et cetera, et cetera. i mean, do you have a market of people who are prepared to pay that much for that information? >> well, to clarify, you can also get plans for as low as $18 a month. having said that, we do see a lot of demand right now for better understanding your body. these aren't just people who are athletes. these are lawyers, executives, doctors, cops, firemen, people with stressful jobs. people who want to understand their bodies. we have built the best 24/7 monitor and coach to really help them understand their bodies. stuart: that's what gets me. that's what gets to me, the idea that something i wear around my wrist or wherever is going to coach me through my physical life. i kind of draw the line at that.
>> well, you have to, one, want to improve. let's not forget there does need to be some level of motivation here but fortunately, our audience is motivated. this is a group of people that's competing in their daily lives and wants to be a better version of themselves. what whoop is able to do, it's able to dial that person up or down. if you need to get more rest or you need to exercise more. let's be clear, this is pretty passive, too. i'm wearing this monitor on my wrist, it doesn't have a screen on it or anything. it's meant to be very passive. really, you can check in with an app whether on your iphone or android and that's going to tell you where you are in your day and what to do next. so it can be as involved or not as you really want. stuart: okay. look, i understand and let's see how this thing turns out. will ahmed from whoop. thank you for joining us. appreciate you being here. thank you, sir. >> thank you. stuart: next, will bernie sanders defending his brand of
socialism at last night's debate, well, he did defend it. we will talk about it. he says what he wants is nothing like what's going on in venezuela. you will hear it all. back after this. ♪ ♪ during the fall, everyone who has medicare may be eligible to choose a new medicare health plan. but you may be able to choose a new plan right now. if you answer 'yes' to any of these questions: are you turning 65? do you have both medicare and medicaid? do you have medicare? and are you losing employer health coverage? if you answered yes just once, you may be able to choose a new medicare health plan right now. call humana at the number on your screen to see if you qualify. and we'll send you this helpful medicare decision guide. the call is free, and there's no obligation.
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it's for my family, its for my self, its for my future. annuities can provide protected income for life. learn more at retire your risk dot org. stuart: carl icahn is leaving new york, and he is taking most of is employees with him. they're relocating to, florida. the high tax, largely democrat-run states like new york are paying a very big price for their decades of economic incompetence. it is a modern-day exodus, and it is becoming a flood. the rich are leaving in droves taking their money with them. some who say, good riddance, but more sober democrats are quietly very nervous. so they should be. carl icahn is mr. new york. he has lived and worked here all his life. he owns homes and runs his business here. there is a stadium named after him. there is medical center named after him. he is worth over $17 billion and
he is heading south. in messages to his staff, he wants quieter life in a warm climate. he reportedly told associates it is tes put pushing him out. his estate is worth 17 billion. in florida there is no estate tax. david tepper, paul tudor jones are already gone. you can't blame them. if you make good money in new york city, you will lose 60 cents on every dollar you earn. sometimes more than that the in a city where the mayor has no time for you. he want you to pay even more. so does the governor of new jersey. so does the governor of connecticut. so does the governor of illinois. democrats all. if any democrat wins the 2020 election they will to after everything that you have got left. pile on the rich time. it is all their fault. take their money, you can solve every single problem. what utter nonsense.
if tax to the max was a success, high-taxed states would be booming, but they're not. low tax republican states are growing fast, texas and florida. there is no sign this is going to change. we have yet to hear any democrat at the state or national level suggest a tax cut of any kind. meanwhile, mr. new york is packing his bags. he leaves new york march 31st, next day, he opens up in florida. he won't miss a beat. but new york will surely miss his money. the second hour of "varney & company" is about to begin. ♪ stuart: that was good. we like that. welcome to miami. i think i got that right. david dietze with us this morning. you heard my take on mr. icahn
leaving for florida. i think is a start of much bigger exodus, are you with me? >> absolutely. i'm in money management business. i know knows my clients are leaving my state of new jersey. david tepper. taxes are the symptom. the problem is spending and spending it out of control. i would have to submit you look at union cadillac health care plans. the fact that they don't have defined contribution plans that the rest of us have. stuart: you also have to look at estate taxes. go to florida. a lot of money, leave it to your heir, there is no estate tax at the state level in florida. >> across the board. much better deal down there. local property taxes same thing. everyone is making a move. just the beginning. stuart: they're leaving you, david. >> personally we have telephones. stuart: stay there, please. look who is with us in new york city today, congressman lance
gooden, republican from the state of texas no less. sir, welcome back to the program. >> thanks for having me. stuart: i take it you're cheering this on? you would love to take all the money out. >> it is fascinating to watch the failed policies of these liberal states and ramifications. we've seen californians moving to texas in droves. seems the exodus of new yorkers going to places like florida and staying. stuart: do you have any idea how many people are fleeing to texas, this tax exodus? >> i was told at some point thousand as day are actually moving to texas, some ridiculous number that sounds so big you can't fathom it. we're adding i believe three congressional seats. stuart: losing congressional seat or two, i'm not sure how many. they lose seats. texas gains them because of population flow. >> as companies move, they're
sending employees with them. google had an operation here. they opened up shop in austin. i talked to employees who were thrilled from moving to new york where they would get a huge tax break for relocating to texas. stuart: stop smiling because you're from texas. congressman, hold on, i have more. big money people are fleeing to fa. who else? susan: big dea likes of paul tudor jones, david tepper man, carl icahn. why? because there is zero income taxes for the state. property taxes are lower as well as 5%. compare that to new york which is at 6%. you know, when you have billionaires leaving. eddie lampert as well. 1% of the population contribute 40% of state tax covers. that is a big deal. not just the billionaires are leaving as well. look at average daily residents that are basically hiking out of
new york. 277 each and every day. that is 200,000 that left new york last year. yeah, city. stuart: the city? susan: los angeles lost 201. chicago lost 161. this is every day. you know where they're going? half the top 10 cities have actually seen the biggest influx are in florida. stuart: good lord. those numbers really put meaning to the story. that's extraordinary. good lord. i'm going to move on. we made other point right there. congressman is still with us. a debate last night, quite a few shots were taken at the president. president kamala harris placeally blamed him or the el paso shooting. several candidates referred to him as a white supremacist and a racist. is that a winning strategy? >> if it's a winning strategy to get through the far left primary know it's a losing strategy in
november. kamala harris attacked joe biden couple months ago, that was her biggest day yet. she is suffering. lower tier candidates going all out against joe biden and against the president. i think at the end of the day when we get toed middle of 2020 they have their nominee set, the american people will go who delivered the greatest economy in 50 years, donald trump. stuart: houston is where debate as, america's energy capital, that is my opinion, fossil fuel capital. candidates in that city said would get rid of fossil fuels. doesn't that make a difference to the texas vote which is heading to the left? i can't believe that will do that. >> far left texas democrats recently thiseek voted against their party when we took up anti-energy bills this week. republicans voted against it but some of the texas democrats of the delegation, i won't name their names, i don't want to get them in trouble if you look at
the voting record, texas democrats voted with republicans because they know how important energy is to our texas economy. campaigning against the energy industry is not a winning bet in texas if you're trying to win electoral votes or senate seat. stuart: you're a texan. welcome to new york. i don't think you will stay very long. >> a great place to visit. stuart: actually is. lance, thank you, appreciate it. check that big board. very modest gain on our hands here. up 40 points for the dow industrials. we're still quite away from record highs. but not that far away. look at apple, a price target, a target price cut from goldman sachs. they say that thing is going down to 165, down three bucks now at 219. david dietze back with us again. i read your stuff. you like altria. before you explain yourself, let's tell our viewers that altria has a big stake of juul, the vaping people and the vaping people are under sharp attack these days but you still like
altria. make yourself clear. >> my clients come to me, david, market all-time highs i have to worry about the fed, worry about trade wars, i have to worry about brexit, how can i escape all that? fixed income and bonds. i don't get any yield. al tree -- altria is the answer. i don't see it as cigarette company, but a life-style products. huge stakes in wine, marlboro, marijuana. stuart: cancel how you use the question, lifestyle product. tobacco -- >> obviously the fda is clamping down, i support the efforts, but the end. day government will not tell young people what they are going to do. stuart: what is the yield on altria? >> 7.6%. stuart: you're kidding me. >> not just high yield, it increased 10% per annum last five years along with earnings. stuart: if i buy altria at $42 a share, as of right now i'm looking at a 7% yield. >> 7 1/2%, absolutely.
stuart: that is secure? i will not lose it? >> earnings keep supporting it. not something capital intensive. icing on the cake they split up 10 years ago from philip morris. there is domestic and international. they could come together that will be a huge win-win. they can cut costs and have the globe as a playing field. stuart: do you have any moral qualms investing in tobacco company? >> i personally don't support that. on other hand he there is ace market for it. they have huge stake in kronos, medicinal marijuana. they are going where people are going. stuart: david, you make your case, 7 1/2% yield is 7 1/2% yield. thank you so much. bernie sanders last night defended his brand of socialism. he said it is nothing like what is going on in venezuela. what kind of socialist is he? we're asking a reformed socialist about that in just a moment. we're going to set the
record straight on china trade. a lot of confusion. whether the u.s. will make a short term deal with china. the man who has the ear of the president will join us this hour. president trump's gop challenger mark sanford is on the show. he says the republican party has lost its way. he is on the show. we will allow him to make his case. ♪ fact is, every insurance company hopes you drive safely.
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stuart: we're holding on to a very modest gain. 28 points up for the dow industrials. 27,211 is the level. bernie sanders defending his style of socialism in the debate last night. he says what he wants is not like what is going on in venezuela. watch this. >> anybody who does what maduro does is a vicious tyrant.
in terms of democratic socialism to equate what is going on with venezuela with what i believe is extremely unfair. i tell you what i believe in terms of democratic socialism. i agree what goes on in canada, scandinavia, guarantying health care to all people as a human right. stuart: okay. joshua is with us. he used to be chair of the young peoples socialist league but he changed these days. turning a very different tune here. look, i think bernie actually has a point. i think there is enormous difference between the socialism, marxism, communism of venezuela and the social democracy of canada and scandinavia and what bernie sanders wants. where am i going wrong here? >> two things. one is, now in the debates in trying to come across well he makes a distinction but over the years he has always found good thinks to say about castro's cuba, even about the soviet union.
in the old days he absolutely loved the sandinista regime in nicaragua which he praised to the skies. he is being a little coy what he has believed over the years. but the second point is, if you look at scandinavia, let's say or canada, those are countries that have more government spending than we have, higher taxes, not just on the rich. on everybody. and but they also preserve their business sector. they have, in scandinavia dozens of billionaires. they have very profitable businesses. and they have learned there, they can have a big welfare state but they need a thriving business economy to generate the wealth that pays for that welfare state. but if you're hear sanders talk about businesses in america, his plan for health care is to put the insurance industry out of business, put the pharmaceutical
industry out of business. his plan for the environment is to put the energy industry out of business. and he speaks with such rage against business profits. stuart: he always looks angry. rarely smiles. he might laugh at somebody but rarely with a joke. but that is another story. another subject that came up last night is "medicare for all," and how to pay for it. senators warren and sanders didn't really have an answer how to pay for it. just listen to joe biden. he had a plan. roll it. >> my plan for health care costs a lot of money. it costs $740 billion. it doesn't cost $30 trillion. how are we going to pay for it? i want to hear tonight how that happens. thus far my distinguished friend, the senator on my left has not indicate how she pays for it. and the senator has in fact come forward and said how he is going to pay for it but gets halfway there.
stuart: i've got a question about joe biden whether or not he is a socialist. jonathan, if he builds on obamacare as he says he will, does that make him a socialist? >> no. i don't think it makes him a socialist. i think it, it leaves him with a question of how we're going to pay for all of this. the same question that he put to sanders, so tellingly, because their plan is just kind of out of this world in terms of the cost but, even for a more modest plan, we're facing, we have a one trillion dollar deficit in our federal budget. we also have the report from the medicare trustees that the, the medicare trust fund is no longer going to be solvent as of the mid 2020s. and that's medicare as it exists, without expanding it, without adding anything to it. so even biden's one trillion dollar program, as he describes
it, comes, it is not socialism but it comes with a big question of, how are you going to do that? stuart: i can understand that, real fast, can you give me 20 seconds why you were the chair of the young socialist league and now you're not, what happened? 20 seconds. >> the french leader who started out as a young radical himself, any man who is not a socialist when he is 20 has no heart. anyone still a socialist when he is 40 has no brain. stuart: that was winston churchill. >> no that was claremont, often misattributed to churchhill. stuart: we'll take it. we appreciate it. see you again soon. >> thank you, stuart. stuart: as you know, i'm sure by now if you watch the program the trump administration is banning plan on flavored e-cigarettes. juul first agreed with the plan. no report from
"wall street journal," juul is considered pushing back on it. we'll tell you what juul's argument is. popeye is figuring out a fix for chicken sandwich shortage. they're telling customers to fix their own buns. we'll tell you what on earth is going on. ashley: wow [laughter]. ♪ i get it all the time.
chicken sandwich. apparently there is a shortage of buns. lauren simonetti with us. before we get to the solution, why a shortage of the buns? >> it was a shortage of the sandwich t was a popular sandwich about a month ago. a wall street analyst who upped his ratings on popeye's not a public company, look at traffic. it is doubling at neighborhood popeye's. the sandwich was so popular, the chain ran out. they're saying tongue-in-cheek, byob, bring your own bun and bread, we'll give you three chicken strips, make your own sandwich. stuart: are they making faintly sexual -- >> i don't think so. stuart: bring your own buns? >> maybe they should have said bread. stuart: that wouldn't work. >> chik-fil-a has popular chicken sandwich. this was competition for them in the fast-food wars. they're laughing over here. susan: i'm sorry. >> you went right in for that. i didn't even think of that.
stuart: my talk war inability -- ashley: we're laughing with you, stu, not at you. big difference. stuart: you're not like bernie sanders? ashley: no. >> laughing with him. stuart: thank you, susan. >> will come back for good in the near future. will not be a limited item. it was successful. stuart: i'm moving on because i'm told to do so. there is another piece is a chain conquered by beyond meat. what are they doing? >> uno pizzeria is adding a beyond burger to their menu. they sell more than pizza. they're also adding vegan cheese on your peas say, we asked you before, what is vegan cheese? >> i didn't. i'm not in the market for any of this stuff. however i pay attention when i'm in restaurants and in food store. there is a lot of space now on those store shelves and on those aisles for plant-based everything. stuart: really? >> i don't see it in people's carts as much. it is there. you have the option but who is buying it? stuart: it is available in stores and in restaurants but do
you actually buy it? i mean the jury is out at the moment. we haven't seen any numbers, have we? ashley: no. >> at dunkin' donuts. >> not in my car. >> kfc. stuart: i wish i would have invested in beyond meat at ipo. it is now at 154. i would have taken that. you have to admit this, there are conflicting headlines about whether or not we're going to get an interim trade deal with china. our china watcher will try to set us straight and me, after this. last night on the democrat debate stage, beto o'rourke went for not just gun control but gun confiscation. he will take them away from you. i'm asking tomi lahren what she makes of that. that is coming up in the 11:00 hour. ♪ this is the age of expression.
♪ stuart: you like this one, don't you? susan: i'm excited. because i actually knew it. stuart: this is really nice song. it makes you feel good. i think it was 1967, summer of love. i think, i think. you don't remember that but i certainly do. breaking news, happening now. new sanctions on north korea. ashley: yes, announcement from the treasury department. these are cyber secure entities, according to the treasury department. the lazarus group, blue naroff,
controlled cyber groups but they say are controlled by north korea. they make attacks on critical infrastructure. say the treasury department. by the way the u.n. is also in on this. the lazarus group, they believe was the one behind the 2017, i don't know if you remember this the virus where, it was, affected cyberattacks, i think forget what it was called, "wannacry." that is what it was. "wannacry," that was devastating attack in 2017. it affected 150 countries, the uk and u.s. shut down more than 300,000 computers. it is believed the lazarus group or subsidiary thereof was responsible. stuart: north korea did this? ashley: yeah. stuart: thank you, ashley. ashley: sure. stuart: let's update the wework ipo. this sounds dramatic. susan: it does. don't forget they started off at valuation of $47 billion, in a private round of the funding.
as we march closer and closer to the september 23rd ipo. it is expected to take place later on this month. looks like the valuation has gone down to $10 billion. stuart: 10. whoa. susan: sources according to reuters are saying that they're looking at valuation of just $10 billion. this is concerning. also don't forget this morning we're going to list on the nasdaq, putting a lot of handcuffs on cofounder and ceo adam newman. they diluted voting rights in shares that he owns. bringing in a independent director on the board by the end of the year. putting handcuffs on the fact he can't sell shares a year after the ipo. he can't sell more than 10% of his share holdings in the second and third years of the ipo. why? he had hundreds of millions of dollars he sold before the ipo. and in fact he has taken out $740 million in loans against the shares that he owns in the company. so people are concerned about
corporate governance, leadership, how much this company is actually worth. stuart: you're right. it has come from 47 billion to probably 10 billion. susan: according to reuters. stuart: that is drastic. reuters said it. susan: no decision has been made. stuart: no decision has been made. thanks, susan. let's get to china trade. a lot of confusion whether or not mr. trump would make a partial, quick deal here is what the president said about it. >> i hear a lot of analysts say interim deal, we'll do pieces of it first. there is no easy or hard. there is a deal or there is not a deal. something we would consider i guess. but we're doing very well. stuart: a little confusing there. come in china watcher michael pillsbury. there is confusion here. last time you were on the show you sat next to me. i said maybe we'll get an interim deal. you said no, no, stuart. that is not going to happen. president trump will not do it.
straighten us out. will president trump even think about an interim deal? >> well, you just played the clip where he said he would consider such a thing. stuart: yeah. >> i refer to it as the stuart varney interim deal. stuart: thank you, but, he will consider it. >> because you've been very specific about what you like to see in it. but the president also said in the clip you din play i think, he would like to pet -- get the whole deal done. that is the important phrase. stuart: yep. >> this is negotiation. so the chinese have something to say about all this they have been doing quite a few things themselves. stuart: didn't the chinese say we're good for a 40% deal, we'll talk about 40% of the deal but 20% is off the table, non-negotiable, isn't that what they said? >> this is unauthorized leak that "the wall street journal" ran, 40, 40, 20, now. i didn't put much stock in that. that is a negotiating tactic. they have a lot of respect for president trump as a negotiator.
they translated all of his books. they do a lot of things that are technical to try to iluence president trump. doesn't seem to be working. he is sticking to his main strategy, china will not pass america. d that six or seven times in public. stuart: you're discounting the idea of a small interim deal, basically said not going to happen? >> i'm quoting the president who says i would rather have the whole deal. i think we ought to stick with analyzing the president's words, his tweets, not pg attenon to unauthorized leaks from so-called advisors. that is not, you have a lot of influence, stuart. if you were to come out this morning who should be the next national security advisor to president trump, that might be part of the process. stuart: i don't think -- >> do you have a favorite choice yet? stuart: flattery is the mother's milk of television but you will not get to me like that, lad. >> the president watches. of retweets you.
stuart: i'm happy about that. hold on a second. there is more china trade news. american farmers getting some relief from china tariffs. explain this one. susan: goodwill gesture after president trump said he will delay tariffs on the $250 billion worth of chinese goods until october 15th. stuart: what is it now? susan: looks like they will be reprieved from the punitive tariffs of 30% according to some estimates. stuart: no. soybeans and pork, from america will not have these extra tariffs put on them by the chinese? >> isn't that what i said? stuart: that is the development. that is right up front, that's the headline. susan: yes. stuart: what do you make of that, michael? >> stuart, susan this, is about 10 of concessions chinese made. they like to do it in a public way to get credit for it. they opened up the financial sector for wholly owned american companies. they passed a new foreign investment law. they're expanding so-called shanghai free trade zone model
to another 10 cities in china. there is quite a long list. they're feeling pain. president trump is quite clear about this we're doing well for two reasons. one, china is getting more desperate to make a deal. secondly he thinks they are losing 3 million jobs. he said they're losing, this decoupling phenomenon that president trump hasn't caused but it is happening. he thinks we're doing well in the negotiations. what susan is reporting, it is another example of that. another bigger goodwill gesture to move the talks along. we're still nowhere near going back to what they basically agreed to in early may. stuart: okay. okay. but it seems like there is some progress here. the atmosphere seems to be improving. >> yes, that's true. stuart: we can say that, can we? >> that's true. stuart: michael pillsbury, thank you so much indeed. i will talk to you later about the national security advisor. thank you, michael. more on this, back to the
government crackdown on vaping. the journal reporting that juul, big vaping company of course, may push back against the government's proposed ban on flavored e-cigs. grady trimble has been following this one for us. you tell us what is juul's argument? reporter: well, juul originally said it would support this ban on non-tobacco flared e-cigarettes. that would include the fruity ones like mango but ones like mint and menthol. there are reports there is internal debate behind the scenes at juul maybe pushing back, trying to keep the mint and menthol flavors on the market and the reason for that, those are the ones similar to cigarette flavors, menthol cigarettes. the argument is, the foal, if we want to switch smokers from tobacco products to our vaping products we need to offer them these types of flavors, mint and menthol. there is some business motivation behind this too, stuart. juul says or it is reported that 80% of its sales are from these
flavored products. keeping mint, one of its most popular flavors out there for people to purchase, obviously is incentive to push for that. stuart: i can see that. grady, thank you very much indeed, good stuff. altria which has a big chunk of juul is down, but still yields 7 1/2% in dividend payments. we'll ask the health and human services people about this next hour. i want to know, i'm going to make, i'm going to make a suggestion, the best way to regulate this stuff, the best way to regulate vaping, surely require a doctor's prescription for a vaping device. i know it is draconian, i know it is extreme but i will propose it. next we have one of president trump's republican challengers on the show, former south carolina governor and congressman, mark sanford, not happy with the state of the republican party. he said they have lost their way. more "varney" after this. ♪
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stuart: it has been like this all morning. a very modest gain for the dow industrials. 40 points higher at the moment. 120 odd points away from all-time record high. now this. not just democrats has to worry about next year. several republicans are challenging him in the primary. one of them is mark sanford, former south carolina governor and congressman and he joins us now. governor, you say that the republicans have lost their way but look, under president trump we have tax cuts, prosperity, and a booming economy. isn't that what republican want? >> well as you well know, stuart, in essence you can buy growth. you can buy growth in a company,
you can buy growth in a government. i would argue we bought some of our growth at great cost in terms of indebtedness. republicans have always stood for sound financial footing. i think we have lost our way given increases in spending we've seen of late, latery record deficits recorded and just talked about yesterday in the papers. stuart: is their your main point? is that the main point, we're going deeper and deeper into debt and it is trump's fault in part and you don't like it? >> yeah. that's the central, i lay it out on my website, marksanford.com. what i say, the central message of this campaign we've got to do something about debt, deficit, government spending e we're at a tipping point. i honestly believe that. stuart: look, we've got a deficit this year of approximately, almost a trillion dollars. and it is growing. >> yes, sir. stuart: it has been growing for a long, long time and nothing happens. i mean there is no, at the
moment, i don't see a downside. not like a sudden crash of some sort. like suddenly banks run out of money. it is not like that. it is not an immediate problem, is it? >> well, i respectfully disagree in that, it is an immediate problem. as we all know whether on a business's financial statement or in a family's budget, there is a tipping point. i would argue that we're at that tipping point, because we have never run what is projected which is trillion plus dollar deficit over the next 10 years in a peacetime relatively benign economic environment which is the case right now. we've never had this level of indebtedness in peacetime which is where we are right now. obviously the spending that drive both. so what i would respectfully submit, that we are at a tipping point. the numbers are in fact alarming. you could come up with a lot of different bites at the apple. look at the length of this economic expansion to your
point. it is double the length of any other expansion in terms of the average since world war ii. and when things begin to turn down, it is going to put acute pressure on the financial picture of our country. stuart: okay. >> historically, just one quick point, historically, as we've gone through downturns as we do on cyclical basis it has been a five and five rule. the fed reduced rates five points, combating recession. the federal government level we have seen deficits spiral up five percentage points up with fiscal policy right now we do not have the tools in the tool kit where we are on both fronts, trillion dollar deficits, where the fed is. i think we're at tinderbox point. i think we're at very vulnerable spot. stuart: you listen to the democrat debate. you know what democrat policies are. you know they would expand the deficit like you wouldn't believe. are you worried about criticizing president trump and republicans and allowing the democrat to run that deficit up
to the sky? >> no. i would agree with you. i sent out a tweet last night. i don't send many tweets. this is crazy. a debate of more versus more, i totally agree with you. what i would say, there are a lot of sports teams playing tonight in south carolina and they scrimmage this week. they are made stronger because they scrimmage. i think there is value within the republican party. i think we're strong as a party, consequence of debate on spending. stuart: let me leave it here. you will make a point, not necessarily going to win. mark sanford, we appreciate it. >> pleasure. thank you. stuart: got a new tweet coming from the president. i will read it for you. illegal immigration cost the u.s. over $300 billion a year. there is no reason for this and things are being set in motion to have this number come way down. democrats could end loopholes and it will be a whole lot easier and faster. but it will all happen anyway.
very stupid to negotiate a trade deal and illegal immigration, tremendous cost and burden to our country. they are both coming along very well and some day in the not-too-distant future america will see a positive change. remember, america first. here is what we have coming up for you, last night on the debate stage, bernie sanders called climate change a catastrophic crisis. elizabeth warren said it's a threat to every living thing. they will not like our next guest about what he has to say about green energy. it is not really green. sad news to report, rocker eddie money has died. best known for songs, "two tickets to paradise" and, "take me home tonight." he was diagnosed with stage 4 lung cancer. he was 70. ♪
debate. there was some talk about climate change though. you better watch this. >> we will address the catastrophic crisis of climate change and transform our energy system away from fossil fuel. >> i refuse toostpone any longer taking on climate change and leading the world in taking on climate change. >> we need to work on every front on climate change. it is the threat to every living thing on this planet. we are running out of time. every time the scientists go back they say we have less and less time than we thought we had. stuart: i think you get the point. daniel turner is with us, president of power the future. welcome back, daniel. good to see you. >> great to see you. stuart: what is this about green energy not being green. explain yourself. >> it is not. this is business show. i'm giving my first stock tip, right? if you want to buy green energy, believe in green energy, start buying fossil fuels and coal.
the amount of fossil fuels requires to make green energy, wind turbines, hundreds of tons of steel. hundreds of tons of cement to anchor them in place. that all requires a lot, a lot of coal. same with solar panels require rare earths moving equipment. that is katrina. ton of fossil fuels. green energy is made using green energy is a myth. it requires a tremendous amount of fossil fuels. stuart: that is a little thin. that is a little thin. it is. now you head? >> power of the future. advocate for energy workers. stuart: are you fossil fuels guy? >> absolutely this powers our entire country, powers the world, i don't oppose green energy. i think the technology is fascinating. it has real promise for us to give this idea that windmills and solar panels can generate themselves, it doesn't happen. stuart: they can't generate the kind of energy that we require. >> nor can a factory.
show me a wind turbine factory runs on wind turbines? there isn't one. they run on conventional energy. if we go green, you need awful lot of fossil fuels. stuart: i join you on this one. in new york city, school students will be ad how to drop class to attend a climate protest. what do you make of that? >> this is shameful. the reason why our kids are buying into a lot of this myth of the climate crisis and climate change because they don't have a strong foundation in physics, in science and photosynthesis. it was just a couple weeks ago we were talking about how the amazon or the lungs of the earth. anyone who knows the slightest bit about buy echemistry and photosynthesis. that is fraudulent statement. kids are buying into this stuff. why don't we keep our kids in class, teach them about science, have them protest. stuart: if let them get out, they will take any excuse to get out of class. daniel turner. thank you very much. >> thank you. stuart: one thing that came out of the debate last night all
democrat candidates in varying degrees, this is my opinion, are essentially socialists f one of them wins the presidency, you really ought to be worried about your money, your job, you retirement. my take on that. plus charles payne coming up. actress felicity huffman will be the first parent sentenced in the college admissions scandal. we'll have those details for you coming up shortly. if you want to live in the happiest place on earth, now is your chance. select properties at disney world are for sale. they don't come cheap. of course this being the close to the 11:00 hour. we'll tell you how much they're going for. that will be in the third hour of "varney." ♪ ♪
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it's clear that all the frontrunners are in varying degrees socialists. that means worry about your job, worry about your income, worry about your retirement. biden, warren, sanders, the top three, all would raise taxes. that means all would [ inaudible ] the job boom president trump's tax cuts created and it threatens your income, of course. senator warren tacitly admitted taxes on the middle class will go up. this that's a hit to your take-home pay. your retirement money, watch out. bernie sanders attacks wealth accumulation even though he's made a few million himself. he doesn't like you putting money aside for your golden years. senator warren's plan to socialize big business would hurt stock prices. that's america's primary form of retirement savings, the stock market. it would take a hit. where's the moderate joe biden? there's nothing moderate about building on obamacare. there's nothing moderate about
his green policy. he just extends the time we're allowed to use fossil fuels. and he says this. in houston, texas, america's energy capital. hardly a word last night about the stellar economy. it barely got a mention. that is ridiculous. we have growth and prosperity under president trump and none of the candidates had anything to say about keeping the gravy train rolling. they would reverse it. they would kill it. that's why a democrat win should make you nervous about your job, your income and your retirement. the third hour of "varney & company" is about to begin. stuart: we better bring in charles payne, who will pass judgment on what i just had to say. he's the host of "making money" on this network. here's my premise. you heard it loud and clear. if a democrat wins the oval office, worry about your job,
money and retirement. what say you? >> i give your delivery b-plus. i give the statement a-plus. stuart: what's wrong with my delivery? what have you got against br british accent sns. >> that gives you the plus part. i listened and listened and listened and hoped and hoped and hoped i would hear something about the ability of individuals to seek and gain prosperity in this country. essentially they are just talking about flattening out this nation and divvying up the spoils. you got to find money for these projects. you can't get it from taxing your normal stuff so you do have to go after 401(k)s. they are going to have to go after 401(k)s. they will have to go after land. they will have to go after the value that they can't tax on a day-to-day basis. i'm telling you, you're right, i think your piece is understated, to be honest with you, particularly now that the whole party has been pushed so far left. stuart: my biggest worry is
senator warren and her accountable capitalism act. that's her basic proposal. she would essentially socialize american business and dictate where the profits go, not just to shareholders but to the community, all the rest of it. that would take stock prices down, in my opinion. >> it would. i will say this, though. i am concerned about this whole notion of conscious capitalism and how it's caught fire. it really has. whether they are giving this lip service or not, of course the business roundtable saying stake holde holders' wants, 145 ceos trying to get elected officials to act on guns. they are taking -- this movement is already getting into boardrooms so it's a worrisome thing. ultimately, the bottom line of a private company belong to the public and that's worrisome, obviously, because then it will be a free-for-all. it won't be profits, at a
certain point there won't be profits to share anymore. stuart: are we going to get an interim trade deal? we have confusing statements from officials in charge and to some degree, from president trump as well, and i think if we were going to get an interim deal this market would be way up more than 60 points on the dow. where you coming from on this? >> my theory is the stock market has sniffed out its trade deal or interim deal on august 28th. august 28th, the dow jones industrial average was off 100 points plus. it was plummeting. it was ready to break key support points. the u.s. trade representative came out and put in the public record those tariffs. it was official. you would think okay, we are going to go down a lot more, particularly with the labor day weekend coming up. we turned around, made a 400 point reversal to the upside. the more i thought about it, the more i'm thinking wall street now knows that everything has been tariffed on both sides. that this war only gets more painful and can only get worse from here and maybe that's where it had to go. maybe everyone's back had to go against the wall for them to start coming back together.
if you watch the stocks that have done well, if you watch this market, over that period of time, i think wall street, not investors, not talking heads, but the market somehow sniffed out on that day with that 400 point reversal that we were actually getting closer to a deal rather than further away. stuart: that doesn't mean that the president will make an interim small scale deal. because he might turn around and say no, i'm hardcore guy, i'm staying with a hard line process here, no interim deal. he could say that. >> he could obviously say that, but remember, we had an agreement, we sent it to china, they sent it back, it was all marked up like one of my high school term papers, then on tuesday, i think it was the south china morning post said that china's ready to do a deal in november if we just accept 80% of it. then the "wall street journal" followed up with the idea of maybe, you know, a deal, separate the items. it's a huge gargantuan deal.
it really is. president trump is going to have to think long and hard about do i secure a big chunk of this thing, 95% perhaps of what i'm demanding, then put in place tough, tough parameters so that we can get the rest of the deal done. it's going to be tough to turn that down from president trump's point of view. i think his leverage is significant now. i think china's economy is worse than we thought. one of the things that happened this week no one talked about, one of the largest insurance companies just sold some key real estate assets here, the essex house and things like that. remember when japan bought all of america's -- all this big property, rockefeller center, pebble beach. it was when they had to start selling it back because people figured out that whole economic miracle is over. same thing is happening in china. i got to tell you, it's up to president trump but i think he's in a great position right now to cut a strong deal that would have 90% to 95% of what he wants
and keep the pressure on what he doesn't get right now. stuart: market went up when you said that. charles payne, market mover. you don't want tb a market mover. charles, thanks very much. we will see you when? >> 2:00. i will go further into this and maybe talk about records by then. who knows? stuart: who knows. >> we have been rallying pretty strong into the close the last few sessions. stuart: we are 100 points away from the record on the dow at the moment. that's nothing in this market. i will watch you at 2:00. check out big tech, please. all the big tech companies. the point here is that the europeans want to be the regulator of big american companies. the european union antitrust guys, they just imposed -- may, i should say, may impose new rules that would ensure that companies that collect data don't misuse it. not sure how they are going to do that. that's what they are threatening. those stocks are up, look at that. google up three bucks at $1238. focus on it. they have been subpoenaed,
google, for details related to their advertising business. what's this all about? ashley: the whole issue is are they acting in an anti-competitive manner and if they have competition, do they just turn around and buy the competition. is that the way they do it. they want to know what the business rationale is. should you have to tell people why you are doing something in business? it's under the umbrella topic of anti-competitive behavior, antitrust behavior, and that's why they are being called on to provide details. they have 77% of the ad tech sector. stuart: deirdre, are they asking to read executive e-mails? deirdre: they sure are, similar tone over here. bipartisan lawmakers want info from the four horsemen of the apocalypse, if you listen to some tech analysts. google, amazon, facebook, apple, say they are asking for e-mails. they want to parse through these e-mails, these companies have until october 14th to hand over
these reams of communication. they are looking for the same kind of information that ashley just went through. none of these companies, because we did reach out, have actually commented. in the past they have all said they will cooperate, then in the past they all underlined that they provide good value. stuart: i think what this story tells me is this is getting real serious. when you start demanding tim cook's e-mails and the other top guys, that's serious stuff. deirdre: they are looking for anti-competitive evidence. it's all the same theme, both sides of the atlantic. stuart: the stock is at $1238, up three bucks today. ashley: it actually affects the business model. that's been the key from day one. once that happens, you might -- deirdre: i also think these guys have great lawyers. they can defend themselves. we'll see what happens. stuart: deirdre, thank you. better check out apple. it got a downgrade at goldman sachs. that's basically a lower price target. goldman thinks apple is going to go down to $165. that loss, by the way, causes
about a 40 point drop on the dow industrials. apple is at $219. democrat presidential candidate beto o'rourke saying he will take away, confiscate your ar-15 and ak-47. he proposed a mandatory buy-back of assault weapons. pretty strong stuff. what does second amendment supporter tomi lahren say about that? and mr. new york himself, carl icahn, skipping town and heading to florida. no, it's not just about the weather. taxes are at the root of this. the "wall street journal" guy james freeman on it coming up next. first, we have to deal with andrew yang. he wants to select ten families and give them a thousand bucks a month for a year. he calls it a freedom dividend. kennedy is next. she's all about freedom. i bet she's not on board with this one. stay with us. third hour of "varney & company" just getting started. ♪ see that's funny, i thought you traded options.
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stuart: a california bill allowing college athletes to be paid is on its way to governor newsom's desk. deirdre: we don't know if he will sign it. what i would say is california college students could hire agents and sign endorsement deals so this is basically breaking down all the layers between being an amateur athlete, being a professional athlete. professional potential confrontation with the ncaa that could jeopardize the athletic futures of powerhouse programs usc, ucla and stanford. this will be a fight. we'll see what he does with it. stuart: kennedy is with us. we will get to her in a moment. let's get to felicity huffman. she will be sentenced today for her role in the admissions scandal. details? ashley: the first parent up. listen, prosecutors want one month in prison, and a $20,000
fine. huh-uh, say her lawyers. how about no jail time, one year of probation, 250 hours of community service and oh, yes, still pay the $20,000 fine. it's going to be interesting to see whether she gets any jail time. that's the big question in all of this. stuart: she only put in $15,000. ashley: correct. others -- stuart: $500,000. somebody will be made an example of. ashley: someone. maybe not felicity huffman. stuart: lastght's democrat debate, listen to what andrew yang had to say about free money, giving it away. roll tape. >> that's why i'm going to do something unprecedented tonight. my campaign will now give a freedom dividend of $1,000 a month for an entire year to ten american families, someone watching this at home right now. stuart: all right. kennedy is with us. lover of freedom. you've got to love this. you are a libertarian. people would be at liberty to spend $1,000 of somebody else's money at will. >> how great would an extra thousand bucks a month be? it's not free, if andrew yang
wants to do that, voluntarily, if he wants to go ahead and give people money, hoping that somehow, this gimmick secures him another spot in the next debate, i don't have a problem with that at all. i love creative electioneering. that's fine. the idea of universal basic income is really only acceptable if you are getting rid of every other entitlement and every other government program. essentially, if you are telling people we trust you to spend this money on your own savings and your own health care, that's one thing and there are libertarians like milton friedman who made somewhat of an argument for that. but that's not what's happening here. ubi in this case somehow augments and is coupled with things like medicare for all. stuart: exactly. >> it's baked into the green new deal along with federal jobs. stuart: it's a fair point, isn't it. give you this money but we take away all other give-aways. >> yes. stuart: help yourself. get on with it. it's not like that. >> no, not at all. in fact, it's taxing and taking
from hard-working people and forcing them to give up their money and we really should be working toward enhancing creativity and the choice of the individual. stuart: buying votes as well, but that's another story. there was a lot of shouting, confusion, talking on top of each other, almost chaos in the debate. have a look at this. roll tape, please. >> you just said two minutes ago they would have to buy in. you said they would have to buy in. >> it's -- >> are you forgetting what you said a minute ago? are you forgetting already what you said just two minutes ago? you're forgetting that. >> everyone but the grandmother who has no money you are automatically enrolled. >> i'm fulfilling the legacy of barack obama and you're not. >> that will be a surprise to him. >> this is why presidential debates are becoming unwatchable. this reminds everybody of what they cannot stand about washington. scoring points against each other, poking at each other and
telling each other that my plan, your plan. look, we all -- >> that's called a democratic primary election. stuart: that was a mess. what i came away with from that was julian castro was harsh to joe biden and will be condemned for it. >> i think he was overly harsh but then again, he's not polling very well. the reason he's at the periphery of the dais is because his poll numbers are much lower than the peloton in the middle. that's why biden, bernie and elizabeth warren stood in the middle of the entire gaggle because they've got higher poll numbers and julian castro is really just trying to stay in the race. at this point, it's a rush with desperation for candidates like him and beto o'rourke. amy klobuchar is sort of in the same boat but i think she took a more moderate approach, and she sort of surgically took things apart she disagreed with. you have to have a strong point of view.
she's one of the few moderates left on the stage. and i think for that, she did a better job. stuart: i admire your acerbic wit. >> oh, stuart varney. stuart: yeah, baby. i'll be looking for it tonight, i believe. >> it is not tonight. no. it's too much show for five days a week. we are on monday through thursday, 9:00 p.m. eastern, 6:00 in the west. stuart: you get friday night off. all right. all right. i got that. >> fried chicken friday. stuart: thanks. disney fans, this one is for you. do you love disney so much you would want to live there? you can, you know. you can live in disneyworld, a property thereon. it will cost you. how much? deirdre: $2 million. i will fill you in on the details. stuart: back after this. ♪ fact is, every insurance company hopes you drive safely.
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but shouldn't somebody this is be listening?pression. so. let's talk. we're built for hearing what's important to you, one to one. edward jones. it's time for investing to feel individual. at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses
go beyond the expected, to do the extraordinary. take your business beyond. stuart: let's get to the disney story. you can, if you wish, purchase a property on disneyworld, within the area. deirdre: exactly. you go into disneyworld but you would have to pass through two separate checkpoints to get to
golden oaks basically community. stuart: i'm not surrounded by tourists. deirdre: certainly not. the basement level basically, the smallest amount you can pay for one of these homes is $2 million. it goes up from there. they don't actually give you a quote on the largest home which is 20,000 square feet. essentially, it is a completely luxurious experience. they also have a partnership with the four seasons. they have lots of vip services. you enjoy vip access, of course, to the resort. there's about 300 homes in eight sections, i think something like eight approved architects. you could have an italian villa style, a spanish style and be close to disney, for people who are true fans. this is as good as it gets. ashley: wonder if you can rent them. they would be popular rentals. stuart: depending on the price. we got it. thank you. let's move on. carl icahn, i call him mr.
new york, he's leaving town. where do you think he's going? i will tell you. the green pastures of low-tax florida, of course. we have more on taxes for you. president trump says sometime in the next year, he will announce a big tax cut for middle income people. james freeman, "ll street journal" guy on that and he is next. ♪ [upbeat action music] ♪
at national, i can lose the wait...and keep it off. looking good, patrick. i know. (vo) go national. go like a pro. stuart: big board shows a gain of 73 points. that's about one quarter of 1%. now wait a second. news on economic projection from the new york fed. deirdre: they say growth in the u.s. is going to be slightly stronger than they previously said. you will notice, though, the numbers are relatively low. for the third quarter, new york fed says the u.s. economy will grow at 1.59%. that is up from 1.55%. if you look at the fourth quarter, new york fed says u.s. declined 1.1%, up from 1.08%. we have the big fed meeting 17th and 18th, next week. ashley: it's definitely anemic.
deirdre: better than nothing. ashley: the eurozone would love to have those kind of numbers. we have had stronger. stuart: larry kudlow talks about a bounce back to the 3% level. 1.59% does not make it. not much good. dow still up 54. however, now this one. this caught my attention today. carl icahn, i call him mr. new york, he's leaving the city and he's going to, of course, florida. miami, to be precise. james freeman, "wall street journal" editorial board man, is with us now. i think, look, we have seen this exodus. i think it picks up steam. i think it's going to be a real flood pretty soon. >> yeah. you don't see any reason why people wouldn't continue to look at this tax differential. florida, no state income tax. new york, 9% at the top end. pretty easy math. you see the same problem in new jersey and connecticut. very high tax states, no government reform and people are going to keep moving to low-tax
jurisdictions. stuart: the other thing, it's not just income tax. there is no estate tax. no state estate tax in florida. a man like icahn, with $17 billion, he goes down there and avoids the estate tax. he's probably got a trust fund to avoid the feds' estate tax as well. >> the other warning imbedded in here besides the non-competitive tax rates in this part of the country, here's another financier leaving. you don't have to be on wall street, you don't have to be in this city to engage in finance. we have seen firms that have been here for decades moving to places like nashville. every year it gets easier to do finance somewhere other than lower manhattan or midtown. i think it's another reason you wonder what it's going to take before politicians in blue states start saying we've got to reform, we've got to compete. stuart: got to cut taxes. they will never say it. you know it. >> they need to do it. whether or not they say it,
they've got to say it. unless they want to see high income successful people continue to look for the exits. stuart: president trump is talking about an announcement of a big middle income tax cut over the next year but that's not going to happen in the next year. he's using that as a teaser for the election. this is what you get if you elect me. >> fair enough to let people know as they prepare to vote what the choice is and what they can expect in a second term from president trump versus a first term for one of his opponents. i do think one thing he can do right now, this would help middle income people, is administratively index the capital gains tax to inflation. there's a myth that this only affects rich people. i think it's a related myth that only rich people own stocks, own assets. this helps lots of americans. he doesn't need to go through congress. he's got a very strong case and a supreme court precedent that helps him to say the treasury can say right now without having to go to congress that we're not
going to tax phony gains that are simply based on inflation. stuart: i would love to see that. indexing capital gains. that would be huge. huge. i've got to ask you about xi jinping. china's leader. sto stuck in a big battle with president trump. you say, i think you're saying xi jinping would be crazy to turn down any kind of deal that he can get from mr. trump short-term. why? >> clearly, these tariffs along with burdening, we have seen the burden on consumers and on corporate investment here in the u.s. they are making china less competitive. you see companies looking to move to places like vietnam. you also see companies looking to automate instead of using chinese labor. this is putting pressure on china. i think what you saw in that democratic debate last night, it was very interesting when the moderators were asking the different candidates about the trump tariff approach with china, you saw a lot of attacks
on trump personally, you saw a lot of griping about the way he's going about it. you didn't see a lot of people saying i'm taking the tariffs off. you saw them saying we ought to use our leverage in terms of access to the u.s. market. in fact, some of them want to bring in new issues. they don't want to just punish china on intellectual property theft or some of these trade issues, they want to use it as a tool to force environmental changes. i think xi jinping, if he's saying i'm going to wait out trump, i think he's going to be disappointed if he thinks all these tariffs are going away january 20th, 2021. stuart: president trump is going to stick to the hard line because he's negotiating in public. that's what he's doing. >> right. i think he's essentially won the argument that china has to be confronted with unfair business practices. we obviously argue about the tariff fights in other parts of the world. i wish he would make peace with more of our friends. but on the china issue, i think he's essentially persuaded people in this country to focus on it, to acknowledge the intellectual property theft is a
problem, to acknowledge we need to reset the relationship there. stuart: i think you're right. james freeman, thank you very much, sir. now, dow is up 55 points, 50 points. been there all morning. got that. how about a virtual wall for the border? forget bricks and mortar. forget fences. a virtual company is putting some money behind it. tell me more. deirdre: so the company is helping the government -- stuart: who is that guy on the screen? deirdre: palmer lucky, the founder. most people in the tech community know him for founding oculus vr which was very successful. facebook bought it for $2 billion. his new company is called andriol, a reference to "lord of the rings." quite a lot of money has been invested in this. peter thiel's founders found -- stuart: okay. ay. who wants airtual wall? what is it? deirdre: it's using big data. stuart: what's that got to do with a wall?
deirdre: it will help track who's coming in and out. this is very controversial for the tech community to work with the u.s. government. microsoft, amazon and google have all had to cancel contracts with the government because of employee pressure. stuart: i'm sorry, i don't get it. deirdre: you have facial recognition. they would put your image in a data base, they would track you if you were coming from somewhere that they didn't want you coming in from. stuart: they don't want anybody coming in across the border without a visa or permit. deirdre: whether or not we want it, it's happening. there you go. this young man has created a company to prevent it from happening. stuart: i'm just confused. since when is a virtual wall using data going to stop immigrants coming across the border? deirdre: with facial recognition and a couple other things, couple other tools that are a little bit nsa. listen, it's happening. stuart: nice try, sunshine. build me a wall, please. a big, tall wall. deirdre: our whole lives are like this.
this is running everything. stuart: i got a visa before i came in here. i was checked by the police. i was checked by the immigration authorities. i had to line up, pay my fees, go to the doctors several times. deirdre: ever see "minority report"? they scan the retina? that's kind of where we're going. stuart: yeah, but that doesn't keep people from crossing the border illegally. deirdre: it helps you identify. you need to call palmer lucky. invite him on. stuart: okay. let's move on, shall we? i didn't mean to crush the messenger. deirdre: no, no, no. stuart: big loss for big brother in the formerly golden state. not sure i understand this one. california says no to facial recognition software. tell me more about that. ashley: two reasons. privacy and the fact that it may not be accurate. you are unfairly targeting someone whose face resembles someone who is maybe not such a great member of society. they are going to ban the use of facial recognition software within those body cameras that police have both on the state
and local level. also, you are not allowed to put that video they do record through facial recognition software. it does not, though, include the feds, the fbi. they can continue to use it. you know, they still have facial recognition in stationary cameras in california and that doesn't change. the governor signs this bill by middle of next month, it will go into effect for three years. until they get the technology to work better, so there is not so much a possibility of a privacy intrusion. good luck with that. also, the fact that mistakes can happen on these things and people get unfairly targeted. stuart: wait until the day comes when there are no mistakes at all. ashley: they are working on it. stuart: they know everything about every person as soon as they see them. watch out. not happy about that one. we have to check a couple markets for you. bitcoin at $10,300 a coin. the price of oil i think is $55 a barrel. not much change. $54.79. the average price for a gallon of regular gas is $2.57.
democrat presidential candidate beto o'rourke declaring he will take away, he will confiscate your ar-15 and ak-47. he proposed mandatory buy-back of assault weapons. pretty strong stuff. i wonder how the second amendment supporter will feel about that one. we will certainly ask one. tomi lahren is next. ♪
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this. for that we go to tomi lahren, host of fox nation's final thoughts. that is confiscation of guns, isn't it? >> it absolutely is but i do have to give beto, real name robert, credit because at least he's being transparent. for so long democrats have said we're not going to take your guns, we just want common sense gun legislation. at least beto is coming out saying yes, i want to take your guns. at least you are being honest. i think the rest will follow suit. that just shows how far left the democratic party has gone. stuart: did you notice the cheers that he got when he said that? we will take away your ar-15? i mean, they were cheering. >> i assume it was a democrat audience, because they had to be held captive for three hours in that room so i would assume most of them were on that band wagon already. i think you are going to see a lot of democrats who live in rural areas in this country say you know what, that's too far, that's not for me. again, they are going to push them right on over to the trump side. stuart: you think it's too far
for subject uurbanites? i know people say we've just got to get rid of them. i know it's impractical and unconstitutional, but that's where sentiment is. in a large portion of america. >> we need to do better at educating americans on what our gun rights are about. i would also remind those that might not have a use for a gun or don't feel they have a use for a gun, many americans do. many americans don't live in the suburbs who are far away from where police can respond and so that's why that self-defense is so important. i would also caution people, once you start giving away your rights because you feel you don't need them, you are never going to get them back. be careful which ones you are willing to give up. stuart: fair enough. that's right. you can never get them back. give them up, they are gone forever. now, on your show on fox nation, it's called no interruption, you spoke to a guest about gun control. i will play a clip for our audience. they can all see a little bit of this. roll it, please. >> that's the systemic issue that more and more, we are afraid of guns, the less we will understand them, the less educated we will come about life-saving equipment and it's only going to make the issue
worse. for a guy like me, i'm a public figure, i live on a bunch of acres in texas. if i call police officers, they are 20 minutes out. that's why i sleep with night vision and an ar, because i get threats, i have got that from the progressive side, from isis across the years. stuart: who is that gentleman? >> that is matt best, lot of people know him from youtube. he's one of the co-owners of a veteran coffee company. he fought for our country overseas and he knows the value of that firearm and he knows that's how he's going to protect his family. he lives in rural texas. that is his first line of defense. you can't depend on the government to protect you at all times. that's what so many americans forget. they put their safety and security in the hands of the government. the government is going to fail you. stuart: the government, what i like about america is that we are the only country in the world where armed citizens are allowed. just in case the government gets out of line. that makes america unique. it's one of the things that really appeals to me about america. you never hear about that. >> well, that's what second amendment activists and people
that are for the second amendment rights remind people over and over and over again. this is your right, your right to protect and defend yourself and your family and all the things the democrats want to put in place, my goodness, if they want to open our borders, you better be sure people in texas, people in south dakota, people in the middle of this country will be armed and ready because we have to have a means to defend ourselves from who knows who's coming in? that's the thing. we don't know. we have to be able to protect ourselves. stuart: you can see tomi get more of this, if you wish, on her fox nation show called no interruptions. it is indeed on fox nation. you are all right. thank you for joining us. see you soon. check that market. it's been like this all day. what are we now, 57 points -- put the camera on me. thank you very much. we are up 59 points, 27,241. next one, juul. they may fight the upcoming ban on flavored e-gs. they reportedly want menthol and mint flavors to be exempt from any ban. we are going to talk to hhs about this. here's the question.
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stuart: vaping is under fire. you got that. the administration's considering a flavored e-cig ban. joining us now, assistant secretary for health. can i just throw something at you? forgive me for doing this. the real solution here is to make vaping devices only available through prescription. that would stop a lot of the problems. what do you think? >> well, our approach is clear and that is we are finalizing our guidance policy to remove flavored e-cigarettes from the market. that includes menthol and mint and bubblegum and mango, but it does not include tobacco flavored e-cigarettes. stuart: well, juul is pushing back on you, now suggesting that menthol and mint might be kept because that's the best way of getting smokers off smoking and into vaping. >> look, let me tell you the true facts here. the facts are that over five
million youth are now using e-cigarettes. very addictive nicotine products that are very harmful to their health. from 2018, there was 20% of high schoolers, now up to 28% of high schoolers and we know that flavors like mint and menthol are the primary draw for these youth, these children, to get hooked on nicotine products. we are preserving the tobacco products, tobacco flavored products, because these are primarily used by the eight million adults who use e-cigarettes and again, for many of them, this may be an alternative to combustible tobacco. that's the way we're doing that. stuart: understandable position, sir. i got it entirely, but look, if you have any vaping product with nicotine in it, kids will get it and kids will be hooked on nicotine before they even start smoking cigarettes. >> well, the primary draw for the youth according to our data are really the flavored products. we remove the flavored products
from the market, from the internet, from anyplace that children can get it, this will have a profound effect on the use patterns because they won't be drawn to it in the future and won't, once they start the cycle, won't get hooked on the nicotine that's very highly addictive drug. stuart: could you have black market people doctoring a legitimate vaping device which contains nicotine and is for adults? you could get people doctoring them up and putting different stuff in, couldn't you? >> there is all kinds of possibilities about what people can be doing. but when we eliminate the main market channels, the bricks and mortar stores, the internet, the vaping shops, all the major distribution channels where we know millions of children get their products from now, we are going to make a huge impact on public health in this country and save millions of children from a lifetime of addiction. stuart: yes, sir. i think you're right. i'm not arguing with you, sir. i'm very much in favor of what you're doing. i just want to come up with alternative arguments. >> absolutely. absolutely. stuart: i want to bring this to your attention which you know.
hhs just announced it's going to move ahead with asking for money back from those people who sponsored illegals. can you explain what this is all about, sir? >> no, i really can't explain what that is all about. but we are definitely going to be very forceful in our enforcement of this. we expect all of those who are marketing these types of electronic devices with flavors to have tm off the market. stuart: no, no, this is about illegal immigrants, i believe. >> tell me the question again? i'm sorry. stuart: okay. hhs, your agency, has just announced that you are going to go after the sponsors of illegals. i don't know how that works. but the sponsors of illegals, and get money back off of them. >> so not going to comment about that right here. we are talking about e-cigarettes and the public health of the children that we're going to save from these highly addictive drugs. stuart: sorry, i didn't mean to spring that on you, sir.
i really didn't. >> hhs is a very big agency. it's a veryig agency. stuart: it just came at us. i thought we might get a comment. if you're not familiar with it, we understand entirely. thank you very much for being with us, sir. i'm very much with you on this vaping thing. i didn't mean to press you as if you were in the wrong direction here. forgive me. >> we are all good. i'm really very happy to have the opportunity to come on the show and explain our position and improve the public health of children. stuart: excellent. come on back, sir. thank you, sir. appreciate it. thank you. i want everybody to check crowd fare, a web security company. it just opened for trading. this is an initial public offering, ipo. initial share price was $15. it's gone now to $18.98. that is a gain of 26%. not bad. more "varney" after this. ♪ ♪
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like me-ow. stuart: all right. i see facebook stock virtually unchanged ever so slightly but there is news on libra, you know that digital currency. what have we got ash? ashley: france and germany blocking it. they do not want to take it on. stuart: really? ashley: french finance minister said in the past, this is the reasoning, risks are too high and trust and faith in facebook too low to allow the currency to exist on their soil. >> what we remember none of these tech companies are homegrown to europe. so they don't have the bragging origination rights the u.s. has. there is more after predisposition to not welcome, not saying that facebook hasn't stepped in quite a few times especially with cambridge analytica, the eu will be
harsher on american tech companies than americans will be. stuart: they don't have a amazon, they don't have a google. they don't have a facebook. they don't have a microsoft. ashley: they say their currency, money, sovereignty is under threat by use of libra. >> which is odd in a way, i have been critical everybody else has been of facebook's missteps, the company set up a subsidiary in switzerland and created libra. they have been trying to structure it correctly. however france and germany not having it. stuart: a quick look at smile direct. that was the ipo yesterday. it dropped 28% on day one. it bounced back 10% today. 1847 is your now on smile direct. cloud fair going public today. cloud flair, cloud flair, now doing very well indeed, a web security company. they're up 27%. here you have a ipo dog
extremely well. market, we're up about 40 or 50 points all day long. we're still about 130 points from the all-time high. but we are still higher this friday lunchtime. time's up. neil, it's yours. neil: thank you very much, stuart. we're looking at the 8th straight day of gains if it continues for the dow. 130 point away from record highs reached in the dow middle of july. we could be revisit them, at very least teasing them as we've had all day. we'll keep an eye. democrats are saying president is losing on trade but is an interim deal better than no deal at all? the president promising a substantial tax cut. in case you didn't hear, we're at record deficit. we have record deficit a trillion bucks with one more month in the fiscal year to go. whether we get something like that. there are a lot of hints and teases out of the