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

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book. "for the good of the game" catch major league baseball all-star game tonight on fox coverage starts at 7:30 eastern the game gets going at 8:00 p.m. eastern right on fox you don't want to miss it have a great day. go see us for the day, ""varney" " begins right now. well that strong jobs report really threw a wrench into the market all those people pouring back into the labor force, wages rising nicely why should the fed lower rates really sharply when the economy is doing just fine. you can be forgiven for thinking but investors want it all rate cuts of a china trade deal too and if they don't get it they will stamp their feet and look at this left-hand side of the screen down triple digits yesterday and down the best part of 100 points when things get started this morning, and the dow will be up 90-odd points, s&p down 10 and nasdac is down about a third of 1% sharp drop
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there. then we have climate change, oh, it will be front and center later today, alexandria ocasio-cortez and bernie sanders will introduce a resolution declaring a climate emergency, they demand a large scale mobilization to restore the climate for future generations. no details yet and we don't know how different this will be from the original green new deal, but it's sure to be a radical plan which will move the democrats even further to the left, and it will put climate policy right into the debates and the 2020 election. it's really great to be back. my thanks to david and ashley, really it's great to be back. david and ashley and all my colleagues for their hard work while i was away. we've got a big show for you this tuesday. "varney" & company is about to begin.
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>> a line drive off the top of the wall. >> there it is! >> fires the bat up, and he's your home run derby champion of 2019. stuart: new york mets rookie won the home run derby last night and he hit 57 home runs, with 23 coming in the final round. he's just the third rookie ever to win the home run derby. and then we have the women's soccer team well they're back from france after their fourth world cup victory democrats like aoc have already made it political talking about equal pay, and here is senate minority leader chuck schumer. roll tape. >> they make us really think about the future of women's sports. they make us grapple with the deep unfairness in how female
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athletes are treated and paid compared to may male counterpart s. how about the equal pay amendment that the house has passed how about we put it on the floor of the senate in the honor of the women's who won the world cup. how do we do that? stuart: i believe the team has been invited on to the floor of the house or the senate, i'm not sure which one but they've been invited and i believe they've accepted. why don't we bring in david avel la, i'm sure he has a thing or two to say about this. >> democrats look like they preempted the republicans. they preempted the president. they grabbed hold of the women's soccer team and using them as a weapon against trump. what do you say? >> women should be paid equally and fully for every job that they do. at the same time, when the economy is booming so well, and employers have to compete for employees, democrats are playing their, listening to their songs from the playlist from their
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greatest hits from the 1980s, there are far better ways of having government mandate of how wages are paid. if congress wants to take effective policies why don't we get an infrastructure bill passed why don't we get research and development donald why don't we do more for broadband giving men and women the tools to be more valuable for employers so they can demand higher wages. stuart: that was a brilliant political move on the part of chuck schumer co-opting the brilliant team, their demand for equal pay, and then sticking it to mitch mcconnell. that was a fine political move. >> well, if you're looking for political score, yes. if you're looking for things that actually work, which you can see this administration has worked on, whether it be the tax cuts which has helped stimulate the economy, whether it be making employers compete for employees by helping to bring regulations down, which has created more jobs which has gotten the best way to make sure wages go up is to have full
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employment which is where we almost are in many parts of the country, that's how you get wages going up. you can be a showman and chuck schumer, there's no camera. he hasn't enjoyed getting in front of but if you want to be effective at getting women's wages higher, there are far better ways to do it. stuart: today, aoc, alexandria ocasio-cortez are calling it a resolution that declares a climate emergency. the green new deal didn't get any traction earlier this year, didn't get any traction at all in the senate and how it's being regurgitated so to speak in the form of a resolution. again, i think that drags the democrats to the left, all over again. >> it cannot be said enough that the agenda of the democratic party is being driven by bernie sanders socialistic ideas. stuart: are you happy to see this? >> certainly in wanting to win elections but more importantly, for the future of the country
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because the country is not going to embrace that and if you look at where the 2020 election will be, one in suburban areas, the green new deal, which senator sanders and congresswoman cortez both support and are advocating for is very unpopular and you contrast that with the success this administration has had, whether it be with water infrastructure whether it be getting standards higher for water, whether it be working with mexico to clean-up waterway s so it's not as polluted whether it be bringing down the cost of energy, whether if it now being a major exporter of clean energy around the world now we export more than we import our energy it's helping americans pay less energy, let's have this discussion. stuart: okay, if climate change is part of the 2020 election who wins on climate change? >> republicans will because one we've delivered and two their ideas are so radical that a suburban voters and americans as a whole don't want to see that. stuart: we shall see. thank you very much, sir. let's get back to the market now
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because it's tuesday morning we'll be on the downside when we open up down about 113 odd points look at that nasdac down about 30 points. this follows the strong jobs report on friday, which i believe reduced hopes for a big rate cut in the immediate future market watcher eddie gabore is with us. you investors, you market people , you just want it all don't you? you want a 50 point cut in interest rates, you want to secure china trade deal. >> what's wrong with that? stuart: do you think the fed will cut rates this month? >> i do not. stuart: at all? >> i do not think they're going to. when you look at where the feds rhetoric has been from october when they said they were nowhere near neutral and then they went ahead and raised rates in december and all of a sudden switched gears and said we are at neutral and then in march they came out and said no rate hikes this year, and one next year, trying to predict two years which i thought was a mistake trying to go that far out so for them to switch gears again and cut rates when the
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economic numbers look good and they are just supposed to ignore the capital markets i think they will disappoint the stock market stuart: on thursday of last week because it was july 4, wednesday of last week, july 3, before the jobs numbers came out, confident ly predicted 50 basis point cut for the interest rates not going to happen at all. >> definitely not 50 basis points. the markets pricing in 25 basis points right now and my concern is if mr. powell does not deliver which i don't think he will i think he could have downside to the market in the short-term. stuart: when do we find out the rate cut deal? >> that would be end of july. stuart: end of this month. we don't find out until then? powell speaks today so we have tea leaf reading today. >> wednesday thursday testimony on capitol hill and we'll be parsing through the words to see if he leaves the door open to possibly holes on interest rates >> his message today will be doveish. i just don't think he will
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deliver with a rate cut this month. stuart: how much time do we spend reading federal reserve tea leaves? interpreting every single word he has? it never does any good does it? >> well? stuart: we never get it right do we? >> single biggest factor in moving markets in trillions of dollars in money around the world, the federal reserve. stuart: that is true. >> that is true and also, the side of the president as well. stuart: yes indeed very much so. eddie you say there because i want you 20 cover the market opening and you'd love to see the fed cut rates wouldn't you? >> absolutely. stuart: no you're not staying are you? >> i don't know, you tell me. >> [laughter] stuart: i'm sorry about that, eddie. check the big tech names, please what's been happening over the past week, while i've been away? >> money rotating out. stuart: microsoft did quite well money rotating out you think? >> uh-huh, yes. stuart: so it drove it up and now the money is coming? >> especially if we're unsure about interest rate cuts, yeah.
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stuart: well facebook is backup to 194, apple below 200, microsoft tolding at 136 and google is down about $6 as of this morning and how about pepsi , the frito lay division the snack division, lays, cheetos, doritos all did well the stock is up $0.94 at 133, how about futures? kind of the doldrums of summer and eddie says we're not going to get a rate cut this month and down goes the market see what you did? look at that we're down 117 now, and down 30 on the nasdac. the latest from hong kong. the extradition bill that sparked the protest is dead, that's her word " dead" and full detail coming up and a twist on the fake meat story, uptons naturals they make plant-based meat products suing mississippi over new law that would prevent them from using the word"meat"
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on their packaging. can't do that. the ceo is on the show to tell us more about this more "varney" after this. (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.
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stuart: the billionaire, tom sti re has this tweet. it's true. i'm running for president. okay. i thought he had withdrawn from it but apparently he's back in at it. >> the reason why you say he thought he withdrew is because of january he said he was going to do it and he went to iowa speaking at town halls so this is i guess a big deal an environmentalist who is johning the toms already two dozen. stuart: now is his big deal impeaching the president or climate change? >> there's a word for it need to impeach the president and already 8 million subscribers putting $50 million into this group over the past two years. stuart: former hedge fund manager and now a climate warrior, check futures, we're still down and heading south,
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down about 114 on the dow, we were down i think it was 115 yesterday, so its been a down week thus far. look at netflix please. record breaking debut for the third season of stranger things. did you watch? the third season? >> i've seen the first two. >> it's $1 billion franchise and it's helping everybody from coca cola and anything from the 80s paraphernalia. stuart: so i remember the 80s rather well. okay, so -- >> we were around. stuart: okay i'm not asking >> for some of it. stuart: netflix at 378 this morning up a couple of bucks there you have it and now i believe we have some special guests with us, is that correct? we haven't micked them up yet but we'll get them momentary ill it, we have i b m they've closed as you can see a landmark cushion of red hat. they've closed the deal, it's a $34 billion deal. >> largest ever for big blue.
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this is getting into data analytics, so very interesting acquisition. stuart: and ibm is back to $140 a share, and late last year, i think they dipped to below 120, and they do not at this point have a leadership position, in my opinion, that is, amongst the major technology companies in america, and jenny ramatey is going to be with us about the completion of the red hat acquisition and i will ask her what's with your position in the technology world? >> they bought red hat for all cash, $190 a piece and look where it's trading right now. stuart: okay. >> below the offer and the acquisition price. stuart: have they done well? >> well in terms of what, red hat and the acquisition how its helped the data analytics firm how its helped big blue's bottom line? look ibm needs to find revenue growth from somewhere only a few quarters of sales growth over the past decade and this stock is lagging so yes they need to
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find growth from somewhere, some said paying $34 billion for red hat might be over doing it. stuart: what do you got? >> well it's a big focus for them because they are saying do you have four key growth drivers and cloud is one of them and that's exactly where red hat falls. stuart: as we speak, ibm is up just $0.30, 140.95, red hat is up $1.29 at 189, so there you have it, ibm has completed the full acquisition of red hat for $34 billion. >> but having said that red hat does help them grow in the cloud and as you know it's microsoft and amazon, the cloud is the future. stuart: let's see if it helps them grow in the cloud. come on in, please, ibm ceo, and red hat ceo jim whitehurst. jenny first of all to you if i may. how does this accelerate the growth rate of ibm as a whole? >> well, let me answer that both from a client perspective and a number perspective.
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this acquisition of red hat is all about being and we will now be the leader in the hybrid cloud, and that is the destination. we'll come back to hybrid versus just the cloud, and it is 200 basis points to ibm, as the five year cagr so clearly ibm is a big company at $80 billion so it is 200 basis point increase in our revenue, but it is more about what clients need in order to modernize all their mission critical applications, which is 80% of what's left to be modernized and red hat is the important piece of that. stuart: jim, red hat ceo, tell me how this chapter 2 of the cloud, i think that's the way it's being talked about, chapter 2 of the cloud, how does it help your customers? what do your customers get out of chapter 2? >> well most customers really don't care about it infrastructure and cloud, or hybrid cloud or any of those things. those are tools to be able to deliver for their customers, and so for instance, you know, the
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press release was talking about they're working to transform the experience for their customers, and in order to do that they have to build new capability for their website, for their mobile application. its got to go back and get data out of these legacy systems, and what we can bring together is the power of this next generation technology which lets them develop applications much more quickly to serve their customers, and at the same time be able to run in a mission critical production way and be able to pull data throughout their systems and that's just one example of dozens of customers that we can work to accelerate their businesses by bringing together this brand new technology, in combination with the data and information that exists in their systems today, and we're uniquely capable together to be able to do that. stuart: real fast, jim. would you tell me what's so special about red hat, and what, not red hat, and what you're contributing to ibm? what's so special? >> so we are the only fully
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open source software company and we've shown an ability whether it was with linux, with open stack, with kubernetti's and containers for technology after technology to be able to get involved and make those mission critical and ready for the enterprise, and so bringing that capability to ibm, we can help bring a whole new vector of innovation that's happening in open source and make that enterprise grade and combined with the capabilities of ibm, the industry vertical expertise, the business process knowledge, the application development capabilities, we can accelerate our customer's businesses together in a way that we can't by ourselves but together we really can. stuart: when i think of the technology of america, american technology companies, i don't see ibm in a leadership role. i see microsoft, i see google, i see facebook, i see amazon, i see et cetera et cetera et cetera. i don't see ibm right up there
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with the movers and shakers of the technology world. will this do anything to improve your position? >> well look, i should very much clarify that for you. we are the number one enterprise provider to the banks of the world, the airlines of the world , the credit card companies of the world and so ibm is number one in the enterprise. now, what you're talking about i think a minute ago is about growth here, and in the cloud area, many years, people have said the whole world is going to move just to a public cloud. we believed and put the pieces in place, that that's not actually the destination. this does make us the leader in what i believe the destination is now, for the enterprise, and when i say hybrid, think if you were remodeling a house. every one of our clients doesn't have the option to knock it down and rebuild overnight and so what hybrid said is you look at your it estate and piece by piece you decide what is economically or for regulatory competitive reasons you say i'm going to take some of this and leave it on my premise, some
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goes wayne the they call private clouds, a cloud that runs in your own backyard or many public clouds which today clients have 5-15, so this is imperative for them to do the innovation jim just said, that we bring them a hybrid cloud and remember, what we now do is we run on all the clouds you just cited. so this gives them one platform, just think of any business. i'd rather have one skill that can work in any environment and that's what we just gave them, instead of having to take their people and wall them off by every different technology. in the future, is open source. it's clear that the technologies jim just cited, they will be what brought the internet to bear. this is going to bring the cloud to bear, and therefore, this makes us the number one foundation across all platforms, and in fact what jim built with red hat you asked me what is ibm value, it is the number one platform on prem and in the cloud of which applications are being built now, so this propels us to be in the number one side. i have to add to that.
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many of the companies she mentioned as leaders in technology are perceived that way because they directly serve consumers. stuart: okay. got it. we work with with large enterprises. we don't compete with those enterprises so if you look at quantum computing, blockchain, a i and big data, ibm has really fundamental net new innovation in a bunch of different ways. it's just delivered via our customers to end consumers so there's an amazing amount of tech knowledge. i as new to ibm have just been blown away at the amount of innovation that's happening inside ibm. stuart: you've made me understand a little more about this cloud thing. thank you very much indeed. i do appreciate that and we really have, we really want to thank you for coming on the show today. thank you, ladies and gentlemen. i'll get it. thank you. >> thank you. stuart: all right, so let's get back to the market, tuesday morning we open up in six and a
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half minutes we'll we down. we've been falling once we've been on the air, we went on the air at 9:00 and we've come down since then now we'll be down about 120 points at the opening bell. to hong kong, chief executive ca rrie lamb said the bills who legalize extradition to mainland china is dead. her word, dead. you know? i think, susan to me, that's xi-jinping backing off, >> well , obviously, especially when it hurts his shall we say his negotiating stance, with the u.s. when it comes to the china trade talks and other political issues so carrie lamb says this extradition bill is essentially dead, not canceled and as you saw 100,000 residents took to the streets this weekend after 2 million taking to the streets and many many moreover the past month because of this controversial extradition bill which would have allowed hong kong residents to be sent to china on trial. now, after carrie lamb for survival still in question for
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debate whether or not it was her idea for the extra bill it's still obviously under an opaque curtain but she might lightly take the fall. stuart: i think xi-jinping does not want anything to happen on mainland china like what happened in hong kong, do anything to stop her. >> right. stuart: now we have five minutes to go before the market opens, and we will be down 120 on the dow. we'll take you to wall street, after this. hey, who are you? oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens. and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate...
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stuart: so richard branson will take his virgin galactic public. christina, this is space tourism isn't it? that's what it's all about. >> yeah, well he's already sold 600 seats for people to go around the globe and within, around the globe, within orbit, those seats go from anywhere between 200 to $250,000, so you have right now the company that's going to go public in the later half of 2019. we don't know the exact day. he's received funding from a lot of people of 49% stake from a certain investor this is a social capital, head of sophia holdings which is a special company listed on the new york stock exchange but this is in order to compete against the likes of new orbit like amazon. you've got a lot of players, a lot of billionaires getting into this mix and so he's planning ongoing public. stuart: so far, only 570 humans
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have actually been in space. >> and now? stuart: if that number could double? >> he wants to be the first to go in that. this is a moon shot as we saw. we did have an accident with virgin galactic testing over the mojave desert but these are two great salespeople and getting together, and looks like they are actually investing in a profitable business going forward. stuart: let's see down 115 in the very early going on wall street that's roughly a half percentage point but look at the level. you're back to 26, 678, hardly a huge decline. the s&p 500, where is that this morning it is down also about .4 % so the loss there not as great in percentage terms as the dow and the nasdac is up about the same amount, just under a half percentage point. the 10 year treasury this tuesday morning yields 2.05%, and the price of gold is below
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$1,400 an ounce, i went away for a week and it dropped, 1,396 is where it is and the price of oil is $57 per barrel this tuesday morning we're joined by mike murphy, susan li and christina partsinevelos. okay, dr, to you first. is this market down so much because investors don't think we're going to get a 50 basis point cut at the end of this month? >> i think it's not just the 50 basis point cut. i think they are starting to get worried we might not get one. the futures traders put it at 93 % chance of getting a quarter of a percent rate cut. here is the thing. we're in an upside down world right now when the fed is leading the narrative. when china trade has been kicked down the road, good news is bad, and bad news is good, so when we had a great employment report, the market goes oh, maybe that'll cause the fed to pull back and we're going to continue to see that play out. chairman powell today, tomorrow,
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and thursday, will be talking, every word will be parsed. stuart: let me just say this. president trump has been tweet ing on the economy and he did it first thing this morning i'll quote it for you. very good numbers on the economy , much potential for growth, trade deals being negotiated or being set up we've been treated very unfairly to put it mildly by other countries for many years but that is changing. so, is china trade still a factor in the market? murphy? >> it is but let's remember stuart we're at all times historical highs on the market, so there's a lot of noise out there. the fed, china, but we're sitting at all times highs so things aren't that bad. i think investors realize that investing in this economy, that's hitting on all cylinders right now that is probably going to get a rate cut in the very mid-term, and where we have trade deals that are putting us in a better position than we've been in years, put your money to work in the market. stuart: if we get a quarter
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point cut this month, if we get that does the market go up? >> it does. stuart: if we get a quarter point cut this month does the market go up? >> the market does and i think if we get anything positive out of chairman powell today or tomorrow the market is going to recover what its lost the last two days. stuart: hold on a second, susan if there is no rate cut this month, does the market go down? >> yes that's exactly what i was going to say. stuart: same question. >> i think its been priced in for quite some time so even if they do cut it may go up a little bit but then come right back down. we've been talking about this for a while. stuart: you want it all. >> but if you get a china trade deal and no rate cut or no rate cut and no china trade deal it's a great opportunity to invest in the market. stuart: its been very optimistic thus far. >> is there any reason not to be optimistic? >> no i'm asking if that's priced in already. >> so you're investing in a group of companies where you believe their forward earnings will be bigger than they are today, so you're looking out for , do you think apple at $200
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as a proxy for the market is a good place to put your money? i don't see another place to put your money where it's going to be treated to better return to the market. stuart: netflix their stranger things season three premiered and it broke records, but in the background with netflix you've got to remember that they are, i'm told, thinking about running ads, and there's a survey out there that says 23% of subscribers would cancel netflix if they started to run ads. i don't believe that. >> i don't believe it either and i think that number as you and i talked about off camera is inflated. those are people going, we want to tell netflix that we'll get out. they wouldn't get out. and look, with this news, that netflix may start doing ads, it's up, i've got a percent and a half today on the strong stranger things opening. they are bringing more and more content to bear, stuart. nobody is getting out. >> first of all, as i said that survey is flawed. and actually for $1, would you
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want ads supported for $3 they said actually yeah, we would more people would be on board but stranger things is going to be a $1 billion franchise at least that's what netflix is hoping you can market everything on it from coke to sneakers to what else happened? >> i don't know. stuart: oh, very good. >> d. r.? >> thanks, murph. stuart: what do you got on netflix? >> i've got my 16-year-old, 14- year-old, 12-year-old and 9- year-old are all glued to stranger things so netflix is doing great, the stock performance has been doing great and they have the ability, stuart to a, run ads, what's disney going to do a lot of competition coming in but people won't cancel netflix. stuart: and if they can raise the price, i bet your youngsters do not watch television do they? >> they don't. they really don't. stuart: all this. >> all here. stuart: on demand. >> speaking of disney, netflix sees stranger things as kind of like their next franchise, like may marvel or what was it star wars, so stranger things is a
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first step in that direction. stuart: it's a big deal? >> you mean the upside down world reference there before. you don't think they would lower the price given that disney is cheaper? >> netflix would lower their price? they might have to. i don't see a reason they need to. like the winner ultimately will be the consumer so we're going to get more content and better content at a better price, but i think whether netflix is $12 or $14 i don't think that's going to make people make or break a decision. what disney is doing is smart coming out at $7. >> but that's ad-supported. >> my kids anyway don't mind the ads. stuart: here is what i care about. my grandchildren wanted to watch the world cup on this. >> yes. stuart: not the big screen. can you imagine this? >> [laughter] stuart: to the big board, we'll come back a bit. we were down 116, 120 actually and now we're down a mere 85 points that is one-third of 1% and better sales coming in at
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pepsi's frito lays division the snack food people, cheetos, lays , doritos, et cetera the stock was down just a few cents let's not forget big caltech pre -market they were all down and apple is back to $200 a share, amazon is up, facebook is up and alphabet and microsoft on the downside both of them. deutsche bank, this is a very interesting story, announcing gigantic layoffs that was yesterday. the stocks down for more today, down 2% at 733, my question is now i don't want to get too else o tear ic here but that is a major european bank, and it's on the verge of going under. could that be a lehman brothers event in europe, the european banks? >> i don't think so because its been happening for so long but i think the equity holders if you own stock in this company, i think you could have trouble. it's not going to lead to a run on the banks or a major financial crisis in germany or throughout europe, but if you're
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a shareholder in the equity i think you have problems. stuart: okay the equity is not doing well. $7 a share on boy bank, price of oil this morning $57 a barrel, price of gasoline pretty much where it was before i left for vacation, 2.74 is your national average. >> did you drive? stuart: no i didn't drive. i don't drive. i actually don't drive at night. by the way in california, the average price of gas is $1 higher than the national average it's 3.74. >> almost $4. stuart: that's california, yeah. amazon workers, oh, this is outrageous. some amazon workers plan a prime day strike. this is at a warehouse in minnesota, prime day starts monday. it's a two-day event. i don't think the strike is going to effect, but oh, what a rotten thing to do. >> they're striking for six hours. stuart: why in the middle of prime day? >> yes, the 16th of july for the viewers watching. stuart: we used to call that being bloody minded, do you
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understand that? bloody minded you're doing maximum amount of damage disrupting the maximum number of people by one small job action and the maximum point of contact >> in the world we live in today stuart you can boycott anything and you'll get a lot of press around it and if i don't like something you do i'll boycott you or tell other people to boycott you. you almost have to look past it because if you're successful in any way you'll send someone along the way. stuart: that's true. >> if we look at the math it's not going to make a difference. there ill will be very few deliveries, missed this is one of more than 1,000 warehouses that's out for six hours. they are already preparing for this. it's just a high profile way for these workers to get their voice heard and i'm with you, stuart. i don't like that way to do negotiations. stuart: there's something about minnesota. i don't know what it is. we've got lots of viewers. what are they protesting anyway if amazon is going to $15 an hour anyway. stuart: i've got to get this in
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apple's co-founder says people should leave facebook, permanent ly. he's concerned about privacy, is that right? with 2.5 billion monthly users? >> yes. across all platforms, and echoing what tim cook has been saying to apple saying that basically, if you're getting a service for free you are the product and they do take your data and privacy is not cheap, so this is just echoing the apple mantra. stuart: how many stories have we said about facebook and privacy and losing and selling the data how many people have actually stopped base book and walked away from it? >> not a lot. stuart: doesn't happen does it? >> here is the thing stuart back to netflix if you're getting ads, while watching netflix if they are targeted to you because they know you and the things you like and don't like, is it really that bad of a thing? stuart: well it's a powerful
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revenue raiser. but if you're using your phone people are tracking what you're doing on your phone, period. stuart: that's the way it is. thank you very much, gentlemen good stuff indeed. it's 9:40 that means we check the markets. we're down triple digits, 100 points down for the dow industrials in the first 21 minutes worth of business. explosive allegations from astros pitcher jason berlander, just ahead of the all-star game, he says major league baseball is altering baseballs to make it easier to hit home runs. he says it's turning the game into a joke. well we've got a biggest coming up on that, baseball legend darryl strawberry. does he think major league baseball is juicing the balls? we'll ask him. he's on the show at 11:45 eastern this morning. new study from the congressional bean counters says if the federal minimum wage were $15 an hour, 17 million workers get a raise, but 1.3 million jobs
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would be lost. more on that, after this.
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stuart: i'm afraid, ladies and gentlemen this is the low of the morning we're down 138 that's almost exactly a half percentage point, it's a down day, across-the-board on wall street. the drugmakers a judge blocks president trump's ruling requiring drug companies to lift prices in tv ads. what's going on? >> right you're expected to see direct to consumers tv advertising of drug prices starting this week, but now a federal judge has blocked saying that the health and human services they overextended their authority in this case. now we did have the big drugmakers like amgen, eli lilly
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and merck basically suing the hh s saying this goes against our first amendment rights as well but they were required by law, by the white house to basically list the prices of the drugs if it cost more than 35 author a month and according to the 10 most-consumed drugs that would be about $488 or $16,000 a month you would have seen labeled on some of those popular drug ads. stuart: but now you can't. a judge says no, hhs over reached so you can't do that. >> well the drug company says these are not the prices that the patients pay anyways and if you put 16,000 on the screen they might be saying well actually i can't afford that so i opt go get treatment. stuart: was america always like that? where every single thing, the administration wanted to do was challenged in court and overruled? was it always like this? >> no it wasn't. it wasn't but when -- stuart: you've got a foul face looking at me. no, i agree. we're seeing it more and more often. everybody is protesting.
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stuart: i can't believe it. >> yeah, it's across-the-board. why is that? why is it trending amongst all people in general? but you can see it with companies like pulling stuff down complaining. >> i think the question is why are drug prices the highest in america compared to other countries around the world especially when you research and develop them in companies here. that's the greater question. stuart: disagree. why can't you make the drug companies show their prices and you can't. however -- >> or the uk. stuart: i've got to move on. the cbo, the congressional budget office, they studied and said look, you raise the federal minimum wage to 15 bucks an hour , 17 million get a raise, 1.3 million jobs lost. come on in, economist peter mari ci. peter i don't like the idea of legislating wages, period. what do you say? >> well neither do i think i it's a terrible idea to have a minimum wage and it used to be our economists were against
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those things but now the economics profession has become bad with the u.s. judiciary that you're just commenting on and also i'm suspicious of the study the reason is all studies like this give a range of estimates, and their lowest it matt says no impact, which the democrats can grab on to and even the mid- range estimate indicates not a very large impact across the whole spectrum of the economy. i suspect the cbo is doing what it did with obamacare. hedging its bets in case the democrats are in control. the folks over there don't like conflict. heath hall, the director really doesn't like conflict, and you know, no one has ever sued the c bo for being terribly imaginative. stuart: well whenever i see $15 an hour go into effect, wherever it is, i see technology come into get rid of the workforce. is it that obvious? >> how can you double the price of something and not expect a demand to go down and even to come up with an estimate that says it's plausible that nobody
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will lose a job. i mean that's absolutely absurd. that's basically saying in newton's world if you drop the apple it'll fly to the top of the tower of pisa. they will go to the mid floor and say the fifth floor instead of the tenth put out an apple and have it go up and land on the top then i will believe that study, but still, the study shows even under these circumstances, that they're going to be job losses. how do you justify putting sally out of work, so sam can get a raise? by state fiat. i have trouble with that. stuart: right and the results are always troubling, because the number of jobs available, and the entry level job disappears. what do you do with all those youngsters who want to get in but who can't because they're legislated out by a mandatory higher wage. you'll never know the names of those people but they're out there. >> these are the same democrats , pushing this, that want to let in all of the
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illegal immigrants and spread them through the country and put them to work. at $15 an hour, without any real skills, many of them are pesant pesants of various kinds and no knowledge of english it's going to be very difficult to pay them $15 an hour, plus social security, plus obamacare, and all of the rest and you basically are talking about turning in are level jobs to $25 an hour jobs. that's absurd. stuart: well said that is absurd thank you very much for using the right word. thank you, peter. >> put the apple out there. stuart: [laughter] i'll check it. check the big board, we're still down about a half percentage point on the dow. 123 points, on the downside. a new law, it's on the books in mississippi, makes it illegal for plant-based meat companies to use the word "meet" on their packaging. one fake meat company is fighting back. they're on the show to tell their story, next. carvana is six years old this year
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and is the fastest growing place to buy a car in the nation. it's because we have thousands of people working hard to make our customers' experiences the best. it's because we have tens of thousands of cars ready to be delivered to your doorstep. and it's why hundreds of thousands of happy customers have ditched the dealership and bought their car online, earning us an average 4.7 stars in the process. so if you didn't know about us before, you do now. we're carvana, and we want to give you the car buying experience you deserve. patients that i see about dry mouth. they feel that they have to drink a lot of water. medications seem to be the number one cause for dry mouth. i like to recommend biotene. it replenishes the moisture in your mouth. biotene definitely works. [heartbeat]
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stuart: the new law, it's in mississippi and it says plant- based meat substitute cannot be labeled meat. a chicago-based vegan meat maker , uptons naturals suing mississippi in federal court,
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and dan strackman is the founder of upton's natural and he joins us now. dan are you suing on the grounds of free speech? >> we are. stuart: okay, so you demand the right to say this is meat. you want to say fake meat that's what you want to say, right? >> we actually don't ever use the words "fake meat." the products that we make both have been consumed for thousands of years. we have a product, satan bacon, for example, that is about as processed as a loaf of bread, very simple ingredients, the same way one might use the word "bacon" to describe turkey bacon , while it might not be the traditional form of bacon, it's a descriptor that consumers understand and that's really what we're fighting for for the consumers that who know these words. they don't think they are buying
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meat when they buy this. stuart: no i would not understand that expression. i absolutely would not understand the expression at all , so are you a vegan company? >> we are, yes. stuart: and so your products are entirely, what's the expression, vegan complicit? is that the right word? >> simply vegan, yes. there are no animal by-products in any of the products that we have on the market. stuart: how old is your company? >> 13 years. stuart: and may i ask you, gross revenues? i mean, you're making some progress here have you seen an explosion recently? >> we're making quite a bit of progress, we are privately held company so we don't disclose revenues, but we're in the several million dollar range. stuart: you must have gotten a boost recently from beyond meat. and the impossible burger people >> their attention has helped the category as a whole for sure we've been growing quite
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steadily the last five years, have seen anywhere from 50 to 120% growth year-over-year. stuart: now your products are in grocery stores or specialty vegan stores, is that where they are? >> both. we run the range from a vegan grocery store like food fight in portland, oregon all the way to target, walmart, whole foods. stuart: okay. we're out of time but dan strack man, with uptons naturals thanks very much for joining us sir, we appreciate you become us today. thank you very much. >> thank you. stuart: the democrats going o utility to president trump with the fourth of july salute to america they want to launch an investigation into the president and how the cost was covered, and whether he broke any laws in getting political. can you believe it? we'll get into that, i promise you. remember the scene from the democrat debate they were asked if they provide free healthcare
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for illegals, all of them, raise their hand. they all said yes, we will. they're all making in my opinion a hard turn to the left which i think is political suicide. my take on that is next. . .
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stuart: 10:00 eastern time, we're just coming up with some new information on the economy. this is the report on job openings. i think we've got the number. this is how many jobs are available and out there right now. we got a number? susan: slowdown from the month of april. the jolt search is a month behind non-farm payrolls. for the month of may, 7.323. 7,323,000 jobs available. don't forget the slowdown from april, we saw 7,400,000. stuart: that is not that much. susan: a gap of one million in terms of those looking for work, the jobs available. it is still healthy jobs market.
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stuart: there are far more jobs available than people available to fill those jobs? susan: what is important, we'll dig into the jolt, hiring amount, hit a record in april, 240,000 hires. that is something we'll be watching. stuart: 24,000 hired people in may? susan: that was april. looking for may number. that was a record for april. stuart: the big board shows very little response to that number. we're still down about 100 points. i want to bring in scott shellady, tjm investment senior vp. how does this factor into the fed's thinking. why are you laughing? we have 7.3 million jobs going begging here. don't have the workers to fill them. how does that affect the fed's thinking? >> two things. you can't have your cake and eat it too and be careful what you wish for. in all my 31 years in the business, stuart, never in mind have been so perfected.
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either economy is doing so well and trump is elected or we're cutting rates. how are we cutting rates? all-time record hires, record high equities. never in my career. record high equity prices, all-time record highs, we're cutting rates? something stinks, i don't like it. stuart: you don't think the fed will cut rates this month? >> at worst, at worst, stuart, they might take back the rate hike in december. then they should shut it down. wait and see. at the end of the day wee growing but at a slower pace. we're not receding. slow ire roll and take it easy. stuart: seems like the market wants everything. they want a 50 basis point cut. they want another one later in the year. they want a full-scale china trade deal, if they don't get it they will sell. market wants it all? >> we can't have it all. we had an amazing run. we have to grind sideways to the
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market catches up with itself to take a breather. if you asked them if they want quantitative easing all over again they would say yes. be careful what you wish for, if you don't get the outcome you would like, we're in trouble. stuart: stay there as please, scott. as we speak the dow industrials are down 100 points and now this when will the democrats shift back to the center? i should say the electable center? when will the far left retreat just a little? i don't believe a socialist. "green new deal" climate warrior will win the presidency. i don't see it. during the week-long summer vacation, i was looking for moderates to step up, make noise, reclaim the center. i didn't see it. the joe biden, the moderates champion, dug himself deeper hole. he apologized for his association with segregation its
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50 years ago. i am sorry to the pain it cause anyone. that was surrender to the gotcha politics of the far left. that shows weakness. the middle ground is losing ground. i don't get it. why are the democrats charging full tilt towards policies that will surely lose them in the 2020 election? in the debate, some of the candidates, most of them raised their hands to abolish private health insurance, kill it. you have it, and you like it, but you can't keep it. that is not a way to bring in the votes, is it? where am i going wrong on this? immigration, another misreading of voter sentiment. why should native-born americans give free health care to all illegals? that is what the left demands. along with no detention at the border at all, no deportations. of course no wall. that is open borders. i just don't see middle america voting to allow everyone in and then paying for their every need as well.
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massive new taxes, much higher energy costs, kill fossil fuels, spend trillions and trillions of dollars, all of these on our mainstream democrat policies. the moderates have hardly put up a fight as their party has shifted away from them. i think it is political suicide. my only explanation for it is, trump derangement syndrome. they hate him so much they can't see straight. the media urges them on because they hate him too. one last point, just as the democrats march to the left, the president's approval rating hit as record high. the left isn't listening. are the moderates? "varney & company," hour two, on its way, actually we're starting now. let's get straight at it. here is liz harrington, rnc spokesperson. liz, i'm saying it is political suicide, all these giveaways, that is my position. but i have to put it to you
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giveaways are popular, they bring in voters. someone offers you free college, free money, free health care, a lot of people will vote for it. that is what you're up against. >> the american people are smarter than that they know nothing in this country is free. someone will pay for it, it will be us, everyone. bernie sanders is very honest about that when he says the middle class's taxes will go up, they will go up by a lot. i think you're right, these are policies, these socialist poll is are a loser, maybe they will go back to the fringe where they belong when they lose in a landslide in 2020. stuart: do you think it's a landslide loss if they put up a socialist or "green new deal" warrior? you think it's a landslides for the president, you think? >> absolutely. these ideas are so radical. look what we saw over the last week. the president couldn't even put on a party for the american people to honor our great heritage as the greatest country in the history of the earth without the democrats and the media losing their minds. now they want to investigate the
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celebration of our great country. stuart: what do you make of that? >> we shouldn't be surprised because this is a party says you can't stand for the anthem this. is a party says you can't put the american flag on a shoe. this is a party wants run out of a restaurant if you think differently from them this is party says if you're 16-year-old kid, wear a make america great again hat they want to ruin your life. they are catering to the anti-american activists. it is absolutely a loser. stuart: they want to investigate the president's 4th of july celebration, the event. i didn't see it. i wasn't there. it looked to me like a huge success. i mean the place was jam-packed with hundreds of thousands of people but they want to investigate it. now they could turn around and say look, this thing cost $94 million, or whatever it costs, it was a political event. they could go after him on that basis. would they score point?
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>> no. absolutely not. i was there. i was at the left. it was uplifting. there was not anything political about it. it was honoring our great country. we are the taxpayers. we pay for this, right? why can't we go out to the mall, see a great flyover, be happy to celebrate our independence and freedom that has made us the greatest nation in the history on earth. the democrats, talk about partisan, trying to investigate over this? that is what is political attack. stuart: you're on the inside of all of this. there has been some talk that the president might want to replace vice president pence when it comes to the 2020 election. you heard anything like that? >> no, i don't think so. i think he says, you can't break up a team like trump-pence. it was such a winning team in 2016. he has been a great vp. i haven't heard anything like that. stuart: no thoughts of woman running for vice president? >> identity politics, that is the democrats game, you know that, stuart. stuart: i do, it is on occasion
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a successful theme. >> it is but president has been clear. he thinks that the vice president's doing a great job. he doesn't want to break up that team that was so successful in 2016. it will be very successful again in 2020, especially the democrats lurching to the left with no signs of slowing down. stuart: we'll leave it there, liz. you predict a landslide for the president in 2020. got it. rnc spokesperson. thanks for joining us. >> you bet, sure thing. president trump hosts qatar's emere, after issuing a warning to iran over breaching the nuclear pact. are they going to help deal with iran? we're asking a national security expert. a very good question. in our 11:00 hour i will speak with baseball legend darryl strawberry. does he agree with astros pitcher jason verlander, jason or justin? sorry about that, mr. verlander,
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justin verlander. he says major league baseballs is altering baseballs to increase home runs. we'll ask darryl strawberry, 11:45 eastern this morning. "varney & company." hour two just getting started. ♪ ♪
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stuart: still down 100 points on the dow. that is roughly 1/3 of 1%. walmart, i believe they just hit an all-time high. yes, they did, they're at it now. $113 a share for walmart. how about that? >> iran says they will continue to breach the 2015 nuclear accord if it doesn't get relief from sanctions. walid phares with us, fox news national security analyst. okay, what -- the europeans are
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playing a role here, aren't they? doesn't iran want the europeans to bail them out of these sanctions and give them a lifeline? >> absolutely. iran needs the europeans to help them get relief from the u.s. sanctions and the international sanctions. stuart: are the europeans going to do it? >> the europeans are divided. most of the europeans, germany, france, would like to continue with the deal. stuart: so they will help iran if they can? >> no, they said they will help iran but they really want to see a unified position with the administration. the administration is telling them, let iran abide what we're asking them, stop missiles, stop the nukes, stop militias in the region. the europeans would like to do that but their business interests with iran are so large. stuart: the iranians said, with uranium they will process beyond the. >> that is pressure on europeans. they don't want to go that far. they will try to tell the trump
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administration, look, they're retreating, going backward but the iranians are concerned about our deployment. at the end of the day it is military. they're concerned about us engaging them in a military level. >> you support a large military presence in the gulf to keep them in check? >> just to keep them in check, absolutely. stuart: our policy you believe is containment, rather than bombing invasion? >> no bombing policy or invasion. it is containment but it is also putting pressure on iran to withdraw militias from syria, lebanon, yemen, that is what the arab allies would like to see happen. stuart: president trump dined last night or lunch yesterday with emir of qatar. >> that's right. stuart: qatar has taken a pro-iran stand recently because it is in a fight with saudi arabia. >> absolutely. stuart: is the president trying to get the emir to see things differently, to come back to the other side of the fence? >> he would like to see that. let me explain the big picture. there is a u.s.-qatar financial
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relationship. many sectors profit from the relationship, individuals, companies, even the government. on the other hand qatar is not doing well with our allies the saudis, u.a.e., kuwait, jordan, even egypt. the arab alliance is isolating qatar. they are coming to the trump administration with iran. omar is helping us with iran. qatar is saying don't put pressure on me, ask the allies, saudis, we don't need anybody to introduce us. the president can give a phone number if the iranians want to speak to us but there is pressure on qatar. stuart: would you say there is solid front, saudi arabia, some of the gulf states, maybe europeans as well, a solid front line that keeps iran in its box? >> i think it all started, stuart, in 2017. when the president went to iran and spoke to 50 arab and muslim leaders, much larger coalition. stuart: he went to saudi arabia,
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right? >> in riyadh. stuart: i thought you said iran? >> riyadh. stuart: capital of saudi arabia. >> now we have that coalition. more countries are actually shifting their positions, a few countries in europe, the warsaw countries, brazil, out of many countries in latin america shifted its position to support the united states. we're widening the coalition internationally speaking. what we need is coalition here in the united states. because we are divided on iran. stuart: we are? >> you have the opposition basically wants to go back to the iran deal. you have the majority in the house that is not happy with the trump administration policies. we need to make sure we are united here and widen that coalition internationally. then the iranians would be isolated, the regime that is. stuart: basically you think they're in a box, they stay there? >> they are in a box. stuart: successful trump hard-line? >> success to withdraw from the deal, propose another deal, invite them to the table, link it to conditions, stop missiles,
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stop the nukes. stuart: walid, pleasure to see you face-to-face to shake hands with you. welcome to new york. >> absolutely. stuart: dare i say, watch out amazon. it is getting some competition on the prime day later this month. a number of big-name retailers announcing very big sales of their own next week on the prime days themselves. we'll tell you where you score the best deals in a moment after this. ♪ we're the slowskys.
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we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help.
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snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. stuart: two-time presidential candidate ross perot has died at
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the age of 89. if you remember he ran as a third party candidate in the presidential election of 1992. he got 19% of the vote. many people said that much of that 19% of the vote came out of votes which would have gone to george bush, bush 41. that he was in fact ross perot who lost bush the election of 1992. bill clinton, the successful candidate in '92, negative broke 50% of the vote. never broke it. ross perot was one of the reasons why. ross perot has died at the age of 89. to your money quickly. the dow industrials staying with a loss of about 100 points, 1/3 of 1%. a number of retailers gearing up to compete with amazon on prime day. i should say prime days, because there is two of them now. kristina, who is doing what? >> prime days the 15th, and
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16th of july. there will be sales going on there. ebay, starting on the 1st, for the next three weeks they have a deal. they have a special deal on the 15th called the crash sale. why? because they're mocking amazon. a son prime in the past the website crashed during prime day. not only ebay but target has two days of sale. they are calling deal days on rarely on sale items on the 15th and 16th. walmart is doing a week of sales particularly on smart home devices. stuart: next week will be like christmas in july. >> we'll never buy things at full price. there are so many opportunities for sales. black friday. stuart: you have a problem with that? >> no. that's why. i'm conditioned only to shop at sales now. stuart: exactly. i have to do the online stuff myself. still on amazon, a federal court rules that amazon could be held responsible for defective
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third party goods sold to customers across the board. judge napolitano is here. he is the host host of "the liberty file" on "fox nation." now is this, responsible for these products, are they legally liable? >> before today, if amazon sold a product it didn't generate, it is just, it is a third party advertiser on amazon. amazon has a relationship with a third party, the third party manufacturerred and markets it. amazon was not considered a seller. it's a terrible case. a woman bought one of those retractible dog leashes. the dog leash broke, hit the woman in the eye and blinded her. it is very, very high-end expensive case if it ever got to a jury. loss of eyesight due to a manufacturing defect in the product the manufacturer of the product obviously does not have the deep pockets of amazon. one of the aspects that the court looked at is, how can
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society benefit the most by permitting this type of liability or by denying it? so because of the control that amazon has over the price and the advertising, it is not just a passive advertiser, it is a seller, according to the third circuit. the third circuit is that intermediate appellate court directly below the supreme court. pennsylvania, delaware, virgin islands is the third circuit. this is the trend. i suspect will continue in other circuits across the country. i suspect it will raise cost of things to raise insurance premiums. stuart: tighten up the quality of products or safety of products? >> the way amazon operates i think it will. i don't see amazon just taking this dog leash without some sort quality control before it becomes liable for a manufacturerring defect. stuart: essentially the amazon
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becomes the insurer of every product sold throughout their entire network. >> which it has never been up to this point. what does that do for people watching us now? it raises the price. amazon will not pay for the insurance. it will pass the cost on to the consumer, well-explained, judge. >> varney, nice to be with you after all that time you took. stuart: i'm such a slacker. apple's cofounder, steve wozniak, criticizing facebook. he said almost everyone with a facebook account should delete it. we're on it. more "varney" after this. ♪
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can't see what it is what is that? that's a blazer? that's a chevy blazer? aww, this is dope. this thing is beautiful. i love the lights. oh man, it's got a mean face on it. it looks like a piece of candy. look at the interior. this is nice. this is my sexy mom car. i would feel like a cool dad. it's just really chic. i love this thing. it's gorgeous. i would pull up in this in a heartbeat. i want one of these. that is sharp. the all-new chevy blazer. speaks for itself. i don't know who they got to design this but give them a cookie and a star.
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♪ stuart: not bad. you don't know this? wait a minute. susan: putting me on the spot like this. stuart: kristina partsinevelos you never heard this song before, "back in the ussr" before? did you know ringo was one of the beatles? >> thank you for pointing that out. i don't know one song. susan: i don't know the song eight. stuart: are you kidding me? ♪ susan: no. stuart: do you know this song? there you go. >> they told you in your ear. stuart: driving me crazy here. let's look at the big board, please. get me out of this. dow industrials retaining a loss of exactly 100 points, been that way for the last hour. hong kong's leader, carrie lam
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says that extradition bill that sparked protests, that extradition bill is dead, her word, dead. tell me more. susan: dead, not canceled. protesters are taking to the street. what is the multinational center for the asia-pacific. a thorn on the side for president xi xinping of china, when he tries to negotiate a trade deal or other political deals around the world. carrie lam says the controversial bill which would have extradited and moved hong kong residents and expats in china to stand trial, that has been canceled, essentially dead. it has not been canceled. it has been delayed. she says it is essentially dead. people want it to be canceled. past 2020 if it they don't vote on it goes away anyway. who came up with this idea? carrie lam will likely take the fall. do they see her as puppet of beijing? whoever replaces her will be a spokesman for the beijing.
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stuart: he wants to stop this in the bud. he doesn't want protests to come over to beijing. the bill is dead. susan: they have been kidnapping people off the streets in hong kong. they have been showing up in main mainland china. do they need the extradition bill? i don't know. stuart: they wanted to reassert complete control over the judiciary in hong kong. i hope they don't get away with it. sues sauce a lot of people agree. stuart: our next guest is author of book on the screen. look at that. still winning, a fine title, with a badge of mr. trump right at the top there. it is all about why america should reelect president trump. can you read the name of the author there along the bottom? charles hurt, frequent guest on the show. man with a smile. "washington times" opinion he had are tore. fox news contributor. all around good guy. welcome to the show, son. >> a great salesman. i wish we put you in charge for this. stuart: that is because extra
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sales of the book generated through the program are commissionable. >> that seems perfectly fair to me. stuart: at the top of the hour, my premise that the democrats are going so far to the left they are committing political suicide. i don't believe you can win with a socialist agenda. my question to you, why are they doing this? can't they see what they're doing? >> i watched, i watched that on your show. all i could think about, this is why the guy is still winning. i could not begin to get into the head of democrats and what they are thinking t makes absolutely no sense. if you take the positions that he, president trump has sort of cordoned off for himself, these are mainstream issues. democrats in washington don't care about this stuff, democrats back home do care about illegal immigration. they do want the crisis at the border to be fixed. they do believe there is a crisis at the border and the idea all these democrats, these politicians in washington want
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to play politics, if you care about those children at the border in in the squalid condits you might want to stop the flow. the only person talking about stopping the flow is donald trump. stuart: you hate the conditions these people are living but you won't do anything to alleviate those conditions like get some money? you won't control the border which would stop them coming in the first place. that is total contradiction. middle america can clearly see it. >> yeah. you go back to the 2016 election donald trump, above, any other politician. any other issues like this ignored for very long time. we know his position on trade has a lot of people sort of queasy. a lot of people in the republican party kind of queasy. he identified problems that politicians in both party ignored for so long. he animated them. he won the election off of them.
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i think that he is poised to win re-election running on the same issues. stuart: charles, i'm sure you heard the news, which broke just moments ago, that two-time presidential candidate ross perot has died. he passed away at the age of 89. as i told our viewers, he got 19% of the vote in the 1992 election. i think a lot of votes came off george h.w. bush, bush 41. >> absolutely. stuart: i think ross perot put bill clinton into the white house. do you agree with that? >> the bill clinton only president we ever had won both elections with under 50% of the electorate. it was all because of ross perot. ross perot, like donald trump was somebody who identified these issues that regular politicians in washington in both party ignored for so long. he identified them. he did a remarkable job of selling them. obviously with donald trump, you have this whole other element,
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you have a guy with a great salesman. a great marketer, he is very good at identifying his enemies and labeling them and fighting them. so he had that extra, he was ross perot on, you know, you know, on super fuel. he was able to do with ross perot wasn't able to do. ross perot, he defined the '90s in terms of politics. stuart: do you see a third party candidate joining the election of 2020, taking the election away from donald trump? >> i see the opposite happening and welcoming it. tom steyer, billionaire hedge funder wants to take money out of politics? okay. if he wants to go do that, it will not take any votes from donald trump. donald trump unified the republican party behind him like literally no other republican has in, going back 20 years. i don't think you will eat into his support. stuart: his base is olid.
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>> you will eat into the democrat report. stuart: what about ceo of star are bucks? talking about getting into it as third party. i have not heard anything from him recently. >> he has gone dormant. i don't see him eating into trump's support. the only people he will undermine are going to be democrats. it is why donald trump is still winning. stuart: conclusion of your book, he is winning now. >> he won. still winning. i think he will still win again in 2020 at this rate. stuart: great book, charles. just a great book. charles hurt, still winning is the name of that book. charles, thank you for being with us. >> thank you, stuart. stuart: let's get to sports. we cover everything on this program. the major league baseball all-star game tonight. the league shows off the talent. our own connell mcshane is there. connell, that was quite a
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performance from pete alonzo at the home run derby. did you see that? >> that is my guy. i'm a mets fan. he lit up the home run derby. this is great financial angle to that i, since you brought up it up, home run derby, pete alonzo over rookie vladmir guerrero. they make $550,000 a year, but for winning, alonzo got a million dollars. he doubled his salary. he is giving a little bit to wounded warriors charity. you think in cleveland. a lot of people think of new york yankees. great history here in cleveland. frabbing -- frank robinson. first african-american manager. a great player as well. looking at larry doby, bob feller, the great satchel paige,
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one of the huge stars of the negro league. he moved on to pitch for cleveland indians. recently, jim thome a star in this very ballpark. see the whole thing with our friend on fox sports handling the broadcast. they are on at 8:00 with the first pitch. we have hall-of-famer john smoltz about the business of baseball, whether the balls are juiced. we'll have it coming up. stuart: connell, we'll see you later. by the way in our next hour darryl strawberry joins us in our next hour. president trump just tweeting about the census question. here it is, recent strained decisions by the united states supreme court, some so simple as allowing the question, are you a citizen of the united states, on our very expensive census report, or the even more
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strained decisions, to allowing the world's most expensive and pathetic health care, obamacare, to stay in place when it would have been replaced by something far better, shows how incredibly important our upcoming 2020 election is. that is a very long sentence, mr. president. i have long heard that the appointment of supreme court justices is a president's most important decision, so true. all right. let's look at twitter's stock price. why don't we. more breaking news on that company. a court just ruled that president trump cannot ban his critics. what is that? >> a second u.s. circuit court of appeals in manhattan basically has sided with a lower court judgment that president trump, basically he violates the first amendment when he blocks critics on twitter. this is incredible. so basically the first amendment group at columbia university sued on behalf of seven individuals blocked by president
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trump. they say that under the first amendment, a public official like president trump using a social media account basically, he has to do all manners of official purposes and that means, protecting the first amendment as well, people who are critical of what he says on social media. stuart: so you can't ban them? can't kick them off. >> this is ridiculous. stuart: because you're a public figure,. >> who is public figure? celebrities, post government officials. stuart: i don't have a twitter account. facebook, instagram. i don't have it. interesting question for other people. pro-impeachment billionaire a global warming warrior, he officially launched his presidential campaign. running in a crowded field of democrats. he plans to spend millions on his candidacy. he said i'm in. he said it today. coming up i'm speaking to the cofounders after space startup, that successfully supplied water to the international space station. they're the first to do this.
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stuart: a modest loss. we're down 80 points. it has been like this most of the day. the dow is down 1/3 of 1%. billionaire liberal activist tom steyer is running for the presidency in 2020. he tweeted out this video announcing his campaign. roll it, please. >> really what we're doing is trying to make democracy work by pushing power down to the people. you take away the paid opposition from corporation who make trillions of extra dollars
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by controlling our political system. what do we care about? we care about improving the world, handing it down to the next generation so they can lead better lives than we've had. stuart: all right. joining us now is jason chaffetz, former utah congressman, fox news contributor. jason, i'm not sure on what tom steyer is running. is it get money out of politics? is it climate change? or is it impeachment, or is it all three? >> i don't know either. i just think he is a bored billionaire. he is trying to buy his way in. of all the candidates out there, this guy wants to just spend his own money and try to buy his way into becoming the president of the united states. you know, in the last presidential cycle he put personally, nearly $100 million into what the democrats were doing. he is free to spend his money however he wants. if he wants to run for president, hey, more power to him, but this whole idea he is
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trying to return power to the people by spending all of his money to put himself in power, i don't think it is going to resonate. stuart: interesting, isn't it? i think one thing this will do, is pull the democrats even further to the left. certainly that clutch of candidates, 24, 25 of them, they all seem to be moving further and further to the left. as i said a couple times on the show so far today, i think that is political suicide. i don't think that far left can win. what do you say? >> no, i think number of people that are attracted to the democratic agenda continues to shrink because their policies are so radical, so far to the left, they just, they are pushing themselves out into oblivion. an, hey, as a republican, go ahead and do it. i think this is what they actually believe in. stuart: where are the moderates? i have been away for a week.
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i stayed away from the news pretty much. i expected when i cam back, i thought the moderates would be punning the table because the left can't win it for them. they are nowhere. the middle ground is nowhere. >> no. it is all about getting the nomination for them but i got to tell you, they have lurched so far to the left, they're unrecognizable. i remember when bernie sanders used to be sort of the outlier. he was sort of a unicorn on this side. now he is just one of misdemeanor who believe in these radical, socialist ideas, that are being embraced by all of the candidates, even before they read them. remember when aoc came out with the "green new deal." everybody said they're for it before they had even read it. it is just, it looks good for donald trump. i got to tell you. i think the president is stronger politically today than he has ever been. stuart: we love having you on the show. have you ever thought about getting back into politics? you seem to have such a good
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time? >> you know, stuart, they say friends don't let friends run for congress. i don't know what that means if you encourage me to get back in. i will take it as a compliment. stuart: please do. keep you on the show. if that is okay with you. jason chaffetz, thank you for being with us this morning, sir. always obliged. richard branson's virgin galactic, set to be the first space tourism company to go public. you can buy stock in it. is it a good thing? we're asking cofounders of a space startup that question in just a moment. ♪ hey! i'm bill slowsky jr.,
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i'll pass.
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stuart: still down 80 points on the dow industrials. a modest down day thus far. i want to get to this. our next guests are the cofounders of a company that became the first startup to supply water to the space station. that is a little odd, isn't it. jeremy and daniel, both ceos
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of the company. welcome to the program. >> good to be here. stuart: first of all, danielle, i have had your company described as you want to put gas stations in space but not gasoline but energy stations. tell me about it. >> satellites are disposable. get one tank of gas. like buying a car, getting 15 years of fuel behind the car. when you run out of fuel, you ditch the car. people are working on reasonable rockets. we're working on reasonable satellites. stuart: so you have a satellites, goes up there, carrying fuel for other satellites? then it gives some of that fuel to the other satellites, that what happens? >> yeah, that is correct. we send up a small tanker around various orbits. we developed a fueling port that allows satellites to get our propellant. stuart: how do you make your money? how do you make a profit out of this? >> we were funded by bolt vc out of san francisco a year ago. we have a team of five. that allowed us to get our first
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refueling demonstration completed on the international space station as well as being the first private company to supply water. stuart: so at some point somebody will pay you a lot of money to get your satellite up there to re-energize other satellites, at some point? >> yeah. we're hoping to be the infrastructure for the space industry moving forward. stuart: tell me about the tow trucks. a tow truck in space what the devil is that? >> a couple dozen companies are building effectively tow trucks. the satellites are like custom-built ferraris, they are incredibly expensive. when they're out of gas, they are junk. they toe the satellites to new locations, give them fuel, to change out components. all the satellites. we built the gas station. come get gas from the gas station. they're eequipmented to service satellites. that gives them infinite lifetime. stuart: does your supply energy hover around the earth in specific location and other satellites come up to refuel.
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is that it? >> that is exactly right. stuart: is that what you're doing? >> we launch in bulge. sell amount of fuel and sell it to the satellites as they need it. stuart: what is the name of the company? >> orbit fab. stuart: orbit fab. that is your last name? >> fabrications. stuart: absolutely fascinating. thanks very much for being with us. you're only 1 1/2 years old as a company. what a forecast, what a future you've got is great. thank you very much for joining us. appreciate it. now this. bernie sanders, alexandria ocasio-cortez, trying to revive the "green new deal." they are going to announce a resolution, declare climate change a national emergency. they're about to do this they want to make climate change a 2020 election issue. i don't think that will fly with voters but we'll see. plus astros pitcher, is it jason or justin. >> justin. stuart: justin verlander, keep getting this wrong. justin verlander taking a swipe at major league baseball.
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they are turning the game into a joke. they accused mlb of altering basketballs to make it easier to hit home runs. that is quite a charge. we have darryl strawberry to talk about that. he is on the show in our next hour. stay there, please. -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. no matter what you trade, at fidelity dear tech, let's talk. you blaze trails... but you have the power to do so much more. let's not just develop apps, let's develop apps that help save lives. let's make open source software the standard. let's create new plastics that are highly recyclable.
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stuart: the green new deal was a disaster. it was widely ridiculed and when put to a vote in the senate, it failed. the democrats weakly voted present. that's all. perhaps the climate warriors would rethink their plan, maybe make it more attractive to voters? no way. alexandria ocasio-cortez and bernie sanders have now come back with a resolution declaring a climate change emergency. this resolution calls for large-scale mobilization to restore the climate for future generations. we don't know if there's any difference between the resolution and the original green new deal.
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i can't imagine that aoc will move very far away from the radical transformation of the energy industry and i can't imagine bernie abandoning his socialist makeover of the entire economy. it's almost certainly the same new deal with a different name. the intent is the same. get climate change into the 2020 election. get it into the debates. get a discussion going. there's nothing wrong with that, except it's pulling the democrat party even further to the left, the far left. any candidate who appears skeptical will be branded a denier, a planet killer endangering our grandchildren. this is a very risky strategy. voters around the world have shown they are not prepared to sacrifice in the name of climate change mitigation and they are absolutely not prepared to sacrifice while china and india keep belching out carbon unchecked. i said it last hour and i'll say it again now. i just don't get it.
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i don't understand how a minority in the democrat party has been able to drag the whole party to the unelectable left. i can't understand the silence of the moderates but that's where we are. fantasyland climate policy, socialist economics and open borders. that is the 2020 democrat platform. the democrats badly need someone to stand up and tell the party the grim reality. you are giving president trump a second term. the third hour of "varney & company" is about to begin. stuart: 11:02 eastern time. i will get reaction to my editorial in a moment. first, check the big board. we slipped a little. now we're down about 110 points, about .4%. we are watching interest rates carefully. the yield on the ten-year
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treasury up just a fraction, at 2.06 as we speak. now, senator sanders and aoc rolling out their new green deal today. they're rolling it out at 12 noon, to be precise. i want to bring in charles payne, host of "making money" and elizabeth macdonald joins us for this discussion this hour. charles, you first. where is the moderate democrat who will stand up and say you've gone way out there far too far to the left, you're going to put donald trump in the white house for a second term? where is that moderate? charles: i think the democrats are now the victims of their own rhetoric for the last couple of decades. you know, politics of envy, politics based on race baiting, politics, you know, that, you know, they're suffering from it whether it's joe biden and i'm sorry, not sorry, yes, sorry, whether it's the intimidation of just a few newcomers to washington, d.c., nancy pelosi
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tepidly is stepping up a little bit over the weekend. you can sense her frustration. we saw about a month ago, when she came out of the meeting and said president trump was covering up something. i mean, she's being pulled and the problem is the things they have criticized republicans for for so long, they are really worried they may be criticized for it themselves and don't know how to push back against this vocal minority in their party. stuart: am i crazy, but i think this shift to the far left is political suicide. i think they'll lose badly. liz: it is political suicide. they are going into 2020 with no policies enacted, right? because mitch mcconnell has been deftly blocking them saying their policies are unacceptable. you know, the democrats can't fix the border. how are they going to fix climate change? they can't fix their own job policy. how are they going to fix climate change? i almost feel like that should be a meme. they can't fix traffic congestion, how they going to fix climate change. you know what i mean?
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that's the thing. charles is right. they have been yanked far left and you know, democrats have been around, biden has been around since the nixon era, you know, schumer since george h.w., nancy pelosi since reagan. they should have known better. it's their own fault that they don't get the 2020 election. it's their own fault. stuart: i think we're in agreement on this. good to see you. stay there. charles, this is for you. the congressional budget office studied what happens if we get a federal $15 an hour minimum wage. their study said you lose 1.3 million jobs, 17 million people do get a raise. your thoughts? charles: it's a very exhaustive study. i went through the whole thing last night. here are the top five things it would impact. wages would go up but so would joblessness. business incomes would go down, consumer prices would go up, u.s. economic output would go down. that's the big picture. to your point, 1.3 million people would lose their jobs, but a worst case scenario, 3.7 million americans would lose their jobs.
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at $15 an hour, for people currently living under poverty, they would have an income increase of about $7.7 billion. however, that would be offset by families right now who are not in poverty who would lose about $9 billion in household income. here's the thing. it's one of these things you say from this particular point of view, is there a way to go at this without federal government interfering, without putting small businesses in jeopardy, by letting states, by the way, handle this because $15 is a lot different in mississippi than it is in new york city. liz: the standard of living is different in those states. here's the thing. bernie sanders' favorite nordic countries, finland, iceland, sweden, norway, do not have minimum wage. they leave it up to the unions, the private sector, to bargain it out with the unions. everybody thought amazon was being really moral. remember amazon lifted its minimum wage? amazon is being moral. what did amazon do? they cut stock compensation, they cut bonuses and cut worker jobs. they have 100,000 robots now. so that's the point.
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you're not suddenly moral if you raise the minimum wage. you've got to look at the market impact and there is one as the cbo just noted. stuart: i don't think government should be in the business of legislating wages. it always backfires. there is always a downside. there are unintended consequences. liz: china mandates the minimum wage. they can pay a dollar an hour. there's a flipside to that. stuart: that's true. they could. look at that. the market is down 90 points on the dow industrials right now. charles, i think this is all about the fed. there seems to be some disappointment that maybe the federal reserve won't drop rates 50 basis points at the end of this month. we have had people on the show saying they aren't going to cut rates at all. what say you? charles: i think they will. i think jay powell has sort of backed himself into the corner talking about an ounce of prevention. also acknowledging that things changed in the june meeting and the june fomc meeting minutes. but you know, the most important thing people need to understand, we want to root for a strong economic data, we want a strong jobs market, we want wages going up because ultimately that's what's going to drive up stocks.
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these knee-jerk reactions, forget about that noise. you know, if you try to game your portfolio to the fed you are making a big mistake. stuart: i don't know about you, but i'm really tired of tea leaf reading every word that jay powell utters. he's giving a speech today, congressional testimony tomorrow and thursday. i'm not going to sit here parsing the exact meaning of a word. liz: it's markedly breathtakingly tedious but it's an entire industry on wall street built around it. at least he's not speaking like allan greenspan used to. he's more clear and blunt. stuart: we are in the presence of a great author. his name is charles payne. he's written a great book called "unstoppable prosperity." look at that. there you are. charles: it's released. you can go to stuart: the website. charles: absolutely. absolutely. stuart: you maintain that we are in an era of unstoppable
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prosperity. charles: i maintain that people can set up their lives for unstoppable prosperity. it's not a get rich kind of thing. i'm not saying make a million dollars, right? what i am saying is you take control of your life. if you take control of your investing life and by the way, leverage what you already know. the main thing with the book is i want to get people confidence to sort of go off the things they already kind of know. we know what's going on. we know what's hot. we know what people like. we know the trends. but you don't know how to actually set up a portfolio and manage it. it's not as time-consuming as people think and it can certainly change your life. i always tell folks for me, the second greatest financial gift, the best financial gift i ever gave anyone was buying my mother a house in alabama. a house on the side of town that blacks weren't allowed when she was growing up. stuart: that was a win. charles: the second financial gift is my son's going to graduate from college with no debt. people watching this show can take control of their financial lives and get that same gift to their kids. so you don't necessarily have to become a billionaire but you can
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take this in your hands, take control of your financial future. that's unstoppable prosperity. stuart: you are a good man. charles: i try to be. i make it sometimes. stuart: i don't care what they say. i think you're a good man. thank you. the feud between speaker pelosi and aoc heating up all over again. we will tell you how aoc is defending herself by using the speaker's own words against her. good story. fresh off team usa's big win in the world cup, senator schumer is calling on congress to pass an equal pay amendment. we are on that, too. and star pitcher justin verlander is accusing major league baseball of altering baseballs to increase the number of home runs, juicing them. coming up, we get reaction from four-time world champ, darryl strawberry. the third hour just getting started.
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stuart: let me update a story we brought to you yesterday. the dow m coucomponent johnson johnson wanted an oklahoma judge to scrap their opioid trial. tell me what the judge decided. liz: the judge is saying no, that this case is green lighted, it can go forward. they denied the motion to toss the lawsuit. the drug makers j & j have said this, too, saying you want government payouts from us to fund your $17.5 billion over 30 year plan to stop opioid addiction. you have not proven in court a direct causal relation of our product to addiction, but you still want money from us. oklahoma is one of many states that are suing. oklahoma has already got $270 million out of perdue pharma and $87 million out of teva pharmaceuticals over the opioid
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crisis. this is a battle royale in court and oklahoma and other states have already won against the drug makers in the opioid addiction crisis. stuart: the judge says it can go forward. ain't stopping it now. liz: right. stuart: all right. the u.s. women's soccer team has returned from france. you are about to see them at newark airport yesterday. they were greeted with this message from senate minority leader, senator charles schumer. roll that tape, please. >> these athletes have challenges and they make us really think about the future of women's sports. they make us grapple with the deep unfairness in how female athletes are treated and paid compared to their male counterparts. how about the equal pay amendment that the house has passed? why don't we put it on the floor of the senate in honor of the women who won the world cup? why don't we do that, leader mcconnell? stuart: we need some analysis here. for that, we go to town hall editor and fox news contributor katie pavlich.
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welcome back to the show. seems to me there are two things going on here. there's equal pay for the women's world championship soccer team, and there's the equal pay amendment, which is equal pay for women across the board. do you support the latter? >> i do not, because it has been illegal in this country to discriminate and pay women less money than men based on the work and the jobs they've done, so adding in another government mandate actually could hurt women in the sense that they don't have a lot of flexibility with some of the things that they want. contrast issues are very complicated. that's why it's difficult to understand exactly what's going on with the women's soccer team versus the men but people want individual freedom and flexibility with their work, and this amendment you are talking about that chuck schumer wants to push through actually provides fewer options for women and men in the workplace, and again, it has been illegal to discriminate against women and to pay them less money for years. you are not allowed to do that as a company so the amendment is unnecessary. stuart: senator schumer has invited the whole team on to the
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floor of congress. >> right. stuart: it seems to me he's coopted them for the democrats, he's weaponized the team against president trump. >> seems like the team captain has also done that. she says i don't think that anybody on my team would want to go to the white house, clearly hasn't asked any of them, whereas the white house represents everybody. chuck schumer represents the democratic party in the senate. it's one thing if they want to go there and advocate for policies that they think benefit women, but it's another to say that they are representing team usa while denying an invitation to the white house and going and playing politics with chuck schumer. i think that's pretty frustrating for people who want to enjoy soccer and root for team usa who may have political differences and real differences not based on discrimination or sexism, but on real things. they want to be part of the team but when the team captain says i'm not going to go to the bad word white house, then accepts an invitation from a very partisan political figure in the
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senate, it really kind of tears apart the unity behind the soccer team. stuart: absolutely it does. what about other members of the team who may not have the same politics as the team captain? it seems like the flareup between aoc and speaker pelosi is off and running again. there's some tweets going backwards and forwards. aoc has fired back at speaker pelosi using speaker pelosi's own words. a glass of water could have beat a 20-year incumbent. the green dream or whatever. their public whatever. those aren't quotes from me, they're from the speaker, having respect for ourselves doesn't mean we lack respect for her, it means we won't let everyday people be dismissed. this is a real big fight. >> very personal. it's not just about differences in policy. the left is having a civil war, it's out in the open, it's on twitter. there's two differences here. nancy pelosi's job is to try and govern, to put legislation on the table in the house and get it passed and to be able to make the argument that look, mitch mcconnell and the senate with
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the republicans aren't willing to do anything for the americans who voted us in in 2018. whereas aoc is more of an activist and less interested in actually governing but putting big progressive leftist government ideas on the table to try and change the culture, to really cultivate this narrative and the people who actually say that they agree with her, young voters, for example, the millenial generation, to change america overall in the public sentiment, not just counting votes in washington. so nancy pelosi is correct when she says the brand new caucus is very far left young freshmen, only have four votes when it comes to the house legislation but when it comes to the cultural fight, they have millions of twitter followers, they have hours upon hours, hundreds of hours of media oxygen being taken up with the fight between the establishment and the new guard, so to speak. so it's a cultural battle but also one that nancy pelosi is trying to keep in check to get things done in the house. stuart: it's ironic that aoc may actually contribute to a second
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presidential term for donald j. trump. >> that's absolutely true. that's a whole other segment. i will be back to talk about that. stuart: thank you very much. good stuff. all right. it's the end of the road for the iconic volkswagen beatle. the last one rolls off the assembly line at the vw plant in mexico this week. it goes on display at a museum in germany. volkswagen has been making the beatle since 1938. the people's car. instagram cracking down on cyberbullies. it's using artificial intelligence to stop harassment on the site. tell you more about it after this. ♪ so are you feeling?
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stuart: facebook, instagram rolling out new anti-bullying features. lauren simonetti is here to tell us what they're doing. lauren: they are using artificial intelligence. it's like pre-hate. if i were about to write stuart, that tie's ugly and i don't like your hair, instagram would say are you sure you want to post this and give me the option to
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back down. obviously, most people wouldn't back down but the option is there. the second thing is they are allowing you to restrict who follows you and who sees your instagram posts. therefore, a bully wouldn't have access to you. that's different than blocking. often, especially when we talk about teenagers and bullying, if you block someone, that's an escalation sometimes of the bullying so this gives people another route. stuart: i think this is very important, because this is instagram, this is where youngsters go to communicate. lauren: bullying -- stuart: it's a big problem. lauren: -- is on instagram what trolling is on twitter and what fake news is on facebook. it's a major problem. there are fake accounts being generated that specifically target teenagers. we are looking at the stock, i just want to point out it is up today. nice gain as is the nasdaq and s&p. facebook owns instagram and that is a positive. 1% pop.
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they are trying to combat a major issue on their site. this is where generation v is. it's a huge problem. stuart: good stuff, i've got to say. thank you very much indeed. iran is threatening to go further in breaching the nuclear deal. so what is our policy towards iran? do we just contain them, attack, what do we do? we will ask senator john barrasso that question. a number of people caught crossing the border illegally dropped big-time in june. looks like the president's tough line on immigration may be working. good story. we of course are on it. ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster.
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the hartford, based on their claims experience. - try the hartford, if you don't, you're missing out. - [narrator] to get your free, no obligation quote and see how much you could save, call the hartford at the number on your screen that's the number on your screen. or go to the website on your screen. the buck's got your back. stuart: you know, virtually all morning, the market's been open for two hours now, we have been down roughly 100 points. that's where we are now. down one-third of one percent. i want to bring in market watcher ryan payne. welcome back. good to see you again. we have had people on this program today saying the fed's not going to cut rates at all this month. what do you say? >> yes. you have 100% odds traders are betting it's going to happen. remember with the markets it's always definitely maybe.
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definitely they are going to cut rates but maybe they won't. stuart: you don't think they will? >> i don't, because remember, the market does its best to confound the majority. when people think something's going to happen 100% of the time, be wary. also, the fed said it will do what it takes to sustain the rally. that's very vague language. last i looked, economic data keeps coming in better and better, especially the jobs number last week, so it will be very hard for the fed to justify a rate cut here. stuart: you are saying probably no rate cut this month. and are you also saying we don't need one this month? >> exactly. i think that's the thing that, you know, keeps coming in better and better, the economic data. economists always discount the market so far this year just like analysts keep discounting earnings. for those two reasons, yes, as long as the economic data is strong, there should be no rate cuts. stuart: what about the second half of the year? we just got into it as of last week. what about profits? because that is really the driver of the market, even more than interest rates, i would
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say, profits. where are we going with profits, second half of the year? >> i'm wildly bullish. it goes back to what i was just saying. analysts have 0% expectation this quarter for earnings, 0% earnings is what they are expecting. remember the last quarter they said negative earnings. we didn't get negative earnings. my guess is surprises will be in the positive again, there will be another catalyst for stocks. stuart: how much of an increase year on year, the second half of the year, how much will profits be up compared to the second half of last calendar year? >> they could be up a lot less but remember we had that big tax stimulus last year. now we are getting back to a more normal increase in earnings. stuart: which would be? >> 3%, 4%, which is a little low but again, with expectations maybe going up more than what analysts think it could be better than that. i think good news in general will be a catalyst just because we are expecting not great news in terms of earnings growth. stuart: does the market go up in lockstep with profits? so if you get a 4% increase in profits compared to last year, you get a 4% jump in stock prices? >> i say even higher just
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because right now, think about it, you have $8 trillion sitting in savings accounts right now. there's like a powder keg. investors have been getting out of the market this year even with the s&p up 20%, you've had money going to the bond market in droves which i think is a real issue, i talked about that before. my fear is if you are sitting on the sidelines right now, you know, economic data comes in better, earnings come in better than expected, then all of a sudden it's like man, i got to get in this market. you get everyone coming in at the same time and that should melt the market up much more than earnings growth. stuart: you are still talking about a melt up as a possibility later this year? >> absolutely. stuart: what is this $8 trillion in savings accounts? that's like bond funds and bank savings accounts and cds, all that kind of stuff, isn't it? >> that's not even bond funds. bond funds, that's a whole other story. if you just look at cash or money market funds right now, $8 trillion. stuart: $8 trillion? >> earning under 1% on average which is just insane. stuart: that's an enormous amount of money. we've got a $t20 trillion econoy
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and $8 million in savings cash accounts? extraordinary. >> after 2008 people were so, so fearful they never got back into the market in a big way. in fact, stock ownership is down about 10% the last decade. stuart: ryan payne says a melt up could be coming, because that $8 trillion will move en masse into the market. >> you heard it here first. stuart: i heard it right from you, son. all right. ryan, good stuff. we appreciate you being with us. thank you. back to my editorial, which i delivered at the top of the hour. bernie sanders and aoc unveiling their new green deal, a little later today, actually coming out about 12:00 noon. this comes after president trump blasted the original green new deal at an event last night. watch this. >> well, we're focused on practical solutions more than 100 democrats in congress now support the so-called green new deal. their plan is estimated to cost our economy nearly $100
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trillion, kill millions of jobs, it will crush the dreams of the poorest americans and disproportionately harm minority communities. i will not stand for it. we will defend the environment but we will also defend american sovereignty, american prosperity and we will defend american jobs. stuart: we are going to bring in senator john barrasso, republican from wyoming, who was with the president at that event yesterday. mr. senator, can you give us a succinct answer and tell us what is the president's version of a green new deal? >> well, i will tell you, stuart, the green new deal is a big green bomb that will blow a hole in our strong and healthy and growing economy. the president is right. you need to have economic growth at the same time that you have respect for the environment and we have seen that with this administration, getting the
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balance right. it's not one or the other. you can have both. you need to have both. and the best way to have a clean and safe and healthy environment is to have a strong growing and healthy economy. stuart: i see this as a political problem, because all round the world, when climate change legislation has been voted on, it's been voted down because a lot of people do not wish to sacrifice for some vague idea of a gain tens of years into the future. i don't think people are prepared to sacrifice for climate change. what say you? >> well, i agree with you. there are things we can actually do and are working in a bipartisan way to address the kind of research that is needed that can be deployed all over the world to help with issues of carbon dioxide. but you cannot continue to punish those people who provide energy for the world, those people that make jobs.
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you can't send the lifeblood of our economy over to china, because the green new deal proponents, they are climate alarmists. they want to act dramatically and unilaterally and immediately, and those are the things that would hurt our economy so much. the green new deal, it's unworkable because as you point out, the economy for our country, only 13% of the world emissions come from the united states. it's unaffordable. the cost to taxpayers is astronomical, almost $65,000 a year, and it is unpopular. even the unions oppose it, stuart, because they realize how devastating the impact would be on the workers here in america. stuart: can i just briefly talk about iran. the iranians are going to keep enriching more uranium. you just got back from a trip to the mideast. can you define america's strategy? is that containment? is that what we're trying to do
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with iran, contain them? >> we want them to change their behavior. the sanctions have been working. they are biting. we have seen 40 years of bad behavior in iran. we know that iran with a nuclear weapon makes the world less safe, less secure and less stable, so they have a choice. economic collapse or change their behavior. i would rather do this diplomatically than militarily, but what i heard, and i was on the "uss abraham lincoln" off the coast of iran where we have 5,000 sailors doing incredible work on behalf of the united states, we are displaying strength. people in the region are happy the president didn't take military action and that's actually helped galvanize support in the region against iran. iran cannot be allowed to have a nuclear weapon, but that is one of the things they are threatening. the sanctions are working and the president of iran is at an all-time low in popularity because of the impact of the
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sanctions on their economy locally. stuart: got it. senator john barrasso, republican, wyoming, thanks again for joining us this morning. appreciate it. >> thank you, stuart. stuart: yes, sir. for the first time in six months, arrests at the u.s./mexico border have fallen. liz, give me the numbers. liz: really striking dropoff, down 30%, apprehensions at the border, now down to around 95,000. we know the main number was a 13-year high and now the analysts are saying well, it's because of the hot summer months, seasonally, that's when illegals tend to come in lower numbers. not true. the rate of dropoff is double what it is in prior years, even with the summer months. so you know, illegals are coming in on buses, they are coming in on the tops of trains. so what is happening? it's the trump tariff threat, it's mexico stepping up with national guard at the border, it's also mexico keeping central americans inside mexico as they try to apply for asylum.
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the dropoffs, 32% drop. stuart: it's working. good. let's update you on the 2020 candidates, democrat candidates. california congressman eric swalwell, he's out, dropped out. and liberal billionaire tom steyer announced that he is jumping in to the race. one out, one in. next case, star pitcher justin verlander is making explosive claims against major league baseball. he says the league's juicing the balls to increase home runs. darryl strawberry on the show next to react to that. ♪
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stuart: you know, to a casual observer, it seems like there is a home run festival in major
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league baseball right now. the home run derby last night, there were 23 home runs from pete alonso in the final round. all-star pitcher justin verlander says there's something going on here. he says the league is juicing the balls, making them bouncier, lighter, even smaller, all to get players to hit more home runs, and there has been a torrent of home runs this baseball season. so why don't we bring in a baseball legend, the author of the book "straw, finding my way," darryl strawberry joins us now. second or maybe third or fourth appearance on the show. welcome back. good to see you again. >> all right. good to see you, too. thanks for having me on. stuart: you think there's any truth in verlander's accusation that the league is juicing the balls? >> well, i wouldn't know because i'm not hitting, but i can tell you one thing. i think the ball parks are just a little smaller than they used to be and i think the guys are a
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lot stronger. i don't really think they're juicing the baseball, but like i said before, i really couldn't tell because i'm not facing any pitchers. i think pitching is not what it used to be, and you know, guys get a better chance of hitting home runs when your pitching isn't as well as it used to be. stuart: wait a second. you say pitching is not what it used to be? what do you mean by that, darryl strawberry? >> what i mean by that, you have a number one and number two starter. i think back in the days when i was playing, you had a rotation of five guys that were pretty good, that could be your number one starter. i think when you get to the number three and number four and five in the rotation, it's not as good and i don't think bull pens are really good. so you had guys coming out of the bull pen that can really close hitters down but i don't see a lot of that. like i said before, i just really think the ball parks are a lot smaller than what they used to be. stuart: i have to bring this up because there is a little talk, a few whispers here and there, that maybe performance enhancing drugs have come back. that's why we are seeing so many
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home runs. you heard anything like that, see any truth in that at all? you're laughing. i guess not, huh? >> i don't think that's the case. i mean, i think testing has done real well for major league baseball. major league baseball is very strict about testing players. i don't think that's the case. like i said, i think guys are a lot stronger and i think the ball parks are a lot smaller than they used to be. when you go to some of the different cities, ball parks are not as big as they used to be. you know, players got a better chance of hitting home runs. stuart: i know this is not your sport, but i'm going to ask you anyway. what's your take on equal pay for the u.s. women's national soccer team? that great team that's now back in america? you for it? >> equal pay so far as what? what are you saying? are you comparing it to baseball players? stuart: no. equal pay for men and women within the world of soccer. >> well, i think equal pay is great. i mean, the women deserve -- women athletes are amazing and
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they deserve to be paid well for what they do. i think a lot of times people don't understand sports is hard, no matter if you're a man or woman. you should be paid for what you go out there and do because you give your body away and you put so much effort and time into working and training and becoming the best. stuart: i think you should be paid according to the revenue that you bring in, not just a blanket rule men and women have to earn the same. you know what i mean? >> it's not about earning the same pay as a man but i mean, i think they should be paid fair. women are great athletes and they need to be paid for what they do. stuart: now, you have been very open about your past drug use, and i know that now you travel the country talking about the opioid crisis. what's the message that you are delivering around america today about opioids? >> well, i go into the schools and i go into public schools to really educate the kids about the awareness of drugs and the dangers of drugs. i think it's important that we get back to educating our
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younger people, you know, vaping and all these different things that are coming out, marijuana is coming out, and so many kids are starting there. if adults want to take it for medicine, i understand. but as a kid, i don't think you need to be starting to experiment with marijuana at such an early age for yourself, because it leads to a lot of other things. you know, i try to go back into the schools and educate the kids to stay away from those type of drugs and really stay focused on their education and sports or whatever you're going to be and really let the kids know with the epidemic we have today in america, it is insane what has happened with the opiates and heroin addiction across america. i get a chance to travel the country and speak in a lot of different places and see so many kids lose their life because they made a bad decision. stuart: you're a good man. it's great to have you on the show looking so good with a big smile like that, you can come back any time you like. darryl strawberry, decent guy. >> thanks for having me. stuart: sure thing. see you soon.
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all right. you can watch the mlb all-star game, it is tonight, of course, 7:30 eastern time and you can watch it on fox. steve hilton, frequent guest on the show, he's taken the plunge. he's applying to be a united states citizen. we will tell you why he's doing that after this. ♪ xfinity mobile is a wireless network
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stuart: steve hilton is with us, the man on the right-hand side of your screen, ladies and gentlemen. the other guy with the british accent. he's of course the host of the "next revolution" on the fox news channel. the news is that mr. hilton is finally going to become a u.s. citizen. all right, steve. i know why i became a citizen. why are you joining the club? >> well, thank you, stu, for giving me the chance to explain. i should say, i'm just at the beginning of the process. we'll see if they let me in. but the reason really is that i just have fallen in love with america, quite simply. we moved here just over seven years ago with my family. the original impulse for that was my wife's career.
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she worked at google at the time. so we moved to silicon valley to make life a bit easier. since then, i have just had this incredible opportunity in this country. i have been able to teach at stanford university, one of the best in the world. i started a business. now i have this role at fox. it's just completely incredible. i just think it's not just that personal opportunity. i've learned more and more about america, the way i put it is the more i learn about america, the more i love america. really trying to understand the idea behind america, the founders, the constitution, all of that. and of course, the welcome from the people. all together, i just feel not just literally it's my home, i feel at home in a way i wanted to mark officially by becoming a citizen. stuart: quick point. i think you and i share this. england was and still is i think a class-based society. america is not. i found that extraordinarily liberating. i think you and i are from the same, i don't know the same social class, but i think we've
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got pretty much the same background, haven't we? >> yeah. that's exactly right. the family i grew up in was not at all wealthy or entitled. i made my way in england but it's here in america that you really get that sense that if you put the effort in and you have the right attitude, anything is possible. and that is so different and unique. stuart: it's a wonderful thing. it really is. i have to bring up britain's ambassador to the united states, kim darroch who says nasty things about the president in leaked e-mails, has called the administration inept. the president has responded. here's the tweet. the whacky ambassador to the uk foisted upon the u.s., very stupid guy, should speak to prime minister may about their failed brexit negotiation and not be upset with my criticism of how badly it was handled. we got that. but you've got your own story about the ambassador. >> yeah.
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the experience with this guy, when we entered government in 2010, we prepared for that. we knew that the eu had a really big role in policy and regulation for the british government. this guy, kim darroch, at the time was the eu ambassador. he was britain's ambassador to the eu. when we actually got into ten downing street we realized that it was much worse than we had imagined and prepared for, the degree of the control that the eu had over british policy. so i thought let's get to the bottom of it, let's find out how it really works, how the wiring of the eu affects the uk. so i said let's go to brussels, the headquarters of the eu, meet all the people and understand it. on the way over, they sent kim darroch, the ambassador, to escort if you like me and a couple of colleagues on the train from london to brussels. he gave us a briefing, said this is how it all works, this is how the bureaucracy works, the european parliament, this is how it interacts with the
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government, these are the procedures and processes. we thought what a great guy. he gave us the whole story. what a useful briefing. we then spent days in brussels actually meeting the bureaucrats and all the people in the parliament. it turned out that every single thing that the ambassador had told us about how the eu worked was wrong. he was there trying to represent britain in the eu. he didn't understand how it worked. it was such a joke. stuart: well, plug away and become a citizen. it really is worth it. steve hilton, everybody. he's a good man and he's about to become an american. good man. see you later. more "varney" after this. wr to invest in all the things that move us forward. every day, invesco combines ideas with technology, data with inspiration, investors with solutions. because the possibilities of life and investing are greater when we come together.
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. . stuart: an important guest coming up on fox business tonight. kennedy will be speaking with congressman justin amash. now he just left the republican party after calling for president trump's impeachment. so that is a very interesting guy to have on the show. he leaves the republican party. but he is on with kennedy tonight. that will be at 9:00 eastern by
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the way. quick check of the market the before i leave you. the dow industrials down 90 points as we speak. one quick thing, my thanks to david, ashley, liz, to all of my colleagues, for doing hard work while i was sunning myself neil. neil: please tell me you were clothed. thank you. we're remembering a giant in this world. ross perot passing away at the age of 89. we look back at the career of a third party candidate thought to be going nowhere but got 19% of the vote. all that preaching very unpopular things like deficits and debt. his charts made him a hero. today, we look back on his mission. meanwhile iran is continuing to act up. so is the white house, now ready to react to that. bernie sanders and alexandria ocasio-cortez are calling for a climate emergency no matter what nancy pelosi says. why the h


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