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

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will hammer them on that. maria: you're right. we will cover it all tomorrow. great to have everybody today. thanks for joining us. that does it for us. i will see you 2:00 for the fed. we are expecting a quarter point cut. "varney & company" starts right now. stuart, take it away. stuart: good morning, maria. good morning, everyone. apple is in transition, moving away from technical innovation, moving towards services and investors love it. revenue from fee subscriptions, the service sector of the business, now running almost $1 billion a week. that side of the business is doing very well. iphone revenue, not so shabby. coming in at almost $26 billion. here's something new. apple will co-brand a credit card with goldman sachs. the stock this morning premarket, nice gain there, up about eight bucks at $216. today's fed day. a rate cut of a quarter point, very widely expected. i think it will be the first of many rate cuts. that is my opinion and i'll
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explain it later in the show. if you combine apple's stock surge with the expected rate cut and you have a high opening, higher opening for stocks across the board today. the dow is looking for a 60-point move up. s&p up five, nasdaq up about 30. now, the political story of the day, very obviously, the debate. the socialists, senators warren and sanders, emerged as the clear front-runners at least for last night. so-called moderates, klobuchar, mayor pete, delaney and ryan had very little impact. beto all but disappeared. last night, socialism rules. tonight, make or break for moderate joe biden. one small point. did you know that the debate was on at the same time as the finale of "the bachelorette"? what kind of counter programming is that? "varney & company" is about to begin.
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i get a little bit tired of democrats afraid of big ideas. so please don't tell me that we cannot take on the fossil fuel industry and nothing happens unless we do that. >> you don't have to yell. all i'm saying -- >> democrats win when we run on real solutions, not impossible promises. when we run on things that are workable, not fairy tale economics. >> i don't understand why anybody goes to all the trouble of running for president of the united states just to talk about what we really can't do and shouldn't fight for. >> if we embrace the far left agenda, they are going to say we are a bunch of crazy socialists. if we embrace a conservative agenda they will say we're a bunch of crazy socialists. >> i think if we are going to force americans to make these radical changes they're not going to go along. throw your hands up. stuart: those are some of the highlights, just a few of them,
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from the debate last night. liz peek is with us. so too is brad blakeman, former deputy assistant to george w. bush. i say the socialists won, the two of them, warren and sanders. the rest, the moderates, barely showed. >> i actually think the moderates did what republicans would have done if they were on that stage, which was basically call out these really sort of extreme policies of bernie sanders and elizabeth warren for the sort of improbable dreams that they really are. they pressed them over and over again on how they're going to pay for them, how they're going to actually work. what makes me crazy is that nobody points to actual real-life examples of, for example, elizabeth warren's wealth tax where it really hasn't worked. john delaney tried to bring that up and she dismissed it out of hand. these people are zealots. i woke up this morning thinking what is it about elizabeth warren that makes me anxious. it's because she is a zealot. all she talks about is the millions of billions of profits coming from insurance companies. she's not talking about how to
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make health care better or americans healthier. all she wants to do is get rid of corporate profits. i tell you what, i think these people are dangerous, dangerous, dangerous. i think the moderates last night, i disagree with you, i think they showed well. i think they really kind of came across as the last voice of sanity in the democratic party. stuart: all right, liz peek. what are you doing tomorrow? wait a second. i say the socialists ran away with it, the moderates didn't show. brad, what do you think? >> i agree with liz. stuart: oh, for god's sake. >> i didn't watch. i was watching "the bachelorette." i will say this. liz, you hit an important point. while the moderates didn't help themselves, they took down bernie and warren and exposed them for what they are. unsustainable and unaffordable policies. they would not be shucked for one second off their position. they were totally exposed and i think out of anything you will take away from that, bernie and warren were on a stage where they could not explain why their
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policies are best for america and affordable for america. >> exactly. stuart: i'm going to move on to a subject where i think there's going to be wide agreement. here's another highlight from last night. the moderator, don lemon. referring to the president's bigotry. roll tape. >> president trump is pursuing a strategy based in part on racial division. how do you convince primary voters that you would be the best nominee to take on president trump and heal the racial divide in america? senator klobuchar. what do you say to those trump voters who prioritize the economy over the president's bigotry? stuart: wait a second. that is a subjective judgment, a political judgment. you say someone's a bigot, that's a subjective judgment. he's supposed to be a journalist. he stated his subjective opinion as a fact. that's a terrible thing. >> absolutely. he's a shill. he's a shill for the dnc, for
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the delusion collusion against trump. if anything, when you use your power, of journalism which is supposed to be the fourth estate, to check the balance of power, and you make subjective statements of fact that are not fact at all, you basically ruined your profession. you degraded your profession. this is what -- it's systemic. stuart: no, no, you see it in the "new york times." he's labeled a racist. the racist tweet, et cetera, et cetera. hold on for a second. i want to get to something else, just away from the debates. individual stocks. a lot of them are really moving this morning. first of all, do you remember general electric? >> oh, yes. stuart: okay. well, it's now at $10.87 a share. it's up 3% this morning. nice forecast for the future. that helps. look at boeing. regulators reportedly found a high risk of a similar cockpit emergency happening within months of the first boeing 737
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max crash. the stock still down there at $348. let's get back to apple. making money, even though iphone revenues are down. tell me more. susan: iphone revenues fell 12% in the quarter but ended two quarters of sliding sales, but this is the third straight quarter that we have seen iphone sales down, but a transition is well under way, as you know they are moving away from being just a hardware phone seller. they want to be a services seller in the future. that's what they saw, record services number, $11.5 billion from the quarter, a slight miss, but they say it's because of the strong dollar effect, especially when you're looking at currency turns and bringing back all this money from geographies around the world. on the earnings call, they talked about apple, the apple card launching next month. that's partnered with goldman sachs. also, the mac book pro is being made and manufactured here in the u.s. they said they want to keep it here in the u.s. however, they didn't say whether or not they actually will. that's important to note as
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well. but china is a big story because market improvement in china. stuart: okay. got it. thanks very much. the stock is up 3.8, nice gain there. this afternoon, the fed's widely expected to announce that quarter point or maybe more, an interest rate cut. it will be the first in a decade. liz peek, obvious question, why are they doing this? wait, wait, wait. wait. wait a minute. the economy is doing extremely well. unemployment at record lows. and we've got the stock market as record highs. since when did you cut rates in that situation? >> a couple things. one, they trying to undo the damage they did last year by hiking rates prematurely and because they didn't recognize what was going on in the rest of the world, that the rest of the world was slowing down, that it was going to impact the united states, and the rate hikes last year definitely cut into our growth. i think now they're looking at around the world, germany manufacturing almost in recession, china slowing down, probably more than we really actually know based on their statistics, and they don't want
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to make the same mistake again. that coupled with the fact they can't get to 2% inflation gives them an excuse, if you will, to cut rates. look, what powell has said is he wants to extend this era of progress and growth and expansion, and i think that's what they intend to do. stuart: i think the europeans and japanese have declared financial war on us and we have to lower our rates to keep them in check. my opinion. >> we can't be the only person out there with reasonable sort of real world -- stuart: you got it right. >> destroys currency markets and all sorts of things. stuart: finally. agreement. >> we can go home happy. stuart: liz, thank you very much indeed. by the way, this afternoon, 2:00 eastern time, i'm joining charles, neil and maria and lou. we will discuss the rate cut which we confidently predict at 2:00 p.m. this afternoon. check futures, please. we are going to go up 60 odd points on the dow, but please
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remember, 55 of those up points for the dow are accounted for by apple. north korea firing two short-range ballistic missiles overnight. it's the country's second weapons test in less than a week. we have the story for you. and at 2:00, two guys traveled to venezuela, cuba, north korea, off they go. they prove, this is the name of their booshgs socialibook, soci sucks. that's not me, that's them. they went to bars in each of the three countries and drank the beer. on that basis, they say socialism sucks. can't wait for that segment. it's next hour. another sign of a booming economy. this is important and not yet reported. new data shows wages are growing much faster than previously reported. we are talking billions of dollars in extra income. "varney & company" continues. let me ask you something.
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stuart: north korea conducts its second missile test in less than a week. would you call this saber rattling? ashley: it's the fifth weapons test since that meeting in vietnam where they were unable to get any headway in nuclear talks between the two countries. this was two more missiles, they traveled about 155 miles from a tiny peninsula in the southern province of north korea. north korea is apparently upset about planned military exercises coming up between south korea and the u.s. they are upset about that. they are upset they are still under very strong sanctions and can't seem to get anywhere in those nuclear talks. there are no talks scheduled. and maybe china, you know. think about this, pushing north korea to continue to do this is a distraction for trade talks while they also face their own big problems in hong kong. stuart: i think that's what's going on. ashley: there's a little of that, too. stuart: thanks, ash. look at this. very important headline. "wall street journal." 99% get a bigger raise. there's a subtitle here. it reads as follows.
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new data show much faster growth in wages and incomes. that's a revelation, isn't it? andy puzder is with us, former ceo of the company that runs carl's jr. and hardees. welcome to the show. >> great to see you. stuart: that's a blockbuster report. wages, incomes growing much faster than we thought? >> spectacular, actually. they grew 5.5% year over year in june, after inflation that's 4.1%. bureau of labor statistics has been reporting 3.1% so this is a huge, huge number. just to put it in perspective, wages have increased over $150 billion more in the first six months of 2019 than they did in the entire year of 2016. so much for obama's secular stagnation. stuart: wait a second. in the first six months -- >> first six months of this year, $150 billion more than the entire year of 2016. stuart: that's why we saw such a big spike in consumer spending
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on all kinds of things. >> they are saving more money. 8.1% savings, up to 8.1%. prior to the last two recessions, savings was at 5%. it's even above where it was prior to these recessions. stuart: yet that spectacular series of numbers, i have only seen it in the "wall street journal." i have not seen it in the "new york times" or "washington post." maybe it's there, i haven't seen it. it's on the front page of the "journal." >> that's where it should be. the "journal" is very honest about this stuff. we have political reporting by some of these other news outlets that's disappointing. american workers know, we will get to the election, the democrats will be arguing who you going to believe, me or your lying wallet. american workers know they have more money. they are spending more money. they are saving more money. they are earning more money. they are very optimistic about the future. you listen to the debate last night you would think the world's coming to an end. stuart: you would. andy, i know you were a ceo of a company. i want you to listen to this from bernie sanders from the debate last night. >> my favorite guy.
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stuart: i'm sure. he took a direct shot at corporations. roll tape. >> anybody here thinks that corporate america gives one damn about the average american worker, you've been faking. if they can save five cents by going to china, mexico or vietnam or anyplace else, that's exactly what they would do. stuart: well, ceo, what do you say? >> bernie sanders, he put me as number three on his enemies list. i don't know if you saw that list. which was kind of an honor. i like to brag about it. but the fact is he's the biggest hypocrite in politics. he was on that fox news town hall, he said i'm not going to apologize for making money on my book. if you want to make money, write a bestselling book. what a great system, right? then comes time to pay taxes on the millions of dollars he makes, he personally takes every deduction to lower his taxes, then he takes advantage of the tax rates and his explanation is i paid what i owed. you know what, so did apple and netflix.
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all the companies you criticized. then his employees want $15 an hour which they're not getting paid. he's not paying them $15 an hour and he finally agrees to pay them $15 but reduces their hours. of course he did. i mean, i can't believe anything he says. stuart: i grew up with people like that in the 1950s in england. ranting socialists who have no sense of humor who are permanently angry. >> he really doesn't understand anything about how the economy works. he raised his hands, swears. he reminds me of larry david without the humor. stuart: that's good. that's good. that's good. you remember the ranting socialists. ashley: oh, my god. '60s and '70s, yeah. stuart: andy puzder, you are going to stay. i want to look at futures again. let's prep everybody for the opening of the markets. we will be up, not that much, but we will be up. some of the world's biggest
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celebrities flocking to a very fancy italian resort for a climate change summit. how do you think they're getting there? i'll tell you, in private jets and gas-guzzling yachts. great sorry. i hate to see prince harry involved. hmm. exactly. liberty mutual customizes your car insurance, so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ dto experiencer gthrilling performance. now, at the lexus golden opportunity sales event. get 0.9% apr for 60 months on all 2019 models. experience amazing at your lexus dealer. quadrupled their money by 2012?
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stuart: i can say it but i can't
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spell it. hypocrisy. leo dicaprio, prince harry on your screen, president obama, they all went to a google summit in private jets to talk climate change. can you add anything to this? ashley: yeah, because they are all sitting around at this snooty resort in sicily, all slapping each other on the back but to your point, 114 private jets flying into italy. the "new york post" did a nice number crunching exercise and said from l.a. to palermo, 114 private jets, 100,000 kilograms of co2 into the air and that doesn't include the yachts. barry dillard's enormous yacht has a 2300 horse power diesel engine. hypocrisy. i can't spell it either but it fits. stuart: the man on your screen, prince harry, should not be involved in politics. ashley: they are not supposed to be political. stuart: the british royal family must not involve in politics. that's the fastest way the a
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republic you can find. ashley: how about skype? stuart: now, this is for you, andy. chicago's rule regulates how companies handle scheduling. now employees have to have two weeks' notice of a scheduling change. that's a regulatory nightmare for any employer. >> very difficult. you may actually have a very busy time for your business where you can't staff and you can't staff because you had to give everybody two weeks' notice. this could happen in not only fast food restaurants, you could have a big bus full of people pull up but in hospitals. you're in the middle of surgery and the nurse wants to go home, you can't make her stay. stuart: it doesn't make any sense. it's just an attempt to pander to workers. look, i can see if you're a regular person and your schedule has changed dramatically frequently, that's a very difficult thing to live with. but an employer rule like that is an invitation to litigation. >> when you reduce business's profits or their ability to
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profit, you reduce growth, reduce jobs and reduce their ability to increase wages. we have just seen with president trump if you don't do those things, workers can make a lot of money and there's plenty of jobs. stuart: right again, puzder. we will open the market in about, what, four minutes, five minutes, it is. we will be up across the board but not that much. we'll be back. my body is truly powerful. i have the power to lower my blood sugar and a1c. because i can still make my own insulin. and trulicity activates my body to release it like it's supposed to. trulicity is for people with type 2 diabetes. it's not insulin. i take it once a week. it starts acting in my body from the first dose. trulicity isn't for people with type 1 diabetes or diabetic ketoacidosis. don't take trulicity if you're allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2.
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stuart: well, a republican senator wants to make social media less addictive. how? susan: josh hawley emerging as a top republican critic of major tech. he wants to introduce a bill aimed at reducing addictive features, that includes youtube's auto play feature, facebook and twitter's infi night scroll and snapchat's streaks. hawley, well, at least he's not trying to break up the big tech like you heard from elizabeth warren. stuart: wait, wait, wait. let me interrupt. i don't do all this social network stuff. i don't know whether it's addictive or not. bear in mind the measures the republican senator wants to take, do you think it will stop it? >> no, because it's hard to define what is addictive. some would say like buttons are addictive as well so why don't you get rid of that, or retweets. it's very hard to define. he wants to empower health and
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human services and the fcc. stuart: it's for everybody else, not me. the opening bell is ringing. i knew it would. we've got five seconds to go, this market will open. this is wednesday morning. it's going to go up a little bit at the opening bell. here we go, off and running and up 40 points right from the get-go. that's just a fraction of 1%. but we are up. 50 points. leave it at that. the s&p 500, where is that? it is up a tiny fraction, three points, .1%. the nasdaq composite, i can't believe it's unchanged. that's almost out of the question. we'll move on. the ten-year treasury yield is 2.05%. same as it was 24 hours ago. now, look at apple. this is the big mover today. it is up $9, $217 per share. that move in apple accounts for 55, 60 dow points. 60 dow points. in other words, without apple, the market would be down.
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joining us, eddie gabor, joel shulman, susan li and ashley webster. i will start with apple, making money, even though iphone sales were actually down. so eddie, would you buy apple on the strength of its transitioning to a service company? would you buy it at $218? >> i think apple, the most impressive thing about them is how they diversified their business and saw the iphone sales possibly going down. now they have services and wearables. $22 billion in revenue on the wearable side. i love apple. for me, apple personally is not a trade, it's a long-term hold. i think their future is bright. their valuations are not nearly as high as some of the other stocks. stuart: by the way, at $217 a share, they are $3 away from a trillion dollar valuation. susan: yes, that's right. a trillion dollar valuation once again. look, a lot of people took a lot of positives from this earnings report so for the first time since 2012, iphone accounts for
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less than half of the sales they made in the quarter but the transition is alive and well, for instance, they are going to launch the apple pay card we will talk about next month as well, and some would say the guidance is higher for september quarter, very important, since that's when they usually launch their new devices. they are bullish that sales will increase because of new device introductions. that's not a bad thing. stuart: that's a nice gain, 4.5%. >> 48% increase on wearables. what's interesting is they have grown year over year, 1.4%. when you contrast that to the other trillion dollar company, microsoft, they are growing ten times more, 14%. margins are higher with microsoft, your favorite company, margins are going higher with microsoft, so when you look at other trillion dollar companies of which we have one other, it's well dominated by the other company but wearable growth is strong. i'm helping you out. stuart: thank you very much indeed. susan: $200 billion in cash on the balance sheet. stuart: i'm glad we mentioned -- >> one other thing. one other thing. when you look at microsoft, again, not to contrast, but two
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trillion dollar companies, one has a ceo that's earning $30 million, $40 million a year. the other is earnings four times that. when you look at these companies, apple is running about $140 million per year. year over year consistently -- stuart: tim cook? >> yeah, last three, four, five years. i look at these two companies, entrepreneurial companies, by the way, much lower compensated. stuart: another plug for microsoft. >> i'm helping you out. stuart: what are you doing tomorrow? susan? susan: yes. stuart: do you remember general electric? general electric is up this morning. the stock is 40% this calendar year. >> it's a 130-year-old company. this thing has not had sales increases in years. the only way they are making profits now is they're cutting employees. this is a company that's going -- that's been slow or negative growth for decades and it's not going anywhere. stuart: but if i had bought it
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january 1st, i would have -- >> 37%. if you went back three years you would be negative. go back five years, more negative. stuart: okay. >> it's easy to go high when you are at rock bottom. stuart: so true. news on boeing this morning, according to "wall street journal" regulators found a high risk of another emergency happening in the cockpit. they found that out after the first crash and before the second crash. the thing is at $348 a share, way down there. do you have any comment on boeing? >> i do. they are a $200 billion company, $10 billion in cash. let's see what happens once the lawyers get through the $10 billion in cash in this litigation. they've got a lot of exposure here. they will burn through that cash for a long time. stuart: dear lord. we are up, four and a half minutes in, and the dow industrials are up 51 points. we are at 27,249. spotify. lukewarm subscriber growth, and the stock is down 4.75%.
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humana, gave a rosy forecast. were they watching the debate last night? we are supposed to be ending private health insurance and the stock is up 6%, $17. what are they missing? what am i missing? weak demand hits molson coors. is that demand for beer? i guess it would be. rosy forecast from -- susan: oreo cookie maker. stuart: down 1.2%. susan: that's not french. stuart: check gold. where is that? gold is at $1443. the price of oil, where is it this morning? oh, $58 a barrel. we are up 40 cents. how about that. i don't know what's happening in the oil market but we are at $58 a barrel. let's get back to capital one.
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new details on that really huge hack that affected 100 million customers. what's new? ashley: well, 33-year-old page thompson is the person accused of doing all of this. it wasn't that hard, it turns out, to track her down because there was a series of brags on numerous online sites of what she had done. she posted some of the stuff she had downloaded. she used to work for amazon web services. a tipster eventually contacted capital one, said you know there's someone on the internet right now that's bragging they have done this. turned it over to the fbi. the fbi was able to very quickly find the suspect's address. boom. there you have it. she's now facing charges of computer fraud and abuse and could spend five years in prison. stuart: i don't think the security of the cloud is at stake here. ashley: no. stuart: what's at stake is your employees. ashley: yes. stuart: if you've got one disgruntled employee who is doing this for whatever reason, look at the damage. 106 million people. susan: they put a number to it already, capital one says it
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will cost $100 million to $150 million in terms of cost. compare that to equifax, over $500 million. much broader, by the way, number of customers impacted there. stuart: okay. >> 200 years ago -- they took down one employee took down a 200-year-old bank. stuart: how do you find the bad apple before you put them to work? the ten-year treasury is 2.05%. we are expecting a rate cut this afternoon. it will be the first in ten years. what's your comment on this? it's baked into the market, isn't it? >> if they do not cut rates today, this will be a huge blunder and investors better wear a seat belt. number one, the fed will lose complete credibility if they don't cut rates after what they did in december which was a big mistake in not listening to the markets and raising rates. if it's priced in now they are going to drop rates and if they
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don't, again, i think you will see the market stream down and more importantly long-term i think the fed loses complete credibility. stuart: you don't care about the fed that much. >> it's not going to affect the companies i invest in that much. these entrepreneurial companies go up, go down, it doesn't matter. it's based on earnings. i think again, to the point of 25 basis point rate cut, we all know it's baked in, the language coming out at 2:00, 2:30 with the speech will be critical for driving the market the next few days. stuart: i will be covering it, by the way. susan: let me ask you this. do you think it will be one and done? because in other rate reducing cycles, it's not just one, as you know. stuart: i think, my opinion, i think you are in for a series of rate cuts this year and into next year. why? you got to keep pace with the europeans. susan: it's deflationary. we are not seeing prices go up to the target of 2%. i think that's the only reason you have to cut with a strong economy. stuart: it keeps pace with the europeans. they're killing it. they're at financial war with
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the united states in my personal opinion. >> i think if they just say they will be data dependent instead of holding themselves out, trying to predict the next two years, i think that keeps the market calm and more importantly, that's what they should be doing. cutting rates based on -- ashley: but the data is pretty good. >> earnings are coming in, irrespective of the interest rates. companies, if they can't make a profit on these interest rates, what are they doing? stuart: fair enough. let's get to beyond meat. can't get away from it. took a hit after it announced -- the stock, that is -- that it would sell more shares and it did, but now it's back to $200 a share. i don't know whether you are a beyond meat guy. >> i am not a beyond meat guy. no. stuart: wait, wait. are you? >> it's an entrepreneurial company but they have 60 million shares authorized but only about 11 million share free float. 5.5 million short. this is not trading based on fundamentals. there's no way to justify $11 billion valuation. this company coming out with
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another 2.3 million shares in issuance but this is not a company that's trading anywhere close to fundamentals. stuart: oh, ye of little faith. this is a whole new industry. >> but when you look at it, it's got a 60:1 revenue -- sorry, market cap to revenue valuation. most companies in this industry, in this food industry, are 2. when you compare it to kellogg and the other companies, what this is saying to the marketplace, you want high growth, stay away from financial services necessarily, or i.t. you go to the food industry, come up -- ashley: you're saying the fundamentals are fake. >> what's interesting, in this industry you can't find growth. people are so hungry for growth in this industry, you come up with anything. anything, in this industry. you will have a rock star. stuart: oh, it's 9:40 eastern time. you know what that means. you've got to drive all the way back to maryland. you're out of here. >> delaware. delaware. stuart: very sorry. very sorry. much closer. thanks very much indeed, eddie
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and joel. good stuff. appreciate it. check that big board. now we're up 74 points. look at that bottom right-hand corner of your screen. apple is now up $11 a share. that contributes mightily to -- what did you say? susan: are we a trillion? stuart: $220.68. if that's the price apple hits, apple is worth a trillion dollars. at that value, it's contributing well over 60 points to the dow industrials which are up 60 points. all right. a video and it's going viral as they say. one youngster learning the hard life lesson about money while playing monopoly. wait until you see how this kid reacted when he learned how much he would have to pay in taxes. i like this kid. millenials say dating has gotten way too expensive. with a lot of them saying the high costs are keeping them from finding love. believe it or not, "varney & company" is going to tackle that one. the democrat candidates
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going after president trump at the debate last night branding him a racist. a new poll shows more than half of all women agree with that assessment. kayleigh mcenany, rnc lady, what does she say about that? she's next.
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(groans) hmph... (food grunting menacingly) when the food you love doesn't love you back, stay smooth and fight heartburn fast with tums smoothies. ♪ tum tum-tum tum tums
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with tums smoothies. all right brad, once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route. obviously. retirement, we're going with a long-term play. makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know? studying my playbook? yeah, actually. stuart: yes, apple did hit the trillion dollar market valuation level. right now it's at $220.71. it's a trillion dollar company. i mean, that's an extraordinary gain. susan: they had stellar results. it was better profits, better sales in the quarter. they guided higher as well. and china is doing better, thanks to economic stimulus. that's what the cfo told me last
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night. also repricing of the phones especially in the slowing economic environment. when i asked him about the trade war and tariffs and whether or not it impacted their business, they say no, it hasn't impacted their pricing. ashley: it's a nine-month high and already analysts are piling in today, raising their price target anywhere from $243 to $250. stuart: are they really? ashley: yes. stuart: i like the credit card idea. that's a service and in comes the revenue forever. ashley: correct. susan: you can't look at apple anymore as just a hardware company. think of it as a software company that's an add-on to their hardware saturation. if you have an iphone you are obviously going to use apple pay. you will buy apple music, use apple care and other services that they provide as well. stuart: they get 99 cents a month out of me. susan: for? the cloud? stuart: cloud storage. i resent every bit of it. moving on. last night's debate, democrats, some of the candidates called president trump a racist. all right. roll tape.
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>> we'll call his racism out for what it is and also talk about its consequences. the main point i want to make is that what trump is doing through his racism and xenophobia is demonizing a group of people. >> today they are supporting naked racism in the white house. >> we live in a country now where the president is advancing environmental racism, economic racism, criminal justice racism, health care racism. stuart: they do seem to be angry, don't they. according to the latest quinnipiac poll, 59% of women agree with the candidates. they think the president is a racist. now, there's a problem for republicans. and for president trump. come in, kayleigh mcenany, trump 2020 campaign press secretary. look, almost 60% of women say the president is a racist. how do you deal with that? >> i don't believe that poll for a second. if we believe quinnipiac, hillary clinton would be president right now.
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quinnipiac has a history of -- stuart: hold on. kayleigh, i don't want to be rude, i'm not interrupting you but look, even if they're wrong by 10%, even if it was a mere 45% or 49% of women think he's a racist, that is still a huge problem for the re-election of president trump. now, how do you make people change their minds about this? >> well, first of all, sharing facts. the fact that this president has been praised by jesse jackson for being a friend to minority communities. he's brought african-american unemployment to the lowest rate in history. african-american poverty level lowest rate in history. criminal justice reform, 90% of inmates released have been black americans. historic black colleges and universities have gotten more funding under this president. the facts tell a different story. stuart: if you could reverse the president's tweets about elijah cummings, would you? >> no. absolutely not.
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because i think a lot of baltimore residents were very appreciative of this. it's like bernie sanders talking about it being a third world country, this is something democrats have said, they just haven't linked it to the corrupt democrat policies that created those results. stuart: got it. kayleigh mcenany, thank you very much. i know you're busy so i kept it short. thanks for being here. >> thank you, stuart. stuart: check the dow 30. let's see what the spread is there. we are about two-thirds down, one-third up. most of the gain for the dow is taken by apple which is up a whopping 5.5%. 78 points of the dow's gain are accounted for by apple. 78 points. without apple, we would be down. a marine veteran who was homeless going the hike down the east coast from new york to florida starting on september
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11th, 9/11. he will be carrying a 100 pound backpack. he's on the show and will tell us why he's doing that, next.
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stuart: breaking news on china trade and when the talks will resume. blake burman joins us. what have you got? reporter: statement just put out by the press secretary. let me read the end of it for you because this is where the ni news lies. the two sides discussed topics such as forced technology transfer, intellectual property rights, services, non-tariff barriers and agriculture. the chinese side confirmed their commitment to increase purchases of united states agricultural exports. the meetings were constructive and we expect negotiations on an enforceable trade deal to continue in washington, d.c. in early september. so a couple headlines out of this. the large-scale ag buy the president has been talking about that even just yesterday he called out china on for not engaging in, according to this statement, china will move forward with. secondly, the talks will continue in early september, so at least a full month away. and thirdly, the u.s. at least is describing this as quote,
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constructive. you've got to wonder with the next talks a full month down the line, and now the president openly questioning whether or not china is trying to wait him out until november 2020, just how fast these trade talks and these trade discussions might go from here on out. remember, there was a frantic pace at one point. the u.s., china, the u.s., china, back, back, back and forth. now we're hearing that we are at least a month away from the next talks. stuart: blake, so thanks very much for joining us. that's not necessarily great news on china trade and it's not had any impact on the market. we're still up, what, 56 points as we speak. let me move on to what i'm going to call a real good feel-good story for you. a once homeless marine veteran hiking down the east coast. he joins us now. hiking down the east coast. i hear you're going to carry a 100 pound backpack. why you doing this? >> well, first thing is it's all
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about leadership. i think in the community and in america today, leadership is just a thing that seems to be a dying breed. the concept behind it is to take an experience normally veterans look at in a weak perspective and put it in a strong perspective, all the things we were taught in the military we should be applying in the civilian world. the idea is saying listen, if i can get up in the morning and do 22 miles with a hundred pound pack i can give back to the community, impact people, run my businesses, make time for my daughter and you can do 1% to make an impact. stuart: you were homeless. >> that's correct. two years. stuart: two years on the street, living homeless. >> yes, sir. stuart: you got out of that and recovered whatever the problem was, you recovered and now you're doing this. you are going to be walking or hiking, i should say, 22 miles at a stretch. is that per day? >> yes, sir. every day for 65 days straight for about three months we will be doing that. stuart: you can do that? >> yeah. this is actually my fourth year. i have covered over 7,000 miles. this is our fourth year that i'm doing this. stuart: i didn't know that. why didn't you tell me? it's breaking news. so you're going to hike all the
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way down the east coast from new york to florida? >> yes, sir. central florida. stuart: how long will that take you? >> it's a three-month total tour. we have closed events and convenient vi venues, the military, the navy, couple naval stations, couple football games, old dominion, virginia tech. it will take three months in total by the time we finish up. every day we will do 12 to 22 miles a day with 100 pounds. stuart: do me a small favor. call into the show on the way down. i think you're a good guy. >> appreciate that. stuart: what you're doing is extraordinary. thank you very much for being with us. >> my pleasure. thanks for having me. stuart: all right. coming up, two economists, yeah, economists, they traveled the world visiting socialist countries and drinking beer in the bars in those socialist countries. their take-away, socialism sucks. that is also the title of their book, by the way. that's not me using bad language. oh, no, no, no. that's the book.
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these guys are on the show this morning. socialism was on full display. this is my opinion again, on full display at last night's democrat debate. bernie and warren took the spotlight. the moderates almost disappeared. more on that in a moment. liberty mutual customizes your car insurance, so you only pay for what you need. nice! but uh, what's up with your partner? oh! we just spend all day telling everyone how we customize car insurance because no two people are alike, so... limu gets a little confused when he sees another bird that looks exactly like him. ya... he'll figure it out. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ . .
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stuart: a battle for the hart and soul of the democrat party. the far left won. last night sanders and warren were the clear standouts. socialism ruled the debate. this is not good news for the democrats. middle america does not want open borders, doesn't want to end private health insurance or pay for illegals and does not want to pay more in taxes. that is where warren and sanders are taking the party. where were the moderates? amy klobuchar got lost in the weeds. mayor pete faded. "the washington post" describes him as more after clerk than a president. ouch. and beto? not that he is moderate but it is hard to see him going anywhere but out of this race
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and soon. john delaney, john hickenlooper, steve bullock, moderates all, but absolutely no breakthrough. the only standout moment for moderate tim ryan came when he failed to put his hand over his heart during the national anthem. is he now in the kaepernick wing of the party? the debate tonight is make-or-break for the moderates, because joe biden is on deck. he is the great hope. widely criticized for lackluster performance in the first debate, he will again be the prime target. in kamala harris can repeat her success, joe is in deep trouble. you can be sure radicals, kristin gillly brand, bill de blasio, cory booker, julian castro their breakthrough depends on scoring points against joe. i know it is early, 15 months before the election, the far left is running the party and
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the moderates are not. the second hour of "varney & company" is about to begin. ♪ >> two things, they will be better because "medicare for all" is comprehensive, it covers all health care needs for senior citizens. it will finally include dental care, hearing aids and eye glasses. >> climate crisis is the existential crisis of our world t puts every living thing on the planet at risk. i have a plan for a green industrial policy, that takes advantage of the fact we do what we do best. that is innovate and create. i propose putting $2 trillion in so we do the reserve. we then say anyone in the world can use it. so long as you build it right here in america. stuart: that was interesting. some highlights there from senator sanders and warren from the debate last night. doug schoen is with us. he a fox news contributor of the at last count he was indeed a
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democrat. you heard my editorial. >> i did. stuart: go on. >> i would like to disagree with you, but i can't. because you're right. this is a party moving hard left and socialists rule the day. stuart: they have, in these debates they have to move to the left because the primaries are coming. >> exactly. stuart: you have got to be on the left if you want to get the base to vote for you. >> that means you have to be against capitalism. every rich person has got to be ipso facto evil. we have to dismantle private insurance. and you heard in the tapes you played, spending $2 trillion not a word about how to pay for it. stuart: how do you get around this? if the far left does emerge. >> right. stuart: by the end of the summer if the far left looks like it will dominate the nominee for the democrats, how do you reverse that. >> i still, in my heart of hearts hope joe biden improves tonight, but candidly, people like me who are democrats,
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traditionally but don't share socialist principles, have some hard thinking to do because i can't support elizabeth warren, bernie sanders and their ilk. i just can't. >> why did the moderates failed to show in the night? >> i think actually sounded very good. the energy in the party son the far left. the primary electorate is on the far left. the loudness, intensity is on the far left. stuart: tonight, joe biden is on desk. >> yes he is. stuart: kamala harris is probably his principle antagonist. >> right. stuart: who will be the main target tonight, or president trump. >> it is joe biden, joe biden, maybe president trump. i think kamala harris will to after him. i think cory booker will to after him. everybody will try to knock out the front-runner which is what biden remains, despite his positions on busing and the crime bill. stuart: look it is very, very early. >> it is, 15 months to the
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election for heavy very much's sake. is it too early to say tonight's debate is make-or-break for joe biden? >> if joe biden has another bad debate i think it will hurt him. going into iowa, new hampshire, the first two contests i think he is no better than 5050 to win. then when he gets to south carolina, he has to hold black votes. they are 50% of the electorate there in the primary. so we don't really know how biden has a path to victory if he can't maintain his front-runner status. stuart: doug, i would never thought i would sit next to you to hold this kind of conversation but here we are again. >> we have to be honest where my party is moving. let's hope joe biden emerges. stuart: is your jet ready take at that you back to florida? >> absolutely. with all it is virtual problems. stuart: doug, thank you. check the big board. we're holding to a gain of 60 odd points. 27,260. the stock of the day, the month, maybe the year, is apple.
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it just hit a trillion dollar valuation. so, susan, they reported yesterday. susan: yes. stuart: what was in that report that has propelled the stock so much higher this morning? susan: so much good news. they beat better than expected in terms of profits, sales and guidance especially for the very important quarter like september actually helped propel the shares. september is usually when they launch the new device. they're bullish because of higher seas, because of new interest in their new phones. also china. the cfo told me that is improvement from recent quarters. there is a tariff war underway, a trade war, that impacted consumer sentiment. has that impacted necessarily the pricing? no. they're trying to turn a price on a economy going down, undergoing economic stimulus, they are saying improvement in the chinese market. also by the way they doled out $22 billion in in cash.
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dividend buy backs in the quarter. apple trading like a atm machine. they bought $75 billion worth of shares in the last four quarters. this is what is driving the stock today. stuart: whoa. they have 200 billion in cash still? >> still. the apple car is coming out. they're going to financial services. stuart: up $11. the stock of the day, that's for sure. susan, thank you. i want to talk about interest rates and talk about the federal reserve, they're confidentially expected to cut rates this afternoon. bring in "barron's" senior editor jack hough, they agree on this. they cut this afternoon. i think there will be a series of cuts later this year. why? because we have to keep pace with the europeans. >> the low rates will spread like tight pants from europe to the u.s. it will put squeeze on
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americans. stuart: thank you for that. >> taken at the heart, ashley. $13 trillion of negative yielding bonds over there. what happens it cause as capital flight to the u.s. it makes our dollar strong. that hers the ability of our manufacturers to compete. when you look at our economy right now, the consumer here is very strong. manufacturing could use a little help. the last thing they need is a dollar too strong. we have to bring rates down to respond to europe. stuart: let's be clear about the negative interest rate situation. that is a situation where the lender actually gives money to the borer. that is the world turned upside down. that is what we're seeing in europe and japan. we can compete with that we have got to lower our rates. >> it's a really strange condition. what happens, you look at these countries around the world, i won't ex-skewed us from this list, running big deficits. no one is figuring out a way to
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pay their bills. if you get interest rates down lower than the rate of inflation, we'll get a free ride for a while. everybody is trying to pay their bill using the central bank, they're saying you don't need to pay for all the wonderful services. you print the money. nothing bad happens. >> we're in a position of relative strength. people might look at our 10-year treasury yield, say that stinks, i remember rates were much higher. tell you, 2%, you might be delighted by the thought of 2% a couple years now if we continue pushing down rates in response to what is going down in europe. 18 times earnings of u.s. stocks, pretty good deal. 2.3% on quality bonds, take it while you can. stuart: you expecting a quarter point or half-point cut today? >> i think it will be a quarter point. you have to explain why we need to do the quarter point but you have to be careful to not poo-poo the economy too much. so you have got to find that balance. stuart: i'm glad to have somebody sitting on the set who
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agrees i'm right about the europeans, the japanese, and the fed. thank you, jack. susan: we agree. stuart: but you weren't agreeing with me vigorously enough. susan: okay. stuart: you have to pound the table, say what a great guy i am. 100% down the line. ashley: let's not get carried away. stuart: let's not. the dow industrialsp 53 points. i have to tell all the gain is accounted for by a run-up in apple. 2:00 afternoon eastern time, i will join charles payne, maria, lou, neil, all of us together. 2:00 this afternoon on the fox business network. they are partnering with one of the largest food manufacturers. they want to ramp up their plant based burgers. they are thinking that the trend is here to stay. we will talk with the impossible foods head later this hour.
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question, are the chinese stalling until 2020 hoping president trump won't be reelected? good question. we'll ask it. re had two economists who drank their way around the socialist world, north korea, venezuela, cuba, they say the beer is terrible, so is socialism. they will talk about their book, "socialism sucks." they are on the show later this hour. ♪ 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... and be better protected from mayhem...
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like me. ♪
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stuart: dow has a gain of 50 points. all the gain is accounted by one stock, the stock of the day, apple. on your screen, dine brands, own ihop. they cut the full-year guidance. look what happens when you do that. you're down 7%. the alleged mastermind behind the september 11th
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attacks, khalid sheikh mohammed will help the victims of their attacks against saudi arabia. there is a catch. he wants the death penalty off the table. come in retired colonel, morris davis, former chief prosecutor at guantanamo bay. colonel, are you okay with this? he helps the victims if we don't kill him? >> he seems to have had a change of heart. when i was the chief prosecutor about a dozen years ago his object testify was to be a martyr but apparently over the last dozen years he has decided he would rather live. so he is trying to leverage this to his advantage. stuart: as a prosecutor, are you okay with doing a deal like that? >> well prosecutors do deals all the time. i just find it hard to believe we would do a deal for someone like khalid sheikh mohammed who responsible for 3,000 deaths that we would take that off the table in a case like this, when it is such an extreme case. stuart: why has his trial not, i don't think his trial is over,
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why not? it is what, 18 years after the attack? >> yeah, it is really a shame that, particularly for the family members of the 9/11 victims that they have been denied justice for this long. september 2006 is when the high value detainees were transferred to gitmo, including khalid sheikh mohammed. since then the only one tried and convicted was ahmed ghailani, brought to the united states and prosecuted in federal court in new york. he was convicted back in 2010 and is doing a life sentence. but ksm and others floundered in the system down in guantanamo, and there is no end in sight. stuart: is the trial not over because ksm was waterboarded? because any evidence may have come out of that waterboarding cannot be used? is that why he is still in prison untried? >> that is one of reasons. i think there is a multitude of reasons why.
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it is, in my opinion, having looked at the evidence years ago, when ksm first got to guantanamo. there is ample evidence to prove his guilt beyond a reasonable doubt without using anything he said since he has been in our custody. that doesn't excuse us for engaging in torture that would make that irrelevant if we don't need to use it. i think we can try to case successfully without using tortured evidence. stuart: have you met him? >> i haven't met him in person. i was there during some of the interviews with some of the team members that worked for me and i watched on closed-circuit television. but i never met him in person. stuart: what is his demeanor? >> well at least back then he was a very arrogant, very proud person. to me, you know, i have debated this over my own mind over the years whether the death penalty is the right thing. that is what he wanted back then. i think for him the ultimate penalty is being irrelevant.
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because he is a very proud, very arrogant guy. the notion of spending the rest of his life being totally irrelevant, is the worst punishment imaginable. so this 9/11 case and the opportunity to be a witness in that for him gives him some renewed relevance. i really hate to see that happen. stuart: yeah. i'm with all the way. colonel davis, thank you for joining us this morning. we appreciate it. thank you. >> my pleasure. stuart: we'll take you for a live look at capitol hill where the senate is holding a hearing on the faa, the federal aviation administration. grid did i trimble is with us. i imagine this hearing is about the boeing max jet? >> you're right. they're talking about it as they speak. one the senators said they need a culture change between the faa, the regulators, boeing and other private aircraft makers. that has been under intense scrutiny lately. you have troubling articles coming out, especially "the new york times" one earlier this week that says essentially boeing was able to self-regulate
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and self-certify this plane and faa officials were unaware of the problems with it that at least partly responsible for both of those crashes. stuart: so this is all about oversight? >> yes. stuart: not about boeing the company, it is oversight of the company. >> the faa specifically and this is the transportation appropriations subcommittee. does the faa need more money to pay employees to keep them because a lot of times the employees will be lost to private industry if they're not paid enough. stuart: grady, this is your second appearance on "varney & company." it was not a good one. >> when will you stop counting? stuart: thank you, grady. good stuff. the president of the u.s. soccer federation pouring cold water on the women's team is paid less than the men. he said they actually made more than the men. the world cup champions, the ladies are not buying it. we'll tell you what they are saying. garmin posted a record high second quarter profit.
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they raised their guidance. their stock is one of the big winners of the day. they're up 6%. remember they used to be the gps maker a stand alone device in your car? now they shifted their focus to wearable fitness devices. it is really paying off for them. we have garmin's ceo on the show in the 11:00 hour. ♪ ♪ all right brad, once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route. obviously. retirement, we're going with a long-term play.
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makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know? studying my playbook? yeah, actually. (groans) hmph... (food grunting menacingly) when the food you love doesn't love you back, stay smooth and fight heartburn fast with tums smoothies. ♪ tum tum-tum tum tums with tums smoothies. with tough food, your dentures may slip and fall.
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♪ stuart: double dose of the beatles today. 10:22. maybe 10:30. why are we playing all my
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loving, because millenials say finding love is too expensive. susan will explain. susan: j.lo said love doesn't cost a thing but apparent it does., surveyed 5,000 millenials, they say 30% says finding love is too expensive. 21% of the millenials need to reach a certain income level before they can actually pursue a relationship. that is actually higher than the broader public. 14% believe that. stuart: straight at it, shall we. first date, does the man pay. susan: okay. this is my opinion. but i think in a chivalrous world a man should be paying on the first date because, let me finish my thought first before we launch into this, because i think if a man is cheap with their money they are cheap with their love. stuart: all right. susan: and -- stuart: male domination. susan: i disagree with that. if a pregnant woman got on to a subway or bus would you give them your seat. stuart: yes? >> susan: that is chivalrous, isn't
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it? i don't think it is about male domination. show love and affection. stuart: i did that on the tube in london, stood up for a pregnant lady. she said i don't need your help. ashley: there you go. stuart: i'm not going further than that. the women's soccer team, they slammed the soccer federation after its president said that the women's team was paid more than the men. ashley: soccer federation put this statement out saying look, between 2010 and 2018 the women actually earned some $8 million more than the men. now the women are fighting back, calling that a complete ruse. it is not a clarification says the, say the players. it's a ruse. it says for every game a man plays on the national team he makes a higher basalry than payment on women's national team. for every comparable win or tie his bonus is higher. they call it a sad attempt by the federation to quell the overwhelming tide of support that the women should be paid
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more. stuart: ping-pong. tensions are running real strong in hong kong, anti-government protests are on going. will china's military intervene? big question. we'll ask our china expert that question. republican senator josh hawley wants to crack down on social media addiction. he says facebook, youtube, instagram are exploiting users. we'll tell you what he plans to do. ♪ ♪ ♪♪
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♪♪ ♪♪
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♪ stuart: nice rhythm to it. lovely harmony from way back when, on my way back home. i don't know the official title. i like it. do we all like it. you never heard it before? susan: no i never heard it. stuart: please. let's move on. a tweet from president trump. if i hadn't won the 2016 election we would be in a great recession, depression right now. the people i saw on stage last night, you can add in "sleepy" joe, harris and the rest, will lead us into a economic sinkhole the likes we have never seen before. with me only up. classic. absolutely classic. the big board we lost the gains. apple gave us a huge 80-point gain. we were up just 12 points. weekly oil inventories in. how much oil we pot in storage. how much are we using? >> not anywhere near what we
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thought, stuart. weekly crude supposed to be down, a draw of 2 1/2 million barrels. it is down eight 1/2 million barrels. distillates down two. oil jumped double what it was. it was trading 35 cents up. we're now up 55 cents, almost double. that is a surprise. we thought geopolitical was going to drive the trade today. actual reality might drive it. incredible. stuart: that is economic indicator. we're using a a lot of oil. pulling eight million barrels. that is great economic indicator. jeff flock, thank you very much indeed. the latest from the trade talks with china. a statement from the white house which says meetings, this week were productive, and negotiations will continue in september. president trump sounded less optimistic when he was talking about china trade yesterday. watch this. >> though the talks are moving very well with china, but they were often with china, but china
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always make as new deal at the end or seems to. i think the biggest problem to a trade deal, china would love to wait and just hope, they hope, it is not going to happen i hope but they would just love if i got defeated. stuart: well, is china delaying, hoping that president trump will lose in 2020? let's bring in gordon chang, our resident china expert. can i call you that, resident china expert? >> i'm honored, stuart. stuart: all right. do you think china is holding things up, delaying in the hope that trump will lose? >> yeses, i think that is part of it. the other part xi xinping the chinese ruler is in a no-win position. for him doing nothing is good. they have been concerned about trump. at the end of the day these guys don't understand what he will do. they can't predict him. they can't control him. they would prefer someone in the
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mold of past presidents who they have been able to manipulate. stuart: north korea launched a couple missiles, do you think china told them to do that to mess with the trade talks. >> i think so, stuart. there has been coordination between china and the north koreans. the chinese hold out cooperation with north korea, dangle in front of us to get concessions on the issue of the day. now it is trade. i think there is this coordination especially xi xinping is running out of options with regard to the u.s. and he has got a lot of other problems throughout china as well especially the economy. you put it all together he would certainly love some help from 1600 pennsylvania avenue northwest. stuart: i have to ask you about hong kong because the protests are ongoing and you mentioned a possibility, people's liberation army, the chinese army, actually stepping in. that is highly unlikely, isn't it? >> last week you had an official spokesperson talk about the possibility of the pla, peoples liberation army, actually moving into hong kong.
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now that is the last thing that beijing wants because hong kong is not armored car country but on the other hand if they think protests in hong kong are inspiring protests in the mainland itself, yes they will move against hong kong. we had the protests first week of july. they were big but they were isolated. if you have several protests all at the same time i think beijing will be concerned. stuart: that is not hong kong. >> it is in the mainland. stuart: spreading into the mainland is a real worry for them. >> it was a big worry. a lot of people on the streets for a couple days. there was a lot of anger. stuart: well, if you did use the army to quell disturbances in hong kong, you wreck hong kong as a financial center? >> that is the reason why this is a last resort. there are reports that they're amassing p.m. la units just north of the hong kong border. there are reports that we know that hong kong policemen in
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canton ease speaking city cannot speak cantonese, cannot show the hong kong police identification cards. there is widespread belief these are main land chinese pap, pla people mixed in with the hong kong police. remember the hong kong police are lost control. they are not disciplined. they're demoralized. they're fatigued. right now china is in a difficult position because running out of options not only on trade but also hong kong. stuart: i used to live in hong kong. susan used to live in hong kong. i'm sure you're a frequent visitor. >> i lived there 10 years. stuart: you're a frequent visitor. >> i found my wife there by the way. best thing that happened. stuart: all right. when i was there, it was a brilliant, shining star. it was a center of asian finance. i think it still is. is it slipping from that position now? >> yes. the economy is having some troubles. of course you have the business groups talking about the problems in hong kong, in pretty
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dire tones. you know the business community, by the way, has deserted carrie lamb, the chief executive of hong kong and that's important because business right now is so concerned about the situation that they no longer port her. local business in hong kong were the big supporters of china and chief executives in the past. that is not true anymore. stuart: i find it astonishing. i remember, hong kong turned me on to capitalism. hong kong made me a capitalist, because it manifestly and obviously works. >> it works. it works. it is an amazing city. the thing about hong kong is, the chinese should have left it alone. everything would have been fine. but they were always trying to grab control because they're communists, stuart. so they grab control. they pushed the hong kong people too far. that is why people in hong kong are not condemning the student violence. would you expect them to, but they're not doing it. as a matter of fact they're looking at, critizing the
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hong kong government, carrie lamb, beijing. they're not criticizing the students. those students are doing some pretty damaging things. stuart: you don't think much of communism, do you? no, you don't. >> not really. stuart: i got it. gordon, thank you very much indeed. my best regards to your wife who is around the corner? >> yes, she is. watching this very carefully. stuart: thank thank you, gordon. we slipped into negative territory. at one stage we were up 80, now we're down one point. how about disany? ashley: how about disney? stuart: you could say it is the stock of the week. it has had a great week. it is down a buck. now this. senator josh hawley with a new bill making social media less addictive. ash how are they going to do that. ashley: the social media addiction reduction act, all for the smart act.
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stuart: got it. ashley: he says the companies are using manipulation and tricks to get you to be addicted through your devices. they do that through continue all scrolling, techniques, making it harder to decline. you're stuck watching these things. most people are doing this. he says it's a problem because we are being manipulated. he wants big tech companies to stop doing this how that will happen, i don't know. facebook will give you a reading how, percentages of tile you spent looking at your screen, maybe something like that. but it is the very nature of social media today. it is really addictive. stuart: how does congress have the power to go into private companies to make changes? susan: he wants to empower the fcc, health and human services, specific functions, youtube auto play feature, infinite scroll and snapchat's streaks you don't know what it is. stuart: i have no idea. susan: it is addictive. stuart: i take your point.
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it is addictive. here we go, happening now, impossible foods received approval for the fda for its color additive petition. not sure what that means. susan: yeah. impossible foods, you will be speaking to impossible foods later on in the program. they partner with burger king with the impossible burger. impossible foods getting fda approval for use of hema in future applications. hema is the plant based protein they use in their patties. they will launch impossible burgers in select retail outlets in september. beyond meats rocketed 800% since its ipo. it is sales quadrupled in the recent quarter. obviously consumers like the taste as well. stuart: if impossible foods was a publicly-traded company i think the stock would be up. it is private. so you have no gauge what's happening there. we do have, let's see we have,
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we've got, what is the, is executive vice president? senior vice president of product operations, on the show later on. susan: very exciting. stuart: okay. socialism on full display at last night's debates. it is in detroit. what is living in a socialist country, what is it really like? we're talking to two guys who found out by drinking their way through cuba, venezuela and north korea. they're going to tell their story. they're on the show next. california at it again. remember that new handbook on how to teach egg nick studies in public schools? they want teachers to tell students that capitalism is akin to racism. dennis prager, he is on the show. he is about to, talking about that too. that is in our next hour. varney continues. ♪
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stuart: despite the rise in stock price of apple we're down nine points. 27,000, almost 27,200. democrat presidential hopeful john delaney called out senators sanders and warren for their socialist policies. watch this for a minute. >> folks we have a choice, we can do down the road senator warren and senator sanders take us, bad policies like "medicare for all," free everything, impossible promises that will turn off independent voters and get trump reelected. stuart: hold on delaney's campaign he raised a lot of money because of that performance. susan: tenfold increase in fund-raising over the last 24 hours around last night's debate. to be fair john dell main any
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doesn't need money. he is second richest presidential candidate behind tom steyer. john delaney is a multimillionaire. he has not raised that much money. he loaned his campaign, 13/4 of a million dollars in the second quarter. tenfold increase? we don't have a dollar amount. he hasn't had to raise much money so far. stuart: the point he was a moderate attacking the socialists. ashley: yes. stuart: he has been rewarded with a lot of money. susan: especially on health care. stuart: people are prepared to put money behind a moderate, not pour it all into the socialists. that is the important thing. susan: good point. stuart: let's get to the new book, the title of the book is, "socialism sucks." how do authors arrive at a title like that? i will tell you now. they drank beers in bars in venezuela, cuba, north korea, and assessed socialism on that. the authors of the book are with us. robert lawson, and benjamin
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powell. i want to start with venezuela. what is the beer like in venezuela? either of you answer. >> hard to tell, get this stuart, venezuela ran out of beer. socialist dictator, toilet paper and beer i wouldn't run out of. they have a mow no pope poly beer producer, they didn't give them enough foreign exchange to produce the beer so the country ran out. stuart: your. move out to cuba. you're out drinking there. what is the verdict on cuban beer? >> cuban beer isn't awful but the problem is, there is only go types. the comrades who run everything in havana, they decreed they will make krystal and bucanero, that is it. they don't bring in other things from outside. that is the one of the great hallmarks of social i am, if it is available, frequently isn't, get one or two choice, limited types that is the story of cuban beer. stuart: i really want to know about beer in north korea.
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first of all, how on earth did you get there? how did you get out? >> so, no, stuart, you don't want to know about beer in north korea. it is that bad. but we are, our wives said we couldn't get imprisoned or arrested or killed writing this book. for another cree, we played around in south korea, went up the yalu river, the border between china and north korea, went up and down there a bit. the beer, when you can get it is god awful. think of the worst malt beer you ever had, make it worse. stuart: you went to three hardcore, i would call them communist, marxist countries. did you not think about going to scandinavia, which is semisocialist or western europe which is kind of democratic socialist? why didn't you include them? >> we actually did. we went to sweden and story there the beer is great because it is a myth that sweden is a socialist country. those are private bars and private grocery stores and volvo is a private company. there is no central planners in
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stockholm. so as it turns out yeah they have high taxes, a welfare state. we can talk about that separately. it is not socialism in any way. stuart: i take it you guys are capitalists? >> a little bit. stuart: what do you mean a little bit? what does that mean? >> you can't find more free market guys than us. stuart: european democratic socialism is not for you? you will not dip your toe in that water. >> let's be clear, sweden is not socialist. they have a big problem with welfare state, labor market regulations, too high taxes. the result sweden used to be the far more capitalist. used to be richest country in the world. since the socialist state, that dragged down income and they're at the bottom of eocd. we shouldn't confuse it with full on going socialism. stuart: the book sounds absolutely intriguing. i might read it with a title like that, i will read "
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"socialism sucks." thank you for coming on the show. that is a remarkable book. >> thank you. stuart: i have something on impossible foods, the fake meat guys, they are teaming up with one of the largest food producers, they want to increase dramatically production of their plant based bulgerrers. obvious question, should the real meat industry get nervous about this? impossible foods product chief is at show next. ♪ let's take a look at some numbers:
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stuart: apple is the stock of the day. that has gone straight up. now this, impossible foods, meatless burger people, they are partnering up with osi group. this is part of a plan to ramp up production of the meatless burgers. we have the impossible foods senior vice president of product operations. sir, you're putting serious money into this. you must be convinced that the meatless trend is not a fad. that it is here to stay. make your case? >> stuart, thanks for having me on the call today.
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we did a pretty exhaustive touch who will be best partner to scale, as well as bringing expertise. so we can continue to deliver the delicious burger to consumers. we thought about the future. with investments, that we're thinking about flexibility for today, that allows us to think about being able to satisfy consumer demand of the future. stuart: okay. >> we're pretty confident on the deliciousness of our burger and consumer demand has shown that today. we're in 5000 stores. today we're in 10,000 stores. by the end of the year we see ourselves in 17,000 restaurant. stuart: look, i have tasted it. you're right, it is very tasty. i can't tell that much difference with the real thing but there is a lot of talk what is actually in these plant-based burgers. there is a lot of salt in them. there is some fat in them. what do you say? >> we used simple plant-based
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ingredients. we're very transparent what we use. there is a lot of benefits. the impossible burger has zero cholesterol. no antibiotics. it has no hormones. additionally, during our product development process, our nutritionist sustainability teams, among others are really part of the process. if you look at the impossible burger that we launched earlier this year, versus our previous version, it has less set yum, it has less saturated fats, while at the same time, delivering that delicious taste to consumers. stuart: how much are you going to be able to ramp up production with this osi group? >> we'll be able to significantly ramp up production. so, as i said, as i said we've a partnership, a facility in the midwest. we are working with them today. we have equipment installed today. and, within the next month we're going to be producing at scale. while at the same time, we've doubled our capacity at our
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oakland facility to meet ongoing consume demand that we see. stuart: thank you very much for joining us. you're the man of the hour with the impossible burgers, we've glad to see you on the show. we appreciate it. >> thank you. stuart: a rate cut, coming this afternoon, i think. i believe. so do most other people, but i say it will be the first of many. i say it is european and japanese who are pushing us into a series of rate cuts. i will talk about the fed at the top. hour. ashley: uh-oh. stuart: lawrence jones has been in baltimore finding out exactly what residents think of the city. are conditions really as bad as the president says? lawrence is on our show next hour. garmin, they started off as a company that make those gps devices. you put them in your car. you remember them? they have having extraordinary success with the wearable fitness devices. the ceo is on the show. more "varney" after this. ♪
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stuart: caution. i'm about to talk about the fed. do not adjust your set. i know i regularly dismiss fed watching as boring, confusing and an absolute turn-off, but today, i'm going to take the plunge. consider this a financial alert. here's my forecast. we are going to get a rate cut today, and we are going to get a whole series of rate cuts this year and next. the cost of borrowing money is going to go way down. okay, yes, i'm out on a limb. to the professional fed watchers, i am totally out of line. i admit i am not looking at some computer model, i don't have my own pet algorithm and i don't think these rate cuts are the result of president trump's pressure. i think the rate cuts are coming because of the europeans and the
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japanese. they are using interest rates to attack us and we have to respond. we can't let rates here stay way above rates over there. it's distorting our trade, our currency and our economy. i'm not totally alone here. the well-respected analyst mark grant has been writing about this for a very long time. he says these rate cuts will give a short-term boost to stocks and real estate, and i think he's right about that, too. in the long run, who knows? we are in totally uncharted territory. come on, never in the course of human history have lenders paid borrowers. never before have central banks created money out of thin air on this kind of scale. the rate cut you see this afternoon is the first of many, and it's the europeans and japanese who are pushing us into it. i do hope you're still here with me. [ buzzer sounds ] stuart: i knew it.
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the third hour of "varney & company" is about to begin. stuart: look who's here. he knows more about the fed than anybody, i think. his name is charles payne, the host of "making money." who would have thought you and i, ten years into "varney & company" almost, would be sitting here talking about the fed? >> i can't believe it. i cannot believe it. next thing you know, you'll be talking about american football. stuart: oh, no, no. am i right, i think there's going to be a series of rate cuts and i think it's because of the europeans and the japanese. what do you say? >> i think you're right but not necessarily for that reason. i have been paying very close attention to jay powell. first let's talk about how he dug himself into this position. three major mistakes jay powell made. october 3rd when he said we're a long way from neutral. that sent the market careening lower. we started a major, major free-fall. december 19th when he actually hiked rates again. think about this, the dow the
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day before was 23,675. by december 24th, under 28,000 -- i mean under 22,000. we just collapsed. the last mistake he made when he said low inflation is transitory. that was may 1st. remember how rough the month of may was for the market? those are the three mistakes, huge mistakes he's got to fix. what is he worried about? they are worried about this persistently low inflation turning into deflation. now, he's been hinting at this and that's why today the number one question today in the q & a will be do you consider low inflation transitory, do you still believe that's an issue. let me tell you, the fed is more afraid of deflation than anything else. stuart: you do agree with me, i mean, for different reasons, that the fed is going to embark on a series of interest rate cuts, you with me on this? >> absolutely. stuart: the rest of this year and maybe next year as well? >> a minimum of three, maybe more. maybe more. stuart: that could take rates down to the 1% level or below. >> just a week ago, the new york
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fed president said listen, this argument that we don't have a lot of arrows in our quiver so we should hold on to them, he says the exact opposite. we should use them while we can. he was arguing more or less for a 50 basis point. but there's a piece put out november 21st, 2002 by governor ben bernanke who said sustained inflation is the worst thing that can happen in this country, whenever we see it, even hint it or feel it, we should act preemptively and aggressively because once we get into a deflationary death spiral, there's nothing the fed can do about it. stuart: you and i are going to be together this afternoon. >> we are going to hash this out some more. stuart: that's right. we've got lou with us, maria, neil and you, and i, all of us together. one big happy family right there at 2:00 eastern. hashing it out. >> can't wait to do it. stuart: apple, stock of the day, maybe the week, maybe the month. i don't know. it hit a trillion dollar valuation earlier this morning. right now it's $218 per share.
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it's contributing about 60 points to the dow industrials. look at this guy. his name is dan ives. this man is known as the premier apple analyst, and he's an apple bull. welcome to the program. >> great to be here. stuart: what is it about the report that came out yesterday on apple, from apple, that has made the stock go up so much this morning? >> two things. one, china. a lot of worries about what's going on in china in terms of growth on the iphone side. if you look there, there's only a 4% decline. it's much better than feared. maybe yelling fire in a crowded theater, we didn't see that. ultimately, cook came out swinging like mayweather in terms of guidance. you look at guidance, much better than expected for the september quarter. it shows this iphone cycle is going to continue and the services continues to be strong. that's the key right there. stuart: you got a price target? where do you think it might go? >> $245 for starters, where we could see. this is a stock that will get
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rerated on services. i look at the valuation, they have $400 billion or $450 billion in just the services business. now you will start to see more monetization there. that iphone story is in the early innings of playing out. stuart: leave it at that. 245, 250 this year. >> over the next 12 months. stuart: okay. okay. how about big tech in general? i'm thinking google, microsoft, amazon, facebook. do you think they are going higher from here? >> we think that fang names have another 10% to 15% upside going into the rest of the year. stuart: whoa, whoa, whoa, wait a second. wait a second. 10% to 15% up from here by the end of the year? >> that's where we see it. stuart: you know i've got a piece of microsoft, right? >> microsoft, in our opinion, is actually our top pick. when you look at cloud, nadal has a golden touch on cloud.
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pps it's a pure way to play cloud. stuart: you think it's going to 160? >> in my opinion, microsoft is only just starting to play out and if you look what they've done in redmond, that's just the start of this massive $100 billion cloud market. stuart: you work in manhattan? so it's not too far for you to jump in a cab or walk over here whenever we need you to boost microsoft stock? simple as that? >> fundamentally, one of our top calls over the last year has been microsoft. it continues to be an underappreciated name because of cloud. if you look at fang, microsoft and big tech, apple, another leg up here. stuart: what's wrong with fireeye, a cybersecurity company? you don't like them? >> it's a great market in terms of si cybersecurity but execution continues to be the problem. look at what happened last night, that was another black eye for fire-eye. i think ultimately going forward, this is a prove-me stock.
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there are better ways to play the sector. stuart: you have done a wonderful job for us this morning. you will be back. dan ives, you're all right. appreciate it. how about garmin, just posted a record high second quarter profit and raised guidan guidance, too. the stock is one of the big winners of the day. they used to be a pure stand-alone gps device, put it on the dashboard of your car. they turned things around. they are now big into wearable fitness devices and it's really paying off. the stock is up nearly 4% this morning. garmin's ceo on this program later this hour. we will also talk to laurence jones. he went to baltimore to ask residents how they feel about their safety, their city, their leadership. we have the sound for you. you will want to hear what they had to say. first, we are going to talk to dennis prager. i want his take on the new ethnics study curriculum, teaching our youngsters that
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capitalism is racist. stay with us. the third hour of "varney & company" is just getting started. ♪ we all feel, we all love, we all cry. it's part of being human. sonoma county declared a homeless emergency in 2018. you have to know the individuals you're serving to understand their needs. working with ibm watson we can bring together data spread across dozens of departments. that gives us a fuller view of the people we serve. dear tech, dear tech, we need to look after everyone in our community. and we want to help our fellow human beings. ♪ ♪
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stuart: a youngster learned the pains of taxation by playing monopoly. he didn't like it. watch this. >> oh, my gosh! >> where's all your money going? >> taxes. nine, ten, 11. let me fix my houses. it's okay. it's part of the game. >> no, it's not. it's not fun -- >> it's not fun to what? >> it's the worst part of the game. >> is what? >> taxes. stuart: my sentiments entirely.
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deirdre: he speaks for us all, right? his parents are playing with non-cheating monopoly. hats off to the parents. stuart: i used to hate losing. not because of taxation. deirdre: there are some family reunions where that game has been banned. stuart: is that right? deirdre: yeah. stuart: conversation about politics is also banned these days. let's move on. here's a conversation about politics. oh, boy. california proposes a new ethnic studies curriculum for schools which would teach that capitalism is racist. it says capitalism is quote, a form of power and oppression, and it uses words like patriarchy, racism and white supremacy alongside capitalism. prager u founder dennis prager with us this morning. great to have you on the show. welcome back. i'm incensed about this. the idea you are going to teach communism and socialism to
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youngsters in our public schools to me is anathema. i'm pretty sure you agree with me. >> look, at this point i would have to say, as i say on my radio show, unfortunately if i had a child of that age now, my kids of course are grown up, i could not have them attend almost any regular public school and many private schools in the united states. the schools are not our allies, they are not the allies of people who have anything even close to a traditional value, and i include liberals in that. these are not liberals. these are leftists. this is a campaign of mine to explain to liberals that they are not leftists, their enemy is leftism, not conservatism, but i couldn't send a child there. everything that we believe is north, they are taught is south. capitalism is the only reason -- the irony is, it is so
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successful, capitalism, it could actually pay people to come up with this. stuart: where is it coming from, this socialism injected into our schools? who started this? is it left wing academics and activists who have gotten on the school boards? >> yes. it's left wing -- yes. it is left wing academics, that is correct. i would, if i may, it's free, i'm not asking people to buy anything on the internet, you could see my video. it's a five-minute video, the left ruins everything. anything it touches, leftism is a force of chaos. i have studied it all of my life since i was at the russian institute at the school of international affairs at columbia for graduate work. i have studied this my whole life. it is extremely complex to try to figure out what the left wants. there are in connecticut, for example, there are male bodies who say they are female which is fine, they can say whatever they like, but they are allowed to
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compete against biological females, they win nearly all of the races in connecticut and this is considered fair to women. notice feminist groups have not said a word about how unfair this is to girls to have males compete against them. because feminism doesn't care about women, it cares about leftism. stuart: what bothers me is that it's getting worse. it's not improving. >> yes, it's getting worse. that is correct. stuart: it's just getting worse. what turns things around? how do we do that? how do we turn it around? >> well, you are trying, i am trying. i know my radio show and my writings, prager u has a billion views a year. 65% of the viewers are under 35 years of age. so that's one example. we are certainly not the only example. it's the one i'm obviously most familiar with. we must explain first, parents must understand that when they send their child to school
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today, i used to say college, now i'm saying any school, when you send your kid to school, you are playing russian roulette with their values. i could cry when i say this. this is so sad. the school is not your ally. stuart: dennis prager, don't be such a stranger to this program. we welcome your presence. >> i love coming on. thank you. stuart: good man. see you again soon. by the way, president trump just out with a new tweet. here we go. lowering drug prices for many americans including our great seniors at my direction, secretary azar just released a safe important action plan. our governors will be very happy, too. we just got that. we will digest it. let's get to the stock market and individual stocks that are moving. how about tesla. the stock is down almost 30% this calendar year. that right? tesla is down 30%? i don't know where it started. it's at $244 today.
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beyond meat seeing a bit of a bounce back after a big drop in recent trading sessions. it's back to $200 a share. you have to check this thing because you know, it's a trend story. deirdre: since its ipo it's still up 800%. stuart: absolutely. not bad. check this out. the "wall street journal" called it the ultimate summer toy. it's the new honda talon atv. gary gastelu drives distracted live on tv and we pay him for it. watch him go. next. ♪
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at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond.
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stuart: automotive editor gary gastelu is test-driving the new honda talon atv. tell me about it and how much it costs. go. reporter: it costs a little more than the honda civic. it's $20,000. but this is a new segment for the side by side business. a lot of the companies
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[ inaudible ]. they came out with their first side by side. pretty quick, pretty loud, too, as you can tell. it's awesome for rock crawling, four wheel drive. it's all about recreation. honda has been very successful carving out a niche with the utility version of these four by fours. this is the first time they built one that's 100% about goofing around like this. stuart: not bad. i want to tell the viewers that 20 years ago, i bought my first four by four side by side for $6,000. now honda's on the market with a product for $20,000. i guess it looks good. it really does. gary, be careful, okay? no more distracted driving. gastelu with the honda talon. got it. good stuff. this is not a related story.
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somehow or other, i have to find a way to segue from one to the other. some of the world's biggest celebrities flocked to an italian resort for a climate change summit. how did they get there, you may ask? private jets, gas-guzzling cars. we will tell you all about it. the democrat debate wasn't the only big thing on tv last night. there was also drama of "the bachelorette." they were on simultaneously. ashley: wish i had watched that. stuart: which one did you watch? up next, market watcher david nicholas did watch the debate and says we could be one recession away from a socialist takeover of our nation. stay tuned for this. ♪ so are you feeling?
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on a scale of one to five? one to five? it's more like five million. there's everything from happy to extremely happy. there's also angry. i'm really angry clive! actually, really angry. thank you. but what if your business could understand what your customers are feeling... and then do something about it. turn problems into opportunities. thanks drone. customers into fanatics change the whole experience. alright who wants to go again? i do! i do! i have a really good feeling about this.
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stuart: you know, the democrat debate and the finale of "the bachelorette" were on at the same time last night. did you know that? watch this. >> when i told you i was falling in love with you, i mean it. i love someone else. >> they will be better because medicare for all is
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comprehensive and covers all health care needs for senior citizens, it will finally include dental care, hearing aids and eyeglasses. second of all -- >> you don't know that, bernie. >> i do know it. i wrote the damn bill. >> will you marry me? >> yes. >> hospitals will save substantial sums of money because they're not going to be spending a fortune doing billing and the other bureaucratic things that they have to do today. >> you're an incredible guy and i'm a single girl. >> when we save $500 billion a year by ending all of the incredible complexities that are driving every american crazy, trying to deal with the health insurance companies -- >> thank you, senator. >> the math is wrong. stuart: which would you watch? deirdre: new programming idea? i think your producers should
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produce the next season. that would be hysterical. ashley: unfortunately, i watched the debate. stuart: the gentleman who you just -- there he is -- that's david nicholas. i know for a fact that he did watch the debate. i know for a fact that he thinks if a socialist wins, we'll get a recession. and i think our guest has calculated the risk of a recession if there is socialist win. so what do you think is the risk of recession if bernie sanders wins? tell me. >> stuart, i'll tell you, there were two tvs on last night. "the bachelorette" and the debate. we can talk about both if you need to. in reality, i don't think our current electorate can stomach the realities of a contraction in the u.s. economy. if we look at the elections next year, if a far left candidate, a socialist, wins in 2020, i believe that is the catalyst that pushes us into recession. why. because the economic growth has more to do with confidence than
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anything else. if business owners, specifically small business owners, lose confidence that the future will be brighter than it is today, that sends ripple effects throughout the u.s. economy. you know, we -- stuart: you are talking -- [ speaking simultaneously ] stuart: -- a socialist becoming president of the united states, that event you say we get a recession for sure, right? >> absolutely. look, we were headed towards recession in 2016. when we look at the numbers, that shifted coming out of the elections. i tell you, our generation, my generation, two-thirds believe the government should provide free health care, free housing. 50% of millenials believe they would rather live in a socialist nation. these aren't young kids that oh, when they get older they will outgrow this. the oldest millenials are now 40 years old. they have been voting for 20 years. i think the next recession, if democrats are in control and i hate to be partisan on this,
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there's a time coming for our nation when democrats may control the house, they may control the senate and they may control the white house. if that happens, the policy ideas that we are seeing today, those policies could and will be in effect during another administration. so that just scares americans. that is what i believe changes significantly the u.s. economy. stuart: i agree 100%. but i have to ask you, what do you think of the chances that a socialist will win the presidency in 2020? i put it as slim and none. what about you? >> you know what, it comes down to a few key states. this election is going to be close. i think the overall economy that's fueling growth is going to be good for president trump but look, it's going to come down to a few key states like wisconsin, like michigan. those states lean towards candidates like elizabeth warren, like bernie sanders, so republicans have to do a good job of getting out and winning in those states. i think the probability for recession jumps to over 65% if
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democrats win in 2020. that's a big number. right now the odds of recession is less than 20%. you see a massive change in probability. i think that's a reality we all have to be watching and be careful of and the ideas that are being promoted that we saw last night need to be laughed off the public stage because they're ideas that sound good, good intentioned, also in need of redemption. they hurt businesses, they hurt americans. we should all be watching to be concerned. stuart: you going to watch tonight? >> sadly, "the bachelorette" is not on. i guess i'll be watching. stuart: hey, thanks for joining us, david. we always appreciate you being here. thanks a lot. good stuff. thanks. now, the big capital one hack, information on 106 million credit card applicants was exposed. i want to bring in our cybersecurity guy, with us in new york today. oz, when i first saw this story, i thought my dearie me, this
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compromises the security of the cloud, because this information was taken off the cloud. >> right. stuart: now i find it was probably an inside job. perhaps i shouldn't worry so much about the security of the cloud. >> well, you've got a lot of secure cloud providers out there. microsoft azure is one of them. what was raised by this is something we have to start looking at, insider espionage and insider basically jobs. page thompson, who was a former i.t. manager i guess, was working on this and over the course of about three years, she extracted a significant amount of information. now, what's interesting about this, this looks like this is an ego job, meaning she wanted to prove to a number of people she could do something like this, because the information was first hacked, then it was dropped on to an open repository, just to kind of show people the information was there. stuart: boasting. she was boasting. how do you guard against one
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allegedly, in this case, allegedly, rogue employee? i don't know how you guard against that. >> security protocols, new processes have to be developed and employed internally. here, there's questions of whether or not she had access to administrator passwords because the technicality of how this happened was there was a weak firewall and once she got through the firewall and she was very crafty, she was able to basically access a large number of systems that provided all of this information. stuart: just incredible that one rogue allegedly could release the information on 106 million credit card applicants. >> 106 million credit card applicants, 100,000 social security numbers, 80,000 pieces of private information. and capital one is saying internally that they're expecting about $100 million to $150 million worth of exposure. as we talked about this the other week with equifax, they could be looking at $1 billion in fines. stuart: dear lord.
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at least the security of the cloud was not directly compromised. can i say that? >> the security of the cloud from the perspective of the american consumer was not compromised but amazon web services and a number of other providers really need to step up their game in terms of how they're handling people internally. stuart: protocols internally, who's getting what information. >> hold the c.i.o. accountable. stuart: now you're talking. oz, thanks as always. good to see you again. president trump has taken to his twitter account again. cnn's don lemon, the dumbest man on television, insinuated last night while asking a debate question that i was a racist when in fact i am the least racist person in the world. perhaps someone should explain to don that he is supposed to be neutral, unbiased and fair, or is he too dumb in brackets stupid to understand that. no wonder cnn's ratings, msnbc's also have gone down the tubes.
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and will stay there until they bring credibility back to the newsroom. don't hold your breath. the president is breathing fire this morning. okay. he will again tomorrow probably. big payday for michael thomas of the new orleans saints. he's the highest paid wide receiver in nfl history. deirdre: he's broken the bank. $100 million for five years. but fans say he deserves it. 85% catch rate in the last season which is the best on record since 1992. even the people who don't love the saints say he deserves this contract. stuart: hundred million dollars? deirdre: over a five-year period. stuart: you know how much of that is guaranteed? deirdre: it is part of the deal. they did not break that out. his agent did not break that out. but it did take six days to kind of go through this. they just say averaging $18 million to $19 million a year.
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it says with the right structure and guarantees. you know. stuart: fine print. fine print. okay. little hypocrisy for you. big names like leo dicaprio, prince harry, president obama, they went to a google summit on climate change in private jets and gas-guzzling yachts. so tell me more. ashley: yes. the snooty resort in palermo in sicily, sniff, sniff, all the big celebs, 114 private jets. is it hypocrisy or irony? they are there to talk about how do we fight climate change as they pump co2 into the air with wild abandon. in fact, "the new york post" said if you took a flight from l.a. to palermo, 114 private jets, it's over 100,000 kilograms of carbon dioxide put into the air. bravo to all of these celebs on what they are doing for the environment. not only the jets but the big
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yachts. they have huge diesel engines. deirdre: it goes on and on. stuart: that football player, $61 million guaranteed. he gets it. deirdre: he gets it. stuart: various markets, we like to check them for you. first off, gold. the price this morning is $1440 per ounce. how about bitcoin? still around $9,000 and change. so tell a lie, sorry, $10,000 per coin as we speak. laurence jones has been to baltimore, finding out exactly what residents think of their city. are conditions as bad as the president says they are? mr. jones, on the show in about five minutes' time. listen to this. new study has revealed 40 american cities that are in danger of another housing crisis. we will tell you which cities are in danger. back in a moment. ♪ let me ask you something.
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and financing is available for qualified purchasers. stuart: we've got one of those studies that says 40 american cities are in danger of another housing crisis. deirdre will tell us the top five on the list. deirdre: i will give you the cities first, tell you how it's calculated. hartford, connecticut, baltimore, number four, bridgeport, connecticut, number three. detroit at number two. newark, new jersey -- stuart: wait. wait. at the top of that list is newark. are they most at risk? deirdre: yep. stuart: biggest risk is top of the line there, newark. second, detroit. bridgeport, baltimore, hartford. deirdre: you see it there. essentially, vacancy, delinquency, negative equity, meaning the value of the home is worth less than the mortgage. all of these have rates at least three times the national average. stuart: all of those cities are in deep trouble. deirdre: yeah, they are. stuart: baltimore was on the list. by the way, fox news, laurence jones went to baltimore to find
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out what residents are really saying about the city during this feud between the president and congressman elijah cummings. watch this. >> when you look at baltimore and everything that's happening, would it be safe to say that baltimore is in a crisis? >> yes, i would honestly say yes. you know, from the drug selling to the killings, you know, the poverty, you know, it's just crazy. >> what do you see when you see baltimore? poverty, crime, what do you see? >> i see poverty, crime, i see -- i see crime as a way of life. >> i personally don't even want to live in baltimore anymore and i'm afraid to actually raise a family here, and this is my home. >> the crisis is not just a crime, but the crisis starts downtown, the government. >> tell me about your leaders here. >> leaders. >> yeah. elected officials. what are they doing?
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>> i think they sold out. >> when you look at baltimore, describe what you see. the boardinghouses, drugs, tell me what you see. >> i just see a city gone wrong. i been here 58 years and it was such a pleasure to live here. what i see now, sometimes i drive and i'm almost in tears. >> i love baltimore, but baltimore is like a sewage right now, you know. the president said, called our city rat infested. that is true. >> it is bringing great attention. it's brought attention so much so to the president. that tells you something right there. stuart: the man himself lawrence jones joins us now. i take it that you did some editing there. you presumably had some responses which said yeah, baltimore's a great place, i love the mayor and you love coming. presumably you had some of that. >> no.
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no, we didn't. you know, i didn't go to some of the pockets of baltimore where it's nice. i went down in the community where people are struggling every single day, and so what i did experience is people that love their city, but they are also concerned about their city as well. you know, when you have people that can't take their kids to the park because the gangs have taken over and you see drug transactions there, when you actually see the rats in the community, when you actually see the corruption there from not only in the mayor's office, but the zoning commission and there's some bad apples within the police department there, the proof is in the pudding. so i really wanted those people to tell their stories. stuart: is it correct to say that literally billions and billions of dollars have flowed right into baltimore in recent years and the end result is as you described? reporter: that's exactly right. money does flow into baltimore.
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but because of the corruption, the bad business practices, the fact that you have family members with business ties who have donated to campaigns exchanging money is why baltimore is in that state. many of those people don't care if you are republican or democrat. they care about their family and there is an opening for conse e conservative or libertarian. as you noted in the past, it has been democratic leadership in that community but there's not a response to that democratic leadership, so you leave the people in baltimore with no other options. stuart: real fast, i know you are in detroit right now, the second debate is there tonight. looks to me like everybody is going to pile on joe biden. what say you? reporter: yeah, joe is the front-runner so you imagine that whether it's harris or the other candidates, they will go straight at him. that's one of the benefits when you are a front-runner. everybody is gunning for you. the last debate, you saw the
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craziness that took place. joe's going to have difficulty because he came in this race as moderate joe, the obama days. but right now, the party wants a progressive, someone that's going to be able to take it to donald trump, and joe is changing his positions so you expect to see a lot of candidates challenge him on those positions. i think joe is going to fight back, as you have seen some of the reports already. he's already attacking back with policy plans, condemning cory booker and kamala harris past criminal justice record so i don't think he's going to be taking it like he did the last debate. i think his advisers have officially prepared him for this debate and i will be interested to see how he does. we will be right here reporting on it. stuart: yes, you will. we will be watching. lawrence jones, thank you, sir. see you again real soon. thank you. you know garmin, right? you know them as the gps device makers. well, they have shifted big-time. now they focus on wearable fitness devices.
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it really is paying off. in a moment, we are talking to garmin's ceo. after this. ♪
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stuart: garmin, remember them? look at that stock go up today nearly 4%. well, they came in with record-breaking revenue and profits last quarter, and they said the future's going to be pretty bright, too. look who's here. the ceo of garmin, cliff pemble. cliff, welcome to the show. i remember you guys as the stand-alone little box that sat in your car, the original gps thing. but you don't do that these days. what do you do with this wearable technology? tell me about it. >> good morning, stuart. yeah, definitely garmin has gone through an evolution of our product lines over the years and auto is one thing we have been involved with, but we've delivered so much more across several business segments of garmin. from wearables, as you say, to concepts of business. stuart: what is a wearable? >> a wearable is a watch, if you
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will. we are one of the leading providers of active lifestyle sports watches, in fitness and also adventure sports. stuart: is that one of those golf watches, you can wear it and you point it at the tee and it will tell you how far away it is? is that what it does? >> yeah, golf is one area that we focus on, but we focus on many others as well, like running and also outdoor trail running. stuart: all right. you gave a rosy forecast. what is your forecast? >> so we're expecting ongoing growth in our business, we expect revenues in 2019 to hit about $3.6 billion which represents an 8% growth for the year, and we're now projecting our eps will be about $3.90 which is solid growth for 2019. stuart: you going to get into drones? >> we are not directly in the drone business but we do have
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technology that is sometimes used in the drone market. stuart: you are doing very well. you have a very rosy forecast. the stock is up very nicely. congratulations, cliff. great to have you on the show. we appreciate you being here. thank you very much. >> thanks, stuart. have a good day. stuart: sure thing. more "varney" after this. ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond.
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stuart: ring, okay, ring, that is an amazon-owned company. it makes those video doorbells. they're teaming up with 200 police departments. why and why is that not sitting well with some people? ashley: this is interesting. basically these security videos could be very handy to these police departments. if they're investigating a crime in a neighborhood, they, now that they're partnering with amazon, they can ask to see the
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video from the individual homeowners. if the homeowner says, sure, have a look, they don't have to get a warrant which they normally would. so for the police department the benefit they get access to a lot more security camera footage that could help them solve cases. but the question comes out, so the police department has ahold of these. could people hack into these? there is another story, amazon is giving free security devices to the police departments if the police departments then promote amazon ring to people, they will give away these things. tough sign up for the app and everything. there is question about wait a minute, the police department is getting into the business of hawking these products for amazon. there are a couple issues that don't sit well with a lot of people. >> there is lot of all tick notifications and false alarms which in theory wastes the police time especially if there is real crisis. somebody hanging out on the
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porch with the dog ran up on the porch. stuart: the cameras are there, everywhere. i want to get back to to a story. a youngster played monopoly, learned the lesson about taxation. are we running the tape. >> nine, 10, 11. let me fix my houses. but it's okay, it is part of the game. >> it is not. it is not fun -- >> it is not fun to what? >> it is worst part of the game? >> taxes. stuart: in case you missed it, he said the worst part of the game is taxes. the young man is in tears -- ashley: that is me on april 15th every year. >> everybody says that. it is a horrible game. stuart: wanted to show it to you one more time.
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dow industrials up 23 points. 27,200. don't forget later today, 2:00, eastern, "making money with charles payne." special coverage of the federal reserve. we'll all be there, including neil, who is about, neil, maria, me, lou. now, neil, it is yours. neil: there's a party. thank you, my friend. we have a lot coming up including the first round of rate cuts we could see in better part of a decade. that might just make the presidents' day we'll explain. there is an interesting correlation between rate cuts and how the next election goes. the next round of china trade talks are set. even though they're scheduled for september in the usa, there is little sign of progress on either side of the globe. a second round of debates set with joe biden promising to take the gloves off. he will be a target for other players there as well. meantime, let's take a good look where we stand. this is more than normal rig


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