♪ ♪ imus in the morning >> it's debate week and romney starts out on the attack. good monday morning, everyone. the gas price surge has been a sleeper issue, not anymore, governor romney has put the

doubling at the pump front and center. he wants to drill more and build that pipeline. the obama team playing defense saying that would not bring gas prices down. the rasmussen poll taken largely after the debate, show governor romney holding a two point lead and as we start the week, three brand new items, your social security check goes up just 12 to 24 bucks next year, that's it. ben says printing money is good for the world. and japan bids 20 billion dollars for sprint. big week, big show. "varney & company" is about to begin. [ male announcer ] this isteve. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens,

ich isn't rocket science it's just common sense, from td ameritrade. oh, hey alex. just pickinup some, brochures, posters opies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no ne to get nasty. here's your "honk if you had an afir with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners.

>> good morning, everyone, tomorrow's debate is town hall style and people will ask the questions, one issue of debate they're concerned about. gas prices, it's been a stealth issue for month and now mitt romney is hammering the president on it. the price today is 3.78 more than double what it was when prime minister took office and

mitt romney pointed that out at a campaign stop in virginia. >> why was it with gasoline at about twice at price as when he came in, that he cut in half the number of permits on-- for drilling on public lands, why he said no to the keystone pipeline? >> now, here is an issue that will not go away. libya, the administration is trying to downplay it after initially trying to tie the terrorist attack to an anti-muslim movie. here is chris wallace on fox news sunday grilling obama advisor david axelrod. >> this is the first u.s. ambassador that's been killed since 1979, susan rice came on this show and five others and gave the american people a story that turned out not to be true and you're saying that we shouldn't discuss this? that we should wait and for the investigation to be completed? >> no, no. >> that's what you just said. >> chris, calm down that's obviously not what i'm saying. stuart: well, we'll find out tomorrow night and find out how the president responds to the libyan murder. a cascade of developments

putting the administration again on defense, but his campaign says the president will be more aggressive in his next debate tomorrow night. what do you think? check us out, follow us on facebook, we want to know what you think about this upcoming debate. next subject, yesterday austrian felix baumgartner became the first sky diver faster than the speed of sound. and he says that he didn't feel the sonic boom, but again, the air is very thin that high up. this is a financial program, so let's not forget the big money involved, 8 million people tuned in to watch the live stream and some analysts value the publicity that red bull got from that stunt at tens of millions of dollars. the definition of a publicity stunt went very well. red bull is a private company. sold more than 4.6 billion cans of that signature energy drink last year. how many will it sell this year after that terrific publicity? governor romney's post debate bounce in the poll appears to be

holding. we're one day away from the second presidential debate. the white house says the president will go on the attack. and the latest read. are the bulls really the true story. dig into them a little bit. the opening bell after this break. everyone has goals.

take the steps to reach yours, with us with real advice, for real goals. the us bank wealth management advisor can help you every step of the way. from big stepsto little steps. since 1863 we've helped guide our ients, so they catake the steps to help grow, preserve, and pass along their wealth. so their ftsteps can help the next generation find their own path. all us serving you. us bank

>> got a couple of numbers for you, before you see the opening bell chime in. retail sales up 1.1%. if you take out car sales and gas sales, that's pretty healthy spending on the part of consumers and another report about manufacturing in the northeastern area and that was a negative. down 6.16%, apparently, a negative reading there, worse than expected and 6 of one and half dozen of the others and we're expecting the dow to open up, 40, 50 points, when that bell stops ringing it has now and the dow has opened slightly higher. japan's third largest mobile carrier, that would be softbank is taking a 70% stake in sprint nextel foo 20 billion dollars, some serious money there. okay, nicole, where is sprint this morning? >> that's serious cash and we're seeing sprint up once again up over 1% right now for the last three months, sprint has been on a tear to the upside.

it's up about 70% or so, over three month's time and this, that we're seeing today here, stuart, this is the largest ever acquisition of japanese firm for the u.s. company and this one, we're talking about is 20 billion dollars. stuart: well, 20 billion dollars is somewhat cheaper to japan because of the strength of the yen. so, they're using a very expensive valuable currency to buy a very cheap currency, the dollar. but, i believe that softbank's shares are down about 5%. now, can you explain that? >> well, you know, when you're the acquirer and you're the one taking risks, it's often that we see that kind of action for the acquirer. so, we've seen softbank under pressure since late last week when the ball started rolling, but for sprint, it means cash, it means better competitive edge in the market, so, for sprint, it's a real win. for softbank it's-- >> and sprint can use some of

that money maybe to go after at&t and verizon and compete in the network business, that's my interpretation. >> time to duke it out. >> big deal, 20 billion dollars, not chump change. nicole, thank you very much indeed. the dow industrials are higher. up 22 in the first minutes. we're weeks away from the election, the candidates in a virtual dead heat. real clear politics has an average oo all of the polls last week, it has president obama and governor romney tied at 47. dead even. joining the company is with the maris institute of public opinion and joins us from the college. and i want to ask you about the internal polling techniques. seems to me that you guys, you pollsters, you don't capture enthusiasm. you don't capture the likely turnout. you may ask questions about it, but you can't tell me that how many people are actually going to vote for romney or vote for obama. you can't tell me that, can you?

>> no, i think we actually can pretty well. i mean, that's the whole purpose of these polls, we do model some likely voters and we do see that the enthusiasm for mitt romney supporters is above that for obama, now, not just enthusiasm though is what drives voters to the polls, but you'd much rather have it on your side of the equation than not. so, yes, we do ask about that we do see the difference and we see it to romney's advantage in terms of enthusiasm, but the whole purpose of this is to determine who is likely voter is and we'll do all kinds of gymnast particulars to try to figure that out in terms of asking a lot of questions and trying to look at that closely. so that's a critical aspect and we're seeing that the rates have gotten closer, which makes sense. stuart: you say it's getting closer, so, romney is pulling back a little, is pulling closer to president obama and in some cases surpassing him. is that-- is that flat-out the result of the debate? >> well, here is what went on.

the short answer is yes. the longer answer is that the race is one where obama had a slight edge, so the coming down of obama as a result of his performance and lackluster performance at the debate. that's what's done this, changed the structure of this race right now in essence a tossup nationally which you cite in the real clear politics numbers. here is the trick in this. most people made up their mind. so only, 5, 6, 7% of those who we talk to in three battle ground states after the debate told us it's as a result of the debate they since made up their mind. romney gets 2 for every one obama gets. not a huge change, not talking 5, 10, 15 points. wooer' talking 2, 3 points in a close race that can make the difference. stuart: can you share with us any internal polling results that you have seen since the vice-presidential debate? i don't think you've come out

with a full national poll yet, but i'm pretty sure you must have been asking questions after that debate. any input from you on that? >> well, we haven't actually been polling on that, we're about to go into two more states, wisconsin and iowa and polling those shortly to get a sense of those two critical states, but the vp debates in themselves are probably more for the entertainment value than for all of us political junkies, they don't tend to-- >> i'm not sure, when i watched the vice-presidential debate i was troubled by his joe biden's demeanor, just an average viewer, and something troubling with a man who smiles and laughs when you talk with iran getting a nuke. you don't think that troubles people. >> it affects the standing of biden with people, when it comes down to the next debate at hofstra university, the town hall debate is absolutely

critical, much more so than the vp debate. look, obama and biden had style problems. obama was lackluster and lack of energy and biden was over the top and both sides of the equation, i'm sure the obama side would like to add them up, the performance up and divide by two and get a steady energetic person all the time. stuart: lee, well, come back and see us, we want your results and we're fascinated by the debates and the impact on the electorate. thank you, indeed, sir. >> a pleasure, stuart. by the way the late rasmussen at the top of the hour. romney has a 2 point lead over president obama, and that's in the rasmussen tracking poll in the swing states and national average. the first results taken entirely after the vice-presidential debate, you will have them at 10:00 this morning. and also new at 10, cost of living increases for social security benefits will go up about 2% next year, roughly. and the smallest increase since

1975. ed butowsky manages money for the wealthy and tells us why it's not nearly enough to cover the cost of living for the 56 million people who get social security benefits. some international critics do not like ben bernanke firing up the printing press so much. they say all of that weakens the u.s. dollar and hurts the currencies of developing countries. that in turns hurts those country's ability to export and speaking of the international monetary fund meeting in tokyo yesterday. bernanke says it helps the economy, firing right back, bernanke. and gold, down $15. okay, 1744 on gold. to nicole, hasbro in the news why? >> well, this is all about toys. goldman sachs this morning, stuart, comes out and really puts a cautious on the toy sector overall, just and the reason why they're saying that is that the holiday shopping season is gearing up, that they're seeing accelerating declines per capita and to

spending. and folks aren't spending as much on toys and what's going on here, they put a sell rating on hasbro, a price target of 32 bucks from $34 and lowered mattel as well. in one area that did well for boys, well, that's been coming off as well. so, the big picture here is toys are not so hot for the holiday season according to goldman sachs. and also, we've talked about sprint, and guess what the two big losers are in the dow jones industrial average today? verizon and at&t. well, we can't go ahead and make a direct correlation between good news for sprint, bad news for the other guys, we can say that those names have been under pressure and continue to be under pressure again. the biggest two losers in the dow, at&t and verizon on a day when sprint is celebrating. stuart: and you might be an able to make a connection. 20 billion dollars coming to sprint from japan is hardly good news for its competitors,

verizon and at&t. nicole, thank you. the dow only with a 20 point gain, there you have it. time is money, 30 seconds, here is what else we have for you today. latest polls are showing californians may actually vote against raising their own taxes? what? shocking for california. we'll talk to the leader of california as republican party about that. a major japanese company buying sprint, a big deal here in the u.s., but culturally, interesting in japan. we'll talk about that with keith fitzgerald and don peebles, a prominent obama supporter will join us, what does he think the president will do tomorrow to rebound from two bad debates so far? let's hear from you, please. you can e-mail us, you know, varney@foxbusiness.com, here is how you join the company. seven early movers, watch out amazon and google. microsoft said the xbox music will be available for the game consoles starting tomorrow and microsoft is up 20 cents.

and what some pharmaceuticals get the fda approval for generic drugs, not much. and we told you earlier, japan's soft bank is buying a majority in sprint, and sprint is up just 4 cents and the stock went up last week, actually when this was suggested. and the consol energy company expects to post, surprise, third quarter losses and down it goes. the publisher ganet says circulation stops falling. and entergy down it goes. drug maker vanda says the sleep drug shows positive results, that's up just one cent, all they get out of that. the dow industrials up 26. president obama has to dig himself out of two holes at tomorrow night's debate. one, his poor performance against mitt romney. two, joe biden's antics at last week's vice-presidential debate. up next, a democrat strategist,

tells us how he has to do it. or does he think that lines like this actually worked? >> done before and what we're proposing. >> it's never been done before. >> it's been done a couple of times. >> it's never. >> jack kennedy lowered tax rates increased growth ronald reagan. >> oh, now you're jack kennedy. >> ronald reagan-- ♪ [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more

so your money can do more. [ rodger ] at scottrad seven dollar trades are just the start. our teams have the information you want when you need it. it's anothereason more investors are saying... [ all ] i'm with scottrade.

>> this early monday morning, 22 points higher for the dow. and as for the price of oil. where are we today? we're $90 a barrel and that's a

big loss. president obama has two holes to dig himself out of tomorrow nightt a lackluster performance during the debate and the rather strange behavior of joe biden in the vice-presidential debate. and the vice-president was laughing, sneering, he was smiling and even during very serious topics. joining me now is mark mehlman at the mehlman group and a democrat strategist. i've got to tell you right off the bat, i don't think it's right for the vice-president to laugh and sneer at his opponent when very serious topics are being discussed. and i don't see how president obama can reverse the view that vice-president biden was guilty of what i would call bizarre behavior. >> well, you know, what i think, what you think really doesn't matter very much when all is said and done. what matters is what the public thinks.. two polls of the debate, one showed a tie and one a biden win. we have to conclude the way you looked at the debate isn't the

way that they looked at it. stuart: after this he canned woo, i saw the vice-president in those split screens, laughing at the most inappropriate times, and as i say, i think his behavior was bizarre. i think that's now-- >> that's your judgment. no, no, i think it's the judgment of the average voter. i think-- >> well, but-- >> amongst independents, he lost ground amongst women and i don't know how we go from another four years with this man being a heartbeat from the presidency. i think that's troubling for very many people. >> but actually you're wrong though, it's not troubling for many people. the polls bear this out. in most polls, the overwhelming, they'd be comfortable with him as president and one poll showed-- >> i know you're a die-hard, you're-- >> i'm dealing with facts though. stuart: it is your job to point out that the strength of the democrats, and the strength of the vice-president. >> my job is the facts, it's the opinions that other people

express. stuart: i'll make the value judgment that thbehavior was bizarre, will you defend that, laughing during a discussion of iran getting a nuke or the murder of our ambassador in libya, do you defend laughing? you don't think that's bizarre. >> the vice-president wasn't laughing at the discussion, he's-- >> he's laughing during the discussion. >> yes, he wasn't laughing at the topic. the reality was, i think, that congressman ryan showed, revealed a certain amount of lack of preparedness, a certain amount of hypocrisy in that debate and i think that took the vice-president aback, but again, the real question is what impact does this have on the presidential election. the reality is president obama had had is a what lackluster performance and nobody would deny, but he went into the last debate for the favorite of reelection and goes into the next debate as favorite for reelection and governor romney has to change this in a dramatic way and he had a great performance at the first debate. it wasn't enough to fundamentally alter the dynamics

and see what happens in the upcoming one. stuart: we can disagree about opinion of course, but the fact is that governor romney did establish momentum after that last debate. that's a fact. mark out of time, you know how it is. a hard break coming up. i know how it is. mark mehlman, appreciate it. >> thank you. stuart: the price of gold this morning, it was down a few moments ago, i'm sure it's down still. 15 bucks lower. 17 of 43. all right. we showed you the video earlier. felix baumgartner's death defying sky dive from space. there's a-- best for red bull. you can find the red bull logo wherever you look and most of the world is talking about this and sandra and ed butowsky join the company the top of the next hour.

>> he is austrian, and his name is felix baumgartner. he's the first to reach the

speed of sound. and this is a financial program so let's not forget there's big money involved here and 8 million people tuned in to watch the live stream. some analysts value the publicity, that red bull, sponsors gottens of millions of dollars. ed butowsky is with us, that's called a publicity stunt and it really worked. >> it's brilliant. red bull, think how much an ad costs on the super bowl, okay? and what the value is. you know, they look at cost per thousand and people watch it. and this is got to go down in history as one of the most brilliant pr moves of all time in terms of sponsoring something. stuart: if you watched it you couldn't avoid the red bull sign, it was everywhere. >> i was wondering, what if this didn't work out? what then would happen to red bull's name, right? they would be forever attached to the guy who pardon, lack of better word, went splat on the ground and remember, this was successful and they can use this guy in commercials and he's going to write books and the endless value of this is big.

stuart: i think his mom was interviewed afterwards and she had the red bull logo sitting right here. >> there you go. stuart: and have they got a new product out. red bull? >> different flavors of red bull. so you can of course mix it with your vodka, right. stuart: do you? >> well, we were talking about the commercial. college, high schoolers, they love this stuff and it's dangerous, they're mixing it with alcohol. stuart: and think about this. >> we've probably said the word red bull, six, seven times in this short period of time and everyone is saying it as well. stuart: and we didn't charge for it. i'm not in the habit of giving free commercials, but i guess i just did. let's move on. new at ten, the first poll taken entirely after thursday's vice-presidential debate and 31 it's the rasmussen daily tracking poll and grand new numbers the top of the hour-- brand new numbers the top of the hour, we go. can your hearing aid do this?

lyrican. lyric can. lyric can. lyric by phonak is the world's only 24/7, 100% invisible hearing device.

it's tiny. but lyric's not just about what you can't see. it's about what it can do. lyric can be worn 24/7 for up to four months, without battery changes. incredibly easy to live with, lyric can be worn showering, sleeping and exercising. in fact, you might forget it's there at all. call for a risk--free trial. and you'll see lyric can also give you exceptionally clear, natural sound in quiet and nsy environments because of how it works with your ear's own anatomy. (testimonial section) (testimonial section) (testimonial stion)

did you know, 94% of people who use lyric would recommend lyric to a friend or loved one. can your hearing aid do all this? lyric can. to lea more about lyric's advanced technology, call or visit trylyric.com for a risk--free 30--day trial offer. you'll also get a freeinformati. why wait? hear today what a little lyric cacan do for you. lyric from phonak. li is on.

♪ >> all right. everybody, new at ten. we have our first look at voter reaction to the vice-presidential debate. the rasmussen tracking poll of likely voters says that romney leads obama 49-48 taken off joe biden's performance on thursday night. also new at 10, social security checks will not be going up that much next year. the government set to announce that social security will

increase 12, maybe $24 a month. is that enough to cover the cost of living increases for 56 million people? according to the federal government, it is. we have someone with us who says it is not even close to being enough. to the big board, and flat this monday morning, 13 points higher, that's all we've got. here is our monday morning company. sandra smith is here along with ed butowsky from chapwood investments, nicole petallides on the floor of the new york stock exchange. i go to you first, nicole, amazon, what is it doing? looking to expand its business in an unexpected way? >> yes, we've been following the story all morning long. at the top of the 9 we said watch texas instruments, and jumping more than 4% this morning, though it's coming off its highs. amazon is in advanced talks to buy the supplier chip for tablet and this would be texas instruments. so, amazon right now is down over 1/2 a percent and this is according to reuters, and this texas instruments chip is used

in the kindle fire. and the we'll continue to follow it. but this is a big, big, obviously, headline on wall street, and to buy texas instruments, that would be something. stuart: that would be a huge deal. i have no idea what kind of price we're talking about here, but that would be a very significant deal, requiring a lot of money from amazon, that's why they've dropped back to 240 i guess, huge. >> we should take a look at sprint. you want to check in on sprint? and talking about softbank moving ahead with the acquisition and wouldn't close until mid 2013, but we've noted that sprint has been on the run to the upside. it's lost some momentum so it's up a little bit now. stuart: that's real money. that's 20 billion dollars. you get your arms around. >> that's real money. i don't think i could get my arms around 20 billion, but i'd be happy to try. stuart: nicole, thank you very much indeed. new at 10 for you know, the

latest rasmussen daily tracking poll. mitt romney 49, president obama 48. and that's out of the last ten days, and romney had a lead or been tied on ten of the last ten straight days, with a reaction to the first debate, that's my opinion, and i think the first debate set the tone and that was romney out front. >> that's a game changer. stuart: it's a rahs -- rasmussen poll, that was taken after the veep debate. >> it's interesting, obviously, the shift has gone from the polls narrowly favoring obama to romney, but what's interesting in this specific poll that scott rasmussen points out is that just 2% of voters changed their minds and ttat's what led to this consistent change in the polls. so, while that's such a small percentage of voters that change their minds, as you're saying, following that first presidential debate, that's all it takes in this close of a

race. and that's why tomorrow's debate is going to be even more important. stuart: but that's just 2% changed their minds. i thought it was more than that, but satisfiesys, that's right. >> all the facts are in romney's favor right now. you look at the international situation and domestically and how bad the economy is. it's amazing right now things are so close. stuart: but you could say the economy is improving, 7.8% unemployment. >> yeah. stuart: retail-- >> you know where i'm coming from, i mean, things are not getting better. stuart: well, i say president obama had two holes to dig himself out of tomorrow night. his own weak debate performance and the somewhat strange, sneering behavior of joe biden. join us now is don peebles, a chief executive officers of the peebles corporation, a prominent obama supporter and yet he still comes back on this program, it's incredible. welcome back. >> thanks for having me. stuart: you've got to give me a comment about vice president biden's behavior. i describe it as bizarre,

troubling and unnerving. >> we saw the pendulum swing, the president was much more subtle and relaxed, if you will, and calm, not as engaged as mitt romney so biden went and became very aggressive and also, i think it gave the president some good feedback to see how well received or how poorly received an aggressive attack on the opponent would be. and i don't think, i think vice president biden did what he was expected to do, which was to go out there, ruffle-- >> wait a minute, don, this man is a heartbeat from the presidency. do you want that man, the vice president of the united states of america bizarrely laughing, grinning, sneering, during the discussion of iran getting a nuke or the murder of our ambassador in libya? that's not bizarre? >> i don't think his behavior was bizarre. i think it was tactical. stuart: tactical? >> no, no, wait. stuart: that is tactics to go

out there and grin and sneer? >> and i think also he was frustrated and he let his frustrating show that he felt that what ryan was saying was not accurate. and he was frustrated. i don't think it was his best performance, i think the first two debates were not helpful to the president's campaign, but the polling numbers that we're just talking about, how close the race is, that favors the president. romney, knin order to win, you want to know why. stuart: how does it favor the president. chri chris:. >> he's got a strong ground game since the last election and while the republicans were building a nomination, the ground game is going to benefit from getting voters to the polls and the race this close. stuart: no, no. >> with a race this close it boils out to turnout. you can get the voters out. stuart: very good point now, there we agree. now, let me point out something to you, the latest washington post abc poll shows poll

intensity and that relates to turnout. 60% of those people they've polled were they enthusiastic fo president obama, 60%, but 62% were very enthusiastic for romney. when it comes to turnout romney's going to get it. president obama does not. >> no, i don't think so. it's not just about how motivated the voters are, but how they're identified and taken to the polls. stuart: how many people, no, you're a democrat. >> i'm a democrat. stuart: you're a big obama supporter, we've got it. how many people do you know, come out and say we've got to have another four years of president obama, this country can't do without for more years, we've got to have this. >> quite a few people want to support the president. stuart: really? >> when they look at the-- i don't know a woman, not one woman, democrat or republican who is excited about romney because of his position on choice. stuart: what? >> and that-- >> come on.

>> every day, and there are many women passionate about voting for rom in i. >> not when ryan goes on a debate and talks about the fact that the white house is going to advance a pro-life position. that, that is a-- >> advancing a pro-life position, that's awful. but when the-- >> and when the election comes down to-- >> not the government's role. >> when the election comes to the economy everyone knows that president obama is failing miserably and women are supporting that position? >>, but actually the data doesn't show that. look at ohio, for example, the growth in jobs over the last 18 months has been very significant in ohio. and so, if you look at the manufacturing jobs that have grown in that state. that favors the president. ann romney can't win without winning ohio. stuart: you've got, look, i've got 20 seconds left and we invited you back on the program and very glad to have you, tell us in 20 seconds what the president should do tomorrow night. what's his approach? go.

>> be presidential, talk about what he has done not about what romney, what's wrong with romney, but what's right with obama and be presidential. and the country needs to see their president not a candidate, not an advocate. not an activist. stuart: okay. will you come back again? >> absolutely, i look forward to it. stuart: are you a glutton for punishment? >> i enjoy your companies and your commentstators are interesting and doug was on last night and i love this balanced approach. i notice you were quiet when i talked about this by the way. she didn't pipe in. he did, but-- >> i think that women will vote with their wallets. stuart: look, don, it's simple. abandon the other guys and come over to the right side. [laughter] >> don peebles everyone, a great guy. thanks for joining us. >> thank you very much. stuart: vice president biden laughs off issue in the only vice-presidential debate. they say the president will be

in attack mode and my take is coming up in about 20 minutes. that will be 10:26 on this program, eastern that is and new at ten, this goes right to your wallet. your social security check goes up just $12, maybe 24 bucks next year. that's it. and talking a 2 percentage point increase the smallest since 1975. ed butowsky is with us, he manages money. why is that increase not enough to cope with cost of living? >> oh, it's nowhere close. first of all, the cpi put out by the government, consumer price index is not a good reflection of the increase that everyone experiences year after year, in terms of how much it costs to live one year, this year versus next year, but when you look at the cpi number, it's 4%, they're getting a 2% increase. when you run the numbers, $24, -pit's a 2% increase on their ct of living increase, you just got a 50% decrease in terms of all you're doing is living off social security, so, every senior out there needs to understand, everyone living off

of social security, needs to know that you just lost 50% of your purchasing power this year versus last year. stuart: is that accurate, ed? the consumer price index over the last 12 months has gone up 4%? i thought it was more like 2%. >> no, look at it, 3.6, that's what it was last year and looking right now, if you look at year over year basis it's about 4%. this is not the number. so, this is what the point, because the economy is so bad, because things are so bad in this country, and the government can't keep up with the cost of living increase, this is a disaster for everybody living on social security. stuart: 56 million people. >> oh, 56 million people and that's the problem, people need to connect the dots and understand, when you hear that headline and think about it not only, stuart, affects people living off social security, it's people paying taxes. stuart: you're miles from social security, but what's your-- >> no, i'm thinking of what it takes to live today and when you look at the past four years, what's happened to food prices and gasoline prices, you're paying more for just about everything that your life demands on a day-to-day basis.

stuart: those dollars are going to have to stretch farther. stuart: all right, we're always interested in bringing you stories about new drugs and drug treatments for allments. eli lilly has gotten some positive results for a stomach cancer drug. so, nicole, what's the story here and the stock, please. >> i'm going to tell you a story, another advancement on the war in cancer, in in case we're watching eli lilly. the stock is jumping on the latest clinical trials, the experimental trials that they have bean doing, moving into the late stages of their goal and it's really doing well. it's up 31/2%. this is for gastric cancer, it's a drug that basically improves overall survival. the name of the drug, should bring in isi says 600 million in the drugs in gastric cancer alone. stuart, this could boost sales farther. it's being tested in other tumor types as well and so we'll see

what happens, whether those tests are positive, but the long and short of it is that it improves overall survival. stuart: you know, we like to see a stock go up and we love to hear stories about something bringing in a lot of money, but the best news of all is that the potential to ensure us an about thor life for those people who have this ailment, this condition. >> no doubt. stuart: and that's the good news out there. good if you have, nicole, thank you very much indeed. well, the japanese move in and buy a big stake in sprint nextel. so, what exactly do they want with that company? keith fitzgerald, he has intimate knowledge of the japanese culture. got a very good story for us and bring it to us after the break.

>> once again we start the week, start the day, dead flat for the stock market. as of right now the dow jones industrials average is up just 8 points. we're continuing to get a split picture of the economic recovery. companies, big businesses still struggling. empire state manufacturing index was lower. consumers still spending. retail sales up more than 1% in september. even when you take out gas and car sales, still a sizable gain. and citigroup, a big gain of the day made more than expected. revenue 19.4 billion dollars and also more than expected. mortgage business doing better, and another sign of a housing market improvement and cittgroup is now 36 bucks a share. and look at sprint, a japanese company softbank, 20 billion

dollars, big business there. and a willing cultural angle and our market watcher keith fitzgerald spent a lot of time in japan. he's going to join us from 90 seconds. this is a cultural as well as a financial story.

>> just in, as they say, the latest read on the swing states from rasmussen reports. the daily tracking poll of the 11 swing states now shows president obama and mitt romney in a dead heat. it's a tie. 48-48. there you have it. the japanese company softbank is

paying 20 billion dollars to buy a 70% stake in sprint. and big money, big deal. joining us now is keith fitzgerald. and keith, i know you spend a lot of time in japan, about half the year in japan, i believe. and you have relatives there. i understand there's something interesting culturally here, the man who runs and founded softbank is actually a third generation korean in japan, which is extremely unusual. can you give us some of the cultural background here? >> absolutely. and if i were in japan i'd greet you with good morning. and the interesting thing about this is it shows how aggressive japanese corporations are, china is getting the press, year to date. they've been buying foreign companies for two reasons, and the people are aggressive and understand that their survival is actually outside of japan and going on the hunt for resources, pharmaceuticals, technology and this acquisition is a classic example how to get ahead and yet

remain outside the traditional japanese system that's so ham strung right now. stuart: but it's extremely unusual of someone of korean descent in japan to make it to the absolute top, it's very unusual, isn't it? >> yes, it is, as the generations pass it's more and more common usually in the tech interest because that's avant garde and expected to be different in that industry. a traditional industry like power or heavy machinery wouldn't be the case, but another couple of generations that's happening. stuart: but in japan, the population is falling, i believe. a huge demographic problem. the population is falling so evidently softbank doesn't see its future in japan so much as it sees its future in america with sprint, i've got that right? >> yes, many japanese corporations feel the same way, stuart, because they know that growth is going to come from companies outside its own home market. they've been hobbled, their lost decade is now in its third lost decade. eight failed stimulus attempts

and debt is out of control and makes greece look miserly, they've got to go outside or die. stuart: they've got a valuable currency, the japanese yen is super strong so when they spend 20 billion dollars, they're buying a cheap currency, the dollar and using a very valuable currency, the yen to do it so this kind of acquisition makes a lot of financial sense to japan, and japanese companies? >> very much so. it's like they've gotten 25 to 30% discount on anything they want to buy in another currency because the yen is still near 26, 27-year highs. stuart: why is softbank stock in japan down? >> i don't have an answer for that. i don't think that the japanese know what to make of this yet. the understanding of foreign markets is very limited on the nikkei exchange so i think they just haven't priced this in yet. my-- i have rented lips today. softbargaining remains hobbled by debt from an earlier acquisition and maybe it's more

debt and maybe not going to prove out. the chairman is making had a calculated play and he knows the growth is here. stuart: do you speak fluent japanese? >> i used to speak fluent japanese and now my japanese is going by the way side. stuart: oh, dear, do you expect more acquisitions like this from strong yen japan to weaker currencies elsewhere? >> undoubtedly. undoubtedly. as i say the latest data shows that it's 101 billion dollars this year alone, and that is on pace, actually, exceeding, it's the highest year on record, -pexceeding the japanese acquisition pace of the late 1980's, early 1990's that everybody was so scared about so they're buying more faster now. stuart: keith fitzgerald, always a pleasure, thank you, sir, see you soon. >> thank you. stuart: tomorrow night is president obama's chance to dig out much two holes, the first in his debate and the second vice

president biden's. i'll have my take on this next. ally bank. y theyave a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. profsor sargent, n you ll me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally.

> >> it's not troubling for many people. the polling is clearly. majority of people said they'd be comfortable with joe biden as president should he have to become president. and two polls-- >> i know you're a democrat.

>> and we went on from there. that was mark mehlman in the last hour defending joe biden's behavior during the veep debate. don't forget tune into "varney & company" at 9:20 eastern sharp when we start. still a flat market, we're looking at the trading session, not much changed. up about 13 points, that's it. a stock that almost everyone knows hitting a new high. what is it and why, nicole? >> all right. new rubbermaid, nwl rubbermaid, you know the containers you put the leftover sandwich in, whatever. the stock is at a new 52-week high and you're seeing it to the upside jumping. and jumping to a new high and take that. >> wait a minute. >> one thing we should note, yes? >> i hear that the third day in a row that rubbermaid is higher. >> that's why it's moving to a new annual high and shut note today bank of america, merrill lynch made a new coal over to

the u.s. 1 list and that's good news and may be one of the reasons why it's moving higher. i think it is, thank you nicole, very much indeed. there may be hope in california yet. the fate of chris christie, the state that chris christie made fun of during the republican convention. >> jerry brown, jerry brown? i mean, he won the new jersey presidential primary over jimmy carter when i was 14 years old. stuart: and he may have a point. remember, jerry brown is pushing voters to approve higher taxes, that's right, he's asking them to pay more. but the voters may be coming to their senses. in a recent poll of california vote e49.5% say they support the measure. that's an 8 point drop since september. 41% say they oppose it. that's a sea change. the head of the republican party in california, tom del vacar 0:

he has defended them, will he take a victory lap? may be changing there. three weeks ago, the second romney-obama debate tomorrow. here is my take. i think the president has to dig his way out of not one did you two polls, two weeks ago, he lost the first debate with a lackluster performance, that's hole number one. the second is the prchlts of his vice president last thursday. joe biden dug a very deep hole for his boss, i thought his behavior was bizarre. over the weekend, the videotape of his smirking, condescending laughter, appeared just about everywhere, it was impossible to look at it and not feel some concern for the next four years. if joe biden remains within a heartbeat of the presidency, whoa, what's that say? it's inappropriate to laugh during a discussion of iran getting a nuke, or the murder of our ambassador. looking at that tape is troubling. so, tomorrow night, president

obama will be in a tough situation. it is a town hall style event where private citizens will ask questions directly to the candidates, again, no teleprompter. you will have to look regular people in the eye. you will have to give straight answers without straying too far into attack mode. and he will have to convince the world that he and his vice president really are the best people to lead america for another four years, tough going. [ mujahid ] there was a little bit of trepidation,

not quite knowing what the next phase was going to be, you know, because you been, you know, this is what you had been doing. you know, working, working, working, working, working, working. and now you're talking about, well you know, i won't be, and i get the chance to spend more time with my wife and my kids. it's my world. that's my world. ♪

that's my world. you see us, at the start of the day. on the company phone list that's a few names longer. you seus bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of userving you,

around the country, around the corner. us bank. >> guess it was only a matter of time. soft drink makers and soft drink, restaurants, suing over the soda ban. the american beverage association says the city and mayor bloomberg shouldn't tell people how much soda they can drink. the ban is set to go into effect in march and would stop restaurants, cafeterias concession stands from selling sugary drinks in containers larger than 16 ounces, they're suing. and mitt romney has started hammering president obama on gas prices and using the price of gas as an example of the president's failed energy policy. and joining the company from chicago is dan with tjm institutional services and i don't want comment on policy or the election, i want you as a commodity trader to give me a

forecast for the price of gas. can you? >> i can give it a shot. i would say in the short-term it's going to go down. there's two things that really affect oil prices, tensions and demand. right now there was a global demand forecast, that was down. and iran has been conciliatory about their nuclear program. that's not going to last. the markets have taken it well and oil is down $2. look for the 85 level to be tested and maybe gas prices, we're paying 3.84 look for 3.50 level. stuart: you're in chicago, obviously you're in the chicago area and paying 3.84. and those poor people in california 4.60. that's a refinery issue, i believe and environmental regulation issue over there, is that right? >> that's correct and you know, we have those every once in a while here, too, a refinery going down and we have a couple around here and when that happens you get the temporary spike in prices and it's unusual.

chicago is one of the higher areas in the whole country and we have refineries all over the place, but in the summer we have a summer blend which costs a little more. the reality is, you know, you didn't want to talk about policy, but we need to have the north american countries, canada, the u.s. and mexico start dictating the terms where oil is. we have natural gas and let's get it. >> please, i should have asked you from the get-go. that's good stuff. and dan, come on again, sometimes and give us some more. >> okay, dan, thank you very much. joining the company now is joe quinlan with u.s. trust. we go to joe because i want the opinion of wall street. he is to me mr. wall street. do you object? >> no, i don't. stuart: okay, good. i want to know what wall street wants. you guys collectively, do you want to go over the fiscal cliff, in other words, sharply higher taxes, much less spending. do you want tax reform from romney, lower tax rates and end of some loopholes. do you want ben to keep printing

money ad nauseam. what do you want? >> we don't mind ben printing money, but we want tax reform, a road map to see how the country is going to deal with fiscal. spending, tax increasings, what are we doing and why. do you just want a decision so we've got certainly, even if it was raising taxes so long as you were dead certain, what you're going to get. i wouldn't mind that or the corporations that have to look out. three, five, six years and strategic in terms we're going to put this money to work, what's the demand going to look like, there's no road map. >> i want your opinion, if we did go et -- get tax reform the way that governor romney laid it out. for corporations and individuals, and elimination of loopholes, but a lot of them. will that meet the bill? is that what you want? >> i think that's a first step forward, simplifying the base and talk about broadening the tax base. stuart: what it get the economy

going 4, 5%? would it? >> i don't know about 4, 5%, but i think it would unleash the corporate earnings and cash, more hiring, more investment. greater exports, more manufacturing. so it would help, but it's one step that we have to take. it's a critical first step that has a snowball effect that would help drive confidence and so far. stuart: wouldn't that give us 4, 5% growth and restore confidence and put that private sector money to work in the economy? >> if we could grow this economy at 3 to 4% real term on 15 trillion base, we'd have good market, and good employment and show the world we are the best economy in the world. >> so, wall street favors a romney victory? >> i think that wall street favors any policy clarity out of washington, house and senate. remember, the white house is important, and what happens on capitol hill is very important important as well. >> suppose wall street got clarity with a tax increase on wealthy people and a sharp cut in military spending and social spending. suppose it got that?

would they be happy? would they be-- they'd have clarity. >> not necessarily, you've got to see where the cuts are coming from and talk about dividend paying stocks and did they lose some appeal because of the higher taxes related to dividends? would they be happy, if it's for the better, for the median long-term health of the economy, you could see some of the markets rise here, but deep cuts, fiscal cliff, no, the markets don't want that, because that's abdication of leadership. stuart: on the wednesday morning after the tuesday election, that's a romney sweep, he's in the white house, the republicans take the senate, increase their majority in the house, does the market go up? >> i think it goes up, but how long? because there's work to do after a republican sweep. or a democratic sweep. so, yes, i think there would be a knee jerk reaction to say, wow, we're back in business, but at the same time. >> i've got to-- >> we still have to deal with the issues, republican or democrats. >> what's the market so happy about right now? we're up 15% for the year, up 25% over the past year. and what is it that they're applauding right now.

>> earnings have been good, but peaked, but remember, this is a global equity market and we're the best of the bad lot. europe is coming out of europe, china, middle east to the u.s. and global growth have slowed down, but we're still the best game in town when it comes to reaching in and tapping new markets and emerging markets. and that's key. and it's the perception that the most globally competitive resilient economy on planet earth is america. so they're making a bet on america, it's a good bet. stuart: it's a good bet. >> i think so. stuart: if we get a romney victory? >> maybe the bet becomes a little more appealing. but remember, romney victory, there's a lot of work to be done. remember that democrat or republican. stuart: are you in the hedging business? >> no. stuart: it looks like you are. >> we are bullish on america, unequivocally. the private question the best in the world. stuart: to this date best in the world. we appreciate that, joe, thanks

for joining us. >> thank you. stuart: will you come back? >> certainly. stuart: two california stories, two stories out of california i should say, first, jerry brown's tax increase loses support in the formerly golden state and have residents finally had enough? that's next. and california congresswoman nancy pelosi now says this about passing obama care, quote, we read the bill. she said we read the bill. really? of course, this is an excuse to replay this. >> but we have to pass the bill so that you can find out what is in it, away from the fog of the controversy. gecko (clearing roat)

thank you, mr. speaker, uh, members of congress. in celebration of over 75 years of our govnment employees insurance company, or geico...as most of you know it. ...i propose savings for everyone! i'm talking hundreds here... and furthermore.. newcaster: breaking news. the gecko is demanding free pudding. and political parties that are actual parties!

with cake! and presents! ah, that was good. too bad nobody could hear me. geico. fifteen minutes could save you fifteen percent or more on car insurance. >> commodities are down big today. the price of gold down all morning and selling picking up now. and we're at 26 an ounce. and there's some positive economic news out of china and plus strong retail sales here in america and investors may be worried that the stimulus spigot might be turned off, down go commodities. the price of oil is down a buck 85 barely holding at $90 a barrel. as for gas prices they're lower down 3 cents over the weekend to a national average of 3.78. that's for regular gasoline. the dow industrials are barely changed this morning, right now we're up all of 10 points on the

dow at 13,339. two pharmaceutical companies both with profit drugs, eli lilly with a drug tore some mag cancer and abbott labs for hepatitis cment all big news all around. get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward gdance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade.

>> the federal deficit went over 1.1 trillion dollars in the fiscal year ended in september. it's just over a trillion dollars by the way. the treasury department told us this on friday. this marked the fourth consecutive fiscal year that the

federal budget deficit has surpassed 1 trillion dollars. four years in a row. nicole, let's get to toy stocks because they're in the news and i think they're down. >> they are and we're looking more at hasbro than mattel. because hasbro cut to a sell and talking about per capita spending that we're seeing. how much do you spend on toys? it's going down. and in fact, in one area that had shown strength which were boy toys, that growth has been decelerating and they put a sell rating on hasbro and cut the price target to both hasbro and mattel and put a neutral rating on the sector. that doesn't sound great for the holidays? >> no, i think we're redefining what is a toy. i think what a lot of youngsters get these days is electronics of various ways. >> i went to a birthday party yesterday, stuart where they asked for money so that the nine-year-old girl could get an iphone 5, not judging, but

that's what she wanted, and so the parents instead of asking for 15 junky gifts would rather get $20, $30, $60, whatever-- >> we've got it. >> towards the iphone. stuart: how much did you give? >> what do you care. two kids at the birthday party. stuart: is that a suitable presents for a nine-year-old? yes or no. >> i often give gift cards toe the children and parents can select what they want and in this case, i gave a cash gift card towards the iphone if they wanted to do so. stuart: how much was the gift card. >> enough, for my two children. stuart: $50 below or-- >> above, but. stuart: above, but how much. you cannot give $40 for a birthday party in manhattan. stuart: did you give a hundred. >> you're nosey, stuart varney.

stuart: 100 more or less. >> not telling, not telling. stuart: apparently 100-- >> good for you. stuart: we'll return to this subject. >> no we won't. stuart: oh, yeah. listen to this, the headline for you, and this is a headline for everyone, maybe there is hope for california, in a new poll, support for tax increases have fallen below 50% for the first time. and joining us now is tom del beccaro, he's the head of the republican party and whom i would owe an apology, i can't believe that the californians won't go for every new tax that's ever been put in front of them, but this time maybe this'll beat a tax increase, really? >> actually the last eight state wide tax increases failed. this is following the usual pattern. at the beginning of the year, do you want for education? californians are big on

education, but over the summer people find out they've been wasting money in sacramento, big surprise closer to the fall, what's on the ballot are you going to give more money, not are you going to give more to taxes. of course, we have the big fight between molly munger, charles munger's daughter and rival jerry brown and shooting themselves in the foot and that's why it's going to fail. stuart: do you think it's the beginning of a real change where californians walk away from much more spending and much higher taxes, finally see the light and reverse course? i'm trying to be optimistic for you geese, is it realistically optimistic? >> well, i think there's 2014 and 16 is going to be the bottom for the democrats. keep in mind we have eight of the ten worst foreclosure, unemployment areas. californians can't afford to bail out sacramento. when they turn it down. jerry brown, he has grown

government over the last two years, if you can believe it. i think the democrats are headed to a very difficult space especially after this tax increase is turned down e now, what about the general election? i still say that california gives at least a 10 point advantage to president obama. you're not going to contradict me on that, are you. >> no, you were at 15 the last time i was on. i'm glad you're down to 10. what's important is prop 32, if that passes along with the striking down of the tax increase, then california will be on the way for reforms. last time i was on the show, i told you, politics is a pendulum game and the pendulum is starting to turn back in california. stuart: okay, a few seconds left. your prediction, please. by what margin does president obama win california? >> less than the current poll of 14. >> less than the current poll of 14. okay, we've got two things, the current poll is 14 piston advantage of president obama and your forecasting to be less than that? >> i think overall romney is going to win by at least five

points. stuart: that's exactly what i said last friday. tom del beccaro, you're a welcome guest on the program. good luck. surprise, surprise. a new study says that liberals are big fans of whole foods. i was right on that one. and at the top of the list, the republicans, one of my favorite stores. we'll bring you the whole story after the break. americans are always ready to work hard for a better future.

since ameriprise financial was founded back in 1894, they've been commied to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. gether for your future. ♪

>> coming up, for years you've heard me say our middle class is the foundation of america. meet the author of a great new book on the men and women who make this country work. hidden america by jean-marie laskis. join us tonight. stuart: well, the administration continues to struggle with libya, the issue, we know now that september 11th the attack that killed our ambassador was a pre-planned terrorist attack. but the administration keeps trying to tie it to that ant anti-islamic movie. here is chris wallace grilling david axelrod. >> this is the first u.s. ambassador that's been killed since 1979. susan rice came on this show and five others and gave the american people a story that turned out not to be true and you're saying that we shouldn't discuss this?

that we should wait for the investigation to be completed? >> no, no. >> that's what you just said. >> that's obviously-- that's, chris, calm down that's obviously not what i'm saying. >> well, the question is, will the libya situation become an issue in the debate tomorrow night? >> it's amazing that this video is still being discussed. so here is the latest news on this, is that the video is still available on youtube, which is a google subsidiary, now, thousands of muslims have pledged these protests against google and they say they're going to the headquarters there in london at google's offices on sunday, over the weekend, and they're saying that the video is hateful and offensive and living in an age of mockery. and this isn't going to go away anytime soon and yes, if it's not a part of the debate tomorrow night, stuart, it absolutely should be, because. >> yes, it should be. >> because the american people are going to be demanding answers. stuart: i haven't seen chris wallace as angry as that and he was angry right there. all right. next topic is rupert murdoch, our boss, chairman of news

corporation, he says another obama term would be quote now, a nightmare for israel. and mr. murdoch said that in a tweet over the weekend. whaa do you make of it? >> well, i'll tell you, mr. murdoch is absolutely right. i know a lot of people. i'm jewish and i have a lot of friends over in israel they're very uncomfortable with president obama and i actually, you know, communicate with a lot of these and they just don't believe that he really has their back. a nightmare obviously implies that the united states won't be there if something happens with iran. i don't know if that's true or not true. i believe that we will be there, but we shouldn't get to the point we're at. mr. murdoch is spot on with this. stuart: we've had several senior people from the jewish community including two rabbis who say the jewish vote will still go, at least 60% to president obama. and you say. >> i think so, too, but it's starting to whittle down quite a bit. as you start to look at the economy, and people in the united states, jews in the united states and my friends will vote not because of the economy, but for other issues and other reasons, the economy is the most important thing, but in terms of israel i will it

will you flat out israelis are very uncomfortable with president obama. stuart: all right, public relations firm rbb commissioned a study to find out brand loyalty, when it comes to politics. i have to say once again, i was right. first the top democrat brands, liberals prefer google, whole foods and starbucks. warren buffett's berkshire hathaway also makes the list for the left. and for the the republicans, very different story, top brands are wal-mart, caterpillar, mcdonald's. all right, everybody i was right about the liberal and whole foods, was i not, sandra smith? >> you, you have been right about that. stuart: thank you. >> this is true. but, however, you shop at whole foods, i shop at whole foods. stuart: but look, the last time i went to whole foods i asked the counter assistant, i said, can you direct me to the twinkies or the lard in your store? and he was somewhat perplexed. and i felt that the other people shopping there were largely the liberal elite. >> maybe it was just your

accent. stuart: and you can't understand lard. is it different in america, say lard, say it. >> lard. >> lard. stuart: lard. [laughter] >> but i think-- you take my point. >> your point is taken. stuart: now, you agree with me. >> you win. stuart: whole foods is liberal hangout. say it. the highlight reel is next. new pink lemonade 5-hour energy?

5-hour energy supports the avon foundation

for women east cancer crusade. so i can get the energized feeling i need and support a great cause? i'm sold. pink lemonade 5-hour energy? yeah and a portion of every sale goes to the avon foundation for women breast cancer crusade. i'm sold. w pink lonade 5-hour energy. get the alert, energized feeling you need and support breast canr research and access to care. stuart: just in time for the highlight reel. roll it please. >> president obama has two holes to dig himself out of tomorrow night. >> i think vice president biden did what he was expected to do. >> his own lackluster performance in the fiist debate and rather strange behavior of joe biden in the vice presidential debate. what matters what the public thinks. >> the vice president was laughing,er. >> and in