all asking, the middle class, why are we so worried, what about our kids's futures, you can see again at 6:00 p.m. tonight. stuart varney will go through all this stuff as well in only the way stuart varney can do. it is all yours. stuart: here we go. let's not try to put lipstick on this pig. the jobs report was awful. good morning. five straight years, the wheat to the matters we were told the jobs boom is coming, let's be patient. enough already. auguste slows the slowest job growth of the year, wages than keeping pace with inflation. participation at the workplace remains at generational lows. this is another crisis for president obama. his policies have failed. middle america is worse off than when he took office. this is the worst recovery from any recession in a half century. today with the get the disconnect between the

president's spin and the economy "varney and company" is about again begin. here are those lipstick on a big jobs numbers. 140 jobs created in august, not nearly enough. that is the slowest pace of the year so far. up participation rate is at a generational low. here's the middle class squeeze, average wage up 2% in the past year. elizabeth hasselbeck, host of fox and friends is with us. welcome to "varney and company". >> thank you for having me. you gauge the pulse of america every day on your program. you assess for us how mid-america, real people see this economy. >> you just gave the hide numbers so i will give the hard

numbers. i think from experience and understanding and living in the world, you can say all you want that things are turning around. it certainly doesn't feel that way. when you look at employment, chronic unemployment, it hurts and it hurts generations of americans right now who were told find your passion and poured into a job something you love, we are not that country, you have people overqualified applying for jobs and what that does to someone who wants to get started in the workforce is crushed by a position that could be their starting place in a great career. the career is on the road to extinction for many people because they have to take a job that happens to be there if they are so lucky. >> the contradiction that the contrast between what we are told is going on and headlines of what is going on, the recovery is in progress, we are gaining ground and yet if you look at the ground floor, middle

america is losing ground. have we got that poll handy? it was from a few. a week ago. look at that. 57% of people when asked by you middle-class or upper class, 27% you said that is who we are, 72% in 2008. that is what i mean by the contradiction between what we hear from the president and congress and will we actually feel on the ground. >> there's a disconnect between reality and what is told to us as americans but here's the difference. americans a smart and they understand what is going on at home and if u.s. women across the nation how things are going because they're looking at the check book paying the bills and hitting the grocery store it is not looking good for them. they are making cutbacks in their own families with their homes in terms of education, even clothing with kids, cuts that are being made across the board within that home and people a feeling it. we need to elect leaders who went independent americans, not

those who went increase dependence, should it be the declaration of dependence in our great nation? it should be otherwise and secondly the conversation needs to shift at home. kids coming out of college, you have to not tell them what the law? right now it is let's hope you find something and inject your passion into it. if you want to survive we are in this nation. stuart: it is the first time ever. >> the second time. the first was so long ago i forgive you for forgetting. you are young and if there are any excuses about age and you are the most fun to be with. it is been too long. stuart: stay for a few minutes. let me deal with what is going on in the market, why you may ask is the stock market falling when we have this gross disappointment on the jobs front? because maybe janet yellen will delay raising interest rates with the economy so weak?

-psome are wondering if she hast run out of options for dealing with obama's economy. dow industrials down 24 points, not a big sell-off by any means. the s&p 500 also ever so slightly lower, 0.5%. amazon has been a lot recently. it is down because it has been up so much recently. i have got to tell you also the amazon is using the postal service to deliver groceries in san francisco. an interesting little fact, that gives the postal service the shot in the arm that needs. debate last night, the only debate in the california election, varney regular and california candidate for governor criticizing democrat jerry brown for a tesla which chose nevada over california or texas with battery factory. tesla is pulling back today, down 12 bucks, $4 lower at numb to dollars and $0.73. the grocery business must be

looking up the. supermarket chain kroger looking to hire 20,000 permanent employees. not much influence on stock. investors don't like that. it is of a quarter adding $0.25. as for the price of gold when the market is flat boulders flat, $12.67 is your price. with a weak economy you expect the yield on the ten year treasury bond to go down and that is happening. i see more michael cores bags on the streets, more than coach bags these days but i am not a great observer of these things. this has my interest. what is going on? nicole: you know what is taught and what is not and michael course has been a great contender taking market share from coach and the like. stock is down 4.3%. this is about more profit will be offered the point secondary offering by some of the founders

that will be stepping down. and also phyllis to, these people were involved in the original idea and made the audio possible so with that we are going to have secondary offerings, a levon.6 million shares representing a 5.7% stake in the company and almost $1 billion and they will be stepping down off the board. just so you know how it did in 2013, up 60%. everybody would love that. the friar year, 2012, the first year in trading, 87%. anybody would be happy with that at the end of the year. stuart: they must be walking away with a couple hundred million dollars each. thanks very much. we dealt with the markets, dealt with the jobs report, let's get to the president.

we are going to focus on geopolitics. lookit that number please. the gallup daily tracking poll has the president's approval rating down 38%. the other side of the colon is 54% disapprove. his handling of isis played a part in a low number, his latest news on that. the hunt for homegrown american terrorists, reportedly runs the social media campaign for isis, he knows computers, he is from boston. reportedly is in syria now. president obama holds a news conference. will we hear a strategy to deal with isis from him? what tone will the president adopts? will it be the fiery tone for the labor day rally on monday or the hesitant, almost confused rambling we heard on wednesday? elizabeth is still here, glen for punishment today. liz: like it or not i am still here. stuart: such a stark contrast when he talked about isis, he was subdued, talking to a campaign rally of unionists he

was passionate. what are we going to see today? liz: not sure. unfortunately the president of the united states is playing dress up with words and with isis and the situation we are facing as a nation and we have men and women who bravely and courageous and want to defend this nation because the president seems to see the middle east as a peaceful operation. we're giving, we are helping. our interests in the least in terms of not providing a launching pad for terrorists to come here and you're going to be asking average citizens who are not in the armed services, not in the military to defend their own homes if he doesn't step up to do something. my fear is he doesn't have the conviction and the belief system behind any strategy that he is going to lay out so i am not sure americans will believe him and i am not sure the world leaders will believe him and that is a sad statement. stuart: i want to play a sound bite from president george w. bush. this is from seven years ago.

listen to this. >> begin withdrawing before our commanders tell us we are ready would be dangerous buys -- for iraq, for the region and for the united states. it would mean surrendering the future of iraq to al qaeda. it would mean we would be risking mass killings on a horrific scale. it would mean we would allow the terrorists to establish a safe haven in iraq to replace the one they lost in afghanistan. increesing the probability american troops would have to return at some later date to confront an enemy that is even more dangerous. stuart: he got it absolutely right in july of 2007. prophetic. liz: shortly thereafter, at linked to the white house, we were offered wonderful invitation to spend time with president bush as they were accepting office and i remember

asking him about those decisions and how they would play out. i saw in his eyes the heart of a man, a leader, a father who made it difficult decision with the intent of keeping our nation's eighth and he remarked and i will paraphrase that time would tell and he truly believed he did was write for the nation. we heard those comments sayre and the place we are in right now, the united states of america so vulnerable in so many ways and i for a, i encourage many people to pray for the president right now so that he can get a little of that in his heart. stuart: shortly the president will appear at a news conference in britain. i believe he is going to answer questions and he will zero in on does he have a strategy to deal with isis? what does he have for the ukrainians? russia has made another incursion into ukraine, close to linking up to crimea, dividing

ukraine. what will the president say about this and will he deliver his message with passion? we will find out later on. thank you very much indeed. liz: thank you for having me. ashley: stuart: dow jones industrials going nowhere. we have this awful jobs report. virtually no market action to speak of. it is a difficult jobs report. as real weakness, real disappointment. we thought we would take off. here comes the election. of the republicans win the senate and they might, will we see real economic growth? will there be the upswing we have been promised? here it comes, yes or no. steve forbes has the answer after a this. musical chairs. fun, right?

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we are down $0.89 at $93 a barrel. now this. we are talking about the disconnect between the number economists handout end of the way main street actually feels. no disconnected day at all. that line job creation number 142,000, that was pretty bad. how does that feel on the ground? look at this. historic low for the participation rate, 62.8%. america is not working. it looks bad, feels bad. steve forbes is here. if the republicans win the senate in november do you think that will be the inflection point there really does get this economy going? >> you have to get policies change to get the economy going and even though they may control both houses of congress they don't get control of the white house. stuart: the field that may be obama and his policies will be in retreat and maybe there's a bright spot in the future, that

could raise the economy. >> that could raise the stock market, the economy little bit and republicans have to show they stand for something other than they don't like what the president has done. stuart: you don't think most of the republican party in congress at the moment. >> so far they haven't come up with much or put much out for their candidates to run on so yes. in spite of themselves they do well in november come january what they put on the table? radical reforms for tax change? real positive changes on the table about obamacare instead of just saying we don't like it? we will see. stuart: you want to see real tax reform, lower court for rates, lower individual rates and you don't think the republicans are going to do it. >> they should do it and there could be four five after november because a lot of democrats looking at 2016 running for reelection will want to have something positive to run on and the white house won't save them. stuart: in the democrats's interests to get the economy

going and the only way to do that issreal tax reform. >> all ends up at the white houseewith the president doing serious negotiation lizzie accuses republicans of being obstructionist, he is describing himself. of you wanted to cut a deal with democrats and republicans in making substantial cuts in the corporate tax rate the consensus alreaay exists to do it but in won't. stuart: absolutely sure of that? >> you would hope he would be looking to a legacy other than a feckless foreign policy and stagnant economy. stuart: he could seize the last two years and open up to tax reform and get the economy going and sail into 2016 with a 4% growth rate for the economy. >> at 2008 it was pointed out you could get more government revenues, he finally said it is not fair. he is an ideologue, he thinks he has done what he needs to do to take over the financial sector,

gum up the energy sector and take over health care, he thinks he is known rushmore, that is the world the lives in. that and improving his golf handicap. stuart: there you got that in. republicans sweep the senate, increase the majority in the house, in january they put forward comprehensive tax reform deal, lower corporate tax rate, may be set around with individual tax rates, passes the house, it passes the senate, goes to the president. do you think he would veto it? >> he could. stuart: these think he would? >> some new surprises with his obstructionism, if he did sign it that would be great but even if he didn't people would see come 2016 real change is coming so the republicans should do it anyway whether the president signed the not. but when you don't think the republicans are going to do it. i can see the disappointment in steve forbes's face. >> they are going to need

leadership and we will see if the speaker's office can provided and if the ways and means committee in the house can provided and if the senate finally says let's do something. stuart: you don't think it is fair. you don't think they have got what it takes to do it. >> you haven't seen the signs of it yet in the house. maybe after the elections they will get some mojo back. i haven't seen it yet. stuart: how about this? america is the place to invest right now. europe is in recession, japan close to recession, the world is a mess, america is stable, america is safe and we are expanding and 2%. america is the place to be. >> america is always the place to be even in europes like the 70s or what happened after 2008-2009. this country always gets back on track unlike other countries around world. we are going to pull ourselves out of this rut especially after 2016 so yes, this is the place to be and people like vladimir putin who think we are in

terminal decline will end up on the ash heap of history but they will cause a lot of trouble. stuart: when you are not a stock market forecasts or prognosticator but do it anyway. you put your money to american stocks and keep it fair? >> always keep it in the stock market especially retirement money. ultimately the market is your friend. individuals, why they lose and line in the market, they get in at the wrong time, out at the wrong time, you can't find these things, don't look at the averages, this market will always bail you out. stuart: dramatic at the end even if you don't like the republicans right now. thank you very much indeed. obamacare act. malware and malicious software installed, personal data could be exposed, just another obamacare problem. don't tell that to the architect of the law, zeke emanual. when he said this about his personal data on healthcare.gov.

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stuart: watch out. sales fall 2 present at the gap

and down goes the stock 5%. the obamacare website act. the government says the attack happened in july, only detected last week. no personal information was stolen, as they say but malware was installed. questions coming up about the safety and privacy of that website and we are joined by an ethical hacker, the ceo of nightlion security. they say malware was planted in the sight. you tell us what that means. >> fortunately for us, the malicious software that was installed on the web site was actually designed to attack other websites. wasn't designed to steal personal information so that was the positive side. the other side of it is the reason the malware was even able to be installed is the system administrators had default

passwords on the server. that hackers walked right in. stuart: so it was easy to install this little bug, whatever is, and it attacked other websites. not quite sure what that means to me. if i am going on the obamacare website, what does it mean to me this nasty little bug was attacking other web sites? >> a site like obamacare or healthcare.gov would have a massive number of servers attached to it so it could be designed to trigger attacks on other servers. say they wanted to attack bank for example and take its systems offline, you get computer systems literally flooding these banks with information so they can't keep up and process normal requests. stuart: it could be used to attack something else, attack mode as opposed to stealing information mode. why did it take so long to

detect the attack? malware placed in july, found out about it last week. what is with that? >> i don't know. one of the interesting things about this is they are actually not required to disclose any information in which private records aren't released or aren't hacked. there is no regulation or requirement stating they have to tell us about these attacks which is my opinion not the way to go. they had no obligation to tell us. stuart: tell us whose fault was the planting of the malware? the contractors? i think we got an audio problem. you can't hear what i am saying? no, he can't. to the stock market, let's see what we are doing and we have no movement. we are waiting for president obama, he is going to hold a news conference, he is expected

to discuss his handling of cases in the ukraine situation. this concludes the nato summit. that is where the podium is. it is in wales, part of great britain. the nato summit has concluded and the president is going to hold a news conference any moment now. we will take you to it in a second. the attorney general is with us, thank you for joining us. bearing in mind when you heard so far from the president about isis and ukraine do you think he is going to come out and firmly say with some passion, i have a plan to deal with these people and here it is. will we get that? >> i don't think we would get any passion. i think we are going to get a lot of help from the united kingdom, the prime minister, but the -- i think he will be delighted he has a coalition

behind him. -pmy concern is clearly will he aggressively pursue this coalition and make things happen on the ground? stuart: he has to give the go. he has to say start bombing from here, here and here and you do this or that, he has got to lead, coordinate, give the go, get out and do it and you don't think he will? >> that is what is worrying me. the jury is still out. you remember desert storm. general norman schwarzkopf had a 38 day campaign and day 100 our grand campaign. if president obama wanted to aggressively get out with an air campaign, somewhere between 60 conlan and 90 days using indigenous forces, ices would be finished. if we get the now in syria and

iraq. i haveenot seen any indications that he wants to do that and that is troubling even with the coalition. i hope he makes me wrong. stuart: do we have the assets in place, the military assets, do we have them in place? do we have indigenous local forces ready, willing and able to operate on the ground? if the president said go, could we go within a couple days? >> yes we could. we would have to struggle a little bit. we have enough intelligence surveillance and reconnaissance assets, those are global hawks, you 2s, readers and creditors, the unmanned aircraft, joint stars which is a large man aircraft that can match everything moving on the ground as the others so we have the intelligence assets that are giving us the domain dominance,

we know where 90% of them are. we probably have about 60% of the attack assets but the rest can be moved in to get 24/7 air campaign of the extensive nature is that i am talking about, but we can wrap it up fairly quickly and hitting a minimum of 200 targets a day. stuart: that is a significant campaign. one last question. do you think public opinion in america is ready, willing and able to accept that kind of big military commitment. >> absolutely. the american people after seeing two americans be headed now understand the danger of letting isis go unchecked. airpower is a way of doing it

with precision, laser like precision that puts a lot of the burden off of the american people and they want to defeat isis now. stuart: i want to go to rich edson at the white house. do you know what we are going to hear today? any announcements. >> no clue that what the president is going to say. and another ratcheting up of sanctions against the russian regime and the second is what exactly to do on isis. we heard from the president on the fronts throughout the nato summit. we have nothing in the way of details on either front and what the community plans undoing. stuart: hold on, want to go back to the general, address the ukraine situation. russian forces have made an incursion into ukraine.

that would essentially split ukraine. am i reading it correctly? >> you are spot on. that is pretense of check this. unfortunately, he has the cards. to give you an example, when i was a vice commander of chief, we have 4000 tanks stationed in europe with five aamored or recognized divisions. today, we have absolutely zero tanks and europe. we do not have a strong enough force on the ground. our european allies are equally as weak.

speak to what about that area?3 >> that is all kabuki. they are a light force. they will not last very long against the heavy armor that the russians have got. from a distance, i think they have become a pacifist. what is your judgment. the fact is, they have gone to

be a very passive group. they are worried economically. quite frankly, it will be questionable. stuart: not in europe nor america is any mood to fight. general, again, i will ask you to hold on for a second. >> the prime minister of the uk. he says, he was asked, do you take the cease-fire in ukraine

seriously. the announcement of the cease fire is good news. we have to make sure that that happens. cautious optimism. this is coming out of the white house, stuart. this is from john kirby. the u.s. is confirming that it did kill ahmed, the leader of house above. there have been some reports of that that have been confirmed. it is being confirmed.

i should tell everyone that we are just minutes away from president obama's news conference in wales. he is running late. we will get to that in just a moment. we will take a short commercial break. we will be back. ♪

nicole: right now the dow jones industrial average is down 13 points.

it will make it five straight weeks of gains. the dow, the nasdaq and the s&p to have down arrows at the moment. the new york police department will start testing wearable cameras. the stock today is up 2.2%. you do see the stock is up almost 1% today. the gap. banana republic and old navy. the gap is down. old navy down. coming up next on "varney & company" -- ♪ my mother made the best toffee in the world. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen.

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stuart: we are waiting for president obama. he is running about 15 minutes late. we will take you right there as soon as he appears. right before the president speaks, the markets are going nowhere. the market may have react did earlier to the unemployment report. only 142,000 jobs ever created.

watch out for the headline number. the spin that everybody hears. dig deep and find out what is really happening to middle america. >> we are looking at the reeort from the federal reserve that came out yesterday. they both basically say the same thing. middle-class and lower income workers are improving. in the last three years of this economic recovery, under the president's policies, middle-class workers have lost around with their incomes. the incomes adjusted for inflation fell 5%.

stuart: the only group, the income group which gained ground in the last few years. top 10% from income workers. i think that that is active. >> they pretend to be college educated or in prrfessional and managerial jobs. stuart: i do not know how far you have dug into this. i do not think that this is all the result of president obama's problems. i think those have to come into play, as well. >> and the policies. no one is making any money on their savings accounts. you are right. there are lots of factors that

affect the economy and job growth. stuart: when interest rates are at zero, you have no interest to turn them into a cd. the only place you go for a decent return is the stock market. all of the federal reserves venting of money has held that top 10%. >> you are right. there was very little growth in savings and retirement accounts over the last few years. where it did happen was with higher income earners. stuart: we did just get the two-minute warning. the president is about to appear. you say we are a touring signs, like the signs that lead up to

9/11. >> we have had four or five key things. david cameron has gone to and increased alert status. we have had the king of saudia arabia say that isis is coming to the uk and the u.s. we have had secretary hegel and general dempsey two weeks ago today say that there is an imminent threat to us. we have had two beheadings. isis is a threat. we are not intimidated by you, america. you have 11 aircraft in libya that go missing. not to mention what may be a thousand americans or passport holders that are out there fighting for that islam is. general tom, thank you so much

for joining us. the podium awaits president obama. it is in wales. he is about to hold a news conference. he will be holding a news conference. the president has yet to appear. the president does occasionally appear lead to these events. as we head towards the president press conference, i will tell you that the market is absolutely dead flat. the market wants to hear what the president will say. i will not forecast with the president may or may not say. a spirited attack on isis. i do not know what would happen to the stock burkett. it comes out and makes a very moderate statement. we are looking at the situation. i have no idea what the stock

market will do. >> it talks more about coalition building. especially when he does return this weekend and he does return for next week. that is when congress returns. if you are going to hear any significant announcement, at least as far as the u.s. role is concerned. the man is campaigning for democrats in the senate come november. may be, rich edson, maybe he will answer that as well. >> that is for sure, stuart.

many of them have been inundated over the last few days. you have fewer headline jobs created. there are some particular event that happened in august that make some a little bit better. >> we expect the president momentarily. your comments about a run-up to another 9/11. would i be right in saying the general level of anxiety is really high for this point. >> it is very high, stuart. osama bin laden was dead. gm was alive.

we got hit. we really had a duty as the specials are starting to indicate. we did not come to the rescue. we completely, for political purposes try to stay in his political narrative. everything was okay. stuart: the president is speaking. >> i think the entire team for hosting this. i want to thank the people of newport and the people of wales for welcoming me and my delegation. it is a great honor to be the first sitting u.s. president to visit wales.

in the middle east, the terror threat pose a growing danger. our alliance has summoned the will, the resources, and the capabilities to meet all of these challenges. we have reaffirmed the central mission of the real liens. it is our solemn duty to each other. an armed attack against one should be an armed attack against them all. this is a binding, treaty obligation. it is nonnegotiable. we will defend every ally. second, we agree to reassure our allies and eastern europe. air controls over the baltics

will continue. there will be training and exercises that will continue. they will patrol in the black sea. all 28 nato nations agree to contribute to all of these measures for as long as necessary. third. make sure that nato remains prepared for any contingency. the alliance will update the planning. we will create a rapid response source that can be deployed at any notice. one billion-dollar nation will be as strong as ongoing u.s. contribution to this planet. fourth, all 28 nato nations have pledged to increase their

investment in defense and move towards investing 2% of their gdp in our collective security. these resources will help them invest in critical capabilities. this commitment makes clear that nato will not be complacent. our lives will reverse and drive to meet the challenges that we face in the 21st century. it is right to defend itself. they back up this commit it. all 28 native allies will secure security assistance to ukraine. not only support for the ukrainian military, as well as the ukrainian forces, including

logistics and command and control. here in wales, we send a strong message to russia. today, the united states and europe are finalizing to deepen and broaden our sanctions across the defense sectors. at the same time, we strongly support the efforts to pursue any peaceful efforts to the conflict in this country. the cease-fire today can advance. only if it is followed through on the ground. they must keep their commitments and russia must stop at violations of ukraine territory. we pay tribute to all of those from our mission. including more than 2200 americans. they have given our lives for the security and afghanistan. we are prepared for a new

mission. both residential candidates have pledged to sign the bilateral security agreement that would be the continued agreement of our cooperation. it must be resolved. we continue to urge to make the compromises that are necessary. we expand the partnership of global security. many that have served with us in afghanistan to make sure our forces continue to operate together. we will create a new initiative to help the defense with new

capabilities. i also leave here confident that nato allies and partners are prepared to join in a broad international effort. already, allies have joined us in iraq where we have stopped the advances. we have equipped iraqi partners. nato has agreed to play a role in security and assistance to those that are on the front lines. allies stand ready to confront this threat. secretary kerry will now travel to the region to continue building a broad-based coalition to do great and ultimately destroy isis. taken together, i think the progress we have achieved in wales makes it clear that our alliance will continue to do whatever is necessary to protect

defense and to protect citizens. with that, let me take a few questions. i will start with the associated press. >> thank you, mr. president. if the cease-fire does take effect, would you urge your counterparts to back away from these sanctions? if i could go back to the rapid response force, would u.s. contribution to the significant? is it the odd the agreement that you announced? >> with respect to the cease-fire agreement, honestly, we are hopeful. based on past experience, also skeptical that, in fact, the separatists will follow through and the russians will stop violating ukraine's sovereignty and integrity. i know that the europeans are

discussing, at this point, the final shape of their sanctions. it is my view, it can take some time to implement. as a consequence, for us to move forward based on what is currently happening on the ground with sanctions, while acknowledging that the elements of the plan are implemented in those sanctions could be lifted is a more likely way to ensure that there is followed through. that is something that obviously we will consult closely with our european partners to determine. i do want to point out, though, that the only reason that we are seeing the cease-fire at this moment is because both the sanctions and the further

sanctions which are having a real impact on the russian economy and they have isolated russia in a way that they have not seen in a very long time. the path for russia to rejoin the community of nations that respects international law is still there. we encourage president who cared that unity and the firmness that we have seen in the transatlantic alliance and supporting ukraine in applying sanctions has been, i think a testimony to how seriously people take the basic principle that big countries can just stomp on little countries. changing their policies and giving up their sovereignty. i am pleased to get you the kind

of work that has been done throughout this crisis in ukraine. i announced $1 billion in our initiative. a sizable portion of that will be devoted to implementing various aspects of this action plan. we have already increased our rotations. we have the air policing. we have the activities taking place in the baltic. this alloos us to supplement it. it allows us to coordinate and integrate it further with additional contributions from other partners.

what it signifies is nato's recognition. we mean what we say when we are talking about our article five commitments. and increase presence serves as the most effective to any additional russian aggression that we may seep. angela king. >> thank you, mr. president. what are your specific expect haitians? is there a role there? as you know, secretary kerry today said that he expects the allies around the end of september. do you agree with the timeline that he set out.

>> let me start with a general point. there was unanimity over the last few days that isis poses a significant threet to nato members. there was a recognition that we had to take action. i did not get any resistance or pushback to the basic notion that we have a critical world rolling back. it is causing so much chaos in the region. it poses a longer threat to the safety and security of nato members. there is a great conviction to do great.

that was extremely encouraging. beyond that, what we have already scene we have seen significant support. keep in mind, we have already taken 100 strikes that have had a significant impact on degrading their capabilities, and making sure that we are protecting u.s. citizens, critical infrastructure, providing the space for iraqi government to flow. we can work with them on a broader strategy. some of them have been in the form of providing additional

arms to the iraqi security forces. there have been logistical support, intelligence and surveillance. a variety of folks with different capabilities has already made a contribution. i am confident that we will be able to build on that strong foundation and the clear-cut now, john kerry will beush back. traveling the region. to have further consultations with the regional actors and players. i think it is critical that we have that arab states and specifically sunni majority states hat are reject the kind of extremists nihilism that we

are seeing in isa that says that is not what islam is about. they are prepared to join us. they are prepared to take action as well. one of our bills will be capability. i still had significant capabilities.

we will have to focus on the capable units that are are ready bear. bolster them, we can support them from the air, but, ultimately, we will need a strong grounding. we will also need the sunni tribes in many of these areas to recognize that their future is not fanaticism that i still represent so that they start taking the fight to i fill as well. we are working deliberately, if you look at what we have done over the last several months. we have taken it in stages. making sure that building on the intelligence that we have done, that we were in a position to conduct limited airstrikes to

protect our personnel, critical infrastructure and engage in humanitarian activities. the third will allow us to broaden the effort and our goal is to act with urgency, but also to make sure that we are doing it right. that we have the right targets. that there is support on the ground if we have an airstrike. a strong political coalition. a dramatic effort that is matching a strong strategic communications effort. all of those things are going to as i said, it will not happen ovvrnight.

we are going to do it. ultimately, the feet isa the same way we have got after al qaeda. we have released the fact that we have killed a leader of auch evolved in somalia. we have been very systematic and methodical and going after these kind of organizations. that the liberation, we promised to do it right. have no dow, we will continue, and i will continue to do what is necessary to protect the people.

>> thank you, mr. president. i want to follow up on what you are saying about iso-. are those the same things in your mind? secretary kerry says that there is no containing them. you talked about the importance on the ground and in building up capacity on the ground. do you think that airstrikes are not going to do it here? did you expect the syrian army to do what is needed on the ground? >> you cannot contain an organization to that much territory. killing that many innocents and

enslaving that many women. the goal has to be -- if you look at what happened with al qaeda, where their primary base was, you initially put them back , you systematically narrow their scope of action. you slowly shrink the space, the territory that they may control. you take on their leadership. over time, they are not able to conduct the same kinds of terrorist attacks that they once were. in my last press conference, the nature of these organizations,

are the potential remnants of an organization that is running around in hiding and still potentially flying. we are doing the same thing we are doing with remnants of al qaeda. those that operate anywhere around the world. what we can accomplish, is to dismantle this network, this force, that is claimed to control this much territory. they can do us harm. that is going to be our object this. as i said before, i am pleased to see that there is unanimity among our friends and allies. @any are prepared to work with

us. with respect to the situation on the ground situation in syria, we will not be displacing u.s. ground troops to try to control the area that is part of the conflict inside of syria. we are going to ask to find partners on the ground to push back against isil. the moderate coalition there is one that we can work with. we can have experience working with many of them. they have been, to some degree are outgunned and outmanned and that is why it is important for us to work with our friends and allies to support them more effectively. keep in mind, we do have u.s. forces, other advanced nations going after i sell and putting them on the defense and on the

run, it is pretty intense what the ground forces can do even if, initially, they were on the defensive against isil. it is a developing strategy that we are going to be consulting with our friends and our allies, our regional partners. the bottom line is we will do what is necessary. we will make sure that isa does not get to the united states or our friendly partners. >> thank you, mr. president. how is the concerns of other democrats influencing your thinking? >> i have to tell you, this week, i have been pretty busy,

focused on ukraine and focused on isil, focus on making sure nato is boosting its commitments and following through what is necessary. j johnson has begun to provide me some of their proposals and recommendations. i will be reviewing them. my expectation is fairly soon i will be considering what the next steps are. we need immigration reform. it is to see congress act. we have bipartisan action in the senate. the house republicans have sat on it for over a year. it has damaged the economy. it has held america back. it is a mistake.

in the essence of absence of commercial action, i plan to take action to make sure we are putting more resources on the board and we are upgrading how we process these cases. we find a way to encourage illegal immigration and get people a path so they can start paying a fine and learned. be able to not look over the shoulder. the legal. they have been living here for quite some time. you know, i suspect that all my flight back, this will be part of my reading. taking a look at some of the specifics. i want to be very clear, my objection is in absence of action by congress, i will do

what i can do within the legal constraints of my office. it is the right thing to do for my country. all right. thank you very much people of wales. i had a wonderful time. >> number one, non-lethal equipment will be handed over to ukraine. there is a cease fire there. the president says that cease-fire was only the result of sanctions. president putin has, however, basically already one in ukraine. more sanctions to come. it was the sanctions that created the cease-fire. the president said he would degrade and ultimately destroy isis with a coalition. a strategic coalition, but there would be no u.s. ground troops in syria.

the presentations told was subdued. nothing like the campaign style that he used on labor day in america when he was attacking republicans. we will talk about our enemy, the isis people. all of the questions, all of them were asked by women. that was the president calling on only women to ask questions. julia is here. julie is a democrat, are you not? >> i am, indeed. stuart: i think you are being fair and balanced, as always. stuart: how does that happen? what i was very interested in is isis. a clear threat to the united states. he did not have any passion. never did he say i am going to kill him. i am going to get out there and kill them. he never said that.

degrade and ultimately destroy and defeat them. you think the president is going far enough? >> the difficulty here is not a partisan issue. in order to degrade isis, you essentially ask to get involved in a sunni civil war. if you get involved in a civil war, you are only strengthening the hand of iraq. no well-being in our country or israel either. you have to make some really tough choices. there are no good choices there. i am not so sure what the strategy could be. there are no good outcomes here. stuart: it could have had a clear goal. kill them and here is how we are going to do it. the american air force. we wwll arm anybody else who

will get on the ground and kill them. he could have said that. >> he could have. it is not enough to degrade and kill these people. you would have to think about our other components. what i wish people would think about is the fact that you have saudia arabia and other allies in the united states. this is stuart: are you to some degree disappointed with the president approach to this whole crisis. >> i am not disappointed because i am smart enough to understand that there are no easy answers to this. our beverage george bush saying we want bin laden dead or alive. that is a lot of swagger. i would rather see action rather than words at this point. >> i would not say it is flagger. i would save it is a little

david cameron, tony blair. this is who i plan to rally around. my plan is basically done. i can say to people like australia, join me in this plan. this is what i need you to do. this is what i need you to write a check for. we have to contain right away. talking about the strikes that are very effective. maybe going fooward. the way i understand, the cease-fire is a disaster. it looks like they are taking portions of east ukraine. you cannot get that country on its feet unless you get an industrial area going again. >> the president did say that there would be further sanctions. it was sanctions that created the cease fire. >> yes, sir.

the point is, putin has one. ukraine is now divided. russian troops are in ukraine. >> all the way through to crimea. they have leaked it. >> here is what you do with russia. here is what you do with putin. all of whom are based in europe. sees those assets. >> and they won't. too much trading goes on. stuart: they just succeeded. putin has one in ukraine. he is not going back. >> russia still has troops. the only way to get putin is to go after putin's money.

go after isis. stuart: using domestic violence imagery. we bring you her non-apology next. ♪ musical chairs. fun, right?

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stuart: three news items, a board jobs report, the president addressed ukraine and the president addressed isis. no impact on the stock market for either of those three items. looking at individual stocks, chrysler and down big. it was downgraded so 28 points

would be 2.5%. there was a debate in the california gubernatorial election and only one debate in that state, the republican candidate, varney regular criticized democrat governor jerry brown because tesla chose nevada over california for the new battery factory. not because of that comment but has let is down after hitting a series of record highs. then we have michael course, two big shareholder sell-offs, stock resigned from the board, each of an walking away with a couple hundred million dollars but michael course is down 4%. sales down 2% at the gap, down it goes 4.5%. big drop. i want to get to the outrageous comments from congresswoman debbie wasserman schulz. here is what she said about wisconsin governor scott walker. >> scott walker has given women the back of his hand. i know that is direct but that is reality.

republican tea party extremists like scott walker are grabbing us by the hair and pulling us back and it is unacceptable. stuart: backing off those comments a little, she has not apologized but released a statement to fox news. i shouldn't have used the words i used but that shouldn't detract from the broader point i was making that scott walker's policies have been bad for wisconsin women. walker's record speaks for itself. julie is still with us. toughing it out with "varney and company". let's not beat about the bush. i thought that was a disgusting and outrageous comment, she is the dnc share. how would you characterize her comments? >> i hate when people use nazi analogies, making a point about debbie wasserman schulz, that is my point. i don't know. stuart: outrageous. >> making my point for me. can i finish it? it is outrageous, why? there is domestic violence going on and shouldn't analogize it.

the same way and allies in nazi is into a bad policy when there are nazi isms' out there. stuart: i have not heard any democrat woman walk away from this list >> i am walking away from it. stuart: governor walker has a democratic opponent, she stood, has not said anything. >> what you are doing for debbie wasserman schulz is bringing so much attention to her comments is what democrats want. stuart: you think democrats want this? it is totally phony war on women. >> that i disagree with and polls disagree with you but i will say the more you talk about it the more people focus on the record on women more benefits democrats lose >> slimy politics. >> it is not slimy. stuart: to tell people they are domestic abusers like that, the back of the hand. >> i agree with you. i agree with you. >> i agree with julie in this respect. it is getting more attention on

scott walker's record. it doesn't hurt that wasserman schulz. he is the battering ram. you want to get in the door. the follow-up question is wasn't that bad comment? why did she say it? governor walker with his equal pay and minimum-wage some people say that is anti woman, brings a look at his record which he does not mind because people support and like what he did that brings up the independent of those undecided voters to go why would she say something that at warrant and ridiculous, let me see what she said, i don't care about bubba watson and schultz, i want to know why she said it. politically i think it worked for her because she doesn't care about her approval ratings. nobody approves of her. stuart: i don't think you should legitimize comments like that in american politics. >> you are legitimizing -- stuart: that is not legitimizing. >> you are legitimizing what democrats are attempting to do bringing his attention on his record. >> tea party and extremists are

the linkage words democrats want to get across. stuart: the other big headline of the day was the jobs report. i am calling that ugly. is that right? the middle-class worse off under president obama? we have all the angles covered for you? we will cover them all in a moment. whenwork with equity experts who work with regial experts who work with portfolio management experts that's when expertise happens. mfs. because there is no expertise without collaboration. [ inhales deeply ] [ sighs ] [ inhales ]

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stuart: 8:40 eastern time the big number was this one, 142,000 jobs created in august, not nearly enough. that is disappointing in the extreme. slowest job creation pace of the year thus far. john wayfield joins us. your not impressed by the jobs report. i am saying it was really really week. and you? >> yes. i agree with you completely. the true indicator of the economy. when manufacturing jobs lift the economy went into housing. when the bubble burst those jobs are nowhere and they are not being created and the government in its stalemate has hurt this and when you have low-interest rates you will see the jobs report like we just saw. the only income that increase was the upper 10% of the last three years. the other 90% all went down, stagnant wage growth, poverty, welfare and food stamps explode and the thing that has been killed as the middle class. stuart: i am saying is the failure of president obama's

policy. i have a democrat sitting next to me, hold on a second. i have to get a comment from julie. >> not just president obama. congress is dysfunctional. george bush as well. it is congress as opposed to george bush, another call legal branch of government whose job is to pass legislation to help the job market. stuart: the gallup daily tracking poll has the president's approval rating at just 38% approval, 54% disapproval. kind of prove your point. >> it sure does. larry summers who in his life was sprayed with human repellent himself wrote an article recently about president obama and second term presidents going back to fdr and the only person who accomplished anything significant was reagan with the tax reform in his second term. everybody jumped ship going to private enterprise, there are no grown-ups at home in the white house and what you are going to see is decline throughout the

rest of this term. stuart: here is the question for you. if the republicans sweep the senate, if they take control of the senate which is likely, not obvious but likely, will we see a stock market rally and will we see an economic expansion because of that take over? >> any change will help. i enjoyed your interview with mr. ford's earlier on your show and his point is significant. the republicans don't have a plan. this is the most anemic year of anything getting done in congress in congress's history and they have been terrible up to this year. i don't see a lot of hope out ublicans take over if anything if anything is better but nobody there has a plan. stuart: brian kilby, the seam of this program has been for a long time watch out for the headline news that you get and the spin that you get about the economy. look at how it feels on the grounds.

that is why we concentrate on the middle class which we think is shrinking. your take. >> even president obama brings into his speeches it doesn't feel great yeah, hillary clinton brings up the economy turned around but i know it doesn't feel that way because they understand the indicators in that direction. your economic women, i believe what happened over the last month has shown the midterm elections might be evicted or lost by how president obama looks on the world stage and so far the economy moves to 1 b, 1 nay is what the like of the world leader and has he dropped the ball and when he flips the three times in one speech about what will happen with isis, when david cameron look so much better than he does, when this is happening, when he pulls out of iraq and wins reelection on that and it turns out that was the worst thing that could have happened, mitt romney reposed better than he did, and forecast in june. stuart: real fast, climate

change. the united nations hosting a big climate change party later this month in new york. president obama is expected to attend. counterparts from china, india and germany have declined. other leaders likely to follow their lead, declining. this may be while wall street journal opinion piece out today says this. climate research establishment has finally admitted openly what skeptical scientists have been saying for nearly a decade, global warming has stopped since shortly before this century began. don't tell that to hillary clinton. listen to what she said and senator harry reid's national clean energy summit. >> this is the most consequential, urgent, sweeping collection of challenges we face. see levels are rising, icecaps are melting, storms, droughts and wildfires are wreaking havoc. stuart: i can see brian kilmeade is itching to get into this

debate. ago. >> not only do scientists debating this at this moment, there's a political appetite for what she's saying nick said please the audience she is addressing. this is not an issue. this should not be something the president is focused on. iffy in fact goes and does this that will be one of the strongest arguments you can make for a republican wave in november because there is a lot of red state democrats who will pay the price. stuart: i don't know why you are laughing. >> 99% of scientists agree this is a real issue and you got 1% on the fringe that all of a sudden get the same kind of respect 99% get. stuart: the guy we had from university on this show -- >> the guy in the journal -- stuart: the earth has not warmed in 19 -- >> we have had the hottest years on record the last couple decades. not this summer. stuart: not risen in -- >> wait a second. not this summer in this country.

not just about we are but global change. stuart: planet temperature, mean temperature has not risen -- >> i you a scientist? are you a scientist? stuart, you are not a scientist. >> he has a thermometer. stuart: for 19 years the planet has not warmed. >> i will give you statistics -- >> people at home are. i will say is this. germany, china, russia, industrialized nations are not flipping their economy to address global warming so we should not. why are we grinding our economy to a halt to address something nobody else is? we are losing competitiveness and germany said this has been a disaster. stuart: why is america has lowered its co2 emissions all the way back to 1990s levels?

because we are fracking for natural gas and replace oil and coal with natural gas. you guys on the left won't let us do that. >> fracking is a fairly new technology. the way we are fracking now, come con. because we have higher emission standards and all the measures we have taken to combat this and by the way good luck to you, not to you but your grandchildren one day when they deal with -- hurricanes and the and hurricane irene. not in this kind of pattern, not as often. stuart: when you are totally wrong. you are flat out wrong. >> i'm taking the word of 99% of scientists. stuart: precisely what you are not saying. there has always been hurricanes and the current hurricane pattern is softer, calm during chancellor than in the past.

>> i will find 99% of science consensus, tweet it out and you can stick to your fringe. >> i am so convinced we are not in the middle of climate change i am going to reject the upper speed on my windshield wipers. i refuse to use it. that is how convinced i am we are not in the middle of global weather change. stuart: that is the last word. >> the bravest thing i've ever heard. i am complimenting him. stuart: local we have got for you next. sony cellphones hours that conceal your information. that is our story. we have the man who discovered the phony towers and could do something about it. he is on the show nick stand dollars of 39 points.

nicole: nicole petallides with your fox business brief, dow jones industrial average of 40 points, with clock and a winning week making five straight weeks of gains. showing a gain for the movers, and a mixed man, goldman sachs to the downside. look at quicksilver. and retailer posted third

quarter losses, stock is plummeting. 30% and apple going to add more securities for their ipad uses to keep those hackers out. and they're beefing up how apple works altogether. it is a new device tries to get in on your apple devices so there you have it. right now we have gains across the board. let and startup ny mpanies will be investing hundreds of millions of dollars in jobs and infrastructure. thanks to startup ny, businesses can operate tax free for 10 years. no property tax. no business tax. and no sales tax. which means more growth for your business, and more jobs. it's not just business as usual. see how new york can help your business grow, at startup.ny.gov so what we're looking for is a way to "plus" our accounting firm's mobile plan. and "minus" our expenses. perfect timing. we're offering our best-ever pricing on mobile plans for business.

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stuart: talking about this all week long, we started this war, 19 fake cellphone carries capable of stealing information from your phone all detected throughout the country. still unclear who said the mob, still unclear anyone has their information stolen but they are there. for more on this, from psc america this is the company that makes the crypto phone, the high security smart phone that first detected these fake towers. all week long we have been trying to figure out who set up the stake towers and a lot of people are telling us maybe it was the department of defense. what say you? >> the towers themselves are virtually small units the size of the briefcase and are mobile. it is not a steel tower like we are all thinking cell towers that we see every day. these sell interceptors are mobile. they are utilized to get in

between a cellphone and illegitimate sell tower and intercept that information and bounce the sell signal back to the legitimate network tower. stuart: these things could be moving around the country from one location to another. that is quite possible, picking up an enormous amount of information if that is what planters wanted. >> that is exactly right. that is wet cell interceptor nominally is. they put them in vans or back seats and move around to gather information. stuart: do you think it was criminals doing this? or is it us, the department of defense of the united states of america looking at other people like us? who do you think it was? >> could be a combination of both. stuart: a foreign government could have done it too. >> that is extremely likely. stuart: when you have a smart phone and this phone of yours that avoids this problem, you

cannot be intercepted by a fake cellphone tower. that is your product that you put out, correct? >> that is correct. we have been building all for a secure cellphones for 11 years. our phone will immediately alert you if your signal has been diverted to and unauthorized power or such as cell interceptor. stuart: i am told these are $3,500 for each phone. if that is the case and you tell me whether it is or not, i take it people who are buying these funds are involved in the security business themselves. >> that is what the price of the phone is. people that discuss very high-value information and need to secure their cellular communications will purchase these phones. if you are discussing contracts worth billions of dollars whether traveling

internationally or talking locally if at high value some of these looking to intercept and sealed that information, and -- stuart: how many have you sold? can you tell me that? >> we currently produce 450 per week. stuart: sorry i am out of time, interesting situation. crypto phone, thanks for joining us. next up the nfl season kicked off last night, big money and big proof that the nfl is flat out king of the hill.

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stuart: fun and games, brian kilmeade still here. what do you think of the nfl game last night? score was 36-16, packers lost big time, they are my favorite team. >> sports illustrated predicted packers getting to the super bowl, peter king, an intriguing game but i never saw a team look more poised to win as when i saw seattle last year and they proved it again last night falling behind 7-3, going the 7 half in hand and a 16 ory, what you have with seattle is the defense higher profile than

their offense, 100 yards and a runner who won't talk to the press and a guy named russell wilson who is the derek jeter of football. he is calm, poised, and an overachiever. i said 20 things. stuart: of brokers of the best team in football. you got it from me. here is something i understand. tennis. you see that game last night that face tweet to match points. was it a match or a game? >> two match points, thank you very much. he won in five sets. can you edge and at the age of 33 playing five sets at that level of intensity and winning? >> he has been strong, 33, knows everything he does about nutrition, he continues to be there, now in the semifinals,

what he did, he was so unorthodox, his opponent gave him a hard time. two sets down, to match points and still ended up winning. at 33 he has something that were considered ancients don't have, endurance. he outlasted a 20-year-old opponent. stuart: it was fantastic. what a game. >> you are anti french because your british. stuart: that is not true. i am pro swiss. >> his dad was from where? stuart: from england. >> all about you. stuart: we are done. >> i guess so. stuart: more varney next. don't stick around. [ hoof beats ]

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cvs health. because health is everything. >> i am smart enough to understand there are no easy answers to any of this and when people say kill kill kill i remember george bush saying we want usama bin laden dead or alive. if the american people want to hear swagger they are not looking at reality. i would rather see actions and

words. stuart: it was a lively show today, was it not? here is dierdre bolton. dierdre: looking for jobs faster and better, we have roundtable discussion with two founders helping two different groups of workers on the august jobs data. an old system meeting the new one. the postal service working with amazon to deliver groceries that starting san francisco. privacy and security. apple's ceo tim cook addressing both concepts in an exclusive conversation with the wall street journal. on that subject tim cook and denies that apple had of lax attitude toward security but he did say the company will start alerting users on their phones and by e-mail when it appears someone is trying to change their i cloud passwords. with us now the journalists who ti