just announced. google has the next phone october 4th. very interesting. >> and i'll be a buyer at the apple iphone 10 a year from now. >> that'll do it for us. thanks for joining us. dagen, ryan, caitlyn. "varney & company" begins now. here is ashley. ashley: stuart is off today. a devastating hurricane that is paralyzed puerto rico in the clock ticking on health reform. nine days and counting for the senate to pass the bill at just 50 votes. we begin with president trump's approval rating with a three-point bump of a strong couple weeks. it began with his response to the storm's harvey and irma. his budget deal with senator schumer and leader pelosi clearing the dead. now the gop is working on the growth agenda. this week, his speech to the

united nations calling out north korea come the socialist venezuela, iran, many have hailed it is the best of his presidency so far. the president's approval rating now at 43% according to "wall street journal" poll, that three-point five was taken before the u.n. speech. the neutron presidency apparently is working. meanwhile, what's not working in puerto rico is the power. the entire island of three-point 2 million people out of power. hurricane maria tearing through over the past 24 hours or the governor calling a catastrophic and unprecedented. fema director brock on how long it will take to get puerto rico back up and running, how much it will cost in who pays. stuart may take a day off, but it certainly doesn't. big day and we are all over it. "varney & company" about to begin.

turn into half away from the market speed the features still sitting near record highs down a little bit. the dallas 10 points, s&p and not at flat at this hour. the new apple watch, much fanfare about it. cellular technic committee issues. the stock down 2% on the news yesterday. premarket essentially flat. that's the whole point. apparently it's not working properly. blue apron holding this up in albertson announced he had bought a rival milk it surveys goldplated. interesting. we would get into that more. blue apron of three-point 5%. president trump's job approval of three-point 243%. coming david hoppe the chief of staff to paul ryan. thank you for joining us. could it be headed even higher

because that particular poll was taken before his u.n. speech riches by some accounts the barnstormer. >> i think it can be headed higher. if you look at right now, very effective response to the two storms we've had in the third one coming in. once again, seeing it in shape to do a great job working with the local people, leading the local people make the key decisions because they know if they need first, both the state and local area. this has been a part of this. also, the effort to work together to make sure the funding goes ahead for these storms and also the government to keep the debt limit moving forward so there wasn't a crisis they are. those are all things people like. the key is when the president starts to work with the democratic dirty, he has to work from a position of strength. president ronald reagan negotiated from a position of strength and donald trump does the same thing because you can get some very good things done if you work from a position of

strength. ashley: so david, the new movement on health reform going to delay tax reform? there's a concern all this effort to get the graham-cassidy bill through both the tax reform our tax cut, whatever form it comes in on the back burner. >> i don't think it will delay tax reform. there is going to be a week next week because it's the last week to act with a reconciliation protection. but i will not slow down what they want to do, which is to get tax reform done by the end of this calendar year. if you had two or three or four weeks of health health care going on, that would slow it down because one week will not seriously affect that although they do have to get moving quickly on tax reform to get it done by the end of the year. ashley: they do indeed. you are the former chief of staff by paul ryan. i would've loved to have been a fly on the wall. in the case when we hear president trump advice to democrats from a mr., mr. pelosi

to the white house, what's going on in the mind of paul ryan when he got bad news because the president was frustrated you couldn't get the gop leadership on board of his agenda. how do you think in private paul ryan reacted to that? >> i think paul is a person of policy and he wants to get these policies put into the city can start changing the health care system so it works for families, families and doctors so they are the ones who can make these decisions. the other thing you want to get in is very important to him as tax reform by the end of the year. lowering rates for those in the middle class, probably doing something to lower the corporate rate and mostly for family businesses. that's a key between now and the end of the year. what can they do for those pastors which are really family businesses and help mostly families or small groups of people. those are the pastors and small businesses we talked about creating jobs in america. that is the key because the democrats are not looking to

help those people and republicans are focused on those people. that's a very important issue as we go through tax reform. train to david hoppe, thank you for joining us. we appreciate it. a new survey of 1000 u.s. companies says pay raise is not expected to improve next year. brian brenberg from a business professor at king's college here in new york city. could you argue this is why we need tax reform so people can actually keep more money they do more in. >> that's exactly right. we've had a slow growth economy. companies don't have it compete for workers. when you talk about tax reform, it's not an ideological thing. it's money in people's pockets and we see the values is an arriving fast enough to get the economy going. ashley: let's get to the bigger issues of the day. health care front and center. tax reformers got to get the budget sorted out first.

does all of this get done? if it wasn't for the last minute, nothing would get done. >> deadlines are so important. the momentum, can you believe we talk about potentially getting health care reform done by next week. ashley: 50 votes by golly. liz: fiscal year ends september 30th. if you do it in the budget reconciliation, after that it could be 60 votes. that's to your point. >> effect we're this close is nothing short of a miracle given how bad this summer has gone. it's worth trying to get this thing done. you can still get a tax reform done by the end of the year. >> what kind of tax reform? every passing day we say is that going to be watered down just to get it through. how disappointing would it be to you brian brenberg as it is watered down considerably. >> if we get really strong corporate tax cuts, that's going to be a wing.

>> it sounds to me the focus will be business taxes. that's good for boosting growth and becomes good for everybody. if i'm okay with that from the top vendor nurse -- you may be a little bit disappointed. businesses will be happiest and that is good long-term for the economy. >> anything is better than nothing. thank you very much. the s&p's corporate filing system was hacked last year and those hackers trading on the information they stole actually remarkable story. liz: there's more. this was the s&p thing. a 4000 word statement did didn't they who were wiped or really how. or exactly when. here's what they have. they are saying the division of enforcement is pursuing cases against individuals who put up safe filings on the edgar

system, in order to profit from it with the list of trading gains. ashley: they file these documents. the edgar is the only data in the research. would you demand about? ashley: information about a lot of companies. liz: a couple years ago, a high-frequency traders and hedge funds had early access. edgar is all publicly traded. the sec a same that happened last year and they thought it odd if someone could be illicitly profiting from it.

-- it took us so long to get the recognition or at knowledge meant that there might be some trading paired of course, what do you think anyone was ever hacking the sec for? based on data no one else has. why are you talking about this a year later? ashley: everyday it seems like we're talking about whoever has been hacked taking a long time to recognize it. liz: investors could get hurt here. someone could be making money off of it, moving the market. ashley: new developments in the equifax hat. hackers roamed the network undetected for months before the attack was uncovered. the hits just keep on coming as we say everyday. house minority leader nancy

pelosi thinking the parents of dreamers for breaking the law by bringing their kids into the country. you will hear it next hour. hurricane maria devastating puerto rico. the entire island without power. the government says they could be as long as six months before all the lights come back on. a live report from san juan next.

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usaa members for life. usaa, get your insurance quote today. ashley: not a puerto rico without power and that could be the case for quite some time. hurricane maria has passed through, but there is a flash flood warning. steve harrigan dared to bring us the latest. >> the loss of power certainly the biggest obstacle you're across the aisle in more than 3.5 million people 100% without power we see here real real do-it-yourself effort overseen across the island. these people are not trying to get electric power back. i could be weeks or months away. they're basically trying to prop

up and down power lines so cars can come across. a downed power lines, flooding and with the downed trees. a lot of people's homes are damaged, the roofs are gone. black water inside. people are saying they are not getting any help yet. they are being very patient right now. we don't know how bad the storm is yet. many areas in the southeast do without communication completely cut off. ashley back to you. ashley: thank you very much. those pictures tell it out. we really don't know the full extent of the damage because he can't get out to the outlying areas around puerto rico. it could be up to six months before full power is restored in puerto rico. let's stay on the extreme weather and bring in the author of the skeptical environmentalist. we've just seen what hurricane maria did to puerto rico and already with harvey before that and, after that because the

people, the climate changes, does that say this is all because the earth is heating up in the news turns are bigger and more frequent. and you would pay >> that's just not what the science is telling us. no official statement tells us book, we expect in the long run hurricanes will get slightly stronger, probably also slightly fewer, but we can't detect that right now. there's a huge difference between what all the pundits say . the problem is you need to do the data appeared but was deemed as landfall in hurricanes 140 years in the u.s. have dropped open all hurricane levels. in reality if you look at how many people died, you seen a tenfold decrease very much because we've gotten better and if you look at damage caused, but in our minds the fact that people have moved closer to where hurricanes hit. they've also not rest at least

not right now. no evidence for those. there probably will be a tiny impact. but remember, we estimate much return, much better. the total impact is going to be less, not more. ashley: did you see the latest study out of the u.k. including professors from oxford university thing we've been using the wrong models. the renewable energies have an impact and they are using inaccurate. it's not as bad as they thought. >> we have to be a little careful shot but the studies coming out there's just one study. there is the sense in which we have probably seen models overestimating rather than underestimating. but the reality is it is not so much about how much will the warming will he die. the models are reasonably correct. the problem is we are right now spending a huge amount of money

to do almost no good for climate. that's a way to help the world. ashley: the fact the united states as we are out of the paris accord making no impact at all, which is fascinating. >> the paris accord will have very little impact. the truth of this is paris by the un's own admission, everything they promised including all of obama, if we did that. we would reach 1% of what it would take to get us to two degrees by the un's own admissions. so we are 99% out and that is why this fundamental disconnect. we are talking the paris agreement in $2 trillion a year and i'll do almost no good. that's a bad way to spend money. it not that it's not a problem. the gateway to fix this, which

is innovation. we have fixed most of the problems innovation. if we can get a cheap comments cheaper than fossil fuels. everyone can switch. if we can't, we'll have to keep subsidizing that we can afford it. ashley: we will leave it right there. thank you so much for being here. appreciate it. north korean diplomat racking up a huge unpaid parking ticket that in new york city new york city. guess how much they owe? they owe the city more than $150,000. they go back decades. you think you'll see any of that money? no, nowhere ever. check this out. chick-fil-a with plans for a new restaurant in manhattan. it would be the chance biggest restaurant yet complete with rooftop seating and a view of the freedom tower. five stories. that's a lot of chicken. boerner "varney" after this.

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not only are not only either not paying tickets, they are getting parking spaces that other new yorkers cannot get in not paying the tickets. this is at a time when new york city residents are facing higher taxes. guess what, syria, iran, russia and china combined parking ticket fines to new york city but have not been good. ashley: why can't we just club the vehicles? it happens to uni. >> the north korean general on the bike. no parking tickets. ashley: let's move on to chick-fil-a. i love this story. they are now building the largest chick-fil-a. liz: half a mile from the freedom tower at the site of 9/11. worth top access, five stories, 12,000 square feet.

astonishing parallel views of the freedom tower. so as you pointed out, chick-fil-a going all-out with the biggest ever. >> no coincidence they are building this in the financial district. our good friend, brian brenberg was not neighborhood. >> click, my goal is to be chicken on every level and they think we should record that if i can do that. liz: do that call for boycott on not? >> you went for miles. it's always a hard place to get in here in new york city. they look chick-fil-a. >> they can take a lesson on the customer service. ashley: guess what, the market will open in 4.5 minutes from now. looks like we will start slightly lower. how many days in a row? whatever it is, we continue to

grow higher although showing just a slightly weaker opening of the dow up 14 points. we will be back with the opening of the markets right after this.

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ashley: the opening bell ringing and just about 20 seconds from now despite all the headlines and everything going on in d.c.

and around the world. the markets continued to move higher. we heard from her rate hike yesterday in december. also, the unwinding of the fed cared how is that going to affect the markets? this continues to break records. check the big board for you. we will start slightly lower this morning. gathering in figuring it all out for the day. down eight, nine points on the dow. a quick look at the s&p 500. you can see there the dow is still 23,400 did the s&p moving slit a lower in the nasdaq also slightly lower although maybe not as much as we thought. the s&p down a 10th of a percent. 2505 and announced down about 6446. a long way to go but the markets have been on a tear. let's get to some of the stories

we're following. blue apron holding the run-up with the rival neil k. service called pleaded. interesting story. the new apple watch, much fanfare about it has sailer comment committee. apparently having issues with sailor conductivity. i'll go with that. either way whether there was a big selling feature just a little down half a percent. amazon reportedly in talks with pharmacy benefit managers which could lead to enter the pharmacy delivery business. why not come into everything else. we'll discuss that more in just a minute. our very own liz macdonald, brian brenberg and scott martin. still the all-time highs. it's remarkable i guess in this low interest rate environment, the only place to get equities in which the money regardless of what's going on here and around

the world go into equities. what will stop the markets from going higher? >> higher interest rates. you are right. even yesterday, talking about three more interest rate hikes and the next 12 months. big deal. and the reality of looking at the markets as investors come you go where there is healed. you go where there is appreciation. don't forget, too, with all the rumblings of maybe a deal in d.c. by the end of the year with respect to tax reform for a tax cut, that's another reason to love the s&p. >> theinancial is now eclipsed in the prior mark a run for the s&p is now the s&p right now. >> that is truly remarkable. we saw other companies in all-time highs. the boeing, caterpillar and

mainstays. a lot of money goes into tech, but money to be made elsewhere as well. >> the economy is firing pretty well when it comes to corporate profits and earnings for these guys. we still had problems when it comes to individuals was interesting to look at diminishing raises. what does that say about corporate profits? companies feel like they are squeezed a little bit. >> i need to correct myself. best-performing s&p. the percentage run-up in the stock. so that's the plan. thank you for that. new survey from global professional services company is the pay raises not to improve next year. i guess this is why andy mentioned this before. we need more money in our pockets so they can spend it and frankly do whatever we want with

it. >> yeah. listen, capital in businesses and small businesses. the more businesses have cash on hand, the less taxes they are paying, the more they can invest in research and development driving down the economy for years and wage growth ultimately. this is when we talk about the economic outlook in the pressure that companies may be facing in 2018, which also deals with comparables this year when you go into 18 of the little concerning to say they are comparable to this time next year. the reality is that this, with regulatory reform, and i will make companies in u.s. home in 28 team. ashley: music to my ears. it could lead to getting into the pharmacy delivery business. what is the business professors say about this?

>> delicate places in the world where people have to stand in line and go get something. we can do something about that. we'll bring it to you. and you see them doing this in industry after industry. this could save people money. you get your subscriptions faster. if i'm going to read, i certainly get nervous about it. >> the people get really nervous or the middleman and they negotiate with medicare and medicaid. amazon aiming for the $300 billion business with prescriptions overall. train it in japan already and they sell medical on this site already. jeff bezos has been looking at this for some time. he could be stepping in and wiping out another market. those are the middleman guys. >> amazon has the unfettered power to do this. let's go to the president of

afghanistan. ashraf ghani. let's see what he has to say. >> good morning. a pleasure to have president said very of afghanistan with us. we are working very well together, working very hard. our military as you know it's over there right now doing really an incredible job. leadership in fighting, bleeding a lot of wonderful afghan troops who are fighting very hard. we were just discussing that. great progress is being made. so it's an honor to have you in all of your representatives with us. thank you very much. >> i would like to pay tribute to soldiers, officers and civilians, particularly those.

that sacrifice can now result. i thank you on behalf of the government for making a decision that is historic. u.s. very fundamental questions. you made this decision on the courage and determination. we salute you. since this issue, there's been an immense change on the ground. i've been too sick so my seven army cores in the american soldiers and officers who fought shoulder to shoulder with it. it's a difference a day and night. the cloud of uncertainty has been lifted, but equally important is your commitment to a political solution at the end of this process. we want to assure that there is

not going to be a combat. you've made that crystal clear and we are committed to make sure the afghan people, the afghan soldiers and not the series take the burden of responsibility. the modest additional folks that have been sent are to enhance the support advice mission and that is a fake referral. victory, political and military is within our site and make thank you for the thoroughness of the review and especially that all instruments of american power, military, diplomatic and economic are brought together in a coherent plan of action to lift afghanistan out of four

years of crisis and to make it a platform for stability and prosperity. and because of this, we equally, mr. president, understand and fully endorse. we do not ask for a blank check. we are determined to do what is ours. five production, ensure that there is no waste of resources. accountability for the results in significant momentum so the american people can know that a very wise leadership will now be achieved. thank you, mr. president. >> thank you, mr. president also. we are training and we are working with them very closely, but i've also heard not only this morning, but over the last

few weeks that it is tremendous over there tremendous over their fear afghan forces and of the american forces. rules of engagement are now different than they were and we are able to do the job. and i will say that the spirit i'm hearing, everybody is really like a different place, but the spirit is tremendous. people realize you had 20 terrorist groups in afghanistan. this is where the world trade center people, i'll call them people, were trained. this is what happened. your 20 groups, more than any place else. it is really a hornets nest from that standpoint. we are hitting them very, very hard and very, very effectively and we really have no choice but to do it. so i'm honored to have you been

in very, very happy with what i've heard and the reports from our generals and their people and i think we are going to be very successful. therefore a number of reasons, but one of the reasons is to stop these terrorist organizations, which for whatever reasons seem to accumulate in afghanistan more than any place else. so we are doing our job. we are doing it very ugly. tremendous leader cora and we will see what happens. i think it's going to be good. thank you all very much. >> talking about his meeting with the afghan president there. afghanistan is themselves fighting hard on the ground, making great progress he says. but the afghan pointed saying he wanted to thank the u.s. soldiers than those in the civilian world who work so hard

to bring peace and stability to afghanistan and he thanked them for their sacrifice. there's been immense change on the ground and he went on to say the cloud of uncertainty has been lifted. he says victory is within sight both politically and militarily. an encouraging word to the afghan president and president trump at a again today meeting with the leaders of ukraine, turkey, south korea and japan as well throughout the day. we'll bring you the latest on that. want to thank brian and scott for being here. sorry it was abbreviated been interrupted by the president. we will be right back. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

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ashley: i want to get back to the devastation in puerto rico. the whole island is without power. let's bring in fema administrator brock lawn. thank you so much for joining us. how long will the island be without power in some places may be up to six months.

>> the power grid in puerto rico is a fragile system to begin with and i think the governor has been very open about that and going into this storm, we have been trying to set expectations the power could be off for multiple months. the goal of coming in today is going to be establishing pathways to get generators and to establish emergency power to critical facilities such as hospitals. the longer-term power rebuild is going to take quite some time. ashley: i want to change gears. what are you doing about the housing shortage we hear so much about in houston. many people when they get back to their homes are just not habitable. how do you handle that? >> one of the most impressive statistics that should be put out there for a transitional shelter, we've been able to move over 23,000 families into hotels and motels in and around the area to provide them temporary shelter. we understand that it's not the

best situation, but at least we're able to provide people with a roof over their head as he worked with governor abbott and his team very closely to make sure we have a very sound plan going forward as to how we will help people prepare the homes that can be repaired or even considering manufacturing housing unit down the road until they can find other options to rebuild. ashley: none of this, brock, it's very cheap. can we afford another storm? it's been a really tough year. >> that's a great question. the congressman passed the supplemental like roughly 7.4 billion. on october 1 the continuing resolution would reload the disaster relief fund with over 6 billion, a little over 6 billion more and it's my anders indian, too, there is a congressional delegation in the field of texas yesterday working with governor abbott and others to understand the situation to

what is needed for texas. the congressional delegations are active in florida as well and obviously we have order rico. we have great communication with congress and they are trying to assess the magnitude of what just happened over the last month and will continue to work through it. ashley: very quickly, brock, you've obviously been doing everything to all people in the wake of these transformations, but how hard and were you to see the army of volunteers in houston they came out using their own phones, went to the areas needed and were rescuing people. how heartening is that for you for someone in fema aid deals with emergency situations. >> you know what, fema can't do it alone. it was an amazing thing to see an america united around first texas and now florida. we will need the whole community and the neighbor helping neighbor process in puerto rico

and the virgin islands. puerto rico took a devastating hit last night and we are still trying to uncover the impact this morning and hopefully getting into to the life-saving mission. that's what it's all about. people taking care of people, making sure they treat others the way they want to be treated. ashley: brock lawn, fema administrator, and they've been so busy. thank you for taking the time. >> thank y. ashley: the mexicoarthquake. the search continues. liz: this is where 21 children in five adults have heard he died. current on the scene say they cannot imagine the pain of the heartbreak going through now. rescuers are working with thermal heat scanners. they have rescue -- they see flashlights inside the rubble, meaning that there could be children or adults still in there that they could ratio. if such a delicate situation

because cutting through metallic rods and the rubble bear at risk of hurting the people they are trying to rescue. ashley: in moving the rubble again is very difficult. the urban search and rescue team have now arrived in mexico city and will be working on this. >> a least 240 now dead. thank you very much. >> is that trump getting high marks for working across the aisle in making deals with democrats no less. the latest numbers for "the wall street journal" coming out. what did we do before phones?

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ashley: all right, let's focus on retail. amicably, president of daily look. what is that? a subscription e-commerce company that focuses on fashion issues here to tell us all about it. thank you for being here. let me just go over the basics. you have a subscription service for women. your target one minutes what? 25 to 40 from income of around 100,000 russian i.q. have a very specific target. you want to be their personal

fashion advisor enter the subscription, you send them items of clothing, fashion items, seven to 12 which they can either love and keep either love innkeepers send back what they don't like. is that about it? >> that's exactly it. ashley: how successful have you been? >> we've been really successful. the growth is really amazing month after month and doing what we do is make it easy to style yourself an elevator style. women don't have time anymore to do it themselves. ashley: what about the experience of going into a high-fashion door and tried it on. women don't want to do that anymore? >> we live in this age of convenience. you can do this in the comfort of your own home on your own timeline and that's what were able to provide for a client. ashley: how much is a subscription? >> forty dollars as a styling fee. ashley: per month. >> you choose whether it's bimonthly or every quarter. you can use that towards your purchase when you decide to keep any items.

ashley: you assign a stylist for every subscriber, is that right? how do they figure out what works? >> really it's a relationship built over time. initially there is an extensive style profile of the fell out when you sign-up that gives us basic information about style preferences in the amount of money you want to spend. over time your stylistic value, just like an in-store format. of course you don't have the pressure of the insulin they get to know you over time and see your style evolved and what your preferences are in style and gets better over time. ashley: how long have you been in operations? >> it's been around for most three years. ashley: how many subscribers? >> 14,000. to make money elsewhere? do you get money from the retailers who create the clothing? the mac we do all of our body

and specifically for our clientele. we are really retail company. ashley: are you thinking of expanding? this is in each space then you are doing very well. >> we have great expansion plans in the next few years. ashley: fantastic. congratulations. daily look.com. >> daily look.com is where you sign-up. ashley: very interesting. appreciate it. the fashion stylist of your own. i could use one. $1.5 trillion in the budget for tax cuts. here's the question. where does that money go? we will ask that tax filing committee to answer that question. next. it's a problem that we can turn around and change. revolution foods is a company we started to provide

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ashley: it is 10 a.m. on the east coast. 7:00 a.m. on the west coast. we are following developments out of puerto rico this morning which woke up completely without power. the entire eye lan devastated.

hurricane maria headed north towards the dominican republic, reloaded again to category 3. the fema director just told us last hour the power in puerto rico could be out for months. goodgood morning, everyone. i'm ashley webster in for stuart. president trump's approval rating jumping three points. while that historically low now trending up. that was taken before the speech to the u.n. he essentially cleared the decks for the growth agenda and health reform and tax cuts both in sight. new this hour we have examples of grunt he willed high-profile democrats. president obama voicing aggravation over the gop plan to replace his signature health care law. nancy pelosi said we should thing illegal immigrants that brought "dreamers" here even though they broke the law.

it doesn't seem to matter. we cover it all on "varney & company." hour two starts right now. ♪ but we begin with the very latest on mortgage rates, emac with the number. liz: up slightly from last week 3.8%. they had been trending to the downside bee for march. ashley: right. liz: existing home sales hit a one-year low. median prices up, hurricane harvey, mortgage rates coming down. maybe this will attract more buyers into the market. ashley: still amazingly low. thank you, emac. liz: sure. ashley: big board, sleepy start to the session. you can't break a record every session although feels like it. the dow it 2,383. we'll look at big tech stocks. all in the red. facebook, microsoft alphabet,

google, apple. all down. apple bringing out a new watch. talk about the cell connectivity , suppose to be a wonderful thing. turns out reliability is not that good. oil just above $50 a barrel, down 8 cents at this hour. next week we will, we believe, get details on the gop tax reform plan. thought it was going to be monday. but now we hear it is going to be wednesday. we are joined by a member of the tax writing committee, congressman eric paulsen, republican from minnesota. congressman, thank you for joining us. so how -- >> good to be with you, ashley. ashley: how much detail will we get next week? >> more details roll out next week, late next week. as well as october will be a real busy month. the ways and means committee will spend a long time behind close doors, filling out details and rolling this out in the coming weeks ahead.

focusing on growth agenda critical to our country and our economy right now, congressman, the senate gop cleared $1.5 trillion in the budget tax cuts. my question, where does that money go? let's be frank about this, the middle class always seems to get the shaft. will the middle class get a break this time? >> absolutely. in the house we're working on revenue neutral plans. we're looking at middle class tax cuts. consolidation of rates across the board help small business, the engine of our economy, grow new jobs, as well as having middle class tax cut that is so important making sure the next generation will be thriving, which is at risk right now. ashley: corporate tax cuts, you know, look, the president once again just this week i believe reaffirmed desire for 15%. there is a lot of growing pessimism, 15% is not doable, perhaps 20, even higher than 20%. where do you stand on that? >> in the house blueprint we're working on 20% rate.

it will be right in that range, low 20s. we know it is important to unlock the earnings trapped overseas with international tax reform. so we get the $2 trillion back home to the united states. that is about keeping our headquarters here, keeping innovation here, keeping jobs here. that will tie together so we can fix a broken tax code to modernize it, to compete with companies and countries around the world. ashley: the moment you say anything, put out any details, congressman, democrats shout at you, you're giving a tax cut to the rich. how would you respond to that? >> i would say this, all hearings we've had in the ways and means committee have gone well on the bipartisan basis. there is a little bit of a political flavor to it. no one is defending status quo. simplifying code, making it permanent, getting earnings back home to the united states is something universally we support. we may disagree on some details but i feel better we're moving right direction optimistically to help our economy. ashley: i they we all are,

congressman. eric paulsen, republican from minnesota. thankthank you for your time to. >> good to be with you. ashley: back to the markets, stocks at record highs. let's bring in jack hough, "barron's" senior editor. i ask you this question, michael bloomberg, he says for the life of me i can't understand how the markets keep going higher. how would you respond to mr. bloomberg? >> there are not a lot of better alternatives out there. i will tell you something i noticed in the numbers. last quarter we had overwhelming number of companies beat expectations. don't get excited. they set the bar very low. what we didn't have shares trading higher after upside surprises. almost like buyers fatigue. investors are not chasing companies higher after what is supposed to be good news. makes me wonder, we're 20 times trailing earnings. ashley: high, but not exorbitant.

>> i will not call a top to this market. certainly don't get anything of a brutal downturn until you get recession. i don't see recession anywhere on the horizon. ashley: i want to get quickly to tax reform. they're telling me to get to tesla. i want to get to tax reform. if we get something, albeit watered down, is that very positive for the market and how high can we go? >> some people say it is priced into the market but i don't think so. they traded higher after election day. they gave up gains and more. i don't think the market expecting something on taxes. if you get it shares could trade higher. ashley: now let's get to tesla. analyst very bullish, went up to all-time high, went up to 385. jeffries analyst said not so good, this company has a lot of issues. what is your take on tesla? >> there are no profits in the years on the horizon.

electric cars are the future. we'll look back say tesla made it happen sooner. anyone who buys tesla's stock here, i don't think it will work out. ashley: elon musk the greatest entrepreneur of our generation or part p.t. barnum or part dreamer? >> look both. he is a total genius. i won't deny that. he can be a genius and his stock overpriced at same time. ashley: you're probably right. deloitte says retail sales could go up 4 1/2% year-over-year. all about the economy getting better? >> think how shocking this is. our biggest pure play tore seller just went bust. the environment is pretty good. coming up on christmas. sales will be up. ashley: is that more of a case of online convenience or rather than -- >> it is. tells how awful for some retailers. when things are good, imagine what looks like in the space for

investors when we hit the next economic downturn. ashley: what can brick-and-mortar stores do? if they haven't done anything now is it too late. >> first and last question, as investors how does this company not get killed by amazon? amazon will not ship 12-foot pressure treated lumber. home depot will continue to make money. ashley: i hope not. that could be awkward. >> if you have private label brand that amazon doesn't sell. apple, ask retail. amazon will not. the stores are experience. you have to find businesses like that that are amazon-proof. ashley: not many out there i have a feeling. jack how much, "barron's," great stuff as always. now hurricane maria headed toward the dominican republic. fox meteorologist janice dean joins us with, oh, boy, where does maria go from here and are we on the east coast at all in

its sights? >> that's a good question. so far the computer models are showing a path between bermuda and the u.s. coastline. we hope that will happen. i have to tell you five days out there is a lot of uncertainty so we have to watch this i will tell you it is a strengthening storm right now. it made landfall over puerto rico as one of the strongest hurricanes they ever experienced, some cases over two feet of rainfall, wint gusts 235 miles-an-hour. when you have over 3 million people without power that is significant. there is the storm right now. it did weaken once it was over land. we're starting to see hurricane-force winds along the dominican republic. the eye is starting to strengthen a little bit. look at the size of this eye. that is 30 to 40 miles wide so a very big storm. we're expecting it to strengthen over time in the next 12 to 24 hours. then, ashley, as we get later into the weekend, we think moving between bermuda an

cape hatteras. a little bit of uncertainty here. but i like the trend. i like the trend, we call it a gutter ball, moving between bermuda and the outer banks and not affecting anyone else. that would be the best-case scenario. back to you. ashley: very quickly, janice, anything behind that? are we getting a break from the conveyor belt. >> listen, hurricane season goes to november 30th. hurricane sandy struck at end of october. so anything is possible. ashley: hardest working meteorologist. janice dean. thank you. >> thank you. ashley: check this out. president trump could get a new ride, a prototype of a new presidential limo being tested on public roads. as you can see it is covered in camouflage. is this real? he uses same fleet of vehicles we used by the obama administration. no misidentifying that. days after being heckled by dreamers, nancy pelosi again weighing in on the daca debate. you won't believe what she is

saying about illegal immigrants who brought them here. we're all over this one. is time already running out for congress to enact tax cuts? bob dole will be here later this hour to tell us why the window is rapidly closing for congress to seal the deal. ♪ copd makes it hard to breathe.

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ashley: l we're about 45 minutes into the session. let's take a look at the big board for you. dow is down 30 points. although i think 19 of that is apple. apple stock price is down. i talked about this with steve hilton. we'll get to steve in a minute. people are reporting cellular

connectivity issues with the new apple watch. that was a big selling point. that is not good, isn't it. amazon talking with farm any benefit managers. this could eventually lead amazon get into the pharmacy delivery business. why not? they're into everything else. now this, the ftc corporate filing system was hacked last year and hackers traded on the information they stole. you can't make this up, emac. liz: yeah. they apparently discovered the trading issue off list of gains in august. so this was known last year. now august. here is the statement from the chairman of the sec. he said the risks are significant. in many cases systemic. the sec enforcement division by the way it is saying ha cases where people allegedly put, fake, false profits reports on the sec site and probably traded off of them. that means, fake market moving information that could have hurt investors. ashley: ouch. liz: we'll stay on this story. ashley: hard to unravel all of that.

but a big story. liz: yeah. ashley: thank you very much. get back to politics. why not? look at president trump's job approval rating. right now 43%, historically low, but that is a 4% jump from last month. come in aforementioned steve hilton, former strategy director for david cameron. thank you so much for being here, steve, for your inside on this, because it is interesting. that number was taken, or that poll was taken i should say before the u.n. speech, which i thought was incredibly strong, bold, really laid it out there. that number, that approval rating could go higher. >> i think it will. what is being reflected here the positive response to the way the president trump has handled the hurricanes and moving forward his domestic agenda. what you're really seeing is him acting and delivering what he stayed in his campaign washington is totally broken, no one can get anything done. i will to there as on outside, shake things up to get things done. that seems to be working. even though you have a lot of flak hanging out with chuck and

nancy, people like it, at least something is getting done. i think that is what you're seeing in the poll numbers. ashley: david cameron, you know him so well a politician, seasoned politician like david cameron ever give a speech like that? >> no. that's why i love the speech. it was all different. see all the diplomatic language basically is designed, i know this, i used to do it, the language is designed to cover things up. designed to be all things to all people. ashley: patch over. >> take it to the ambassador, we got your point and take the other paragraph, just such a lie. finally someone who is saying the truth and telling it clearly. there is no mistaking what he meant. the establishment is all up in arms, because he is shaking the way they do business or not do business because nothing gets done. ashley: the minute we took our breath back, the united states's allies are forced to defend

ourself. ashley: we'll destroy you. no ifs, ands or byes. what we got, hillary clinton called dark and dangerous. a grave error with regard to iran says emannuel macron of france and u.s. will meet final ruin, president trump is a mad barking dog from north korea. the fact we're getting this from seasoned politicians proves he did something right. >> there is interesting comparison here. let's take macron. this is reckless and we have to stick with the iran deal. in other areas we're told all the time, take climate change by people like him and the left, you have to think long term. you can't take a short term approach. what they are doing, let's take macron, what he is doing is incredibly short term. if even they comply with it, do all the things they are supposed to do, they get nuclear weapon in 10 years. macron will be gone by then. it will be somebody's else's

problem. it is president trump saying we can't get them a nuclear weapon ever, not just lifetime of this deal. that is different from all the other people are saying but it is truth. ashley: get to domestic policy, god forbid he called in chuck and nancy to come over to the white house to chat. it was shot across the bow to the gop leadership. give h a slap to t back side. if y don'tlay wit me, ll find oer people who can. clr the decks. inesponse we had a health care bill come out. talking about tax reform. smart strategy. >> exactly right. it put them on notice, if they don't get anything done, it is not going to be president trump suffers political consequences, it is going to be the mainstream establishment republicans. i think they really understand they have got to show something for the complete control they have over the process in washington. ashley: i feel like he is getting into his stride. response to the hurricanes has been tremendous. i think his outreach to

democrats has been good because it reset the balance so to speak. i think his speech at u.n. was strongest yet. he is on a bit of a role, would you think -- roll. >> we said, we had the conversation, number one things he has to get done is the economic boost. he has done good things on deregulation. that is having effect. but really big boost we need through tax reform. ashley: right. >> and infrastructure is what we really need to look out for. that needs to get done by end of the year. ashley: we don't have it yet. keep our fingers crossed. steve hilton. great stuff. you are here at noon on "outnumbered." stu likes to call it ambushed. either way -- >> don't forget my show on fox news channel. ashley: how is that going? >> great. nine eastern. "the next revolution." ashley: you do that out of l.a., right? >> yes. ashley: very nice. steve hilton, thank you very much. equifax leaving your information exposed to hackers for months as a new report says they were able to infiltrate the

company's system long before anyone, anyone realized what was happening. how could that happen to equifax? we'll have that have this. is this a phone?

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ashley: president trump meeting with the president of ukraine right now. let's listen in. >> -- effective cooperation between our nation. >> that's right. that is a story pretty untold but i think you will see it more and more but companies are going very strongly into the ukraine. they see tremendous potential there so take good care of them, okay? take good care of them. i did want to report with the hurricanes, we spoke with greg abbott, governor of texas and i will tell you texas is doing really, really well. those people are working hard

and effectively and you have a great governor and texas is really coming out of that horrible hurricane harvey really, really well. florida, very similar. great governor, rick scott. spoke with him. florida was, i mean they were hit hard, they were hit hard but they're doing very, very well. ahead of schedule. the power is back on almost, for the most part, outside of the keys where you have a devastation problem, but even there we're working very hard. but florida is doing really well. texas, florida, we give it an a-plus. puerto rico was absolutely obliterated. puerto rico got hit with wind they say, they have negative seen wind like this anywhere. got hit as a 5, category 5

storm, which literally never happens. so puerto rico is in very, very tough shape. their electrical grid is destroyed. it wasn't in good shape it start off with, but their electric call grid is totally destroyed. some other things. we're starting process now. we'll work with the governor and people of puerto rico, as a whole, different category many ways, in many ways. all you have to do is reed or turn on the television and you will see a place that was practically leveled. it is incredible the power of that wind. that was a very unique, not, for many decades has a storm hit a piece of land like that. so puerto rico will start the process with tom is with us in the other room.

we'll start it with great gusto. it is very, very perillous shape, very sad what happened in puerto rico. virgin islands, i don't have to say, just take a look at a picture. they are, they are flattened. areas around there have been flattened, so these were storms they haven't seen in many years. very sad actually to see it but we will start the process. as we have proven, we have incredible teams. fema has been beyond, who would have thought after texas, they go to florida, then they go to puerto rico and go to other places too. louisiana took a little bit of a hit and they recovered really well. they have done a fantastic job in louisiana. alabama took a hit, but they recovered. alabama has been fantastic. so many people went to alabama during the storm, during the florida storm. and likewise georgia. so many places were so

incredible the way they have handled it. so, we are going to start the process now with puerto rico. we'll have further updates on it. but it was one of the most serious storms anyone has ever seen. thank you all very much. [shouting questions] >> will you visit puerto rico? >> yes, i will. ashley: there you have it, president trump. listen to the questions. >> defense sector, definitely we very much satisfied with that. [shouting questions] >> thank you. >> thank you very much. ashley: so there you have it. didn't get to the questions. interesting president trump meeting with the president of ukraine, petro poroshenko. the president taking opportunity to talk hurricane update. efforts in texas, going remark remarkliably well. saying electrical grid in

puerto rico completely destroyed. he praised fema for the efforts both in texas and florida, on to puerto rico. he said himself, the president would visit puerto rico some point in the future. we'll have more "varney" after this. [phone ring] hello. hi, it's anne from edward jones. i'm glad i caught you. well i'm just leaving the office so for once i've got plenty of time. what's going on? so those financial regulations being talked about? they could affect your accounts, so let's get together and talk, and make sure everything's clear. thanks. yeah. that would be great. we've grown to over $900 billion in assets under care... by being proactive, not reactive. it's how edward jones makes sense of investing. the toothpaste that helps prevent bleeding gums. if you spit blood when you brush or floss you may have gum problems and could be on the journey

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ashley: well take a look at this. over 70% of u.s. adults approve president trump making deals with democrats on bipartisan issues. who would have thunk it? we have former congressman from utah and fox news contributor jason chaffetz. jason, that was quite revealing to me. was that a smart move, smart strategy on the president's role in this going across the aisle to get something done or at least moved forward? >> yes. the united states of america we elected a deal-maker, somebody

who would get something done. they want results. they don't care who votes for it. they want to move the country forward on tax reform and health care, all the other things the president campaigned on. they just want results. we don't care. ashley: we're told his base was outraged. what are you doing? apparently according to the polls, that is not true. they want someone to your point, drain the swamp, get something done, no matter who that deal is done with? >> i think there is a great deal of frustration that we can't get republicans just to vote republican. if we want the health care replacement bill, something, maybe not as far i would like it to see or others want it to be, but something better than obamacare, all we need to do is get republicans to vote republican but we can't even do that. the bill coming up next week, the first vote, first part of the vote is just a decision, should the united states senate debate this? it is just a procedural question. yet we can't get to 50 votes on that. >> how in the heck did we get to

this. jason, your take on that. president obama slamming gop over proposed graham-cassidy reform bill. >> when i see people trying to do hard-won progress 50th or 6200th time that is rag straighting. all of this done without acutarial or common sense raggal is frustrates. frustrates mobilize every couple of months to keep leaders from inflicting real human suffering on our constituents. ashley: jason, that was former president obama, hard-woning from guess on the health bill. by the way it is collapsing and failing miserably. what is your take on that? >> president obama, i understand, it has his name on it so he doesn't want to see any changes but it is failing, it is falling apart. it is not serving the country

well. the promises president obama made are flat-out not true, about keeping doctor -- everybody would save $2500. there is not a person watching this show that saved $2500. it did goo things with preexisting conditions but we have to fix it. it is failing. the president is failing to see that. and he is factually wrong to say it doesn't make progress because i do believe pushing decisions down to the state will make for a better product, more service and accountability at local levels. ashley: jason as we continue the debate on health reform, will congress get through that and get tax reform done? do we see tax cuts or reform put on the backburner which we don't want to see? >> i sat in meetings with house republican leadership where they said they would have the health care bill done on the president's desk done on the day he was sworn in to sign it very first thing. i was told we would have tax

reform that would be introduced. i worry as you listen to the semantic what is is being said, i worry now they're talking about tax cuts as opposed to overall tax reform. that would be a huge disappointment if they don't actually get reform. it really would be disappointing. ashley: if stuart was sitting here, jason, i don't care, as long as we get something is better than nothing, would you agree with that sentiment or would you be disappointed with something watered down? >> make progress on some things. the promise of unified government was opportunity republicans had to move the ball down the field on these two things f we're only moving a few feet forward, as opposed to scoring touchdowns let's at least move the ball town the field a little bit. ashley: yeah. doesn't sound like much to accomplish. but apparently it is. jason thanks so much for joining us. appreciate it. >> thank you. ashley: more on this story. more troubles for equifax as the credit reporting company

disclosed that hackers compromised their systems four months before it was actually detected. this story gets worse and worse. deirdre bolton is on set. >> no matter what mistakes you made what typos, you are still way far ahead than equifax. honestly at this point i even wonder if this company will exist in a year. lawsuits are piling up. massachusetts ag, suing on behalf of massachusetts residents affected. there are law firms suing, you put our plaintiffs date in danger. famous hedge fund seller, carson block, suing company and executives for $500,000. stress, nuisance, annoyance not protecting his data. it is building up, and building up. there are two competitors. neil: peerian and transunion, maybe businesses say those two companies will protect our data. ashley: sure. >> the latest outrage, after the

two hacks, after cybersecurity companies saying even before the first one -- ashley: we have a fix. >> we have a fix. please fix it. they dropped ball twice on the two hacks. for the past few weeks equifax has been sending consumers to a fake website, a fake website to try to freeze your credit which is one of the ways to protect yourself as consumer. they came out with a statement saying we apologize for the confusion. here is the real one. now silver lining this fake site was essentially created by a software developer who just wanted to send a message to equifax. in other words person created a fake website, not a bad actor. ashley: still making a point they still don't have their act together? >> clearly. clearly. ashley: the department of justice, this whole selling of stock, that is whole another issue which they maintain they had no prior knowledge of the hack? >> it is not just your average worker saying i had no idea

about the hack. one of the people is the cfo the other two executives that also sold a combined $2 million worth of stock between the time of the hack and the time they went public, they are both presidents of different units inside of that company. so to your point the deep -- department of justice opened a criminal probe, we can't underline this enough, for insider trading. americans frustration, this is one of the biggest hacks ever, 40% of our population was accepted. it gives somebody the blueprint for identity theft, your name, driver's license number in some cases. this is just underlining how weak this one company is. maybe benefits the other two. lawsuits are just coming out of the walls. ashley: piling on for sure. deirdre, thank you very much. remarkable story. uber unscrutiny too allegedly accepting bribes in at least five asian companies. what is this, liz?

liz: possibly bribing cops in indonesia. this mean as uber's ipo could be pushed off into the future. five countries reportedly allegedly bribery took place between uber officials and in these countries indonesia, china, malaysia, south korea and india. when you have bribery reportedly at this level the concern it could be a systemic problem, that means legal costs, compliance cost, investigations pile up, the u.s. is investigating it so this means the uber ipo could be possibly stalled for a year or more. that is 68 billion-dollar valuation. the new ceo has a lot of work on his hand. ashley: he does. wouldn't want his job. thank you, emac. appreciate it. hillary clinton's new book, "what happened," appears to be a hit, sold 300,000 copies in first week. the biggest week for a non-fiction book in five years. hillary smiling right there.

nancy pelosi praising illegal immigrants who brought "dreamers" to the united states decades ago. border patrol union president brandon judd weighs in on that next. dry mouth has been a problem for me. i just drank tons of water all the time, it was never enough. my dentist suggested biotene, my mouth felt more lubricated.

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liz: hurricanes heart have, irma, now maria, leaving lasting damage. last hour we talked to two borne lomb boring, he says is there a -- link between powerful storms and climate change. roll tape. >> dropped all hurricane levels, in reality look how many people die, you see tenfold decrease of u.s. risk for death. that is very much we gotten better adapting. if you look at damage costs, when you normalize a lot more people moved closer to where hurricane hits, they have also not risen, probably dropped. but at least not risen. so there is no evidence for this. there probably will be tiny impact towards the end of the century, remember we estimate because we'll get much richer and much better.

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it's a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany♪ ♪watch this don't get mad (bell mnemonic) get e*trade and get invested ashley: get a quick check for the big board. the dow is hoping along down 1points. -- loping. it seems to break a record for the end of the day. shifting back to politics, house minority leader nancy pelosi said wednesday illegal immigrant parents did a great thing. roll tape. >> their family did a great thing for our country bringing these kid here who are working, in the military, who are in school, who are brilliant part of our future. ashley: everyone of them? not so sure.

joining us now, brandon judd, border patrol union president. get reaction to what nancy pelosi is saying that the illegal immigrants did a wonderful thing bringing the dreaming generation to this country. what is your reaction? >> ashley, as 20 year veteran of the border patrol, i and my agents can't begin to tell you how upset we are at this. she put us in danger by politicizing border security. pertaining to this issue, she is a regular ticketed passenger of the crazy train. ashley: [laughter]. well that says it all. stay on immigration. no clear time, brandon, when the border wall will be built. however would you agree since president trump has become president, the border is more secure? >> the border is a lot more secure. what he has done, i stated this many times. what he has done is nothing short of miraculous. the problem is, is month after month, we continue to see

immigration, illegal immigration, on the rise. and part of the reason we see this, is because of comments like congresswoman pelosi's, that legitimatizes criminals and lawbreakers and what it does, it encourages other people to come to the united states illegally because, there will be hope that later on down the road they will, they will then be legalized. and that is just wrong. ashley: i would argue that sanctuary cities are also a massive incentive for people. it is like handing, putting out the carrot, if you can just get here, you're going to get sanctuary in this city, which in my mind encourages human trafficking and all sorts of activity this country does not want and nor does it need. >> we scream and cry about the poor people being put in the hands of smugglers, let we legitimatize these smugglers by continuing to offer programs that incentivizes people to come to the united states illegally. again, this is illegal

immigration, this is not legal immigration. ashley: this is interesting, the department of homeland security, brandon, put out a new report saying that the number of attempted illegal border crossings that are unsuccessful has risen to 55, to 85%. that is a wide range. but that is much better than a decade ago. they also say the number of illegals who make repeated attempts to cross the border have fallen. so in their mind, certainly by the homeland security's latest numbers, the rhetoric from the white house and get tough policy or get tougher policy, seems to be working with those trying to get across the border illegally. >> we to thank president trump for what he has done for the effort, and time that he put into trying to secure our borders. but once again, the rhetoric will only go so far. when we have dangerous comments like those of congresswoman pelosi, it will undermine all of the president's efforts. ashley: so does a wall really

stop someone who can go over it, go under it, or more of a psychological barrier? because, wall or not, these people seem to get through? >> it is both. i mean we have example after example of where we have built walls or fences where illegal immigration plummeted. if you look at yuma in the mid 2,000s, it was out of control. ashley: yes. >> we built the fence there and illegal immigration plummeted. walls, barriers, anything that we can do that lets criminals know we're going to make their job tougher, make no mistake this is a job. this is a multibillion-dollar industry, illegal smuggling. ashley: i used to live in yuma, arizona. i know what you're talking. so did lou dobbs, by the way. one thing we share in common. brandon judd, border patrol union president. great job. >> thank you. ashley: unsettling news. at least 245 people confirmed dead after mexico's powerful

earthquake. liz: let's get to the story about the school where 21 children and four adults have been killed. 11 were rescued from this school in mexico city. there is a non-stop live camera shot where they're trying to rescue now a 12-year-old girl. they can see her hand coming out of the rubble. they're still talking to her, trying to extricate her. ashley: get her out. liz: using thermal scanners, heat scanners to find other people and other possible children in there. they're cutting through debris, trying to get to them as rapidly as they can. ashley: desperate effort indeed. thanks very much for that. liz: sure. ashley: another terrible story. puerto rico in the dark this morning after hurricane maria knocked out power to the island. we'll go to san juan next to get a look at the damage.

>> unfortunately the power grid in puerto rico is a fragile system to begin with. i think governor rosesso has been very open about that. going into the storm, we've been trying to set expectations that the power could be off for multiple months. the goal coming in today is establishing pathways to get

generators in to establish emergency power, to critical facilities such as hospitals but the longer-term power rebuild will take quite some time. liz: that was fema director brock long on this program last hour saying it could take months to restore power to puerto rico. 3.5 million people without power. it took a direct hit from hurricane maria for 24 hours. 155 mile-an-hour wind. s. it is now a category 3 heading toward the dominican republic. fox news's steve harrigan is in san juan looking at damage. reporter: one of the biggest challenges in puerto rico is establishing power. this is real do it yourself effort. they're not trying to restore electrical power. they're trying to get the a downed power line out of road for cars to get in and out. they're taking debris from hurricane irma, which hit two weeks ago, to try to salvage

something from hurricane maria. using one storm to fix another. you toker out all over the island. dirt floodwater inside. no electricity. when you ask people who is helping them? we haven't heard a word. we're hoping fema will help us. just how bad are things across the island? still unclear. almost the entire southeast is cut off with no communication. estimate of casualties or damages could be days away. liz: steve, thank you so much more to come. next hour, former reagan economist art laffer is here. will the congress delay tax reform. can congress walk and chew gum at same time? we'll be back. don't go away. every family member, including those around new babies, should talk to their doctor or pharmacist about getting vaccinated.

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ibly5 it is 11:00 in new york, 8:00 in california, senate gop

clearing $1.5 trillion in budget cuts for taxes but where does the money go? art laugher has a good idea, he met with the house budget chair to talk about tax reform. 71% approve of donald trump making deals with democrats. we will see if the rnc approves. kaylee mckinney will be with us. what does she think of those numbers? bipartisan negotiations, former democrat -- >> still a democrat. ashley: we will get into it. the entire island of puerto rico without power, hurricane maria tearing through, the governor calling it catastrophic and unprecedented. we have a report from the san juan and an update of where it is headed next. the market still sitting near their all-time highs, an hour and a half into the session, the dow of 12 points at 22,402,

still pretty good. as usual we have an all-star lineup to cover it. the third hour of "varney and company" begins right now. let's take a look at what the dow is doing, more red than green, the market down 11 points, dow 22,004, still pretty good. hurricane maria slamming puerto rico leaving 3.2 million people in the dark, the entire island. earlier the fema director told us power could be out for months, maybe six months in some places. the governor calling the situation catastrophic and unprecedented. the latest update from san juan, janice dean will tell us where

hurricane maria is headed next, hopefully not the east coast. the latest wall street journal poll donald trump's approval rating jumping to 43%. not great but better than it was. we are joined by mark stein, john wayfield and doug show on, who is still a democrat. to you first. that number heading higher, that number was taken, still historically low but moving up and was taken before the un speech that was by some accounts strong, bold, courageous. what are your thoughts? >> not sure approval ratings -- >> do you care about approval ratings? >> trump is impervious to approval ratings. not sure traditional measures of presidential performance apply to him. i liked the un speech.

i'm not sure in what sense it moves the approval rating. ashley: a strong leader who calls it as it is. >> we are looking at a nuclear north korea. stuart varney was doing his bountifully optimistic routine because he priced nuclear cleveland and in a sense for the -- i think the approval rating will go up only because they understand for this guy, the nuking of cleveland or anywhere is going to have consequences for kim jong un. ashley: what has diplomacy and sanctions gotten us up to now? >> the joke iowa made about the un condemns in the strongest possible terms which is meaningless language. trump did condemn in the strongest possible terms and everybody, this is getting too deep. ashley: you are out in bermuda,

are you immune to the storms up to this point? you are in that part of the world. >> we don't know where maria is headed but we are a volcanic island not like the caribbean, we don't have a lot of flooding, don't have the swell you have with the continental shelf, we have been okay. ashley: what about the president's approval rating? >> it is still below 50% and that is an issue. it is easy going after a guy like kim jong un, to go to the united nations or congress, those are things that are universally hated. when you go to those things your approval rating jumps lose the idea of working with democrats is something that can bolster his approval rating significantly. we had dysfunction in united states congress. if he could bridge that gap that is the key to approval ratings going higher.

ashley: doug, what is your thought on this speech? steve hilton, david cameron's advisor and speechwriter, would you have written a speech like that for david cameron? no way what i have done that but he loved it. >> i very much appreciate the substance. given the circumstances, the overheated rhetoric is probably appropriate to the time and place. the bipartisanship is critically important because it brings another dimension to the presidency, approval ratings, i know firsthand, and the moral authority of the office increases as the approval rating goes up. this is mostly if not totally all good. ashley: 71% approve of donald trump making a deal with democrats which i alluded to which i can't see the problem.

a shot across the about for the gop leadership. >> he made it clear he is still a republican. he would prefer to deal with republicans but on healthcare he made it clear their failure is the reason we haven't repealed and replaced obamacare is republicans said they want to do. he is handling it right but i think more effort of conciliation, lowering the tone of the rhetoric will only benefit his presidency. ashley: when the president said let's have a chat at the white house markets seemed to like it. >> i am part of america that has a brain that think this congress is terrible and disgusting in the fact obamacare was passed with a partisan vote, it will be passed with 100% partisan vote. no way something this good or that bad should be 100% -- this

is the first olive branch thrown to the democrats and that is a good thing. >> day after day we had congressman coming before the camera saying we have got to get it done. they mistake talk -- forgetting something done. actually getting something done. stop appearing before the cameras and get something done. >> 5 minutes ago, can congress walk and chew gum? we can't all chew gum, not that they can't but if you said to ryan you walk and mcconnell you chew gum, one of them would fall over and the other would show. that is the issue and that is

damaging the republican brand far more than anything trump is doing. ashley: we have healthcare, tax reform. if we get these things done the markets have already been hitting new records every day. do we get a nice bump again or a watered-down tax plan, reform cup. will that be a disappointment to the market that factored that in to the prices right now? >> no. i think it is unreasonable to expect tax reform. in 1986 the last time we had tax reform we had a president with a much higher approval rating with much more of the mandates with a congress that somewhat worked together and it took them years to get tax reform done. i don't think it is possible to get tax reform done. if they get corporate tax cuts and repatriation of money i think the market is going to apply that but i don't believe the market expects that and it would be a welcome boost. ashley: anything the gop puts forward in the guise of tax

cuts, tax cut for the rich before they have read it. >> john is right to be skeptical whether we can do personal tax reform but he's making a profound point how to do it. we start with corporate tax reform where democrats and republicans seemingly agree, 15, 20%. if we get a reduction and get the repatriation and get that passed it is a building block for perhaps moving to personal tax reform. ashley: does that get pushed on the back burner while we argue over health care reform? the graham cassidy bill? >> tax reform out to be more doable than healthcare reform but i know doug means that sincerely, i am not persuaded that key members of the senate feel the same way. corporate tax is the easiest to demonize.

a corporation, every dollar of corporation tax is paid by a real human being, not like the articles of incorporation go down in the desk, paying for tax. every single dollar of corporate tax is paid by a flesh and blood human being but it is the easiest for the left to demonize and that is why we have this insane stupid corporate tax rate that drives americans to tax money through ireland and the netherlands and almost anywhere else on the planet. >> easier for democrats to swallow that decreasing personal rate on the wealthy given the rhetoric. >> would you be happy, 20% corporate tax cut rate, is that a good start? >> people who pay that are small and medium-sized businesses. the income tax, personal income tax rate, if you cut the

corporate tax rate you get to small businesses. a small boost to the economy. >> we are getting that. >> more power to you, thank you so much. you are with us for the whole hour. the number of the week, $1.5 trillion carved out of the budget for tax cuts. former reagan economist are laffer met with house budget chair for tax reform. what did he say? both of them from tennessee. ♪ think your large cap equity fund has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income.

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ashley: senate gop clearing $1.5 trillion in the budget for tax cuts. our next guest met with house

budget chair to talk about tax reform. come income a venerable art l f laff laffer. what did you have to say? where does that money go? who gets the goodies? do i get a tax cut? when is my tax cut coming? >> venerable, vulnerable, thank you for having me on the show, goodness gracious, can you see i am long of tooth as well. what the $1.5 trillion does, primarily corporate and i credit him for this, gives some republicans who believe in these pay force and out to vote for the corporate tax cut and i hope that is what they do. i don't want to see it at 20%, i want to see 15%. that would be the stimulus to get this economy going again. let me say if i may on this, if you cut that tax rate to 15% it

will pay for itself many times over not only in economic growth but reduced sheltering, reduced fraud, tax evasion bringing businesses back from abroad, state and local taxes. all of those will increase in addition to economic growth, jobs, this will bring in $1 trillion net by itself, but what corporate has done is given a lot of republicans an opening to vote for this without destroying -- ashley: you are preaching to the choir but democrats will say there goes art laffer, the supply side are. there is no proof money saved will push through the economy. you know that is the argument. >> i worked with more democrats than i have republicans with dynamic kennedy democrat from the 60s my did gerri brown's flat tax when he ran for president, he is no right wing i

don't think, voted for clinton twice, quite publicly, very proud of it but i am a reagan republican through and through. i think trump is doing a great job now and we need tax cuts for both parties, not just republican democrat, growth helps everyone including democrats, some of those people i wish it didn't. it will help them and why not? we tried everything else. with w and obama back to back you don't get much worse than that. we have this 2% growth thing between january 1, 1983, and june 30, 1984, that is an 18 month period. in that year and a half we grew by 12% in real terms at an 8% annualized rate and it changed the face of the earth. we lost the election in 82 and by 84 we won barely, squeaked by with 49 states out of 50. ashley: it took ronald reagan

years to get tax reform in place. you are talking tax cuts. as far as reforming the tax code have you given up on that? >> no. we did the 86 tax reform, not a tax -- it was tax reform but the 81 bill was tax cuts and that was a big tax cut and if you had done the same nonsense with we never would have done it, wouldn't have had the kennedy tax cuts or coolidge tax cuts. we need tax cuts to get growth. reform is not the key. we need the economy to get back on track, rapid growth. ashley: the ageless art lafer. the dick clark of economics. cliff richards as they say in the uk. >> how are you doing? ashley: we are doing great. mark stein is with us, great observer. can we get this done, healthcare, tax cuts by the end of the year? >> with dick clark's american

tax plan we could. dick clark's rocking new year's tax cut, as the ball is dropped in times square, we could. what impressed me was the way mcconnell said condescendingly i think we have a rather inexperienced president who came to town who doesn't understand the trouble this all is. this is not one of those things the republican party is trying to sabotage trump like immigration, this is something they are in favor of. if they can't get this done, two points in common between the republican establishment and trump they can't get anything done. ashley: thank you so much. don't forget we are following developments out of puerto rico, that island woke up completely without power, 3 million people, the entire island devastated. a full report from janice dean

on where this storm is headed next. remember this number, 71% of us adults, 71% say they approve of donald trump working with democrats. does the rnc approve? not so sure. we will get thoughts on that, the markets ho-hum this morning down 15 points on the dow but still very respectable 22,00396. we will be right back. ♪

ashley: hurricane maria, puerto rico's san juan airport has opened for military and rescue flights. it will reopen for commercial flights tomorrow. the storm is headed toward the dominican republic. janice dean joins us with the latest. >> reporter: we are watching 3 systems, we have lee in the atlantic, a remnant that can come back to life at some point, maria and josé off the northeast coast. has a hopefully is going to

steer maria offshore in the next couple days. there is the history of the storm, remarkable storm that went from a tropical storm to a major hurricane in a matter of hours, made landfall across puerto rico and the virgin islands and the southern portion of maria is hitting the dominican republic, seeing wind gust in excess of 130 mph over the virgin islands and puerto rico, the storm could strengthen as it moves east of the bahamas. looking at potential for heavy rainfall across the dominican republic. future radar east of the turks and caicos, east of the bahamas and all indications are it will head into the weekend this storm will move between bermuda and this area of high pressure across the east coast, hopefully the good news, that maria is going to remain offshore. the models are on to a good trend. we will keep you posted through the weekend but for now maria should remain offshore. we like that forecast.

ashley: donald trump about to meet with the president of south korea, more details from him, possible sanctions against north korea, varney will be right back. ♪ paying the price ♪ knock you out ♪ i am going to knock you out ♪ patients that i see

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ashley: donald trump meeting with the united nations generalissimo, met with the president of afghanistan and the president of ukraine. north korea on the agenda with south korea. we are monitoring that meeting and will bring you any news from the united nations. our next guest has a new piece in the wall street journal titled trump goes nuclear. deputy editorial page editor, the president put north korea on notice, we know that, you said he went nuclear, it was okay for people on the east coast to sniff at it but for those in the west coast in range of pyongyang not quite as much outrage. >> a more immediate concern the closer you get to north korea.

as soon as the president gave this speech to the united nations saying they totally destroy north korea pundits on the east coast started denouncing him for suggesting he would actually drop a preemptive strike on north korea. ashley: in defensive mode. if we are forced to defend ourselves. it wasn't a preemptive strike. >> it was not a first strike at all. donald trump was taking a position that every president going back through the cold war has taken. we reserve to retaliate or strike if we feel time -- the we are threatened. there is a doctrine called no first strike which progressives like in which a nation has nuclear weapons declares they would never strike first with a nuclear weapon. the united states has never subscribed to that, nato through it 70 years ever adopted no

first strike. trump was simply saying something, standard american policy for at least 70 years. the difference is up to now, say it was the soviet union or other nuclear powers, we felt we were dealing with ultimately rational actors, negotiated arms-control treaties with the russians. now you are dealing with a nuclear power, north korea is a nuclear power, detonated a 250 kt bomb, 17 times the size of the one dropped on hiroshima. this is not a rational actor and trump is within his rights to raise the elevation of the threat, not so much north korea, it is one person, kim jong un. ashley: the president meeting with the president of south korea, let's listen in. >> thank you very much. a great privilege to be with

president moon of south korea. we had a few discussions in the last couple months and making a lot of headway in a lot of different ways. we on a friendly basis working on trade, trade agreements. much more importantly, other aspects of our relationship, working with north korea. we are meeting on a constant basis, we will be meeting later with prime minister of japan and we will see. we are making a lot of progress in a lot of ways. stay tuned. stay tuned. [speaking japanes

[speaking a native tongue] [speaking in native tongue] [speaking in native tongue]

[speaking in native tongue] [speaking in native tongue] >> mister president, i have met you several times and had many conversations with you and because of the i am more and more familiar. over the years, north korea continues to make provocation and this is deplorable and a danger, the united states has responded firmly and in a very good way. we have close coordination between north korea and the united states and i'm very

satisfied. mister president, the un general assembly, you made a strong speech and i believe the strength of your speech will help to change north korea, thank you very much. >> i am happy you used the word deplorable. i promise i did not tell them to use that word. [speaking in native tongue] >> the fact that our trade deal is so bad for the united states and so good for south korea, we are going to straighten out the trade deal and make it fair for everybody. our real focus will be --

excellent, which is really excellent. we will start that process right now, thank you very much. >> thank you. ashley: the president saying we are making great progress, talking with south korea. it was a terrible deal but he said more importantly agreements on what to do with north korea and south korea and president moon saying the us responded firmly and in a very good way with north korea, so satisfied.

the actions of north korea were deplorable and the president jumped all over that. there you go. he will be meeting with deputy prime minister a of japan with north korea. they were so strong. what do you make of that? seems very at ease? >> the technology with sudan,

you have people who like killing people with machetes who are able to have nukes. to what stuart was talking about they are not part of international, stuart doesn't get excited when he shows the pyongyang big board and pyongyang stock exchange has gone up to 2 because the new managed to clear the perimeter fence this time. so it is not just that they are not rational actors. we are moving to a world where the least rational actor is a nuclear power. liz: the president of south korea said donald trump's speech will keep north korea in check. donald trump earlier in the day said the us will increase

sanctions on north korea. ashley: what do you think of this? we know donald trump is unconventional but to mark's point i like the way he behaves in these things, it is on another level, not all the correctness and political words we hear time and again, he calls it as it is. seems to work with the leaders who have a hard time figuring out but once they do as president moon, i met you a couple times, talk to you on the phone many times getting to know you and like you. >> that was very positive and it is important, president moon said he was essentially in solidarity with donald trump on the speech he gave about north korea. that is very telling and the most important meeting is coming up shortly between president moon and prime minister abe of japan because the japanese have these missiles being lobbed over them repeatedly in the japanese are talking about increasing

their military capability and those of us who followed nuclear affairs for 25 years have always assumed japan could gain nuclear capability if it wished to very very quickly, within months. the japanese are internally discussing what exactly options they have at this point vis-à-vis north korea. that is something they will talk about. ashley: what did they do if the situation becomes nuclear iced, that is a game changer? >> if you're a lefty you are about nonproliferation but if you look at it rationally, it would be good news if japan and other second rank powers were to take this threat seriously. i would not be disturbed if i woke up in the morning and saw that australia decided to become a nuclear power. it is not proliferation but the

kind of regimes. >> as mark was suggesting about sudan, we are crossing a nuclear rubicon where proliferation will extend to countries that are not our friends. rich: fascinating conversations. i want to show you, adult say they approve of donald trump working with democrats, joining us is kaylee mcinerney. for people who were surveyed said it is a good idea. the person who leads the republican party, what are you hearing from your internal sources is this a strategy, put the cat among the pigeons, can

you agree? >> donald trump has 2 work with democrats to get things done, he should do that, the american people expect progress especially uncontroversial things like harvey relief funding and temporary debt ceiling increase, if he needs to work with democrats he should do that. on behalf of the american people. ashley: what does that say about gop lawmakers, he said on numerous occasions, you were sent to do a job, us historic opportunity, come the midterms you will be out. >> the harvey deal pushed republican lawmakers, to get in trump's corner, tax reform has been great, republican leaders have been working with our republican president behind the scenes to get tax reform done. i think donald trump reaching out to the democrats helped make us realize we need to get back

to ground 0, republican principles, go back to conservatism because that god donald trump elected and what will get republican legislation through. ashley: there are those who say this party is split between the freedom caucus and others more moderate who say you can't have all or nothing because you will get nothing 9 times out of 10 and there is a split within the party and it is difficult for everyone to get on the same page. >> we have wide diversity within the party, something we are proud of, we are not homogenous robots like the democrats are. what that gets you is at the end of the day a bill that will be good and workable for the american people. graham cassidy, the republican health care bill is an improvement from the last three. it the end of the day a wide diversity of voices. if you come together and pass something is a good thing. ashley: thank you for joining us, we appreciate it. certainly been a busy morning

for donald trump, meeting with three worldliness, last hour in his visit with the president of ukraine, he spoke about the dire situation in puerto rico following hurricane maria. role that tape. >> puerto rico was absolutely obliterated. puerto rico got hit with windss they say they have never seen winss like this anywhere. it got hit as a 5, category 5 storm which never happens. puerto rico is in tough shape. ashley: you heard the president. let's go to steve harrigan on the ground in san juan with the latest on the damage. >> reporter: 20 or 25 inches of rain produced this in some parts of puerto rico, little islands on this island. apartment, condominiums, some have three or four feet of water, some walking with sticks to make their way through carrying their children on their back or knapsacks, it is a tough

slog for just about everyone. incredible damage from the hard windss, many of these buildings have their roofs off, holes in the sidewalls as well. if you go inside not only is there no electricity but often black water on the ground. the real challenge will be electricity. could be without it for 6 months. that is how bad this powerline was hit. people trying to do whatever they can do, some playing in the water, that is using it to carry out their daily tasks. back to you. ashley: steve harrigan on the ground in san juan, puerto rico. lesbian former fema director michael brown. one hit after another. do you have the resources to deal with all this? we had harvey, irma, now maria and who knows what is next? >> exactly right. what is going to happen is this will blow a larger hole in the giant hole we have in the

federal budget. what happens, what always happens in these disasters congress will come back and have a big argument about the debt ceiling and they will realize they have to get money to these disaster victims to start repairing the infrastructure and they will pass a continuing resolution, and appropriation bill and once again we will get the money that needs to be spent to do these things was without ever addressing the overall costs when we have these things. there is no preplanning, no long-term planning how to finance these things, just we had this horrible thing, let's appropriate the money, send the bill to the treasury, they will borrow from the federal reserve, the deficit will blow up and the money will get to the victims. ashley: i was looking at houston, so much was focused on harvey and the devastating flooding, many people lost their house. they go back and it is uninhabitable. what do you do if thousands of people have nowhere to live? what can the federal government do for these people to rebuild?

>> this will be the biggest challenge 54 fema just as this was the largest challenge in katrina. once you have a quiet i catastrophic, if a disaster happens to you it is catastrophic, catastrophic in terms of having hundreds of thousands of people that are displaced, homeless, we think it is easy, just go put them in motels, hotels, rent apartments, but in places like houston and florida, those properties are saturated with owners and renters so you have to find alternative means to house these people temporarily and by temporarily i mean long-term because it will take a long time to get back into their own homes. this is the biggest challenge they face in terms of this particular disaster, apart from puerto rico. ashley: i think hurricane season run through november so i hate to say we are out of the woods yet but that is the truth. michael brown, former fema

director, appreciate your expertise. let's take a quick check of oil prices around $50 a barrel mark, that is where we are, just about down slightly $.13, 55, gas prices down again overnight. stuart varney is smiling. national average -- >> probably at the gas pump right now. ashley: gas down to $2.59. nancy pelosi thanking the parents of dreamers were breaking the law by bringing their kids into the country. you can't make this up and you will hear about it next. ♪ ♪ it is an open invitation ♪ ♪ i will be sitting right here ♪ ♪ all day all night

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ashley: nancy pelosi said illegal immigrant parents did a great spring by bringing their children here. >> their families did a great thing for our country bringing these kids here who are working come in the military, in school, who are a brilliant part of our

future. ashley: every one of them became your was a standup citizen or stand up illegal alien. but whatever, that is nancy pelosi trying to appease critics of her, saying she hasn't been true to them, now she is saying it is a wonderful thing, break the law, come here, bring your wonderful children here. >> i hate this sentimental is asian of public policy that the dreamers thing, you do a great thing by breaking the law. i came here the other way. i am not an undocumented immigrant, i am documented and i will never make the mistake again. she is saying to all 6 billion people outside the first world, come to america, bring your children to america, you will be doing a great thing, all you got to do, don't do what mark stein did and do the paperwork and all that, that is not romantic like getting a flat bottom skiff across the rio grande, you're doing a great thing for us.

this is public policy we are talking about. what immigration policy is in the interests of the 300 million people who are already here? all this rubbish obstructs serious talk. ashley: where is the rule of law? those people who do it legally, we had nick adams this week, $50,000, 5 or 6 interviews, could have easily just gone to i 5 in southern california, come through tijuana, thank you very much. >> we are bifurcating into a society where certain people have to observe no laws like the dreamers. if you are a designated dreamer the law doesn't apply to you. and the sanctuary cities and yet almost as much as they do that they chastise law-abiding people on ever more petty and absurd infractions of this and that.

we were talking about bagpipes. the world at least competent immigration bureaucracy teases bagpipes on the canadian border when people are coming from québec and nova scotia to play the bagpipe competition in new hampshire so -- if we issued everybody south of the rio grande with the bagpipe none of them would get into the country ever again. you don't need a wall, just need to get the bagpipe to everyone in latin america and use all illegal immigration. ashley: changing gears, hillary clinton on the book tour, she blames everybody down to the squirrels, probably russian squirrels, doing a great service for the gop, it reemphasizes how badly democrats lost to donald trump. >> what you really want, if you are the party that won the election you want the other party talking about why for the

next four years. who was that? stephen colbert, one of these other fellows last night said i hope you are going to stay in public life, i hope you will stay in public life, hillary and keep talking about this. you begin to see. liz: a clintons have always talked like this since the 90s, vast right-wing conspiracy whenever their behavior or actions for this perverse sense of victimhood, the logic of that that state with. >> it always worked out well for them and terrible for the democrats. ashley: works out well for their bank account. more varney after this. ♪ dreaming like a jawbreaker ♪ they really appreciate the military family, and it really shows. we've got auto insurance, homeowners insurance. had an accident with a vehicle, i actually called usaa before

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ashley: so about 30 minutes from the end of the show. the markets, mumbling along. down 29 points. mark zion, last word to you, i

think last couple weeks, strong for the president. good storm response. and leaders of the world. >> he has been absolutely terrific on the hurricane response. and i hope he is with puerto rico too. ashley: i think he will. neil cavuto. finish there. take it away, sir. neil: thank you very much, my friend. we're looking fallout from a hurricane apparently has not quit. the entire island of puerto rico still without power. could be that way for a while. 11,000 hunkered down in shelters. puerto rico's governor with a 6:00 a.m. to 6:00 p.m. cure few. president trump promised to visit puerto rico. >> the electrical grid was destroyed. it wasn't good to start off with. but their electrical grid is totally destroyed. so many other things. we're starting process, and work with the governor and people of