maria: great show, everybody. go seize the day. the show goes by so fast. thank you pete hegseth, brian brendberg, dagen, always a pleasure. have a great weekend, thanks for being here. you want to say something? >> no. ashley: maria, thank you. many of you clambering to know where the heck is stuart, well, i cannot disclose his act location because he wouldn't let me but i can assure you he's on vacation with his family and he will be back on monday. now, first we have a lot of news to deal with on this friday. friday is a busy day starting with north korea, of course, threatening to launch an h-bomb into the pacific ocean. kim jong un calling president trump deranged and says he will pay dearly, also calls him a gangster. meanwhile officials in hawaii are reportedly telling residents there to prepare for a nuclear attack just in case they say. how comforting is that? markets, however, don't seem

concern. they have up slightly this morning. futures on the dow down 39 points. perhaps investors have more confidence in president trump to handle the north korea threat specially after he got china to blink and stop banks from doing business with rogue regime. also today london blocks uber,ics phone 8 goes on -- iphone 8 goes on sale. varney & company starts right now. ♪ >> today i'm announcing a new executive order i just signed that significantly expands our authorities to target individuals, companies, financial institutions that finance and facilitate trade with north korea and i'm very proud to tell you that as you

may have just heard moments ago, china, their central bank has told their other banks, massive banking system, to immediately stop doing business with north korea. ashley: words from the president on north korea. a north korea diplomat is hinting hydrogen bomb test on the pacific. stock futures not moving that much on the news. come in byron york, political correspondent, byron, thank you for joining us. it seems like every day we have some sort of threat involving north korea, but the markets don't really seem to care at this point, do they? >> well, they are not showing it. i think what you just heard the president say about china could be very big news. we don't know if it's actually going to happen but the idea that china really would begin to

crack down on its banks that are doing business with north korea would be a very big deal, in addition to the president's new sanctions. every time we hear the new sanctions, you think, why weren't we doing that already, but apparently there are additional things, additional people we can target who are doing business, providing goods and services and technology to north korea. so the president is clearly upping the ante a little bit and maybe getting china to go along with them. ashley: that's a good point, we don't know what they do around the back there. listen, at some point, do these sanctions put the north korean dictator into a corner? what's the end game here? he's not going to give up. he will continue to make outrageous statements. i mean, will sanctions alone do the job in bringing them under control so to speak? >> well, they never have. they haven't yet, but there's also been on the flip side of sanctions of the argument,

fundamentally you can't let north korea starve, so it's unclear. it's totally unclear what kim jong un does. i mean, does he -- does trump calling him rocket man drive him into an insane frenzy and he starts a war or he likes it and he makes rocket man t-shirts, i don't know. he's impossible to predict. clearly there are additional means that can be taken against kim jong un in the hope that at some point he declares victory and stops. ashley: let's get back to domestic agenda for the president. we have tax details being released next week, tax reform, tax cuts. we've got health care hanging out there. lindsey graham says he has 50 votes for the graham-cassidy health care repeal bill. do we get this stuff through and done by the end of the year, byron? >> well, on tax reform i think the answer for a lot of people yes, request not -- if not tax

reform, tax cuts. ashley: yeah. >> after failure of obamacare republicans needed to do something more so than the president as he can point to executive actions as accomplishments. republicans in the house and senate that are up for reelection need to show that they have done something. i think the prospects per something on taxes are pretty good. now what has happened is this obamacare third try has kind of sneaked up on us and seems to have a lot of support, but, you know, it could -- obamacare could be the thing that's always one vote short. the first time around in the senate it was john mccain, maybe it'll be somebody else, rand paul or somebody else this time. ashley: the republican who saved obamacare as mr. president -- as the president said will be known as. thank you so much for joining us on this friday. >> thank you. ashley: quick look at stock futures. some muted reaction in the face of north korea threat. in the old days you could see the markets down 2 or 300 points

with the rhetoric we are hearing. not these days, dow down 45 points. we will see how that plays in the open. take a look at apple. shares down again after iphone 10 has been announced. today you can buy the new iphone 8 but there's been a lot of softness on the stock. apple down half a percent. down 152.57. let's not forget the problem with apple watch, doesn't connect properly. not so good. here is a number for you, household wealth, up to 96.2 trillion. i'm not sure -- [laughter] ashley: it's all thanks to stock and real estate. >> that's right. home equity values up nearly $600 billion. a feel-good moment. you know, i hope congress isn't reading it because they're talking about taxing 401(k)'s and things like that. this is a nice year of the expansion. it is the third longest

basically since world war ii and then the question becomes how is congress going to look at it because 10%, top 10% own -- own 70 trillion of that wealth. it's usually the middle class, they benefit from home equity prices going up. ashley: that's very true. thank you very much. bold prediction from senator lindsey graham on health care. roll tape. >> i think we are going to get 50 republicans to vote for federalism and i will make a prediction, a couple of democrats will come on board because their state does so well. i like new york, california, massachusetts and maryland but i want to give them all the money. ashley: rand paul or whoever votes against h care bill will be known the republican who saved obamacare. strong words from the president. joins us now hoover fellow and former senior adviser and policy to the national republican senatorial committee, okay,

lonnie, health reform countdown is on. do they have a chance to get this done, do they have the votes? >> i think they definitely have a chance to get it done. as byron said previously, they have been within one vote before. we have seen this movie before, but, indeed, i think the energy is there and i think the one thing that all republicans agree on when it comes to health care, there are a lot of things they disagree on, but one thing they agree on is federalism. they agree on the need to give states more authority and washington less and that's what this bill does. ashley:let us not forget we will get taxes, on monday we will get details wednesday. do they have vote to get that through and who actually wins, the middle class always gets the shaft and does the middle class come out of this tax-cut scenario ahead of the game and are the republicans on the same

page more importantly? >> if they focus on tax cuts which is what president trump said he wants, they are really going to have to focus tax relief on middle-class, middle-income taxpayers. the big question is do they pursue larger tax reform. do they look at reforming the corporate side of the code, one question to look at is do they treat small businesses who file through individual code the same as through corporate code. those are the kinds of questions we will be looking for and we will know on blueprint on monday. ashley: what do you think the president going across the i'll working with democrats because he can't get the same with own party members, by all counts it's working, his approval rating has gone up because of it, from your point of view is that a good strategy? >> you know, politically i think the president is doing what he needs to do in terms of speaking to democrats to get support. the challenge is he has to remember the people that helped him get him to presidency and

ultimately we haven't seen significant deviation yet. we will know more on obamacare debate. without their support, i don't think this effort would be as far down the road as it's been. next week is going to be an absolutely critical week. ashley: it certainly is. loneh chen. >> thank you. ashley: uber losing license to operate in london, one of the biggest markets. >> basically saying you are losing the license because you are not following the rules, not doing criminal background checks, reporting criminals offenses of drivers, congestion, things like sexual offenses not reported by uber, so not reporting the crimes of their drivers properly, no medical certificates -- ashley: lack of

corporate responsibility. >> exactly right. london is one of uber's premier markets. uber is now dealing with bribery allegations in asia and cleaning frathouse culture. uber is saying you are going to put 40,000 people out of work and 25 million people use uber. it is very popular. ashley: cabies are celebrating. president trump heading to alabama today. he will attend a rally for senator luther strange who is in a heated race, senator strange will be joining us. contentious runoff for the seat. some harvard professors pure -- furious that school gave chelsea

manning a teaching position. next.

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ashley: more than 150 harvard professors are protesting against the university's administration after it rescinded a ph.d program offered to exinmate michelle jones and fellowship to chelsea manning. they are upset. charlie kirk, charlie, come on in, what's your thought on situation in harvard? >> when you have that many harvard professors upset, something is going right. harvard is known as the beacon of american educational kind of advancement of the ideas and this is the best that they can do. i'm glad that they rescinded this. instead of trying to get convicted leakers or former criminals to come speak and lecture, why don't they fight for intellectual diversity, conservatives to come to harvard, different types of

ideas, it's more than entirely possible to be political science student for four years and not hear one good thing about a conservative idea for more than ten minutes. think about that. i don't think what the 150 professors think. it means nothing to me and the fact that they are kind of in a cross-firing squad actually makes me chuckle a little bit. ashley: i can meet your 150 professors and raise it to 277 with uc berkeley, professors there are signing a petition to boycott free speech week. another example of, you know, we don't like your message so therefore we are not going to allow you to speak. what's going on in college campuses and specially at berkeley, you know, the cradle if you like of free speech? >> used to be the cradle of free speech. we are going to boycott free speech week not because it's anything racist, they disagree with the people that are speaking. now, it's very funny, they will have to pay $300,000, actually total cost of $600,000 to keep the campus safe.

so free speech is not really free anymore. it's actually quite expensive. this is exactly what the left wants to do. they want to make it so difficult and cumbersome to bring conservative speakers and people who give conservative lectures on campus that universities cite the cost as an issue not the head intellectual diversity. and i so i always lane back, if you're a conservative student on campus, you have to sit through leftist nonsense and grar badge for years. why can't the left be okay with optional conservative speaker to come on campus. ashley: they must be threatened by the conservative ideas and thoughts so much that they want to clamp it down. by the way, i should give you a shot-out, president trump tweeted a thank you to you after you commentated on un speech. >> not a bad way to start the morning, love the president, support his agenda and i think the speech at the un was historic. ashley: it was historic, usual

critics came in. the french said you can't talk about iran and iran deal. it was bold and you think very effective? >> most definitely, my favorite part of the entire speech was how he targeted venezuelan socialism. you look at the rise of socialism throughout central and south america and how it's completely destroyed once vibrant rich countries such as venezuela and president trump was unafraid on national stage to called out the fail marxist ideologies. you are not going to get it from trudeau and european leaders. that's what i love about the european speech. ashley: what are your thoughts on the president reaching out to democrats and getting the spending plan in place till the end of the year, raising the debt ceiling all of that stuff purely because he couldn't get people from his own party to agree with him.

>> i love it. let me tell you why i love it, the only reason why we will have a health care vote next week is because president trump put pressure on republican leadership by showing he can work with the democrats. if there's no deal on the debt limit, let's be perfectly clear, the graham-cassidy bill will be no where. all right, republicans show me what you can do. got the debt limit, got hurricane funding and now you're up. you are seeing republicans work harder than ever before, they are complaining they have to stay in the halls of congress till 10:00 or 11:00 o'clock. the hardest they've worked. the country club has to become an office now. i love it. the president demonstrated fantastic leadership there. ashley: charlie kirk as stuart likes to refer to you the future president of the united states and we hope that's true, charlie kirk thank you so much for joining us on this friday. puerto rico, by the way, still picking up the pieces after getting slammed by hurricane maria, the entire island still without power, could be up to six months without power in some

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sales down at the finishline, the athletic store down 9%. big hit at 8.39 in premarket. on how to hurricane maria. let's bring in fox news meteorologist janice dean who has been working tirelessly through an amazing rough hurricane season. with maria, janice, are we going to dodge a bullet here in the u.s.? i know maria is still causing plenty of problems out there. janice: every day is different it seems, all indications are that it will remain offshore but all depends on what's going to happen in the upper levels of the atmosphere in next five or seven days. for now we know it's a strong hurricane. it's a major hurricane, 125-miles-per-hour sustained winds. east of the turks and caicos although they are getting forced winds, incredible storm surge in low-lying areas and the rainfall, but this will move east to the bahamas over next 12

to 24 hours and it's going to, we think, somewhere between bermuda and outer banks. it could come close to the u.s. and that's something that we will have to monitor. will this high pressure help to steer it towards northeast out to seas? what we would like to see but it scoots out to north and east. we will have to watch it. both computer models in agreement that we could have a quick brush here. stay tune, we will keep you posted. ashley: thank you very much, janice, let's hope storm goes between bermuda and east coast. all right, janice. let's take a look at the market, premarket before we open in just about 4 minutes from now. dow is showing it's going to open lower by 36 points. s&p and nasdaq also down about 2

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♪ ♪ ♪ ashley: well, the opening bell ringing in just about 15 seconds from now.

we are closing out the trading week, the dow finishing lower for the first time in about seven sessions yesterday. lots of political geopolitical tension out there. north korea these days, doesn't seem to be having massive impacts on the market. let's check it out. as we saw trading getting underway, sure enough, the dow up 26, 30 points. 22,328. you can see the dow stocks to the left, the majority in the red. that's where we are as we kick things off. hecking the s&p, same story, down a tenth of a percent, 24.97. just under 2500. let's take a look at the nasdaq, also down a third of a percent at 64.02. lots for investors to think about out there. let's take apple shares, down 1%. 151.77. iphone 8 goes on sale today, goes on sale today, maybe more people excited about the iphone 10x, whatever you want.

that's hurting the dow, by the way by about 14 points. that's the strength of apple, certainly not helping the overall dow. the equifax support team sent victims to have data breach, you can't make this up, to a fake site. great, but is it hurting the stock? no, right around 100 bucks, up slightly, unchanged at this hour. let's take a look at the defense stocks after fiery rhetoric from kim jong un and the north korean diplomat hinting a hydrogen bomb test this weekend, since election have been doing rather well because of the tough talk going on between the united states and north korea. take my word for it. they were up yesterday probably going to be up higher today. who is joining liz mcdonalds, jeff sica. todd, to you first, bubba, as you look to be called, i would think in the old days with the types of things that we are hearing

hearing from north korea that the markets could be down 2 or 300 points, doesn't happen these days. >> they could be, good morning, ashley and liz. we have a market that continues to climb the wall of worry and all this is going to lead to is a much bigger correction when it comes. you can't keep ignoring every bad thing that happens. we ignore every piece of bad news and continue to go up because, of course, complaisant and greed are taking over. >> there's a psychology that has to do with the fed and low interest rates, liquidity that's been created that's driving stocks up on a daily basis. something like north korea which is an eminent threat and rhetoric continues day by day but gets ignores because investors -- bond yields are so low that they can't buy bonds. they are being starved out of

bond yields and the market keeps moving up, but that's going -- that's going to create a bigger vulnerability in the future. liz: central banks -- ashley: couple of misery grews. liz: friday grumplstillskins. to jeff's point and todd's point, the federal reserve is unwinding, they have done their part, if you can argue what they have done about it. they have to pass the baton to congress. congress is treating that baton like a hot potato. ashley: no one is listening. >> think about what the most person, janet yellen made yesterday, unwinding the balance sheet is going to be effortless

nonevent. to me the size of the balance sheet is animus. ashley: what if they do it at a rate that's not huge -- >> it needs to be pulled off as quickly as possible. ashley: i get you. >> in order for this to not to have a long-term impact. liz: i can't believe that you're not getting the buzzard. [laughter] ashley: let's move on from the buzzard. household wealth hitting new record $1.7 trillion to a massive 96.2 trillion. i contributed nothing to that thanks to stocks and real estate. >> 1 trillion of stocks, the balance of real estate. we are in the nice -- we are in a nice year of the expansion, the third longest. it's going to basically come up in congress as income inequality debate. ashley: tax the rich. liz: tax 401(k)'s, it would be

such a disaster. you need them as the baby boomers retire. >> this is not talking about income inequality, this is talking about -- ashley: you will get the buzzard. >> benefiting a few number of people and we need tax cuts. if we get tax cuts, the middle class -- i believe the middle class needs tax cuts and this wealth effect that's taking place, this increase in -- in wealth will affect more people and that's the goal. ashley: what do you say, todd? >> the middle class needs jobs, we need jobs, we need growth, some real growth and not artificial growth that we keep hearing about. we need interest rates to rise so banks can provide liquidity to the small business guy instead only providing liquidity to the rich. this is one of the big problems. we have real wages falling. we don't have enough jobs out there that can pay enough money to have these people work and

get their health care and everything else they said. ashley: tax cuts to get you a new studio. you sound like you're in a cave in mongolia, but we love you. let's go to apple. anyone care about the iphone 8 that's launching today? do you care about the iphone 8? >> no. i think that it's another product that means nothing to me at all. [laughter] ashley: couldn't say it clearer than that. i agree with you. i'm on the same boat. >> two things about apple they keep rolling out new versions with gimmicks, constant gimmicks to convince people to buy or upgrade, here is the thing, google is going into the hardware business, google is starting a partnership to go into the hardware business. apple is going to have competition and if they don't have any real innovation beyond the gimmicks that they are putting on these phones -- ashley: what about the iphone 10? >> of course, when they keep upgrading everybody say, i'm not

going to buy it -- ashley: right. >> they are cannibalizing their old models. ashley: that's all they've got. liz: apple iphone users are sitting on old phones. 75% have 2-year-old phones or longer. i'm not sure how much longer they can do this game. ashley: i cannot for the life of me understand why iphone watch, disappointment doesn't really cover it, it's going to be the big new deal and doesn't work properly, how on earth have they rolled out without testing bugs? >> the watch was nothing, nobody was going to care about the watch and, you know what, it came true and i think, yes, a lot of people are buying cell phones, google going into the hardware business, now they are going to be making a phone. i think the marriage between

google and hardware makes a lot of sense. apple is complaisant, no innovation and behind the times and if they don't step up they will loose market to samsung and google. ashley: higher sales for carmax, by the way. big board down 15 points as you can see. up nearly 3% at 70.82. guess what sales at the finishline, i think i've been there once, sales down 5% now. it's not great at 8.72. new survey indicates that court cutting could accelerate more than 5 million u.s. households per year. that's a lot o. liz: another survey says, this is from e-marketer, 22 million by the end of the year. this really matters to sports franchises such as the nfl. the nfl ratings are -- the first

weekend it was blamed on the hurricanes, last year nfl ratings were down -- ashley: election. >> blamed on the election. the second weekend, though, nfl ratings down something like 15% year over year. you have to look at comcast and all the companies that paid a lot for the sports rights to air nfl games. they are going to be under pressure because they are expecting 2 and a half billion dollars in ad revenues to come in the door and politics is an issue according to gdp power survey, right? ashley: todd, have you cut the cord? >> i'm a netflix guy and i pick up what i want online. i think it's a much easier way to do things and i don't need all the programming, all i need is to have fox business and i'm in good shape. ashley: you're a good man and jeff and i often talk in commercial talks how much we like -- >> yeah, it's convenient. people right now facebook is taking over -- taking over communications, people want what

they want when they want it. they don't want to be forced to sit in front of a screen and wait. for the cable providers that didn't get on board that are taking it on the chin now, they deserve it. they should have got on board. ashley: manchester united, one of the big sockers clubs in england anticipating that amazon and facebook will pursue broadcast rights. that's kind of a big deal, premier league, you know, nbc sports has been covering for two seasons in a row, i mean, extensively, this is a big deal. >> it's a big deal because the sports teams as liz said, the sports teams need to maintain viewership and the advertisers need to make sure that they don't lose viewers and so this is a major deal and be looking for the -- for just about every major league sports team to sign deals, franchise to sign deals like this. ashley: todd, would you watch any sports, baseball, american football, english socker on

facebook, for instance? are you open to that? >> no. i think facebook is -- i mean, it's a great company, they are making a lot of money but i wouldn't watch anything on facebook. if i want to watch it i want to watch it on the screen and not be stuck with ads. liz: happy friday. ashley: happy friday. cheer up, the weekend is almost here. we are out of time. >> i'm always happy. ashley: you are always happy. anyway, todd, thank you so much for as always, jeff as well, happy friday to you both. let's check the big board for you. we finished the session lower yesterday, we are coming back. just a little bit we were down 30 points, in 11 minutes we got it to 10 points. the former navy sailer sentenced to a year in prison for taking photos inside the engine room of nuclear submarine, guess what, he's out of jail and his lawyers argued what did he do that was anything, you know, what did he do that hillary clinton didn't

do by mishandling classified information. it's an interesting argument. christian joins us himself to tell us his story. he is out of jail now. cbs won't limit of doctors' prescriptions. that's next.

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ashley: well, look at this, we were down about 40 points when the opening bell rang but we are clawing our way back, down 5 points in the dow. 22,352. meanwhile general mills, get this, to bring back the old trix with artificial colors, that's interesting, what's going on, nicole? nicole: i feel so rebellious reporting the story because i love trix.

silly rabbit bring back everything artificial about the cereal. they used purple carrots and radishes instead of high fructose syrup. change it back and the color is depressing my children and it's basically a salad. welcome back to trix with everything artificial, red 40, yellow 6, great taste, nice crunch and bright colors and i for one am pretty happy about it because i do love it. ashley: i'm right there. great time to be alive. thank you so much for that on trix. now this, cbs will become first national retail chain to restrict how many pain pills doctors can give patients. the chain also requiring pharmacists to talk about risk of opioid addiction. i'm surprised this isn't happening already but joining us now dr. mark seigal, this has been an issue near and dear to

your heart. they will limit opioid prescriptions to seven-day supplies. instructing pharmacists to contact doctors if they are concerned and caps on daily dosages, all of the things should be in place already in my mind. why aren't they? >> they are not because there hasn't been open acknowledgment until now. pharmacies are playing a major role here. doctors start this by writing overprescriptions and now cvs is a great place to start here, ashley, because there's 90,000 patients that are involved in this. 90 million people. ashley: 91 americans die every day from opioid addiction. >> right, over 60,000 opioid overdoses a year. this is a huge problem in the united states right now. it's the overdoes, the deaths, 1 out of 3 americans are using opioids right now. one out of three americans, cvs caters to 90 million americans

so they are the place to start but this is assuming that we can't get physicians under control. i want you to understand that education to physicians, the right physicians prescribing for right reasons is where we also have to start. the reason that i really like this move by cvs is something called exposure. the more opioids you get, the more likely you are to get addicted. the longer you get them, the more longer to get addicted. the dose, more likely to get addicted. cvs is limiting dose and how long people can take them for, up to a week. it's going to be a that'sle for physicians to be contacted by pharmacies butlet -- but let us think more. you have a dental procedure, you have a tooth pulled, you may be in agony. usually you probably need an opioid in that situation for two or three days, not 30 days. ashley: yeah, that's crazy. >> plenty have the wisdom teeth, back pain the same thing.

ashley: i was reading an article, i think it was an op-ed, the biggest problem when they started introducing pain management. tell me what is your pain 1 to 10 and a lot of people say it's 12. the quality of care given was being measured by how people said that the doctor handled their pain, in other words too much emphasis on pain management and that's what led to stronger and stronger opioids being prescribed and in greater amounts. >> exactly, right, ashley. they made pain the fifth vital sign that we had to ask everybody. it's a subjective thing, how much pain you have. here is the problem with the institute of medicine saying there are 100 million, 100 million chronic pain sufferers and we have to ask everybody, here is the problem, we weren't train in what to do if someone said they had pain, so we panicked and -- ashley: gave the strongest thing.

>> i don't want to give myself as an example but many physicians specially primary care physicians didn't have the right tools, didn't have the right arrows and didn't say, wait a minute, the back pain, maybe that could be treated with acupuncture or muscle relaxants, maybe heat, there's many, many nonmedical modalities that are useful. ashley: options. >> send the patient to the right specialist. ashley: before you go, another subject here, new report that aaron hernández had stage 3cte, brain damage relate today playing football. we know the tragic story of the individual. who is to blame here? the nfl, the level of cte was off the charts. >> well, first of all, he had stage three cte, protein that interferes with normal brain function. you start off with behavioral

problems, emotional, anxiety and then as you -- and depression, as you develop you start having thinking problems. at the age of 27, literally the youngers individual to have this degree of chronic traumatic, the youngers and it's a great tragedy but the boston university cte center which found this and did this autopsy, i want you to know over the summer, they did autopsies on 111 players and found 110 of 111 had evidence of the disease. here is why, ashley, chronic blows to the brain. it's not one hit to the head, in the military or in football, if you're getting chronic repeated blows to the head, it does damage. it's tragic. this man allegedly murdered people and he committed suicide and he was a great football talent and this is a great, great tragedy to his family and to america. ashley: big issue for the nfl to address. >> right now. ashley: thank you so much.

appreciate it. let's check the dow 30 stocks for you quickly. split between, you know, stocks moving low, stocks moving high in the green. down 15 points at 22,344. fedex teaming up with operation barbecue relief to ship brisket. story and details next 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. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at alpsfunds.com/amlp

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ashley: fedex airlifting barbecue meals to irma victims. liz: fedex god -- got the idea. one of the mechanics said, did you hear about effort relief, teams from eight states work and compete to first responders and victims of hurricanes. they delivered 400,000 meals already to the coast of texas and right now working to get 10,000 meals a way down to keys. ashley: another example of how people come together in times of need. liz: i love it. i love the story. [laughter] ashley: you want barbecue.

great story for a friday. thank you very much. well, we should be pointing out that maria, hurricane maria slamming into puerto rico, now the long rebuilding process begins there in texas and in florida. coming up, do we have trained workers out there to get the job done? we will ask that question because there's a labor shortage in the construction industry right now. also ahead christian, the former navy sailer who served a year in prison for taking pictures inside a nuclear submarine, he's out of prison now and under house arrest and he will join us in the next hour

. . . .

ashley: 10 a.m. on the east coast. 7:00 a.m. in the west. good morning to you. puerto rico again waking up without power to total devastation. we're told several months, up to six months to get power back on in parts of puerto rico.

hurricane maria churning around headed towards the tuesday, turks & caicos. do we have workers trained to for houston and florida and puerto rico as well? that is a good story. kevin brady is convinced he will lower everybody's tax rates. we hope he is right. details coming up on the plan. we'll ask former director of the cbo if there is enough money to get it all done. a big win for the president on the world stage. as expected the left is remarkably silent about this. we'll talk to a former navy sailor who was imprisoned taking pictures inside of nuclear submarine. he is out on house arrest. he will join us from his home to talk about his experience. i'm ashley webster. , stuart by the way back on monday. the second hour of "varney & company" begins right now.

♪ >> north korea best not make anymore threats to the united states. they will be met with fire and fury like the world has never seen. "rocket man" is on a suicide mission for himself and for his regime. the united states has great strength and patience but if it is forced to defend itself or its allies, we will have no choice but to totally destroy north korea. china, their central bank has told their other banks, that is a massive banking system, to immediately stop doing business with north korea. ashley: that was president trump, talking tough on north korea over the past few weeks. it looks like it is working.

china finally listen as well. more on that in a moment. look at market on pace for the second down day in a row after a nine-day win streak. we were down 40 points at opening. still down about 14 points. dow at very high, 22,345. looking at big tech stocks as we like to do. this is where a lot of money goes. only facebook on the upside. amazon, alphabet, google, apple, moving slightly lower. apple is down as it was yesterday as well. check the price of oil. opec meeting in vienna today. anyone care? apparently not. the price of oil unchanged. nationwide average of gallon of gas down near aa cent. we know stuart is smiling at that it has been going down a penny a day. we'll take it. president trump responding to the north korea's regime with latest threat with this tweet.

this madman doesn't mind starving or killing his people will be tested like never before, exclamation point. here is fox news contributor tammy bruce. great to have you. president making progress. china says its banks stopped doing business. we can never trust china. we don't know what it is doing on the side, but seems like a great victory for president trump. >> as you said before legacy media is not covering this so much. we have the internet, fox news, fox business, where real information is being imparted. this is the other issue. this is a delay if you will, we had sanctions and other things that have been against north korea. clearly they made extraordinary progress. china knows north korea is point of no return in a way. the latest threat, reported by reuters yesterday was that north korea was saying they're going to test another thermonuclear bomb, h-bomb, in the pacific. that is moving closer technically to the united

states, but imagine the impact on the japanese economy already dealing with the fallout of fukushima, still dealing with that when it comes to radiation f you're talking about the pacific, it means moving past japan, perhaps just outside of international waters there, which is still have impact on the japanese economy. what do we say when it comes to, well, is that test going to be about an icbm? will it be a stationary test? what do they mean? i love the president tweets. i'm one of those people who love that. ashley: sure. >> but we have to move past that. if the president does nothing and still about sanctions, and north korea's not impacted by that, and we're at a point where he is even physically closer to hawaii as an example or physically even closer, if you can get closer to japan, what's the president going to do? americans want to see action, and there is a chance that he could be injured, the president, when it comes to his legitimacy on these issues if it is all

just about rhetoric like it was with obama and then no action. ashley: i know this is politics. i'm not naive, hillary clinton who is still out on the book tour, god bless her, i think that does a huge disservice to her own party, carry on what i say with her. >> right. ashley: she called the speech at the u.n. dark and dangerous. now we get some cooperation from the chinese. will we hear anything from mrs. clinton? >> i think her, i don't expect so. i think all the rhetoric from the left, oh, this was dangerous, heard that on other stations and also from hillary it, remind people, that was the position of the democrats for eight years and the world has become a dumpster fire. it emboldened the tyrants of the world. we do remember reagan, venezuela reminded us, reagan had some same rhetoric. reagan followed up with action. the world became a safer place. i welcome that. it remind americans what didn't work, why we rejected the left and rejected the democrats.

this is time for confrontation for reality, and for action. ashley: very quickly, tammy, we're seeing the president's approval ratings go up. >> yes. ashley: it was interesting, one of the polls taken before the u.n. speech which many believe gave him another boost. he is doing something right. >> he is is. but we also saw action the last time really on syria, which came after a lot of heated rhetoric. but numbers on certain issues though, for him have gone down, there has been a lot of talk about obamacare, about issue of immigration. americans understand that he is a man of action. but we need to see him move past that. and i think that in this instance with north korea, really there is no stopping north korea at this point when it comes to development. ashley: no. >> we must act. the president understands. americans, at least plurality, are ready, if not actual majority, are ready, accept military action against north korea. we understand -- ashley: nothing else is working. >> that is correct.

we had a quarter of a century. we now know, issue that we see china acting, south korea, is still though trading in a certain way and dealing with money with north korea. that too needs to be dealt with. ashley: tammy, thank you very much. good stuff. turning to hurricane maria the long rebuilding process begins. listen to what former "dirty jobs" mike rowe says about the getting work done. >> my guess what the waters recede, real work begins, the short @age we talked about in the past will be accused in ways we can't imagine. ashley: quite a quite a prognosis there and he is absolutely right. join todd hitt from kiter capital, ceo. he is in studio. he is a construction guy. he talks about this. we will need a lot of workers, to rebuild not only puerto rico, still in houston and in florida. from what i understand, there is chronic shortage of labor in the

construction industry. is that right and why? >> there really is. it is an acute problem. it is something that right now the largest construction companies in this country are turning away hundreds of millions of dollars worth of work per company. ashley: because they don't have people -- >> can't fulfill. ashley: why? >> there is just not there. there is lack of mobility in our workforce. we talk quite often about liquidity in the marketplace for money. we have lack of liquidity in the workforce. they're not mobile, not moving from middle america. you can track it to public policy failures. much of it is public policy. ashley: like what? >> we have no wage growth in middle america. you guys produced it on the show. stats showing 18 years, not making not one dollar more. so they're stuck in middle america right now. there is no training programs. there is a lack of training programs in place right now. we need visionaries out there, from capitol hill laying out something like a g.i. bill, focuses on rebuilding middle

america. not the coasts, not the coasts, not people already financially upwardly mobile. we have got to rebuild the american dream. ashley: there are some jobs out there, good-paying jobs. they can't be filled. where kids in schools getting degrees gives them massive student debt weight around their neck when they get out. so you're an advocate i would man, vocational schools, technical schools, where people learn a trade? >> i really am. k-12, beyond that. ashley: that early? >> we need a program, has to be k-12. we need rebuild construction companies, new economy coming. by the way we'll lead the way of that. all types of technical advances coming in construction. automation. ashley: replacing people. >> digitizing the construction industry. we need real job training to focus on future economy that is coming. ashley: what kind of jobs are we talking about? >> we're talking about, when it comes to construction, sort of real estatevillement, all levels. from entry level jobs, where

you're hanging steel. handling information on site. all the way to managing a $450 million construction job. that is a very skilled construction worker, right? who has been trained, probably been top construction management schools but training in a construction company for a year at least to get to this point. ashley: somewhere midpoint, not bottom or top management, what kind of salary can you earn having skills in the labor industry? >> if you were at middle range, sort of 80 to 115. ashley: good money. >> really good money. one of the problems we have talking about mobility, ashley, talking about somebody stuck in middle america, they can't find a way out, might be upside down in the mortgage. they can't get to washington, d.c., boston, l.a. can't even find housing that matches it. we have a real problem with job matching in this country. we need to find ways, looking for job, particularly in

construction, trying to match it. no one to help you or career builder, monster.com. we need job matching. enter data, certifications, salary requirements everything you can do. technology can do this for us. technology can do this for us. ashley: hope somebody is listening. todd, thank you for being here. >> pleasure being here. ashley: good-paying jobs. can't fill them. happening right now, british prime minister theresa may talking about "brexit." says it will take two years for leaving process of eu for britain. during that time, britain will follow eu rolls to make appropriate payments. violence erupting yesterday as turkey's president erdogan giving a speech in new york. five people were detained. what is going on? we'll have more than that in moment. third night in a row jimmy kimmel medical going after senator bill cassidy for his

health reform bill. we'll ask katrina pierson, member of president trump's 2020 advisory board. she will weigh in on that. remember christian saucier. he convicted of taking photos in a nuke submarine. he is now on house arrest. we'll have him coming up. ♪ get between you and life's beautiful moments. flonase outperforms the #1 non-drowsy allergy pill. it helps block 6 key inflammatory substances that cause symptoms. pills block one and 6 is greater than 1. flonase changes everything. upeace of mind.s we had a power outage for five days total. we lost a lot of food. we actually filed a claim with usaa to replace that spoiled food. and we really appreciated that we're the webber family and we are usaa members for life.

ashley: hurricane maria still slamming the caribbean. fox news meteorologist janice dean. what is the latest. >> still category 3, 125 mile-an-hour sustained wind. i know, ashley, it is crazy. we're getting advisory at 11:00. turks & caicos feeling wrath of this storm. hurricane force wind, storm

surge, heavy rainfall, that will be on going for the next six to 10 hours. then the storm moves north and little westward, east of the bahamas. we'll have to watch and see. i think we'll be okay this weekend. east coast needs to pay close attention. florida, you will be okay. georgia, south carolina. as we get into wednesday, thursday, still monitoring it, this is the cone of uncertainty when we go further in time. not really sure if high pressure across the atlantic will get stronger, push the storm a little more towards the east coast. but my friend rick reichmuth is convinced it will not come close to the east coast. i would like to go to his vote but i will be a little more conservative here and say, we have to continue to monitor it. ashley: you do. hopefully follow jose right between bermuda. >> very possible. jose was off the coast, still is as a remnant low of the that is the potential too. we'll keep you posted. ashley: janice, always, thank you so much for all the hard work. back to politics, president

trump tweeting this this mo morning. rand paul, whoever votes against the hc bill, will be one that saved obama care. putting it on the line. katrina pierson, mem of president trump's advisory board. thanks for joining us. president trump pushing pressure on republicans to get this done. are they going to hear him? >> i think they are. in this tweet specifically, senator paul has been out there talking about the issues that he has with this bill. several people will go on the record and say this bill is not perfect, however, we do have a situation where a party has campaigned on the last six or seven years on doing something about obamacare and it's truly unfortunate we're even here having this discussion today considering as the president stated yesterday he is sitting at his desk waiting on a repeal and that didn't happen. so we definitely need to do something about this bill.

republicans are in charge. there is no excuse that they can't get this done. ashley: they have had seven years to get their act together, when the president sat down in the oval office he should have have been ready to go. it wasn't. here we are. he reached across the aisle to those democrats who really wants chuck and nancy hanging out at the white house. but he was forced to do that. is that a strategy waking the gop members up who were dragging their feet? >> absolutely. i think it is. you recall the president actually campaigned on reaching across the aisle and making deals because that is what he does. also i think it will be one thing, if he can get something done with the democrats, which is going to make republicans look even worse in this case, because ultimately, all of these individuals, ashley, they made those same promises to their own voters. so i'm not quite sure what the holdup is, because you don't really lose votes. ashley: right. >> keeping your campaign promises. ashley: that is a very good

point. now, katrina, this issue, late night host jimmy kimmel is slamming the graham-cassidy show on his show all week long. listen what he had to say last night. >> for donald trump it is not about the graham-cassidy bill, by getting rid of obamacare, which he hates primarily obama's name is on it. more important to phone senators, not gut american health care and turn backs on people -- ashley: yes to quote tammy bruce, that is rude and it is wrong. what is your response to that, katrina. >> i have to agree with tammy on this. those hollywood guys, not in the decision-making process, who have not put their hats in the ring to run for office to make their changes they believe should be made. however, i will say it is really unfortunate what happened with his child, that is where his passion comes from but at the end of the day we're talking about health care where the average person, unlike jimmy

kimmel, can't afford a 20,000-dollar deductible for their children to get health care. just because you have a health care card doesn't mean you can use it. that is the point that jimmy kimmel is missing. ashley: the fact he was against it had obama's name on it. it is a failed system that doesn't work. you know, doesn't play to the crowd as they say. >> absolutely. you have to be able to afford it. ashley: exactly. karina pierson, thanks for joining us. >> great to be here. ashley: the senate clears $1.5 trillion in the budget for tax cuts. and the head of the tax-writing committee is confident he will get tax reform done. i hope he is right. we'll ask the former head of the congressional budget office where this money will go. more "varney" after this. ♪ patients that i see

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liberty stands with you™. liberty mutual insurance. ashley: guess what? let's check the big board. we turned briefly turned positive on the dow. we're essentially flat now, not bad as seeing we started the session down about 35, 40 points. texas instruments shares touching over a 17-year high. why? after the company raised its dividend and buying ba back shares. texas instruments a name from the past in some respects, 87.50. now this, violence breaking out in new york city during a speech by turkey's president erdogan. officials say it all started when a protester shouted at the president, you are a terrorist. then it was off to the races. emac, give me details. liz: yesterday afternoon at the marriott hotel ballroom in times square, people were shouting out president erdogan, you are basically a war criminal. you committed, you and your

administration committed human rights abuses. protesters are sympathetic with the kurds. ashley: right. liz: they're saying he is hindering the fight against isis. he is destroying civilian lives. five were detained. no injuries and no arrests. this comes on heels last spring where there was major protest in washington, d.c. ashley: look at this fight. >> liz: erdogan's bodyguards were involved punching and slapping protesters including senior citizens. 15 bodyguards were issued arrest warrants. 19 in the brawl were indicted. ashley: if you criticize president erdogan, you will feel it right, tammy? >> a lot of people are wondering u.n. in general. north korea still allowed into the country. you have this guy coming into the country. people are wondering why are we allowing this? as liz noted we indicted these people. they're not in the country. they're back in turkey. president trump has defied erdogan by providing heavy

weaponry to the syrian kurds in that fight against isis which erdogan was trying to fight. some people wonder why we have the fights on american soil, people are allowed to leave the country, we're not arresting them? i think americans want to see this handled differently. ashley: quite shocking when you look at video. liz: disturbing. free speech week getting underway at uc berkeley sunday. is it really free? the university spending hundreds of thousands of dollars on security so apparently not. we'll ask lawrence jones, is this cost of free speech now on college campuses. president trump will be in a alabama for a rally in support of senator luther strange. the senator facing off against roy moore in a special election. coming up we'll talk to senator strange about the big event. close race. we'll be right back.

ashley: take a quick check what is going on in the markets. the dow briefly turned positive for about 20 minutes ago. just slightly lower. off at 22,350. not bad at all. look at big tech names t was a mixed bag earlier. still a mixed bag. facebook moving higher as is microsoft and alphabet. apple had issues with the new watch. perhaps of lack of enthusiasm for the iphone 8 which is available today. moving lower by $2. senate gop clearing $1.5 trillion in the budget for tax cuts. it sounds good or is it? congressman kevin brady, house ways and means committee on his thoughts on the gop's plan. roll tape. >> i'm convinced we can lower tax rates for every american, every taxpayer. while we're eliminating the special provisions that keep tax rates high on every american.

ashley: let's bring in doug holtz-eakin, president of the american action forum. it sounds good, doug. you worked for the cbo. what does 1.5 trillion actually mean? can we expect to see tax reform soon? to mr. brady's point can we see lowering of tax rates for everyone? >> this is an important step to the road to tax reform. any realistic assessment says tax reform will be passed with republican-only votes in the senate. to do that they need to pass the budget resolution. this $1.5 trillion figure is the target. you and i don't know what's in it yet. the members do. the plan to announce it next wednesday. i will look forward to seeing if it is really a plan that lowers tax rates on all americans, but most importantly, produces better economic growth, faster wage growth for americans. makes america the first choice

where businesses want to locate their plants. ashley: the democrats already said, look, we don't even know how the cbo scores this but those on the conservative sid say the cbo traditionally is not let's say very enthusiastic about the benefits of tax cuts and revenues it can generate. is that a fair criticism? >> i think that the key here is going to actually be the joint committee on taxation. it will in fact take a look at this bill and will in fact take into account the growth that it will create. the whole notion of dynamic scoring has become a conventional way of doing things for the jcp. i expect a vigorous dispute whether the effects are big enough or not. we'll see. truthfully there is 1.5 trillion in good tax cuts. there is 1.5 trillion in in ineffective tax cuts. the first step get a high-powered tax bill that when jill rate growth. ashley: staying on tax reform,

the senate is set to discuss health care monday. does health reform get in place and then bring the tax cuts? >> i don't think we'll see a close linkage between the health care and taxes anymore. there is some modest changes in the tax code in this bill that gets rid of the medical device tax. ashley: right. >> has some tweaks on health savings accounts but really they are now on separate tracks. the question is whether the senate can get something done on health care at all. ashley: so let's talk about the corporate tax rate because i continue to here, well, 15% is pie-in-the-sky. 20 or perhaps further north of 20 is more realistic. what are your thoughts on that? >> i think what we know, we have to change the corporate tax code. ashley: right. >> doing nothing is dangerous to america. we're losing companies. we're losing investment. getting from 35 to 25 would get us into the race. ashley: yeah. >> getting us below 25 would

make us generally competitive. i think it has to go there. past the rate, it is important to stop taxing earnings of u.s. corporations in far-flung countries. do like everyone else, what they do is tax them from here and leave earnings in other countries to the jurisdiction of those tax authorities. ashley: doug, we get tax details next wednesday. that makes interesting reading. doug we appreciate it. >> thank you. ashley: moving on to politics, uc berkeley shelling outhundred thousand dollars -- $300,000 to pay for security costs for its free speech week. how ironic. not so free. this is with the 100,000 spent on commentator ben shapiro's appearance. i'm sure we don't have to pay 600,000 for conservative commentator lawrence jones. great to see you on this friday. >> how are you doing, my friend? ashley: 600,000 for mr. shapiro,

300,000 for free speech week, what the heck is going on for college campuses? >> you would think universities would be a place where the professors would encourage free speech. even when you don't agree with the speech, that they would, you know, tell the student, this is the way where we have free conversation. we talk about things. but that is not the case. the professors now have an agenda and it is a liberal agenda and they choose to shut down the speech of conservative students, not promote more speech they disagree with. ashley: i would assume you're a conservative student at your university. were you free to speak your mind? >> well, we can speak our mind in texas because we have students on campus that can carry guns. so you know, we don't have that many people trying to be violent because they know that we have, you know second amendment to protect that first. ashley: very well. god bless texas as they say. another one for you, this one i still have to read three or four

times to believe. anyway, ohio state university hosting what it calls a privilege workshop, aims to teach white students how not to be racist. the university is trying to distance themselves saying it is not the position of ohio state university that only white people can be racist or is it the position of the university that white people can not be victims of racism. from chris davie, vice president of relations. that is what the workshop says, if you're white you can't victim of racism. >> they said in order to be racist, you have to be with power. your race has to have power to be truly racist. i don't know what is more offensive that they believe this is true, or, that they're saying that black folks are essentially powerless. so i don't know which part of the way of think something offensive. ashley: yeah, i think it is insulting all the way around.

>> yep. ashley: let's move on, move past college campus lunacy. talk about the president. i think he had a good couple weeks. i think his response to the storms, harvey and irma and now mask rea, i think he has shown great leadership. i also thought he was very strong at the united nation this is week. what are your thoughts? >> well the president did a great job with the storms. i talk about how, what he did for here in texas. we led the way, talked about the community coming together. but in the u.n., i mean i haven't seen such a powerful speech from a commander-in-chief in a while especially when it comes to the world stage, letting other nations know we're here to lead but you guys need to pay your fair share, as well as telling these countries that harbor terrorists, we will go after you. not only putting the little fat kid on notice, rocket boy. i really appreciate the

president having this boldness about him, letting world know we won't tolerate this iran, we hate the deal. we will be renegotiating it. we know exactly what you guys are doing. i thought it was a fabulous speech. kudos to the president. ashley: very quickly, look, approval ratings starting to rise a little bit, even though he called in the democrats in the white house to get something done, larry. >> i think it will, because i think the country wants unity, as well as, i would caution people because i believe it will go up even more after there is a poll from his speech in the u.n. ashley: right. >> so i think it will go up. i think it will go up just because the world and the nation wants to see a leader. i think he is doing it right now. ashley: i think others agree with you. lawrence, thanks so much for joining us. have a great friday and great weekend. we appreciate it. >> thank you, brother, see you really soon. mexico reeling from tuesday's earthquake.

officials confirmed all children are accounted for at the school that collapsed south of mexico city. liz: this really gripped the nation t became sort of parallel story, panoramic loss. all students were accounted for. a story went out there, 12-year-old girl freida, trapped under a table with her hand. turns out there is conflicting reports about that. that story may be false. authorities now saying that the students have been accounted for. 25 dead, 19 children, six adults. 11 have been sent to the hospital. the death tally unfortunately is rising. we're hearing again conflicting numbers there. more than 250, to 286 people now dead from that trembler that shook the nation, 7.1 magnitude hitting mexico. ashley: emac, appreciate the update. liz: sure. ashley: totally changing gears

now, yoko ono is suing a polish selling a lemonade called john lemon. her lawyers say it misuses and abuses the legacy of john lennon the company says it will change the name to o lemon. they want all the other bottles pulled from the shelf with john lemon. he was convicted of taking pictures from inside of a nuclear submarine but now he is under house arrest. we'll talk with kristian saucier where his case is now and whether he says he received unfair treatment. we'll be right back. ♪

liz: cvs will become the first national drugstore chain to restrict how many pain pills doctors can give patients. we asked dr. marc siegel last hour, what he thinks of that decision. roll tape. >> education of physicians, right physicians prescribing for the right reasons is where we also have to start. the reason that i really like this move by cvs something called exposure. the more opioids you get, the more likely you are to be addicted. the longer you get them, more

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ashley: let's check the big board. we're down 10 points.

we ever briefly went positive. we're talk in the same range for a while. the dow at 22,347 points. not bad. now to a story we're following very closely over the last year. a former navy sailor who was convicted and imprisoned for taking photos inside of a nuclear submarine has been released from prison. he is under house arrest. he is holding out for a presidential pardon. come in kristian saucier. he joins us now. you pleaded guilty, if i'm correct here to one count of unauthorized possession and retention of national defense information. you were sentenced to a year in prison. you have six months of house arrest. you paid $100 fine. you have 100 hours of community service. based on what you did, is that a fair sentence? >> well, first of all, let me say i take responsibility for what i did. i made a mistake when i was a young guy. i was 22 at the time. i took pictures because i was really proud of the job i did in

the military and i wanted to be able to remember it. no, i think the punishment meted out to me was extreme. i was willing to accept it. that is why i pled guilty. i didn't go to trial. i would take whatever punishment they had to give me. what is the issue the punishment is not doled out evenly across the board, people like hillary clinton, john podesta, huma abedin committed more egregious act. i admitted my mistake, the ones i took were lowest classified and information they handled was the highest. i got a year in prison. she was allowed to run for president. there didn't seem to be appear any punishment for what they did. ashley: you could have faced up to six years in prison, but your attorneys used to the clinton defense, they pointed that out, she had at least 110 highly

classified emails out there as opposed to your six photographs. in the sentencing the judge didn't really reference hillary clinton at all but do you think that had an impact when he came down with the final sentencing guide lines? >> i think a lost things played into it. i had a really good military record, 11 years of service. zero negative marks against me. you know, i'm not a bad person. my family and i are all patriots. it was very clear i think to the judge. my family served in the military since world war ii. unfortunately what was done to my family was just wrong. and i really hope and i was very hopeful during the presidential campaign that president trump saw that and would make right by it. you know, and there is still hope. you know, we have a petition out there on our website, hypocrisy saucier.com, you can sign a petition for the president, kind of review my case. i served my debt to society. i did my year.

that is why i to speak out. i paid the price. not that it will ever get me the year back where i lost with my wife and daughter but it will get me on the right path. unfortunately it happened. i can't take it back. but i want to be able to move on with my life. after serving two deployments to the middle east and 11 years in the military i think i should be able to get my good name back. that is most important. ashley: talking with us, with this conviction, what does that mean for you going forward with regard to employment or anything else? >> it has been an uphill battle. trying to apply for jobs, trying to get out there. i'm a felon. i have other than honorable discharge from the military as a result of that felony charge. it's a double entendre. it is difficult. i will move on. my family and i will be

contributing members of society again. i will do what i can. i'm extremely proud to be an american. we live in the best country in the world. luckily for us a lot of other people felt the same way and voted for president trump instead of hillary clinton. so, you know, i think we're getting on the right track as a country, and i am really hopeful and glad to be here. ashley: we followed your case every step of the way. thank you for joining us, kristian saucier, former u.s. navy sailor. thanks very much for talking to us today. we appreciate it. >> thank you, and thank you for having me on. ashley: move on to bad news for uber about. the company lost its license to operate in london. this is a big deal. liz: this is a real test of the ipo, 68 billion valuation. it could be stalled again. london is one of uber's premier markets. london officials say uber, you're breaking the rules. you're not doing criminal background checks of our drivers. not reporting offenses of your

drivers. there is rise in collisions, congestion. uber is fighting back wait a second, we'll contest this you're laying off 40,000 uber drivers. it will hurt uber customers in london. the mayor of london says this is a good thing. you pointed out black cabbies support this move. ashley: they can still operate while iting being appealed. not going into affect immediately. liz: black car cabbies is not a union. ashley: they're very strong, very good. they go through a lot of extensive training in order to get their license. that is why they're upset with uber. liz, thank you. liz: sure. ashley: fans lined up this morning for the release of the new iphone 8. i wasn't one of them and emac wasn't. will people be impressed with the new product? we'll go to the flagship store in new york city for details. ♪

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liz: apple's iphone 8 available today. this is video from outside of apple's flagship store here in new york city earlier this

morning. our very own deirdre bolton is live there now. deirdre, does anyone care about the iphone 8? what are you hearing? >> as you know, we have heard from all kind of people pretty tepid reviews. even our colleagues at "the wall street journal" have essentially said, if you have a 7, don't buy an 8. this is a pretty expensive product. they're not giving them away. they are stillhundred dollars, 699, 800, 799 for the plus and it is really not that much different from the 7. people say if you have a seven, wait for the 10. if you have a or of it -- a 5 or a 6 it may be worth the upgrade. tell but the numbers, 200 people are waiting here since 6:30 in the morning. even now, the story is open for three hours, there is still close to 100 people waiting in line. people are enthusiastic.

some people calling it the middle child, the 8 series or the limbo product. you have been covering this. it has shown up in the stock price, the stock lost in the past 10 days something about $50 billion worth of market value. so apple, just say the street cred on iphone sales weighing heavily for the release. liz: god, deirdre, i hope you didn't have to go out there at 6:00 in the morning. great to see you deirdre bolton. we have more coming up on "varney." don't touch that dial. we'll talk to an immigrant that came to the united states 30 years ago, he now owns three restaurants. why he is concerned about the daca debate and how it will affect his own workers. we'll be right back. don't go away.

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ashley: here we go. 11:00 a.m., 8:00 a.m. in california. good morning to you. here is what's new this hour. president trump heading to alabama later today, he will be attending a big rally to

campaign for senator luther strange who is in a very heated primary race for senate seat, senator luther strange will be joining us in varney & company in hour. al interesting north korea threatening to launch a hydrogen bomb into the pacific ocean this weekend. kim jong un calling president trump by the way, quote, deranged and says he will pay dearly. the markets, however, well, they don't seem too concern. up slightly this morning. the dow up 30 points at this hour, 22,329. so needless to say a jam packed hour ahead. the third hour of varney & company starts right now. ♪ >> the north korean regime does not respect its own citizens or

the sovereignty of other nations. our new executive order will cut off sources of revenue to cut off resource to develop nuclear weapons. ashley: now china telling central bank to stop doing business with regime and north korea as you can imagine, not happy. kim jong un released a statement slamming president trump's un speech, it roads quote from far making remarks of any persuasive power that can been viewed to be helpful, he made unprecedented and rude and nonsense one not heard from predecessors. a frightened dog barks louder. that's from kim jong un. president trump firing back on twitter. this morning saying, kim jong un of north korea who is obviously a madman who doesn't mind starving or killing people will be tested never before. he's talking tough and taking

action. interesting, this is what we have seen over the last several weeks. back and forth for several months. >> with the lawless regime in north korea. ashley: war of words no doubt but investors don't seem too concern, do they? check the big board and dow 30, quickly got into the positive be it slightly and now moving down again. now 25 points on the dow. let's bring scott in london. he's gotten a bit sour. he has the skepticism about him, we will change that on this friday and fox news anchor greg jared joining us. thank you for being here. scott, to you first, i don't know in the old days you start talking about testing h-bombs in the pacific, now so what, right? >> we have gotten way too used to it. there's been research that came

out recently, we've been in one of the quiet stock market periods in a very long time. i guess that's the only real worry here. not that we haven't gone down the 200. when we start to see the market do things that it doesn't normally do those are the times you raise the caution flag. yes, this is serious and in the old days you're right, and now we have seen it almost every weekend, you don't wanting to home because you're worried about what happened with north korea, but you still should be but there's so much money out there. folks have gotten too comfortable. behaviors have changed because of central banks and ultimately that's not going to be good. ashley: being come -- complasant says scott from london. telling banking institutions stop doing business with north korea. victory for the president but do we believe the chinese? >> that's the big question. their public statement about

this has to be encouraging to the administration because in a north korea depends heavily on china for a variety of services and goods, but the other thing here is this is the strongest set of sanctions yet. it implies all kind of trade with manufacturing, banking information, technology, fishing, you name it, any corporation or bank that is going to do business with pyongyang is going to pay dearly for it. ashley: aren't you amazed, gregg, that's there's still room for sanctions, till steps to be taken? gregg: absolutely. here is my worry yet of testing a hydrogen bomb in the pacific would have to go over japan. what if it malfunctions? you're talking about hundreds of millions, tens of millions of people depending on where it goes whose lives could be in

jeopardy. ashley: very good point. let's move on. facebook giving congress information on thousands of were called russian-bought ads. president trump reporting to the news this morning. the russia hoax continues. now ads on facebook. what about the totally biased and dishonest media in favor of crooked hillary, question mark. gregg, what's all this about, the social media forms are very powerful, are they not? we will find what fashion russians were buying ads but the believe that they had influence on the outcome of the election, i'm not sure i buy that. >> full disclosure i own facebook stock. facebook is between a hard and a rock place. they don't want to upset hundreds of millions of users by getting into the habit of disclosing information that would affect those users. on the other hand, this is a perfectly legitimate request by congress. ashley: right. >> i think facebook is probably doing the right thing to turn

this stuff over, but, you know, facebook and amazon and google better get ready for regulation because it's coming. right now they are largely unregulated. liz: robert mueller has looked at the ads, there's about 3 how- 3,000 or so ads that facebook is giving information to congress about. there's not a salesperson vetting these ads. it's automatically done. the question mark now is this, who put the ads up and what were the content of the ads, what exactly did the ads say. gregg: were they easily disguised. it's hard to know what was buying the ads. you put forth a dummy company. ashley: yeah, i think that's the issue here too. scott, what about facebook, what do you think about this stock now in long term? >> well, i think -- i'm not a big fan of facebook.

i'm on it, it's a great media thing for the things that we do but at the end of the day, i don't think it's going to affect the stock at all. again, there's a lot of folks out there that need to reach for return, there's fund managers that still need to get on board, people left behind from the recent rallies that we've just had. so it's going to be part of that that gets swept up but ultimately, you know, i agree it's a slippery slope. so we will wait and see how this shapes up. ashley: last one for you, household wealth jumped to $1.7 trillion in the second quarter, that was thanks to gregg jarrett household and scott shellady. >> yeah right. ashley: scott, you have been bearish of late and it seems to back up your reasons, there's a lot of household wealth being built but people are not parting

with it as perhaps they could be. >> well, two of the biggest parts of that is the stock market and your house, it's pretty hard to put the 401(k) in the back pocket as well as the house and walk to the mall and buy a pair of skinny jeans. number two, we have seen the medium incomes hit record level as well. it's benefiting the smallest part of -- of our population that it's ever been. the labor participation rate is still just only a slightly higher than it was at 40-year low in 2015. yeah, things are kind of good, they are okay, we have really put the bar low to get excited about some of the stuff when we need to see the labor force expand and need to see gdp go up. that's a meaningless figure unless you need to sell your house or cash in 401(k), other than that, it doesn't mean a lot. ashley: he's become grumpier. liz: it's england. ashley: very popular in the uk,

by the way. >> all of my jeans are tight. they have always been. [laughter] ashley: we will leave it right there, scott. gregg, before we move on, the handicap of meaningful tack reform by the end of the year? >> i give it a 50/50. i think it's possible. the chairman of the house ways and means was talking to neil cavuto, interesting interview, seems optimistic. they will be getting rid of a lot of deductions and that'll be the resistance specially state and local taxes as deduction. i don't think they'll ever get rid of mortgage deduction, so many people really depend on that. liz: democrats in new york and california handle that. ashley: thank you very much, gregg and scott in london, appreciate it. gregg is with us for the whole hour. we have locked door. president trump heading to

alabama, campaign for luther strange who is in primary heated race, luther strange joining us in varney&company. the texas state fair in dallas, putting up a giant statute called big tex. it's been greeting since 1952. of course, it's big. how big is the hat the equivalent of 95-gallon. everything is bigger in texas. we are back after this ♪ it's a highly contagious disease that can be really serious... especially for my precious new grandchild. it's whooping cough. every family member, including those around new babies, should talk to their doctor or pharmacist about getting vaccinated.

ashley: president trump is stumping for senator luther strange and earlier this morning he tweeted this, quote, will be in alabama tonight, luther strange has gained mightily

since my endorsement but will be very close. he loves alabama and so do i says the president and guess what, senator strange joins us now. senator strange, has the backing and endorsement of the president helped you? i know it's a tight race with your opponent roy moore, how are the good words of the president helping? >> you the president has helped us out tremendously and people are so excited about it. you know, the president carried alabama by a huge margin. people of alabama support his agenda and the fact that he's coming down here in the midst of the schedule he faces is really important to us and will make a huge difference in this race. ashley: now you're opponent roy moore has been critical of you being slow to support the president's call to eliminate senate rule requiring 60 votes for legislation to move forward. how would you respond to that?

>> well, the simple response is when i got to washington, i supported the filibuster rule for legislation because i thought it affected the rights of minorities and we republicans have been the minority more than the majority in the last 50 years but the experience i've had since then has taught me that we have go get rid of it. i saw the health care bill go down. that's why this election is so important. i believe the president's ability to pass his agenda will turn on this election because one obstructionist in the senate is virtually doom. that's why the stakes are so highlanders and that's why he's endorsed me. ashley: turning to health reform, obviously a big issue. take a look at what president trump tweeted this morning, rand paul will forever be known as senator who saved obamacare. are you a yes on the graham-cassidy bill? >> well, i support the president in that regard, yes, you know,

rand paul no coincidence has endorsed my opponent and he's the only senator who has ensuring that we don't get any progress on health care reform and people in alabama are suffering under obamacare and i love the idea, it's about the most conservative idea i can think of to send money back to the states because they know how in all 50 states to best spend money to address the issues. so i love the concept, we are working on the final details with the white house, again, in cooperative way to try to make sure we address any particular issues that affect alabama because my priority is protecting our citizens. but the concept is fantastic and i appreciate the president's leadership. ashley: i did note that steve bannon is urging conservatives to back your competitor roy moore, does that hurt you at all and how would you respond to that section of the go-party, the extreme right of the party? how would you respond to that? >> i think there's lots of

agendas going on involving mitch mcconnell and people that i just met, i'm newer to washington than the president is. i know they want to make this a proxy fight but what it's about who is best and suited enough to support the president and the president could have stayed out of the race and chosen my open oant for the matter but he picked me enthusiastically because he knows it is critical to the implementation of his agenda. i'm not part of the problem, i'm part of the solution and i look forward to the vote on tuesday. i think we will do very well and i think we will get something done in washington. ashley: your opponent has been critical of mitch mcconnell, leader of the senate, how would you rate mitch mcconnell right now? >> well, no one is more frustrated than i am of the lack of congress. i spent years as attorney general suing the obama administration and stopping the federal government in many areas. we were the last line of the defense. i'm disappointed that the leader

could get the majority to pass obamacare repeal, for example, but it wasn't all his fault when you have three republican senators refused to go along with the promises they had made to the american people. i don't know that you can lay the blame on that, on one person. but, listen, people are mad about it. i'm the maddest of all because i sat there and saw it after six years of listening. that's why the president and i have hit it off. we are about getting things done, conservative solutions, we are in the verge of doing that. ashley: all right, we are out of time. thank you, senator strange. big tuesday is the primary, good luck and thank you for talking to us. by the way fox business network will have live coverage of tonight's rally which begins with trish regan on the intelligence report. we reached out to senator strange's opponent roy moore to see if he would join us on the show to talk about issues, we have not yet heard back from him

but look forward to that opportunity to speak to mr. moore. check tiffany out, the jewelry people after downgraded, 84.54. hurricane maria passing turks and caicos islands. janice, she's the hardest working-person in weather center. she will be tracking maria's path. limited flighting are resuming to puerto rico but most of the island without power. florida keys receiving fresh barbecues meals by air lift. fedex began air-lifting meals. we will have more varney and maybe some barbecue next.

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2000, 14.50. nice move on russell 2000. quick check on oil. meeting in viena today, maybe expanding, so what the. up 18 cents. no big move in oil. gas prices, though, coming down again overnight. down 2.58 again. doesn't matter, stuart varney is laughing and smiling somewhere. now to hurricane maria, fox news meteorologist janice dean continues to follow maria, janice, what's the latest? janice: we got new advisory, still category 3 major hurricane, moving northwest at around 8 miles per hour and the turks and caicos taking a beating from hurricane forced winds as well as strong storm surge with this heavy rainfall in the region.

the storm will continue to move northwest ward and move north and will it curve northeast? that's the million dollar question. it looks like we are going to miss with badge i'm. i think florida you're all right. southeast coast, you're okay. as we get further out in time, things get sketchy. here is our big cone of uncertainty and that's because we don't quite know what's going to steer this storm. we are hoping that it takes the northeast curve but some of the computer models, okay, maybe this moves too close to northeast coastline which is something that i will monitor. i will be with you next week probably at this time. ashley: when does the hurricane season end? >> november 30th. ashley: plenty time for more. let's hope not. restaurant owner is concerned about how repeal of daca and changing immigration law will affect employees and business.

he's an immigrant that came 30 years ago and worked his way up as many colleagues did. the story next.

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ashley: let's take a look at the big board and the dow 30, 30 stocks on the left, about 50/50, perhaps more red than green. we are down 34 points. apple stock again down today and that's about accounting for 19 points to have dow's downward move. you can take that for what it's worth. 22,325, not particularly worried at this point by the rhetoric with north korea. we are now joined by john, as i said in the old days, we said this with scott shellady, the kind of rhetoric we have been hearing between the united states and north korea, that could hit the markets for 2-300 points, these days, ah. >> powers of evil successfully resolve this particular

situation. ashley: volatility index. in other words, rapid movement up or down. >> when that's slow that means that the market is fairly positive and bad news will be avoided. ashley: but those cynics will tell you because investors are too complaisant, be worried that the market is -- >> this is an extraordinary situation. high-risk-type situation. maybe the markets concluded that the parties involve realize the cost of getting this wrong, so extreme, so high that it is going to be resolved successfully. ashley: all right, we have been talking about all morning, i want your talks, household surging $1.4 trillion to record, people are not really spending -- >> it's not my money. it's not my savings account, not my stock portfolio.

one of the problems you have here is that it's an aggregate number and what it doesn't tell you is a lot of increases are being toward upper-income individuals. big chunk of u.s. population that showed no net wealth. in fact, they may be under water, but i will add that income growth is slow. wage and salary income -- 2 and a half percent. to get that at healthy pace it has to be 5 and a half to 6%. ashley: i would argue that's why it's so critical to get tax cuts through because that really puts extra money in people's pockets, everyone. >> that's precisely correct. it's tax cuts for the middle class. that perhaps matters more to the economy than a cut in the corporate income tax rate. gregg: what about ub certain any -- about uncertainty in the health care? >> for people that have preexisting conditions it matters but on average perhaps

not. maybe importance for small businesses but small businesses are more concerned about taxes being too high, they are also very troubled by the fact that a tax code is just so complicated. ashley: howdies appointing for the markets if we get tax reform but it's really watered down? is that factored or is that going to hurt the markets? >> i think the markets can handle that but they want to see, however, some tax relief for the average american so they can step up spending. ashley: corporate tax relief alone is not going to cut it? >> it's not going to do it. highly doubtful if you get corporate tax reform as currently proposed that you're suddenly going to get -- ashley: tax cuts across the board for that? >> exactly. gregg: if too many deductions are limited, what then? >> that's not going any place. the question is what happens to

deductions, state and local income taxes, right, that probably will not get done because the opposition in high-tax states will be so intense -- ashley: california, new york, illinois. >> even democrats are against it ashley: specially rich democrats in california. >> there are a lot of them. ashley: yes, there are. >> fiscal stimulus is basically an oxymoron. [laughter] ashley: a lot of people in the food industry are nervous about the future of daca. restaurant owners say many workers are affected and one of those owners joins us right now. you run three restaurants, is that right, sir, and here in manhattan? >> yeah, i do vera on 77 and second and new baby selena rosa,

that's also thriving and i'm doing something special with the earthquakes and what's going on in méxico. ashley: i want to talk about the immigration issue. you came here 30-plus years ago from albania? >> right. ashley: how? >> i did it right. i had to go through italy, paperwork that was done but, you know, i did it the right way and i would like everybody to do it the right way but if you already have the paperwork i don't think we should change the laws. to be honest with you, it's tough to get workers. ashley: you're concerned about daca, the dreamers, you're worried if the dreamers -- they don't have to go anywhere but you're worried that they will eventually not get the rights that they have now, is that it and that lessons the pool of potential employees for you? >> i mean, these are foreigners, i came here as foreigner and i worked hard. most of my workers are foreigners and they work hard, they want to build something,

maybe they want to help, their fellow countrymen in méxico which they really need a lot of help right now, but i'm very concerned. ashley: why you have lack of people that you can employ, is that the problem? you can't fill all of the positions you have? >> people they don't want the jobs as busboys, it's getting hard in the kitchen. i'm having a hard time putting guys over there. the foreigners don't mind. they want the opportunity. ashley: do you agree with the president's general stand on immigration come here legally as you did, i think the president doesn't particularly want to throw out the dreamers, he thinks think came here under no choice of their own, you would agree with that? >> absolutely. i think you should do things legally but at the same time congress and the president should strike a deal where these guys are here already. you should give them, make them legal, let them work because we need workers, we are short right now and i have spoken to other

restaurant owners and they feel the same way. we need to work with foreigners. ashley: when you hire people you ask for proper paperwork and you know people that don't have proper paperwork and have to turn them away? >> absolutely, i have to do things legally, i have been doing this for a long time but like i said, we need these people, i think the restaurant industry has more of these workers than any other industry in the united states that i can think of and, you know, people don't want to take the jobs and it's hard to work, but -- gregg: so when you hear they are stealing jobs that americans would otherwise take, you don't buy that? >> absolutely not. other people don't want these jobs. it's a lot of work, a lot of hours but these guys don't mind because they are coming from somewhere -- ashley: it's a first step in order to, you know, build up your job career and move on. let me quickly before you go,

what are you doing for méxico quake relief? i want to get that in. >> i'm getting 50 proceeds of the proceeds of selena rosa. i welcome everybody to come over there and support these people in the caribbeans and méxico, puerto rico is having a hard time also and just encouraging other new yorkers to support them in this time of need. ashley: very good. sammy, thank you very much for coming and sharing the story. three restaurants doing pretty well. >> anyone can do it it's just hard work, pays off. ashley: there you go. great place to finish. thank you very much. let's get back to puerto rico now. hurricane maria slamming the island leaves it without power maybe up to six months in some places at least that's what we are being told. harry appeared on the program before, the author of the book the sale of a lifetime and guess what, he also happens to live in puerto rico. he road out the storm there, he's on the phone with us now. harry, i guess were you in san juan and describe for us if you can what it was like to live through maria?

>> yeah, we tried to get out but could not get a flight out. we had to stick it out and a good thing we did. we literally physically for 12 to 14 hours held onto key doors and we were watching condos next to us. we know three friends directly out of many that got totally destroyed their houses. this is way worse than irma. this one hit 100% direct. i don't know how puerto rico can survive this because they've had huge financial problems, 120 billion in debt and now their infrastructures get totally destroyed and it's going to take four to six months to get power back. you can't function without power, we have had power half of the time and cable through most of this. our place would have flown if we wouldn't have physically held

windows and doors, my legs are so sore from that effort that i can't walk. this was the most severe thing i've ever seen. i invented a few new curse words. [laughter] ashley: we understand some areas of the island are still inaccessible so we don't know the full extent of the damage. it's going to be a long road to recovery when we are being told six months in some places to get the power back on. i mean, this is something i get the sense that puerto rico is going to be dealing with, not in months but probably years. >> yeah, you know, we really -- we moved here about 14 months ago. we may have to flee back to new york or tampa. i just don't know if this place can function out that long of a recovery site. we will have to see. i have one window hanging out on my condo. i am trying to hang around long enough to make sure that gets secured and i think i'm going to

have to get out of here. this is way worse and this was just a direct hit. it accelerated in the last few hours before it hit and much worse than originally built, and again, i don't see how puerto rico can function. i don't know what to expect. i think i'm going to have to get out of here in a few days and take many days to get a flight. ashley: right, thank you for taking time to speak with us. clearly we can hear how desperate, harry, thank you very much for speaking with us. we appreciate it. >> thank you. ashley: north korea threatening to launch a hydrogen bomb into the pacific ocean. kim jong un calling president trump deranged and says he will pay dearly, lieutenant oliver will join us next think your large cap equity fund

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nicole: i'm nicole petallides with your fox business brief. close look now at general dynamics after electric division received a very big deal. the electric subsidiary gets awarded a 5 billion-dollar contract to complete the design of the colombia, u.s. navy next

generation baa -- ballistic missile and the construction will begin in 2020 and it will take years and work in connecticut, rhode island, good news for the workers. a fleet of 12 and this follows a contract of nearly $2 billion. good news there for general dynamics which has been up 32% in the last year and has hit a life-time high recently. ♪

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(bell mnemonic) get e*trade and get invested >> north korea best not make any more threats to the united states. they will be met with fire and fury like the world has never seen. rocket man is on a suicide mission for himself and for his regime. the united states has great strength and patience but if it is forced to defend itself or its allies, we will have no choice but to totally destroy north korea. china, their central bank has told their other banks, that's a massive banking system, to immediately stop doing business with north korea. ashley: while in short a brief history of president trump's responses to north korea over the past couple of months.

now we are learning the u.s. and south korea have agreed to enhance joint defense around the country of south korea. let's bring in lieutenant colonel oliver north. colonel, pleasure to have you. before we get into china's response, the speech that you heard from president trump to the united nations, was that something that you have been waiting to hear from an american leader for quite some time? >> decades i would say. he not only made china blink. he made all those around the world doing business with north korea blink. it's not just banks, all companies doing business whatsoever with north korea from doing any business in the united states and i have been arguing for those kinds of sanctions for years not just north korea but iran. we are a long ways of making that happen with iran. think of what this means, the north koreans can't make heavy truck tires, high-tech batteries, radar components, computer hardware, electronic systems, sophisticated machine

tools, they have to import all of that and north korea cannot make things like high-performance rocket engines or heavy-duty mining equipment, even automobile shields, they can make ak-47's and artillery pieces but not led lightbulbs. all of that so-called equipment has to be made somewhere else and i think -- exported to north korea and they won't be able to export anymore because they can't get paid for it. a very positive development whether it actually makes them change their minds in pyongyang remains to be seen. ashley: that was my next question. if you paint kim jong un into an economic corner, he doesn't particularly act rationally, we don't believe so from this side of the world. how could this play out, is this enough to bring him to the negotiating table? i just don't feel he's that kind of leader and are we pushing him closer and closer to militarily doing something?

>> ashley, i'm a little concerned because i hear people in washington say that our goal is to get him to the negotiating table. well, we have been there many, many times with this man and his father and his grandfather and none of the negotiations have stopped the development of a nuclear weapon's program. the measures that the president is now taking certainly going to stop a lot of the cash and carry that's been going on with north korea for decades, but that's not going to affect him immediately. i don't mind pushing guys like this into a corner. we have the capacity to deal with whatever he's going to do. the bottom line of it is we want someone in pyongyang or perhaps beijing to make sure that the north korean peninsula, part of the peninsula does not develop nuclear weapons and ability to deliver them anywhere, not just here but all of our allies around the rest of the world and that really ought to be the primary interest of the government in beijing. look, the public bureau obviously is paying attention, that's why they band the banks

from doing business. the real skunk in the closet is tehran. restrictions will stop legitimate businesses from doing business with north korea, but they won't prevent the iatola, supreme leader in iran to continuing drop cash in pyongyang. think about this, we are the ones that showed them out. the obama administration showed him how to shrink-wrap tons of cash and ship it on pallets and send to pyongyang. ashley: we will have to leave it there. we are already out of time. great to have you on the show. thank you so much and, of course, be sure to catch war stories, that's tomorrow at 8:00 p.m. eastern right here on the fox business network. thank you oliver north. president trump talking taxes in his latest weekly address to the nation. he just released it and we are going to play some of that for you next don't let dust and allergens get between you

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ashley: president trump talking taxes in latest weekly address to the nation. listen to this. >> we have a once-in-a

generation opportunity to reform tax code and pave the way to unprecedented prosperity. by doing what we are doing, you will see results like you've never seen before. it will be the largest tax cut in our country's history. i'm asking members of both parties to come together to put aside partisan differences and to pass historic tax reform and tax cuts for the great citizens of our nation. ashley: well, sounds very encouraging, doesn't it gregg jarrett, do you believe him, is it going to happen? gregg: depends on how you measure it. look, every march and april is collectively america's great nightmare. the tax code is so complex and nobody can understand it, not even tax experts who pretend they do. so simplifying the tax code is a very appealing to americans but second of all, the obstacle will

be tax cuts that would include the wealthy. but the way you can do it is to -- i mean, they never pay the state rate because they use all deductions. what you do eliminate -- ashley: they don't get taxed on income, they get taxed on wealth, capital gain. gregg: that's right. another issue that will be huge whether capital gains will be at the low rate it is now or taxed as ordinary income. ashley: that would be a big change. gregg: a lot of ways to go to the equation. right now it's unbalanced and unfair. top 1% wage earners pay 40% of income. ashley: 50% don't pay any at all. gregg: you need a tax code that's fair and at the same time jump economic growth. i think the chairman of the ways

committee has put together a pretty good blueprint. ashley: can you get republicans an democrats to agree on this? he's barn-storming pushing hard. gregg: he works the phones. people don't realize that but he is forever twisting arms and working the phones trying to get a coalition together. he needs to get more credit for that because it's deserved. ashley: 70 now. my goodness, a lot of energy. hopefully it will pay off. tax details will get them next wednesday so we can really kind of look at it and see what's being proposed. gregg, thank you very much. more varney after this.

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ashley: we're almost out of time. looking at markets before we hand it over to neil cavuto. if you take away apple, and unitedhealth, those two stocks we're in the positive. not too bad. 22,336. neil cavuto. neil: trying to use the scottish accent. weren't you. ashley: we heard your scottish accent. neil: that's fine. ashley: i think i described it -- neil: couch the markets if not for apple, it is what is. neil: fine. are we down or not? thank you, ashley. ashley: you're welcome, neil. neil: what does leave? ashley: not soon enough. neil: thank you, my friend. we have a lot going on here. all eyes on north korea. what will it do? kim jong-un now calling donald trump mentally deranged. the president calling him a madman. in the middle