maria: great show today. go seize the day. here is stuart varney&company. stuart: president trump sells protection from rocket man. there's a headline for you. good morning, everyone. in south korea, our president spells out how much military power america has in the region and he will sell our allies billions of dollars worth of equipment to defend against north korea's kim jong un. , however, the president also said that there's diplomatic progress and he's been speaking in sobberred, measured terms. no bluster, very careful language. his next stop is china request his trip is described as trip

plus. the saudis are dealing dealing h rocket that flew over capital ryadh and they believe it was iran. act of war, saudis and iranians are on the brink. price of oil has gone straight up to two-year high. we are now at $57 a barrel. yes, there is trouble in the oil patch. look at this too, stocks still holding onto record levels, there's a story in the wall street journal, tax overhaul faces major hurdles despite that the market rally has not stopped, going up a little more today. the dow has set 57 records this calendar year and varney&company is about to begin. ♪ ♪ >> you know we sent three of the largest aircraft carriers in the world and they are right now

positioned. we have a nuclear submarine also positioned, we have many things happening that we hope, we hope, in fact, i will go a step further, we hope to god we never have to use. with that being said, i really believe that it makes sense for north korea to come to the table and to make a deal that's good for the people of north korea and the people of the world. stuart: strong words there from president trump on north korea. ashley is with me. hello, good morning. ashley: good morning. stuart: part of his plan is to sell allies in the region. ashley: they have the thaad system already deployed. made by lockheed martin. they also have the patriot

defense system which is made by raytheon, sm missile, south korea has eight batteries of those. there's concerns if there was an overwhelming attack whether these defense systems would actually be enough and therefore we could see more business coming from south korea and others in the area. of course,let not forget we have dynamics, defense companies that make all the parts and all those things that put this battery together. stuart: we are going to sell that stuff to the japanese. ashley: we are. stuart: billions of dollars. ashley: chinese aren't happy about it but, hey. stuart: liz, as i open the show there, the president was speaking in sober, measured terms, is that accurate? liz: he is essentially saying no more will we negotiate through position of fear or position of weakness or desperation, not talking about a pivot to asia, he's talking about reagan's

version of peace through strength. he's calling on russia and china to dpland end of nuclear program. he's leaning heavily to diplomatic solution. north korea, come to the bargaining table not through own unprecedented might. stuart: going down well so far. got it. let's go to tax reform. sausage-making process begins in capitol hill. douglas with the american action forum. doug, you met with senate majority leader mitch mcconnell, please spell out for us what changes the senate may make to the house plan, if you know them, one at a time, please. >> well, i don't know that, stuart, i know that they have set a very ambitious schedule for getting this done. the conversation was largely about that. the house going head with its mark-up yesterday, hope to go move that bill out of committee this week, oh hoping to move it

out next week, the senate will get immediately after gets in senate committee. we will see what changes come to mind. stuart: look, you have seen this from the inside, do you expect a rapid movement towards the end game which is a tax deal? >> i do expect rapid movement. i do think the process has gone just as about as well anyone can expect up to this point. we have essentially the beginnings of a very strong progrowth reform and the key thing is whether people want to stay with the current tax system or struggling economy or go to a tax reform and a more vibrant economy. it's about getting the kinds of incentives we need for investing in the u.s., innovating in trust, hiring people here and paying them better. stuart: look, the 1%, i don't mean to single them out, a lot

of them are going to be paying a lot more, not a lot less. the way this thing works out, that's the way it is. they pay more. you're not going to stimulate the economy much with these individual tax deductions. you won't get the growth from that part of the plan, what say you to that? >> i think the key for the growth really are the business provisions, the corporate reforms, the pass-through business, the changes to the investments, expensing in both cases, there was a decision made by the white house, i think, primarily to keep the top rate at 39.6. having done that i don't really see the virtues of raising the marginal rate by 6 percentage points. so there's some things in there that really aren't progrowth, could be fine-tuned, that's, of course, the process they are in. stuart: thanks for being with us this morning. >> thank you. stuart: lizzie -- liz: john cornyn is saying they

will start from scratch. they are saying in the senate it could stay at 1 million and not be cut to 500,000 for new home sale. it could still stay mortgage reduction. house tax bill may likely change once it hits the senate. ashley: i feel like it's a republican business tax bill and the democrat individual tax bill. stuart: you took that line from me? ashley: did i? stuart: you were here yesterday. [laughter] stuart: what you're looking at on the left-hand side to radio viewers, listeners, i should say, dow up 10 points up, fractionally lower s&p 50 and nasdaq but we are close to record territory. now look at this, oil two-year high. we have reached $57 a barrel. why? look no further than the events in saudi arabia. the missile that flew over

riyadh really struck a never. saudis say iran is behind it and they call it act of war. oil 57 bucks, that's why gasoline keeps on going up. 2.53, national average, it keeps on going up as oil rises. okay. to the texas church shooting, the air force admitting it did not file paperwork on the killer's court marshal conviction for domestic assault, that could have prevented him buying the gun that is he used to kill 26 people. let's see about that. judge napolitano is with us now. could it have meant that he could not buy those guns? >> here is the law in texas, if you buy a gun from wal-mart, wal-mart has to access the federal government's database which they can do in about two or three minutes. if you buy a gun you your neighbor or your uncle or nephew or a friend, there is no obligation to consult the database, so it's just as easy to get a rifle without consulting the database as with

and with the database itself is ambiguously, the air force did make a mistake but one of the questions the database asks, were you ever dishonorably discharged from the military, answer yes or no. what is a bad conduct discharge, it's not honorable or not dishonorable, so the preparers of the document which inputs the information into the computer did not use the language, the same language that the military uses and a truthful answer can be an ambiguous answer stated differently. he would not have been able to buy that weapon if the air force had done it's job but could have got tennessee weapon anyway because of the ease with which weapons can be gotten in texas. no permit is required to purchase a rifle and no permit required to carry a rifle. stuart: i want to break away from this immediate discussion at the church shooting for a second. there's a rise -- if i say

rising tide of guns in america, that's not what i'm trying to say, there are more and more guns in america. do you as a libertarian approve of this, do you find this okay? >> you know, we live in a free society and one of the freedoms we have that the government is restrained from interfering, this is not me, it's the supreme court, is the right to self-defense and self-means to use the same means that the government uses, so technologyically sophisticated weapons, we are not talking about muskets which was in existence at the time of the second amendment. every time we have mass killings with gun, they all have the same ending, exactly the same ending, they stop when the killer is killed. shouldn't the killer be killed sooner rather than later and if sooner that probably means by civilians who know how to use their weapons because the police who risk their lives 24/7 simply can't be everywhere, we can't have a cop at every concert, we

can't have a cop at every school, we can't have a cop in every church nor would we want one. stuart: how would you feel personally, not politically or constitutionally, you personally, if you were walk the ground in whichever hometown you live and people walked with 45 colt strapped over shoulder, do you like that? >> safe. stuart: yeah. >> a monster would know there are no fish in the barrel in this community. stuart: okay. i had to ask. i think that's a question that should be asked -- >> by the way, that's a great question, it is utterly em pa -- empathetical. stuart: never saw it in my life. >> in a classroom as hypothetical, people would be scratching their heads. stuart: i didn't see the first gun till i arrived in america. ashley: never. stuart: we are both americans.

>> the reason we won the war was because our guns were longer than the king's, we should shoot further. [laughter] stuart: check out the market, we are virtually dead flat, please, up 7 for the dow, down a half point for s&p, dead flat. let's call it that. a new development in james comey's investigation of clinton, hillary that is, new memos show comey softened his language in a statement about closing the investigation. he changed grossly negligent to become extremely careless. there's a big difference. we will try to explain it for you. a possible flu shot breakthrough, a single dose flu shot, you are protected for the rest of your life. california governor speaking tat vatican, he says the world niece to be brainwashed that the world

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stuart: billionaire activist lost seats on board of adp. he lost, he doesn't get his directors on the board, adp, by the way, makes payroll software. software, most companies use them. right back to tax reform, please, focused on small business. our guest this morning karen carrigan with small business and entrepreneurship council. i know you like this plan for small business tax cut, do you like it? >> the big picture is gross and the economy and state of the economy, the weak economy has really been a thorn in the side of business owners. stuart: hold on a second, we've had folks on the program who

say, wait a minute, the plan for small businesses, 25% on pass-through accounts, a is complicated, hard to understand, 70-30 you spend time on the job and hard to qualify for and, b, a lot of business owners, pass-through people don't meet the threshold, they are there already, what do you say? >> again, the big picture is on gross business which is great and some of the individual issues that you talk about means certainly are challenges, i think they are resolvable. as a business organization, we would like to see the value of that lower rate, the lower 25% rate be available to all businesses, all sectors and we do think this issue is resolvable both in terms of maybe the ratio, having equities there or perhaps having to test circumstances and test rules allow for more business owners to have that business income,

get that 25% rate. so this is a process. i think the good news is that the chairman is open to listening to all of our ideas. stuart: why shouldn't i or anybody else who pays tacks from a big corporation, we earn our income from a big corporation, we get our paychecks, why shouldn't a lot of people just become pass-through people, subchapter s people -- i don't know the exact technical term. i'm an independent contractor, i'm a small business, so pay me accordingly and let me get tax accordingly, why can't i do that? >> well, i think the whole purpose -- are you saying that if you're a big company why not become a small business? i'm not quite getting the question here. stuart: i'm getting very confused myself and i'm sorry about that. >> that's okay. stuart: why shouldn't somebody who works for x, y, z

corporation, okay, i will still work for x, y, z, from now you will consider me small business, i'm becoming a subchapter s, why can't do i that? >> because incompetent contractor rules that are on the books will probably disallow that, number one. and i think you might be referring to individuals that might make certain wages and high wages that they could put potentially gain the system and get 25% rate as opposed to maybe paying a higher rate. that's what the pass-through rules are for. is making sure that they are there, guardrails to ensure that wage income is not classified as business income to get this 25% rate. stuart: so this tax deal gets your organization's vote, got it. karen, i'm terribly sorry to rush through this and i'm sorry i asked a long an convoluted question. >> that's okay. stuart: i do apologize.

the gist of it is you like the tax plan. >> we like the tax plan. it's a process and we are getting there. stuart: sounds good to me. karen, thanks for joining us. i really messed that up. liz: i enjoyed it. stuart: the clinton team firing back at donna brazile, hillary's former campaign manager robbie says brazile got it all wrong in the new book and the clinton campaign saved the dnc. that's what robbie says, you will hear it all after this

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stuart: it goes on and on, doesn't it? more fallout from donna brazile's tell-all book and claiming that it was a boy's club and issues with campaign manager mook, here is how mook responded. roll tape. >> allegations that aren't true and actually the arrangement in question has been released, it's out in the public, everybody can see it. honestly, what's disturb to go me about this is hillary clinton stepped up and literally saved the dnc. stuart: hillary saved the dnc. liz: that's not quite right. dnc was bankrupt. a clinton takeover of the dnc and donna brazile points out it

was unethical and seize operations and rigged the primaries. the clinton campaign did not reach out and hit and get and grab the heart and soul of the voters that used the computer robots, it was data driven that was robbie mook's baby, he did that. they came off as cold, out of touch. for voters it was organ rejection. stuart: organ rejection. [laughter] liz: yes, donna brazile says there was no enthusiasm even among note voters. there's a reason for that. they were out of touch. ashley: a year now front the election talking about how hillary blew it. you can't fake sincerity. you can go through all the internal things that went wrong but they lost. come on. stuart: it will be up but not by

much. maybe a 15-point gain for the dow industrials, fractionally up for the s&p. bottom line, we had 57 records for the calendar year and we are still at that level. back in a second. 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

stuart: i will repeat myself one more time. 57 records for the dow industrial just this calendar year 2017. in three seconds we are going to open up this market and we will be right at record levels all over again. here we go. i see some green on the other side of the screen. yes, i do see green and i see the dow moving up to 21, 22 points. a fraction higher. not much. how about the nasdaq, technology people, where is that indicater? that is all -- well, it's down .02%. i'm still right, it's still dead flat. here is the story, oil a two-year high reaching $57 per barrel. how about that? we are going get into that a little bit more in just a moment. according to paradise papers, apple found a new tax heaven after the u.s. senate and the

european union with tax crack-down. more of that in a moment. apple opening fractionally lower. how about defense stocks? president trump was to beef up defense specificall south korea and japan, they are going to be ying a whole lot of defense technology and t defense stocks with the exceptionf general dynamics are all opening higher yet again this tuesday morning. who is with me? [laughter] >> always. stuart: elizabeth mcdonald, scott shellady and mike murphy. i don't think where you are. you are an oil guy. we've got this missile that was launched over riyadh, saudi capital. this is a big deal. looks like the price of oil is going up, what do you say, scott? >> yeah, i agree. it's going to be supportive for the price of oil in short-term. let's remember, this is a geopolitical risk, that's what the market is reacting on. you

go back to supply and demand there's still a lot of supply out there and when the market goes back to fundamentals you will see oil trade heavy, a big percentage move, $57 a barrel. oil is still cheap. so in the short-term, it's going to be volatile but long-term i think it passes. stuart: scott, you cannot throw cold water over my premise all the way over there from london for heaven's sake. i'm saying that saudis and iranians on the brink of war, very serious situation, what do you say? 20 more seconds. [laughter] >> yeah, it's a very serious situation, so is brexit and the germans preparing for the break-up of the eu and north korea and their military and all the nuclear war heads and war that you talk about out there. there's a ton of risk, there's no fear left in the market. there's no fear, it'll pass. stuart: okay, i will take your point. you're right, shellady. mike: if you see money moving out of winning sector,

technologies and financials as it did yesterday which is has been underperforming, down 1% still, that could be a big move for the market. stuart: okay. i want to talk about -- >> good point. stuart: i heard that shellady. i can see you too. north korea, president trump wants the south koreans and the japanese to beef up defenses against north korean missiles and they are likely to buy a whole bunch of american missile technology like boeing, like raytheon, for example, you like the stocks, mike murphy? >> i think we are not get get away from that any time soon. the one that i look most closely would be lockheed martin, the broadest range and that's the one i would be looking at. i do not own it. stuart: amazon on the left-hand-side of your screen. that is an all-time record high for amazon. up again this morning. now, then, let's suppose -- what

are you laughing at? mike: i'm looking for the balloons. ashley: we don't have a budget. stuart: 24,000 for the dow industrials. i want to deposit this question, let's suppose that we do not get a tax cut passed through the senate, we do not get a tax cut early this next year, does this rally hold, murphy? >> this tax is far from guarantied to be done. it's already just on the republican side they are fighting about it. the democrats haven't even really weighed in yet. the market is up here at the levels based on earnings. stuart, if we go back to march or april, we would be in november and still not have a tax cut on the table, you would tell me the market would be way lower, never think it would be all-time high where it's trading. that tells you fundamental supporting here and not just tax cut. >> if we don't get a tax deal, we still keep the stock market reasonably close to where it is

now? ashley: earnings, the economy. liz: global economy. bank of america say that is too. stuart: dow industrials gained 23 points. dow, s&p, nasdaq, all of them have hit all-time record highs this tuesday morning. liz: wow. stuart: individual storks, let's go through them, priceline, a weak outlook from that company, show it to me, please, because i guaranty that thing is done. you give a weak outlook and i guaranty it's down. whoa, am i right or am i right? $169 down. go ahead, shellady. what did you say? >> look, you want to take public money, you have going to have to take public scrutiny. like the public corporations, they maybe have a new sweet directorship called manager of expectations, they need to do a better job of that and they won't have the problems. stuart: look at trip adviser, they did the same thing. it's not so bright, down it

goes, 14% on trip adviser. mike: big story here, the companies disrupted the travel industry and now they are getting disrupted themselves -- liz: by google. the internet. the platform. mike: i think you have to be careful you don't keep innovating, technology will catch up with you. stuart: i have a connection in the hotel industry and, boy, they hate the travel organizations because they take a piece of the money. ashley: they do. stuart: crack website, it posted a profit and revenue up more than 20%. the stock gains 9 cents. 17.24. higher costs to avis, ridge car company, they lowered their sales outlook, look at them go down again. you looked at the future and you say it's not georgia to be so rosy, down goes the stock, in this case nearly 7%. sales force teaming -- forming, i should say, a cloud-computing partnership with google, market likes that, it's up a buck, strong profits.

weight-watchers and the share price has hit all-time high this morning it's up 11% on weight watchers. then we have red robin, burger chain, good one too, lowered outlook for the rest of the year and the thing is down 23%. what do you say? mike: we talked about this a lot on the show, the companies that are delivering, that are performing are getting rewarded and you see the stocks moving higher. the companies that are missing and aren't keeping up with expectation are getting slaughtered. stuart: that's so true this morning. what did you say? [laughter] liz: no buzzard for me. stuart: you're allowed to do that. jargon. report that is disney held talks to by 21st century media

properties. liz: fox business, this is the media landscape changing rapidly. three years ago fox was talking about buying time warner in three years, turn it around after discovery pay for scripts, $90 a share, mostly cash, people are standing back and saying, wait a second, this is a about internet streaming and the content coming up. murdoch family is saying, it's about live news, live sports, the media companies are not going to be extract the same fees from the cable guys and so they are going where the puck is going and disney is looking at the franchisee, like planet of the apes and xmen series. this was a deal that didn't go through. this is a future of media we are looking at right now. stuart: same question to scott

shellady and mike murphy, if i want to make money in the rapidly changing media scene, which company stock do i buy? murphy, first. >> disney. disney is going to have own streaming service to compete with netflix. talk with buying netflix. disney is going to go up against them. they have the content to compete. stuart: does your outfit own it? you do not own it. liz: it's about stripping out duplicative sales, cost savings and not about syndicated content. it's going to be about live. stuart: scott shellady, same question to you f i want to make money in the rapidly-changing media scene, which company stock do i buy? >> i'm not ready to get off the netflix horse just yet. i listen today one of the initial angel investors in netflix say why he's saying with the stock and at tend of the

day, it's still seems to me that the customer base is so huge and untapped for netflix, i still think they have a way to go. ashley: he's on record. stuart: tuesday november 7th and scott shellady likes netflix under 2 bucks a share. okay, scott. we hear you. [laughter] stuart: 9:40 eastern time, we have been on the air ten minutes, the market opened, i have to say good-bye to mike murphy and scott shellady. check the big board. gone up a little bit more. we are up 34 points, 23,582, next milestone 23,600, we are very close. question, would you pay $1,000 for tin can. tiffany thinks somebody will. coming up next, nyu business professor scott galloway is one of amazon's critics. if amazon is getting too big and

you think they should be reined in, how do you rein in amazon where the stock hit an all-time record high. back in a second? ♪ ♪ i can do more to lower my a1c. because my body can still make its own insulin. and i take trulicity once a week to activate my body to release it, like it's supposed to. trulicity is not insulin. it comes in a once-weekly, truly easy-to-use pen. the pen where you don't have to see or handle a needle.

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ask your doctor if once-weekly trulicity is right for you. ♪ ♪ stuart: little bit higher. we are now up 34 points, 23,583. 16 points from 23,600. we are watching. microsoft debuts consul today. i hear it's good. the stock is up. i own a little bit of it, tell me the story, nicole. nicole: yes, we are know you are a shareholder. this is about the new x box 1. it's $499. a crowded field of sony police

station and nintendo switch but what's interesting about this one is they are saying that it's the most powerful consul in the world, that's what microsoft is boasting that they'll bring on one of the hottest games of the year and they are trying to get a piece of the 33 billion-dollar market. so we will see how they fair. i will tell you secretly that my son have x box one in the living room and bedroom so they can play each other and other people. that's crazy, it's what they do. stuart: it's what they do. thanks, nicole. would you pay a a thousand dollars for a tin can? liz: you don't want this for christmas? stuart: no. liz: this is art to them. new everyday object's line. you can spend $450 on a silver ruler, 350 bucks for drinking straw made out of silver,

refresh of product lines, bringing guy -- stuart: the stock is up 4 cents. did we do commercial for tiffany's? next time we will charge them. the stock price of amazon just hit an all-time high. 1128. that's the all-time record high. but this company is under intense cruttism for being much too big and much too powerful. we have with us this morning the author of this book, the four, the hidden dna of amazon, apple, facebook and google. the author is the principal critic of amazon. scott, socialist but we will have him on the show, how are you? [laughter] >> i'm doing great. i didn't know that i'm the principal critic. you overestimated me. stuart: you are now.

you want to rein amazon in. how would you do it? >> a we have a company that can change the value of 10 to 30%. that's dangers because a component of robust market is that no one company can control the market, i believe if i were advising amazon and i'm not i would spend aws, amazon shareholders would win, i think the two things would be worth more to amazon shareholders and would force amazon retail to operate not as such a loss. stuart: that would be amazon's choice. it would be their choice. >> yeah. stuart: i'm talking about external outside pressure which would have a go at amazon and make them change, forcibly make them change. you know how you would do that, do you?

>> if it and where it happens is europe. in united states we register a lot from tech stock. stuart: that is right? really? >> now far and away is amazon. stuart: how do you feel about that? >> i feel great. they create jobs for my kids. i own amazon stock and i'm a prime member. a company that can operate in different set of rules because the marketplace keeps bidding stock up despite the fact that they show no profit. you are european, analogy, germans had better tank, but the allies 38 gallons of gasoline. liz: they said that about ibm in era and microsoft blew them up.

>> when they are saying it's too powerful -- [laughter] liz: why spin off money to the cloud? >> they might because i think -- stuart: wait a second. i have to get to the point. how would you rein them in? they are not going to do it themselves. >> i'm not sure i agree with that but there's the european regulators backbones are stiffening. stuart: tax them out of existence? >> fines. stuart: for what? ashley: anticompetition. that's the favorite one. stuart: so you think the attack from amazon will come from europeans. >> the war against big tech will break in continental europe. no university buildings or hospital wings are named after facebook and amazon billionaires, a fraction of the upside but a lot of the downside in terms of anticompetitive or job destruction which is going to stiffen the backbone of

e-regulators. you will see the guys get hit hard in europe. stuart: okay. even though you are a socialist, academic to boot, you are welcome to come back on this program. >> i appreciate that, thanks very much. what a thrill. [laughter] stuart: sarcasm is allow -- thanks very much. >> thank you. stuart: check the market. look at this. we are up 42 points. plenty of green left-hand side. now, if you watched this program you'll know this about me. i don't get flu shots but what about a flu shot that lasts for live. dr. mark siegal next no. yep. did it help? it completely ruined my game. well, the truth is, that advice was never meant for you.

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stuart: by the way, we just hit 23,600. that's worthy of note. now, most people -- i don't get flu shots. however, new development here that maybe a flu shot coming down the pike at us, where you take one and last it is rest of your life. dr. mark siegal is here. point number one, is that accurate, is there such a thing coming out a single flu shot for life? >> it's not there yet. university of nebraska, great publication, nih grant.

works in mice but not in humans yet. flu is changing all of the time, the fuel molecule changes. every year we are shooting at a target that's affecting people in south america or asia, we say will that be for strain here. we only end up with 40 to 60% success rate. we have to take a shot every year, you don't take it, you should take it because 40 million people get sick. stuart: wait a second. i'm not going to take a shot which has 40 to 50% rate. >> you should. stuart: if you offer me one flu shot that will last the rest of my life, i might think about it. >> this is going to happen. very exciting research. this is looking tat flu molecule that goes all the way back in time, it's genetic and historical, looks at the four most important genes,

predominant strains, ancient flu strains. it looks like it would give you a life-time immunity. i like it. they have been working on this for years. stuart: if you get it, you can administer it to me. >> on the air? stuart: i won't show it going in mumps, old-fashion disease making comeback, what happened? >> 6,000 cases the most in a decade. arkansas had a big outbreak, you know why, you get the shot when you're 9 month's old, booster before you go to school, it wears off in about 10% of cases, i encourage anybody that's a travel the other get checked, easy blood test to do. if you get the mmr vaccine, chickenpox as well, part of it can wear off. whole pa vaccine

may work. the chickenpox may work. you get a booster, no big deal. i will even offer you one. ashley: on air. [laughter] stuart: he wants to take the fee for doing it. [laughter] stuart: i know. >> you had the two shots, you're probably not going to get the problem, for young people, young males it's a risk of fertility problems. you really want to make sure you're inacculated. >> i'm not having children. stuart: thank you very much, doctor, we appreciate your presence this morning. dear lord. [laughter] stuart: way to say serious stuff, saudi arabia arrest princes and billionaires, missiles launched over capital, oil two-year high, the threat of war in the middle east is very real, it's saudi arabia versus iran. my take on that next.

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stuart: saudi arabia arrests princes and billionaire business people and freezes their bank accounts. a missile flies over the capital, riyadh. the saudi foreign minister declares that is an act of war. the price of oil goes to a two--year high. what is going on? one word answer? iran. why should we care. the mid-east is on edge of war and whole world feels impact. saudi arabia versus iran. at this point we have to bring up the role of president obama. he bent over backward to accommodate iran. he withdrew our forces from iraq and iran moved in. he pushed the nuke deal that gave iranians a ton of cash and end of sanctions and they will get a many bottom. iran advanced. president obama retreated.

saudis israelis president trauma all have to deal with the obama hangover. this is serious stuff that missile flew over riyadh, highly provocative. the next one could be easily aimed at saudi arabian oil fields. you know what that means. oil goes straight up. gas prices too. it would really hurt your money. as the saudi foreign minister says, iran can not lob missiles and expect us not to take steps. they're on the brink. north korea's "rocket man," obamacare's chaotic unraveling and now iran. one more obama mess that president trump has to deal with. the second hour of "varney & company" is about to begin. ♪ it is worth checking that market, 31 minutes into the session, we're up 50 points,

right on the cusp, there you have it, 23,600. the price of oil we just said at a two-year high, $57 a barrel. lots of all-time highs today. the dow, the s&p, the nasdaq, alongwith, apple, and amazon. both those two stocks, right at, right-hand side there, brand new all-time highs. going the other way, priceline. they made the mistake of putting out a weak forecast for the future, priceline is way, way down. nearly 10% lower. that is, by the way, $187 down. trip advisor, very much the same story. they give a weak forecast for the future, they're chopped off at the knee, down 17%. tapestry, the new name of coach by the way, kate spade and stuart weitzman, all under that tapestry rubric, sales were hit by inventor issues and

hurricanes. that has not affected the stock. the stock is up a buck at 42. i want to get to taxes the principle story of the last couple months. our fox news capitol hill insider chad per gram, says, tax reform will pass if they particular republican lawmakers from new york state say yes here they are. claudia tenney, elise stefanik and john. here is claudia tenney. you're lady of hour. if you say yes to the tax plan as it now is, some people, republican voters in your district will end up paying more. so would you vote for this tax plan as it now is? >> i'm still a lean yes. as i said, we're continuing to fight to minimize the impact of state and local tax deduction which is something is that we've been fighting for as

new yorkers. the president as you know, keeping highest rate of 39 1/2%. wealthier will get taxed even more. stay at president obama's rate. so all those crying chuck and crony king cuomo keep screaming and the fact they keep screaming makes me even want to lean more yes. they have done press conferences saying she should vote no. is this really about hurting millionaires or billionaires, or helping them? they're screaming, on one hand, crying chuck is screaming about helping millionaires and billionaires, how we will make them in a better position but actually when you look at it, they're probably going to get hurt in new york some that is the question. where, middle class is clearly getting a cut, especially in my district. i can't speak for the long island district or new york city. i really think these guys are in a bind. their demagoguery and duplicity, hypocrisy showing full circle, exactly what is wrong with

new york. we tax our taxpayers too much. that is the problem. stuart: hold on a second. now your big point here is that if you get rid of the deduction for state and local income taxes, wealthier people really get hurt, including some of your constituents. you are one of those who negotiated that we keep the deduction for property taxes up to the value of $10,000. do you think that you can negotiate further? is the more leeway for change here on issue of getting rid of entire deduction for income taxes? is there any room for negotiation? >> we're trying to get, we don't know if there is any room for negotiation on the income tax side. obviously i'm not going to quit until the end. i would like to see a cap higher. there is a 10,000-dollar cap put in place for the property tax deduction. congressman mack art sure proposed 12 five. i think we can go higher. unfortunately because of tax-and-spend liberals in

albany, like governor cuomo, assembly democrats raised our taxes to one of the highest taxed stations forced unfunded mandates of my little district in upstate new york, we pay some highest property taxes based on value in the nation, all of my counties are in the top 36 highest paid property taxes in the nation. it is their fault. reduce taxes, respect taxpayers, reduce. that being said i will continue to fight my taxpayers. because of high taxes, some of this is going to affect higher middle income taxpayers. higher middle income taxpayers. we want to protect them. those that are small business will get help. they will see the tax go down. estate is being repealed. a lot of really food things about this tax -- good things about that tax plan that will encourage growth. stuart: i want to leave it like this. you're leaning yes but you're trying to negotiate a little bit better deal for the middle class people in your district, that is

where you are? >> that is right. stuart: if you make no change at all, you would vote yes -- >> i'm leaning yes. i will not give up to the bitter end, stuart. what did i problem is you? we're going to have tax reform by the end of this year. remember, coming on first week in january, coming back on your show to celebrate tax reform, right? stuart: yes, you are. okay. >> thank you. stuart: we'll hold you to it. >> thank you. stuart: thanks for joining us as always. >> thank you. stuart: i want to bring in fox news contributor steve cortes, same basic question. actually, i want to ask you a market question. let's suppose one moment we don't get tax reform this year, don't get a tax cut this year, next year the whole thing falls apart. suppose that happens. do you think the stock market would hold at current levels or decline? >> in a one word answer, decline. you know, i hate to even countenance that potential that could happen but it could, particularly on senate side. the senate gop has been in many

ways obstructionist toward the president and his agenda. i don't want to count on it as done. i think market largely count on it as done. so if it does not happen i think for sure there are consequences in the real economy, acceleration and real, palpable on main street, i think would start to slow as well the market gains. stuart: now the other side of the coin is, what happens to the market where the dow currently is 23,600? that is where we are. >> right. stuart: what happens to the dow if we do get tax reform, pretty much as laid out in the house plan? if we get it, does the market go up some more? >> stuart, i think it does. more importantly i want the stock market to go up. a lot of our viewers want the stock market go up. the stock market is doing well for a long time. what is not doing well the main street, on the ground economy. we haven't seen wage growth or productivity growth. we're starting to. if we throw in, kindling is there. economy is already accelerating f we throw in tax cuts, i think

it is not just kindlings anymore, it is a big beautiful bonfire of growth in 2018. i think the market does well, yes. more importantly, wages, productivity, the real economy starts to hum in 2018. stuart i believe we will get kind of growth we haven't seen in this century. that is a sad thing to say. young people, they have yet to see the american economy really grow. they don't know the meaning of prosperity. stuart: they don't know the feeling of prosperity, that is true. next question. cvs, has a store on every corner in florida, cvs will announce same day prescription delivery. this is going after amazon, isn't it, steve? >> right. every retailer has to adjust to the new reality of an amazon world. it has to figure out ways to compete against amazon. this seems like sensible, i'm no expert in the prescription drug business at all. seems like sensible way. if amazon gets you the drugs quickly, cheaply, we'll get a

few even quicker, same day delivery. makes a lot of sense. stuart: everybody versus amazon today. that is the way these days. amazon went to all-time high, 1128. i think you knew that already. thanks for joining us see you real soon. >> thank you, stuart. stuart: now this. a new report claims that harvey weinstein hired former intelligence officers to cover up sexual harrassment allegations against him. what is this all about? liz: silence the accusers by ronan farrow. included reportedly hiring ex-mossad agents at a firm called black cube, to pose as women's rights activists to sit down information from actresses whether they will spill the beans about harvey weinstein. this is concerted effort using team of lawyers, right investigators to silence

actresses stepping forward, trying to step forward, hey, he sexually assaulted us, he sexually harassed me. one actress, asia argento, you want to know why actresses like rosanna arquette didn't speak out sooner? they were being trailed by ex-mossad agents hired by harvey win steen. stuart: that is important part of the story. that is very important, i'm glad we revealed that that is big stuff. thank you, liz. coming up, sure feels like the middle east is on edge of war again, all because in my opinion because iran. we're very much on this story. california's governor jerry brown slamming the president at the vatican. said the world needs a brainwashing on climate change. house republicans making changes to their grand tax bill as a new report says, it is facing major hurdles. we have details. ♪

stuart: there is a developing situation in saudi arabia we should be aware of it. not only saudis arrested prominent business people, they had to field a rocket which went over the capital riyadh. the saudi foreign minister calls that an act of war. that, those are the words he used. joining us now, john bolton, former u.s. ambassador to the united nations. it looks to us, sir, and you know more about it than i do, looks to us like they're preparing for war, iran, versus saudi arabia, very close to it. what say you? >> i think that is probably accurate. i think the iranians have a long-range strategy in the region. it is too bad the united states doesn't have one to counter it. but whether providing missiles to the houthi rebels in yemen

who fired this rocket, to financing hamas in the gaza strip and hezbollah and lebanon. what they have done very successfully with our assistance to help eliminate the isis caliphate in iraq and syria and build a military arc from iran through iraq to the assad regime in syria, to hezbollah in lebron, including now the nuclear weapons program, iranians are on the march. saudis are worried and they should be. stuart: is saudi arabia safe? give us assessment of their position here. they have arrested all the people. concentrated power in the hands of a 32-year-old young man. are they safe? >> i have a view that i think is in the minority among the observers so far. there is no doubt that the crown prince, mohammed bin salman, has consolidated power over last several months culminating in these arrests there. is no question in my mind he is

on top. there is a lot of rumors in saudi he may be crowned king almost anytime but i will just say this i think the united states should have a contingency plan for a shah of iran scenario. i don't think this is over in saudi arabia. i don't think it is, conflict among the gulf states, qatar being isolated at moment, i don't think that is over either. i think there is a lot of play here for terrorism within the arab world, not to mention iranian meddling. in answer to your question, yes, i think things are continuing to come unstuck in the middle east, i think that could have a significant impact for example, on the price of oil. stuart: i want to talk to you quickly about president trump's trip to asia. he, in south korea today, or overnight i should say, he was laying out how much military might we have assembled in the region. then he went on to talk about his success or otherwise, with diplomacy, that approach to north korea. roll tape, please.

>> we have many things happening we hope, in fact i go a step further, we hope to god we never have to use. with that being said i really believe it makes sense for north korea to come to the table and to make a deal that's good for the people of north korea, and the people of the world. stuart: in your opinion, mr. ambassador, is he doing the right thing and saying it in the right way? >> well, i think there is zero chance, maybe less than zero chance that negotiations are ever going to persuade north korea voluntarily to give up their nuclear weapons program. we've tried that for 25 years and right now, we're on the verge of north korea getting that capability after all that effort. they are not going to stop now so close to the finish line. would they sit down and talk with us at some point? sure, it's possible because once

they do that, they freeze the united states in place. you can hear the people in the state department and the european foreign ministries as well as saying don't do anything to upset the delicate negotiations. while we're frozen the north koreans finish their missile and nuclear weapons work and are capable of hitting any target in the united states. the only diplomacy that might work here in the president's next stop in beijing with china, to say the time has come, there is no more fooling around. either you take care of the north korean nuclear weapons or we will. stuart: i wonder about the next missile that kim jong-un launches, do we shoot it down? if so, who shoots it down, japan or the united states? that is open question as we speak. i have 20 seconds, would you agree with that, mr. ambassador? >> that is the first question. let's be clear our capabilities on missile defense, after eight

years of obama administration coming close to zeroing out our national capabilities and not doing what they should have done for theater defense. that is one reason why we have to take the north korean threat so seriously. stuart: mr. ambassador, thanks for joining us. >> thank you, stuart. stuart: we've been on, market is open for 50 minutes. the dow industrials are up 31 points, retreating just a little from 23,600, which we did hit a little earlier. seaworld, oh it has been in trouble for some time now. it touch ad record low earlier this morning. it bounced back a little. 84-cent gain, is is 1/2%, struggling at -- 7 1/2%. $12 a share. seaworld entertainment. in virginia, people head to the polls. it's a race between ralph northam and ed gillespie. is this a referendum on president trump? we'll take you there live in a

moment.

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stuart: there is important election being held in virginia at that. republican ed gillespie, facing off against democrat ralph northam to be the state's next governor. peter doocy in virginia. peter, is this race coming down to be a referendum on president trump? reporter: the candidates don't want it to be. i just talked to ed gillespie, who pulled away in vehicle with his security. he was here glad-handing with voters. he said a lot of people here in virginia want to focus on the economy. that is what "fox news poll" reflected, economy and health care are the two issues. trump is a wild card. he tweeted in south korea who favored gillespie, who never asked him to campaign for him.

ralph northam is weak on crime, second amendment, our vets and horrible on virginia economy. vote on ed gillespie today. tim kaine tweeted a quick defense. ralph northam is great vet. he understands service and sacrifice. need another reason to vote ralph, this phony attack is it. but republican gillespie does appreciate the shoutout from south korea. >> i appreciate his support. any governor of virginia has to work with the president of the united states. the fact is, 20 cents of every dollar in our economy in virginia is a direct federal dollar. we need to make sure we're building more ships and submarines in newport news. norfolk remains the largest naval base in the world. reporter: something you can bet both campaigns looking at right now, the sky. the forecast is calling for rain starting around lunchtime across the commonwealth moving west to

east. rain does sometimes affect turnout this is race so many people are so interested in. they have set a record for absentee ballots in a non-presidential year, but if things get really nasty, obviously it is going to benefit whoever people are most motivated to bo turn out. stuart: peter, can i make a prediction, you don't have to be part of this? if the democrat ralph northam wins, there will be screaming headlines tomorrow morning, trump repudiated. if ed gillespie wins you won't hear a thing about it. peter doocy, thanks for joining us. we'll see you real soon. liberal media piling on president trump for liberal media piling on president trump for overfeeding fish. but they're not telling the whole story. but we will. more "varney" after this.

stuart: happening right now, house speaker paul ryan and the rest of the republican leadership in the house, that is mr. scalise, they're holding a meeting, a public press conference. if they make any headlines, you will hear it immediately. headline in the "wall street journal" and it says, the the overhaul faces major hurdles. congresswoman mia love, republican utah, joins us now. that is a pretty negative headline, congresswoman. sorry we're having trouble getting her on camera, getting shot right along with audio. we might have to hold up that for a second. the dow industrials are up 23 points f you're listening on radio, i will tell you this, we hit 23,600 a little earlier today, backed off a little bit. we didn't have any balloons. no special graphics. ashley: we blew the budget on 23,000. stuart: there you go. congresswoman mia love is with

us now. there you are. great to see you, mia. >> great to see you. stuart: the journal headline, the tax deal faces tough opposition, that sounds kind of negative. from your standpoint, assess the chances here that it does actually go through? >> well you know, stuart, here in the house we get things done so, we're going to be able -- we have to look at the big picture. we have to get tax reform done. the biggest issues that we've got not just trying to save money for families, mothers and fathers but mom-and-pop shops also. stuart: hold on a second. i do apologize for interrupting you. >> that is okay. stuart: on this occasion i'm going to do it. how do you feel about the 1%? many of whom, will end up paying more in tax rather than less? how do you feel about that? >> well, the biggest issue for me is making sure that we give tax relief to the majority of americans. those are hard-working americans and americans that are making, that are job creators.

you know, you have to remember, stuart, that the people that need the relief the most under, not just regulatory burdens but also the tax burdens are the job creators. i am protective of those job creators. these people have given my father, three to four jobs to make ends meet. this is the reason why i'm here. because he was able to take care of our family. there used to be a time, a point in time, where people would have one income and that could take care of a family. stuart: sure. >> now that can't even take care of a many faly. so me, make -- family. to me making sure we take care of families and s corps and bringing funds back overseas. stuart: i will put it rather crudely. >> that is okay. stuart: i will not be nasty bit. the republican party just chucked the 1% under the bus. too harsh? >> well it may be, it may be a little too harsh. but i have to say, on both ends,

right? itch to say it is important for to us make sure we give some relief. doing nothing is not okay. and in order for to us be able to give relief to the majority of people, you know, it is not going to be perfect. that is the problem. we'll not get something absolutely perfect. i'm telling you that will be something that will be difficult for nancy pelosi and democrats to take away. stuart: okay. >> we can not hold taxpayers hostage any longer. and the big issue you have to remember is, spending in washington. that is the biggest issue that we have to deal with. i'm not going to hold taxpayers hostage any longer. stuart: mia love, always a pleasure. >> thank you, stuart. stuart: thank you, ma'am. next case. california's governor jerry brown taking his anti-trump views to the vatican. the governor slammed president trump for withdrawing from the paris climate deal. he also said the world needs a brainwashing on climate change. joining us now, fox news contributor, father jonathan morris. would i be nasty that our pope

is environmentalist and greenie, and agreeing with california governor jerry brown and involving himself in politics? >> the pope has no problem, as we know, as we've seen involving himself in politics when he thinks there is something that is important for humanity. right now, in this case jerry brown was not invited by the pope himself. he was invited by a vatican department, called the academy of the sciences. that is still a very prominent place to be invited as a speaker. of course he got a lot of publicity because of it. personally i don't like him being there, jerry brown is one of the biggest defenders and proponents of planned parenthood, abortion. he doesn't line up with many catholic values. so he didn't go to talk about that. he wanted to talk about climate change but to your point, i think pope francis would definitely be in line with governor jerry brown on climate change. stuart: a lot of our viewers are

worried that the holy father leans left politically. that is a concern. >> sure. stuart: whether he involves himself in politics directly or not that is another question, but there is the perception that he leans left and that upset as great many americans. last word to you. >> i think if he leaned right still involved in politics, those conservative would be very happy with it. of course, i would agree that pope francis, he is from argentina. he has a very different experience of democracy and the free market than we in america have experienced and i think he would socially, not on moral issues, not in dogmatic issues but socially and politically, i think he does lean left. that can make us uncomfortable a little bit, those of us who would be more conservative, hey, but not bad to have somebody challenge us to look at things in different way. stuart: fair point, father jonathan, fair point indeed. thank you for being with us this morning on important issue.

we appreciate it. >> thank you very much, stuart. stuart: quick check of the big board, we now turned south. we were up 30, 40 points. now we're down 3, 23,545 is where we are. i should tell you earlier today, amazon reaching yet another all-time record high, $1128 a share. how about that? time for the fox news radio simulcast with brian kilmeade. he is the host of the brian kill me show. -- brian kilmeade show. nnl ratings are down, hit a new season low. the nfl, football, has a real problem here and it is not over. where are we going with this thing? >> couple things. cte with the head injuries. two newspaper stories in new york, news day talked about the lack of kids playing football, contact football, not football you're used to. they talk about football, daily news, same story about ct he e,

head injuries. nick buoniconti, successful businessman, having issues, will donate his brain to science. he feels as though the sport is too dangerous. wouldn't recommend playing. overall i think the nfl is healthy, need to address this as soon as they address the cte, they can handle the other thing about the national anthem. but i saw this was kind of interesting. last year at this time the nfl had 14.7 million viewers watching all their games after eight weeks. this year, it is down 5%. it is down 10% from the year before. it was 18.7%. so, 15.5 million last year. 14-pointmillion this year, two years ago was at 18.7. now look, stuart, like being at top of the heap but you are wondering why are we not winning

as much as we used to? that is still alarming in the future. less kids play, less people watch that is combination that could take somebody on the top spot and put them down to human levels. the nfl is getting a wake-up call now, from a to z, the best team to the worst team, one thing about the nfl they share revenue. if they are all in it together, from the best to the worst. usually jerry jones is leading the charge. right now, he is being honest. he is holding back on renewing roger goodell because he does not like the direction that the league is going in so the alarm bells are ringing. stuart: there is no solution to this anthem protest problem in the near term. nobody has got a fix for this at this point. brian, running out of time, i want to get to this. the mainstream media really freaked out when president trump fed some fish alongside japan's prime minister, over the weekend. they mocked him because he poured the whole bowl of food into the coy pond.

seems to me, brian, media will stop at absolutely nothing to discredit or get at the president for something or other. >> but if you watch the whole tape he did absolutely nothing wrong. this is why people think there is anti-trump media. you watch the whole thing, because i'm lonely, have very few friends, don't get many phone calls or texts i watched the whole thing. i watched him spoon in like abe, the leader of japan, he was spooning in feeding the fish. at the end abe turned his over. so did trump. although showed was trump turning it over. so not only was it a non-story, it was an inaccurate story. we may think it is small and maybes you laugh but they just want to show you that he is too arcane, and to bull-headed to really make america look good overseas. bottom line is? he has been very measured, from the comments he made to the speeches he makes, from the toasts he is giving he has been on his game again, like the middle east, and for the most

part like europe. stuart: one more time, kilmeade gets it right. thanks very much indeed, brian. see you again real soon. that is a promise. >> thanks for talking to me, stuart. stuart: sure. dow industrials still ever so slightly lower. were up 40, 50 points. we're down one. 23,000546. president trump, the live action presidency in asia. next up, china. we have a guest who says president trump should stick it to them. find out why in our next hour.

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♪ ashley: business owners say the gop's new tax plan does little to help small business while ballooning the deficit but karen kerrigan with the small business entrepreneurship council says it's a step in the right direction. roll tape. >> we would like to see the value of that lower rate, that lower 25% rate, be available to

all businesses, all sectors, and we do think this issue is resolvable both in issue of the ratio, having more equity there, having to test the circumstances and test rules allow for more business owners to have that business income. you get that 25% rate. so this is a process. i think the good news is that the chairman is open to listening to all of our ideas. [lance] monica, it is absolute chaos out here!

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stuart: we're still down two points, 23,546. another low for blue apron, getting hit by, what they think is unexpected costs from its new facility in linden, in new jersey. down nearly 14%. all the way back to $3 a share. i can't remember the ipo price, but it was way above three bucks, i will tell you that. another release from the paradise papers, a million documents hacked about secret offshore bank accounts. apple found a new tax haven after the u.s. senate and european union cracked down. apple's stock is up a fraction right now. give me the apple story. liz: after ireland changed its rules. apple was using ireland, still does for the corporate headquarters. tim cook told congress, we don't stash money on caribbean island.

they stash it on the jersey islands in the channel, 12 miles off of france. this is zero corporate tax rate. the pair paradise papers story allege apple pays less than 4% on foreign income streams. apple is out full bore, you're wrong, we have effective rate of 26%. we pay property taxes vat taxes. tim cook is coming out swinging, saying we pay what we owe. watch this. he is saying we preserve our cash in order to pay u.s. taxes, to pay what we owe by u.s. law. stuart: look, the point here is, if we get a new, much lower corporate tax rate, to encourage the apples of this world, to bring the money back -- ashley: yes, of course. stuart: they better bring it back. if they don't, they have incredibly low tax rate to attract and bring money back, there will be, excuse my language, hell to pay. liz: may not. they have nearly a $100 billion in long-term debt to borrow at low interest rates who knows if

they bring the cash back, and do dividends and buyouts. stuart: if they don't. i want to update the rand paul attack. ash, the suspect's lawyer, nothing to do with politics? ashley: that is what he says. he says it was trivial matter, but frustratingly wouldn't say what it is. however "the new york times" have reported it was over dispute over some planting around the properties. they are neighbors. what is interesting about this, the suspect, rene boucher, right there, that is his mug shot, he has been a doctor in the past. both him and rand paul have been at events together. they probably crossed each other in their professional lives, seven teen years they lived next to each other. he hits rand paul while mowing his lawn on friday afternoon with his headphones on, rand paul. he had no idea anyone was coming up behind him and nailed him the attorney for suspect it is

trivial, a misdemeanor. he still had, face it five broken ribs, three displaced fractures which are incredibly painful, bruised ribs. this person is only facing at this point, they say other charges could be coming a misdemeanor crime. but i want to know what it was about? it is frustrating. "new york times" said something trivial like issue planting trees or something. liz: not politics. ashley: something violent but not politics. stuart: i am inclined to say i would like to know the full story. whether or not it is about the plantings, we don't know. ashley: whether or not rand paul is coming back to work, that is significant. stuart: votes that are very important. he has got to be there. ashley: right. stuart: hillary email scandal, it is back. it never really went away, did it. newly reported memos language was softened between a early draft and final draft of james comey's statement which closed out the case. a difference between what he

said before and what he actually said in public. ashley: well, yes, because the final statement said that she was extremely careless in her handling of very sensitive classified information. that was released, back in may 2nd of last year, the original draft put together by mr. comey, who was then the head of the fbi, said mrs. clinton was grossly negligent. well-fed ralleigh says gross negligence in handling the nation's intelligence can be punished criminally by jail and fine. by just changing those words, which came four days, the memo was changed four days after hillary clinton was nominated in the democratic presidential, on democraticside. stuart: first comey writes down grossly negligent. ashley: correct. stuart: four days later, he corrects it to extremely careless. ashley: month later. month later. he corrected it four days after hillary clinton was nominated. liz: to ashley's point, the documents, that original memo is

at senate judiciary. the chair, chuck grassley is digging into it, who is weighing in on the initial memo? why wasn't she charged? you may see hear. ashley: who ordered change. stuart: we'll have the judge at 11:00 hour on this. amazon earlier this morning the stock hit all-time record high, it hit $1128 a share. it backed off a little. amazon is extremely big and very, very powerful. a guest on the program, a nyu business professor says, he wants to rein them in. the best way to do that for europeans to tax them and fine them. liz: i'm not sure about that argument because here's the thing. who is getting harmed here? consumer paying less in prices. this argument he made i would like to take him on again. stuart: we'll have him back. i think he will come. it is election day in virginia and in new jersey. if the republicans lose those two races, the left media, i

think, will paint it as a reverend dull on trump and say, he has got no support left. we'll be back.

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stuart: i want to know how you would do it? >> sure. first off we have a company that can take the value of any consumer stock down 10 to 30% with just press releases. stuart: that is. >> that is no one person can control markets. if i'm advising amazon, i'm not, prophylactically spin aws. i think shareholders would win. the two distinct companies would be worth more to amazon shareholders. would force the amazon retail unit operate not at such a loss -- stuart: that would be amazon's choice. >> absolutely. stuart: to spin off the cloud business would be their choice. >> yep. stuart: i am talking about external outside pressure would which have a go at amazon, make them change, forcibly make them change, forcibly rein them in. i don't see how you can do that, do you? >> sure. if that steps, and regulation would be a blunt instrument, but i think if where it happens is in europe. in the u.s. we register a lot of upside from big tech and amazon.

as an example, amazon is number one recruiter of out of my class. stuart: really. >> number one. 10 years ago, american express and investment banks. far and away amazon. we register a lot of upside here in the u.s. stuart: how do you feel about that. >> i feel great bit. they create great jobs for my kid. i own amazon stock. i'm a prime member. i wonder over time a company with this dominance in the markets and can operate on a different set of rules because the marketplace keeps bidding their stock despite the fact that -- european, end of world war ii, had better tanks, better guns, allies from 38 gallons of gasoline for everyone. we over well misdemeanorred that many with brute force. liz: ibm in the reagan era and reagan blew them up. >> fair point. a company too powerful, they're usually about to go into decline..9

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stuart: just a few short hours from now, we'll start getting the results from the first big statewide elections since donald trump won the presidency. voters in virginia and new jersey are going to the polls to elect new governors. if the democrats win, the media will say, oh, it's a referendum on president trump. if the republicans win, the news will be buried. start with virginia. it's the closest race. outgoing governor terry mcauliffe is a clinton friend and supporter. that could be a bit of a problem for democrat candidate ralph northam. in virginia, the left has taken the low road, launching a disgraceful ad that branded republican ed gillespie a racist bigot whose supporters chase down minority children in a pickup truck. okay, the ad was withdrawn, but you can see where the democrats are coming from. just like hillary, they want to brand all republicans as racist

deplorables. most polls show northam is leading, but gillespie has been gaining ground recently. in new jersey democrat phil murphy has a double-digit lead over republican kim guadagno. looks like the democrat wins big. he promises to raise taxes on the rich to pay for government worker pensions and their health care. that has implications for other states like illinois which also have a pension crisis. now, a blowout win for democrats in both states means blowout media coverage tomorrow morning. the line will be, finally, the tide has turned. trump brought down a peg or two. that's exactly what they'll say. but if republicans win in virginia, maybe come close in new jersey, these elections will be considered of no importance whatsoever, mere flukes not worthy of much coverage. such the is the biased media age in which we live. the third hour of "varney & company" starts now. ♪ ♪

stuart: okay, producer, you have got to tell me who that is -- >> nina simone. stuart: oh, ashley was right. >> way to go, ash. >> i'm just old. [laughter] stuart: you won one. >> thank you very much. stuart: check the big board, i'm going to call it a dead flat market. peter kiernan's with us, the author of the book "american mojo." peter, let's pose this question. let's suppose there is no tax cut deal this year or next year, it doesn't happen. does the market still stay at these record levels? >> the good news is that there is a lot of earnings and revenue momentum, and there is growth all across the globe. i cannot imagine, nevertheless,

that if we fail to get a good -- and i emphasize good -- tax bill this year or next, the stock market is going to have a major adjustment. it is not going to stand by because this president and his team have promised it and promised it and promised it again. they have to come through. stuart: five or ten percentage points down? >> no question. stuart: really? >> no question at all. and i emphasize good. they're trying very hard to dilute the power of this tax incentive, and you can't give a tax break to corporations and then find 15 ways to hang baubles and kind of trip them up with additional taxation which is precisely what the ways and means and other people are trying to do right now. stuart: you don't think much of this tax bill. >> i am really disappointed with where it stands right now. it's early innings, but a lot of the really good stuff -- for example, they're talking about delaying the tax cut for corporations over a four-year period. that won't do it. stuart: it's a disaster for the

market. don't you even think about doing that. >> don't do that. stuart: okay. quick question about the price of oil. tension in saudi arabia with iran, price of oil goes to 57 a barrel. isn't that wonderful news for american frackers? >> it is spectacular news, and here's what's really interesting. opec just did a study that said that american frackers, u.s. shale technology will be 56% higher over the next four years. and they say we, opec, have to behave recognizing that the shale production in the u.s. could get to 7.5 million barrels by 2021. so they are highly aware at opec and highly focused on our shale dividend, what's going on in the united states. we become the marginal producer. we are becoming the marginal price maker. and opec is taking notice. watch, i think the corruption that was washed out and the arrest of princes and government

leaders is a poker player's tell. prince sal man is on the march. in fact, i believe he is going to retire his father and become king within the next year. this is a man on a mission. he wants to reform and rejigger everything going on in saudi arabia. he has to because 70% of the people there are under age 30. stuart: if he gets the price up, $60 a barrel, for example, our frackers in america, we win big. >> yes. and we both win because he has a $2 trillion business that he's running and an ipo coming next year. stuart: it's a big deal, got it. elections happening in many states today. perhaps the most high profile race is in virginia where republican ed gillespie is facing off against ralph northam to be the next governor. karl rove, do you think this is a referendum on president trump? >> well, to some degree, but let's not overstate how much it is. full disclosure, ed gillespie is a good friend of mine, he's like

a brother, and i contributed generously to his campaign, so your viewers need to take what i have to say about it with a grain of salt. he's behind, but he has been showing great momentum. and if he wins, it's going to be a combination of the ability of the trump brand to energize blue collar, working class voters and ed's outreach in this campaign which has been extraordinary. he has been focused for the last year and a half laying out a concrete program of action for the state on the economy and education and public safety and the environment and innovation and taxes and regulatory policy, and he's done so in a very detailed fashion so that nobody's going to go to the polls today who's been paying attention and not know exactly what he wants to try and do as governor. stuart: but is president trump to any degree at all a problem for the republican, ed gillespie? >> well, yes, in this sense: virginia's the only southern state to have voted for hillary clinton by about five point.

that's -- if you're running in a state that voted for the incumbent president, then you've got a little bit of a big wind at your back depending on how big their margin was. if you're in a state that president trump lost to hillary clinton, again, you have a wind in your face, and how big depends on how big her margin was there. new jersey, hillary won handily. that's a pretty stiff wind to run into. in virginia it's less of a wind, but nonetheless, she carried it by five points. stuart: what about the west coast? i hear talk that withed the's elections -- with today's elections, especially some smaller municipal elections, the left, the democrats could have a clean sweep up and down the west coast. washington, oregon, california, they run government all up and down the line. and would, therefore, become the geographic as well as political opposition to president trump. >> well, i think that's a little bit of an exaggeration on the part of the left because, look,

they already run most of the west coast. the key race here is in washington state and the suburbs of seattle. the republicans control the state senate in washington state by one vote. a republican senator died last fall. there's a race in suburban seattle. this could flip the senate from being a one-seat republican majority to a one-seat democrat majority. this is the only legislative chamber on the west coast of washington, oregon and california that's still in republican hands, and it served as an effective check on some of the more excessive proposals of the governor of washington, governor inslee. it stopped a cap and trade scheme, the republican majority stopped tax increases, very interesting race where we have two women running against each other, both asian-americans. and literally, the control of state senate is going to come down to this one seat. and more money has been spent in the state senate election in suburban seattle than in any race for the legislature in the history of washington state by far. stuart: that says a lot.

>> millions. stuart: i've got 20 seconds left, and i've got this one question for you, karl. in my lifetime, i'm in my late 60s, will there ever be a statewide election in california that goes to the republicans? >> well, fends on how long you -- depends on how long you live -- stuart: okay, gulf me 20 years. >> well, maybe not -- [laughter] in the last 20 years it's going to take democrats being in disarray and republicans to take advantage of this weird system they have in california where the top two vote-getters regardless of party go into the general election. there could be a way to get into a general election contest between a very unpopular democrat and a republican who's capable of splitting the democratic vote, but it's a tough state, and republicans have a slow rebuilding effort. stuart: karl rove, thanks for joining us. we appreciate it. >> thank you, stuart. stuart: now this: new memos show that james comey softened the language in a statement on hillary clinton's e-mail case. why did he do that? he softened the language.

judge napolitano coming up on that in a moment. and in the coal industry, miners believe the comeback is coming, so they are refusing training in other fields, other jobs. but in kentucky coal jobs are actually down. murray energy ceo robert murray coming up on that. ♪ ♪ are you on medicare?

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call unitedhealthcare or go online to enroll. sfx: mnemonic stuart: programming note for you, congrm mcarthur supposed to be on the program earlier, got tied up on capitol hill. we're trying to rebook him maybe for tomorrow. he's a republican from new jersey. how does he feel about the tax deal? we shall see. now this, the state of

kentucky says its coal industry shed, dropped more than 5% of its jobs between april and june of this year. doesn't look like there's any rebound for coal yet under president trump in the state of kentucky. robert murray is with us now from murray energy. what do you make of this, robert? a drop in the number of coal jobs in kentucky between april and july of this year. what's going on? >> well, coal jobs are actually coming back. since the election of president trump, there have been 5,000 coal mining jobs created. now, you -- stuart: wait a second. what about kentucky? these are official numbers, and we're not making them up. >> no, it's, it may be true for kentucky, but for the industry president trump has created 5,000 jobs. you've got to remember, stuart, that barack obama and his democrat supporters destroyed 63,000 coal mining families.

when you take the secondary multiplier for coal, that's 756,000 jobs in america that they destroyed. so it is coming back slightly. if you take president bush's -- stuart: where is it coming back, robert? kentucky, it's not according to these numbers. where, where are these jobs coming back slightly, as you saysome is. >> they're coming back in the metallurgical coal industry, stuart, they're coming back in the thermal coal industry in certain regions of the country. you know, the clean power plan alone that mr. trump eliminated safed 25,000 -- saved 25,000 coal mining jobs right there. we calculated it. so that one item alone saved 25,000 coal mining jobs on top of the 5,000 he's brought back. but, you know, this has been a tremendous action, stuart, by president trump, epa director scott pruitt and energy

secretary rick perry -- stuart: okay. >> -- for citizens on fixed incomes. stuart: i've got to move to this one, robert. from pennsylvania. a lot of miners are convinced that president trump will bring coal jobs back. it appears they're so convinced that they're not taking the training courses, free training courses that are on offer to train them to be in other skills. in two pennsylvania counties, only 120 people signed up for retraining. that was way short of the 700 that were expected. do coal people think they're only going to be in the coal mining business and that's it? >> well, coal miners and coal mining people are very optimistic right now with the election of president donald trump. energy secretary rick perry and epa director pruitt have been stars of his administration. they not only addressed these coal mining families, but they addressed the cost and

reliability of electricity which single moms and couples on fixed incomes, manufacturers are paying out 21% of the earnings for. so he has done much to bring it back. but his greatest action to date has been to secure reliable, resilient, secure electric power in the united states. we take our electricity for granted. electric power loads are coming back and so is the coal industry. stuart: okay, i got it. robert, i've got to cut it short. we take your point, and we take your message, and we appreciate you being here. robert murray, thanks for joining us, sir. >> thank you. stuart: peter kiernan, now, we're hearing that the coal industry is coming back, coal mining jobs are coming back. you're a goldman sachs/wall street kind of guy. what do you say? >> you know, this one is really hard because these are good people, hard working people, but they're getting bad advice, and worse than that, they're taking

it. metallurgical coal does have, that makes basically metals, does have little margin in it and some hope. thermal coal which heats and does the stuff he's talking about, there is not a future. period, enof statement. if you're watching -- end of statement. if you're watching, take the training for the new jobs. the people who are telling you this will not deliver that, will not be there. i'm sorry, because these are good people, but you don't want to mislead them. there are only about 100,000 coal jobs in the country. and if you're in the thermal coal area, you are in danger. your livelihood, these are good people. let's help them, let's work to get them into jobs that will have sustainability and not things that'll blip for a little bit and then die out, certainly, over the next decade. stuart: you get both sides of the fence finish. >> yes, you do. stuart: -- on this program. we are fair and balanced. you're all right. thank you. coming up later this hour, we're going to be joined by the man

who owns one of the largest construction firms in the new york/new jersey area. he likes the tax plan and says it'll be great for his business. president trump making the rounds in asia. the live-action presidency. he'll be heading to china next. peter morici says the president should stick it to china on trade. will the president do that? markets right now up two, three points, 23,551, that's where we are. more "varney" after this. ♪ ♪

>> you know we sent three of the largest aircraft carriers in the world, and they're right now positioned. we have a nuclear submarine also positioned. we have many things happening that we hope, we hope -- in fact, i'll go a step further -- we hope to god we never have to use. with that being said, i really believe that it makes sense for north korea to come to the table and to make a deal that's good

for the people of north korea and the people of the world. stuart: come to the table, make a deal. the diplomatic approach. on the other hand, watch out, because we've got a big military force there. and, by the way, we -- america -- are going to sell a lot of military hardware to south korea and japan, anti-missile defense. those defense stocks, those defense companies, they're the ones who make this hardware that we're going to sell by the billions to south korea and japan. they're all up again today, they're had a very good run so far. apple, you know they've got $268 billion cash. they're not using that cash, they're actually issuing bonds to raise money. doesn't hurt the stock. still up. amazon, ah, i guess you could call in the story of the day. their making a -- they're making a push into private label sportswear. watch out, adidas, nike, under armour. earlier today amazon hit an all-time high, 1128. backed i off since then.

speaking of amazon, cvs rolling out free, same-day prescription delivery. that's a reaction to amazon looking at the pharmacy delivery business. cvs up $2, 3%. weak outlook from priceline, oh, don't do that. ing they'll take your stock to the cleaner. it's down $222, that is 12% because they've got a weak outlook. exactly the psalm story with trip adviser -- same story with trip adviser. not so rosy. down goes the stock 18%. james comey initially said that hillary had been grossly negligent in her e-mail dealings. shortly thereafter he changed the wording and made it extremely careless. there is a difference. judge napolitano will explain it in a moment. live look at capitol hill. happening right now, house republicans working out the tax deal. meanwhile, "the wall street journal" says the deal is a tough sell. stay right there, more after

this. ♪ ♪

♪ ♪ stuart: oh, i know that.

that's frank sinatra. yes, i recognize -- great voice. great voice. if you ever listen to him and watch him from the late '40s, early '50s, unaccompanied just sitting there singing into a mic, man, that guy was good. >> really good. stuart: check the big board -- stay out of this. [laughter] >> i haven't said a word! stuart: we're down five points, 23,543, is where we are. president trump, whoa, live action presidency in his asia p trip. next up, china. peter morici, university of maryland economics professor, joins us now. peter says we, america, should stick it to china. specifically on trade. you've got 30 seconds to make your initial case, peter. go. >> well, these large trade deficits are causing us to borrow endlessly from china, and now china's going to come and invest here teaming up with goldman sachs and start buying up our technology and so forth. what's more, china is now

targeting our best companies and best activities. they've targeted artificial intelligence, they've targeted electric cars and so forth. stuart: well, do we have any leverage? if we want to stick it to them, as you suggest, how do we do that, and do we have the leverage to do it? >> well, warren buffett has suggested we take a different approach to china. not a wto approach but, rather, we basically require exports equal imports. we issue import licenses to those people who export to china and they can sell them, and they have value, and you need those to buy stuff from china and bring it into the united states. i like that. stuart: okay. hold on a second, peter morici. i've got peter kiernan with me, what's your reaction? >> okay, peter, i live in the real world, i don't know what -- >> oh, please, don't start. no, no, no, i live in the real world too, okay? >> i'll grant you that. if you look at it, there are 57

countries that have usa as their number one trading partner. china has over 100. and if you look at china's plan, they're going to spend a trillion dollars on infrastructure in the next ten years outside their borders. they create trade benefit with their checkbook. they are better at this than we are. and if you're going to go up and negotiate it, you should realize china is a big player. if you look at the top ten trading ports in the world, the united states has zero. not one of the top ten trading ports is in the usa. china has six. china is a trading and export behemoth. and to go in -- both these presidents are coming in very strong. president trump has got a superb stock market. president xi has just come off a magnificent reappointment from his congress, and he's looking like he's going to have the same kind of money -- run mao does.

it would be a big mistake to overplay our hand in trade because we don't have the cards. stuart: okay. peter morici, 30 seconds to respond. go. >> well, the reality is we're china's largest market, and we're their best source of technology. and they get very favorable terms here, you know? they can buy an american company, 100% of it, and then learn the technology, take it home and make sufficient. we can only buy, in most cases, 49% of a chinese company. what i'm angling for is genuine reciprocity. they can buy an american chipmaker, we should be able to establish one there without conditions to transfer technology, without conditions to take on as joint venture partner. and certainly, they should let our products in. chinese-made cars are going to come in here on a 2 or 3% tariff, we face a 25% tariff there. china doesn't need this preferential treatment anymore. i'd be perfectly happy to take off what i just described, those

buffett quotas, if china opened up and genuinely competed. as for all those ports, where do you think it's getting the cash from? from the huge trade surplus it has with the united states. it's paying dollars, and it's getting those dollars from its huge trade surplus with the united states. we are handing china the world. stuart: okay. we have two distinct points of view here, but we do have to leave it at that. i think this debate should be continued -- >> i respect professor morici more than i can say. -- >> it's morici, please. live in the real world, learn my name. [laughter] stuart: peter morici, thanks a lot. >> take care, thanks a lot. see, you, peter. [laughter] stuart: we're all friends on this program. that's a live look at capitol hill. house republicans are trying to do a little work on this tax deal. meanwhile, we have a "wall street journal" headline that reads thus: tax overhaul faces

major hurdles. the article suggests that it's going to be an uphill struggle to actually get it done. joining us now, republican congressman jody hice from georgia. congressman, i'm not going to ask you about whether we get it done or not, i'm going to make an observation. i think you, sir, are having a lot of fun because you are sticking it to northeastern liberals who say that rich people should pay more tax, and they are going to pay more tax because of your tax bill. am i right? >> well, it's not trying to stick it to anyone. the fact is many of those northeastern states are sticking it to their own people. the federal tax plan is not going to increase their taxes, it's their own states. so to some extent, that's, i think, needs to be somewhat of an irrelevant issue. we're trying to lower taxes, federal taxes for everyone in america. what happens in the individual states is going to be up to the states. there's a lot of moving pieces right now, there's no question

about that. stuart: but, congressman, we're not lowering taxes for everyone, are we? i mean, the 1% is going to end up paying more, not less. >> well, i mean, that's -- we're going to have to wait and see on that. the goal, the attempt, certainly what i'm trying to do and many of us are trying to do is lower taxes for everyone -- stuart: yes. >> and the tax brackets are going to do that. stuart: i get your point. but the plan as presented keeps the top rate where it is, 39.6. >> correct. stuart: it get rid of the deduction for state and local income taxes. that's huge -- >> that's still being debated though. stuart: yeah. >> in fairness, this' still up for grabs. -- that's still up for grabs. stuart: it limits the mortgage deduction. it limits the property tax deduction. the 1% largely almost everywhere in america will pay more. it's not a tax cut for everyone. >> well, you may be correct on that. we'll have to wait and see. but everyone else is going to

see a tax cut. and i think even for that top 1% when you look at the 12% that's included, the incremental steps, there are fewer categories that they'll be paying from, i'm hopeful that at the end of the day they will see some tax breaks as well. i'm still waiting to see the numbers. i want to compare apples to apples as well as apples to oranges. the new plan versus what we currently have. but we're going to keep pushing this thing forward, and i think we're going to get it done. stuart: okay. we hear you. congressman, thanks very much for joining us, sir. we appreciate it. >> oh, it's good to be with you, thank you. stuart: yes, sir. all right. now this, former fbi director james comey changing the language he used in a memo about hillary clinton's investigation or the investigation of her, i should say. he removed the words "grossly negligent" and replaced them with, publicly, "extremely careless." without getting into the weeds, you know who's next. all rise, judge andrew

napolitano. okay. now, you're a legal guy, so i ask you, is there a legal difference between grossly negligent, that was comey's first expression, and his public expression, extremely careless? >> in a word, no. stuart: no? >> there is no difference. >> i think grossly negligent would open you up to charges. >> gross negligence is extreme carelessness. look, we have a statute that says if the government puts into your hands for safekeeping state secrets and you fail to keep them safe by intentionally exposing them or grossly negligently exposing them, you can be prosecuted and found guilty without the government proving intelligent. stuart: so why didn't comey prosecute? >> ah. well, i don't know why he didn't percent. if you -- prosecute. if you ask me why did he use extreme carelessness, because the language is consistent, and it says gross negligence, and if

he used that language, then your question would be, well, why aren't you prosecuting when the supreme court says that's the standard? all he did was fudge the terminology. but the meaning is the same. look, our colleagues pam brown and cath rhode island her ridge -- catherine herridge discovered a memo from an fbi agent complaining that jim comey told them that they had to find intent, and the fbi agent spends to his boss saying, most respectfully, the courts in interpreting the statute say we don't have to prove intent, we only have to prove gross negligence. so they pump gross negligence in the memo, and then before the memo becomes public, they change it to extreme carelessness. look, we all do a lot of writing, we wouldn't want our draft out there as opposed to our final product. but in this case, the director of the fbi materially misled his own agency and the public on the legal standard for indicting and proving guilt. and i've said to the attorney

general this morning and i'll say it again, if jim comey was fired for the reason you gave -- he dropped the ball on hillary clinton -- pick up the ball. run with it. bring the evidence to a grand jury and let the grand jury decide if they want to indict. stuart: i've got ten seconds. i don't think the clintons, either of them, will ever face serious legal charges. >> because of the culture in government that we will not prosecute our predecessors because we don't want our successors to come after us. stuart: plausible deniability, it goes back a generation. >> they can deny all they want, but she'll have a hard time denying it on the witness stand when she's a witness. stuart: okay. i'm told that's the last word. [laughter] coming up, the company contracted to help restore power on the north side of puerto rico. they say half the island should have power restored before thanksgiving. we'll check up on that one. first, the person who runs one of the largest construction firms in the new york/new jersey area, he says the republican plan will be great for big and small businesses. growth for everyone, he says.

more "varney" after this. ♪ ♪ [phone ring] hi anne. so those financial regulations being talked about? they could affect your accounts, so let's get together and talk, and make sure everything's clear. yeah, that would be great. being proactive... it's how edward jones makes sense of investing. our recent online sales success seems a little... strange?nk na. ever since we switched to fedex ground business has been great. they're affordable and fast... maybe "too affordable and fast." what if... "people" aren't buying these books online, but "they" are buying them to protect their secrets?!?! hi bill. if that is your real name. it's william actually.

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>> we're keeping a keen eye on fedex. fedex and walgreens are teaming up. both of these stocks are higher at the moment, walgreens up 2.7%. the two companies together taking their relationship to the next tier. you'll be able to, they're teaming up, you'll be able to bring your packages, pick them up, drop them off at walgreens. in fact, 80% of the u.s. population is nine minutes away from a fedex hold location. these locations will include walgreens, kroger, albert softens. this is how fedex is really going to work it during the holidays. over 7500 locations, they're going to continue to expand. it will be in all 50 states and make package shipping easy. ♪ ♪ and it's raining... our home was ruined... we couldn't live there.

mom: our first concern was the kids. this was going to be hard on them. chubb got us a place to stay in the same school district. otherwise it could have been a nightmare. dad... chubb turned a disaster into an adventure for our kids. mom... and no one missed a day of school. ♪ that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day

by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. stuart: there's a general agreement thae big went or of the tax plan is business. -- big winner of the tax plan is business. and our next guest says with that money, the money that he's going to save, he will reinvest, and he'll create jobs and start more construction projects. our best is anthony rinaldi, and he is with the rinaldi construction firm which is a big deal in new york, new jersey and elsewhere, if i'm not mistaken. >> correct. stuart: so this 20% top tax rate, you're the kind of company which would have that top 20% rate. you love this, and you say you're going to save a lot of money. you guarantee, yes, i'm going to

hire more people, i'm going to do more projects. >> 100%. with the money that we will be saving, we will reinvest into our company. we're in the process right now of growing on a national level. we're now in florida, we're looking to texas, we're looking to chicago. and one of the things that this will help us do is take that money and reinvest it into those areas in order to you our companies in those different marketplaces. stuart: at the moment, you're paying -- just give me a rough idea of the tax rate that you're paying, 30, 35%? you paying that? >> we're paying the 35%. stuart: full tilt. so if it drops to 20%, you've got a serious savings. >> millions of dollars. 100%. stuart: so you want to use that money to expand? >> look, right now, for example, we're in miami. we just expanded over the last two years, and we're doing hotel

projects in miami as we speak. but the growth has been slow. it's been deliberate. it's been calculated because i've been sort of, you know, very conservative in my move in expanding the company. with the money that we would be, you know, getting back in taxes, saving in taxes, i could take that money, it gives me much relief, the relief that i need to reinvest it into the company and into more jobs and expand those marketplaces, particularly in miami, and increase the work that we're doing currently today. stuart: okay. now, you live in new jersey, i think, is that right? >> correct, i live in jersey. stuart: i'm pretty sure you're doing well, and i think you're a 1% kind of guy. >> yeah, that's correct. stuart: well done, young man. [laughter] however, under this tax plan people like you -- even though it helps your business -- people like you on on the individual side of the coin, you're going to be paying a lot more in taxes especially if you live in new jersey and especially if a

democrat wins the gubernatorial election today, because he'll put your taxes up. >> that's true. stuart: how do you feel about that? >> not good. [laughter] that's the second side of it. and, you know, as i understand it, he's still working, you know, president trump is still working on this bill. i'm hoping that he puppets a little bit -- puts a little bit more effort on that side of it because, you know, that's a double-edginged sword. stuart: yeah. it's the deduction for state and local taxes that's going to get you. >> you got it. stuart: peter kiernan's with me. i'm not going to ask whether you're a 1% guy or a .1% guy, i don't care. am i right, the people who have a good income and live in new jersey, new york or all these other states with high taxes, they will pay more, am i right? >> yes. in fact, i think the way to look at it is is forget the 1%. i think we're closer to 10 or 12% of the people in this country are going to pay more under this proposed legislation. s.a.l.t. is a key element, and

people say it's the states' fault. if you're carting around chicago and you're in illinois or carting around new york and you're in new york state, these are highly expensive propositions. that's where people tend to move. so you can't penalize people for where they tend to move. what i like about what anthony's doing is he's using the benefits of a tax break to expand and create jobs. that was the intent. that's how you use tax to drive the economy. stuart: i want to say something. i would vote yes on this tax bill. it might hurt me and people like me. it might do that, but if as you say, anthony, it enhances our road and our march to prosperity, i'm for it. >> i agree. stuart: same thing? >> i agree. stuart: same thing? >> yes, we have to do it. stuart: thank you, gentlemen. the a pleasure having you back. >> thank you. stuart: next, the company which is helping power up the north side of puerto rico after those hurricanes, they are making progress no matter what some people say about the recovery effort. we'll be back.

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stuart: well, look at this. this is the parent company tj maxx, marshalls home goods, they are still paying their employees in puerto rico even though they have been unable to work since september. the company operates about 30 stores on the island. the stock is down just four cents, but they say they are doing the right thing. i believe they are. still on puerto rico, our next guest's company is responsible for restoring power to the north side of the island. john campion, apr energy's ceo. he's with us here in new york. john, welcome to the program. >> thank you for having me. stuart: now, we hear all kinds of criticism that it's a slow recovery process and that trump and the administration is to blame. you give me a progress report on what you were supposed to do, restoring power. >> we did what we were supposed to do, 15 days after the equipment hit the site, we turned the power on, and we've been generating electricity since. i just got a status report from the team on the ground, so since we turned on we've generated almost 11 million kilowatt hours

of electricity, which is a phenomenal -- stuart: is that your phone? >> it's an update. [laughter] stuart: that's a $50 bill that just came out with your phone. [laughter] what are you doing? >> i'm a mess. stuart: have we ever had this happen before on "varney & company"? >> no. >> in any event -- stuart: a guy with an irish accent drops money on the floor -- >> we've generated over 11 million kilowatt hours of electricity, which is a phenomenal achievement. look, we're partnered with the army corps of engineers and fema. the task is mammoth. very hard to understand what's actually happening on the ground. stuart: well, is it happening fast -- look, it can never happen fast enough. >> i think it's happening as fast as it can. stuart: okay. how did you get the contract for this? >> right after the hurricane, the hurricane was on a wednesday into a thursday, and we flew down with some senior general electric executives to literally offer our services. we were there on a monday, and we met with the governor, we met

with fema and we said, look, this is what we can do. you may not be aware of this type of equipment, these type of products or processes, and this is what we can do to solve the problem. and they put us through a competitive process, a competitive bid processes with the army corps of engineers, and we -- stuart: competitive bidding process? >> very competitive. absolutely transparent. so we went through with the process. we said we'd deliver extremely fast, which we did, and we're working with the army corps and fema on some other projects specifically in the east of the country which hasn't had electricity at all, hasn't had power since the hurricane, since irma. stuart: what about pricing here? you bid a certain price. we can do the job for x number of dollars. >> correct. stuart: you were the low bid? >> it was technical first and then price was second because speed costs money. stuart: okay. can you do what you said you were going to do for the price you quoted? >> absolutely. stuart: can you come in under budget? >> we'll see how it works out.

obviously, there's a few variables on fuel and dispatch, so we'll see how those variables, how those variables end up. look, at the end of the day, it's very, very important to get the lights on, get the lights on, get business working, get everything going. i mean, could you imagine any of us here at home tonight with no electricity for the last two months? stuart: no, i cannot imagine. >> cell phones not charging, refrigerators, nothing working. stuart: all right. leave the money on the floor. [laughter] you don't have to pick it up. >> he's serious. [laughter] stuart: thank you, john. there will be more "varney" after this. ♪

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ashley: i hate to do this, all of sudden as we come to the very end of this program, we've been on the air for nearly three

hours, all of a sudden, just as we're finishing up, along comes the market, plunges, not plunges, down 60 points, just like that. on that basis i have to hand over to neil cavuto. neil, it's yours. neil: thanks for that. what a great passing of the baton as well. but, always food when we have these bonding moments, thank you very much, stuart. ashley: got you. neil: we'll try to understand the market, a lot of concern about the tax cut as it makes its ways through the house ways and means committee. we'll get details, where they will go over other things as well as the senate within days now looking at its own proposal tomorrow, probably. what does all of this mean, house reconciles, all issues. bo to white house budget direct to, mick mulvaney