>> final thoughts mitch. no trade wars we don't want a trade war. >> acronews is earning growth has grown up from 16.8% since it's all about the acc people. [laughter] have a great day everybody. "varney & company" begins now. charles payne in for stuart varney. >> jobs are coming back to america that's one of the big stories thanks a lot maria. good morning i'm charles charles payne resign as president trump top economic advisory, obviously, market doesn't like it. down 1% across the board. we know that cone opposed tariff an he wouldn't back the line. but i'm going to make a case that says maybe tariffs aren't so bad afterall. i'll lay out the pact the and numbers to back me up. and we've got big be news from attorney general jeff sessions later this morning, he's going to announce the department of

justice is suing california over sanctuary state policies we're going take you there live. the trump administration versus golden state coming up right here. keep it right here on "varney & company." also we're tracking the winter storm. it is expected to drop up to a foot of snow or more on parts of philadelphia, new york, and boston. thousands of flights have already been can canceled so for three hours of "varney & company" starts right now. >> i like conflict i like having two people with two different points of view i like that and then i make a decision i like watching and seeing it. i think it's the best way to go. i like different points of view but the white house has a tremendous energy and we we have tremendous talent. >> well, with that was president trump shooting down rumors of white house and the president

tweeted this after gary resigned, quote, we will be making a decision soon on the appointment of a new chief economic advisor many peoplementing the job. wheal choose wisely in the meantime let's take a look at the a dow futures we've been down across the board as much as 350 o points at some point today. join aring us now former reagan economist art laugher. first of all i want to get your reaction to the gary koan departure. >> i like him very much i thought he did a terrific job and sorry he's departing i think that lots of other candidates charles, that would be very good this that job. obviously, my dear friend larry i think would be as go ahead as anyone. but -- cone was very good. he did a great job in tax bill and thoughtful clear thinking person, and i thought he was just handled himself beautifully and -- i don't think so he left because of a conflict. i just don't. i mean trmp's comect earlier is we like all sorts of views. that's the right way to be president. you're an advisor he's the

president. and tell him what you're thinking. >> but after the tax cut there wasn't a per se ideological gold man sachsing a pl we're talking about economic nationalism. america first that's the kind of thing that doesn't emanate out of wall street. >> you know, yorng you're right that adding cohen views on everything are very, very valuable for the administration and just because he's not in line with what the president's decision is this time. doesn't mean he doesn't provide a huge invaluable service talking with the president. i think that's true of any advisor. if you sit there and tell people they've got to tow the line on advice to you. you've lost all of the advantages of having a advisor. you want advisors that say what they think and -- once you make the decision they go along with with you. but that doesn't mean they have to agree with with you -- that's not goods. but you said once you've made decision as commander in chief you would hope they would come onboard apparently a line in the sand that everyone thought eventually woild happen.

real quick before i go to questions on tariffs themselves, your name is popped up a lot in the last overnight. would you consider taking the job -- if it was offered? >> come on i'm 78 an had my day in the white house and i have ronald reagan and i loved it. it was great and there is no encore after reagan i love working with steve moore and larry rei on all of this stuff it is superfun for me. but i'm not any way shape or form going to do anything in the admistration perd. >> you know can't bla me becauseou with look 20 years younger. you look liking you're fit for the gig that's all i'm saying. >> flattery will get you 30 years ynger. [laughter] by the way. president trump tweeting this on the tariffs toipght share with you in the audience from bush one to president of our country has lost more than 55,000 tearkts 6 million manufacturing jobs accumulated deft of 12,000 and yesterday a deficit of 800

billion bad policy and leadership, must win again. now you've minced larry rumoredded to get the job but he's against tariff and voiced on sis opposition against them loudly and what is your view and obvious unbalanced relationship we have with the rest of the world? >> see, i love the thing that the president said from bush one to now. that's a perfect example of bad policies from bush one to thousand. he didn't go back to reagan because we solve trade problem by economic growth and enormous increase in the trade defendant charles, and enormous increase now why do i say that's good? because the -- trade surplus is the -- trade deficit is the capital surplus. every one of the foreigners tried to invest in the united states and the only way they can generate the dollar cash flow charles is by selling more goods to us and less goods from us. remember, capital imports are the opposite of the trade

deficit. if you have a trade steft you can't have capital imports without a trade deficit period it is not theory or ideology but trade deficit is wonderful for us. now that doesn't mean that trade deals aren't bad. they may well be bad and i think truch is perfectly correct in going after nafta they're very bad deals. but the trade deficit is not the problem. >> some people are concerned with our wealth goes out of this country and then comes back in and form of foreign ownership of the very companies that are being put out of o business some people would see it differently sir. >> i don't think so. i don't think -- you want to be able l to have capital ownership all over. we own o companies in europe they own companies here. that's not a problem. >> not a problem but i think ideas of wriewzing our money to buy our comean maybe it's -- but they're giveing me the -- >> they give us the money to build new factories that's why tennessee is full of foreign oil companies. >> all right buddy. going bring you back real soon. i love this conversation.

>> and -- >> agree with me this morning. trchg thanks a lot. let's check on futures folking because market immediately dropped when news broke, we continue to be underpressure the dow right now up 271 points. >> back to december levels right beau caterpillar is dragging the dow. smg we'll see what happens. but, of course, the big tech names that we check every single day, because they've been on fire. and down fractionally looks like who knows maybe they can go up before the day is over. we have to take a look at big banks a lot of news coming out there particularly dodd-frank legislation and then economic news some earnings news discount ross stores but it was they predicted management blaming very competitive and climate out there. and in part same thing with profits -- urban outfitters numbers weren't that bad to guidance wasn't up to sthuf. meanwhile attorney general e jeff sessions traveling to sacramento the federal

government now u suing california. over its new immigration laws all rise. judge andrew napolitano is here with reaction. first of all do you want to get the gary cohen gig? >> exactly my field -- but you know i love larry -- he's a libertarian. i mean i think he was farther away from the president than gary. >> vocal about it so we'll see. i know president trump love larry we all lot of him but he's not economic nationalist. so -- >> you're talking about ran to the white house. >> but this is another big news story. that you have the expertise and a lot of people are viewers are are anxious about this or happy it is happening. >> okay there are three statutes california one study says federal state relationship with respect to sanctuary cities stses just a study in way to california money two are troublesome one with statute prohibits anyone who works for state county or local government from cooperating with ice. now you cannot hide a person. you cannot obstruct isis work. but it prohibits you from giving

information i.c.e. so arrested for a burglary. he is brought before the court, he's given bail. i.c.e. says we think this guy is here illegally would you please tell us when he's going to leave the courthouse if this were -- tennessee, they would tell himg. california they keapght so guy is out on the streets. he's not guilty of the crime of burglary because he hasn't been charged yet but he's here illegally if i.c.e. e revealed he was there he would have picked him up in the courthouse but unlawful for the court authorities to tell i.c.e.. second statute even more problematic -- you own a business. a clothing store -- a restaurant, a supermarket. i.c.e. cools knocking, do you have any employees that are undocumented? do you have any independent venders that are undocumented? we're looking for so and so can you help us piked him? you're not permitted to answer -- so they have criminalized private speech in aid of i.c.e.. that is profoundly

unconstitutional. the state can cannot silence you. you are free to say to i.c.e. get out of here show me the warrant i'm happy to help you whatever yowpght but state cannot enforce silence because of the first amendment. >> but what about the federal government what rights do they have? there's a state rights conflict but don't they have a right to enforce federal law? >> they do, but they do not have the right to use state employees to help them in forces supreme court has been clear on that but there's a way around this. and it's money. it's your field. california -- san francisco -- 100 million dollars to buy new police or cars you want 250 million for furniture in your school this is here it is. but there's strings attached the strings are are you'll cooperate with i.c.e. they will take the cash no matter what the strings are, because still up for cash as republican congress does yet -- >> i feel like okay land they're so, mayor there and couple of other cities san francisco maybe turn down the money. >> i've never heard of a city

turning down federal dollars like that because they have to cooperate with the feds but it's not a loan. they don't -- they don't have to pay it back. but the money that's going to the states now, obama money. because we don't have a budget yet. if we have a budget and republicans put strings in the budget problem over. sanctuary cities are gone. pmpg feels like there will be a legal ultimately supreme court change on this. >> because we have judges going different ways throughout the country. >> thank you very much. see you a little bit later. real quick check on the futures again we have left immediately last night down more than 300 points points on the gary cone news coming back a little bit here. we have great economic data out already this morning i'll share with you later. meanwhile the deadline to get daca gone has come and gone and failing to take advantage while failing to help dreamers we have a democratic congressman had to respond to that laters in the hour and real progress is made with north korea they're promising not to use nukes on

south korea and they're also saying that they're actually pope to disarming themselves the gee denuclearize and duncan on house arm service committee on that one, next.

>> singapore based brod come pledging 1.5 billion that it will invest in the united states after government raised national security concerns over potential takeover of rival chip maker joining us now is duncan republican california also member of the house article ptd services committee. congressman, glowf been an outspoken critic of this bill. the sweetening it up a little bit here. what's your opposition to it in it shall is this the move in the right direction? >> sure. number one thanks for having me on, and he's what this means. with we've been having hearings on chinese takeover of small companies of two tore three guys

in a small garage who have -- fantastic new, innovative product that would be great for national security the chinese are buying them out now too. so let's -- bring that up times a thousand with the broad come takeover of it makes chip sets and make the 5g tips to roll out for the entire country. if brod come takes them over, it's going to damage national security fire department same way that -- in the 1930s if we would have let the -- germans take over our steel industry we would have not been able to fight them and japings and win in world ii it's the same thing now. technology now is the steel when it comes to national security. >> there was a point where brod come initially said it would move its headquarters its entire operation to america. would that be something that can get still done? >> no. now that's still in my opinion a very -- shore sided view point because they have that technology

transfer. china steel technology from companies that are purely u.s. owned purely u.s. located. china is still steals that technology. so if -- if china is a major player and there's still located here, that technology transfers going to it happen regardless of where they're at. probably make them easier. easier for them frankly if they're located here. >> next one for you congressman, i want to ask you about north korea, and this major announcement out that -- the willingness step up to the negotiating table even considered denuclearization a lot of folk looking at this skeptically and buying what are your thoughts on this and if it happens, i mean certainly this will be the summon of a decade. smg it would be summit of deck keadz. but the u.s. has been negotiating with north korea for like 27 years. they've t they have broken every treaty they've made. so -- you know, go into it with that

perspective. however, it's a fantastic thing that this has happening. this could be biggest triumph for national security for the -- world if you don't have a rogue nation who is going to be shooting off nuclear weapons that's a positive thing. so let's keep going with this. but we're not going to stop training or working with the south koreans and japanese in our allies. we're going to keep going once this is verifiable then i would expect that the -- administration and the u.s. to pull back slightly. but that's once it is verifiable. >> do you think this is result, though, of president trump's heartline stance not only militarily but also the recent pressure he's putting on china. the tariff argument. >> if possibly but i think it is result of a north korean sea and south korea during games and them l seeing what -- life could be like if you free your economy. free your people and allow market to work and have allies instead of treating whole world as enemy i think it has to do with that as well . >> sir about three years a

mobile alabama and said chinese bought soul foods restaurant there so it kind of reminds me what you're saying they're buy everything america is for sale. >> if you stop that too. you have to wongd per we're going to sell everything before it is over with. we really appreciate you coming on this morning. >> thank you. you've heard a lot a about trump and plans to tariffs but i don't think that it's all necessarily so bad one thing i want to do is lay out facts let's start a conversation based on facts. i'm going to set that record straight, next. mom, dad, can we talk?

sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed

across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> nation is embroiled in a tariff and possible trade war we should lay out simple facts and request ask questions to names that i've watched and who have watched themselves america lose a lot of jobs particularly in the hearth land first every country in the world uses tariffs right now. that's right. every single country and by the way you average on all products last in 2016, 7% high is 23% of the food the low of 3% on fuels. second, nations poised to dominate world economy in next decade have two things in common. superfast growth over last decade and huge afnlg tariffs on

imports so tariffs are the economic that everyone is saying they are, they are sure taking it a long time to slow down china and india and a lot of others. third china dominance came in government subsidies it is all beginning to ramp up. you can sew that ramp up in the late 1990s and america wapped haplessly 50,000 americans still workers lost their jobs so now same experts that cheer steel and aluminum appreciate low cost of their beer can. i'm not a protectionist but there's something wrong with our current trade agreements around the world. and i think it is time we need to stop screaming about holly every time anyone dareses to upset apple cart it isn't a trade war and we let me tell you right now. we're not folks looking to save a few buckses on next mercedes. once you're losing on ones in the heart land haven't had a job in a long time so let's have a

honest discussion. i want to bring in liz pique you're along with us and the company. all tell us 1930s didn't work that was almost 190 years ago. >> sourcing materials across borders and everything else gotten a lot more complicated by i totally am on your side in charles not that you've chosen a sides but truth is the united states is way behind eight ball in protecting our interest. that's just a fact. if you look at the world trade organization website, they have a map a global map showing by color average -- tariffs that are imposed by various nations. we are off the reservation in letting everybody bring everything into this country virtually for free. >> by the way our average tariff is only 3.5%. and other krpghts have anywhere from -- you know, ten to 20%. so it is really uneven. >> tokes well in the meantime market, though, is -- poised to open lower. about 250 o point it was down as much as 350 points another wild,

wild dane the market we appreciate you keeping here. buckle up "varney & company" is coming right back. hello. - hi. how's it going? - alright, how ya doing? - welcome! so, this is the all-new chevy traverse. what do ya think? this looks better than 99% of the suvs out there. it's very modern... sleek. maybe the most impressive part of the all-new traverse... is what's on the inside. surprise! what are you doing here? i've missed you guys. i haven't seen you guys in so long! what's happening? we flew her out. it's a family car, we had to put your family in it! yeah, it gets 7 thumbs up!

>> well opening bell is going to ring in just about 20 seconds. a lot of anticipation remember

we've been on a wild ride even before today and now, of course, for those folks out will who thought perhaps the markets needed to test those new lows. we may actually get a chance to on news gary is out resigning from his post top economic advisory for the administration. wall street to globalist not like it ringing bell is populating board automatically a lot of red. kat till particular you notice biggest loser one of the companies that uses a lot of that still aluminum that will be imported cons qengtly would have put some pressure on their margins. but we're going keep watching that, of course, and unlikely goldman sachs maybe in the notion that gary cone will go back is only stock down this morning. let's take a look at the broader index s&p 500 that is what wall street uses now almost a percentage point down 23 points finally nasdaq which has been hanging in there pretty tough. resilient tech names held up well and we're down this morning and again listen to the big

banks under a fair amount of pressure this morning. more than 1% those are some big losses double the lawsuit you inked city now we check them on "varney & company." all of them down considerably although they've made some enormous runs here of late. and they're sort of matching the market if not going to slightly slightly better. joining us studio right now ashley webster liz peek, liz, mcdonald shaw -- all right folks out investors well certainly wall street doesn't like it. shaw, another wall street temper tantrum or something deeper here? >> it may be a bit deeper but on the surface it looks like a bit of a temper tantrum but more over that that is state of disarray that administration appears to be i think that's the market's problem looking for a firm pooting that wants to go higher an hasn't found ground to step on and longer markets are subject to perhaps testing those

lows again. >> we also sorry -- ashley we have 14 republicans opposing what the trump tariff -- saying in india and calling off manufacturing there. we have to watch boeing, i mean, they are the biggest global -- user of aluminum could drag the dow. but the question is will the president back off? will he do more targeted surgical like paul ryan suggest and since he got elected tout oing the dow if he continues to see dow rocky he could say you know what, become and dubai lateral targeted tariff. >> great tax reform through -- deregulation he's just one guy. doesn't mean that tax reform is being revoked the economy is still showing good signs of growth moving but all in all the outlook is green light go. so yes i think that market is having a bit -- >> pick up on what you said economy is showing us growth but the jobs report this morning.

235,000 jobs -- 37,000 jobses in a good for that and includes 14,000 manufactures 20,000 construction. service producing jobs 198 thorks. the fourth consecutive month at 200,000 plus jobs that has jobs bonanza. s did levels so it is last tbhongts of gains. >> i think that issue or is exactly we don't know what the tariff -- is in. because it is going to look leak steve mnuchin talking exempting not only with nafta but china and south korea so it seems to me like it was a negotiate tactic on part of trump. we toangt know the outcome and market hates uncertainty. >> so fact of the matter shaw this is more about nafta than anything else. let's face it in 2017 the eu placed tax cuts on dumping still in yiewmp in 2016 opinion the

commerce had 2010% on many companies in china so not necessarily it be that. but nafta as well. what are your thoughts? >> well this isn't a surprise. i mean, donald trump campaigned on doing something about trade and he's trying to do things u now. he's taking time about it now and stepped into it. i think it is. but that's how we operate he throws a bomb if you will out there, and shakes up even. everybody wondered where it will fall out and that is nothing because it's a lot of it back. [inaudible conversations] >> with tariffs, tariffs aren't a problem. >> okay. after the close yesterday mexico announced autoproduction so far the first of the year. exports into the united states of 9.5% on pace right now to produce $4 -- 4 million cars this year. liz this is what people who voted for president trump worry about why couldn't those cars be made in america? >> when obama enacted standards

it was really costly to build a little smaller cars in the u.s. and put them in factory making capacity into mexico. so i think this is really a -- reality check. the reality check has bounced on o the trade situation. and like what art laugher said last hour that you know we don't we're not protectionist nation. but there has been disparity inequitities in trade for too long. >> we've been taking advantage it have. we have a 800 billion trade deficit this year. that is economic power and we don't use it. so you know what, i think maybe time we do use it a little bit. >> other stories and big stories out there including fox saying they want to reduce ad time to two minutes per hour. that's in 2020 -- all right so liz what do you say about that? i've been talking about this for a year there are too many ads on tv and you know what, nobody wants them nobody watches them. why not double the price and cut in half. this is even going further than that. i think it is brilliant move and has to happen.

>> the netflix absolutely. otherwise you watch something like the crown and there are no commercials -- and people get spoiled by that. >> universal is doing something similar. >> franks passed a baa that commercials have to be entertaining that might help too. >> and in french. >> big news, i happen i was in weight watchers took profits week away and hammered yesterday. well we found out why. oprah winfrey sold share he is in weight watchers donated a portion to her charity. emac what do you have to say is about that? >> sold 142.7 million dollars worth of shares. it was about a quarter of her holdings she donated 2eu.4 million to her charitable foundation she still owned a big block more than 313 million majority share holder in weight watchers. >> hard to believe it went to 10 after they have a bad earnings report. and 70 and 60 now. just -- just amazing opera winfrey on

this. doapght vote against oprah. not against her on any of this stuff and it goes to show you. you can can resurrect because weight watchers was dead. magical brapgd she really has a magical brand particularly with that market. smutted and wessen is weary of adding smart technology. shaw i think this is dumb. i believe that these guys are making a huge mistake they don't read the newspaper or see headlines. smart is the way to go particularly when a large portion of the society is pushing against their product. i agree with you when they're global and certainly no national events, that they should be, you know, at least on the front of. i don't understand i don't know why what the problem is with smart gun. anything that makes weapons safer. i think is a smart move i don't know why anyone would resist thinking that.

>> there are manufacture company not a technology company but can't you be both? >> get some help. they have to be both. >> well what are they -- eve this to lead otherwise they get crushed. >> what about silicon valley decided to be hey we'll get into this and the idea you can sell a gun that only fires the parents fingerprints are on it or something look that. it's -- as a business you yield to the consumer basis in society. you don't just say draw a line in the sand an say this is the way it is my way or no way. by the way, earnings that were out recently and guidance was crushed absolutely decimated. so you know they probably should be out trying to turn thing around. by the way i want to point out we're off -- we've covered 100 points from the dow from the open. so yawn what we collapsed a start. some buying, obviously, already whatting. i always say buying before 10 a.m. sort of speeches weigh for pros after ten. let's get a quick check also do

we have the s&p as well? let's switch gears because retail is going well the last couple of weeks but couple reporting last night, profits at urban outfitters always hit or miss and this time they beat across the line but the guidance was slower. management saying it's just more about a competitive industry right now more than anything else. and then there were higher sales over alabamaer abercrombie and fitch and really nice thing they're up u. and dollar tree sales this was an a absolute mess and getting hammered when you mess these you pay a huge price for it. all right liz, shaw thank you both very, very much let's get a quick check of the big board because we're doing better. we're about we could say we're down 00 points or up 120 since the open. i'm optimistic i like to look at it that way. wal-mart dicks sued on gun sales age restrictions and not selling

to anyone urptd 21 man is suing says he has a right and they're being violated. his lawyer joins us in the next hour. and president trump says that the blame for not fixing daca lies on democrats he says they don't care about the dreamers. democrat congressman tim ryan will react to that, next. whoooo.

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dollars of etna so they're putting out their corporate and $40 billion for largest in two years in order to help pay for the deal. they're doing it early, and before they even need the money while investors are sill interested. i mean, the idea is that if there's going to be a flood of bond sales going forward, thin invest or force may not be interested in corporate debt the way they are at this time so they're putting out there seeing demand for it and trying to get ahead of the rush. and treasury u.s. treasury is going to be putting out, obviously, bonds as well and that will be 42 billion dollars in additional ponds between february and april and probably more in may so they're beating the rush. >> nicole thank you as always appreciate it. >> and now there's this -- now netflix ceo has no interest in one oscar winner intersty proposal you have the details. >> car winner francis she made proposal in her acceptance speech that actor and actress should ask for inclusion writer

in the contract where that actor or actress demand a more diverse cast and crew. he's saying with saying i'm not interested in that but rather have my staff talk with the filmmakers about who they want to hire. now net flix is under fire with a all white male boards and minorities are stepping now pointing fingers become at nets flix. what are you doing in materials diversity in your -- >> obviously a very, very touchy issue and everyone want mrs. control they want more money. you know, but netflix is a power house so 6 billion -- yeah. 8 billion. on movies so -- they're like a force to be reckoned with. yeah. but they hired shanda rimes. >> right. so -- 7 3w-8 in the meantime folks get ready i hope snow gear didn't put it away yet because we have a snowstorm slamming northeast.

>> how many flights are canceled? >> flight aware.com i have 4,200 flights across the country canceled already. and this thing is just getting cranked up up 18 inches of snow in parts of the northeast. as you would expect awrpt is affected most in newark, new jersey 46% flights at last check have been canceled laguardia 44%. jfk at 38%. and of course this has the domino effect just as day goes on. rip are l effect. boston now you know we've got about 16, 17% of the flights have been canceled it is going to get worse from here. through the rest of the day and probably early into tomorrow. >> a nightmare. thank you very much. and now there's this -- the daca deadline has passed the president blaming the democrats this is once we total in action on daca but dems where are you in a deal can't be made. let's bring in ohio congressman tim ryan are congressman -- what's your take on this? >> well i think there's an

opportunity you know, clearly we don't want to be where we are which the president wouldn't have kind of caused this whole issue. but i think there's -- >> which president? >> president trump -- >> let's face it the whole thing was done by, you know, executive order and executive by president obama. and president trump is extended timeline so i'm not sure we should be blaming him rather than at least congress who had a chance to do something both sides. >> we don't need to blame anybody but sit down to fix the rob. this is something that everybody an issue everybody agrees on. seems like -- 80 to 90% of the american people agree on this. let's get it done and get it fixed and i think supreme court rules gives us a little bit more time to try to solve problem but let's stop blame game to get it done and start getting things moving in d.c.. >> all right also, this morning secretary steven mnuchin on mornings with maria and he has this to say about tariffs and -- about about fair trade i want

you to listen to share your thoughts with us. >> okay. >> watch and fair trade, so we have issues in a big reason why we have trade deficit is because we don't have resip are a call trade. so tben, we want our markets to be the same with china as their markets and -- the president china, obviously, largest portion of the trade disetion and president is very focused on making sure american companies are treated fairly. >> congressman ryan your take on these tariffs proposed tariffs. >> well i think ones against countries like china that are clearly cheating they're dumping steel have been for a long time. their final product is the same cost as an american company raw material cost as they begin the process. they're cheating and we need to -- appropriately respond to that and there are legal remedies like the tariffs duty and antidumping provisions that the president is putting on.

and i support that. what i don't support is the process or lack of process that he did. the unintended consequences that come from that and fact you're throwing in kntd and germany and equal labor starpdz all of the rest. you know we don't need to do that. there's nuance to this stuff while i support what's happening with china and countries that are cheating, i think he went way too or far and i hope he narrows this up as he moves forward this week. >> one in you went on investment tour through several heartland cities, share with the audience what you saw. we did a come back cities tour. congressman and i from silicon valley. we brought 12 venture capitalist we started in youngstown, ohio we went to it akron, flingt, detroit, and south bend indiana and what's come of that is the beginning of relationship with high powered venture funds in the country and these comeback communities that have good technologies. they have a sophisticated

ecosystem that they're continuing to try to develop. but they need that private investment and so we're trying to bridge that gap. you know the government can't do everything we need private investment and funds to create private sector jobs and we're starting to take great strides. 80% of venture capital money goes to three straits, california, new york, and massachusetts only 4% comes to midwest and 10% goes to women so we need to make sure we get that investment into our communities if we're going to grow the economy and have sustain growth all over the country. not just in a couple of pockets. >> well congressman i have one word to say to that amen, and thank you. we appreciate your time this morning. >> thanks very having me. check on the dow 30 we came become here a little bit now you have stocks in green caterpillar, of course, getting hit the hard test would have probably biggest impact input impact with respect to -- possible tariffs on steel across the board also i want to check this out it is an app that is called cargo x basically it is

über for trk drivers and you fire up the ad and it and a halfs you with a trucker who has some extra cargo room. guy who created it is coming up right after this.

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>> now this, this dish dishwasher turned entrepreneur powngtder and ceo of cargo x it's über for trucks come on in, and tell us your story, that über for trucks. >> i -- i was born traveled by bicycle for a long time when i went through visit lag just like amount of trkingses they saw in the road it was mass haddive and then -- the truck stuff -- truck drivers, and that's how the idea kale u out like you know, typically when people complain about something it is where opportunity exists. but i thought it's like solve the problem that truckers complain about which is how do i get two complaints how do i get freight in another way because i'm looking with truck empty and two we need to, you know, why i cannot work with the owner of the freight. you know, that and why do i need to go through carrier. why do i need a medal man that

makes the minnesota. money so what i thought at the time is with an app i could connect own or of the trait. the industry -- with the truck driver that does the job, and you know we can take the middle man out and then we can, you know, connect the freight with the capacity of the market. and then truck ar -- >> with the deadhead they dropped off a package and now they have empty truck or saying now you get orders from both sides? >> no getting orders from both sides we're talking about large trucks that they go between cities. so they have 250 in truckses in the therk. so what we do is that we enable the owner of the freight to post the load into the internet and then with an app that can book the freight and we provide a safe environment with freight insurance, and gateway et cetera. >> been doing this for e years in brazil what do you experience? >> grew 750% --

very small carrier went out of business and 47% of the remaining care yours went down in size in revenue. and a now revenue from -- 100 million in two years. real quick before i let you go. any chance to bring it to america? >> probably. we're using because the third of largest truck an market in the world. and there are a lot of trucks there. so -- >> congratulations that is absolutely remark haddable. great stuff. great stuff. appreciate it. thank you. now democrats latest strategy to win swing states in midterm election blorkt they want to run ads attacking ad tax cuts it and we're actually going to show them to you with right after this. copd makes it hard to breathe. so to breathe better, i go with anoro. ♪go your own way copd tries to say, "go this way." i say, "i'll go my own way" with anoro. ♪go your own way : .

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>> on the east coast 7:00 a.m. out west, the market is down. we are way off the lows this

morning. president trump said he will make a decision very soon on economic advisor later, we have a ceo who was changing phone calls with : before his departure he will tell us why he sewed siding with him versus the president. >> oregon state law allows people to buy guns at age 18. we will speak to a man's lawyer who said he was denied buying a gun. and next. [inaudible] you are watching the second hour of learning and company

-- "varney and company" check out the big board. it's me and the rain. we were down 316-point and then 150.1 finding a spot but there is somebody on a different initially. how do you get the rest of the crowd to jump in. big tax usually lead the way every day but they're under some pressure. nothing astronomical. the big loser the dow is caterpillar. they use a lot of meddle in the product. them as netflix after three days of all-time hi, getting a downgrade today. they think shares may have gotten ahead of themselves. dollar tree have lower same sale stores. that cannot happen in this environment. president trump is tweeting about the new search of his economic advisor after the resignation of gary cohen.

joining is now a senior editor and trump for president advisory committee member. so far the market is not happy about the gary cohen resignatio resignation. >> no. caterpillar was down 5%. people talk about the cost of steel. caterpillar will be able to absorb that without much problem. i saw one analysis of the could be a 4% hit to earnings next year. the bigger concern is that half of the sales come from outside the u.s. it's not the immediate effect, it's the follow-on effect. >> right now the stock is down about 1.3% but had an enormous year last year. bowling is the same thing for this blows up it would be

tit-for-tat. >> will be hard for manufacturers who are only thinly profitable now. but the large manufacturers will do okay but a trade war will totally change things but this was a concern we didn't have months ago. who are the companies that have high overseas sales? what companies with a target? >> we know you targeted bourbon and motorcycles because they were going after nancy pelosi, mitch mcconnell and ryan to put the pressure and trump. that being said, a trade war, lasher we had a 375 trillion-dollar trade deficit. where will china get that money from?

>> i just don't understand why we are taking such rash measures. the only country we should be acting against is china. they should be targeted tariffs rather than worldwide tariffs. for every worker in america making steel, we have 45 making machinery. let's focus on them. >> isn't that being a little elitist? >> personal u.s. steel was going too post its biggest profit in ten years without the tariffs. after the terror, but think bank of america downgraded the stock for u.s. steel because they think this will be bad for demand. you're not even helping the groups are trying to help with these bad ideas.

>> you are a hartlin heartland guy. >> i was just in ohio yesterday. they used to have an enormous steel economy. i keep hearing that the trade deficits are good. try expanding that to someone in ohio or parts of michigan where this was an important industry. it's not just deal. many any fracturing industries have been obliterated in the name of free trade well cheap product has been dumped in the american market. explain operative trade deficits are good, if this massive outflow of american capital is good for americans explain how that is because they don't see a when i see it

in the roads and bridges that are deteriorating and the people who don't have jobs. i see it reflected by the fact that trump is in the white house. that is why he wants. >> employment in america has been growing for eight straight years. who do you want to protect? >> also jack, we do have tariffs on pickup trucks. 25%. if we didn't have them, automakers would be broke. what's wrong with doing that to other industries. >> i want to be careful about measures that are so broad that they bring a trade war. steel is great. i'm what about companies making escalators and cars and trucks. >> 14 republicans are saying the same thing as jack. you had to be careful that you don't have collateral damage. >> it's one thing to push back

and say a lot of people is talking about what is the solution? [inaudible] that's a good word, but what does it mean? >> u.s. steel is a must for possible since the first tariffs on china. we need to do it better job of diverting shipments through other countries, true but we need to be smart about how we do it. >> china could easily shut down this entire market. they've already been giving u.s. companies a hard time getting an not to mention the intellectual property. >> we bought $500 million from them. i don't think he wanted economy that's trying to shift to a domestic economy, he just crowned himself emperor.

>> he went advice we can ask instead of a scalpel. it was 25% and 10% and that's all the detail you got. >> i understand his repercussions in the market and people don't like it but give it a chance. >> what about people says don't worry this is what trump does. it makes me worry that the best arguments, don't worry, you can't congressman to do what he says he will do. >> he's done everything he said he would do. he said this at every stop. >> i don't. [inaudible] >> , mick we will get 25% or up. >> i think a lot of experts need to talk to the same folks because their tell me in short-term they're willing to pay more because they know we won't get still factors -- factories overnight but if it

brings back manufacturing they will make the sacrifice now. >> all right guys, let's talk about the democrat, there's a political action committee and its attacking the past law. it's been working out pretty good. this is a heckuva gamut. >> it's a bold strategy. this will be a losing message for them. we saw they built up expectations and taxes and there would be massive turnouts for the democrats in the primaries, it didn't translate to a democratic wave that will carry them too victory in november. they are overplaying their hands and i think they would be wise to revert to populace

message and move away from some of the. >> there like the walter mondal mondale. >> jack, i got to ask, the notion that these are crumbs, i'm working on a piece that bank of america said they would open a bunch of branches. each branch costume and dollars to build in and have ten employees for this isn't just about the bonuses or the money that they seen their paycheck. it's about broke longer-term. >> you have to be careful. people getting extra money, there are ready getting it. no one's telling the truth and the taxes. the democrats were wrong. we really did need corporate tax cuts. our rates were not competitive. republicans around because on the individual side the tilt is wrong. most the money going to the rich and not the poor and those cuts for middle-class -- >> that's not true. the liberal tax policies said what you said is not true. the middle class is getting impact. >> by the way, you know it's missing in this argument?

60% of households get more in federal benefits. >> by the way, none of it is paid for. were complaining about deficit now with tax cuts? >> all right, we'll leave it there. check this out. before mcdonald's became the behemoth we knew today, it started in 1940 with nine items only three of which were food. the most expensive items was six cents for a triple thick shake. later this our former commander kirk loopholes is with us and tell us if he thanks kim jong-un will really do the right thing. the mass exodus, we been talking about it for a long time. you are watching the second hour of "varney and company".

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check on the big board, the dow is almost one hundred points lower but it's running out of steam. they reported the numbers in the street that they loved it, record highs, losing a lot less money and that stock is screaming. then there's oprah winfrey. she sold some of her weight watcher shares and donated a portion to her turtle foundation. the stock had hit yesterday and now is turning back up. it has been one heck of a swing. and now california, illinois states are quickly losing residence to lower tax states.

idaho, texas, florida and tennessee, our next guest helps people get the moveon and settle down and estates relieve themselves from that tax pressure. let's bring in paul, what do these blue states think? they keep raising, maybe they've crossed the rubicon and can't come back like a connecticut but don't they see this mass exodus? >> i would hope they certainly do. things have drastically changed in the last few years. our business based in texas helps families move and what were seeing is a complete change of states. california once a conservative state, some of the best schools, low crime, great paying jobs, now is your network points out, many parts are like a third world country. they have pension deficit, crime, drug issues, and for the most part what you have left now is the coastal, liberal elite or the working for. those families and those jobs

and small business owners are those are coming to us to help them relocate. >> there's no doubt. los angeles, it's the best of times for a few in the worst of times for more. 55000 homeless people sleeping in campers spread how did you get the idea for this. tell us how well the business is going. i would have to imagine everyone might be calling you up right now. >> they're coming from all states new york, new jersey, oregon, california and they're moving to a number of states. texas is number one. interestingly, idaho is number two. arizona's america florida, number of state but my wife and i, we have for young children, we were born and raised in california, a traditional california family, 43 years but that state has become an absolute mess. i was a law enforcement and

military for a number of years and what you see are these massive tent cities, notability for crime, schools in the bottom percentile and difficult to afford a home because of regulations, not to mention tax or gas tax. we moved to texas to create a new life for ourselves. when we moved there we rely so many people had moved here for the same reason we did and that's why we created conservative moved to help families sell their homes in blue state, by and red states and the third aspect is helping them find employment. >> too do all this stuff, do try to secure employment before they move was the confidence level so great that was just a buyer for your house in a new place mortgage her job within a short period of time? >> the confidence level is tremendous. out here in north texas, one of the most booming areas of the country with jobs, major corporations that have left california, toyota closer north american headquarters in california moved it over here to texas, thousands of jobs. they can't find enough workers but i'm told by our engineer recorder they cannot find enough engineers in texas. 100,000 plus but in california

they are are unemployed because is no work for them. there's definitely a better opportunity in these red states. >> what about east coast version. new jersey just hired a governor who has lost his mind. there's already been a massive exodus. it would seem to me like a next big location would have to be maybe florida or charlotte or these kind of places. >> we absolutely are. we have a hundred agents that work for a spread out across the country. they invest in their communities and know their region. they know their demographics and jobs and income level. they really understand schools. our school district has a 98-point to% graduation rate. that's unheard of in california. many of the people who are leaving are these middle-class families that look around and say i don't even recognize my community anymore. they look at the drugs in this range is pretty solid happening in san francisco with feces and needles and

children having to walk around that and the politicians in california could care less. >> unfortunately people keep voting the same folks in. paul, thank you very much. good work in good idea. >> after getting turned away when he tried to get it done, he got a lawyer. his lawyer joined us next.

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suing dick's sporting goods and walmart over the new gun policy. on the phone is his attorney max whittington. max, first walk us through tyler apparently tried to buy guns from both of these retail establishments? >> yes, that's right. thanks for having me on. my client, tyler watson, he wanted to purchase a 22 caliber rifle from dick's sporting goods a few days ago. he would deny that purchase. he then went to walmart a few days later and was a again denied a purchase. at both locations the store cited their new policy is not to sell any firearms to anyone under the age of 21 was the reason my client cannot purchase. >> doesn't this conflict with the state laws that right now currently allow 18 -year-olds to buy such rifles? >> yes, it conflicts with state law about the purchase of rifles. it also conflicts about

unlawful discrimination in places of public accommodation. under oregon law, 18 -year-olds can be discriminated against for purchasing goods at stores. >> is that what you would call a protected class in this case? what gives them this right? >> it's based on oregon statute law and any adult, 18 - 20 is a protected class. >> if we see movement in a state like oregon which would it be inconceivable because it is a progressive state, would there be a federal case based on the first and second amendment. >> there are probably second amendment implications and possibly a case to be had there. this case you have to be hashed out first read this will be based on statutory law.

if this is ultimately changed, there will be second amendment challenges, i'm sure. >> you just want to thank you very much. we appreciate you coming on. >> thank you. >> gary : oppose those. a ceo who relies on them and was exchanging phone calls with him before his departure will tell us why he disagrees with president trump. ♪ ♪ ♪ ♪ ♪ ♪ we've been preparing for this day. over the years, paul and i have met regularly with our ameriprise advisor. we plan for everything from retirement to college savings.

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stuart may be out but he's always here in spirit. [laughter] got to play beatles. talk a look at this. this might be the best level of the session we're shaved half the loss off market regaining a little bit of momentum here. remember down 212 points at the worse case for the dow industrial average. weekly inventory numbers breaking right now. ashley. >> we have a build of 2.4 million barrel that's just a hair under what we're expecting but it is a bill. well it was down, in fact, oil -- basically being in lock step with tooks as for last month when all goes down market is down and stocks stocks are downd vice versa so 2 million barrel bees in oil you would not think that that would put downward pressure on oil price right now. been in the same range for quite a while. >> there have been what does that mean global economy is slowing down a little bit. but not using as much. fnlings also are producing a am

of oil. we'll see. >> thank you. big tech that i ams. they've held a market up, in fact, if you take out like the top three amazon microsoft and market would be way down this yore. you can see now amazon back to its anding ways in rest of them holding in there pretty good. on other end of this spectrum they say but the guidance is not good enough for wall street down more than five percent and then higher sales over the holidays for abercrombie and fitch look at that takeoff up more than 12% and more retail for you in a home. but right now president trump economic advisor gary cone is out and market is so far is not happy about it. ing making it more likely, though, than not that president trump is going to be ahead with this plan of still aluminum tariffs perhaps across board although treasury secretary spoke with our very own maria bartiromo this morning about this very thing. >> the president is not going to

do anything that creates jobless in these other areas. we're going to be very focused on impact on jobs. >> joining now to discuss canary rei you worry, though, about these tariffs and the effect that is going to have on the economy as well as from the administration. right? >> yeah. thank you for having me i'm worry about both and his departure and i think this proposed tariff stuff will have a negative impact on -- on me and my industry. and as well as the overall economy. >> i'm sorry my producers in here i want to share this breaking news with the audience and get right back. because according to act deals reporting president trump, will sign a proclamation tomorrow on still aluminum tariffs deal saying earlier this morning sarah huckabee sanders said it would happen early next week but now hearing at least from ones source then that this will be tomorrow. what do you -- you don't like him. but what, what your business

what industry is this in? >> so we're oil filled company and we take raw steel and recreate manufacture pressure control equipment. factories for the oil and gas industry in the u.s.. >> so, so your argument is that it is geng to make -- business, you know, more expensive for you and for caterpillar and boeing and more expensive for industries, ultimately the math doesn't work out it will hurt more people than it helps. now the pushback from economically and politically is that we've been in a spiral with manufacturing we've been in a death spiral with job in the heart land how do we reconcile that? >> well about i think that this actually accelerates the death and manufacturing look we're already seeing since thursday, steel costs go up 20% they used to hold quotes open for two or three weeks now we're seeing quote on price only hold for a day. so this is going to make us have to change our balance between

u.s. manufacturing and what we get manufactured in china. to more favored china and less paverred job here in the u.s. i think it is really a shame. i don't know why the government should be picking winners and losers in terms of -- why does the job and seal industry more prnght or more valuable than a job at ka that y rei. >> maybe picking americans over chinese? >> i don't think that's the case because i think that if american manufacturing to be competitive i think we need to be able to buy lowest price steel we can in our industry with gases we're competing against opec. so if our costs go up that's helps opec it's a gift to opec not a give to american industry at all i don't think. i think trump support or by i think this policy is completely misguided. >> does it bother you to perhaps you think you're buying product subsidized by a government -- that just their goal right now is just to put us out of business. you know, to just like when opec

took off the restraints and let oil prices collapse they were trying to kill your business. they were trying to kill american frackers we didn't salute that. we didn't applaud it. we have to deal with it. do you think that right now the idea that, that we would buy this cheap steel that's been dumped for decades is the right thing to do? >> well, i do. i mean, i think free market solved i think it's a matter of -- >> how free is market dan if they get to subsidize this stuff and lose money on it -- in order to take market share? >> well i think that that's -- then that's their choice. that's not something we can control. but i think it goes back to -- economic 101 and guns and butter. we have to do what we're most efficient at and if somebody else is more efficient and willing to sell it at a lower price we should go with that. i think it ultimately helps ka that canary and oil and gas company and more buying power. >> i hope we have enough steel to make our own guns at some point. thank you very much man, i appreciate it.

thank you. >> thank you. i want to get back to the market joining us now advisor president, advisors president -- jason rothman. jason saying this action happens tomorrow. market actually improveed after this news is out. i'm not so sure if market is getting prepared for it or ready for it or maybe there's really a great notion that canada, mexico will escape the news. what do you think? >> well i think we're following a -- very, very classic time tested market pattern of the market getting another a market trying to price in the leading up to the news start the past couple of weeks everybody is starting to get scared and then anticlimactic and priced in so market is telling us right now charles that like he said not trying to blow up the the world with tariffs but trying to get a fair deal. i think if market was really that afraid of tariffs we would be significantly lower. that's any stance. >> so what about nafta because we know this is really part i

think part of a larger play rightening this is just act one -- and in a big play here is how do we really write the tables? we've got -- 375 billion dollar deficit last year with china. 71 billion with mexico. 151 billion with the eu how do we change that around a little bit, and what is the market willing to absorb while president trump tries to make this happen? >> well, you know it's a -- it's a highly complex puzzle because nothing can be viewed in a vacuum and i think president trump -- knows that. he's not a politician. he's a businessman. so he understands that by lowering taxing that will stimulate the economy and look at the jobs growth number that just came out this morning. from adp25,000 so i think by having a -- a slight increase in the price of the cost of goods that we pay -- with the tariffs he's looking at that's not going to outweigh all of the other good thing he's doing for business and a short-term -- negotiating tactic anyway. >> so let's go to ire area that

you like retailers it has been miss sod it was up huge but this week we've seen it down and, of course, they're still, you know, some brangdz at least 23 of them are shutting down their storeses so we -- you know, all of the that stuff from last year, hurting -- we know it is all about online -- foot locker is out you know macy's closing stores. payless toys"r"us. so you -- you expect some will survive retail ice age and could begin investment? >> sure i absolutely do and thing that comes to munged with retail charles is that, especially now -- more than ever -- if you're a retailer, you really, you really have to have a very, very unique usp selling proposition. if you're just selling clothes you're selling shoes guess what that worked ten years ago that doesn't work now. costco has a highly unique selling proposition you're not going to get those prices online. and even if or you are you are going -- costco sells food, home stuff and deals in stores they pay you

a dividend and starting to sell cars now they give you cheap gas. costco is physical a.m. l dison i think costco will stay arranged for a long time. >> of course pretty good at that channel stuff too. jason thank you very, very much appreciate it. >> absolutely. now this in 2018 alone 91% of media coverage from president trump was negative. i know that's not man bites dog stuff but it is still shocking isn't. media research center evaluated 00 comments from anchors on cbs and nbc painted donald trump this a bad light. talk to author of media madness -- howie -- does this at least validate the idea that -- you know, trump has a warn immediately but feels like media has a war tbens president trump? >> it is a war scorched battle on both charles and other studies from harvard and other places have shown also -- hovering arranged that 90% figure for major news

organizations now that's not to say that every single negative story is not deserve withed and this president sometimes says things and does things that generates bad publicity. but you've got to think, you know, nine out of ten times he hasn't done anything right doesn't get positive credit it makes you wonder and understand really why the president -- is so resentful toward what he sees as king king consistently r coverage. >> when numbers get that egregious for sure. i want to also talk to you be the media disaster surrounding trump's ex-campaign staffer sam tell us your opinion on the media -- you know, the treatment of this sort of like you know with who went all other the media -- you know sort of made a fool of himself but was allowed to -- is that in another example of how journalism is really been replaced with something different? >> i have a little bit of a view of this certainly after the

fifth or sixth interview that sam did it, it seemed like a bloody price fight that stopped. steppedded in and stopped. but at the same time, you know, he is a grownup. he is been subpoenaed by special counsel. he wanted to talk and talk and talk and talk and say all kind of reckless things nobody force od him to go on cnn, and other shows -- you know there's a thing in cable as you know where each anchor is responsible for his or her own hour. and so you want to get your own crack at the guy but it is pairtsz fair to say there was piling on by the time the evening roll around a question about whether or not he would been drinking he went on with aaron burr met it was the news value of what he was doing. s was really shrinking the entertainment value, though, i guess is pretty high which is why people kept putting him on. >> i smell alcohol on your breath -- do you -- can to you continue to go with the interview or do you have

second thoughts about that? >> yeah i would have second thoughts at the same time you know he didn't come off as unhinged or you know unable to string sentences together to he was saying reckless stuff throwing out charges that are against people around donald trump. but -- you know, he was in the news, i mean, it is unusual you wonder where this guy's lawyer is maybe he's dumped him. but to let the client go on, and just say i'm not going to cooperate with mueller and then say all kiengdz of other things some of which he's apologized for but i don't think it is necessarily our job to stop him from self-emulating. pongedder whether or not his lawyer was going to dump him. appreciate it. thanks charles. check this out for the actor who plays the mountain in hbo hit show game of throwns also a professional weight lifter break a record 10 pounds more than previous record. wow. >> but first --

north korea is willing to talk to united states about giving up its weapons and frump says, he thinks north korea could be sincere. former comangder of the uss coal cole is with us to give us his take, next. with expedia one click gives you access to discounts on thousands of hotels, cars and things to do. like level furnished living suites for 45% off. everything you need to go. expedia

>> in the last hour, former reagan economist talked about gary cone's departure from the white house and why he's sorry

to see him go. roll tape. >> i like gary cone very, very much i thought he did a terrific joan are an sorry he's deit parting i think there are lots of other kaingts charles that would very good in that job. obviously, my dear friend larry i think would be as good as anyone. but -- but cone was very good he did a great job in the tax bill. he's a very thoughtful clear thinking person. and -- i thought he was just -- handled himself beautiful lis and -- i don't think he left because of a conflict i just don't. i mean trump's comment earlier is -- we like all sorts of views. that's the right way to be president. and that's the right way to be an advisor he's the advisor he's the president.

>> now this, cautious optimism on the korea i can peninsula as they sit down for unpresident nuclear discussion with the south korean counterpart so commander do you think we should take them seriously? everyone i talked to is skeptical? >> you should be skeptical. the first thing we should do is allow them that opportunity but at the same time we with have to remember ticktock goes u nuclear lock every day they're spending not working toward denuclearizing is another minute another hour they're spending building weapon that can survive reentry to get to this country.

continuing to leverage the ballistic missile technology that they're working with iran to make sure it can get here. so while we can do it, we still need to be and continue the planning to harden the sank sanctions squeeze them and china who is enabled this to happen even eventually plan for military action if necessary. >> speaking of the angle here a lot of people don't think it is coins tent this change of heart -- whether it is sincere or not came right after the threats of tariffs against china. were talk about by the white house is there a cause and effect there perhaps? >> absolutely. when you look at it from a business angle the reality is we're going to have to continue to squeeze china economically had is beginning to impact businesses there and here at home. but if we don't do that, the consequences qowb dreadful. look at how the markets reacted after 9/11. can you imagine what they would do if there's ever going to be a

the united states has been threatened offensively with nuclear weapons. we cannot afford to led them get that technology. >> they haven't had a test since november. but they're -- the ability is so much better and certainly if you go back and you read articles from two years a ago no one they would be they are where they are right now. how much team do we allow them to pest this because they can put some sort of a warhead on a missile that has the ability right now they hit any part of america and that accurately but they can do that and only a matter of time before they can pinpoint a target. >> you wouldn't need to have the accuracy. if you hit somewhere -- los angeles basin, the effects are still going to be the same regardless of whether you pin point a facility there. >> great point. but when you look at what we're doing the intelligence has to be there. we need to get the intelligence anding warning. it is a losed country sos that very difficult to do but as you mentioned given the exponential rise in advances in technology that they have had, that time

line for us to be able to do things is wrong. we need to be able to leverage china more which means going after their banks, their government facilities and their industries that are aiding and abetting au lowing this to happen and chinese are not going to be happy. they're going to squeal and wine. they're going to react economically against us. but the consequences of the wise are too dangerous to not be able to do that. >> are we gaming out at this moment, though -- the potential outcome it we went on offensive military if we took offense oive military action are we already starting to figure out -- because that has to be equation at some point. >> and it is, it's not even figuring out. we have looked at and deck kids what had happen in north and south korea with the united states being involved goes into a full blown conflict. how are we going to react what are we going to target? what instrument ises of goth are we going to have to go after. so -- >> it would be massive death and car thaj. it would be huge but reality is we have to look out for our interest first and if we don't,

japan and south rae are going to bear brungt of it as well as us. >> man thank you very much. up next a hillary clinton staffer wants a cpac and she has a good time. imagine that, and guess what, she's with us next.

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>> to now this a member of hillary clinton's team goes to cpac. come on in, the founder of the flip side.io so you wect as a clintonista to cpac. you wear armor what wases it? pfnlg so i wupght wearing my strong put together t-shirt but basically you know half way through the first day i would be walking down and people would say hey here comes the in the. and it was so great. everybody was so friendly so welcoming i had a great time. fng what was your intex intention why did you think you had to go there? >> since the election i was bridging gap and flip side.io to give snip its from liberal and

qeivetive media. our hope is that if everybody takes five minutes to read flip side we have a starting point when talking to friends and neighbors and strangers from across the political aisle so i actually went to cpac to put that mission into action. >> i mean it's -- this -- past election we saw such contention there were tworses and family feuds over this we haven't seen in a long time so you've taken on tay serious mission to try to bridge that -- you know sort of bring us together to share ideas in a civilized manner. >> you have howard kurts on earlier who was talking about media boys and negative coverage that trump ftion receiving and again, you know, his administration is a little cooky i think we can all admit that. but we immediate to hear both sides -- >> another word for successful? [laughter] >> well agree to disagree there. >> real quick then you went to cpac they treated you nicely and did you have a newfound respect or appreciation for the other side? >> i was amazed i was talking to these college republicans who

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,, go ♪ ♪ ♪ it's 11:00 a.m. on the east coast, 8:00 a.m. out west. i'm charles payne. in just a few moments jeff sessions will announce the department of justice is suing telephone you over state policies. this has a trumpet ministration goes after the golden state. you'll see it here, live. do you remember tim donnelly? he made headlines a few years ago when he was in assembly man and went on camera to shred jerry brown's budget. this time he is running for congress in california. chicago is suing three distributors they claim helped fuel the crisis there and

placed profits over public health. this comes after 66% jump in opioid overdose in illinois emergencies alone. another one we are on top of, new report reveals 42% of americans are at risk of retiring broke. this is a story that not only affects people retiring in the future but those who plan to retire, ever. the big story every day, your money. the dow is off less than 100 points. the third hour of party and company starts right now. "varney and company". starts right now. >> while we wait for the announcement from an attorney general sessions, let's turn to the markets. we wanted check the big board. we have a few more stocks up. exxon mobil and caterpillar are down.

we are off the lows of the session. now this, the senate working on a bill that would loosen banking regulations put in place after the 2008 financial crisis. i want to bring in richard hunt, president and ceo of the consumers banker association. you are a fan of this bill, right? >> i wish it would've gone farther but this is a first step in a bipartisan approach to right size regulations. dodd frank was passed eight years ago. one thing we learned, not all dodd frank rules should apply to every regional bank or small bank. i'm glad this was a bipartisan approach which, here in washington we don't hear that very often there are 12

democratic cosponsors and one of the things they are focused on, the too big to fail aspect probably went too far. 147 new regulations cost the industry $39 billion, 83 million hours. that money could possibly go to main street america, can it. >> sure occurred. i was just at the zion bank in salt lake city. he showed me his secret proposal which is 4 feet high and it cost him $20 million a year to have that submission. maybe if you take that money and give it back and invest in employment and technology, i think it's a win-win, especially for regional banks and small community banks as well. >> richard, earlier we had a member of the federal reserve say that parts of the rules seem absurd. to your point, this is first up, do you expect more to come because we know the pendulum swung way too far with respect to banks. >> one thing they have to address is the leadership structure. ms. mulvaney even said he has too much power and secretary mnunchin in a hearing said he

supports a hearing. you cannot have all the power vested in a single director at the cfpb. you need to have right size regulation. you cannot have the pendulum go from left to right. this leadership structure has been a donnybrook at the cfpb said we need to make sure we have a balanced approach because you know what, and five years we could be doing this all over again. the presidential transition is more orderly than the transition that's happening. >> of course there's no transition in some areas. looks like some folks are entrenched and they don't give up the power or allow the new administration to do what it wants to do. i do want to ask you about

gary cohen's resignation. doesn't make it more likely that we will see tariffs? it gives trump a stronger negotiating leverage with respect to nafta negotiations but overall, the impact near-term and long-term on the markets and economy. >> i am a big fan of gary cohen. i think he did great work and i'm sorry to see him go. i thought he had a great approach to all global economic and domestic approach, the fact that he ran with the 42000 person organization gave me great solace that he was head. i surely hope his lieutenants, if you will stick around. we need to have good direction, the policy and good sensible regulation in all of the market places in our country. >> is a thumbs up or down on tariffs. >> and make sure we have a good competitive marketplace for everybody we have to make sure it's right across the board. we can't just put walls around our entire country. we are country of free and fair trade and i hope we can come to a reasonable solution. >> maybe we will convince the rest of the world of that as well. >> thank you very much. i appreciate your time. any moment jeff sessions will

announce the federal government is suing california over century state laws. sessions is going to think some people at the top of his remarks. we will listen when he makes the announcement but right now we want to bring in a judge, all rise, judge andrew is here. a lot of people are cheering us on, late in california and a lot of other liberal states have gone rogue, that they've shredded the constitution and that they are protecting, not just illegal immigrants at the expense of americans, but immigrant communities who often are victimized by sanctuary laws that allow criminals to stay here. >> in other states in the union, including the city in which we are physically present now, the sanctuary status has come about by the decision of executive officers, mayors and governors. california is the only state in the union that has enacted statute that has a sting to them if you don't cooperate. if you are an employee of any government in california, local, county, regional or state and the federal government comes knocking and asking questions of you and your official capacity about

the location or immigration status of undocumented persons, you may not respond. you just don't answer. you hang up the phone coming close the door, you look the other way. if you do respond you can be fired. that's pretty bad. i don't think it's unconstitutional, but it is reckless and dangerous. it endangers the state workers and the federal agents who are looking for these people. typical person being looked for is someone who overstayed their visas over here illegally, rested for a crime, locked up, out on bail. federal government says you got this guy commute saved our time of hunting him down. when he makes well, let us know and will deport him and take care of it for you. california says you can give them that information. second issue, far more troublesome, another statute of the california -- this is the left attitude of denying free speech. you want a small business, ice

shows up and says, tell me about this person and that person. if you answer the question will be prosecuted by the state. >> what? >> i'm going to be punished by my speech and my own business. those two statutes are in the crosshairs of jeff sessions which he is filing this morning. >> to me a favor, stay with us. sessions isn't out yet. you can see the split screen. he will be out shortly. we want to go over a couple of the stories. the trump administration has approved arkansas plan to require thousands of medicaid recipients who work or volunteer. they will roll out the program in stages. kentucky is also implement in work requirements after getting a waiver from the trump administration. let's take a quick look at that point. it sort of settled into its trading range. it's holding above 10000 but still not what it was. at one point it was closing on a $20000.

then there's gold which has shared the stage with big coin also down seven dollars to 1327. we have oil, inventory numbers out and we had a bill that does not help, were certainly off from that move that was making just a month ago. >> we are still waiting for attorney general jeff sessions paid when he takes the podium we will take you there live. we are following the markets. could we actually in the day in the green? it's possible. ♪ ♪ ♪ so lionel, what does being able to trade 24/5 mean to you? well, it means i can trade after the market closes. it's true. so all... evening long. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light.

♪ you're not gonna say it are you? is

any moment, attorney general jeff sessions will announce at the federal government is suing california over century state laws. sessions will think some people at the top of his remarks and we will tune in acidity begins the actual announcement.

was getting an update on the big storm hitting the northeast. many cities along the i-95 corridor are in the path of the storm. several inches of snow are expected to fall. so far more than 2400 flights have been canceled. the storm is expected to move out overnight. the owner of the miami dolphins says everyone on his team will stand for the national anthem next season. steven ross, owner, initially supported players who nil but then changed his mind after feeling the conversation protesting police brutality and turned into protesting our country. smith and weston parent company says they are worried of adding smart gun technology to its line of weapons. any moment now, we are waiting for jeff sessions. in the meantime, the judge is here. judge, help us understand the

fight between the states or even some local municipalities versus the federal government. does the constitution give the executive branch the power to control immigration? >> yes, but the constitution does not give the federal government the power to commandeer, to take state and local officials and say you will work for us and help us enforce our laws. the supreme court has been very clear on that. the way out around this, the president understands is to attach strings to the funds. oakland, san francisco, l.a., you want money for your schools and police, here it is with a string attached that you comply with his request for that would be a contractual obligation which any court in a heartbeat would enforce. >> the tenth amendment factors in and what's going on in california.

>> the tenth amendment allows the state to give away a little portion of its sovereignty, a little portion of its independence in return for federal cash. >> give me a second. the senate is moving forward, the senate is moving forward with a bill that will repeal parts of the dodd frank act. >> that came after the financial crisis. joining us now, senator john soon. republican from south dakota and member of the finance committee. this is welcome news to a lot of people but the left will push back and say it's more for the banks. explain to regular folks how this has had a negative, detrimental impact to our economy. >> but they did with dodd frank is, as you know, it was sort of a massive amount of regulation and it was an

overreach. so what they did is they penalized a lot of small community banks, credit unions, kind of people i represent south dakota whose businesses are now in jeopardy because they were trying to get at the systemically risky, too big to fail banks. this was an example of using a shotgun when a rifle worked, but unfortunately it has had very adverse impact on the economy, particularly in rural areas where we have small institutions. all this does is simply provide some balance and lessons that heavy hand of regulation and all the compliance costs that come with it that have been so adversely impacting a lot of these smaller regional and community banks across the country. >> i read the cost has been upwards of $39 billion, the compliance cost alone. the big banks can afford it but the small ones can't. what you say to people who are afraid and say 2007, 2008, the financial crisis taught us that banks are unable to regulate themselves. >> i think what we found for marks. with that frank is that it made the big banks bigger and

small bank smaller. you want to create more competition so it had the opposite effect. you have to regulate and they have no accountability to anybody. there's no oversight board or anything. when this was done, it was done in a way that gave that one individual a tremendous amount of power which, if exercised inappropriately could create enormous costs for a lot of folks and i think , hopefully unintended cost, but it's time to bring it back into balance and the legislation on the floor of the senate does just that which is why it has broad bipartisan support. there's a lot of democrats who afford the spread the folks on the far left, the elizabeth warren to be satisfied because they want more government, more regulation but not as heavy hand that we've seen with dodd frank. >> see your point, there are 12 democratic cosponsors of this.

with a representative of the community banking association on earlier and he suggested there could be even more work done, is this just the beginning of freeing up these banks so they can make the kind of loans that jumpstart the heart of our country. >> we need more credit on main street america, communities and farms and ranches. if you want to make mortgages more affordable and car loans and business loans are not sort of thing, then you have to lessen this heavy cost of compliance. small banks don't have compliance but one person does a lot of things. if you can free up not only the time and the resources that these individuals make and give them some freedom from heavy-handed regulation, i think you will see more credit flowing and hopefully more business creation and smaller more rural areas of this country. >> as we await jeff sessions, i'm trying to sneak in one

more. a little bit off the beaten path but infrastructure was teed up and that was going to be the next big thing. then we had the awful tragedy in california and it feels like it's fallen off the radar. are we going to get back to some sort of effort to get some infrastructure moving in this country? >> think we will charles, we have, testifying in front, i chair the transportation and commerce committee which will have an infrastructure bill probably under our jurisdiction and we have wilbur ross and ely chow testifying in front of the committee. i think one of the things we can do to help promote and support infrastructure in this country is to lessen all the red tape that's required to get the project started. >> jeff sessions has just gone to the podium. you have to go just yet, begin me a heads up, he's going to think if you people but i wanted to say we thank you for everything and before we let

you go, should we let him go? before we let him go, we had another report on jobs this morning. 235,000. what you make of the amazing comeback in our economy. >> smart, good tax reform, sensible regulations and lessening of the regulatory burden and you are getting the result of that in an economy where people feel confident investing in growing their businesses, creating jobs and raising wages. that's what this is all about. that's what the presence been focused on and that's what we are focused on. >> thank you very much for all you do. we appreciate it. >> thank you. >> do you remember what is the most insidious part of that the cpf be? they can make the swings but they can't defund it because it's funded by the feds. it's unconstitutional to create an institution and say the feds will fund it. it cuts the taxpayers and representatives out. >> packets back to the fed itself for the the creature. >> ultimately, they're not

accountable to anyone either. >> they are not. the supreme court has never ruled on the constitutionality of the fed. is it a bank? is it a federal who owns us, who controls it. it's never been ruled on. >> you wonder at this point, with all the debt they're holding, did we even want them to? >> they would say i wish i knew. we really don't know. >> it's also the rulemaking, to your point about the fed and lack of accountability there. we also have dodd frank, the actual dodd frank, ge and wells fargo, what's happening here, 1989 law that's been on the books is now being used against these two operations, these two businesses so why do we need all this when you can't even though the s&l crisis law. that's a lot of rulemaking.

>> the prior administration just loved regulations. they also loved control. >> it was in their genetics. they had this symbiotic relationship with the banking community where they find a moment with a quarter trillion dollars that they also have many members in the administration, it was something like we won't find you, the family with one cow, you just take enough from the cow not kill it. >> in other words, sperry at could've been used about the crisis but not these new rules for the banking industry drove is that we are treated like a line item in the department of justice budget. >> speaking of jokes. >> sanctuary cities in the hubris, new jersey perhaps could become the next century state. >> new jersey, i'm sorry to say this, your homestay and mine is about as progressive

and libera liberal, they had a lot of problems with chris christie. he was not progressive or liberal. the ask goldman sachs guy is a governor and huge democratic majorities in the legislature. if you look at the political makeup of the new jersey legislature, the california legislature, it's identical. don't be surprised at the type of laws that california just enacted with jeff sessions challenging will be enacted in new jersey. >> higher taxes, sanctuary state, you pay a fine if you leave the state. >> you make your principal residence in another state and your lawyer has to collect ten grand from you and send it to the government. >> for what? >> it is that same mentality. >> can the constitution save us, can it save businesses, in

other words, get gets back to the facts, i don't know how they can do this but how they can from their nose at the federal government on something that i thought was the main role of our government to keep us safe. >> in my opinion, the trump budget with the strings attached will come to pass quicker than judges can rule on these cases and quite frankly i would rather have congress decided that my former colleagues. >> even if congress stepped in at some point. >> congress would step in and say here's all the cash and here's all the strings. they never turn down the cash. it's either you or someone saying to me, oakland so radical. they just never ever turned down the cash no matter what the strings are. >> when we see these stories, even as mayor of oakland, i read stories. >> to mayors ago they had an admitted socialist.

he was also the mayor at one point. this was a town that has made no bones about the way they feel and it's always been anti- whatever america is, to a degree. >> may be california will succeed from the union and oakland will succeed from california. >> in the meantime, president trump is ready to throw down the gauntlet and his attorney general is teeing it up. we will go there in one second. how long will this process take. >> which process. >> the lawsuits that will be announced. >> a couple of years which is why i said i believe that the trump budget can come into play first and this would nullify the lawsuits because they will accept the money. >> let's listen to attorney general jeff sessions. >> together let's get them. let's achieve these goals. it's not a job that we do so much as a service, it's a high calling, i think. a lawful immigration system that serves the national interest helps us to achieve

these goals and more benefits for america. that's what i have to talk about today. we are a strong prosperous and orderly nation. california is a great state, so important to america and such a nation, such a country as ours must have a lawful system of immigration. i'm not aware of any advanced nation who disagrees with that concept. let no one contend that we reject immigration. we don't want to wall off america from all immigrants. president trump and the american people know what's happening. we admit 1.1 million immigrants lawfully through permanent resident status in the united states with a clear path to citizenship, green card status, every year. no nation comes close to that. it's the highest number in the world.

indeed, at this unprecedented rate, we will soon have the largest percentage of non-native born in our nations history and the percentage is continuing to rise every year thereafter. thus, the good and decent people of this country are right. to insist that this country and its officials should in the illegality, create a rational immigration flow, protect the nation from criminal aliens and preserve the national interest. it cannot be that someone who illegally crosses the board and two days later arrived in sacramento, dubuque, islip, new york is home free, never to be removed. how can that be? it cannot be the policy of a great nation to up and reward those who reenter with legal status, social security,

welfare, food stands, permits and the white bread is be a sound policy? meanwhile, those who engage in the process lawfully and patiently and wait their turn are discriminated against at every turn. most americans get this, they are working hard to make ends meet, they follow the rules and they believe in the rule of law they want our government to think about them for a change, think about their interests. they have dreams too. frankly, commonsense concept of this concept was a big part of president trump's election. elections have consequences. i think the american people spoke about the subject. immigration law is the province of the federal government. it's in the constitution. this administration and this justice department are determined to make it work effectively for all of our people.

i understand that we have a wide variety of political opinions out there on immigration, but the law is in the books. its purposes are clear and just. there is no nullification. there is no, federal law is the supreme law of the land. i would fight you to go to gettysburg or the tombstone of calhoun and abraham lincoln. this matter has been settled. a refusal to apprehend and deport those, especially the criminal element effectively rejects all immigration law. it's a rejection of wall and it creates an open borders system, the only way it can be described. an open borders is a radical, irrational idea that cannot be accepted, american people will not accept it, and the united

states of america is not some idea. it's a secular nation state with the constitution and laws and borders, all of which are designed to protect our nation interest and we should be able to agree on this. so to carry out the intent of our laws we need law offices. that's what you and your department's do everyday. we need immigration and customs officers, ice officers, border patrol officers, they are your brothers and sisters. president trump, congress and the american people want to accomplish these goals. our laws have set out, that's why we pay them. that's when they get a salary. but california, we have a problem. a series of actions and events has occurred here that directly and adversely impact the work of our federal officers. for example, the mayor of

oakland has actively seeking to help illegal aliens avoid apprehension by ice. her actions support those who flout the law and boldly validate your legality. there is no other way to interpret those remarks. to make matters worse, the elected lieutenant governor of the state praised her for doing so. bragging about and encouraging the obstruction of our law enforcement and i'm afraid this is an embarrassment to the proud state of california. the director of ice has said recently, being a law enforcement officer is already dangerous enough. to give the criminal the heads up that were coming in the next 24 hours increases that risk.

what she did had the exact opposite effect. that's a fair criticism and statement. according to actor acting director, i failed to make 800 arrest that would have been made if the mayor had not made her statement. those are 800 wanted criminals that are in that community, 800 wanted, as i will have to pursue them with other measures all because of one irresponsible action. here is my response. how dare you needlessly endanger the needs to promote a radical open borders agenda. in california we have bigger problems also. more than just one mayor, for example in january ventura

county declined a request from ice to hold an alien ventura that was arrested and put in their custody for continuous sexual abuse of a child. instead of being removed from the country he was released back into the community and now federal law enforcement officers will try to find him and arrest him wherever he may be. in recent years, the california legislature has enacted a number of laws designed to intentionally obstruct the work of our sworn immigration officers, to intentionally use every power to legislate to undermine the duty of established immigration law of america. california law now won't let employers voluntarily allow ice agents on their property, won't even let them come on their property when the company voluntarily allows them to and california

requires employers to give notice to the employees before ice comes to inspect their workplace. when this law was before the general assembly, judicial committee reported explicitly stated that its goal was to frustrate, and expect an increase in federal immigration enforcement action which, of course it was. it was designed to frustrate the work that we required to do so. ice agents are federal law enforcement officers in california law cannot obstruct them from doing their job. just imagine if they passed a law for bidding employers for cooperating with osha in ensuring workplace safety for the epa for looking after polluters, would you pass a law to do that?

and just think about the situation it puts california employers in. they want to help law-enforcement, they want to do their civic duty. we ought to be encouraging them and thankful to them but your state attorney general has repeatedly promised to prosecute these business owners. this is a great state. i don't want to be in this position of having to challenge these laws. it wasn't something i chose to do, but i can't sit by idly while lawful authority of federal officers are being blocked by legislative action politicians. they've also claimed to

inspect areas where ice. [inaudible] california has discriminate early targeted six facilities and demanded documents and other materials from the department of homeland security. california won't let law-enforcement officers like you and your people to transfer business to ice custody or even to communicate with ice that you are about to release them from your custody. people at ice is looking for them. remember, california found these people dangerous enough to detain them in the first place but then insist on releasing them back into the community instead of allowing federal officers to remove them. safely, and will rather than allowing ice officers to do their job with the transfers at the jailhouse, they force our officers to conduct more

dangerous arrest elsewhere for violent criminals may reside and work children can be caught in the crossfire. that is not just unconstitutional, it's a violation of federal statute and a violation of common sense, a violation of good partnership we need to build between state and federal officers. importantly, the laws are harmful to californians and they are especially harmful to our law enforcement, your law enforcement. that's why the department filed a suit against the state of california to invalidate these unjust laws and to immediately freeze their affect. federal agents must be able to do the job that congress directed them to do. contrary to what you might hear from open borders radicals, we are not asking california, oakland or anyone else to effectively enforce immigration law.

although we would certainly like that, but ice agents do incredible work everyday. they are not backing down, not going to be deterred and we are not going to stop enforcing the law in alabama or california either. we are simply asking the state and other sanctuary jurisdictions to stop actively obstructing federal law-enforcement. stop treating immigration agents differently from everybody else for the purpose of eviscerating border and immigration laws and advancing an open borders philosophy shared by only a few. the most radical extremists. stop protecting lawbreakers and giving officers more dangerous work to do. it allows politicians to score

political points. i can't accept that. you are professional, you know the risk we are talking about, you know the reality of what happened on the street and how your officers operate. and how are federal officers operate. think about the scene of our officer knocking on a door to execute a warrant. they don't know what's on the other side of that door. it's not fair to them to be putting them in a situation like that by releasing criminal aliens into the community who shouldn't even be in the country. i find condolence letters for law enforcement officers killed in the line of duty. i signed to yesterday. i fundamentally believe that my core that we should not further endanger the lives of those who risk everything for us because some officials want to violate the law in

promoting an agenda that the american people reject. california absolutely appears to me as using every power it has, power it doesn't have to frustrate federal law-enforcement. you can be sure i'm going to use every power i have to stop that. we are going to fight these irrational, unfair, unconstitutional policies that have been imposed on you and your officers and our federal officers. we are fighting to make your job safe, we are fighting to help you reduce crime in america, not increase it by keeping criminals here that ought to be deported. we are fighting for a lawful system of immigration, one that we can be proud of, one that is consistently applied, fairly applied and we intend to win this fight. i would like to close by reiterating my deep

appreciation and profound thanks to all the women and men of law-enforcemen law-enforcement, federal, state, local, tribal, the work that you do, that you have dedicated your lives to is essential for any advanced nation. i believe it. the department of justice believes it. president john believes it. and you can be sure about this, we have your back you have our thanks. thank you all and god bless. [applause] >> i was jeff sessions making a passionate plea to officials to stop actively obstructing law-enforcement. the judge is still here with us. what you make of it. >> tell you what's new, he pointed this out, the state is shaking down the fed. this hasn't happened since the civil war, as far as i know. the state agents are knocking on the door of ice and demanding copies of documents

and demanding to know what they're doing and where they're going next. look. there is a clause in the constitution called the supremacy clause which makes the federal government, as hard as it is to say this, it makes them the law of the land. they are supreme and superior to the state particularly in areas involving foreign policy which is exclusively federal. >> of course the use the term no nullification which is ironic, over the past 50 or 60 years in our country, that argument that. >> it's usually my people, libertarians that want the states to nullify the federal government. now you have the most progressive state in the union, perhaps an rival with new jersey wanting to nullify federal law. >> it's amazing the judge, if you can stay there, let's come back to a few moments but i want to go to the hillary von, she's in capitol hill. she just spoke with california democrat dianne feinstein about all this. what did she have to say. >> feinstein described a situation where ice agents are

sticking out schools, where kids are being picked up from the parents and she says she doesn't think agents should be ripping parents away from their kids at school, but of course, there are three separate laws that sessions is challenging and i asked feinstein about one of those that involves california businesses being stuck in the middle of the particle fight with d.c., california saying they can't cooperate with ice agents. here's what feinstein had to say. >> you think that's fair to put business owners in the middle of the political fight. >> no, i don't and it should not. >> you disagree with that. >> why. >> what law are you talking about. >> the law that prevents business owners from cooperating with ice agents if they show up to their business. >> cooperation is a whole other story. i don't know the california law so i would have to take a look at that.

>> so it's interesting to see how, when pushed a little bit further the sanctuary city issue does get a lot of heat but when pressed about other laws california has put forth, not a lot of clarity there. >> thank you very much. we really appreciate it. joining us now is tim donnelly, former california state assembly man and congressional candidate. your reaction to what we just saw from jeff sessions. >> charles, i find it ironic that it was actually a lawsuit brought by the obama administration against the arizona law. remember sb 1070 that raised the whole issue of the supremacy clause that was previously alluded to and it is now back in play and i believe you will see that article four, section four of the constitution, which gives the federal government exclusive purview over

immigration, we will see a showdown. we will see this play out in court and i think this is a big fight, this is the line in the sand, i think it's been a long time coming and a lot of us in california are deeply grateful to president trump for actually taking this on, and i think it's going to be a significant battle. >> tim, it's really shocking to hear jeff sessions talking about employers not being able to voluntarily ask ice officials onto their property, and then of course, to go even further into shakedown ice and board patrol agents and homeland security and interrupt them in their efforts to do their job. >> this gives you.

it is abjectly obstruction of justice. not only are they saying employers can suffer penalties for cooperating with ice, but they won't allow expansion facilities. they don't ever want to see any immigration enforcement. what role does the state have been telling the federal government how to run the immigration detention centers when that is actually completely a federal, it's an enumerated degree duty of the federal government. >> how does this change? we know this is a legal challenge and could take a couple years, anyway getting any progress before then, jeff sessions brings up the supremacy clause, he talks about no nullification, but it seems like california is

entrenched with this position and they don't care about the constitution with regards to this. >> of course, you've seen the mayor of oakland, libby who did what she did, then you've got the top guy in the california state senate who is running for u.s. senate against them, that's the guys i should've interviewed. he's the one that said half my family is here illegally and they commit identity theft and everybody does it. so there is a mentality that is now finally being challenged, and i think it's exciting and i do believe, first of all they brought this case in sacramento and not in san francisco so they could get an injunction. you also have some lawsuit about limiting or restricting or cutting off funds to

sanctuary cities, the trump administration scored a small victory there. i think we will see some movement. i think we will see this showdown play out and its welcome relief to the law-abiding citizens of california and i'm sure to law-enforcement agents that attorney general sessions is working with. >> thank you very much but we appreciate it. >> folks, let's get back to the market. now up 165-point, i think we got down to minus 67 at the best point of the session. joining us now, moody's managing director, john, gary cohen resignation, what does it mean for economic policy going forward and the markets? >> i'm surprised by the fact that the selloff today is a more severe. we are only giving up part of the gains we achieved over the previous three trading days, perhaps the important factor here is the u.s. government doesn't go beyond this increase in tariffs and steel and aluminum. >> but, to your point, so were not down as much as people

thought we would be, president trump includes canada and mexico initially, there will be another reaction by the markets. >> i think there's a already been priced in unless he changes his mind. there's no sign that will take place anytime soon, but of course, there is a danger of retaliation on the part of canada and mexico that could make matters worse. after the close yesterday yesterday we learned all the exports were up 10%, produce 4 million cars, twice as much as they were producing a couple years ago. this is a gamut that has risks for both side print mexico want to go down this road, i'm not sure they can necessarily handle it. nobody wants to go down this road but would be be so intimate dated that we take no action at all. >> does a lot of mutual dependency between the two countries and that might limit the extent of any type of trade war. >> there's a new study that finds nearly half of americans right now risk of retiring

broke. they have less than 10000 saved up for retirement, does that number surprise you. >> not really. we have a very low personal savings rate. it's just about 3% over the past 12 months, in the past the personal savings rate when the middle class was thriving in the 1970s was higher than 11%. this drop in the personal savings rate and perhaps also the growth of the trade deficit are both symptomatic of a decline in the standard of living for middle class americans. >> standard of living are too much living pretty for not saving were living. >> a lot of people can afford to save. that's the problem. i would add, were worried about price inflation, we think were going back to 1987 or the 1970s, the reality is, the average american cannot afford recurring price hikes for long. this is where we were in the 70s were companies could increase prices. if you do that today you will lose sales. >> this data we are seeing, does it include 4o1k, we saw

the statements where you come down as more americans gone to the stock market and i said don't worry about the official number anymore because we've all said that. >> it doesn't include wealth. we are just looking at savings as a percent of being priests, it's a flow concept, it's not a stock concept, you could be very wealthy and what's the point of saving. you could have negatives saving rate and be spending your wealth but i don't think that's the case for the average american. >> we should be worried. by the way, i will point out we are down 200, we were down 67. at one point we were starting to drift lower in the middle of today's trading range. i'm sorry. >> keep an eye on whether or not other countries retaliate and whether or not we go beyond this imposition of tariffs on steel and broaden efforts to protect american industry. >> thank you very much. the judge is still with us but i want to talk to about this. the city of chicago is suing three opioid distributors

claiming they helped fuel this crisis and they've actually priced profits over the health of citizens. does the city have a case here? >> i don't think the city does. the state of illinois license physicians and physicians prescribe these things. the patient called a physician and says i need percocet, i'm your patient, i don't want to come in, but just give me a prescription, that is unethical for the doctor to do that. he has to examine and evaluate whether or not he should do that. that is the fault of what's called the intermediary, the physician. that's a person between the person in the manufacturer. you can't hold the manufacturer liable or the distributor, is nothing to distribute direct to the patient. goes to a drugstore and it can only be done after the doctor doesn't. >> i think everyone wants to find a solution to this and i know in the south a codeine cough syrup has been popular

in the last several years but it's becoming an epidemic. it doesn't get a lot of news place. right now drug companies that make this see a huge increase in demand. they know it's not from medicinal purposes. what role do they have. >> does require prescription. >> i think it does. >> then you have what is called the learned intermediary. a licensed professional who will risk her or his career by overprescribing. now, again, i'm not into heavy regulation but medical regulators have the ability to examine the prescription records of physicians. the board of medical examiners in jersey can, by punching a couple numbers on a computer find out how many times doctor jones or doctor smith, i'm making up the names, has prescribed opioids and can actually second-guess the doctor. >> i have another one for you. mexico's top land manager posted signs along the us-mexico border aimed at

blocking border patrol operations on a stretch of state land. he claims the federal government is not compensating the state for using that land, he's even threatening to install a fence to block access. can he do that? >> yes he can. this is a form of obstruction that is legal. >> you said the federal government should be going to the century's daily. the question is can the state keep the feds off of her that is actually owned by the state. unless they are there for some federal purpose like securing the border in his gun make that decision, when my former colleagues. should judges be making law like this or should congress enact a comprehensive law that has the command and the support of the majority of people. >> it's tough. i hear where you are coming from. congress keeps letting us down. it just sort of given away their role in all of this and focus on getting reelected. >> to federal judges have told the president there's 800,000

people on daca and you can't keep them -- kicked them off. you can kick them off until we say so. imagine how donald trump feels about that. >> thank you so much. i want to get back real quick to the markets. down 200 points. we have ashley and john still with a spread the initial rally is starting to fade. >> it is. i think this is just uncertainty. we talked about the shakeup at the white house right now. what happens to gary cohen's position. who takes over? will that person have a more globalist or protectionist view? markets hate uncertainty and that's what you're seeing right now. >> looking at the averages in the action, john makes a good point. i thought the market selloff was going to be even deeper losing the architect of the economic agenda and the fears of metastasizing global trade war that looks to be overblown right now. we don't have the details on

what the president wants to do, if it is going to be targeted trade tariffs. >> i wanted to use more of this show is economic nationalism. when steve bannon was banished from the white house a fellow that probably wasn't going to be the case. trump was berating wilbur ross and others. it feels like it's back, front and center as part of the america first approach. it means pushing back against a lot of conservative economic orthodoxy and that could be upsetting for the market. >> it could be very dangerous to the economic future of the united states if you go too far at protecting u.s. industry you could find yourself going down the same road that a number of south american countries did. that is you will suffer from higher inflation and suffer from a reduced quality of goods you are producing and providing to consumers. >> would you say something has to be done? have we reached the point where we know something must be done as the rest of the

world starts to catch up with us with respect to the economic output? if we don't strike now, when will we strike. >> we have to look at this at a more detailed approach, a more surgical approach to try to solve these problems we have with international trade. perhaps not the greatest idea in the world to impose a 25% tariff on steel, regardless of where the steels coming from. >> all right, thank you very much. any minute now, president trump will speak to the latino coalition summit in d.c. he might comment on what jeff sessions had to say. we also think he may talk about immigration reform, tariffs, gary . any idea what we should expect from him? >> no, we don't have any idea what to expect from him. it seems like there are a lot of headlines coming out of d.c., every day, every minute.

but surprising is watching the action on the tape. check the nasdaq and s&p. they're not down by much. there in the red but not deeply in the red. >> it will be interesting but i think you will pick up on what jeff sessions said, for sure. >> speaking of the latino coalition, what he is trying to say is this is an issue for people who have waited in line, particularly latinos in this country who waited in line, did everything right and then their communities are preyed upon by these criminals and they are the key victims of the crime. it makes sense to have an honest discussion with that audience. i think he is the person to do it. he may also mention the market's reaction to this. it's not as bad as we thought earlier. we know we can go anyway. last hour trading will be nuts. what do you think? >> i'm sure they're watching market closely in the administration. if we have a deep selloff,

market goes down 3% next couple days. that will force trump to rethink the position on tariff and trade. charles: 200,000 jobs, adp. goods producing, 37,000. those people work with their hand. that is the heartland. if we get a number on strong on friday will good news be good news or good news be bad news? >> i think good news will be bad news for the treasury bond market. we might see equity prices retreat out of a fear of steeper than expected climb for interest rates. >> bad news for democrats, charles. they hung their hat on tax reform is terrible. and -- charles: do we want to get in the place we're upset because people in america are finally getting a raise? does the market want to have a tantrum over that. >> i don't think that is the case. the market is concerned about the possibility that interest rates overshoot and might become too burdensome off the economy. mortgage applications from homebuyers -- charles: i understand the

skepticism comes to the fed. john, liz, ashley. thank you, connell mcshane in for neil. connell: good to see you, charles, thank you very much. all kind of things going on. we welcome you to "cavuto: coast to coast." i'm in for neil. president's trumps tariffs on steel and lame numb -- aluminuml be put in place. gary cohn gone as top economic advisor confirms the protectionist stance in the white house. what is next? is the trump administration still to be viewed pro-business? all kinds of views head next two hours. we're moments away from hearinge president. a live speech. he will speech to latino business owners. a live look at the