today it is a big week for microsoft for amazon too that's a growing business. >> absolutely. and credit to kevin he turned me on to highball energy drinks and i just used to dismiss them and feelings were hurt and that making fun of you earlier have a great day everybody. stuart varney "varney & company" stu. >> good morning to you and good morning everyone. let be clear corporations are making a ton of money. we'res in the middle of the profit reporting period and things are looking really good here's the big picture how it looks. s&p 500 profits expected to go up 18% from a year ago. that's known as a the bottom line. up a whopping 18%. revenue expected to go up 7 pbt that's the money coming in. known as top line, that's huge. all right, look at google. in a 13-week period that company reported a profit of 9.4 billion. that's about -- 720 million a week, net profit -- for the year, google is expect

to the bring in 100 billion worth of advertising revenue. other big name companies reported a couple of hours ago, solid pretty much across the board. and that is helping the overall market. here's how we'll open about half an hour time. triple digits gain for the dow. 12 points up for the s&p and 25 up for the nasdaq we're going up this tuesday morning. now, throughout the program today, you're going to see a lot of pomp and circumstance. the president of france has arrived for a full address state visit dinner at vernon an state house dinner tonight and news conference later this morning. here's real story. can the two presidents get a deal on iran nukes and trade? emanuelemmanuel macron is our nt friend in europe. "varney & company" is about to again.

>> this is the white house we're awaiting arrival of france's president macron expected to be a brief ceremony and trump macron may take a couple of questions there's a full joint news conference later -- closer to noon today maybe around 11:45 ladies and gentlemen you are going to see it all today. let's get back to money. six dow components report profits before the bell today. 3m caterpillar and coke wow doing very well and so is coke 0 how about that? vers, united it can, travelers, united the up some very strong numbers united tech that is, and that stock is going to be up a nice 2% right there. overall -- yep we're going up this tuesday morning. it has a triple digit gain for the dow and as i said 12 for s&p and 25 for nasdaq market watcher mike murphy is with us now. i've got to talk profits. that's look at really, really good.

profits are looking great. i think the market has a discounting mechanism stuart back to level where is we were to start the year but you've got an free peek now at quarterly earnings and they're doing great. certain canes -- aren't doing better than others those are ones who want to invest and those that show you the growth. >> really? >> what you're looking for is growth. >> you have to have growth and profits -- >> iemg putting dollar into a business i want to know that that business is going to grow and be worth my dollar and therefore be worth more in the future. >> there was a number that just blew me away last night that was google expecting $100 billion worth of advertising revenue in a year. 100 billion. now to get that number by -- messing arranged with our personal information -- do you think they face a regulatory risk at some point in the future? >> potentially they do. but i think if you look if i told you back on january first, that google was going to put up this type of earnings report, and you could buy it, you would. so now you get a chance to buy

at the same price roughly on january first and it's a company stuart. this is a multibillion dollar company that is trading at 22 times earnings and they just told you they're growing ad revenue 26% in the billion 26 billion dollars year. great company regulatory head winds yes. but they have a lot other parts of their business that i think -- global growth. e-yeah, right are other parts of the business that is of the business like youtube that i think are doing phenomenal 13 billion in revenue and a lot of upset. >> look premarket it was at 1 rk 066 per share as of right now. which you buy -- so -- what you would buy it it. you would buy it and i will buy it. sphiet the blowout numbers deutsche bank has a buy rating but down to 1225. 1057 so knock on google sending more money for the growth so that's what analysts are looking

at and not liking that's why you're seeing negative reaction here. they have to spend more to get the growth. i will take growth any day of the week i don't mind spending for it amazon did for 17 years an they did okay. >> analysts i tell you what -- [laughter] this is a story which i -- i'm having a hard time getting my head to wrap around it. millions of prime members amazon is prime members with certain types of vehicles can now have packages delivered to their parked cars. yowment to tell me how that works. >> this is really in response to the porch pirate who have increasingly stole opinion packages now you remember, amazon bought a program where you could have people come into your house through a connected system to deliver packages ins your house and people were uneasy about that. this use your cart as delivery spot. you download an amazon app and your car has to have a connected service. much like gm on star system and many vehicles out there that have some sort of system so what

happens is you're connected. this is a free service to prime members they're given a code. not your veg code. but a code between the two systems and you can get drop the package into the trunk. you need to get a car parked publicly accessed and then take it to your vehicle to drop it off. >> i have to have this. i have to have it. >> what a time it be alive we just reported you can get domino pizza delivered to your car, and pep toe dismal delivered to your car. >> left side side of the screen that's the white house, obviously, just after 9:00 this morning that's a live picture i do believe. that dignitaries arriving at the white house prior to the arrival of the president of france emmanuel macron and his wife got to yap that up and turn to housing market now. we did receive the latest read on housing prices this morning. we have -- they're up, .7% month in

february. that's a significant gain. art laugher is with us this morning. i see housing prices going straight up. the medium price or for existing homes is now a quarter million or dollars. that's a huge amount of money. what do you make of this? >> i think you're right stuart. but i was really disaponted you were introducing this show yowx there's a lot of pomp and circumstance and i thought that was the prelude to intrusion me and then what do do go to all of the other stuff. but you're in tennessee and they don't do much pomp and serk in tennessee so wonderful state and i love it and ashley used to work there. but pomp and circumstance. >> ashley has that tennessee accent he can't shake it but house hoing market is going to be great. you cannot have an expansion without a hosing market coming in and for ten yearses we've been below average on new housing starts for $10,000

population below ten years below it. and it's about time for this market to really take off and extend the boom for years and years to come. i'm very exciteed. >> wait a second. wait a second investing in real estate as opposed to buying home investing in real estate is not that attractive anymore given the new tax law. because many people can no longer deduct that much of their mortgage interest. that's a real problem. >> that is. that's an issue. that's for sure. but do remember the unrealized capital gains are not taxable we have the clinton xemps up to i think 250,000 every two years for a capital gain would be untaxed. so there are a lot of advantages but the most -- large advantage comes in the demand side of the equation there are a lot of new housing formations that are coming on to market, and this market is going to expand dramatically for a long time even though they don't get the deduction like they should and lower tax rates who cares. >> hold on a second is i want to

raise the music, the pomp and circumstance just walked out i want to hear that music please. why is this such a long drum roll? ladies and gentlemen i do believe this is the longest drum

roll ever. i believe -- [laughter] buildings the -- >> that's, obviously, president trump, first lady melania. and may i say the first lady looks stunning absolutely stunning and now the music i believe that's rival are of president macron listen in please. ♪ ♪

[silence] [silence] this is the -- pomp and circumstance section of the show. macron and then the fanfare

arrived meeting dignitary and cabinet members as with speak and go down that line we're expecting the two presidents, maybe, we'll say something. probable a formal diplomatic type, i doubt they'll get into the serious knity gritty of policy. but who knows. [laughter] >> it's interesting, they are tight friends. donald trump don't speak to emmanuel macron by phone we're told it an someone pointed out they're both political outsiders who outwitted the political establishment of each of their countries we came from nowhere in france and we all know trump's story so there's some ofort connection there. >> both won with at first go of it and they're both former businessman as well. >> who is it that said country dos not have permanent friends? they have permanent interests. i think that's something -- a british minister but there you are. >> i don't know why i bring that

up a british foreign minister as president of france arrives to the white house but there you are. the going down the line of cabinet members i recognize general kelly there and ross steve mnuchin not sure who the gentleman is right there in the uniform but this is the formal greeting ceremony. by the two couples, the first couple of france are first couple of the united states of america. this is right there at the white house. now they're walking back up the step there is as you can see. again, we're expecting -- going to the podium something will be said. there's going to be a -- a 21 gun salute i think it is. yes. >> ladies and gentlemen, the national anthem of the french republic followed by the national anthem of the united states.

♪

♪ ♪ [star-spangled banner]

♪ >> order.

[silence] ♪

♪

ladies and gentlemen this is called review of the troops. 5 00 members of our armed forces reviewed by the president as you can see that is now in progress. when it comes to an end, go back up the steps i believe, and a podium is there and i believe they'll be making some remarks we're not going to break away for this you're going to watch this all of the way through. this is real good stuff. a state visit. >> i think it is great. maybe because i was born and raised in england. >> you know, what's interesting how much the first lady has been so deeply involved in every detail of this every kl it of this visit. tonight, the white house state dinner for the french president, and first lady of france. 150 guests no congressional democrats break with tradition already invited no will be there but she got down to level of the seat cushion at the state level.

that's how involved she is. >> we know the menu for tonight for the meal. rack of lamb. that's on the -- yes onion -- jambalaya. onion soup -- [laughter] let me go through this rack of lamb a carolina rice jambalaya. the herbs are are grown in the white house garden. the honey that is used in the tart will be from the white house all of this is being fed into my ear as we speak. and they'll be serving american wine. >> well. there was a -- >> could be contentious. >> there was profound and very touching symbolic ceremony on the south lawn last night where the two first couples planted a

sapling tree and oak from the forest where 9 thorks marines died in france in world war i. so it was a moving to see that happen again that's the first lady saying yes, we are strong allies for 250 years. making that symbolic gesture. >> it's a wonderful sight. doesn't bring -- i feel this. i like this. [laughter] to me if i may say so --

♪ [inaudible conversations]

ladies and gentlemen welcome the president of the united states. [applause] >> thank you very much. president macron miss macron members of the french delegation and distinguished guests, welcome to the white house .

[inaudible conversations] >> mr. president melania and i were honored to visit your majestic country last summer. now we are thrilled to host you and here in america. the wonderful friendship we have developed over the last year is a testament to the enduring friendship that bind our two nations. it is truly fitting that we are holding our first official state visit with the leader of america's oldest ally. the proud nation of france. [translator]

>> this morning, we all sending our prayers to the bush family as we wish former president, george h.w. bush a very speedy recovery. i also want to express our deepest sympathies to the canadian people following the horrendous tragedy in toronto that claim so many innocent lives, our hearts are with the grieving families in canada. [translator]

>> your visit, mr. president, comes at a critical time for our alliance along with our british friends, the united states, and france recently took decisive action in response to the syrian regimes use of chemical weapons. i want to prnlly thank president macron, the french military and the french people for this steadfast partnership, they were absolutely incredible. thank you very much, mr. president. thank you. [translator]

>> a long friendship between the united states and france began 241 years ago this month when a 19-year-old frenchman named lafayette set sail to join america's fight for independence. he quickly won the trust of george washington for bravely in the battle and helped secure the aid of france for the american cause. decades later, president andrew jackson wrote that the memory of lafayette will be second only to that of washington in the hearts of the american people. [translator]

>> the beautiful friendship between the united states and france forged in rev are luges has changed the course of history. exactly 100 years ago this spring americans fought side by side with the gallant french in world war i. a generation later, in the second world war hundreds of thousands of young americans and free french sacrificed together to save civilization in its hour of greatest need. [translaytexas

[translator] >> 60,000 americans service members rest for eternity beneath the peaceful fields and hills of the french countryside. and in the soil of virginia and georgia, french name known only to god lie in unmarked graves. today, we meet to affirm this friendship that has flourished as example to the world for more than two centuries. [translator]

our two great republicans are linked together bit timeless bonds of history. culture, and destiny. we are people who cherish our value and recognize image of god in every human soul. this legacy is made us who we are and given us what we hold dear, the blessings of faith and freedom. the marvel of art and science, the love of family and community and the defense of home and country. [translator]

>> righteous calling this sacred hay taj moved a frenchman to risk death for american liberty at york town. it is what spurred the americans to storm the cliffs of omaha beach it is what drove the farmers of massachusetts to stand at concord bridge and citizens of paris to man the barricades. and just weeks ago, we added a new name to this chronicle of our great heros, a brave french policeman named arnel. colonel stared down evil and did not flinch. he laid down his life or for his

neighbors, for his country, and for civilization itself. a great man. [translator] >> and through that immortal deed a son of france reminded the world of the true measure of our strength. [translay or tore]

president macron people of france, people of america, now is the time for strength. so let us be strong, let us be united, let us honor our past and a face our future with confidence and with pride. and let the united states and france stand forever in solidarity for the noble cause of liberty and peace. thank you very much. [applause] [translator]

>> ladies and gentlemen, the president of the french republic. [speaking french] mr. president, donald trump, dear melania, madam dear distinguished guests thank you for your warm welcome and for honoring france on the american friendship or for this state

visit, the first of your presidency which bears witness to the strength of the bonds that unites our two countries. [speaking french] >> but first of all please allow me to join your condolences addressed to by the french people. to the canadian people and to express our deepest sympathy to president bush and his family.

it is in the sad moment as well and in this terrible circumstances and against these that we stand together. [speaking french] >> two centuries ago it was marketed lafayette who was welcomed back to the united states 30 years after the war of independence at the time spent almost 14 months amongst you. and fortunately my stay will be

short. but it is of special importance to me and to all my fellow citizens who for a long time have powerful and sincere feelings for your people, mr. president. [speaking french] >> many america i saw more than america. indeed in it acknowledge the shape of democracy itself. an adeal meant to guide our statesman to inspire the institutions and to acknowledge the place of free individuals. [speaking french]

>> dear, mr. president, america represents endless possibilities for my country it brings about hopes that will become prescribed destiny it is said that france renewed with optimism it sometimes envied the united states. france shares with your country an adeal of freedom and peace. [inaudible conversations]

[speaking french] >> over the last centuries we've weaved our histories through our common struggles where each tied together we have forged the western world and aspired to university. [speaking french] through all revolution from the biggening yesterday evening at mount vernon at the residency of the president of the united states george washington on

whose tomb i wish to pay tribute together with you inside the mansion, with the key to the prison which was sent to him by lafayette as a symbol of the unbreakable bond. [speaking french] >> this year then through our struggles for freedom this year as we commemorate the end of world war i, i wish to offer you a tree, from this forest north

of my country where 1918 u.s. soldiers and in particular is displayed courage and devotion. [speaking french] >> i am pleased that this tree that grew close in the soul where your soldier defend france can now be here at the white house in front as a symbol of the sacrifice and a the common battle from the united states have led together.

[speaking french] >> these values inherit haded and shared business our two countries are the foundation of which we shall continue to build and ride together side by side the top tear of modern history. porng the western world in universality such remain our challenge today. [speaking french]

>> it is together that the yiet united states and france will defeat terrorism. france and america are both confronted to it in various forms on our respective souls or in africa. it is together that we will counter proliferation of massive destruction to north korea or in iran. [speaking french] >> it is together that we shall build a new form of prosperity for all people which means innovation, free and fair trade, and the protection of our middle classes. [speaking french]

>> it is together that we will be able to act effectively for our planet i'm not just referring to climate but also to the ocean. to biodiversity, and to all forms of pollution. on this issue, we do not always agree as to the solution but in the end, such is the case in any family and in any friendship. and it is also where the faith of our children is at stake. [speaking french]

>> it is together that we can resist the rise of aggressive nationalism that deny our history and divide the world. it is together that we will build a new naturalism that democracy in the face of ill win. [speaking french] >> for our culture our identity has always been to work for all countries one is to university. [speaking french]

>> our friendship has constantly grown or more solid on the ink of the challenges we have yet to overcome. that is where we stand today. history is calling us. it is urging our peoples to find the fortitude that has guided us in the most difficult of times. trans, and with with it europe and the united states have an appointment with history. [speaking french] >> we have but one duty, mr. president, dear friend. to be about about appointment.

[speaking french] >> so thank you mr. president, and thanks to the first lady for your invitation and for giving us this opportunity to work together towards that goal. and for giving us opportunity to express once again our friendship. [speaking french] >> long live the united states, long live france, thank you. [applause] >> the formal ceremony wrapping up right there. speeches -- marching bands, a lot of good stuff. excellent stuff that is a state

visit of the president of france and his wife. [applause] and that's how we do it in america. joining me now we have monica crowley i want to go over this as we're watching ceremony threatened. monica emmanuel macron is -- >> bromance developing since donald trump became president and ashley is refreshing to see because macron appears to be only world leader so far who is willing to embrace american president openly closely and publicly. >> angela merkel arrives on thursday night in -- on friday -- she does not get a state visit like this. by any means butlet get serious here. do you think that president trump and emmanuel macron can do a deal on the -- iran nuke question? and on trade? can get a two-way deal there ?fnlgt agenda is very full they have to talk north korea, syria, trade iran nuclear deal and climate change. macron is represent ares the european point of view on the iranian nuclear deal and like to

see it preserve but improved. i think the president who said he's interested in ripping up uh-uh the deal because it was the most horrendous deal in his words of all time. but there are improvements that could be made and if he can work with the french president particularly on sunset provision which is -- allows the iranian to glide past nuclear capability, if they can remove the sunset provision and work that through, there may be some modifications that could be done through these two then. smg that's a fine picture isn't it? >> i have to say melania kind of steals the show. i had to tweet she could not look nor gorgeous that is my style goal there. the first lady and french first lady looks quite with stunning there as well style goal. melania trump. and each i think i have something going on i see a picture of melania i throw up my hands. >> bromance you did. is that legit? >> with the first lady -- >> well monica thank you indeed

for being here. right place at the right time we appreciate that. ladies and gentlemen we're going wrap this up the two presidents, the two first ladies france and the united states we're going get back to our coverage of the market which has opened 19 minutes ago. we're looking at a triple digit gain as we speak. almost trill l digits i believe we're going to take a short commercial break is that -- no. no. we're not going to do that but actually staying with this. hang on folks right the dow industrials now up 96 points that's about about .34%. mike murphy still with me let's do commentary the standout stock as of right now is google which is way, way down. correct? >> google announce earnings last night as we mentioned stock is down roughly 2.5% right now. after beating earnings 12eu789s concerns are are about the cost to get that revenue growth for the company. and it is getting hit hard coming to a krit are call level right now. >> astonished at google that makes 720 million net profit a

week is down. >> the edge and nervousness in the market that tenure just hit 3% and it is more than doubled off its 35-year lows of 1.4 in 2016. so this -- concern of the market is taking edge off a good earning season is the assent how fast will that tenure go? higher? >> 33% and it hit 3% -- and dow was up 100 points and still up 6 -- >> i think on google issue is up or for margin is the concern there and thought of more regulation to hurt margin even more going forward but let's not she was a blowout -- >> if you look at it ash, you have recently you have facebook with a sharp selloff. you have amazon with a sharp selloff mow you have google with a sharp those were all buying opportunities i think this one is as well. >> dr barton is watching ceremonies there at the white house and watching the market too. google right now is about 1038 per share would you be a buyer

at that price? >> i am a strong buyer right here stuart. i believe that what they're doing you have to -- understand that these top five companies in the world putting up 26% revenue growth now they're expenses did go up 22% to mike's point and ashley's point but these people are going to continue growing. they are still the best game this town. >> right we have a 58 point gain for the dow industrials as we speak. we have been up just over 100 now we're up 60 points 24,500 that's where we are. now some dow components reported earlier this morning. six of them you're with right lizzy. including travelers and three m, the market did not investors didn't particularly like their results. those two stocks are down and that's hurt on the dow. but we've got several other companies here we go. caterpillar coke verizon, utx. strong profits from them and travelers down significantly there. that is a drag on dow look at 3m

also a drag on the dow industrials it is a dow stock and three m down a whopping 6% a major selloff why is that down so much? >> big hit really you're not seeing growth there stuart. so investors are selling this company money manages are selling it because not only is the quarter not as stropping as they expect but guidance going forward. money is coming out looking for a better place. >> you have to have xroat if you don't show imroat you're out of business that's the way it is. >> google is negative for the year. that's interesting. travis by the way they lost some money because of the winter storm damage claims there as we said with it is a dow stock hurting overall market. now tenure treasury yield as of right now is right at 3%. i think that's -- yes, exactly 3% right there with a tenure treasury and a liz was saying highest since january of 2014. so we've got a 3% yield there and market dealing with it.

we're still up 50 points. i want more news on amazon, millions of prime members with certain types of vehicles now have packages delivered to their car, parked car, i found that astonishing would anybody here want a stranger to walk up to open up trunk and put it inside. i will gladly take a stranger in trunk of my car over walking into my house which was the last -- i think this will work out very well for them and last mile delivery are stuart. it is technologying how you get your product that you order over the internet. >> they'll do anything to get that real close to you to deliver something to you. would you buy amazon 1,516? >> i think amazon continues to be a growth story right here, though, stuart i think we're able to get a chance to buy it better into the summer with the -- with the battle with the president, and with the government looking at them. i think buying on bigger dips is going is to be the way to go after amazon. >> another amazon story announcing plans to expand its

grocery business in india. this is just at the wal-mart did the same thing yesterday. india is now battle ground. >> amazon has 100 million users in india right about size of a u.s. prime membership. these are overall users but a 200 billion in a inked why third largest economy in the world amazon an wall toe to toe and invest 5 billion in e-commerce and india. >> but wal-mart stock is now, not recovered back to where it was but over 100 a share -- >> 110 from these levels that ran to 110 and sold off and never recovered we with bought it on selloff wait for recovery and i think it will come in the near future. >> you put it off and waiting for it to come back. >> important batting ground because that is the best demographic story their demographics are so much better younger country that's why the they're a 200 billion -- >> powerful middle class.

on the horizon expanding middle class let's get to a l. apple purchase of the music identification service you know shazam under investigation bit european union regulators over there are trying to have a go at those over again. >> yeah, regulate and fine it is a big apartment of their income. >> look at apple down to 164. it was touching 180 wasn't it not too long ago? >> yeah. did it you own -- did you buy that? apple had had a dip down to 151 live on the air talking about buying stock at those levels still on stock and hoping stock will move quite significantly higher from here. betting against apple saying that iphone x isn't working. betting against product from apple is never worked. >> i want to thank everybody for excellent coverage of the arrival at the white house and for our market coverage in the very early going. gentleman, thank you there will be more varney after this.

. . . .

stuart: i call it a vote buying operation. vote for me and look what you'll get. politicians handing out taxpayer money because they think it will win your vote. "the washington post" reports that senator bernie sanders is working on a jobs program that falls into the category of vote-buying, that is my opinion. he wants the government to guarranty a job for anyone that wants or needs one which will pay $15 an hour with benefits. a government guaranteed, government job, run by a vast government bureaucracy. apart from bernie's need to attract attention and votes do we need a government jobs program in a fully employed economy? who pays for it? there is the universal income idea. democrat presidential candidate andrew yang was on this show yesterday advocating $1000 a month payment from the government to every adult aged

18 to 64. do what you like with the money. you just get it. at least mr. yang was honest enough to admit it would be paid for with a 10% national sales tax. you get the point. vote for me, and look what you'll get. not only is this economic nonsense, it is also in my opinions grossly immoral. since when has it been okay to seize your money that you worked for so it can be handed out by politicians to other people? granted some form of income transfer is legit. i'm not railing against the income tax but the scale of what the left proposes takes income transfer to a whole new level. by the way, the top 20% of income owners already pays 87% of federal income taxes. wealthy people in many states already lose more than half their income. the left wants more. as i said many times i've been here before. i have lived in socialist economies and it is not much fun for anyone.

if america goes for these guaranteed jobs or guaranteed income programs, we will be reversing our own history and we will look much more like europe a large, go nowhere museum. there will be no turning back. once you have got a government program, whether immoral nonsense or not, you have always got the government program. the left will have bought those votes forever. the second hour of "varney & company" is about to begin. ♪ stuart: it is happening right now, president trump and the president of france, emannuel macron are meeting in the oval office. we expect to hear from them soon. you with i will hear whatever they have to say. breaking economic data all about consumer confidence. still up there?

ashley: overall confidence levels remain strong, stu. the number came in 128.7 which means nothing to anybody. take it from me that is a good number. it is better than expected. after a little bit of a decline in march that is a nice strong number for april. this is based on the current perception of current business and employment conditions. consumers feel pretty bullish. stuart: maybe that has something to do with the market stepping up little bit more despite a 3% 10-year treasury yield. is it new home sales? what have you got? liz: really strong. 694,000. markets were expecting 630,000 annualized. this is a four-month high for new home sales. it looks like people are getting up off the couch. that 30-year rate hitting nearly 4 1/2%. the median price going higher. people coming into the market looks like a solid beat on new home number. ashley: there is such low

inventory there are not many options. stuart: got it. the dow up 82. individual stocks, travelers their profit fell short. there is a rise in what is called catastrophe losses. lower investment income as well. that stock down 3 1/2%. that is a dow stock. that hurts the average. verizon profit up whopping 32%, helped by the tax law. that is one of the biggest gainers of the dow 30, up 1 1/2%. caterpillar driving the dow up. it gave a rosie forecast. look at it go, 4 1/2% for a company that size. no such rosy forecast for 3m. that stock is the biggest loser of the dow 30. off 6%. google, blowout ad sales, astronomical profit. the stock is down 2 1/2%. their margins are a little crimped. $1047 buys you one share of google. check the rest of the big techs. looks to me, well, big

technology that is the story over the past two years surely. they don't have any rivals anywhere in the world, do they? scott shellady, tjm managing director. am i right, scott, the big story last two years is america's tech dominance and we have no rivals. what do you say? >> stuart, over here in socialist europe as you say the tech companies are america's darlings we are glad handing a little bit, and there is a lot of regulation that i think regulation that american companies suffer from eminating from europe. in the industrial revolution, workers rights, those type of things, the shine is coming off the tech sector in america because we're starting to see more and more regulation pop up elsewhere around the world. stuart: but they still dominate and the regulatory threat probably will not destroy their business model. got it right? >> yes, you're exactly right. here is what else i like to say.

don't you hear all the guys come on the shows what will be the big leader if it is not big tech, right? where is the market going to get its leadership from? i still say this. it will be tech. it will be different tech t doesn't always have to be the "fang" stocks. america will continue to inknow straight. that is where wealth will be created tex 10 years. stuart: you better come over here, son, you're wasted over there, that's a fact. i have to talk about gasoline, the average over here in america is 2.76. it has gone up the each of the last 14 days. you follow this market closely, scott. are we looking at $3 gas in america this summer? >> that might be the case, stuart. here is where the biggest test of the summer is going to be. how do those asset other equity prices handle a 3% 10-year and three bucks a gallon? it is the battle of the threes. keep an eye on that for the next three or four months. that will be key.

if the market stays basically unchanged for the year, we see a 3% 10-year and $3 a gallon gas, that is a good thing. that means the market is healthy. we have good roads ahead. stuart: that will be $4 in california. that is a guarranty. thank you, scott. good man. president trump is hosting emannuel macron at the white house. that is happening right now. steve hilton is with us. steve, is france our new best friend? >> well macron certainly seems to be president trump's new best friend. they clearly have strong personal relationship. that is good news when it comes to things like cooperating on fighting terrorism and coordinating strategy on syria and middle east and hot spots around the world. that is all food. the part i slightly worry about is economics because macron couldn't be more opposite to president trump's more populist approach. macron is the ultimate global. he believes in multilateral institutions. he wants to deepen and

strengthen the eu i think there will be a clash there. i hope that the president's sticks to his guns on some of the things he has been putting forward. it is always good when important countries have good, strong, relationships between their leaders. it means you can get more done. stuart: you've been in the room of these very, very high-level meetings. is there real value in personal friendship? because president macron and president trump clearly have a friendly relationship. that is quite obvious from what we've seen but does that count when they are discussing fixing the iran nuke deal or fixing trade or getting a deal between them? does friendship count? >> yes, absolutely, it really, really does. it moans that they can really get to the heart of issues and not just repeat the points that they read on bits of paper that their civil servants and bureaucrats written for them, trying to stitch up the deals in advance. when you get to really tough issues, that personal connection is what really matters t can

make all the difference, actually. so i do think that is vital. it is encouraging that they have this good relationship that is struck up. i think partly because they both see themselves as reflection of the other, however strange that may sound. they see themselves as insurgents who have taken over the reins of power from the inside. even though macron, started a new movement he is the ultimate political insider. he has been right at the heart of politics and big business in france for many, many years. still they get along and that's good news. stuart: a man with a british accent who used to work with the prime minister of great britain has to answer the following question. what do what do you think the ne of new young prince will be? is it phillip, arthur, what is the other one, thomas? what is your money going on? >> you mentioned money. i will defer to the betting markets as is always wise. i looked on the sun, great oracle, all things royal, the

sun newspaper, arthur is the favorite, 7 to 4. james five to one. albert, 11 to 2. phillip would be nice, great-grandfather. 6 toe 1. jack as well. don't you think, stuart, about time a prince stuart? may be a little scottish for their taste but i think it has a good ring to it. stuart: a little bit scottish. liz: that is the first for you. stuart: get out of here. what kind of a name is that? steve, we appreciate you being with us. we'll watch your show, no matter what you say. thanks very much, steve hilton. liz: prince stuart. stuart: mitt romney sat courtside for the nba playoff game in salt lake city last night. romney was wearing a jazz jersey over his dress shirt. he mocked oklahoma city superstar russell westbrook. romney waved four fingers at him as he left the floor. not sure of significance for

that. we love sports on this program. liverpool playing roma this afternoon. moving on. kim jong-un says north korea suspended all nuclear and long-range tests. is this window-dressing ahead of the window meeting ahead of meeting with president trump? we're asking a question. bernie sanders wants to guarranty a job for anyone that wants or needs one. andy puzder is on the set later this hour. he wrote the book, the capitalist come back, the boom and the left's plan to stop it. tonight is the first state dinner hosted by first lady melania trump. coming up the lady who planned state dinners under president george w. bush. she will geoff melania some advice. more on "varney & company."

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stuart: look at. even though the yield on the 10-year treasury hitting 3% this morning we have upside move for the dow, 70 points higher. 24,500 is where we are. harley-davidson reported better profits. the stock is up a fraction. look at pulte homes, they're selling more homes at higher prices and that is reflected in the stock, a 5% gain, very nice. north korea's kim jong-un says he halted all nuclear and long-range missile tests. he shut down a nuclear test facility as well. as we get closer to proposed summit between president trump and kim jong-un. lieutenant-general thomas mcinerney former air force vice chief of staff is with us now. tom, is this just window-dressing on the part of the north koreans? >> i don't think so, stuart. that is a very good question.

i'm very skeptical we'll be able to do anything. however, let's remember, we're dealing with a guy who wrote a book, "the art of the deal," versus his predecessor who wrote community organizer. this chap knows how to deal. he said publicly he will walk away if it is not a valid deal. stuart: i think you and i are in agreement here, i simply can't imagine kim jong-un having spent two generations of north korean activity building up missiles and nukes, i can't imagine him just walking away from the whole lot. i mean i just can't imagine that. can you? >> i'm thinking just like you are, stuart. you're spot on. however, and then there are a few dots after the however, if it can be done, this is the first time we've had a president in our modern history that knows how to deal this way. and so maybe, and i'm very skeptical, we haven't backed

off, as a matter of fact we leaked a few things, we have 130,000 troops if the kneeled doing exercise. we leaked, someone did, they will exercise a capitation strike on kim jong-un and it is leadership. they're sending a few signals that he means business. stuart: has that got kim jong-un worried, worried to the point where he might get rid of the nukes? maybe something is going on in the background here a threat delivered to north korea, maybe by us, maybe by china, but something big that really makes kim jong-un move in our direction? >> well i think that, i was aware, because i was involved with eight team spirit of a previous exercise of a decapitation strike but someone liked it publicly which i thought was very interesting. we have now weapons versus when i was on active duty, 30,000-pound bombs, that will penetrate any bunker, any

mountain he has over there, and we've got the precision to do it. maybe there is something is in the background that says if you don't deal, there are consequences. stuart: that is, we didn't know that, general. we, america, has a huge bomb that goes deep, deep, deep, wherever needs to go we have that stuff, have we? >> we do irk could we say to the iranians, we have a bunker-buster, watch out, you could say that. >> absolutely. stuart: and it works? >> it works very, very well. a b-2 can carry two of them, dropping them simultaneously into the same hole. there is a lot we have going that we have related. there is synergy between the north korean situation and what is going on in iran. stuart: did you you ever think we would be sitting here talking about a bunker-buster, threating the north koreans and iranians.

i never thought we would sit here talking about that did you. >> we have mike pompeo and john bolton as your national security advisor. this is great synergy coming together. we mean business. if you want to deal, fine. if you don't, there are consequences. stuart: you're a hardcore guy, tom mcinerney, that is a fact. >> i am, stuart. there is no bark on this tree. stuart: all right, see you soon, sir. new york, i believe that is the state, proposing a statewide ban on plastic bags. oh, this -- ashley: i know you're a big supporter of this, stu. stuart: please. ashley: i've been campaigning for this a long time. governor cuomo introduced a bill yesterday would do just that banning carry-out plastic bags statewide. what is interesting, environmentalists are split on effectiveness on this a lot of democrats are very non-committal on this there are towns in new york that already ban plastic bags.

others put a five cent fee on them. the reports of this is that there is always a way around it. you get more paper bags, a lot of people don't recycle paper bags. ultimately the effort to do this is not worth it. liz: plastic bag litter dropped by 3/4 in california by 2010. they're up in trees. stuart: wind kicks them up in the trees. they never get them down. they look disgusting. >> they stick around forever. stuart: i'm not totally against it. i'm a generous guy. candace owens conservative activist drew the attention of kanye west, he loves the way she thinks. the left pounced on both of them. we'll tell you later this hour. ♪ baby boomers,

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stuart: the dow turned negative. weir off 20 points. price of gold is up seven bucks, 1331. i think bitcoin is back above 9,000. let me check for you. 9258. facebook making changes through the process you go through when your content is flagged or removed this is in response to conservatives who asked zuckerberg what happened to facebook stars diamond and silk's posts. hillary vaughn joins us now. what kind of content will get you kicked off facebook. reporter: here is what will get you kicked off our your content taken down, anything illegal or anything they think threatens the safety of the facebook community, violence, terrorism,

i.p. theft, harrassment, hate speech. the big question, how does facebook define those things. facebook is explaining their take-down policy for violating content. users are getting inside look into facebook's rule book they use to police content on their site. until today users were kept in the dark. now facebook is letting users take action if they don't agree with facebook's policy decisions. >> what we're doing now is we're expanding that appeals process. so that if you post a photo or just some text and we remove that, you can ask us to take another look to make sure we're getting our policy right. >> this appeals process will eventually apply to everything you post on facebook, photos, text messages, if you need to take a second look, facebook says they will respond. i got to sit in a context policy meeting to see you who the rules are created to begin with. the takeaway the rules are not mandates penned by ceo mark zuckerberg and passed down to users. when a policy is flagged they

organize a group. they coordinate with outside organizations, ngos, experts, cultural, looking for people who have cultural perspectives to provide feedback. if there are times that their policies miss the mark, it is not just one person getting it wrong here. it is a lot of different people not getting it right, stuart. stuart: i think i got it. hillary, thank you very much indeed. facebook right there. coming up, andy puzder, he was nominee to be labor secretary. andy puzder will join me here on the set next in new york. ♪

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♪ stuart: one of my all time favorites. i need your love. i think we'll move on. president trump and president of france emannuel macron, they're meeting right now in the cabinet room. they have been meeting in the oval office. we have a couple of headlines from those meetings. trump says he will discuss the iran deal, the paris climate accord. those two subjects will be discussed one-on-one with the president of france. mr. trump says iran deal was insane, i believe that was his word. a terrible deal, that should have never been made. macron says, iran deal is broader issue and part of broader security in the entire region. macron he wants to contain iran

in the region. trump says iran is testing missiles, causing problems for the region. they're clearly in intense discussions about the iran nuke deal. our president wants to leave it. the president of france, emannuel macron wants to fix it and wants us to stay in. it is getting kind of intense. check the big board, we did turn negative a couple minutes ago. the yield on the 10-year treasury hit 3% mark. we've been selling off since then. we're down 20 points. 24,420 is where we are. facebook, amazon, apple, alphabet, way down, especially google, down 38 bucks. microsoft is down, competing the whole group is down. our next guest is author after great new book called "the capitalist comeback and the trump boom and left's plan to

stop it." >> thank you very much. stuart: what is the left's plan to interrupt and force back the trump boom? >> we never had a president subjected to concerted effort by the left and media to discredit everything he accomplished economically. the reason i wrote the book, one big reason was to give trump supporters the ammunition they need to fight back, number one, and to share the incredible economic accomplishments of this administration. the opposition has changed. i mean the -- this isn't the party of john kennedy anymore who was a capitalist. this is now the bernie sanders, elizabeth warren party. they bought into socialism, particularly young people. so, the idea with the book, if you have kids or grand kids and show them how free enterprise works and incredible accomplishments, you should buy the book. i can't believe how fast this economy has recovered. i was on your show probably last spring. i said, there is all these great things are happening with up interest. i really don't have time it list

them. you said, andy, it's a three hour show. i listed more. that was genesis of the book. people need to defend this guy. stuart: what about, bernie sanders is about to come out with a plan where he would guarranty a government job to anybody who wants or need one. those are his words, and it would pay $15 an hour and it would have benefits. that's his plan. that is going to be his plan. is that his way of stopping the trump boom? it would surely, it wouldn't help the economy, would it? >> destroy the economy. this is venezuela. you remember bernie sanders said in 2011 if you want the american dream he said you have to go to venezuela. stuart: did he say that. >> i think he included argentina too. and he said venezuela. they're starving in the streets. they are eating garbage. like syria of south america, everybody is leaving. stuart: it is utterly corrupt.

>> and utterly corrupt and utterly socialist. the problem in venezuela is not that socialism was improperly applied, the problem is it was well applied. i hope they give it to the kids and grandkids. we're losing a generation to the education system, and to the entertainment industry really convincing our kids that socialism works. it doesn't. capitalism is amazing. stuart: i feel like such an old guy grumbling about these youngsters don't appreciate what socialism is all b i -- about. >> our parents turned out to be right. we reedley need to tell kids what the benefits of free-market capitalism are. how it has lifted gdp per person across the globe. it eliminated poverty. it has been the dynamic economic system in the history of the

world. stuart: the trump boom is not done. we're a year into it. >> talk where it has gone already. when i was on your show for the past eight years what we talked about was, nobody could find jobs, right? the problem was you couldn't find good-paying jobs during the obama administration. people working part time. working in restaurants trying to support families. it does didn't work. the national federation of independent business survey came out. the biggest problem facing businesses today is finding qualified employees. look at number of people on unemployment is at 44-year low even though the population is way up. we have over 6 million jobs. historically high number of job openingses despite historically high number of people employed. we've gone to an economy, this tells the story, we've gone from an economy where workers couldn't find good-paying jobs to to economy employers can not

find good employees. capitalism turned country around in 16 months. stuart: i want to talk about the man nominated to be secretary of state, mike pompeo. he did finally clear this foreign relations committee but i think the behavior of democrats voting no on the man, almost all of them did, i think that is a disgrace. >> it's a disgrace. it is part of the plot. stuart: it is? >> the big fear for progressives and socialists, in other words for democrats because they have been taken over by progressives and socialists that donald trump will succeed. if donald trump succeeds, it will be like ronald reagan. it will take them 28 years before they can effectively elect somebody that can rule as a progressive. after the obama administration's terrible failure, 2.1% gdp. terrible failure on economy if we bring in a capitalist, free market president and economy booms again as it did in the '80s they're in trouble. they will do everything they can to stop this president. they are not approving people

for various positions in the government, positions that are far less high-profile than mike pompeo, who was overly qualified to be secretary of state. the perfect guy. stuart: this is absolutely deliberate? >> absolutely deliberate. stuart: don't approve anybody if you can go it? >> tim kaine voted to approve him for cia director and now won't as secretary of state. they're shrill, they're obnoxious. they're loud. you can hear them on tv. you mention donald trump and his success they go nuts. those are people guiding the democratic parity. stuart: what i'm coming away with, we ain't seen nothing yet. >> you ain't seen nothing yet. i hope people read the book. stuart: 4% growth, 4% growth? >> i think we will. stuart: full calendar year, 4%? >> yes. stuart: that is huge. >> let me tell you. when the trump boom started, when we started talking about this stuff, the trump, jason furman came out 10 years of 2%

gdp growth. the problem you can't do what trump says, it is systemic. that is the problem with obama. we didn't fail, it was everything changed. larry summers comes out and says, believing trump's prediction of 3% gdp growth is like believing in tooth fairies. guess what, for first three quarters of this year we averaged 3.1% and so 3% is something like believing in tooth fairies. i guess now we all need to believe in tooth fairies. stuart: i am glad you brought me a free copy night is yours. stuart: will you autograph it? >> i absolutely will. stuart: pleasure having you on the show. >> thank you. stuart: let me turn to something else here. very shortly we'll bring you president trump and emannuel macron tape from their meeting, some comments from the president. right now we have the dow industrials down 43 points. we have yield on 10-year treasury, right at 3%. now, ladies and gentlemen, here is president trump meeting with france's president emannuel

macron. >> mr. president, they're all saying what a great relationship we have and they're actually correct. it is not fake news. finally it is not fake news. so it's a great honor. great honor that you're here. we do have a very special relationship. in fact i will get that little piece of dandruff. we have to make him perfect. he is perfect. so it is really, it is really great to be with you and you're a special friend. thank you. >> thank you. thank you. thank you, very much mr. president, i want to thank president trump, your country, your people for this very warm welcome. this wonderful ceremony. indeed we, both of just reminded of how great our comradery is. each time we work together in order to protect liberty and freedom and now peace.

and we have a lot of challenges ahead of us regarding our two countries. terrorism, security, and a lot of other issues we will discuss. so we have a lot of work to be done together. >> that's right. >> but i'm very honored and very pleased because whatever the context could be, this relationship is stronger than it and ton top of that we have excellent personal relationship. so i want to thank you for that. >> thank you. >> what would you like to say about iran during the talk with the president? >> we'll be talking about iran and talking about many things, terrorism generally, but we will be discussing the iran deal. i know the president wants to speak to me about that we'll be discussing probably the paris accord, and various other things. so we're -- we have not much time to do a lot of discussing but, a lot of things we'll work out. we have got a very special

relationship. i don't imagine it has of been closer in the history of our two countries. that is a long and beautiful history. so we will be talking about a lot of different subjects but the iran deal will be one of them. >> will you consider staying in the iran deal? >> we'll be talking about it. we'll see. people know my views on the iran deal. it was a terrible deal. should have never, ever, been made. we could have made a good deal or reasonable deal but iran deal is a terrible deal. we paid $150 billion, we paid 1.8 billion in cash, actual cash, barrels of cash. it is insane. it is ridiculous. it should have never been made but we will be talking about it. >> mr. president, what about michael cohen -- >> thank you very much. [shouting] >> make your way out. >> stupid question. go ahead, anybody else, please? >> tell the president about the iran nuclear deal?

>> [speaking french] what i just said the iran deal is an important issue. we'll discuss about that but we have to take it as part of a broader picture. >> sure. >> which is security in the overall region. we have upcoming election in iraq, we have stability to preserve for our alliance in the region and what we want to do is to contain the iranian presence in the region and this is part

of a broader picture. thank you. >> seems no matter where you to, especially in the middle east iran is behind it. wherever there is trouble, yemen, syria, no matter where you have it, iran is behind it. now unfortunately russia is getting more and more involved. but iran seems to be behind everything where there is a problem. and you just have to take a look. you look at what's happening. look at fighters. iran is always there. and we're not going to allow certain things to happen that are happening. and the iran deal is a disaster. they're testing missiles. what is that all about? you look at the ballistic missiles they're going and testing. what kind of a deal is it where you're allowed to test missiles all over the place? what kind of a deal is it when you don't talk about yemen and you don't talk about all of the other problems that we have with respect to iran, especially, look at what they're doing in iraq? you just take a look at what's

happening in virtually any place in the middle east, iran is behind it. so what kind of a deal is this where it wasn't even discussed in i know john kerry made the statement that he didn't want to discuss other things while he was making the deal despite all of the money that we gave them, he didn't want to discuss it because it was too complicated. that is not the way to do it because it was too complicated. we made the terrible deal. but we'll be discussing it. >> iranians say they will restart the nuclear program -- >> we'll find out about that. will not be easy to restart. they will not be restarting anything. if restart anything, they will have big problems, bigger than ever before. you mark it down. they restart the nuclear program they will have bigger problems than they ever had before. thank you very much, everybody. [shouting]

>> you will find out. >> thank you. >> thank you. they are meeting now. >> and they're lucky. >> he -- he is lucky to have them also. stuart: would be nice if the trump-hating media showed a little respect for our president but they don't. that was president trump and emannuel macron. mr. trump said he and the french president will discuss the iran deal, paris climate accord. mr. trump said that the iran deal was insane. ashley: would he be open to altering more to his liking or does he want to rid it up start again? europeans want him to look at it, make changes, to be okay with it. i'm not so sure. he is very strident about what he thinks about this deal. mentioned once again the barrel loads of cash that was sent to iran by president obama. liz: middle of flash of anger somebody asked a question about

michael cohen. he said that is stupid question. president of france will say this. there is a vacuum now in syria. iran is going to step in there. terrorist breeding activities with i will happen. his argument be stay in the deal so it doesn't let its terrorist activities to proliferate. way to keep your thumb on iran. stuart: iran nuke deal is front ant center of the discussion. that's it. no impact on the market. they heard what president and president macron had to say. basically no movement. we're down 20 points. basically the markets responding to the 3% yield on 10-year treasury. the president of france and his wife will dine with the trumps in the first state dinner. it takes place tonight. here is the menu. a cajun inspired spring lamb served with carolina rice jumbalaya. tart infused with honey made at the white house and french ice

cream. here is the lady who planned state dinners under former president george w. bush. lea, great to have you with us. >> great to be here. stuart: would you like to give advice to melania, please? >> i don't think she needs any. even though the state dinner hasn't happened yet, we have seen the lovely dinner they hosted for the macrons in mount vernon, she has beautiful taste. everything has been executed flawlessly. the style is lovely and refined, elegant, exactly what people expect of an american first lady. it is clear she has taken this state visit very personally and put her mark on it. stuart: does melania go, write down into detail, like what color the napkins are, for example and that kind of thing? >> it would appear she does. i think it is wonderful because people have always been curious about her. she is a quiet person it seems. and now they're really getting a sense what she's like and how

comfortable she has become in her role as first lady. stuart: what is her role tonight? obviously she will sit next, will she sit next to the president or -- night is unlikely. normally they have separate tables. i would say her role is just to be herself and be very glamorous and showcase. best of american hospitality and goodwill. stuart: what about absence of democrats and absence of media? how do you respond to that? >> well i think that is just a, that was a political calculation made by the trump administration. that really is no reflection on the dinner. that is more politics and business. state dinners are about the business of government earning and creating a setting for that to happen because important things happen at state dinners. people make connections. they gather information. they establish the relationships and then they build from there. stuart: okay. i'm sorry to cut it short but we have an active news day. that is how it works. we do appreciate you being with us today. >> thank you. stuart: much obliged.

coming up the conservative activist who got kanye west's attention, candace owens. he tweeted that he loves the way she thinks, and they both got a backlash for it. she is going to tell us what happened in just a moment. ♪ hi.

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and as your needs change from td ameritrade investment management. stuart: our next guest got a lot of heat when she said there was idealogical civil war in the african-american community. roll that tape. >> we have black people shouting in the black. we have black people sitting in the front quietly chanting usa having a normal conversation. what i say every single time, you may have seen me on the news, what is happening in the black community you will hear it in this room first there is idealogical civil war happening. black people focused on their past, shouting about slavery and black people focused on their futures. stuart: that is the difference right there. she got a lot of praise from the celebrity kanye west, who said in a tweet said i love the way candace owens thinks. candace owens, turning point usa communications director is with us now. welcome to the show. >> thank you for having me. i'm excited to be here.

stuart: take this story forward. you got a lot of backlash what you said at the meeting. tell me about it. >> that is putting it mildly. i essentially told the truth, i have sensed for quite some time we're on the brink of an idealogical revolution. that is all across the country and all across the world particularly in terms of the black community which left held near monopoly on our ideas and thoughts over last 60 years, since lbj's great society. i spoke that, it went viral. the clip went viral. a few days later kanye simply said, seven words, nine syllables, i like the way candace owens thinks and it broke the internet. stuart: seems to me you are objecting to what i might call the permanent victim status of african-americans in the united states. that was at heart of your argument, wait isn't. >> that is exactly it. i'm tired of people looking at museuming because of the amount of medical la anyone i have in my skin i am victim.

even if bad things happen to me, guess what, stuart, they have. they continue to happen to people all over the world. i would not want to be locked into this idea of being a victim. that is weird place for me to people continually exist, quite frankly it is lazy. gives people not to go through life and punch back and they can lay back and said i'm a victim. stuart: you're a conservative. are you a conservative in the economic and political sense that you like free markets and individuality and individual freedom as opposed to some collective status? am i right? is it that where you're coming from? >> that's correct. i consider myself center right. i'm an independent. i'm a free thinker. everything is subject to change because i'm constantly evolving. that is really what it's about. i'm not particularly -- i was there to talk about capitalism, free markets the way the black community gets out of poverty and government dependence the

democrats created. it is controversial position to hold because look, i'm black. stuart: yes, ma'am, you are. now at the moment it seems like you have a very small minority of black folks in your camp within the black community. is it growing? >> actually that is incorrect. i have a very small minority in terms of blacks that have a megaphone. but blacks that don't, look at some comments on my instagram posts we launched a civil war. that is exactly what i wanted to see. i want to see blacks will to combat ideas of other blacks to prove to people we're not monolith. we think differently and capable of critical thinking. stuart: i hope you come back on the program. i hope you make time for us. we would love to hear more from candace owens. can you do that please? >> absolutely i promise to do that. stuart: it's a deal. candace, you're all right. thank you very much for joining us. appreciate it. >> thank you for having me. stuart: first class. more "varney" after this.

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stuart: you want a little pomp and circumstance? you are going to get it. in fact, you've already seen some. emmanuel macron has arrived at the white house. it's a state visit complete with a full-dress state dinner tonight supervised by our first lady. we'll tell you what's on the menu and who's wearing what, promise. [laughter] but beneath the social headlines, there's quite a shift going on here. france is making a play to be our new best friend in europe. it used to be the brits, but they've been calling our president some nasty names. later this week germany's angela merkel comes calling. she doesn't much care for president trump either, and after her disastrous open border policy she is, in fact, a lame duck. the ground is shifting. emmanuel macron takes center stage now. he's over here to persuade president trump not to dump the iran nuke deal. by mid may we have to decide are we in or are we out?

macron will have to come up with some kind of fix to keep us in. what we want from ma caron is an understanding -- macron is an understanding on trade. the president wants trade deals to be good for america. perhaps the french can help accommodate that. maybe. that would be an interesting deal, a fix on iran and trade in both countries' interests. shortly, you will see the two presidents emerge to take some questions. inevitably, the anti-trump media will belittle any progress that could possibly have been made. they already have. last hour someone shouted a question about the cohen investigation during macron's meeting in the oval office. trump's response, that was a stupid question. well said, mr. president. ignore it. america is redefining its relationship with europe, and you are going to watch it happen. the third hour of "varney & company" is about to begin. ♪ ♪

stuart: there it is, center of the action, the white house, usa. president trump holds a news conference with france's macron shortly. it'll happen in about 45 minutes, and you will see it happen right here. watch it live. president trump took some questions from reporters during a meeting in the last hour. listen to how mr. trump responded to that shouted question about the cohen investigation. roll tape. >> mr. president, what about michael cohen? is are you -- >> thank you very much. [inaudible conversations] >> stupid question. stuart: well said, mr. president. joining us now, fox news politics editor chris stirewalt. i was urging on our president right there. that was a stupid question, showed a total lack of respect for the president of france and our value office. am i going too far, chris? >> well, i appreciate your sensitivities to the subject of decorum. [laughter] i know that you stand on, stand on ceremony, and i would never want you to be harmed in that

way psychically. [laughter] look, it is, it's a foolish question in this way: the purpose of asking the question is to try to goad the president into a response. so i think that was john carl from abc, succeeded in that way. he got the president to take the bait a little bit. stuart: and that's considered a success, chris, really? on the part of our media? >> i didn't -- well, first of all, i work for the fox news channel, and i don't work at abc. i'm saying that in the mind of the questioner, i presume they think it was a success because they got the president riled up, and he took the bait. now that's that. now, the reason it's a pointless question is we have no idea what michael cohen's going to be charged with. we have no idea what, if anything, he's going to be charged with, what kind of crimes are involved here, do they relate to the president, do they not relate to the president. it's way too early in the criminal justice process to determine what kind of trouble cohen's in and whether or not it's germane to the president or whether he might pardon him.

it's just too soon to say. stuart: i'm not trying to draw you out in this, chris finish. [laughter] i'm really not. but i'm fit to be tied. i think the behavior of the american media vis-a-vis trump is an absolute disgrace. i don't think you'd go that far, but are you disappointed? >> well, i reserve disappointment generally for myself. in terms of media criticism how the press has done under trump, i would definitely associate myself with remarks by chris wallace and many other people who have said many reporters have tried to get into the arena with trump, too many journalists have tried to get on the playing field with him. he generally wins because he's better at that. but when they go to invective, when they go to hard line, what seems like partisanship, it's always a mistake because we are surrendering really our greatest advantage. and our greatest advantage is we have removed, we have perspective instead of being pugilists in the fight, and i think reporters, when they do that, make a mistake.

stuart: want to draw your attention to that special election underway in arizona today. this is a real challenge to the republican, the republican, mr. frank, has resigned. and the contest is between two women, democrat, republican. who -- this is a real challenge, chris. >> if it is, then the republicans are going to lose the house and the senate. this district, i doubt that it should be much trouble for lesco. the polling that i've seen indicates that she should win by trouble a double-digit margin. this is not like that western pennsylvania district. this was different for a couple of reasons. one, the electorate here is much older, much holder than it is in western pennsylvania. a lot of retirees in arizona. but number two, these are republican republicans. they're voting, most of the voters in this district republicans. difference in pennsylvania was there were a lot of trump voters who weren't necessarily republicans, so it made the real

partisan advantage in the district narrower. in arizona the republicans have a huge partisan advantage. i cannot imagine anything other than eight points or better. if it gets down to five points or below, they're going to have to do some serious soul searching. stuart: chris stirewalt, thank you very much, sir. i'll not browbeat you again. [laughter] >> next week. stuart: next week. thank you, chris. check that big board, a modest loss at the moment, but we've still got a majority of the dow 30 on upside. there are a couple of big dow stocks that are down sharply. that is hurting the overall average. we're down 43 points at this moment. now, the ten-year treasury yield hit 3% for the first time in four years a little earlier this morning. that helped convert a 100-point gain into a, what, a 50-point loss. john layfield is with us. is that what's driving the market down at the moment, hitting that 3% yield? >> it is.

dividend stocks have been the de facto bonds for the last number of years. you've seen an incredible runup but, yes, that is a significant worry to the market. when you went from the potential of three interest rate hikes to four, that's when the market starts selling off. stuart: i think if it went to 3.25, 3 .5%, you'd see a more profound change in the stock market. but i'm surprised that a growing economy cannot accommodate a 3% ten-year treasury yield. i think this whole thing is overdone. >> i think it's a bit overdone too. historic create, these interest rates -- historically, these interest rates are significantly low, and that's good because when you have as much debt as we have, we would be in a lot of trouble. we will get back to that point at some point. it's easy to foresee a financial crisis to come in history once rates normalize. yes, no competition whatsoever

for yield, for asset valuation except for the u.s. equity stock market, and that's one of the reasons the big runup has happened. anytime you start to see that interest rate rise, that competition narrows. stuart: you know, i read your stuff, john, and i know that you like general motors. you want to buy it. tell us why you want to buy gm. >> i own it right now, i would buy more right now. it has a 3.9% yield, but the biggest thing to me is they sell 3.6 million cars in the united states, 4.04 million in china per year. and because of what is going on with this trade negotiation with china, i think that the ease of getting cars into china is one of the things that the president is going to be able to get done. i think that benefits general motors. stuart: many of the analysts on this program, or the market watchers i should say, have gone for oil stocks. one person said buy exxon, just buy it no matter what, buy it. but you're saying buy bp. why? >> i own exxon also, also own

chevron, royal dutch shell, but bp probably is my favorite stock right now, 5.6% yield. the reason is because of west texas shale, you have a bottleneck in production. saudi arabia, which could not control oil prices for so lang because when they lowered their quotas, they lost market share. now because of this bottleneck, saudi arabia's back in play. the aramco ipo coming out sometime probably in the next year because of their own solvency as a country. until that bottleneck gets adjusted, i think we're going to see continued high oil prices, and that benefits the oil majors. stuart: and i think bp yields about 5% dividend, if i'm not -- >> 5.6%, yes, it's one of the highest yielding stocks and a very solvent company. stuart: at my age yield is good. john, thank you very much, indeed. back to the beach, young man. let's check the price of oil, it's 68.54, that's where we are. take a look at the price of gasoline, $2.76 is your national

average for regular. keeps on going up ever so steadily. that caravan of migrants from central america getting real close to the southern border, and i want the know what happens when they step into our country if they do. we will ask that question of judge andrew napolitano. a big issue in the trump/macron issue is the iran nuke deal. we'll ask david rubin, former mayor of shiloh, israel, about that. rubin wants the deal torn up. and, of course, we're awaiting president trump and macron. it's a live action-packed day, and you can see it with us. we'll be back. ♪ ♪ think your large cap equity fund has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can

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stuart: live look at the white house, president trump will hold a meeting in the cabinet room with the french president, emanuel a

macron, that will start shortly. they're a little behind schedule today, we're expecting to see tape from that meeting very soon, and when we get it, you will see it immediately. all right. a new report claims the richest 1% are on track to control two-thirds of the world's wealth by 2030. the u.k.-based house of commons library says those top earners will hold assets worth $305 trillion in 12 years, that's up from $140 trillion today. well, that's the brits. we expect to hear from president trump and macron again this hour. joining us right now fox news contributor nigel farage. all right, nigel, how do you feel about emmanuel macron, the president of france, being the new best friend of donald trump? >> well, you know, i met macron last week. i chatted with him, i went to a lunch with him, and whilst his views, his globalist views are miles away from mine and miles away from president trump's, you have to say there's something a

little bit classy about macron. he comes across as somebody that believes in stuff. and remember, bastille day, the 14th of july, last year france's big national day, macron rolled out the red carpet for donald trump. trump was treated incredibly well in paris. by contrast, theresa may, her hesitancy and, of course, the mayor of london, sadiq khan, are doing all they can to stop the president from visiting us. so the truth of it is france have stolen a march on the u.k. in terms of their relationship with the president. stuart: now on thursday night and then into friday, angela merkel will come to the united states. it's not a state visit, but she, i think, is on the outs as far as president trump is concerned. am i right? >> yeah. well, look, macron, you know, one of -- won a remarkable victory in france. merkle effectively has blown her entire political reputation by this disastrous mistake of

opening up the door to far too many people from completely different cultures. and i would imagine that donald trump is going to get more out of the macron meeting than he is out of the merkel one. it's unlikely that merkle can survive as leader for this parliamentary term. stuart: you know, anybody that i interview who has a british accent i'm obliged to ask about the new royal baby. so here's the question -- you're ready for this -- what's the name going to to be, albert, philip, arthur or thom? >> i'm going to go for arthur. it's interesting, when prince harry was named, the name harry had virtually died out. the same is going to happen for arthur. it's 7-4, that's the price you get now u.k. bookmakers. i reckon it's ad good book. stuart: now, you know both sides of the pond. you're comfortable in america, you've worked here a long time, you know britain.

why do you think it is americans are so obsessed with britain's royals? >> well, you're right, they are. although i have to say britain is now more obsessed with its royals than it's been for a long time. i think in america's case, you know, we've got something here, you know, that is going back for 1500 years, something of real antiquity, something that is just slightly beyond the prying eyes every day of the cameras and the media, something with a little bit of mystique. and do you know what? it just works. [laughter] stuart: yes, it does. don't fix what ain't broke. [laughter] nigel farage -- >> absolutely. stuart: good luck with that bet on the name there, man. [laughter] okay. we've got the dow down 62 points at the moment. i think the price of gold is also, actually, it's up $6, holding right there at 1330. bitcoin earlier today was above $9,000 a coin, and i believe it's still there, moving up a

bit more, $9,300 per coin. icelandic budget airlines, wow air, it's looking for two people to move to iceland and travel the world for free. they also produce content and travel tips for the airline's web site. the winners will be paid about $4,000 a month to stay in an a apartment in reykjavik, the capital. the trip begins june 1st and lasts until august the 15th. >> so where do you send in your application? [laughter] stuart: my producer in my ear says, where do i sign? a nasa aircraft has spotted something in the arctic that has never been seen before, that's their quote. those pictures show the mysterious ice holes, the first of their kind ever. we thought we'd show them to you. and we're still waiting to hear from president trump and macron, meeting in the cabinet room right now. again, when we get those remarks, you will see them pronto. but while we wait, fiat

chrysler's got a new ram 1500 pickup truck, and gary gastineau is going to try and sell me one. i've already got a ford f-150, but i'll take a look at this thing, and we'll be back. ♪ ♪ anna and mark are heading into retirement... and a little nervous.

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stuart: we have some headlines coming through from the meeting between president trump and president that mack krone. mr. trump -- macron. mr. trump is saying he has solutions to a number of issues. mr. trump says trade with france is complicated because of the european union which has trade barriers which he says are unacceptable. mr. trump says he would prefer to deal directly with france on trade. i guess that's bilateral, one-on-one. so trade is being discussed, and earlier they were clearly discussing the iran nuke deal. fiat chrysler hopes to attract a new generation of truck buyers with the all new ram 1500 pickup. gary gastineau is with us, and i want him to sell me one of these things. whatsell me that one. >> stuart, i'm not going to sell it to you, but i've got the guy that can do that for you, jim morrison, head of the ram brand. your background is actually in marketing. stuart varney owns an f-150, and

he's probably the fanciest guy i know. give me three reasons why he should buy this? >> well, it's a no-compromise truck. it's a hard working truck, as you can imagine, but it's more technologically advanced than any of the competition. everybody's talking about the 12-inch radio -- >> that's the big display screen in the middle. >> yeah, for sure. but it's got more luxury than any be ford or chevy has, and more luxury is defined by more real wood, real leather and more metal than -- in the interior and premium materials. but it's also got the best ride and handling, and, in fact, the rear seat room has more leg room than any truck in the marketplace. so lots of space in this new ram 1500 as well. >> big v8 hemi, a hybrid version as well. i've got to ask you, this is where the growth is, where the profits are. people buy these to drive them every day. gas prices just hit a four-year high a couple of days ago, is

that a concern yet for sales, or what would be the point where that becomes an issue? >> well, you know, sales continue to grow, and i think if used this technology we've added into the hemi, it's got a 12% improvement in fuel efficiency because it's using mild hybrid technology to grab the energy from the truck when it's braking, feed it back when it needs to. >> third best selling vehicle in america, you spent a couple months at number two last year. >> yes. >> you've got a new assembly plant for this one. can you sell enough to take that number two spot? is that something you're aiming for? >> that's for sure. we continue to bring customers on line with the ram brand. we have the best loyalty in the business, and we like having them as customers. >> big year for trucks, we'll see how sales are in a few months. stuart: i'm afraid i'm married to the f-150, but he did a nice job.

thank you, jim, and to you also, gary. that caravan of migrants from central america getting closer to our southern border. i want to know what happens when they step across the border and into our country? do they stay, get everything? judge napolitano on that. and emmanuel macron is over here to persuade president trump not to dump the iran nuke deal. we'll ask an expert on israel-american relations, david rubin, about that. and, of course, we're awaiting the macron-trump tape. it is a live action, live -- jam-packed day, let me put it like that. >> yes. stuart: we'll be right back.

stuart: we have headlines from the macron/trump meeting, and this one in particular is very important. this is news. president trump says treasury secretary mnuchin is going to china in just a few days to negotiate on trade. that may have helped the market a little bit. we're only down five points at this moment. there's also a headline on north korea. mr. trump says he will have a meeting with kim jong un very soon. north korea wants it as soon as possible. he says mr. kim, kim jong un, has been very honorable and open so far. a lot of news coming out of this. >> wow. stuart: we do expect to hear from the president any minute and, of course, when he speaks,

you'll hear. check that big board, we're only down 16 points now. we turned south after the yield on the ten-year treasury hit 3%. we're still there, the dow's off 20. now, that caravan of migrants from central america, real close to the border now. i want to know what happens when they step across the border and into our country. do they claim asylum and stay purchase? judge andrew napolitano is here. i know i'm being pejorative, judge, i know i am. >> you, pejorative? you, an immigrant, pejorative? [laughter] stuart: yes, absolutely. i came legally. are they going to just walk up to the border, take one foot across and say i claim asylum? >> probably. that does not, of course, allow them to move around the country freely. it actually allows the government to restrain them, detain them until an asylum hearing. stuart: but we haven't got the facilities. >> that's the government's fault. the government is aware of the law. it's been the law for a long time. the president -- i'm actually

tired of hearing the president complain about the law because he has the knewer in call forces in the -- numerical forces in the congress to change it. it has been since the lbj years one foot in the u.s., and you have the right to an asylum hearing. if they know the caravan is coming, they can produce temporary facilities to hold these folks, they can produce administrative law judges to hold the hearings, this can all be done in 30 days. i don't think that's going to happen because i don't think they're ready for this. stuart: but what's happened in the past, they set foot on american territory, claim asylum -- >> get parole or bail or some sort, and we never see them again. stuart: exactly. >> and whether they enjoy the social benefits, wealth transfers, education, emergency rooms and government makes available, hay probably do. but the government has right finish you'll enjoy this part -- the government not only has the right to restrain them, they are not entitled tothe government'sn

these amnesty hearings. if somehow they can afford their own lawyer, if some immigrant group wants to present a lawyer, the lawyer can represent them, but they cannot force the government to pay for a lawyer. question: how quickly can this be done? that's up to the department of homeland security. they've known for weeks this caravan is coming. stuart: does it trouble you at all, this situation? >> no, it does not, because it shows -- i'm going to ask if -- i'll let you question david. stuart: we are being gamed. >> it shows the fidelity to due process and is value of -- and the value of every human life that the american government, like the israelis, shows. stuart: so we encourage people to come here knowing that they're coming illegally and will stay as long as they possibly can, if not forever. >> you know in my world the welfare state would not exist, but that's just my theoretical world. that's the encouragement.

on the other hand, some of these people are encouraged to come here because of freedom and opportunity, sort of like the person to whom i'm speaking at the moment. stuart: yes, but i came legally. >> stood in line. i filled out the forms. >> if they set foot in the country and is -- and justify the allegations of what happened to them in honduras, that would be legal. if they prevail in this hearing, their entry will be legal. if they don't prevail in this hearing, they'll be sent back on the taxpayer expense. stuart: the producer just said will you speak up, please, because we didn't catch all of that. [laughter] we got the laugh, but we didn't get anything else. in just a few seconds, literally, we're going to get tape from the president. i think this will be the meeting with macron in the cabinet room. is that correct, justin? we'll get those literally 30 seconds, we'll find out exactly what it is. as we go into this tape, let me tell you the dow points. it is a minor loss. the yield on the ten-year

treasury is right at 3%. so that's the situation as you go into this tape, and you'll be hearing right from the president himself. the news that we've got so far is treasury secretary mnuchin is going to china. here's the president. >> we are going to have a short, little meeting, and it turned out to be a long meeting, and it could have gone on for another two hours. we discussed a lot of things, a lot of problems in the world, a lot of problems that we think can be solved. we've come a long way, just the two of us, i think, as understanding. we talked about iran, we talked about syria, we talked about a lot of subjects that really are big, big, hard situations, and we think we have solutions to a number of them. so we're going to continue to -- continue that now, and then we'll meet again i think after this meeting, but we wanted to

get the opinion of some of the experts in the room. we have great experts on both sides, so we wanted to get the opinion of some of the experts. very good numbers are coming out on our businesses. you're seeing the numbers that are getting released on our companies and our businesses, they're very strong. the economy is, has been really incredible. unemployment now is at the lowest point ever in history in many, many states. the states were enumerated last night, late last night, the numbers came out. and we've hit the lowest unemployment numbers in many decades in some cases, and in some cases the lowest numbers period. it was just reiterated that unemployment for african-american families, it's been the best in history. for hispanic families, the best in history. for women, the best in 18 years, and that's very close to going much higher than that. so it's really something very

special, so we're very happy about that. the president and i are working on trade. the trade with france is complicated because we have the european union. i would rather deal just with france. the union is very tough for us. they have trade barriers or that are unacceptable. our farmers can't send their product into the european union easily as they should, and we accept their products, so we have to make a change. and they understand that, and we're negotiating, wilbur and steve and everybody, we're negotiating with the european union. but it's been very unfair for a long time. we had a trade deficit with the european union of $151 billion last year. that's unacceptable. this has been going on for many years, and that's unacceptable. the treasury secretary, steve mnuchin, will be going to china in a few days to negotiate on trade. i think china's very serious. we're very serious. we have no choice but to be very

serious. you know we've put on very substantial tariffs, and that will continue unless we make a trade deal. i think we're, we've got a very good chance of making a deal. as you know, they've just stated -- president xi, a terrific guy and a friend of mine, but he's representing china, and i'm representing the united states. president xi made a speech four days ago where he said that china's going to be opened up. because it's not opened up right now. they trade with us, we can't trade with them. they did $504 billion last year, and we did $120 billion. that's a tremendous imbalance, and we can't have that, so we're going to have a delegation at their request go to china. they came here recently, and we're going there. and that'll be good. european union, by the way, we are going back to that. we're negotiating with the european union to have their representatives come here. and i think we're negotiating very, very seriously.

nafta, as you know, is moving along. they have an election coming up very soon, and it'll be interesting to see what happens with that election. but we're doing very nicely with nafta. i could make a deal very quickly, but i'm not sure that that's in the best interest of the united states. we'll see what happens, but we're doing very well. and south korea on our trade deal, we're doing very well. and as far as north korea's concerned, we are going to be having a meeting with kim jong un, and that will be, that will be very soon. we have been told directly that they would like to have the meeting as soon as possible, and we think that's a great thing for the world, that's a great thing for north korea and south korea and japan and france and everybody. so we're having very, very good discussions. kim jong un was, he really has

been very open and i think very honorable from everything we're seeing. now, a lot of promises have been made by north korea over the years, but they've never been in this position. we have been very, very tough on maximum pressure, we have been very tough on, as you know, trade. we've been very, very tough at the border. sanctions have been the toughest we've ever imposed on any country. and we think it'll be a great thing for north korea, it'll be a great thing for the world. so we'll see where that all goes. maybe it'll be wonderful and maybe it won't. and if it's not going to be fair and reasonable and good, i will -- unlike past administrations -- i will leave the table. but i think we have a chance of doing something very special with respect to north korea. good for them, good for us, good for everybody. and with that, thank you all very much. mr. president, would you like to say something? >> thank you, mr. president, for

those words. wanted to get together again before the press conference just to say very good discussion, indeed, on syria, on iran, and some other important topics regarding our security. and i think we, we have to work together because we've always worked together on these issues, and it's very important to preserve the stability of this region. i think what we want to do in the interests of our people is precisely to preserve stability, sovereign states without any -- [inaudible] as for the trade issue, you presented your perception of the situation, and you you were faio remind everybody that the bilateral relationship is balanced between france and the u.s. >> it's true. >> and i think it's very important to bear in mind

regarding important issues, it's impossible to make any trade war. we have to deal with common global challenges regarding our trade. one of these global challenges is definitely overcapacity in steel and aluminum, and we have to fix situation. i think we have worked fairly on that. we need several discussions -- [inaudible] as you mentionedded chg but i think our willingness is precisely to preserve this framework and to work very closely together and to deal with this current destabilization in the mideast. as for other aspects, we discussed as well about paris agreement regarding climate, and i have to say that our business people work very closely together, is we want to -- and we want to increase this cooperation. we know everything about the

treaties and the international agreements, but i think beyond that we have a lot in common to work on, and we will follow this discussion in the coming weeks and months. and now we will work on details on a lot of these issues. but thanks very much, again, mr. president, for the very direct and fruitful discussion we have, you and me, and for the opportunity to discuss with your vice president and your secretaries on these issues. thanks very much. >> well, we have had a great relationship on just about everything, and too bad it's not just us doing the negotiating for the rest of the world. but we have had a great relationship. and our trade situation with france by itself has been very good. the trade product and the trade deals that we do with france, unfortunately, european union represents to a large extent france, and we've had pretty

unfair situation with the european union but a very fair one with france. so that will continue. that will always continue. we will always be very close to really our oldest ally, when you think of it. france is our oldest ally. and we will, we are going out of our way to do that. i think we've really had some substantive talks on iran. maybe more than anything else. and we're looking forward to doing something, but it has to be done, and it has to be done strongly. and they've very much been butchers, and we can't allow that to happen. so we understand each other, and we'll see how that comes out. and we could have at least an agreement among ourselves fairly quickly. i think we're fairly close to understanding each other. and i think our meeting, our one-on-one went very, very well. i hope you feel the same way. >> definitely. >> thank you very much. thank you, everybody. >> thank you -- [inaudible] [inaudible conversations]

>> stay in syria, mr. president? >> thank you. >> make your way out -- >> you'll find out. >> thank you, let's go. make your way out, let's go. we're leaving. >> thank you very much, everybody. thank you. >> let's go, please. [inaudible conversations] stuart: we were waiting there for the last shouted question. it did not come. but the president did make news today. he said treasury secretary mnuchin will be going to china to negotiate on trade. that is news. anybody in the financial community knows that the trade

situation and what the president had to say, that is nudes. he also -- that is news. he also said and has been discussing with mr. macron about iran nuke deal. and the president just said that they've had substantive discussion about that iran nuke deal. david rubin is with us, now, he knows a lot about america, israel and our relationship and the relationship with iran. david, welcome back to the program. good to see you. >> thank you, stuart. stuart: now, during that tape there, you and i were talking and you say that the hostilities have already begun between israel and iran. already started? >> yes, they have. stuart: tell me. >> well, up until this point in recent years it's been iran supporting hezbollah, the hezbollah terrorist organization in lebanon, and they've been supporting syria in syria, obviously, assad, and the hamas in gaza. so basically having israel surrounded but through these surrogate terrorist

organizations. but now what has been happening in recent months, in the past year or two is that iran is ensconcing itself in syria. there are iranian military bases in syria with iranian revolutionary guards. and israel has already launched preemptive strikes against them. now, it's not the preemptive -- the big preemptive strike that we've been talking about against the iranian nuclear program in several sites in iran, but what we're talking about, what's actually happened and just happened about a week before the american strike is israeli strikes on iranian military bases in iran. excuse me, in syria. stuart: in syria. >> but it may be a harbinger of what is to come. stuart: now, president macron and president trump are discussing the iran nuke deal. president trump wants to rip it up and leave. president macron wants us to stay. he wants some way of fixing the

agreement so that we stay in it. now, i know that you and israel oppose this nuke deal. you want it gone. but is this a fix? any kind of fix that you can think of that would keep us in and you'd be happy with it? >> no. [laughter] stuart: okay. [laughter] >> but there is a longer answer. there are certain things that could be done to make the nuclear deal better. okay? they could have a percent inspection be regimen. right now the inspection authorities can't just come in. they can't just go in and inspect all of the iranian nuclear plants. that is not allowed in the agreement. so things like that can be changed and can be improved. it would make it better. however, that doesn't mean they're not going to be going full force ahead with their nuclear program to the extent

that they're allowed within the agreement. and ultimately, at the end of those ten years -- and ten years is a very quick amount of time in the seem of history -- to the scheme of history, they are going to have a nuclear bomb. so i predict that israel is going to continue the preemptive strikes on syria, on the iranian plants in syria because there is no way that we can allow that. it's right over the border. stuart: understood. >> i'm sure that macron would not allow military bases of a hostile country that says it wants to destroy france being just miles away from the eiffel tower. i'm sure he wouldn't allow that. stuart: david, would you stay there for a moment? i've got a lot of news i've got to catch up with here. i want to bring in former white house press secretary ari fleischer. he's with us this morning. ari, you've been watching the proceedings all morning long. seems to us sitting here in new york watching the tape that it's a very successful meeting, that president macron is, indeed, the

new best friend of president trump in europe. [laughter] i hear you laughing, are you in agreement with that in. >> well, he is right now. these things are subject to change. but there are two other things that caught my ear in that news conference by the president. thurm one, he seems to be indicating that we're going to stay in the iran deal and that we're going to work something out with france. that was notable. i think if he was going to withdraw, his language would have been very different. number two, he called kim jong un honorable which is a puzzling thing to say, to put it mildly. kim jong un is not honorable, north korea has not behaved honorably, and i don't know what he was thinking when he says that other than if it's a negotiating ploy to soften him up. that really raised my eyebrows. stuart: but it could well be a negotiating ploy, a statement of position buttering up your opponent. >> right. stuart: i mean, you could certainly say that, couldn't you? staying on the right side of public opinion, sounding nice. i can understand that.

>> that's the only reason to do it, because there's no substantive reason to do it. kim jong un and north korea have violated every agreement they've made with the united states vis-a-vis their nuclear program, and they've been reckless and aggressive throughout the region, most recently last year threatening american islands in the pacific ocean with annihilation. so it was a puzzling thing to say. but iran is really the bigger news to me here because if the president and president macron reach an agreement on how to toughen up the iran deal, they still have to get china and russia and iran and other nations to go along with it. so this really seems to me still to be a stretch. i want to see what they come up with, if they do, and how they're going to possibly get it across the finish line. stuart: i thought that the news that came out of this meeting so far, the big news, is that treasury secretary steven mnuchin is going to china in the next few days to negotiate on trade. i think that's a very big deal,

how about you? >> you're right, stuart, that's notable as well, of course. and there were rumors about that just days ago, now it's official. and that's to the well and good. obviously, this is one of the biggest issues we face, and here i think president trump deserves credit for doing something nobody would have previously done which is using the threat of tariffs -- something we all think are wrong to impose -- to initiate doing good with china. and china has been a bad player around the world when it comes to its behaving by the financial rules of trade. very interesting development. let's see what comes from such a meeting, but there's promise here. stuart: ari, i just picked up on what you had to say about the iran nuke deal and what the president's language was in that tape that we just heard. david rubin's still with me. david, it did sound like the president was not exactly eager to walk away from the entire deal and rip it up. is that what you thought? >> that's a possibility.

i mean, i also heard his speech where he spoke about strength. he emphasized strength. i don't think that the president really wants to go along with deal. i think that his gut feeling tells him that tested bad, that it's -- tells him that it's bad, that it's a detrimental deal, and it could be that he's throwing a bone to macron. stuart: exactly. supposing he could get something from macron -- >> just to show him i will consider -- stuart: yes. i'm being a reasonable guy with the iran nuke deal, what have you got for me? >> however, president trump has some very good advisers now, and he has built a very potent team around him with mike pompeo who, god willing, will be approved very soon and john bolton. these are, these are excellent people and adding them to his ambassador in israel, david friedman, people who really understand the middle east. and i think that they understand

that iran stands by what it says when it says it's an all-or-nothing deal. stuart: okay. >> and so they can talk, they can throw bones to each other. what it's going to come down to is that iran is not going to compromise, and if iran is not going to compromise, there's no deal. stuart: i want to bring ari fleischer back in, you've been listening, last word to you. >> well, that's exactly right. this was an agreement that the previous administration reached with iran, and if we're going to do something differently, we ought to get out of it because it's so flawed. or if we're going to renegotiate and make it a tougher deal, iran has to go along with it. i just don't see that happening, so i'm worried here that this could be spinning wheels in an effort to be nice to france, nice to germany but bad for peace and security in the region because iran gets to go nuclear within seven years, and they get the billions of dollars, and they can have their ballistic missiles. it was a flawed agreement that was reached by the previous administration. president trump promised he'd pull out of it.

i'm a little surprised by his language with president macron. stuart: ari fleischer, thank you very much for being with us. we have been discussing serious subjects this morning whether it's trade, china, the iran nuke deal, europe and america trade, best friends between america and france. all very serious stuff. i'm going to change tack. edward lawrence is in d.c. with details on tonight's state dinner. what do you have for us, edward? >> oh, stuart, it sounds amazing. there's going to be 13 tables in the room here, 10 people per table. the head table, actually, will be in the center of the room. breaking from transition or at least recent tradition, the couples will be sitting together. the color scheme is a cream and gold. just take a look inside the room. it looks like something you would see in the palace or chateau of versailles walking in there. the first lady chose clinton china mixing in bush 43 and clinton dinner service china. leading into the room from across the hall, there are 1200

cherry blossom branches, and i can tell you it smells divine. let's talk about dinner, stuart. the first court uses greens from the white house kitchen garden. the main course will be a rack of spring lamb and is carolina gold rice jambalaya which will be cooked in new orleans cajun sauce spiced with herbs from the white house south lawn. dessert will be neck that lean tart infused with white house honey and accented by ice cream. this is a wine-pairing dinner or, and this is where we infuse the french and american sort of together, we have a wine grown in oregon with french plants where the plants thrive in that area. the entertainment for tonight is going to be the national opera from, performers from the john f. kennedy school of performing arts. and i can tell you, stuart, i think maybe my invitation was kind of lost in the mail. [laughter] stuart: the dress for a state dinner is highly formal, i think. is that right?

>> exactly, yeah. it's going to be a formal affair. just by looking at the room you can tell, but generally state dinners are high fashion. it should be very interesting to see what melania trump will be wearing. obviously, today wearing michael kors, stun anything that hat that she was wearing -- stunning in that hat, almost showing up the first lady of france. both of them looked stunning. stuart: all right, edward, you've made your point, and we thank you very much, indeed. i'm going to go around table and start with the judge. i would give my right arm to be at that state dinner. >> oh, i would love to be there too. it's a fabulous, fabulous gathering, but i must say how is mrs. trump going to use the clinton china? didn't the clintons take that with them when they left the white house? [laughter] stuart: oh, you are -- oh, that was biting, biting, indeed. [laughter] >> you told me to be myself. stuart: i asked for it. lizzie, you'd give you right arm finish. >> i would love to be there. no democrat members of congress, no media. i would just love to be there.

>> how much fun would it be? oh, my gosh. i'm putting out my, please, give me -- stuart: david rubin, you're still here. you bring him to new york, and he stays forever. [laughter] you'd go, wouldn't you? in a heartbeat. >> i would go. i'd love to speak with even, but there's no kosher food, stuart. [laughter] stuart: i'm going to break away to coffer the market and your money for a moment. we've taken a turn to the south, literally in the last few minutes. i thought that the news that treasury secretary steven mnuchin was going to china to negotiate trade -- >> a positive. stuart: i thought that would give the market a little spring in its heels, but not so. maybe there's something else. >> 3m is really so we had half a dozen dow stocks reporting. some gave mixed results. 3% handle on the 10-year. ashley: 2.99. stuart: we're still down 120

point as we speak. i notice by the way google which had i thought really very strong results late yesterday afternoon, they are making $720 million a week in net profit. that stock this morning is down $38. it is at -- >> "varney & company". stuart: you know, the analysts, they start picking stuff to pieces. liz: they really are. stuart: we have $38 down for google. how about that? travelers is also down. travelers is a dow stock. it is down about 3% last time i checked. it is down because they had some significant strzok losses from the bad weather -- catastrophic losses from the bad weather. 3m is big loss for the overall dow jones industrial average. the rest of the market is fairly quiet. i notice we're down 140 points,

24,300. i don't have immediate explanation why this is happening, suffice it to say we report, you can decide. connell mcshane in for neil cavuto today. it is yours. >> great show, stuart. connell: connell mcshane in for neil cavuto today on "cavuto: coast to coast." we're down 150 points or thereabouts on the dow. the president of france and president of the united states made news. forget the news conference. you can do it beforehand. blake burman on the north lawn with latest on all of that. reporter: we'll take the news