big thanks to lindsay james and lenore come back we don't see owe often enough but or or "varney & company" mr. varney, stuart take it away. >> good morning dagen good morning rch. we cover money and politics, with today make it money, and sport. david tenner is hedge fund manager worth 10 billion he bought the carolina panthers for a record price 2.3 billion all cash. tepa spotted an opportunity and put his money to work immediately monday a supreme court ruling allowed any state to open a sports betting book that raises the value of sports teams. tepa signed purchase of the panthers tuesday night. very smart move. there is other news, north korea kim jong-un seems to be newly ease hesitant about summit with

with trump and north talks are on hold. administration is saying nothing has changed. one issue, is the military exercises planned before the summit. republican rand paul suggest america should cancel those exercises as a confession. but the negotiations continue. and yes, we have yet another amazon story, starting immediately prime members will get a big discount on orders from whole foods. the price of the prime membership keeps going up. but amazon keeps adding benefits. yes, we've got it all sports, politics, yeah priermings look good for mr. trump and bret baier now that's a shore. "varney & company" is about to begin. ♪ >> right we understand morning how do we open this market in 28 minutes time we're down acrossed board but not by much.

maybe 30 points lower per the dow. following a 190 drop yesterday he was the problem for the markets baseline interest rate, the tenure treasury, the yield this morning is 3.07%. it hit 310 yesterday, that's what caused the harkt selloff we're down a little today. here's a big name and you know it macy's came in with stellar earnings report strong sales and up 2 that is 6.7% nice rally price of oil just around 71 dollars per barrel. but the price of gasoline keeps on going up. because oil keeps going up. we're at 289 now that's the natural average for regular and 12 states plus the district of columbia are now in the three dollar per gallon club. let's get back to the top of the show hedge fund billionaire signed a deal for the carolina panther a day of your the supreme court clears way for

state is to legalize sports vetting ceo of bookmaker william hill us joe welcome to the program. >> am i right in saying that supreme court ruling raises the value of sports teams in america? >> you're totally right i think mark cuban said the same thing shortly after the supreme court announcement about values going up significantly. >> said that value of the dow is maf are rick which he ownings would double because of this ruling. would you go that far? >> i wouldn't pick a specific number on it but clearly folk who is bet on games are more engaged and a massive black market today. that's on the cusp of taken out of the shadows moved into the sunlight. >> now, you're from britain you're american, but you represent a british gaming company and in britain, do soccer league teams for example do they get a piece of the betting action? >> now this is an porpght stuart they don't get anything directly that sort of legislative mandate by some cut of the action but what they do get is amazing

amount of engagement in their gains there's no more successfulful sports franchise than english premier league half of the teams have their shirts sponsored by betting companyies and bookmakers spend massive amount was money promoting the game which in turn leaves to higher engagement in the gain and higher and through games. >> now you have a big operation in america and you expanded it dramatically i think you're going to keep on expanding can you see the day coming when i go to see the new york giants play -- over in new jersey attack with me my little ipad and i can place bets on the game as the game proceeds through your company as i'm the sitting watching the ghaim can you see that coming? >> we hope so you see that in nevada and maybe folks are not using ipad but iphone but hottest thing in vegas you go to the t-mobile arena to watch the golden nights play and see people betting during game and basketball so no doubt you can

go across river at a some point up to distant future and bet during the game before the game, and you know -- you're all -- >> you love this. instead of illegal bookies you're doing illegal regulated market where tax revenue is generated for the -- state of new jersey. >> is it possible when states write the rules for sports betting in their states? that they will say that teams on which you bet get a piece of the action directly? is that possible? >> well certainly the leads are are pushing for that. they've not been successful to date. but that is something they're pushing for. we, obviously, think that it is the wrong thing to do because again, there's no more successful sports league than english premier league an you don't see that so it is important to have a healthy ecosystem a healthy tax policy, and those sort of things that we're looking for in legislation. >> all right joe ashley we thank you so much as for joining us and thank you for your venture thank you joe appreciate it. all right special guest, wait for it. fox news special report host

bret baier is with us. now why is he with us? he's got a book but it's a good one it is called three days in moscow welcome to the show. >> thank you very much. before we get to the book -- >> always pitching books -- [laughter] i like coming on the show anyway. [laughter] before we get to the book -- what do you make of this -- this maybe a little backing away by kim jong-un from the summit does it interfere with the process? >> you know, listen, i think the people in washington the trump administration the experts thought there was some sort of this horse trading, negotiating tries to set the table for -- for this summit if it happens june 12th you just had the press secretary sarah sanders tell reporters on the north lawn well if it whats it is great if it doesn't great and that's a different message than they want this to happen, but i think north korea has not been great in the past. about about living up to promise and we'll see if they do this time. >> there's demands that we cancel joint exercises with the south koreans as a way of

saying, thanks very much for giving us our prisoners back. i mean -- >> senator paul said that and there were -- multiple people at the pentagon who said that would be horrible because we've been doing this negotiation with south korea to do these military drills for a long time we do it year after year. and sending the message that we're stepping away from it -- they don't think that it sengdz the right message for the military. and for strength if you're going to operate on a position of strength then why cancel military exercises? >> now, senator paul says, because you're just going to show them some -- you know, we're going to set the table for the summit. i don't know. i don't think the president will do that. but look at the chinese tell come company. you know, we don't know what he's negotiating with china on that deal. and maybe he's in the position -- to want to do that. >> there was a reversal that's for sure. the book -- three days in moscow reagan basic premise of the book.

what? >> three days in january the final three days of the eisenhower administration. using that and farewell address to bounce back and show how eisenhower gets there, well this is another moment. this is the fourth summit between reagan in moscow reagan is in moscow delivering speech overlooked at the time to moscow state university students. and using that moment in the details of new nugget to bounce back to look how reagan gets there and end of the cold war and same formula different moment but it really factors in now -- as you look at the world today and what we're facing with the trump administration. >> the expression trust but verify that's very true today when you're dealing with north korea and iran are as we always. >> similar in that reagan said some things leading up to that that really aggressive at the time. i mean communism will be in soviet union evil empire, you know, heads were exploding in

washington when he was saying those things saying it is too inflammatory don't do it. tear down this wall. >> do you see a parallel you didn't have twitter. do you see a parallel -- a little bit. heads exploding each week. >> that's right. now exactly the same but similar scenario. where's my free coffee? >> it's coming. i've got it right down the hall. >> complengt. bret baier thank you so much for joining us we do appreciate it. now, change of pace here, i want to get to hawaii because the government there has upgraded if you can call it that the volcano where are we on that? >> warning red we've got from orange to read had is the top qarng level. this means that the volcanic eruption is eminent or already happening. it is 12 days into this thing now stew and now seeing ash flume go up 12,000 feet signifying another eruption is about to happen any time we've seen fissures open up in the earth as you can see there 20 of them spewing up this --

this, you know, molten lava and toxic gases bottom line is 2,000 spill out of the home, the geological survey says we don't know how long it could go on for but a while and interesting we say people in short generally people couldn't get insurance in this particular subdivision because it is in such a precarious position. why would you build a subdivision close to active volcano but there you go that's it for another day bottom line is ash is now being reported falling in communities or areas 20 miles down stream from this volcano so it is very active and -- not over by a long way. >> big danger is the big blow of the top goes up. yes. all right thanks ash now we have another production hold at tesla. reuters reported going to stop production of the model for three days at the end of this month trying to fix that assembly line and ran around 283 per share down a buck premarket

and african american trump are supporter said he was verbally abused by workers at the cheesecake factory in florida. says group of employees surrounded him, threatened him and booed him as he was leaving we'll tell you cheesecake factory response to that one and two more trump backed candidate winning big in last night's primaries. question -- could fear of a blue qeaf in the midterms be overblown? charlie joins us. he's next. hi, i'm bob harper,

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>> we've got a big deal in pet meds -- big field actually. at the animal health companies it is going to buy a backsis but money is back. that by the way makes blood analyzers and other diagnostic equipment and that stock is up 14% not bad. politics -- trumple are backed nominees win senate primaries in pennsylvania

and nebraska. there's a headline turning point usa kind of guy. now generally speaking apart from two senate races would you say that trump backed candidates did well? >> very well. yeah, look this idea that republican party needs to distance itself from president trump is totally incorrect are candidates that align themselveses with president his success and agenda have done very, very well and primary ares and look going into 2018, the common thought is that it is a blue wave republicans are not -- you don't agree with that. and shrinking dramatically and in margin of e-roar in three to five points and back in 2016 republicans were supposed to be about 2.5, 3 point down on generic and did better than people think and i think this november will surprise a lot of people. >> conventional wisdom as it stands right now is that democrats take the house. >> that's correct. you're questioning that. questioning it greatly because this president has achieved so much if this president was a in the the media would be harling

him as accomplished presidents denuclearization to tax cut you name it. >> here's something i want to talk to you about because you've been i don't know whether you've been invited to speak but you're going to speak at stanford university with candice this is california you're a conservative. candice is a conservative. >> candice and i this will now be the big three. we spoke at uc berkeley, we spoke at ucla and now stanford all within a span of six weeks it is quite interesting you see berkeley was -- a little bit of back and forth u.k. last was a mess that launched her in the whole thing but with stanford i'll tell you what the amount of hurdles obstacles that hurdle fee and change of location they're afraid of conservatives coming on campus. and a they're afraid are of conservative speakers coming on campus and i kind of challenge when i say if our ideas were so bad let us go on campus and no one will show up but wait a

second -- >> are they afraid of your ideas or are they afraid of violence which your ideas will probably meet with? >> look, i think they're pandering to activist when they use that as excuse i think they're giving radical a platform when they say there might be demonstration therefore this view point should not be allowed on campus but quiet interesting linda ho is a far left wing activist had the red carpet rolled the for her at stanford speaking in a couple of days for us we have weeks of litigation to get through that thousands of dollars in fees. we were stalled we had to get donors and board members involved finally we got approved and if administration really got their way they wouldn't want us to come at all but college is supposed to be a marketplace of ideas where discourse and dialogue and disagreement is -- it allowed to happen when in reality it has become a left echo chamber but we're changing that. >> i think you're winning. i really do. we've been on the air for several years now and one of the stories we've always covered is

this extraordinary left propaganda which had emanates from our university across the board that's true. they get free reign. i thought that completely suppressed conservative thought. but you are making significant -- >> like you said it has been years and year of doing this type of work through digital media and you've given a great platform but there is not so slengt majority now in college campus of students that identify with a more conservative libertarian view point we are packing up lecture halls our chapters are growing at a record rate and it is almost become the rebellious punk rock fun thing to be because -- look, who wants it be a leftest in a college campus they don't believe in any genders. you know they don't believe in free market or person responsibility we're the rebels we're ones that are the cool kids again and they're runs that are conformist i'll tell you what there's a revolution brewing and we're going win. the president all right thanks very much for joining us -- see you soon.

oh there's a threat. check out this, this is wednesday morning we're going to open down on the dow. but ten points nothing much and s&p 500 a fraction lower maybe higher for nasdaq that's where it will open six states to file a lawsuit against maker of the oxycontin they said purr due farmer pushed their drug on patients and doctors knowing it was dangerous and addictive napolitano coming up on that and he's by the way, next.

retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered.

leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> 6 states suing maker of oxycontin and opioid medications all rise judge napolitano is here this is not a solution to the opioid crisis this is frivolous litigation. >> really ?smghts because oxycontin is licensed by fda they can't make it any stronger or any weaker. they don't sell it to the public they offer it to the you love this phrase, learned intermediary, the physician -- now maybe physicians are overprescribing them maybe they should sue physician nothing to do with the manufacture what are they looking for, cash because they're medicare and medicaid bills are higher. because of people addicted to this stuff who have to be treated so they're looking for money. >> wait a second could you sue on the grounds that my constituents in the state of texas, i mean, texas is one of

the states that is suing. our constituents have been damaged because of your product. therefore, pay up. >> no. because the product is licensed to prove authorized by the federal government which supersedes the state. >> quick sue doctors as i said for overprescribing -- tough lawsuit too. >> are they basically trying to make opioid the new tobacco company. >> yes. they're looking for that kind of cash. did your life get better when a state of new jersey got a billion dollars from the tobacco company? companies did anybody, no. go down a raffle to pay for debts that were incurred before the litigation began. >> tell us how you really feel. i have to get this senate judiciary committee just released the transcript from a -- i think it's from a trump tower meeting or the interrogation of trump jr.. and i know you're not ready yesterday. but 2500 pages. >> right. >> what can we expect to learn from this? >> we can expect to learn what

the trump version of this meeting was. they did not interrogate russians. they interrogated donald jr., and jared. they did not interrogate paul manafort refuse to go because he was already indicted. >> fox news has a banner on their ad saying that trump jr. went into the meeting skeptical. does that mean anything to you? >> he went into the meeting with an e-mail saying i'm all for it but skeptical whether or not they can deliver it and crime mueller was looking for is an agreement. to receive help. not the actual receipt of help but just an agreement. >> that's what they're looking for. i don't know if they found it in the 2500 pages because if they did that would be the banner headline. >> so you have 2500 pages all for the -- by 11:30. [laughter] >> thanks, judge all right we've narrowed the loss we're expecting on when we open up a loss could be a fractional gain

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close back at 24,700. the early indicator is open and key question this morning is going to be interest rates. we're going to take a look at the tenure treasure yes yield to upset the market we're up, running and we are opening up 11 points that's right. we're basically up ever so slightly that's the dow i'm not going to give you .04% that's where we are. how about the s&p same story there. yes, a fraction higher that's all you've got. now the nasdaq, the technology companies a little bit better but still nothing sensational. a five point gain up .08%. now, the deal treasury yield. this is the ten year treasury and yield this morning is 3.07%. yesterday it hit 3.10 that really upset the market now we're up 3.07. how about the price of oil right around 71 dollars per barrel.

the big story in energy, though, is gasoline which we will get to very, very shortly. keeps going up -- look at macy's please. it reported just about an hour ago -- very strong results and a nice outlook as well. the stock is up 8% that's a big gain or for a reare tailer. elizabeth macdonald ashley webster both with with us this morning, of course, door what you is here, so too is david. all right so i'll start with interest rates, the yield on tenure pressurely 3.07 this morning. david dietz should we be concerned that the the level of treasurely yield above 3% doesn't mean like a big deal. in terms of history what we have to look at is the yield it was good news we saw solid consumer spending in april, new in better numbers coming from march and february. and stronger manufacturing index so i think that's the poses. i like what i saw. unbalanced it's okay. shaw what do you say? >> i agree 100% it is sign that

economy is growing a little bit of inflation is a good thing and it is all good. but problem for the market is in terms of the equity market is looking at the bond losses the tenure lost a third of a percentage point that's a big loss in bond world but 30 year loss almost shy of a half a percent. that's a big loss in bond world that's what markets are concerned about yesterday. >> nice to dismiss the interest rate. lizzy. a lot of corporate borrowing right so major corporations now taking a hard look at their interest rate for portfolio. >> but afl this cash from the tax cuts anyway? come on lizzy -- all right. next case, kim -- as in kim jong-un -- threatening to pull out of the north korean summit -- no reaction are on the market that i can see, though. >> no reason to sell in my view. first of all, the market was very measured in response to some of the prier good news second of all when you carefully part what they're saying you see north korean consumption with hard liners to turn us into

libya and do you and state government said heard no formal criticism of what's going on. >> what you got ash? >> shot that north korea is unpredictable. this is what they do best, the fact that they're talking and considering still a positive for the market. >> ash is right are. you know, the word has been out there that kim jong-un does not want to meet the same fate as gaddafi saddam hussein so that's the satisfactory line coming out right now about north korea. >> basically this morning no back the on stocks from higher interest rates no impact on stocks from the north korean news. that's where we are, and that's why we're pretty flat we're up just 3 points there you go. got to get to macy's -- look at that stock go this morning. i think still up about 8% sorry 6% right now. they came in with a strong forecast of future activity. so shaw -- they've got a turnaround process going there. looks like it is working. >> it is working and done a very good job. as far as the stock i think it

is had a tremendous run i don't know if i would be buying it in here if you own you love it it is a 5% dividend yield and it is really a great stock to own and might be a great stock to own if you want to have a dividends yielding stock and call against it. as far as this pop this morning and it was up 12% in premarket about a quarter with of the shares oustanding have been shorted both get the good news on earnings and they have to scramble immediately to cover it. >> so part of the reason stock is popped today so yes. itit has done well and not been downgraded by a couple of different banks. you wouldn't touch it but for 5% yield. you love it. it is fabulous. not bad all right. amazon here we go there's always a story about amazon here's the one today. they're going to give prime members extra discounts at whole foods -- okay why are they doing that, david? >> they increased cost to become a prime member and statistics are showing there's a lot of

pushback so i think they're now giving additional perks. and of course at the end of the day is there anything surprising about discount in the food aisle? >> to get rid are of whole paycheck but here's the thing this is take no prisoners grocery war -- whole foods is a small player and e versus wal-mart and kroger amazon is trying to boost that culture class still, though, at whole foods easy a going whole foods doesn't like the hard nose bottom line approach of amazon. >> coastal collection whole foods, been there. all right, target lowering the price of its next day delivery service. for household is essentialses that you know it's all about delivery. all about amazon about competing with amazon here. target has to do it all of the retailers have to do it and they have to because they have to compete amazon is set the standard they have to try to catch up. >> look how target is being smart about this. it is going into cities where amazon does not have same day delivery. and doing same day delivery places like memphis, tennessee.

so it is very smart how dark it is playing this game. i think target has been management right now. >> so when you talk about delivery it is amazon it's wal-mart and it is target. those are big three players and delivery is everything. am i right there? >> that raise a political question, though. this is great for consumers but what about all of the little guys that main street to mom and pops that are crowded out by those big does that become a question in the elections going forward? we have to watch that. not a bad story. okay check that big board still flat to ever so slightly higher the dow industrials are are up 6 points at 24,700. how about disney -- interesting story. they're considering let pack pixar cofounder or john laster to return remember he took a leave of absence following accusation of unwelcomed signs of affection he reached 103 a share. price of oil as we told you earlier roughly 71 dollars a barrel. here's the real story on energy gasoline, keeps going up. we now have the national average for regular at $2.89 per gallon.

now i'm going to show you a map we've got 12 states plus the district of columbia. where which are in basically in the $3 club. that's where the state average for regular are is $3 or more and california still has the most expensive gas in america outside hawaii that is. they're 80 cents above national average aren't you lucky. tesla reportedly on a poor production of its california factory for six days of the end of this month trying work on assembly line fixes for the model three sedan the stock is only down 3% from tesla. but only down actually down 6% i thinks that's from its high or 6% recently not sure of the time frame there but tesla nothing seems to bother the stock. >> another case of being whether elon musk is you know remains to be seen but this is another for the proof that they have not been able to meet their production now they're cutting

back in terms of producing in order to get the factories up to speed. they've done that already by i think four, five 250eu78s in the last quarter. they have not been able to do it and projecting 3500 cars week that's a 5,000 already. so that's a 40% jump and not going to get there. stock doesn't it take beating. >> it doesn't and interesting to shaw's point 3500 he says it is likely this week or next. how do you do that when you pause production at the end of the month that factory in-free mongt the problem is they can't get around bottlenecks that is the problem. he's already blamed relying too much on are robot they've gone to a 24-hour shift work reverse doing two one of two 12 hour shufts working seven days week they are full board try to get this right. >> on the -- on the 3500 cars he expects to get to, this is up from 2,000 last month. that is 75.increase a month. i don't see it happening. >> the is wearing about cash

flow all we care about is whether factories are running but bond investors they will care and as soon as that financing you know ultimately is needed let's see if they don't need anything. [laughter] worried about factories bottom line today is that stock is still at $280 a share. partners has dumped 80 million dollars worth of facebook stock. why do they do that? >> they're worried about -- social media and iphone addiction. so they working with with apple with children. and this is an issue in silicon valley no, it is. they're worried about children growing rates of depression so janet did so all of the facebook there to 74,000, and it's basically talking apple about getting parents more control with new software in children phones. >> i have to say i'm surprised to hear that hedge fund would dump stock in facebook because they're worried about -- addiction to your smart phone

among kids. they see a trend coming and might see potential -- >> you know, stock 186 and 9 shy of its all time high it's that time ladies and gentlemen. i have to say good-bye to shaw and david dietz gentleman thanks for joining us. check that big board again it is still flat to slightly higher. you've got a 21 point gain for the dow industrials 24,729. all right i've got breaking news -- the senate intelligence committee has recommended that the senate confirm gina haspel has next cics a director. the vote was 10-5 this was the committee, of course, haspel expected to clear the full senate at least four democrats have said they would vote for her. she will in almost certainly she will be confirmed. north korea threatened to cancel the trump summit question -- if kim jong-un agrees to dismantle nukes should trump give a little back? we'll deal with it. billionaire hedge fund david, the brand new owner of the

carolina panthers did you know he once called trump the father of all lies? we'll deal with that too -- more varney --

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every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com >> all right we're 13 minutes in, we're 22 points higher 24 rksz 700 that's where we are. how about this one lord and taylor teaming up with -- wal-mart kind of an odd couple wouldn't you say nicole? >> isn't it. you can get your cheer rows and dress all in one order. it's insane but this is the wave of the future and now -- parent company have access to million of wal-mart users wal-mart will get a boost in luxury so it is a good pairing they say and they'll have --

vince and tommy bahamas close to jewelry accessories debuting in next coming week. odd couple indeed all right nicole thank you very much indeed later on. this is a serious and somewhat troubling story. cheesecake factory employees they're in trouble. allegedly they harassed a customer all right tell me what happened. >> should be -- happened down in miami the mall at the cheesecake factory where 22-year-old joseph was having a meal with his girlfriend and his girlfriend's family when he was wearing the red hat making america great again donald trump hat, and a waitress noticed it started pointing fingers at him next thing you know a dozen employee who is circled table pointing at him and making threatening -- verbally -- abusing him. balling their fists like they're going to hit him. all sorts of horrible things eventually the family leaves. so all of the kitchen staff -- it either clap, cheer, or boo

him as he's -- he and a his family leave a horrible situation. there were police outside no one is sure who called police no charges or anything but they were called because of this disservice all because he was wearing the red donald trump hat. now cheesecake factory put a statement out saying, quote, no guest should ever feel unwelcome in one of our restaurants we are taking this matter very seriously. the individuals involved in this incident have been suspended pending results of our investigation. outrageous. >> you wongd where action he can take but very -- incredibly aggressive -- >> i'll say there with his girlfriend and give's family outrageous. table surrounded. wrong. kim jong-un threatening to cancel the north korea summit without president because of those military drills that america is conducting with south korea. fox and friends is with us right now. look there are some people saying maybe we should cancel those exercises as a sign of good will after north korea

released those three hostages back to secretary pompeo of good will quid pro quo what say you? >> you keep these military exercises it is strength, it's -- some strong talking to this president that got kim jong-un to point the the pressure on china, that got limb to the point where he's at the table right now confession and weakness upfront aren't going to sent signals he want to sending but he needs to believe we are with top dog and we take nothing off the table and only then do we give up or thinks ab path to giving up nuclear weapons i think we've gotten heards of ourselves and talks haven't happen yet and haven't verified anything yet and don't take your foot off the pedal yet keep it on the gas. >> do you think that kim jong-un is kind of in a box because secretary pompeo says hey, you denuclearize if he backs away from the summit he doesn't go

he's responsible for the misery of north korea. >> he's in a box. obviously, open to it. >> also facing possible war on the peninsula which he knows he can't win despite propaganda to his people but give confessions wealth to his people to your point. but only after the threat to the free world is gone -- had is why you would never this is a standard military exercise tone for years. don't back off it now. no reason to it at all. >> you're a military goition and we know it -- and i want your opinion on those i think it's a dozen google employees -- who have resigned from the company because they don't want to work on artificial intelligence used for a government drone project. a military drone project. they've resigned i think it is disgusting myself but i want your opinion. >> i agree. these -- problem is these employees probably see themselves as global citizens. more than they do american citizens. and here's the question, is american company or founded head quartered here in america it is

motto is don't be evil. you've heard that from google u.s. military evil is what our troops do evil? >> drone program evil? obviously, they do. and i say good riddance to them and i think we should companieses like google should realize that they benefit from this great country. that military defends for them. that gives them all of the freedom they need to be a powerful company. they should -- they should stand behind when they do work to improve our ability to defend our free world. america is a force for good absolutely. so if it is don't be evil why work with the force for good but down there in california we think they think differently sometimes sarcasm is a fall -- [laughter] after effective. very low, low width. all right so we've all done -- check the market scam this is what we call it. this is where it is all 30 of the dow stocks as you can see missing at 24 of them are up.

6 of them are down, and dow industrials are up 42 points. a new cell phone company is called wing. trying to take on the big guys -- they're offering 35 monthly bills we'll tell you all about it in just one moment. into retirement...

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oh, do we have a story for you a airline copilot stuck half way out of his cockpit window. emac will take it from there. >> came out of southwestern china this air that is right into lasa and they were in -- stnl the windshield cracks -- copilot stuck out of his seat into midair. he was held back by hi seat belt. the other copilot struggled to maintain control of the plane with 119 passengers while trying to pull his copilot back in. everything in that cook put started floating into the air, the gangs got knocked out he landed plane in sub zero temperature after two hours in tee bet we don't know how and loudedded and applauded as a hero in china. >> that's a good story. a movie -- well told -- well told take me through it without the videotape. that's very good, very good. he's a hero that guy. >> i don't know how he did it. all right i have an

entrepreneurial hero for you. yes you are young man. you stay there for a second. it is a startup cell service provider called wing wi-n-g trying to take on verizon, the cofounder therefore and ceo is david and he's with me now. now, you've got -- i'm going to try to figure out how this works you're going to give me a sim card is that correct? >> we ship you a sim card. you ship it to me and it's free. >>and i attach it to my phone. take out your current sim card and put in what we sent to you. then i make calls piggyback what is it sprint cell phone towers? >> we use springt cell towers across the country. are you paying springt something for this? we have agreement with them allow us to use towers across country so ine stef owning our infrastructure and spending a lot of money to build that infrastructure we use that and pay them for that. >> how much is your average plan? >> so our average plan is if 34 that's where we see on average

across all of our customers, and also the other thing we do is give money back for unused data so a plan worth 50 and you only use of what that and credit back you the difference of that plan. >> you started this. >> yes, i started it. >> in your tbraj. >> living room. in new york we don't have garages. [laughter] living room so out in october of last year. >> are you going to tell me how many sim cards you have out there and how many have you signed up? >> we've had more than 20,000 people wanting to sign up and we only launched in october. and that was just a very, very early launch right now we're scaling what we're doing and getting more out there across country. >> essentially you're competing on price with the big guy. competeing on price but competing on experience so we believe we can create a better user experience for end use we don't have to lose a saturday walking into a cell phone store

dealing with somebody over there for us we ship everything over mail if you're upgrading your phone we'll ship you that as well and sim card we'll ship that as well. user experience we can make life easier and reach a agent via text message but you can call the us and deal with text message and do switch over text message as welt. >> if i offered you $10 million cash for you to sell me the entire company, would you take it? >> no, i would not take it. 20, 100 -- yeah think about it. i think about it but i think that big opportunity here. i think you know the u.s. consumerments more options outside of four carriers had is now three carriers soon if merger goes through. >> am i allowed to ask is how old are you? >> 27. october of last year -- you're a rich young man and we appreciate that. wing w-i-n-g good stuff. billionaire hedge fund guy pleas high tax new jersey goes to florida, and decides to pay more than $2 billion for the carolina panthers.

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stuart: david tepper is a wall street hedge fund manager whose personal fortune is estimated at $10 billion. he is just shocked the sports world. he bought the carolina panthers. he paid $2.3 billion, all cash. that is huge. the previous record price for an nfl team was 1.4 billion paid for the buffalo bills. what is going on here? why that huge price? well a, tepper an afford it big time, and he is very smart guy who sees opportunities and takes them. this man fled high-taxed new jersey for low-taxed florida. he is a leader in the tax exodus field. more important the supreme court

ruling that expands sports betting. nevada has no longer a monopoly. if the state legislature approves, any state can run a sports books. that means sports books like the panthers, can take a small piece of the action that will probably happen. mark cuban says the ruling doubled the value of is had dallas mavericks basketball team. while the ruling came down monday, tipper signed the purchase of the panthers tuesday night. tepper's only gamble is the anthem protest. they continue to next season, tv ratings will keep sliding. tepper will not do as well as hopes. we don't know what influence he might have on other owners when they decide the panther's policy. i don't care for tepper's politics. he is trump hater. called trump the father of lies. he benefited from the exceptionally low tax rate hedge fund managers made for years. you have to respect the smarts of a man who made $10 billion

and grabbed the opportunity his money and the supreme court gave him. the second hour of "varney & company" is about to begin. ♪ stuart: 10:02 eastern time, happening this hour, republican leaders hosting the weekly news conference. we'll watch it of course and bring you any headlines therefrom. look at that, 34 points higher for the dow jones industrials. flat or higher is the verdict on the market today. how about the big tech names? facebook is the only loser. t. rowe price, jpmorgan, both cut their stakes in apple by the biggest cut in at least a decade. nonetheless, apple is at 187, ever so slightly higher this morning. stock of the day may be macy's. it has reached a one-year high. earlier this morning it reported strong sales and gave a nice

outlook a bullish outlook and the stock is up 6%. walmart, one of the biggest gainers in the dow, it's up about 1%. it is trying to go after wealthier customers. they're launching a new shop on the website featuring upscale fashion brands like lord & taylor. $85 a share for walmart. back to my editorial at the top of the hour, billionaire david tepper, he is set to buy the carolina panthers for $2.3 billion. tepper was once new jersey's richest man before he fled to florida where taxes are lower. jack hough is with us, "barron's" senior editor. jack, i think, no matter what, i don't care about tepper's politics. i think he is a very smart guy who seized an opportunity presented to him about it supreme court. what say you? >> i think gambling will certainly improve the value of his team. there is something else going on too. we have have already had a bidding wars in recent years for

sports rights. that is nothing compared to what we'll see going forward, cash-rich, amazon, facebook, netflix, which i wouldn't call cash-rich, they are spending tons of money they don't have, they're paying billions of dollars for content. they are getting into bidding on sports. i think value of some of these professional sports teams. stuart: mark cuban, owner of the dallas mavericks, he says the supreme court ruling all that goes with it, will double the value of his team. i don't know what the time frame is. liz: i don't know about that, sorry. i mean, all these projections at state level too, all the tax revenues coming in from now the supreme court decision on sports gambling. new jersey had a lottery, had casinos and still nearly bankrupt. what happens these guys pencil in how much money they expect to get from these new break-through things that are going on and then they spend the money. time and time again.

stuart: i still live there. i haven't pled yet. jack, you're really market guy, investment guy, money guy, i'm sorry i asked you about sports. you said fine. tell me about interest rates. is that the biggest fear on the market at moment, rising rates? >> yes and no. we have this ten year-year-old. it creeped above 3% right now. all right, it caught our attention. the average over the past half century is five or 6%. we're not close to average. these are not high enough rates to become worried about. the differential between us and the rest of the world is something to keep an eye on. it is causing strengthening of the dollar. this is called a high class problem. the reason our rates are rising ahead of the rest of the world, our economy is stronger, we're doing bert. it might cause a little bit of pressure for some of our exporters but in all a good problem to have. stuart: i remember back in the early 1980s, when the yield on 10-year treasuries were 18%, 19%, was the actual high. compare that to now at 3% you

have to say, what are you worried about. >> so many people invested in the market now have no idea what normal looks like or high. you and ash remember it well. stuart: it was 3% on the three meant bill. can you imagine that. ashley: still remember the mortgage at 18% rate. swear to god. '81, '82. stuart: i got 12% rate. i thought it was wonderful. >> did well. stuart: jack, stay with us. want to get to the primaries. candidates backed by president trump won their primaries. lou barletta in pennsylvania. last week jim renacci in ohio. bearing in mind these primary results and the fact that pro-trump candidates did well, does this tamp down on the idea that a blue wave is coming, democrat sweep in november? >> right. i think a blue wave was a little bit of an overstatement as we

writing on axios. we're calling eight blue ripple. look at data, what is expected, compare it to big sweeps, historically, 1994, other races where a president was unpopular, this will be of different. smart money i think is still thinking democrats have a really great chance to pick up the house but the map is much more difficult in the senate. i'm watching 13 states. 10 of those look bad for democrats. stuart: really? that is the news of this interview so far. you're suggesting that the maybe the republicans could increase their majority in the senate? significantly? >> not significantly. but remember there are 10 states that trump won where democratic senators are up for re-election. those are tough races for them. only three dates where republicans are running. we're about to put another poll at surveymonkey, get latest updates. last time we did this the democrats looked in trouble. what the smart money is saying democrats could certainly pick up seats in the house. they may lose in the senate, which has never happened as long

as i have been alive. stuart: you're a young man. don't forget that. the other side of the coin, nancy pelosi. >> right. stuart: i believe she is losing support from all sides like congressman al green. he slammed pelosi for not supporting his impeach president trump ideas. what is your feeling that her support is waning, dwindling, moving away. is that accurate? >> that is true. a dozen democrats who are opposed to nancy pelosi. some are explicitly running against her. this is the challenge in leadership. same thing happens on the republican side. don blankenship ran against mitch mcconnell and senate race. many are running against the swamp, against washington, against paul ryan and mitch mcconnell. this is a needle democrats have to thread. tom steyer, billionaire activist, flying around the country calling for trump impeachment. that is not what democrat leaders want. they don't think that is winning message in november.

stuart: you're about to release a poll, surveymonkey poll? >> we're about to put a new one into the field. we'll go back and look at 13 states most important. three where republicans have a challenge. 10 where democrats face uphill battle. stuart: that is really news. you could see some in the united states flipped to the -- senate seats flipped into republicans. i have not seen that before. >> when the poll is out, i will give you a call. i will be back here. stuart: you're on. thank you very much indeed young man. we appreciate it. we think this is the final update regarding meghan markle's father, we think. he will not walk her down the aisle this weekend at her wedding to prince harry reportedly because doctors told him he needs heart surgery. after he changed his mind and said he would attend after he staged photographs with the paparazzi. bookies taking bets on that now on who will step in. bets are on her mother at six to

four. ashley: they will bet on anything. stuart: they will. ashley: this is more proof. stuart: in can. in britain you can bet on the weather tomorrow morn. ashley:ing you can bet a snowflake falls on london weather center on christmas day. that is always a favorite bet. stuart: is it? ashley: yes. stuart: you don't miss it, do you. let's get serious. coming up north korea's leader kim jong-un threatening to cancel the summit with president trump over our drills, military drills with south korea. he released prisoners to the u.s., should we do a quid pro quo and cancel those exercises? we'll be answering that question. this op-ed caught our eye, it is titled, liberals you're not as smart as you think. we have the author. he will make his case. look at this, packed stadium, no, not packed for regular sports but esports, e gaming. big money is behind that

phenomenon. we're behind it. you're watching the second hour of "varney & company." ♪ your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach with a focus on customized insights. so you and your company are ready for today.

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stuart: flat to slightly higher. that is the verdict on the market thus far this wednesday morning. take a look at the price of oil, just below $71 a peril. more importantly, look at the price of gasoline keeps going up. average for regular is 2.89. there are 12 states plus the district of columbia where the average for regular to $3 in those states, 12 of them. now this. this may be new to our viewers, this is a huge business. we're talking e-gaming. all those faces on your screen right now, they are buying into this e gaming, e-sports world.

joining us gail dickey, gamer world news entertainment founder and ceo. gail, welcome to the program. >> nice to be here. stuart: i don't think many of our viewers, including myself know how big this is. why don't you tell us like the likes of robert craft and shaq, what is e-gaming? is that electronic games played competitively in big stadiums, is that it? >> i think you're starting to get it, yes. it is a, it's a, $1.6 billion in 2021. this year alone, 906 million in advertising and media rights and sponsorships and, i think the reason they're getting into it, because it is just so you're talking about 196 countries around the world. and attracting the millenials, that 18 to 35 slice of pie we're

all trying to get. we're trying to get those eyeballs. stuart: what i'm talking about you have a stadium, you put up big screens and you have youngsters competing on electronic games, fights it out in huge audience. we have pictures on the left side of the screen that is taking on place in america. i thought it was only in asia but it is big in perk too? >> america is second largest in the world. you have got china with 32 billion in global game revenues number one. we're right behind them at 28. you're looking at south korea, japan, germany, spain, italy, russia, i could go on and on. it is definitely the time when e-sports is taking center stage. i think it is arrived. this is the year of e-sports. stuart: i'm told there is a 13-year-old, i don't know his name, i think he is a european, he makes millions and millions

of dollars winning competitively these e sports matchups is that accurate? >> yes, that's true. you look at the difference between the e-sports professional players and streamers on twitch. streamers are making over a million dollars a month and some of these e-sports professionals are making as much as 3 1/2 million dollars. so, this is, this is big business. this is here to stay. and you know what? stuart, it is no different than back 40 years ago, when bill rasmussen started espn and we all wanted to watch traditional sports, basketball, baseball, learn about it. it is same thing. except millenials want to watch video games. they want to watch to get bert. in a stadium, it is no different than when you go to the stadium to watch a baseball game. stuart: can you imagine -- look, the supreme court just said, opened it up to sports books, betting on sports across the

country. do you think we'll see a time when you can bet on electronic sports contests? >> i think 100% absolute. i think anybody that owns any sports team is probably very happy right now. i think it's doubled their investment. you will have real-time betting. i think what is most important is problem take some time to do some real reporting checks on keeping the security intact and i understand that they are going to tax some of those betting revenues to insure the integrity of e-sports betting. there is a lot yet to do. i think it is great for the sport. i think it is great for the u.s. and all the global communities. stuart: look, the bottom line to me is, i just did not know how big this is. and i think you're in the right place at the right time to take advantage of a huge industry which my generation doesn't know that much about. we want to thank you very much. go ahead, you want to say

something? go. >> i just wanted to say as long as fox business news keeps reporting on the economic and fiscal impact of e-sports, and you let gamer world news report on all the mainstream professional competitive we're going to be fine. stuart: you're going to do very well, let me assure you of that. gail, a pleasure. come back and see us anytime. >> thanks so much. i will. thank you. stuart: i want to get to the volcano in hawaii. officials there upgraded the warning. they have gone from orange to red. what does that mean? ashley: that means an eruption is imminent if it is not already beginning. we're seeing a huge plume of ash, up to 12,000 feet high now. it is spreading ash 20 miles downwind from there. we're seeing fissures, breaks in the ground. we're seeing hot lava spill out with sulfer dioxide gases in significant amount can be fatal to people. authorities are trying to keep people as far as back as possible of the question how long does this go on and what's the endgame?

they have no idea. a significant eruption which would create quite a big earthquake and catapult huge boulders and everything else in every direction. they are on high alert. one of the other big concerns is that some of the major escape routes on this island are now starting to be affected by this. they're monitoring this very carefully. but clearly, it has been going on for 12 days long, it is not over by a long shot. stuart: the big fear is that it blows the stack, blows the top, like mount st. helens. good lord. heaven forbid. here is what is coming up for you. amazon giving prime members a extra discount at whole foods. they're a real force in the grocery industry. who can compete with that? jack hough is still with us. he says kroger will be a formidable opponent. we'll let him make his case this a moment. now two senates are outside -- i'm not -- two

astronauts are outside, we have cool video somewhere of the actual spacewalk. there you go. they're making repairs outside of capsule. they will be out there for about six hours. cool video. got to say it. we'll be back. ♪

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near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. i'm 85 years old in a job where. i have to wear a giant hot dog suit. what? where's that coming from? i don't know. i started my 401k early, i diversified... i'm not a big spender. sounds like you're doing a lot. but i still feel like i'm not gonna have enough for retirement. like there's something else i should be doing. with the right conversation, you might find you're doing okay. so, no hot dog suit? not unless you want to. no. schedule a complimentary goal planning session today with td ameritrade®. stuart: do you realize how big of a deal pet med sin is? ashley: yes. i do. stuart: you have got a dog. the animal health care company that is going to buy another company called abaxas, paying

two billion dollars for it. you don't know the names of these but it is big money. abaxis is the takeover target and it is up 11 bucks. 15%, big deal. amazon will offer discounts at whole foods for prime members. look at this headline from another supermarket. kroger, a supermarket stock on sale. jack hough is with us and he wrote that article. you think kroger is a good competitor for the wal-marts of this world and amazon whole foods of this world? >> i do. first of all stock is 12 times earnings. that is it a starting point for the discussion. remember the old joke about the hiker meet as rampaging bear in the woods. he doesn't have to be fast to out run the bear. he has to out run the other hikers. a lot of too additional -- traditional grocery stores are

closings down. kroger is gaining market share because it the strongest operator in traditional grocery. one thing to mention, everybody imagine as future world where all our groceries will be delivered to our door. we have that now. if you look at the consumer responses, surveys, the scores are, highest score in the business is for walmart's business. second highest for kroger. these are services you buy the groceries online and go to the store to pick them up. like peapod, they deliver to the door, they score lower. people have problems with prodoes. they don't like it dropped off at their door. they're having great growth with click and collect, kroger and walmart. stuart: you're buying kroger? >> i think it's a good deal. stuart: thank you, jack. north korean leader kim jong-un threatens to cancel the summit with president strum because of our military drills with south korea. remember kim gave up his prisoners. should we stop the drills as quid pro quo? we're asking that question.

♪ stuart: oh. oldie-but-goodie. early beatles. we tend to favor early beatles on 10:30 earp -- earn time. every single day. check the big board. 24,732. we have latest numbers how much we have in oil. liz: down 1.2 million barrels, second straight week down but less than expected. the oil is not really reacting as the dollar strengthens be keeping a lid on oil going up. stuart: the important thing oil $71 a barrel. liz: for our radio listeners. stuart: for the radio listeners. a lot of them. we love them when we do a

shoutout. for our radio listeners, $71 a barrel. ashley: doing the radio voice. thank you very much. stuart: back to our regular program. look at those. for benefit of radio listeners, big tech, face back is down, but -- facebook is down, but amazon, apple, alphabet and microsoft are all up. look at ge, despite various analysts saying buy that thing, it is still in the $14 per share range. it is up 11 cents today. liz: producers are warning you will do a radio show for the rest of the hour. "varney & company." radio voice. stuart: now to north korea. kim jong-un threatening to cancel next month's summit with president trump. he wants america to stop those military drills over there. joining us former trump campaign director david bossie. david, they gave us back three prisoners. should we cancel the exercises, a sign of goodwill?

should we? >> well, first of all, these are long-timed, planned drills, these in my opinion minor drills i didn't think would rise to the level of being an issue. and they were canceled by the way when the olympics came up. i think they're just getting back underway. so i think this is something that the president and the south koreans can discuss when they get together in a couple of weeks. i think, this is all a goodwill gesture, i think, what kim jong-un has done. i think it put him in the proper perspective but this president has, really wanted the american people and the world to understand he has priorities. he has been very clear from the beginning. if these meetings are going to be fruitful, he is going to show up and he will participate. if they are not, he's not. i think this is part of the feeling out period before the meeting. stuart: okay, but it is not a big deal, right? it is not real interruption in the summit process?

>> no. stuart: not at all? >> i don't believe one iota that this makes a difference in that planned summit and i think that will happen. i think the president's going there hopeful that this leader of north korea is going to come with the same spirit and open-mindedness that the president is and wants to have his country come away better off, a more secure nation and a healthier nation with an economic future and education future for its citizens, for health care for its citizens. those are things on the table for the north koreans. stuart: he is in a box. kim jong-un is in a box. you denuclearize, we'll make you rich. if he turns down that deal, he is condemning north korea to penary forever. >> as his family has for generations. we have to understand who we're dealing with. this president does.

he is very clear of the mission. denuclearization of the korean peninsula in its entirety. that is as a goal a very worthy thing for to us support, this president going forward. i hope that on june 12th we're going to have some results. stuart: okay. now president trump went and met with republican senators yesterday. i believe he pressed them, he said look, change the rules of the senate. either get rid of the filibuster or get rid of the 30 hours worth of debate on nominees but just change the rules so we can get moving here. now look, i fully support that, but he is meeting a the who of resistance from the senate. >> this is part of why president trump got elected to begin with. these senators, this process, is part of the what has broken washington and is not made it move to fix the problems of the american people and it is the reason that there is so much anxiety out there. that they don't see washington working as hard as they do to

pay the taxes so that washington can continue its irresponsible spending. i put forth this president reached a breaking point in my opinion. this meeting yesterday was a long-time coming. he has given them enough leeway to get some things accomplished and he is rightly frustrated and mitch mcconnell and understand leadership has to hear that, really understand that six months from now washington is going to get paid back in elections and either republicans are going to keep the house and add to the senate or we're not. because if we don't do things differently than the democrats did, if we don't do things that we promised, this president has made promises and kept them, but one of these is to break the gridlock of washington and that's where he is today. stuart: got it. david bossie, as always, thank you, sir, see you again soon. thanks very much. >> thank you. stuart: president trump wants to lower the price of prescription drugs. roll tape.

>> our plan takes steps to derail the gravy train for special interests by ending obamacare's twisted incentives that actually encourage higher drug prices. we will also demand fairness overseas. when foreign governments extort unreasonably low prices from u.s. drugmakers. stuart: i want to know if that plan goes into effect, will drug prices to me and my fellow americans go down? that is what i want to see. let's bring in matt aisles, american health insurance plans president. he is the president of that company and he is all about health care. matt, if the president's plan goes into effect, can you tell me definitely that the price of drugs will go down, not stablize, not stop going up so much, go down? >> stuart, there is a lot of great element to that plan that

the president announced along with secretary azar. it will have more competition. it will stop gaming by pharmaceutical companies. it will give more flexibility to plans to negotiate lower benefits. over time we will see prices go down. we have work to be done on regulatory side. we're riley positive about this plan. but actually go down. you're going to reinforce that please. we heard for so long, all these plans, oh, we'll get the costs down but it never happens. drug prices don't go down, at least not in my experience, they don't go down but you are telling us, yes, they will go down? >> the administration is really focused on the list price and high list prices getting those list prices down. think about it this way, stuart. if we're able to get competition for really expensive biotech products that does not exist today the president's plan, commissioner gottlieb at the food and drug administration, secretary azar saying we want to have these products out there

really competitive with the high-priced biotech drugs. if we could see competition, we're going to drive down prices in a real way. stuart: this is nothing to do with price controls? it is nothing to do with government saying you get that price down? this is a market solution, correct? >> it's a market solution and we support having the market work. we want health plans, prescription drug plans to have more tools at their disposal to negotiate better deals in the private market and this plan will offer that in medicare. it will provide additional flexibility so that the games manufacturers play for example, by not offering discounts because they're protected in certain classes of drugs, we'll get real competition. we'll see prices reduced on a net basis. stuart: what kind of time frame are we talking about here? are you looking down the road a couple years or maybe by the end of this year as some of these things are in place?

what is the time frame? >> important to think about these things in couple faces. in the short term efforts by the food and drug administration to get generic drugs to market more quickly, to get real rules how to get high-priced biotech copy drugs out on the market so we could have substitution. we could see prices reduced in the short run, so by the end of the year next year. some of the other proposals out there will take a little longer to implement. the administration put out a request for information. that will have to turn into regulation. that is a little longer time frame. that is year or two out. stuart: i wish we get the lawyers out of it. we would really get the price down. that is another story for another time. matt, thank you very much for being with us, sir. we really appreciate your expertise. we really do. >> thank you. stuart: lawyers for cbs and shari redstone, they go to court today, a long-running saga. what is it all about? liz: nasty corporate soap opera. cbs led by les moonves and the

board want to take away voting control of shari redstone and her father sumner. the redstones want to unite cbs with viacom. they split apart in 2005. that would consolidate their wealth and holdings in the company. the cbs side, les moonves side says no, the viacom would drag down the performance of cbs. don't do it. it is a big fight over control of the company. the bottom line, les moonves, this is such a poisoned atmosphere. les moonves could leave before his contract is up. if he does, watch this. $187 million is what he could walk out of the door with, if the redstones push him out and the redstones win. stuart: high-end soap opera. ashley: yes it is i'm not condemning it, that is what it is. liz: open opera. stuart: thank you very much, liz. coming up republican candidate taking on elizabeth warren in massachusetts. beth lynn strom. she calls herself warren's worst

nightmare. she tells us why. she is at show. this op-ed caught our eye, titled, liberals, you're not as smart as you think. we have the author on the show. he will make his case. ♪ there's nothing small about your business. with dell small business technology advisors you get the one-on-one partnership you need to grow your business. the dell vostro 15 laptop. contact a dell advisor today.

♪ ashley: in the last hour joe

asher, head of betting company william hill us told us that the relaxing of gambling laws may not benefit sports franchises here, but like the english premier league they will be big winners. take a listen. >> they don't get anything directly that is legislative mandate, some sort of cut of the action but what they do get is an amazing amount of engagement in their games. there is no more successful franchise in the world as the english pry mere league. half their teams have shirts sponsored by betting companies. bookmakers spend massive apartments of money in the game which turns to higher engagement in the games and higher ratings and higher rights fees to teams. ♪ pah! that will never work. no, no, no, nah. a bulb of light?!? aha ha ha! a flying machine? impossible!

a personal' computer?! ha! smart neighborhoods running on a microgrid. a stadium powered with solar. a hospital that doesn't lose power. amazing. i like it. never gonna happen. my secret visitors. hallucinations and delusions. the unknown parts of living with parkinson's.

what plots they unfold, but only in my mind. over 50% of people with parkinson's will experience hallucinations or delusions during the course of their disease. if your loved one is experiencing these symptoms, talk to your parkinson's specialist. there are treatment options that can help. my visitors should be the ones i want to see. stuart: all right. key to the stock market's performance is the progress of interest rates. the key interest rate to watch is the yield on the 10-year treasury. this morning it is at 3.08%. just a little below where it was yesterday when it hit 3.10 yesterday. price of gold stuck below $1300 an ounce. that is money, now politics. look at this quote from an op-ed in "the new york times." by the way the title of this piece is, liberals, you're not as smart as you think.

here's the quote. when they use their positions in american culture to lecture, judge, and disdain, they push more people into an opposing coalition that liberals are increasingly prone to think of as deplorable. joining us now, the author, gerard alexander, university of virginia professor. professor you put a finger on it with that deplorables comment. when hillary clinton said that during the election campaign, she really annoyed tens of millions of people. is that what you were referring to? >> absolutely but also something deeper which is that in that case i think a lot of americans reacted to it not just that she said it but that they suspected that is what a lot of liberals had been thinking already. stuart: they look down on us. that is -- look i grew up in england as a working class kid, i was looked down upon because of my social class. the elites looked down on me and i bitterly resented it. i feel exact the same way in

america today. the elites think they're so much smarter than me and they look down on me and i resent it. is that what you're getting at too? >> absolutely. it can be the subtlest of things. i remember a couple weeks ago when the focus on michael cohen, donald trump's lawyer was cresting, "politico," i think it was, news site, ran a story about the law school he went to, pointing out one of lowest ranked ones in america. i remember thinking to myself, you want to go after him, go after him. you want to question his ethics or performance. what is the point of going after a law school that hundreds of thousands of people have gone to, publicly dumping on it just to score a political point? it is symptomatic. people don't often realize they're sending signals, sometimes they're subtle, like with deplorables they're not subtle at all. those of us on receiving end can read them. stuart: what was reaction? you're a university professor. i associate american colleges with the left. what is reaction in your

university when the column was published? >> i haven't heard a full range or sample of ply colleagues. a few supportive ones, almost always happens when i write an op-ed like this. a students and faculty and administrators and email quietly come out of political closet with me. i don't doubt there is displeasure. in a way it is misplaced. if they look at the op-ed in sunday's "new york times" in the review section, its tone is in a sense with plea with my fellow americans who are liberal i think genuinely mean well but don't often realize how their tone communicates and some of the things that lie behind that tone. that notion of moral and intellectual superiority. i am not berating them, it's a plea to them to remove one more source of polarization and anger in american politics. stuart: you're really giving advice to liberals, aren't you? >> absolutely. thank you for saying that. i stress at the end, this is

advice they can follow without sacrificing their principles. stuart: what about the, real contempt with is expressed so widely in america for our president? how do you feel about that? >> that i think we can bracket separately. my op-ed is devoted to disdane and judgments levied on tens of millions of americans not just one person. there is worth pointing out, not all, a lot of people who consider the president contemptible, had considered most conservatives and organized conservative movement contemptible up until the day he won the nomination. in other words, not all people disliked him say disliked ted cruz but people who built modern today's careers hating president trump had already expressed a lot of similar contempt, not exactly the same but a lot of similar contempt for the conservative movement as a whole and conservative americans as a whole. stuart: written kite a column,

had quite an impact. where do you go from here? >> i'm asking whether parts of that op ed could be developed flesh them out, make the argument a little clearer and hopefully make it a little bit more persuasive to the audience i intend for it. stuart: thank you. professor gerard alexander, appreciate you being with us. thank you very much indeed. you will be back if you're not careful. venezuela just days away from an election and another company leaving that nation for good. we'll tell you all about it. on going saga right there. check out the big board. we're up 42 points, 24,748. more "varney" after this. ♪ man: i got scar tissue there. same thing with any dent or dings on this truck. they all got a story about what happened to 'em.

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stuart: venezuela. kellogg's moving out ending operations in venezuela because of the economic crisis. ashley: latest multinational company to get out. the economy, the country itself, just collapsing. kellogg is out. venezuela has now seized the plant that belonged to kellogg's and given it back to the workers and will continue production.

by the way did you know prices are doubling, talk about inflation, every 17 1/2 days in venezuela? the annual inflation rate stands at 16,428%. basically the bolivar, which is the currency, is useless. most people try to get their hands on u.s. dollars. stuart: however there is an election on sunday. liz: falcone, he was the farmer ally of hugo chavez. he is leading maduro in the polls right now. of course there is fears that poll will be rigged. it is presidential term of six years. nicolas maduro is up for a second term. his plan, falcone's plan is to put venezuela on the u.s. dollar and not the bolivar anymore. he would basically reopen ties with the trump administration. the fear here is maduro wins, trump administration acts, completely shuts down with the venezuela economy with an embargo and sanctions.

stuart: how many people have left venezuela? liz: three million. that country's gdp has been cut in half in the last five years. stuart: good lord. when you say economic crisis. that is the understatement of the decade. liz: shoutout to bernie sanders and socialists of the world, when you have socialism, the military ends up running things. so the military runs oil, commodities, probably now kellogg's. ashley: guess. now serial. stuart: serial. all right. trump derangement syndrome, on full display yesterday at the democrats annual ideas conference. they will need more to take on the president. that's my opinion. my take on trump derangement syndrome coming up at to have the hour. ♪ i have to tell you something incredible. capital one has partnered with hotels.com to give venture cardholders 10 miles on every dollar they spend at thousands of hotels.

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stuart: after their shocking defeat you would think democrats would be brimming with new ideas. they are not. they are stuck in trump derangement syndrome. they can't stand the president. i think they will need more than that to beat him in 2020. the center for american progress, a leftist think tank, this week held their annual ideas conference and identified presidential hopefuls to speak. bernie sanders railed against the insatiable greed of the rich. that is hardly new. by the way the democrats are now the party of the rich. i wonder how they will feel about the insatiable greed label. cory booker of new jersey played the man of the people role, when he shops at his local bodega he sees people who use food stamps. he once guaranteed jobs for all. new york democrat kirsten jell-o brand --gillibrand

tried saying if it was lehman sisters we might not have had the financial collapse. she wants national paid leave. all the ideas that came out of the conference have one thing in common. they are all about buying votes with taxpayer money. universal income, guaranteed jobs, free college, universal healthcare, tax the rich to pay for it all. that is economic nonsense. it is not new. on the other side is willie brown, former mayor of san francisco, a colorful character who has been a fixture in california politics for decades who says democrats have to stand for more than just hating trump. they need a 12 step process to get off trump derangement syndrome. donald trump's approval rating

is silly rising and trump supporting candidates did well in yesterday's primaries. we are in a slow-moving political shift. trump is gradually taking over the republican party and his policies are showing success. the democrats are making a lot of noise but can't move on from their obsession with trump. there party is run by the old guard, few if any new ideas. at this moment it is trump who will restore american prosperity, not the democrats. the third hour of "varney and company" is about to begin. stuart: i want you to look at the headline from fox . this article written by liz peek, trump is right, mcconnell should shut down democratic obstruction in the senate. wouldn't you know it, liz p is with us this morning. you think republican leader mitch mcconnell should use the nuclear option, get rid of the filibuster. >> i absolutely do at least in

a limited way. republicans are so frustrated that they have the house and the senate and the oval office and what do we have to show for it? a backlog of agenda items that are not getting done, nothing on infrastructure, nothing on education. we need progress and here is what people don't know. in the house they have passed hundreds of bills, bipartisan, many of them, uncontroversial easy votes to fix faa, fix legislation that has been passed, nothing happening, all backed up in the senate because chuck schumer will not allow progress because he is demanding cloture votes meaning 30 hours of debate on every single trump nomination. a data point on this, chuck schumer has forced 89 cloture votes so far under the trump administration. obama faced 11, the bushes not one. this is a highly irregular and incredibly in my view unpatriotic measure to basically slow the functioning of government and mcconnell needs to address it now.

stuart: 30 hours of debate for each nominee. >> many of them like james powell, head of the fed, past and 84-13, a no-brainer, not like these are controversial people. he is just slow walking the process. stuart: interfere with donald trump's vision and agenda and the republican vision and agenda for what is going on in america. could mitch mcconnell just say those rules are changed, you know longer have these votes are nominees, you no longer need 30 hours of debate, could he just say that? >> he is reluctant to do it and overturn a century of procedure in the senate but time to do it and it has a precedent. harry reid did it in 2013 when he changed the way we vote for lower-level judges. this is got to happen or else we are stymied. it is not just about the republican agenda. it is about the nation moving

forward. americans know this, they know and they once infrastructure spending, they want so much to happen, nothing is getting done. stuart: the focus is on mcconnell, do it, do you think he will? >> a move in that direction, the rules committee passed something, he is under pressure to do it. stuart: great article this morning. busy day at the white house. later this hour donald trump welcomes the pres. of his pakistan with a working lunch. this afternoon he meets with california officials, those officials who are opposed to the sanctuary law. the lady on the screen, supervisor kristin gasper will be at the meeting. she will be on this show tomorrow to tell us what happens. we have a modest gain for the dow industrials, 8 points up and the dow 30 evenly split between winners and losers. as for the s&p, a broader based barometer of the market, up a

tiny fraction, same story with the nasdaq. that is where technology companies are, 22 points, a third of 1%. one critical point for the market is interest rates. when you are looking at interest rates you are looking at the yield on the treasury, the benchmark, 3.09%, getting up there again today. stock of the day, macy's, they released their financial report first thing this morning, they have a better outlook, better profits, better sales and stock is up 9%. now this. new jersey income tax revenue following way short last month, disappointing numbers make it likely governor phil murphy will continue his push for tax increases. joining us, republican from new jersey, i think the new tax law will have a very negative impact on republicans standing for reelection on the house from new jersey because anybody

who makes money in new jersey is really going to pay a heavy price. what say you? >> i fear governor murphy will try to increase the state income tax. that is the way he wants to move forward with his new budget that increases state spending by almost 8% and i don't think we can afford that in new jersey and it is so easy for people in new jersey in upper income levels to move across the river to pennsylvania or perhaps north carolina or florida. i certainly hope he is not successful. i hope governor murphy is not successful in raising the state income tax. stuart: you are raising the question of 1% exodus out of new york, new jersey and california. we are seeing evidence of that already. there is not much you can do to stop it. >> one way to stop it is not to increase taxes further in new jersey and governor of you

suggesting increasing the state income tax on upper-income new jerseyans and the state sales tax. that would affect all new jerseyans. i hope the state legislature will reject these proposals. state legislature is controlled overwhelmingly by the democratic party and it is not clear to me that even the democrats will go along with governor murphy on these matters. stuart: steve sweeney, new jersey state senate leader was on the show very recently saying you can't raise taxes in new jersey in this environment. it would be a disaster. he is on your side here. >> steve sweeney is the state senate president, a democrat, a strong democrat but he has indicated he is not going to go along with what governor murphy has suggested. stuart: i live in new jersey and wish you well. your attempt to stop further tax increases in the garden state.

appreciate you being with us. take a look at energy prices. oil, we are now at $71 a barrel. earlier we received word we have drawn down, used 1.4 million barrels of oil. price went up. it went back to $71 a barrel. the real story is gasoline. the national average is $2.89, up to sense from yesterday. look at the $3 club, 12 states and dc may have average pricing those dates above $3 a gallon. the other map shows where prices are lowest, all in the southeast, mississippi had the lowest average gas price at $2.59 a gallon. live pictures from raleigh, north carolina, thousands of teachers protesting at the state capital, better pay, 2 dozen school districts had to cancel class today because of those protests.

we tried to talk about this yesterday but got interrupted by the president. california is going to require most new homes to have solar panels starting in 2020. bob raymer with the california building industry association is back today and make his case on why his organization supports that mandate. oakland mayor libby schaff is being sued for the warning she gave illegals about an impending ice raid. beth lindstrom, republican candidate taking on elizabeth warren of the senate seat in massachusetts, her nickname is warren's first nightmare. i want to know her line of attack. i will ask her next. they appear out of nowhere.

my secret visitors. hallucinations and delusions. the unknown parts of living with parkinson's. what plots they unfold, but only in my mind. over 50% of people with parkinson's will experience hallucinations or delusions during the course of their disease. if your loved one is experiencing these symptoms, talk to your parkinson's specialist.

there are treatment options that can help. my visitors should be the ones i want to see.

stuart: retirees who left cold weather, high tax states like new york and new jersey are not distilling in florida. core to the wall street journal they are leaving the sunshine state and heading to mountainous communities of north carolina, georgia and tennessee. they have a name for them, halfbacks. these retirees are drawn to the region's moderate weather, lack of traffic, low-cost of living and low taxes. sen. elizabeth warren issuing a warning about our democracy. listen to what she said at the ideas conference for liberal activists. >> let's face it, great ideas are not enough. the said truth is most of these ideas won't go anywhere until we deal with the defining crisis of this moment in our

history. democracy is crumbling around us. stuart: joining us is beth lindstrom, republican candidate for the senate seat in massachusetts. you say you are elizabeth warren's worst nightmare. i know that you told us that personally. what is your line of attack against elizabeth warren in this campaign? >> as you see she continues to use the negative rhetoric, and in massachusetts they are tired of that, i'm giving the choice in november. we are a historic moment, and putting people back to work, saving companies and emerging is a global leader. stuart: going after sen. warren more on the basis of her persona and frequent appearances as opposed to her socialism and i think she is a socialist so you're attacking the persona as opposed to the

policy. >> there is both. and democracy is strong, and giving up hope on the people they are there to serve and when she attacks the values our country was built upon there is both, her style, her tone and her temperament, she said she wanted to teach read books and throw rocks and i'm not a rock. is a contrast between the 2 of us. stuart: native american heritage, she is not. the pres. has a nickname before her. are you bringing that up. >> many people will bring that up but it is up to her. honestly with people of massachusetts to tell the truth about that. stuart: future tax cuts in america. >> this massive tax cut, great things in massachusetts, 80% of people in massachusetts will

put more money in their pockets this year. see how that works and where the economy goes and what happens in the future. stuart: would you like to see mitch mcconnell change the rules in the senate to get nominees through, change the rules so they can get a fair hearing for nomination process? >> when you look at what elizabeth warren has just done in the past and voted against almost every nominee there might be some room to think about that. stuart: how are you doing in the polls? >> we are in a primary here but doing great, came out of convention and getting more people jumping on our campaign, and joining the team. and i'm the only person who can beat elizabeth warren and doing great. stuart: you would be her worst nightmare. beth lindstrom, thanks for joining us.

stuart: i went to alert trump backed nominees when senate primaries in pennsylvania. lou barletta will run against bob casey in pennsylvania. four gop challenges advancing to the general in nebraska. another production halts for tesla reporting. production of its model 3 for six days at the end of this month. trying to fix that assembly-line, stock is down a little bit still in a $280 price range. amazon will give prime members extra discounts, amazon recovering a little, $1586 a share. the volcano in hawaii, officials upgrade the morning to the highest level possible, they issued a red alert. that means an eruption is imminent and significant levels of ash are likely to shoot into

the atmosphere. eruptions have destroyed 2 dozen homes. nasa astronauts on a 61/2 hour spacewalk to make repairs on the international space station, the first of two planned spacewalks, no emergencies, just maintenance, upgrading wi-fi and high-definition cameras, 250 miles above us, the 50spacewalk in space station history. more varney after this. man: i got scar tissue there.

same thing with any dent or dings on this truck. they all got a story about what happened to 'em. man 2: it was raining, there was only one way out. i could feel the barb wire was just digging into the paint. man: two bulls were fighting, (thud) bam hit the truck. try explaining that to your insurance company. woman: another ding, another scratch. it'll just be another chapter in the story. every scar tells a story, and you can tell a lot more stories

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stuart: new leadership at 21st-century fox, the parent company of this network. locklin murdoch will be chairman and ceo. rupert murdoch will be cochair. john allen will be the new chief operating officer. now this was a high school prank in wisconsin got a lot of attention. some kids made it look like a car crashed into their school. it was illusion. that use black tarp, bricks, a junk car and tape to create this parenchyma the local police department was very impressed. they congratulated the students and posted pictures on their facebook page. ford getting rid of his most of its cars focusing on suvs and trucks.

the mustang, the car, will keep rolling. at the racetrack in monticello, a look at the brand-new ford mustang. >> in may 1964, the first years it came out, the most powerful, ever. 460 hp and all the technology with emergency brakes. we are at the track trying the new model with performance pack with the tires, dynamics designed for taking it and having fun with it. it was a toy in ford's line a bit more important than ever, in a couple years the utilities and trucks, and jason mason, the marketing manager, it is a

good seller. and survived as you move toward utilities and trucks. >> people are passionate about it, 54 years in the market place, can't find many nameplates like that. 146 in the world sell it. the dynamic drive, the 8 experience. >> in a couple years when the ford show room is full of crossovers and trucks, the only car, what does it mean for ford? >> customer tastes will change. the segments move and go to utility a little more. it is a fixture, the heart and soul of ford motor company and never letting it go. >> is there more you can do? people doing a 4-door sedan as the marketing manager? >> i love selling the two door iconic shape today. >> a mustang inspired battery-powered utility vehicle, don't know much beyond that because it won't sound

like one of these. stuart: now this. the mayor of oakland, libby schaff, being sued for the warning about an impending ice raid. what will judge andrew napolitano say about that? we will find out in a moment. ♪ i can do more to lower my a1c. and i can do it with what's already within me. because my body can still make its own insulin. and once-weekly trulicity activates my body to release it. trulicity is not insulin. it comes in a once-weekly, truly easy-to-use pen. it works 24/7. trulicity is an injection to improve blood sugar in adults

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stuart: it is 11:30 new york. in 15 minutes the pres. welcomes the pres. of his biggest and, they will have a working lunch. the pres. later meets with california officials who oppose the state's sanctuary laws. kristen gasper will be at the meeting and she will be on this show tomorrow to tell us what happens. check the big board, down 19 points on the dow, and even split between winners and losers on the dow 30, pretty much flat. facebook, mark zuckerberg will meet with france's presidency manual macron in paris and leaders of the european

parliament. this is all about privacy issues. facebook down a dollar on that. we have an update on a story last month. a public school in pennsylvania had been displaying anti-nra and anti-gop signs in the windows of the school. our next guest exposed what was happening. a former trump surrogate joins us now. you came on the show and told us about these signs. yesterday that school was used as a polling station. were the signs taken down? >> of course not. they covered them up with thin paper so you could still see through the mend tape so they were flapping in the wind so you can read the messages. stuart: and you can see what was going on. how old are the kids? >> is young as 5 years old and the messages are no more bs which is a swearword, guns suck

and the word dope. forget the political message, you are using foul language. stuart: didn't you and the gop in pennsylvania demand the signs were taken down and say you can't do that? >> at first we sent a right to know request and they said we are in the right, we are allowed to do this so i got my friends involved who said hold on, and the school ethics rules to do this. and you are in violation of the rules your handbook states, something has to change here. stuart: are you a mom of one of the kids? >> this is the district where we walk past every day. stuart: what is the reaction of the parents? >> they are not happy with me. they think i put them at risk because of people calling the

school. i love my friends children and all children. i want everyone to be safe but the real message is if a school wanted to indoctrinated use kids as young as 5-year-olds as shield and expose them to adult, controversial issues like the republican party and the nra you have to be prepared for adult consequences and it is a mess. stuart: i don't think children should be used as political props and they are. in this case that is what they are doing but the school response to the letter from pennsylvania gop was to cover up the signs. >> pennsylvania had an election yesterday. the school says it is free-speech. i don't think you have free-speech with 5-year-olds on a political issue. >> another level here, pennsylvania, and 10% below the

national average. this is the philadelphia school district, why do we touch something like math and science and reading and arts and history. instead we are indoctrinating. >> you receive some flat, some hostility. to your face. >> i have. you put our children at risk and they are in safe because of you. let's have some accountability for the school and who took this action in the first place and you are addressing hot button issues like the nra. stuart: you are a mother. i hope you update us because i want to know more about it. i will see you again. another story with legal implications. oakland's mayor, libby schaff, is being sued by the federation for american immigration reform because she warned illegals about an impending ice raid.

what is the status of that lawsuit? judge napolitano: the plaintiffs made the mistake of saying the only reason they are suing her is to get cabbies that is copies of emails and other documents she generated prior to the morning she issued. she can't be held liable for the morning. instead of using freedom of information after getting copies of the documents, most judges would throw out litigation that it is used for the purpose of immersing the defendant. stuart: you and i know that the law and lawyers can be used as a blunt instrument to bludgeon your opponent and give them hell. judge napolitano: that is what they want to do. i don't know where this will go. it was just filed. i doubt mayor sharp is going to be with the pres.'s people from california later today. she is in their political crosshairs. i don't know. i don't think, i don't know if

they are going to succeed in extracting emails from her. stuart: i don't think the penalty for what she did should be legal or financial. it is political. judge napolitano: there will be no penalty. there will be a reward of reelection. what she did was immensely popular in that town. oakland, california. stuart: crime-ridden oakland, california. they have a head tax like they do in seattle? stuart: not yet. i want you to sort something out for us. the fbi and department of justice reportedly are investigating the firm at the center of the facebook data sandal, cambridge analytica. so what? judge napolitano: to see if they knowingly violated anybody's privacy rights. there are certain anti-hacking statutes, federal criminal and penalties.

i don't think this firm exists anymore. if you are going to investigate the firm, the most you get is a fine of $500,000. if you investigate human beings that work for the business and 5 years in federal prison perhaps, per computer hack if the fbi can demonstrate this and if they get those people, i forget where they are. if they can get them to come across the pond, they can prosecute them. stuart: they might come, who knows? judge napolitano: one of bob mueller's russian defendants shocked everybody and showed up in court. stuart: all of this minutia, legalisms, confrontation of lawyers, who met who and who did what and said what, meaningless, not just boring, it is meaningless. judge napolitano: it is

meaningful if a conviction comes out of it or if truth comes out of it and sometimes in the midst of these in the we've litigation, helpful truth can come out, so and so did this or that. stuart: we are set up with bob mueller and this never-ending investigation. judge napolitano: that is the view. stuart: that is the view of the country because when you lose political support it becomes a political prosecution and that is what it is. judge napolitano: fortunately the prosecutors don't rely on public sentiment for support. stuart: this is true. we will call it quits. a couple california stories for you. always go back to that as well. san francisco considering a bill that would ban plastic straws and restaurants, bars and coffee shops. you have to have reusable alternatives. if the law is passed it takes effect july 2019 next year. university of california

pulling dream catchers from store shelves, they are making the change after receiving complaints of cultural appropriation against native americans. get those out of here. more in california, this -- the state is going to require most new homes to have solar panels starting in 2020. we started to talk to bob raymer of the california building association but we cut off by the president. watch this for a second. i will decide what energy i went in my house. i realize it is good for you guys, you contractors so make your case. why is this a good thing? i am sorry, terribly sorry. i have to interrupt you. the pres. has just taken the podium. i was very sorry. i hate to introduce a guest, get halfway to the first question, he responds and you

cut him off. bob raymer is back. are you there? next. we will run a commercial and then you will meet him again. any moment we will see donald trump welcome the president of his pakistan and see the arrival and we will be back with bob raymer and that is a promise. well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions.

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nicole: i'm nicole police, kellogg's conference it has moved out of venezuela due to deteriorating conditions. stock is down to the downside but also confirming its manufacturing plants have been seized by the government. the latest to jump ship because of conditions, here's what the company said. the current economic deterioration in the country prompted the company to discontinue operations. other companies have pulled out of venezuela because of strict price control, currency control, lack of parts or raw materials. general mills or other us companies that pulled out and

seen in some cases their plants taken over by the government as well.

>> moments from now you will see the arrival of the president of his pakistan at the white house, he is meeting donald trump. bob braemar is back. can i see him? you support this mandate in california that almost all new

homes in 2070 - 2020 have have solar panels, you like it. i oppose it on principle but you are laughing. i will let you get your answer in. make your case. why is this a good thing? >> this was a political negotiation. the fact is the california building industry association would have preferred the energy commission wait to put this into effect for another 3 to 4 years. we have a housing crisis in california. the cc is working on this, the ability to get further delay was not in the cards. two years ago, at the energy commission, on the compliance cost to expand and that is what we did. >> every government agency telling me or any homeowner

what form of energy they must have on their new home? >> in the state of california our leadership, our governor and the legislature has taken on climate change mitigation as the primary role. unfortunately a lot of other priorities get pushed behind climate change mitigation. like i said the energy commission resources board, public utility commission has been working on this for years. i agree with you it would be nice to have a lot more flexibility out there, but the regulatory structure in california was heading down the road. what we did is tried our best to reduce the compliance costs. stuart: i understand, sorry to cut you off. i do understand you got no choice. you are in california, you are building kind of guy, you got to submit to the rules but you

have to admit the cost of this adds 8 to $12,000 to the cost of a new home if not more. the homeowner is on the hook for annual inspections and cleaning, $300-$500 per year and repairs average $630. this is a big increase in costs at a time when californians are up against the wall. >> probably the biggest change i have seen in 30 years with the bia and if you go back 20 years ago the cost estimates were 30 35 to 35,000. we worked with the cdc, if you go with the solar purchase cost is around 10,000. of ego with the solar we still will drop to 1000. one of the things we negotiated with the energy commission was to use the solar lease option as opposed to the solar

purchase option. we get design flex ability but i agree with you, this is a major and costly change to take effect when california is suffering the worst of what ability crisis in our history. stuart: you probably cannot agree with me on this, politically you are not allowed to i am sure but supposing the governor of california was a republican in the legislature dominated by republicans and the senators from california were republicans. republicans made a good showing in house elections in november. he would have a chance to sweep away all this and allow a little freedom. i'm sure you are not allowed to agree with me, are you? >> the state of california has a democrat governor, a democrat senate and assembly. the bottom line is climate change mitigation is the number one priority in our state leadership.

we have to work under the set of circumstances we are given in the energy commission worked with us on this for two years and i am not happy with the result but it was a good political negotiation. stuart: i'm interrupting again to tell you that you are a fine diplomat who navigated this and thank you for coming back after i cut you off for the president yesterday. you can see us again. thank you. i feel guilty about that. on your screens, the benchmark interest rate, yield on the 10 year treasury moving up again, 306 or 307. now we are 309. keeping a lid on the stock market, the price of gold still below $1300, how about bit

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stuart: we were going to bring it to you live but it happened during the commercial break. that is the president of his pakistan arriving at the white house to be greeted at the front door by donald trump himself. they are holding talks. there is the handshake what happened during the commercial break. moving on, we talk a lot about the shortage of skilled workers which our next guest says she can't find any teenagers to fill jobs at her fast food franchises. cameron kennedy runs several outlets in the midwest. welcome to the program. i am intrigued. when i first came to america 40 years ago teenagers worked during the summer in fast food

restaurants, they worked after school and now they don't. why not? >> thank you for having me. we know a couple things, 20 years ago according to the dependent of labor statistics, we know the participation rate for 16 to 19-year-olds was 56%. two out of every three teenagers got a job. we know now in 2018 that number has dropped to 34%. one out of three teenagers. stuart: why has that happened? >> a couple things. there is a growing look at the number of young people that are becoming drivers. fewer people are getting their driver's license, having need to get their own transportation and you need transportation to get back and forth to work and less teenagers are applying for driver's licenses.

we know that. and nontraditional working hours, and bring them to work, they might be working until 6:00 in the evening if they are employed in the retail sector. a lot of things. stuart: doesn't it have to do with affluence? a lot of middle american parents, and without them working. >> what we have to pass that on to the next generation. and a pr problem in fast food, that is on us. we need to do a better job talking about why taking a job in a restaurant is a good idea. stuart: know. you have got to put out the

word that work is good, earning money is good. being self-sufficient is really cool. i'm terribly sorry. i'm out of time but thanks for coming back. we were supposed to have you on the show yesterday, we cut you off. welcome back, see you soon, that is a promise. there will be more varney after this. ♪

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stuart: breaking now. michigan state university will pay $500 million as a settlement to survivors of larry nasser's sexual abuse. he pleaded guilty to assaulting numerous victims while treating them. several gold medal winning gymnasts. gabby douglas, simone biles, $500 million. tonight on "the evening edit" with liz macdonald, congressman kevin brady. i want to know about a second leg of tags cuts.

liz: i do too. focus on retirement savings, to keep people safe in retirement. stuart: your show "the evening edit." kevin brady will be there. neil cavuto. it is yours. neil: stuart, thank you very, very much. we're keeping an eye on the meeting the president is having with the meeting with uzbekistan. the uzbekistan any president is coming under fire taking credentials from journalist and cutting down on press freedoms. what he joked in the past, talking about taking credentials away from journalists. two the are kindred spirits about overzealous. that he is concerned about crackdowns in uzbekistan are a very big concern. they have one of these things called pool sprays from a meeting. once that ensueses