>> great to see everybody james freeman mike murphy dagen mcdowell. >> deserved to die hopefully he got something for the trade. >> we'll see about that a and following these stories throughout the day on fox business. have a great day everybody. "varney & company" begins right now. here's stuart. >> good morning maria, good morning everyone hardline trump don't mess with this president he's no no mood and leaves for the g7 meeting in canada tomorrow and washington post reports they don't want to go. he doesn't want to be lengted bit canadian and europeans at this point he is still going, but if he doesn't like what comes at him he doesn't have to sign he's not backing down hardline. same with north korea. 's japan's leader has to live next door to their arch enemy north korea. they don't want any backing down and according to rudy giuliani that hardline that made kim jong-un beg for a return are of the summit after the president

canceled it. hardline trump will be on full display. but there's no negative reaction on the stock market. up 300 points yesterday, and we are going up again today at the opening bell about 60 odd points. take a look at big tech amazing. it's on yet another tear i'm looking off here tesla is down a fraction this morning but netflix microsoft, a physical all of them going up some more. they all hit new highs yesterday. american technology dominates the world and american technology dominates this stock market. how about that? "varney & company" sb to begin. >> i want to thank president donald trump. [applause] thank you. thank you.

for giving me another chance to -- >> how about that alice marie johnson thanking president trump for commuting her sentence she was a first time nondrug offender serving life sentence and remember kim kardashian west pleaded her case during a meeting with the president, however, senator corybook democrat of new jersey doesn't like all of these partens and commutations. roll tape. >> clear and concern about the process. there's thousands and thousands of people that deserve commutations and deserve pardons and it shouldn't take kim kardashian going to the white house to get something like that done. >> i can hear him saying already, come on does he have a point or no? >> no. he's really grand standing off of release of this grandmother who was serving life without parole no hope for redemption corybooker in the past has said stop with the -- long drug offense sentencing. and now he's trying to on

something trump has done they fr this. >> and so-called water again on something like this is really -- a nonviolent first time offense life sentence without the chance of parole. >> okay. should have been in jail for a long time since '95 senator minority leader chuck schumer hepghtses president obama's health for senate democrats in the midterm elections brad is with us on that former deputy assistant to bush 43 why do you think senator shiewmer is doing this outreach to barack obama. >> i can't fathom why you would put the arsonist as the fire marshal, the democrats in -- in the fall. to remind us of apology of foreign policy to reminding us of high taxation and suffer through the longest recovery. well this is the type of -- person you want to be your

bearer good luck. >> hold on a second brad. maybe senator schumer thinks that the democrats in november might need some help shoring up the black vote. who better to bring in -- than president obama to encourage a black folk to get out to vote in the as they frequently do. >> the record speaks for itself to go out there to tell african-american what they know that is that the highest employment rate in the history of our country and for hispanics as well. donald trump delivered that, barack obama didn't the democrats have taken minorities for granted it's about time republicans stepped up to the plate and not only told them what they've done. but also encouraged them to come into the tent. they should be republicans. and we shouldn't take anybody for granted if >> i want to bring up the subject of west virginia democrat joe manchin he regrets backing hillary and he might support mr. trump in 2020.

my question to you brad is, why doesn't he just switch parties? >> well, look might have a message, we don't need your help in 2020 we need your help right now in 2018. you have a good game you talk about bipartisanship. but every time there's a vote, you run to the in the side. look, if you want to work with the president, he's reached out his hand to you many times to be slapped back we don't need your help in 2020. hardline trump. hardline brad -- there he is. brad thanks very much indeed. thanks. let's get back to that market where are we with going in 25 minutes time up a little bit more. remember we're up 346 points yesterday with look like we'll open maybe another 60 points higher this morning. well above 25,000. it has been quite a week for those beg tech names and it is still going on. now this is premarket, with amazon is down what 40 cents just shy of 1700. tesla is down 77 cents but

netflix microsoft and apple up some more. john leifield is with us. tell me john, why is big tech taking off some more going higher still when they're already at astronomical levels. why? >> the same reason that jesse james robs banks this is where the money is. look that's where all of the market is right now. leak you with look at the economies of scale of these guys you look at facebook with $2 billion monthly users a with 1.3 billion and net flix over 100 million subscribers same with amazon prime that's where money is and so easy to take this scale and ramp it up with other things like sports like -- live video. mobile, you name it that's why these -- these are driving the market so much higher. rng would you buy any of them at lofty with levels, john? prvelgt no, i wouldn't i own a lot of them an i'm not selling but not buying apple amazon evaluation is seems like it has gotten ahead of itself but not selling right now either. >> okay now warren buffett and

big names in business they've written op-ed in wall street journal trying to convince chief executives to tepid these quarterly profit forecasts. they don't like what they call short termism. what do you say to that idea, john? >> i think it is double edged sword but a hedge fund person 's dream because if you don't have quarterly forecast the people with the knowledge right now are going to be your hedge fund and money managers to make money off of this if you "don't ask, don'. it is right for the companies. jeff calling for him to be fired because amazon was not making money and so much money in infrastructure and very few board be seats and investigator bases would allow jeff to build this 800 billion company that is amazon that will probably be first trillion company and biggest company in the world in a short amount of time and it did have quarterly earnings going alone jeff would have been fired i think it is the right thing for companies but i do think it is a double edge sword to get advantage become to hedge fund. >> what drives me nuts is the

guidance that ceos have to indulge in all the time but a limit to what they can say. they can't say stocks will go up or market share will go up they can't say that stuff and get food, anything they say that really qowld affect the stock, they get sued for it. i see that gotten rid of -- >> yeah and that's what jamie and warren buffett and job in this op-ed and brilliant what they said and ping what you're saying stewart is exactly right they're so bound by forecast that -- it is stock investors are short-term thinkers about the majority out there especially these big mutual funds and hedge funds and they're driving companies to not do the right thing for the company long-term because they have to drive that stock price higher and higher. >> stay there john because we bring you back for opening market at 9:30 thanks john. now the the trump administration has reached a deal -- with the chinese cell phone makers zte in sanctions and now

wilbur ross says in commerce secretary has assigned settlement deal in hand. one billion dollar in penalty slayed against zte and put in escrow incase they break and violent sanctions again and watch this for ten years a team answerable to commerce department will be embedded as zte to watch over them incase they -- to see if they do any other violations of sanctions. >> wilbur said that zte is only foreign company is in full compliance with our sanctions rules all compliance. so -- stuart, they are popping intel and had done business with zt ergs and key to avoiding a massive trade fight with china, and foqo on the table. >> hardline from trump and it works you've got a deal. >> that's the deal. when do they acknowledge that? come on. okay. calm, stew check this out a

little gee wiz from microsoft yeah i do own that stock putting data center on the floor of ocean. well a big server farm underwater and cheap earn more energy efficient to operate. stop laughing lizzy a great story -- [laughter] and then we have exxon the company behind tasers and police body cameras they teamed up with a top drone maker, making special drones or for police and law enforcement. the drone maker is a chinese company is that going to be a problem? big dayed white house president trump holds meeting with japan's prime minister ahead of next week's summit with the north koreans. he wants president trump the japanese guy he wants president trump to push for complete denuclearization of north korea he wants trump taking a hardline now then when i first saw this one i thought it was a joke. it's not. trumpy bear it is a $40 stuffed animal version of our president you can buy one right now.

we're talking to its creator next hour -- trumpy bear -- i can't believe we do this stuff. it's a commercial and that's what we to. the hair that really make this is -- [laughter] we shall be back, that's a promise. [laughter]

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>> senate republicans claim the obama administration gave iran access to our financial system. it was part of the iran nuke deal they weren't supposed to do that. emac tell he all about. >> treasury secretary testified to congress we're not giving iran access to u.s. banks we're not going to give them access to financial system. at the same time, he behind the scenes in an e-mail is alleged to have been working to get iran access to 5.7 billion dollars worth at a bank in eman and e-mail surfaced saying they refuse jack lew's pressure, we'll bring in john kerry that will drive them nuts.

and they also at the same time we're telling -- krnghtss around the world don't worry about the snap back sanctions they don't get as they did did show around the world to sell the the iran deal. >> sha should be scandal numero uno at the top of the list. misled the american people. >> in congress totally misled congress and american people. just to get the iran nuke deal done. >> yep. disgrace. more politics -- calm down. the g7 summit starts tomorrow and national economic counsel director larry kudlow says the president is sticking with a hardline on trade. come on in christian whiten former senior advisor to president trump and bush 43. the hardline seems like it is working, we got that deal done with zte. i think the president maintains the hardline. what say you? >> i think so, and, of course, that hardline also got us a much better free trade agreement with korea with koreans accepting most that we sought.

so far the other countries with whom we're goarnting including canada had is host of the g7 haven't been willing to concede much canada has higher tariffs on a number of categories including an average it have 270% tariffs on dairy. some of that like cheese and others close to 300% we can start a lucrative smuggling into canada but trump will continue to take a hardline and get beat up for it out there. >> might not sign if he doesn't like what comes at him. he's taking a hard line and won't take any lecturing. rng i think this shows the frankly how the g7 has declined instead of real problems for things like big banks deutsche bank in trouble and at this timely pulling out of the euro that would be a good thing and none of the g7 will think that instead of discussing that the big product is a statement. i think it will be a bigger mistake if donald trump dupght sign one. but if they persist on this beat

up on the u.s. forum then that's what's going to happen. >> japanese president will meet the president today at the white house. the journalist says that aba wants donald trump to keep that pressure on north korea. i think he will -- this is hardline 2.0, isn't it? >> it is, and even though the president has changed the vernacular a little bit no longer describing it as extreme and total pressure. all of the measures put in place since the first days of trump administration remain in effect and haven't conceded anything so far and another point of that is that aba and trumped a summit will have bigger things on their mooped, of course, is the upcoming real summit of june which is the one with -- kim jong-un and singapore not so much but see in quebec. >> here's my bottom line here. i think president trump is exercising america's clout -- we are the largest economy in the world with the largest military in the world. we've not used it in our favor in the past not all of the time.

now, it is used in america's interest i for one approve. how about you? >> i do i think it's not so much threatening them but a reality check. our trade with canada is only 2% of our gdp but canada trade with us is 25% of their gdp, and they just can no longer expect to have the unfair tariff system that they have in place because we have more clout than they do. >> we've reached that point haven't we? christian thank you for joining see you again soon. you might think this hardline talk would have a negative impact on the stock market. well think again. the dow is going to up about about 60 points after gaining 340 yesterday. big changes coming to new york city's top high schools. thanks to mayor de blasio -- you no longer have to be the best and brightest to lad a spot in one of the city's best schools. what a story -- we'll have it in a moment.

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>> when you get a rosy forecast, from a retailer -- you're going to look good. well we've got a rosy forecast from five below discount retailer up 17% as we speak it is going to pop at the opening bell. hawaii -- look at this. this video came in overnight.

that's a lava flow right out of the kilauea volcano. hold on a second keep that video up there. earthquake as well? >> 500 earthquakes alone yesterday. to say that earth is constantly on the move there right now is ab understatement more than 400 homes and structures are now gone more evacuations but governor of fema are now on theme today for trying to figure out what to do with all of these people evacuated, obviously, they have nothing to go back to so what do they do? they're also concerned about the fog smog or haze containing this volcanic dust or gases there's a concern that trade winds may change direction bring it over an area where there are people so this is an ongoing thing. been going on since may third no sign of slowing down. >> it doesn't does it. next case to new york city. where the mayor, his plan to end competitive entrance exams for specialized high school it is that is past its first hurdle as a ways to go. the exam by the way will be replaced with quoters.

seems to me that the mayor has a problem -- with the preponderance of asians. >> he wants about -- of the minority he said it is not fair and should be 45% of the students of these top schools should be black or latino he said that schools do not reflect in new york city. but it is unfair the way that these -- exams are put together, and that the top 7% of all of the middle school should be ones eligible to go into the schools and ditch the exam altogether. >> so if you study hard for these exams, you em to the extra classes you study hard you cool down and you win, in fact, now -- you might lose because -- other people have a better demand on that place. >> he's upset with last of minorities at the school that exam is race blind what about reforming the school system and having chart hadder schools? >> not going to do that. charter schools. he's in love with the teachers

union -- and that status qoa which ain't exactly wonderful. just my opinion. [laughter] calm down stuart let's talk about money. [laughter] time you've said that in 25 minutes but pace yourself. calm down. [laughter] we're up 60 points at the opening bell dow industrials -- by the looks of it --

okay ohming bell rings it is about to ring anyway and start trading at about 50 seconds before we get to that opening bell and opening of trading i want to report to you on zte that's a chinese phone maker, they now have a deal with the trump administration they are now in full compliance with sanctions first foreign company ever to achieve that status. looks like hardline wins. >> and it will calm sears about trade suits. now that that deal is in hand the president took a tough line. china stepped up will it calm the waters also overnafta, with over north korea whether all of

this, you know -- fears are overblown in the markets and we're not at a full blown trade war. hardline it is a step, it is a process. hardline won -- they negotiated you've got a deal. and they pay a billion dollar fine. i mean that -- would be negotiated. exactly. that deal bang it is 9:30 eastern time ladies and gentlemen. and head to thursday morning we're off, running and we're pup 58, 58 point 57 points -- 25,200 worth remembering that -- 25,200 where we are 70 points high or 72 points higher that's a gain of quarter one percent. is it the same story on the s&p i will tell you immediately almost, we're up 3 points that's not much. .13%. however, look at the nasdaq, it's just opened at yet another all time high. up 6 points -- that puts it at 7,695. i never thought we would get back to that level.

quickly yield on the tenure treasury no impact on the market even though it is right at the 3% level. no impact at all. the biggest tech names have been on the tear lately and they're still going. apple and microsoft on your screens now, both at all time record highs. we're going to be following these tech names always threw the day because -- that's where the money is. elizabeth macdonald with us so is ashley webster welcome back john leifield out there he joins us via satellite. >> all right gary. i read your stuff. and i know you're all -- all messed up about the debt bomb you think it will bite us on the the back sited too will that stop you from buying into the stock market rally? >> i'm a big believer in price and market rallying here and it is getting stronger by the day. and the last couple days the do you was s&p is now playing catch up with why small cap in the technology and i expect to go higher internings mid-july.

market very strong here. i think eventually debt bomb will hit. i just don't know when. >> i misread you i thought you were going to stay out because be debt bomb is is coming in for the moment. >> we pay attention to price first everything second. i think there will be heck to pay down the road but right now the market a-ok and getting better by the day. you're making me neives at some point the boll will off what do you have before you can get out before that happens? >> i'm a big believer that market one day will flush it out and when we really go into a bear market that will be it. you know, with i wrote this morning with all of the talk about markets going up, in the last week, 21 billion dollars of debt was added on to the backs of the taxpayer and that's every week going forward and i don't think we can continue with that trajectory forever. >> hold on for a second i want to talk about amazon we're always talking about amazon reportedly they're in discussions about offering home insurance. are they getting into yet another industry?

. property and casualty insurance that was the talk on the street you know watch -- watch ai those are insurers they tack hit when news crossed yesterday. amazon is already doing smart home gadgets like smart lock, smart lightbulb echo device they have a deal to do show rooms of the amazon devices maybe they'll sell, you know, insurance and in those you're also doing amazon hand men to come to your house to fix things. it does -- force it together. whole thing fits. i understand that. okay. more on amazon hold on up close. >> they made history -- history they did by buying rights to show lives for mayor league sock orer games. i'm going right to you on this. mples yeah. in the u.s. is your first question no. this is for the u.k. market we don't know how much they pay for it and add 20 games starting next season. and -- so this is a big deal ep -- carry on for another ten minutes

epl generates like 6 billion dollars a season. amazon is smart they're trying to boost their prime membership in the uk and nontraditionals bringer has rights to air the english games that's terrific. john leifield you're a sports guy. i think you own a rugby team and investing in it what do you make of premier league english soccer on amazon? >> i hate to toot misown horn but that's what i did for a long time. i've been saying this for a year they get the nfl, and this is a natural progression for apple and amazon these remember fox studios was made off nfl and major league baseball in 1990s and rupert it made fox. this is doing the same thing for aiming dison apple will get involved i would not be surprised to see that nfl major league baseball nba all end up

going to one of these services. fnght that is fascinating stuff look at the market overall please just five mines into the session now up 72 points. well above 25,200 price of oil not doing much but around 65 dollars a barrel yes we are 6527 and gas prices holding dead steady 294 national average and average price of gas is $3 or more. individual stocks -- the discounter five below with a rosy forecast look at them go 18% higher. however, smuckers profit and sales falling short stock is down 8%. the rv maker thor industries they see headwinds from steel tariffs how about that impact of steel tariffs felt by thor down 4%. now look at microsoft. it wants to put a data center i guess a server farm underwater. why?

>> because there's a 40-foot long submarine off the coast of -- islandings reason they do this apparently it takes an awful lot of energy to keep giant servers cooled down on land and not just microsoft google has done the same thing. looking for ways to more -- efficiently e keep these servers why not put it under the ocean where it is naturally cold by the ocean water. it is fascinating. and apparently these things you don't need to do maintenance for five years they sit down there and you're able to access cloud data through this thing sitting on the bottom of the ocean. >> i love it that's gee wiz technology i can understand. twitter wants to raise a billion dollars by selling some debt. what do you make of that gary -- >> at a quarter% like i believe they are converting it's 57 somewhere around there free money for twitter. taking advantage of higher stock price i expect a lot more companies to do it a very smart

move on their part. i don't know why anybody could buy it and get a quarter with%, though, roup. >> would you buy it john leifield at 39.82 as it is now? >> absolutely not. gary is right. they issued a same convertible dealt offering in the 2014 to share price with 57 that is at 40 right now. the twitter is going up to 60 before. it now is trading somewhere around -- around $40 it is probably not going to get to that and if you don't you have a terrible yield. >> case closed on that one. airlines raising ticket prices because fuel costs are surging. looks to me like -- right john i'm surprised i thought that all of the airline stocks could go up because guaranteed to fill seats at higher price but they're not going up. what's going on? >> airlines have been lost money since they first flew. they're terrible industry. [laughter] i own delta and american and been okay they have a small yield but airlines are fully run they don't hedge fuel bed and

they have problem with earnings because of fuel prices. we need competition in the airline industry don't we? only -- no collusion. >> and won't use the word again. attention define drinkers -- do you remember two buck chuck from tradesser joes? [laughter] remember it well wal-mart into low price wines what do you say to that john leifield in bermuda. >> wailing mart is getting into everything. i think it is a natural move for wal-mart and got into selling booze in texas in the south and made a portion off of this and groceries a natural in a battle that is a titan pack battle with amazon right now about home delivery about offering as much as you can that's part of that bottle. >> excited so why not make this -- and 12 labels from california, and 11 bucks bottle that's not bad.

>> you know what i love the trend this is what wal-mart said we've made sure that define labels are clean and easy to read because they don't have a lot of time customers. they want to grab that wine and go. this is fast food wine. >> honest. they're honest. that is honest and it is true people want wine their wine. i've seen it in public and other supermarkets those sections are crowded. wal-mart capturing this trend. >> it's a good move. >> so long on this particular ?oir >> because it is wine. biggest tech name on a real tear. all right i want to go back to you on this one. are they too expensive i have them on the screen right now. microsoft apple too expensive for a guy like you. >> no. but i think they've had a pretty good run here recently probably want to look for pullbacks and here's a main point that a lot of people don't talk about they get all worried, facebook, netflix growing sales 40 or 50.. amazing the miracle microsoft

and apple growing sales in the teens when they're so big. this is amazing numbers that should do well for them going forward. now let's be clear they're overowned overloved so any missteps they'll get hit hard but so far, they are delivering the goods i have no problem with them. but i'll pull back at this juncture. >> incredible story. it's that time when gary and john i have to say good-bye to you heads up there ashley -- >> on the news stew. [laughter] working, working, working. gentlemen thank you see you all soon. check the big board with a pretty good gain we're up 56. 50 ponts now 25,000 attention starbucks customers your money latte is about to get more expensive how much more you have to pay in a moment. abc news reports that top watch dog at the justice department has found that james comey defied authority while he was running the fbi. judge napolitano will pass

judgment on that, next.

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about 13 minutes in and up 70 points for the dow 25,200. guess what, the starbucks coffee just got more expensive. the stock is holding at 57 come on in suzanne lee at exchange today how much more do other people have to pay? >> ten to 20 cents more on all brewed coffee give you a sense of how expensive that is a 12 ounce that's a tall cup of coffee so set you back 1.95 at $2:15 each depends how much you're buying that in. 8,000 stores raising prices this goes back to the criticism on the stock and company, and

analysts think that drink is too expensive and seen slowly u.s. sales growth and maybe starbucks is overstore the front page of the wall street journal today saying there are 14,300 starbucks stores across the u.s. of a that's more than mcdonald's and a the golden arches believe it or not and stock has to underperform over last year. >> got it suzanne thanks very much indeed abc news reports that justice department's watch dog has concluded that james comey defied all authority at times during his tenure as fbi director. all rise judge napolitano is here. doesn't sound like a whole hill of beans to me. prchg i'm cautious and i have been urging our colleagues all morning to be cautious and draw conclusions to this report. that abc saw and which corroborated by our colleague katherine harris this is very are thick multihundred page report with foot notes and i wouldn't rely on just a few snip

its, however, if these are accurate and that's all they're going accuse him of being to loretta lynch of all people my street level response is big deal. my own response is if that's all that's there -- either he was an angel or -- they've whitewashed things we're not looking for insubordination but crime did he commit perjury and serious error in judgment of which we know said we're not going to prosecute hillary clinton because we can't prove intense and for this statute you don't have to prove that. gross negligence is enough and we're looking for shading law enforcement decisions for political reason are. we're not looking for don't call it a investigation call it a matter. and they called it an investigation anyway. that's nonsense. >> this report won't just look at combmy but this report and page. >> but look, every name you just listed worked for him to blame him for everything that happened

in the fbi and it's a paramilitary organization and reports you do what the boss tells you. it's supposedly a very thorough report. i don't to draw conclusions from these lings snip its. >> until you've seen it all. correct you have a busy day yesterday in washington, d.c. and testifying about wall power, acts there and how much power it should have. smg yes there's a proposal by senator corker -- >> look at you on camera. [laughter] first i've seen it but entourage in the background there. >> you know, it was packed -- [laughter] there was a line several hundred yards long. people in line were under age 30 i don't know if they were to see me but senator bernie sanders but we were agreeing on everything but i tell you what you might agree with me. the proposal allows the president not aimed at donald trump but all future presidents but president president and this -- successors -- to designate whoever he wants --

as a -- terrorist organization and use the military against that group. congress then approves disapproved after he does it and designate somebody in the united states and use the military against them. this is so profoundly unconstitutional. and this is a first public airing of this legislation yet -- about >> you have a set in your case what this idea is to increase the powers of the presidency at the expense of congress when it comes to making war. >> because only the congress can declare war and not the president. that's a declaration of war. >> yes and what the declaration of war designates target and duration and president decided how to wage it but when congress lets its power slip to executive branch it's a sub rose disa amendment of the constitution by consent the supreme court is set -- a core power of each branch, legislative executive and judicial can not be exchanged

they're mixed. so senator bernie sanders agreeing with me and at one point whispers you really work for fox news? [laughter] hilarious. >> he said that? >> he didn't say it so stenographer could hear it but so i could hear it. [laughter] >> yitd. he was more engaging. >> did you say he's a fox varney viewer? >> he does watch fox we did not discuss you. but he does watch fox he said i see you several times day so he must mean varney. [laughter] >> varney so so many different things in my career. yesterday was first time i did that. >> bernie watching varney. >> there we go. see you later judge. >> thank you, sir. >> now look at this up 100 points plus. how about that? 346 yesterday. 101 this morning. now we're at 25, 248 and a lot

of e green amongst the dow 30. and then we have axron teamed up with chinese company a chinese drone maker, they're going to sell specialized drones to law enforcement we're talking to the top guy at axon about the chinese connection. we'll be back. ers. it's how we earned your trust. until... we lost it. today, we're renewing our commitment to you. fixing what went wrong. and ending product sales goals for branch bankers. so we can focus on your satisfaction. it's a new day at wells fargo. but it's a lot like our first day. wells fargo. established 1852. re-established 2018. 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.

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well look at this following on yet another rally and smaller companies are called small caps in represented by russ are l 2,000 yet another all time high right there. and dow is up 114. it's a rally. the trump administration warning congress about terror drones what do you got? >> drones used for enemy surveillance or people our enemies surveilling us. chemical biological attacks in the united states, in look for instance, in 2013 there were 8 incidents of suspicious activities involving drones. 2016, 1,75 . but the trump administration thes is more authority for dpght of homeland security and justice department to have or more to shoot these things out of air and take action to negate that threat. >> company known for tasers has partners with the biggest consumer drone maker of the mall

called dji that is a chinese drone making company. they're going to make a special drone for law enforcement. together that is. rick smith is with us with and he's the ceo of axon the new maker dju is a chinese company. is it possible that china will be watching what our law enforcement people do through these drones that you're going to launch? >> great question. no more so than they can watch through my chinese made iphone. [laughter] you know, it's no big secret than most of the world like they are made in china now and dji is by far world leader in drones and we're building this software here in america and they'll run on drones to inject all of the video to make sure exactly that situation doesn't happen. >> okay. now when you've got -- when this thing sup and running, are you going to have tasers or guns fired from drones? and laughing but that's what everybody is asking. you're going to put a taser on a

disploan >> certainly never guns and we have no plans in the near term for taser devices. but -- this is really about giving police the ability to, you know, have the same capabilities my son has. he has a drone right, and police have to do clearing rooftops finding missing people, et cetera, and these are just way more cost effective and nimble than helicopters so it's a great capability for them. >> so you've already got an in with law enforcement because you provide a lot of police body cameras i believe. you've got a special system, i think, that seppedz the information from the body camera ares up to the cloud. which is then accessible by those with a code same story with drones you're planting. >> exactly. that's the reason for this partnership so we want to start what's called evidence.com, and you can figure like itunes for police. we manage all of their data so that -- you know, every ten man police agency doesn't have to go hire expert to build a video evidence system. so rerun that for the cloud with partner at microsoft and now

drones will feed into evidence.com, and they'll be able to move it to prosecutors and defense and to courts and wherever else to move that digital evidence around. >> have you built a evidence drone yet? >> we're offering same drone that we can boy on amazon police are already buying them so we're going offer those, and do the software integration and then overtime we will develop -- codevelop some drones that you know have -- some of the special needs for law enforcement like, you night vision infrared. in business for a year or less? >> for law enforcement agency if they want to order a drone for us today they can pick four from the catalog today and roll out new capabilities overtime. >> we have it rick smith thanks for joining us sir, we appreciate it. >> thank you indeed. appreciate it, stuart. listen to this, i see a glimmer of hope for republicans in california. [laughter] i have seen the light. i will explain it, believe me. it's next --

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stuart: you can slice and dice the primary results every which race but one race stands out. it's in california. it's a recall vote and gives republicans some hope for a good showing in november even in california. josh newman is a state senator, he's a democrat representing a district in orange county, southern california. he lost a recall vote by 18 points in a district hillary clinton by 13 points. a democrat loses big in thoroughly democrat area in california. what an earth is going on? this recall vote was all about the notorious gas tax. it was imposed by democrat governor and passed by democrat legislature and it is wildly unpopular. california gas is now nearly 80 cents a gallon, more expensive than national average. 20% of californians live below

poverty line. how do you think poor people feel about paying big tax imposed by the coastal elites? forget about it. here is the significance of the vote, republicans, it was john cox who organized the ballot initiative repealing tax on the november ballot. cox is a republican, republican candidate for governor. you can expect a lot of people to vote against the tax and a lot would be independents and democrats and tempted to vote the republican line. that's how you get rid of the tax, the hated tax, they might just vote the republican line. maybe moderate democrats would also be fed up with job-killing environmental rules, sky-high taxes, a lousy business climate and all the other nonsense the left has imposed on the formerly golden state, maybe they will vote for a change of direction. there is hope for republicans even in the bluest of blue states. the second hour of varney & company is about to begin. ♪

♪ stuart: mortgage rates, it's thursday 10:00 o'clock eastern, where are we? ashley: 4.54% on a 30-year fiction, that's down two basis points from last week. slight shift down. we are seeing mortgage applications still rise even though, stu, we know inventory is tight, home prices are going up, mortgages are expensive. despite all of that, it is still because of the labor situation and the healthy job market things are moving along. 4.5. a year ago, by the way, 3.89%, it has gone up. still pretty decent. stuart: you know, we talked about it in the day. ashley: 15%. stuart: i was on 12 and a half and i thought it was a bargain. 4.54%, 30-year fiction, there

you the rate. tech, on tech again, earlier this morning both apple and microsoft hit all-time record highs. okay, both of them retreated a little bit but tech has on on a tear. look at the smartphone supply companies, why look at them, president trump has reached deal with chinese cell phone company zte, they pay us a billion dollars and they are now in full compliance with our sanction's laws, this is a tough stance by the president and he appears to have won. look at them go. mcdonalds, one of the top gainers in the dow, it's planning more layoffs, looking to shrink its corporate structure. liz: oh, no, i was just having fun. we are having fun over here. stuart: price of oil this morning is $65 per barrel. all right, in just under 2 hours, president trump meets with the prime minister of japan shinzo abe.

keith, normally we talk about the stock market, this morning i want to spend time on japan and north korea because you have a strong japan connection, you spent a lot of time there. can you give our viewers some understanding of the historical entities between japan and north korea and how that means prime minister abe would want a strong line from president trump against the nokos? >> absolutely. you know, the historical animosity dates back centuries not just to world war ii, it's combination japanese and korean action. a tit for tat scenario. however n this instance, you have abe moving into the white house i think as act of desperation because he wants voice heard and he does not want to get left out when china and the u.s. set the tone for the asia of the future. stuart: he wants a hard line? >> very much so. i cannot tell how much he's playing to his own political

party versus the citizens of japan, source of great confusion on the ground there right now. stuart: is it fair to say that the koreas plural and japan are at daggers drawn and have been at least since the end of world war ii? >> you know, politically that's something that's trotted out an awful lot, however, the citizens of those nations, i can't speak for north korea, certainly the citizens of south korea and japan get along on two. the companies do well, the citizens do well, it's the politics that seem to get stirred up. stuart: we will see what goes from summit, a week from today. let's get back to your favorite subject, keith, and that would be money. you say -- >> yes, it is. stuart: join the club, son. [laughter] stuart: sharp rally in tech stocks didn't feel right to you.

you're not chasing the big-name tech stocks, do you regret that because they are all making new highs? >> i didn't sell those. this is the distinction. it's one of those things that i can't put my finger on it and doesn't feel right, over 35 years of global markets, i have learn today pay attention to that. i'm not selling and encouraging people to say, you want to ride the bull to the buzzer like a rodeo cowboy, these tech companies is where the money is. you amazon with insurance, a lot of things the companies are doing that is right. what doesn't feel right is how fast rallies occurs. stuart: any comment on tesla? it was audiotape 30 odd points yesterday, it's up another 6 today, would you touch it, would you like it? >> i continue to like tesla, i think it's going to have challenges, the stock is volatile but i would not bet against elon musk. stuart: you know, i have begun

to change my opinion, ill might actually buy a little tesla on the grounds that it's a battery company not electric car company, not a space company. you know, it's a battery company. if they have a breakthrough in batteries, that's a big deal. >> yes, it is especially if he builds the plants all over the world, now building in china. not gifa factory, 10 to 1 worldwide. it's not about space, it's about the changing the way we consume, produce and design electricity. maybe i change my mind. good stuff. i want to get back to the top of the hour, my editorial there, the recall of this one democrat in california is a big deal and a pointer towards maybe, that's the gentleman, recalled, oirming county, recalled by 18 points in a very heavily democratic district. he's all about the gas tax. ashley: the cracks are appearing

for the democrats in california. i wouldn't get carried away, stu, certainly something that we would expect to see with regards to recall. i think there's definitely rumblings, let's put it that way, ground can be gained through the gas tax, ridiculous amount of taxes in california and in a general dissatisfaction, i don't think everyone agrees with the sanctuary cities, sanctuary state, these are the issues that show the cracks. stuart: to me it's about the gas tax. john cox organized ballot initiative that will get rid of the tax. that is a very popular ballot initiative. the republican proposed it. that gives him a shot. liz: california notably driven to insanity at the pump because they drive so many more miles than other americans do. overall, when you look at overall what's going on, the economy is improving, the president's approval ratings are improving, the democrats lead

over republicans shrinking to single digits in the polls, so now you have chuck schumer calling in the cavalry, obama to help out. july 27th is when we get the next gdp read. that's 3 months away from the midterms, will we see 4% growth? stuart: good question. liz: nancy pelosi house speakership is outrage of anything what trump does. stuart: let me back that up a second because senator schumer is reaching out to former president obama, he wants president obama to help him and help the democrats in the midterms as you just suggested. ashley: what does that say? to me -- i don't know if it's desperation, if you're calling on obama helping out maybe it's not as'y in midterms. what does it do in. liz: reminder of slow-growth years. stuart: we reported the lowest unemployment recorded rate for african americans in the united states. that would suggest that maybe

some of the black vote will be away from the democrats and go to republicans. maybe. maybe senator schumer wants help from president obama to keep that monolithic vote, most black americans vote democrat. ashley: that makes them vulnerable, what did you do during obama administration? stuart: hold on a second. congress is looking into google's deal with china's waway. liz: arm of chinese government, the government has been -- and wall street journal reporting that alphabet walked away from the drone contract with the pentagon, wall street journal is citing that in this story about congress now looking more closely at android phones that are connect today walway components and products. remember, watch this, congress pressured at&t to ditch its plans to sell phones earlier in

the year, the cia officials, huawei is connect today military intelligence in china. the fact that google stock is now under pressure, that's the theme that the governments are going to stop in. that's the gray swan-black swan events for companies. ashley: same issue with huawei. that's why the focus is on the google as well. stuart: google braced for brussels attack over using android to block rivals. liz: pay fine there. stuart: goog until the cross hairs over there and over here too. check this out, please, last night atlanta braves absolutely creamed the san diego padres 14 to 1, a woman caught the foul in her beer cup. liz: fabulous. stuart: gabi demarco and proceeded to chug.

ashley: come on. stuart: i'm making the claim. we cover it all on varney & company. what's coming up, i will tell you. [laughter] stuart: hold it. let's watch her chug this thing. the ball in the cup i might add. ashley: look at that. liz: rock star. ashley: that's a keeper right there. stuart: president trump commuting the sentence of 63-year-old great grandmother alice johnson, johnson called it a miracle and the left can't give the president any credit for it. we will talk about it. senator john thune wants to talk to mark zuckerberg again about facebook sharing data with device makers and chinese companies, the senator is with us later this hour. we are talking video games again. millions of people playing a game called fort knight making $30 million in a month. it's the game revolution and we are on it.

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stuart: we were up 340 yesterday and in the first 45 minutes of business we are up 103, we are at 25,250, not bad. price of gasoline really stabilizing, 294 is the national average and there are still what, 15 states in dc where the average price is $3 or more. stable prices. competitive gaming, really big business. what do you think is the leading game? it's fort knights, 12 million active users all playing, may have been competing and they are competing for big money prizes, i bet you didn't know that.

joining us now andrew anderson, gamer world news host, you, sir, are my window into an entirely different world because you know all about this gaming. okay, let's start with fort knight, how big is it? >> fortnite, the numbers say they got over $300 million in revenue last month alone which is just crazy. it's the most popular game of 2018 since february, everyone is playing it. it's pleasing to watch. it's definitely the biggest talking point of gaming in 2018. stuart: am i right in saying that the casino in las vegas, the big pyramid, i'm told they have a 50-foot screen, sort of entertainment area and you can go watch competitive -- people competing to win at fortnite for

big prizes, is that accurate? >> yes, they do. 54 led screens, game stations and play the games, it's made vegas taking to whole new level. they recently had tournament where one of the biggest stars held event where they raised 100k for great charities dealing with alzheimer's, the benefits coming from something like this is amazing. stuart: why is fortnite such a hot property? >> you know what, stuart, it's ultra competitive, it's easy to play, it's very pleasing, great cartoonish effects to it and it has little things which have to do with pop culture, like dances, but the bigger thing is it's free to play. we speak about the revenue it's making, it's free to play which not a lot of games do. you know, they make a lot of their money through in-game purchases. it's a cross-platform game which

not a lot of games do. you can play between ps4, mobile, x box. stuart: look, this is a financial program. we dabble in electronics sports as well, i have to say. but as i understand it, fortnite, 10-cent, the chinese company, they have a 40% stake in noternite, is that accurate? >> yes. stuart: back door way of investing in fortnitei buy the stock of ten cent, accurate? >> that is accurate, stuart. a couple of other big developers, epic games, there's a couple which are experiencing double digit and some triple-digit growth throughout the year. so being a business program,ic there's a lot of opportunity for investment in such a rapid rising industry which we are only starting to see sort of take place. stuart: you're as rallian, i think.

>> yes, yes you do well to pick that up. [laughter] stuart: it's bloody obvious. are you a green card guy? >> yes, i am. i came here about six years ago. i was going to stay for six months but here i am. stuart: once you're here for a few months, you can't leave. apply for citizenship, i did and it was the best thing i ever did. great country, join the club, young man. join the club. >> i might be here forever now. stuart: you should be. andrew anderson, pleasure to have you on the show, we will see you real soon. thank you, sir. >> thanks a lot, stuart. stuart: i have to admit i wasn't real sure about this, trump truy bear, a stuffed bear version of the president. it's something else. ashley: great for all american holidays. stuart: it is.

you to watch this because the top guy is on later this hour hi.i just wanted to tell you that chevy won a j.d.power

dependability award for its midsize car-the chevy malibu. i forgot. chevy also won a j.d. power dependability award for its light-duty truck the chevy silverado. oh, and since the chevy equinox and traverse also won chevy is the only brand to earn the j.d. power dependability award across cars, trucks and suvs-three years in a row. phew. third time's the charm...

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stuart: all right, what do we have now? ralph lauren, look at that. that i believe is a 3 and a half year high, full disclosure, my daughter works for ralph lauren. raising quarter dividend by 25%, they added a billion for the stock repurchase program. investors like it. 142 on lauren. kohl's, they have a new price

target boost, expects them to go to $88 a share, currently at 78. market likes it, that's kohl's. that's serious news out of amazon, live-streaming, let's go back to that ashley. ashley: interesting, we don't know how much they pay for this. we can guaranty it's a pretty penny. they will add about 20 games on prime service in the uk. very interesting development and entity, huge story in europe as you can imagine. but amazon prime has tennis, wimbledon and french open on uk amazon prime, they are take get away big chunks of what you would normally see on broadcasters, they have the nfl in this country, thursday night football on amazon.

stuart: big deal. ashley: anything up for grabs because they have the money. stuart: by the way, here is another amazon-connected stories, they are all connected in many ways, orders for heavy-duty freight trucks reportedly surging, so my question, liz, is, is this part of the amazon effect? liz: it's big rig orders, more than doubled in may versus last may. this is an economic bullish sign. the other story too coming out is watch this, states like iowa and illinois are upgrading highways because of the freight traffic increasing year over year, kind of interesting bullish sign for the economy. stuart: zuckerberg getting more heat in congress, i want to talk to him again, senator john thune to get him back. he will make his case on that program shortly. [music playing] (vo) from day one,

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[laughter] this got me in trouble. i'm sure. and you know what i mean. and the way she looked was way beyond compare. ♪ >> calm down, stu. check that big board. 92, on the dow 25,237. check the big techs up earlier most down now except tesla which is up another $6 at 3.25 twitter is a part of the s&p 500 also trying to raise a billion dollars. it is down today they're down 3% but at 3897. president trump commuting to

life sentence for alice marie johnson. she was a first time nonviolent drug offender serving life sentence remember last week kim kardashian west pleaded her case with the president here's liz johnson thanking the president. roll tape. >> i want to thank president donald john trump. thank you, thank you. thank you. to give me another chance -- >> joining us now former arkansas governor and fox news contributor host of huckabee saturday and sunday nights on cbn governor i would like to say, you know, these pardons have come under some criticism senator cory booker doesn't like the process. what do you say? >> i commend the president for doing this in the light of day not at the last 15 minutes of

his term like most presidents do to. he's got the guts to stand up sign it and do it publicly announce it. and explain it. and i think cory booker should be grateful for not only allowing this great grandmother out of a life sentence without parole which was an absurd sentence but ought to be grateful that it is going to spare the taxpayers about $35,000 a year to incarcerate someone who really doesn't immediate to be in the prison for the rest of her or life. >> i think there was some hostility to these partens because it was kim kardashian west who made the appeal to president trump, got into the oval office, had privilege of getting into oval office where a lot of other people wouldn't the get in. i think that's the source of the objection. what do you say to that? >> well, if kim kardashian can use her celebrity and visibility to get into the white house, and help somebody who otherwise

would have been completely runover by the system, why are people upset with that? shouldn't they be grateful that a person crushed by overbearing judicial system able to get out of prison live a life with her family? look she committed a crime. but my gosh stuart most people who commit murder serve a third of the time that she's already served and many go out and she wasn't pardoned but commuted a lot of people don't know the difference but people hate trump so much they can't enjoy the absolute euphoria this lady feel for getting out of prison. after over 22 years in a federal lockup. >> governor i think you're right. i think trump derangement syndrome is unbalancing people and not a rational opposition to the president they are so about. do you think that will ever change?

>> no. it's not going to change becaused people who hate trump are indeed as you've just said derange ared it be. and deranged in every aspect of their life but this is a man if he ran out of a burning building with two kids in either arm and saved them from the fire, "the new york times" "the washington post," and nbc would report donald trump fails to save historic structure from fire as it burns to the ground and he runs from the facility. that's how the headline would read. so he's never going to do anything right. but people who hate him give hill credit for. but look a lot of americans are giving him credit for leading this country in a very different and positive direction and markets you're reporting on reflect that. >> well said sir. by the way i think you belt her air time on television than yods and that's why you're a little this morning. are you okay, governor? i feel fine but talked too much

and been on way too many airplanes with air in the cabin is drier than the desert -- that's the problem. j well said governor huckabee always a pleasure. thanks for joining us, sir, appreciate it. >> thank you, stu. >> hey, watch out -- chuck -- wal-mart is getting into -- high quality -- look high quality -- high define getting to wine. upscale wine at bargain prices 11 a bottle for wine and wal-mart's own brand you know costco has its own brngd and wal-mart is picking up a trend that you know we've noticed in supermarket selling define public sells them. they're a crowded section and i like what wal-mart said we're going to make sure that labels are easy to read and they're clean. that means that is grab and go fast food wine people want their wine fast. i think it seem it is like a smart idea. >> isn't that what they said people want their wine fast grab it and go. >> not a lot of time. >> no french on the label. nothing wrong with that, stu. [laughter] rnch do you remember two buck

chuck because i do -- way back when he was literally $2 red or white $2, and never went that low. [laughter] >> stu has a sense -- >> has a standard. >> why are you laughing 83 point up for the dow jones industrial, 25,228 that's the status -- that's the play we say. that's confused there by two buck chuck. excuse me. up 80 points 25,226. now what we got tell me producer where are we going? going to here we go i'm teasing you with telling you what's coming up. president obama reportedly serious stuff here. president obama reportedly gave iran access to america's financial system. when he wasn't supposed to -- judge knapp tan mow is napolitano is with us and raise that issue. president trump takes on philadelphia eagles could that

actually have an impact on the midterms? we'll talk to republican, a republican running for senate? pennsylvania. will he feel the backlash or effect can he win with the president at odds with the eagles? that's a good question. >> very good --

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visit enbrel.com and use the joint damage simulator to see how your joint damage could be progressing. ask about enbrel. enbrel. fda approved for over 15 years. >> our very own judge napolitano testified on capitol hill yesterday and he told us that senator bernie sanders of all people is is a regular fox viewer and may just may -- watch "varney & company." roll tape. >> talked to bernie sanders and agreeing with me agreeing at one point whispers do you really work for fox fox news it was hill lair didn't say it so stenographer could hear it but i could hear it. >> did you talk to him afterqardz? >> i did he was warm and engaging. >> did you say he's a fox varney viewer? >> he does watch fox we did not discuss you. so he does watch fox he said i see you several times day so he must mean varney.

[laughter] in -- stuart he watches varney. so many different things in my career yesterday was the first tile i did that. hotel, car and activity all in one place. ♪ the nation's largest senior-living referral service. for the past five years, i've spoken with hundreds of families and visited senior-care communities around the country. and i've got to tell you, today's senior-living communities are better than ever. these days, there are amazing amenities, like movie theaters, exercise rooms and swimming pools, public cafes, bars, and bistros, even pet-care services. and nobody understands your options like the advisers at a place for mom. these are local, expert advisers that will partner with you

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york google decision not to renew a contract to develop artificial intelligence for the defense department was a victory to the employees who had protested it. he also calls the move a defeat, and national security and patriotism. joining us now, the next revolution host, steve hilton. little background here i know you know it but for benefit of our viewers google employee didn't like working on artificial intelligence projects for the military. they thought it was war work. so the demanded that the google stem become and they did. i think that's terrible. bloomberg says it is pretty bad. what says steve hilton? >> well look it is even worse than he says. first oflet's just remember gooa private company. it has to run its business and if employees revolt against something the management has to listen to that. so reason it is worse than he says is it has not google employee and the end refuse to

work with our government here. the government of a democratically elected government -- at the same time, right now google has an ai center artificial intelligence center in beijing and you could be sure that all of the work there is being sucked out by the chinese regime the worst dictatorship as part of its plan and stated plan for well domination in artificial intelligence for military supremacy as part of its made in china, 20 25 program and worst than that a chinese company who has an artificial intelligence center right here in silicon valley. stocking up the best american talent again to further the world domination this is a really serious situation and we have to stop it. >> how do you stop it? i think there's going to be fairly soon a serious move to break google up. because it has got all of these different branches and avenues

with a monopoly in some situations prime for antitrust challenge. what say you? >> i long argued that not just in the tech sector but right across the economy we've seen this concentration of economic power that is bad for our economy, it's bad for society. and so i think that that antitrust argument is going to be really important for company ies like google but also in other sectors like insurance companies and so on. but the real answer here to national security challenge that mike bloomberg correctly raised is actually not relying on the companies. what you've got to see is a much tougher attitude from our government to say to companies like google you cannot cooperate with the chinese government. you can't be in china. because if you're in china, spreading your best technology and your best knowledge, that's helping an enemy of america. and only the government, our government, can actually require those companies not to cooperate in that way. >> what you're talking about has to be part of the u.s., china, trade negotiations, the

diplomatic negotiations between the two. google is right in there, isn't it? at the highest level. >> yes, and they want to get more in there. you know, a few years ago quite rightly, google said we're not going to be in china. no matter how much money we can make. we doapght think it is okay to be in a place where -- view the sensor and a brutal corrupt authoritarian regime we don't want any part that have but that's change and trying to get back in that ai center is part that have and time that government here said to these companies you can't do that. you have to choose between america or our enemy, china. >> you know steve hilton you have a way of putting things in a nutshell and it works for us. i think it works for your show too. steve hilton is a good man. thanks for joining us steve, see you soon. >> let's hope bernie sanders is watching. [laughter] >> odds are against it -- saying that right now. all right. look at this we have a rally it is not a huge rally by recent are standards. but we're up 91 points, 25,237.

when i first saw this. i thought it was a joke -- it's not. roll tape. [laughter] i did think it was a joke the president has his own plush toy these days i think we should bring in the maker of trumpy bear he's here on the show and there he is name is elliot bracket. elliot you've got a smile on your face and i don't blame you how's things going? >> we're diagnose well -- selling trumpy bears how much? >> how many. we're a private company and so we don't try to disclose those but they have exceeded our expectations. >> how much does a trumpy bear cost? >> they are $39.909 plus

shipping. >> and where are they made i have a buck says they're made in china. are they? >> you would win -- you would win. unfortunately could not make them here domestically of to them cost under $150. >> how do you think the president feels about -- it trumpy e bear being made in china? >> that i have no idea. no one has ever reached out to us or in any way shape or form. >> are they available nationwide at the moment? >> they are. we sell them boats on television, with amazon, and on our website. >> how did you get a marine -- a former marine to sit there and look autocuddly with a trumpy bear? and do a commercial for you? [laughter] >> well, i didn't do the shooting. but the producer got it done. and surprisingly a lot of motorcyclists do ted did i bears or stuffed animallings on their motorcycles so not that big of a stretch. >> i think you're on to a win or i really do. i'm sure there's a lot of people going to be buying this thing so

how long -- have they been available? how long have you been on the market with trumpy bear? >> we started selling back in july of last year. but really it was the christmas season that where it took off. there were very popular gift items both for people who like him and dislike the president i think. >> father's day is what june 17th -- just around the corner. big sales coming, you think? >> that i don't know. we're hoping. but if we don't know until they click the button. >> okay. i have to ask you some questions here. you tell me exactly how many sold will you tell me you've sold in the thousands? >> yes, sir. >> tens of thousands? >> yes. >> hundreds of thousands? >> unfortunately not but i'll be happy to come on when we do. [laughter] >> happy to want to miss that someone -- >> happy to come back on and tell you when we're in the hundreds of thousands. [laughter] >> i bet you would. a pleasure having you on this show. it's a remarkable ideas and not

a joke it's trumpy bear and we thank you for joining us, sir, appreciate the it. >> thank you. was that -- cover it all 39 -- i think it was. plus shipping. trumpy bear. now, you know. more heat for facebook mark zuckerberg senators calling for him to go back to capitol hill and more questions about what facebook does with your data. senator john is leading that charge. and he'll join us, next. man: i got scar tissue there.

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>> remember when facebook 's chief mark zuckerberg testify ed in congress all about that data breach scandal. well now, two senators have sent him a letter ask for more questions and they want him back in front of congress again. john republican south dakota wrote that letter. or at least he was one of the senator who is wrote it. along with bill nelson democrat from florida. why do you want him to come back mr. smart do you think that he perhaps didn't fudge the truth first time around? j well, stuart we have additional questions based on recent reporting, and things

that weren't disclosed and we have hearing a few weeks back as you recall he testified in front of a joint committee here in the senate and then also followed up with a -- you know, a testimony in front of the house. but these new relationships these partnerships these contracts, that facebook had with mobile device manufactures both here in the united states and in asia, raised new questions about whether or not user information might have been compromised. and those were thingses that didn't get covered that he didn't talk about at the hearing when we have them here previously. inch sense that public sentiment is changing becoming anti-facebook because people don't like their information being used for all these purposi also sense that google is beginning to get a lot of bad press as well a bad pr for a long time for some time now with this deal with china's way the phone maker it's not just facebook. google is coming into this now. they're two biggest plat formals

most of their revenue comes from online advertising. and you know, obviously, they appears at least google now as well has certain contracts and partnerships and relationships with other chinese device manufactures and i think that's a concern. obviously, we are very concerned about the prospect of china embedding their technology and our equipment or them stealing our technology and in theirs. so these relationships that we are coming to light now, i think raise additional question withs and those questions frankly need to be answered because we need to know and users need to know where firewalls are put in place and their information made available to servers in china for example or was it confined just to devices that these manufactures make. so we need to know that. >> senator are you away of any other senators or congressman getting together and figuring out some legislation which would be aimed directly at facebook

and google which would restrict their business model? are you aware of any such legislation in the works? >> there are a couple of bills out there right right now that would -- address that issue. we frankly we are looking stuart, and having conversations about the best way to proceed to make sure that when people consent to something to the use of their user agreement they know, in fact, what they're consenting to and has to be meaningful consent i think that was one was consensus issues that came out of the last set of hearings was that people check on or click on user agreement and this thick nobody knows what's in it and important that they know what they're giving up and exchange for this service and so -- we're looking at what that might look like, and, obviously, consulting with a lot of folks in the stake holder community with members of congress. and we want to move forward in a way that makes sense that doesn't, you know -- basically kill a business model but been successful but also that puts restraints around to

ensure that user information isn't compromised. pressure is rising i think senator john thanks for joining us sir. always a pleasure. thank you. i promise more varney after this. nah. not gonna happen.

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stuart: g7 meeting starts saturday, the washington post says president trump doesn't wanting to, he doesn't like the idea on being lectured on trade by the canadians and european. note to g7, don't do it. this president doesn't react well to being lectured. if you think that for one moment donald trump is going to back down because angela merkel doesn't like him, think again. the post also report that is the president has considered not going at all and sending the vice president instead. why? because he has the summit with the north koreans to deal with just days after g7. he skipped the latin america last year because he was firing missiles in syria, why not skip

the g7, arguably, that's more important than listening to foreigners gripe about tariffs. as of now, the president is still scheduled to board air force one and fly to canada tomorrow. point is, president trump is exercising america's power in what he sees as america's best interest and there are many voters who are with him. we have clout, we have leverage because we are the largest economy of the planet. our allies are not used to america first president and they complain loudly of our hardline president, he's not going to change, why should he? he was elect today make america great again, put america first. that's what he's doing. hardline trump got kim jong un to the table, hardline trump will eventually maybe probably get the canadians and the europeans to the table too. one last point. at the end of the g7 meeting it is traditional for all the participants to sign the final

communique, this is trump, he's not the president that signs boiler-plate statement, don't lecture him, don't insult him, don't snub him, he doesn't like it, the third hour of varney & company is about to begin. ♪ ♪ stuart: you heard that, my rant there on the president and hard line, i want reaction from fox contributor scott martin, and john lonsky, john, to you first, looks like the president's hard line on trade is working, he has a deal with zte, they pay us a billion and get in line with the sanction's policy, looks to me that the hardline wins? >> so far so good according to performance, they don't seem to be especially word about the possibility of a damaging trade

war. let's see how it proceeds. stuart: to you scott martin, same question, why -- this is a hard line on trade. it's ongoing but the market doesn't seem to care, what say you? >> i think the market has confidence that things are going to work out to your point, gosh, man, i love what you said there, the world is not used to america first president. i mean, that's so true. yes, i get it the delivery at times has been questionable, maybe like that of playground bully to some degree, my goodness, isn't it working, guys? america is the biggest economy in the world but also the world's largest shopper, if you're like wal-mart, amazon, kohl's, whoever is out there, biggest shopper, you want to cater to them. that's really what the president has behind him, the fact that america buys stuff from everywhere. we have great economic growth, great tax policy now and people want to work with us and not shun us. stuart: the mainstream media refuses to give president trump

almost any credit for the strong economy. i just want you to thereon this exchange between larry kudlow and reporter during a press briefing yesterday, roll tape. >> best economy and jobs ever but unemployment as you know, although there's a good story to tell, unemployment at all-time low, gdp growth is not at all-time high, so while the economy is doing well, how should we read the president's words, hyperbole, should we not take him literally. >> 3.8% unemployment rate is among the lowest on record. >> among, correct. 2.5 in 1953. not the best ever. so it is hyperbole, do you agree. >> he's stating facts, the facts stand on their own. i'm not going to quibble with you about such things. stuart: john lonsky was laughing, explain your laughter. >> why go back all the way to

1953 and choose 2.5 unemployment, korean war was going on or something, close to full employment. entirely different world. reality is that a lot of us economists have had long-term forecast ruined by the election of donald trump. the idea was that growth would be stuck at 2% indefinitely, secular stagnation set in for the long run and now we are not so sure that that's necessarily going to be the case. stuart: it was so petty, scott, just so petty. they were technical in criticisms of president trump and distracting from the message which is the economy is really, really doing very well and that's maybe why we've got a roaring rally going on. i think honestly that the message about the quality and strength of the economy is penetrating through that screen. i think that's what's going on, what say you? >> definitely is. the market is the ultimate judge, i agree, it's petty.

if that's the biggest problem we have, guys, on the economic front, 3.8% or 2.5 or 2.7, big freaking deal. i tell you what is happening, we can see happening with gdp, atlanta fed saying 4 and a half percent or maybe more as that's been going up for the last few weeks, he said it was going to be 5, we have all the great data points throughout that the left and some of the haters as the kids want to poor poor the numbers, things are developing as he said they would. stuart: quick comment from john and maybe you, scott, about what warren buffet and jamie dimon are saying in editorial, ty want end to short tmism, end of every 3 months ceo's has to get up there and tell them to report earnings, end of quarterly reportings. >> easily said than done. what they said in the article is they don't want companies to

earnings guidance, earnings forecast out of the belief that doing so forces executives to devote too much energy into meeting those forecasts as opposed to worrying about the long-term. stuart: is it going to happen, no? >> doesn't make that much of a difference. maybe just analysts should be the ones doing earnings forecast and not corporate executives, what do you say, scott? >> analysts are terrible. i don't know who put these together, it looks like kids wrote them. that helps money managers and investment advisers like me because we do the hard work to figure out what's going to happen in your portfolio in the next six months and not three years. >> nobody can accurately predict long-term economic performance. that's an impossibility. stuart: john, scott, thanks for joining us, always appreciate it. the dow is up exactly 100

points, check the price of oil, please, $65 a barrel. actually it's up today, a buck 5. gas prices, though, holding dead steady, 2.94 is national average and still 15 states plus dc who are in the 3-dollar per gallon club. airline stocks, look at them. they are probably going to raise prices because of the high cost of jet fuel, i would have thought airline stocks would go up on the suggestion, no, only jet blue is higher, the rest on the downside. i've got a new poll and it's from the journal and shows president trump approval rating is going up right at 44%. i think that should help the republicans in the midterms but we will ask fred barns that question in just a moment. happening now on capitol hill, hearing on the problems that social security faces, it's paying out more than taking in. the democrats blame the tax cut for this mess. my question is what's the end game here and it's a big day at the white house, the president

holds a meeting with japan's prime minister ahead of next week big summit with the north koreans, we could see the prime minister's arrival later this hour. stay with us. this is the third hour of varney & company we started making wine in 1948... [sfx: bottle sounds on conveyor] one bottle at a time. today, we produce nearly 20 million cases a year. chubb has helped us grow for the past 30 years... they helped us prevent equipment problems during harvest and provided guidance when internationally. now we're working with them on cybersecurity. my grandfather taught me to make a wine that over delivers. chubb, over delivers.

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stuart: happening now on capitol hill, there's a hearing on social security. it's having its problems as you know, it's paying out more than it's bringing in. if there are any headlines from that subcommittee hearing, you will hear them first. i'm still on social security. i'm not actually on it yet, but i want to talk about the subject and bring in fred barns, executive editor of the weekly standard, fox news contributor. fred, the democrats are blaming tax cuts for the current mess of

social security, you want to take that one on? >> well, i mean, i think that's preposterous and particularly for this reason, who pays for social security? it's paid for by the recipients, taken out of their pay every payday and the people they work for. now, we have a lot more people working and there are a lot of jobs open and we can get more people works so there there are a lot of people paying to social security which doesn't argue for the tax cuts, for social security losing, the tax cuts have actually increased the number of people working and that's going to provide more social security benefits. stuart: but there's going to be calls for a fix because in long term it's in deep trouble. the fix will take two forms, number one, raise retirement age for dissubstantiate retirees, way down in the future, number two, raise social security tax.

that's my -- i don't think necessarily think it's a good idea, i think that's the way the fix will come in, what say you? >> we have gone through this many, many times here and, you know, it's terrible, it's going to 15 years from now it's not going to have any money in social security treasury and so onened then that changes and we don't need a fix, i don't think there's going to be one any time soon if ever and so i think you can stop worrying at least for now. stuart: okay. >> i've stopped. [laughter] stuart: yes, one of the distant problems. >> yeah. stuart: i have a poll from the journal, wall street journal, president trump's approval rating is up 44% as we speak and the same poll shows about two-thirds of the people are satisfied with the economy. both of those two items there would seem to help the republicans in the midterms, where am i going wrong? >> i think you're absolutely right on that. particularly the rising number

of president trump. i mean, that's one of the things that are important in midterm elections because they tend to be the voters rendering a verdict on the president and it's usually critical, a little bit anyway but with trump's number, approval number going up, one it kills off the notion that trump, well, sure, he's been gaining a little bit but that's about to blow up. he's going to crash in his approval rating, but look, this increase in approval has been steady for months without any sort of a break at all. i think it's a very optimistic -- optimistic causing event that will help the republicans assuming it continues, will help republicans in midterm elections. stuart: call it, please call it, the november election, do you think the democrats will regain control of the house? >> you know, i read in the

washington post and new york times that this election this week, the primaries, they are reigniting the blue wave so if washington post and new york times are saying that, then i think that's probably wrong and republicans will hold the house. [laughter] stuart: fred barnes, i knew that was coming, i just knew it. a guy at the weekly standard will say something like that. fred barnes a pleasure. >> i enjoyed it. stuart: glad to hear it. west virginia senator joe manchin, democrat, he regrets supporting hillary clinton in 2016 and he's even hinting that he'll back president trump in 2020. the senator says he believes the president's policies are best. he'll be right there behind the president, manchin is up for election? why doesn't he change parties? i think that's a reasonable question. we have tesla, the battery in a fatal tesla auto pilot crash in

march reignited five days after the crash. investigators also say the car increased speed in the final seconds right before the crash. no impact on the stock. it was a big winner yesterday, it's up a little more today. alice marie johnson, free woman, she spent 21 years behind bars for nonviolent drugs. the great grandmother running to friends, after kim kardashian west lobbied president trump last week. she's out. listen to this. the obama administration reportedly gave iran secret access to the american financial system as part of the iran nuke deal. they're not supposed to have done that. it's a bomb shell and we are on it.

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stuart: amazon has bought the rights to show live english premier soccer games and you -- if you're a prime member. ashley: just for the uk.

what better way to do it than start airing live premier games, 20 games a season beginning 2019. we know how much they paid. another package of 20 games sold to british telecom and they paid 90 million pounds. stuart: pounds? ashley: well over -- stuart: 150 million for 20 games. ashley: we don't know how much amazon paid. it's going to be in the same neighborhood. the english people -- premier is the most watched, it's impressive. stuart: tell that to our producers. ashley: he's in denial. stuart: the story of amazon getting into live-streaming sports. ashley: they have the nfl. liz: getting more prime members in the uk. stuart: very big deal. i want to talk microsoft, not just because i own a piece of the stock, but because of that, they are putting data center, that's what you're looking at, they are putting it under the sea, under the floor of the

ocean in scotland. who's got that one? ashley:ly do that one. 40 feet long, like a submarine, it contains, can contain up to 864 servers that are going to be down on the ocean. why are they doing this? because it takes quite a lot of energy and money to keep these servers cooled on land, you to keep them at a certain temperature. you put them down at the bottom of the sea, the natural cold waters, my god, it is cold, nice and cool and they can be maintenance free for five years, other companies are doing the same thing. google is doing the same thing with it's server, fascinating. stuart: more secure. ashley: exactly right. stuart: you can't jump over the fence to land base center. ashley: environmentalists can't cry foul because it's more friendly not having energy used on land, put it at the bottom of the ocean. stuart: got you. next story and this is for

elizabeth. liz: yeah. stuart: wal-mart getting into low-price wine, is this a competition for two buck chuck. liz: yes, it is, i'm impressed that you remembered it. i love talking about wine right before noontime. bargain prices, 11 bucks a bottle, clean, easy, grab and go wine. it's all aldi, trader joe's. ashley: sit in your submarine on the ocean bed in scotland, have a glass of wine and watch premier football. liz: there's so many different labels out there in small business, they are making fun of me. i'm excited about this story. ashley: who doesn't drink. stuart: and you. [laughter]

stuart: a lot of action in washington, 30 minutes from now we are probably going to see president trump welcoming japan's prime minister to the white house and on the other side of the coming break, speaker ryan holds his weekly news conference, we are only going to bring you the headlines, okay, we won't torture you, just the headlines. look at this. new highs for the dow, well above the 25,200 mark, watch your money grow on varney & company, our third hour. ♪ a bachelor. and that's how he intended to keep it. then he met the love of his life. who came with a three foot, two inch bonus.

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stuart: iple digit gain. there you have it. we've got about 25, 26 of the dow 30 and a green peered up at south 127 points. pretty close to the high of the morning. any moment now, house speaker paul ryan post's weekly news conference. this is our promise to you. the feud between president trump continues. malcolm jenkins hauled up about it as an hand written signs

yesterday when they try to ask him questions about it. the sign said things like you aren't listening in: kaepernick give a million dollars in charity. our next guest wrote a piece in the journal about all of this title but trump seven, eagles nothing our weekly guest on a thursday morning. if i look at the headline, it looks to me like trump won this thing hands down. what do you say? >> that is what i'm saying. word got out he invited them to come because he won the super bowl. we invite these winning teams to dispute it has to stop. a lot of them said they were going to come because they were upset donald trump had dipped the nfl players who had taken a kaepernick knee during the national anthem last season. the philadelphia eagles stood up for all national anthems. nonetheless, the issue here is the fact that coming up, there is a time when he woke up on a sunday morning and said i'm

looking forward to spending sunday afternoon with nfl for all. you turn the thing on and suddenly the national anthem is the star-spangled banner has been politicized by these players. how can i get away from this kind of politicalization? there was at the white house again with his visit. stuart: everything is politicized these days. you can't get away from it. you're in one side or the other. grumbles force to the political decision. >> you know what come the steward, that is the reason in 2016 the people who are sick and tired of having everything politicized. the national anthem, and identity, free speech, the campuses voted for the one guy who is making a mockery of all of it and i was donald trump. >> u.s.a. knock it off. we don't want this. he didn't take any of it seriously. he's probably going to keep this feud with the nfl going because he is winning.

>> ursula, i'm sick and tired of it. i don't care about the nfl anymore. it may have something to do with the fact that i'm for cleveland and the cleveland browns haven't won a game. stuart: please stay there and calm down. zero the fun slightly separately. congressman lou barletta is the republican candidate for pennsylvania. the eagles are extremely popular in pennsylvania. is that a mistake politically for president trump to go after him? >> it's actually the opposite comes to her. he invited them to the white house to celebrate and honor the eagles for winning their first championship when only two or three players are going to show up, the president decided instead to wander the country in the military. i can tell you i was there with 1000 eagles fans who came to washington. even though they didn't get to see their beloved eagles come

and eagles fans are patriots first as well. it turned out to be a good day. stuart: did you get any flack for their constituents because they know you were there. did you get any repercussions? >> is pretty simple for me. football is not partisan and neither is being a patriot. if someone wants to give me flack because i went there to honor the military and our nation, i'm happy to take that. last word to you. this never goes away, does it? the politicization of everything. >> it's not going away and i think it's just going to increasingly help trump because people are so sick of it. democrats have gotten upset but trump is blotting out the media and we can't get our message out anymore. who created that problem? the media attacking term. stuart: hanker commuter pretty good at this. back to you for a second. the mayor of philadelphia posted this video.

shows him dancing after a federal judge issued a ruling in favor of philadelphia sanctuary cities.us. look at that. i'm sure you c see it. what do you make of this? now i sanctuary city. >> that's a sad video to watch, especially for someone like me who was the first mayor in the country to try to stop illegal immigration in my city. i was sued for wanting to enforce federal laws and now we have mayors actually do mean because they are sanctuary city. i don't think the family of the victims in philadelphia who were victims of illegal immigrants. just recently there was one where was one were a little girl was. i don't think they're dancing as well. when you cook them in us of the federal government temperature people at risk from the dnc would not be the first thing i think of doing. stuart: i've got an explanation for the dancing. the mayor thinks he just walked in the hispanic vote.

and i way off base they not? >> you're way off base. this video is mayor of was 50% latino and i won with 90% of the vote in understanding up for illegal immigrants. keyword, legal immigrants. they get it. we are hurting the legal immigrants and people in cities like philadelphia and all americans when we become a sanctuary city. we say that's going to be a big issue in this campaign and election because my opponent and i are at opposite ends when it comes to sanctuary cities. stuart: will give you the last word on this one. >> is that they get caught on videotape is incredible. stuart: we had to go on the loop and mostly running. congressman, dan can we thank you both for joining us today. we've got a 122-point rally for the industrials. 122 points.

that is five below, a discount retailer. how come they're 22%? easy answer. they came out with a rosy forecast to you do that love it. different story at smuckers spear their profit and sales figures fell short of what was hoped for. that stock down 5%. rv maker thor industries feeding headwinds because the steel tariffs. that's the first time i can remember a company really taken it on the chin. not much, 15 cents down because of the imposition of tariffs. that is for industries now. the obama administration reportedly gave iran secret access to the american financial system as part of the iran nuclear deal. they are not supposed to do that. the judge will comments coming up. president trump while grinning prime minister japan at the white house. it is history happening. i'm "varney & company."

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stuart: up 133 points as we speak arabic in at about 25,278. it is another rally. the tech stocks moved up in the early going. they are now pretty much neutral, but still right up there very, very high levels. we have a new record high for the rest of 2000. another indicator that is still small-cap companies doing very, very well. that's her business brief.

stuart: japan's prime minister shinto abe is about to arrive at the white house for talks with president trump. edward lawrence is right there. this meeting shortly is all about the prime minister of japan wanting to take president trump wanted to take a hard line with the north koreans. that's what it's about, isn't it? >> a number of items that the japanese are coming here with. they have an agenda. one of them is the tariffs the

third one as hostages. job gains have been paying them so they would like the president to drop the tariffs. they may be left behind. they are seeing america look at doing deals in asia and they're worried they may be left out in terms of their interest. that specifically about north korea. there would be left out an agreement saying they would get rid of intercontinental ballistic missiles and protect the united states. the shorter range missiles are also removed an hostages in the 70s and 80s the korea took hostages thanks very much for joining us. we'll see them of life voluntarily. fox business network's will have joint news conference which our president and the prime minister of japan expect it to start at 2:00 p.m. eastern. watch it on fbn.

we will also have led coverage between our president and kim jong un. coverage start monday night at 7:00 p.m. eastern. fbn will be a live all night long for the overnight hours and into tuesday morning covering the summit for you. the obama administration reportedly gave iran secret access to the american financial system. it was all part of getting through the iran nuclear deal. here it is. this is totally illegal. get the 13 angry democrats to divert their energies to this matter as comey would call it. investigate. judge napolitano is here. wait a second. that's the original premise here. it is reported that the obama administration allowed the iranians access to our financial them at a time when sanctions were imposed on iran. we should not have given them

that access to our system. >> that is a political and financial argument with which i agree, but it's not a legal argument. it is lawful. what is troubling is the less treachery because they didn't know about it. the apartment menace aeration kept up the façade they kept up between everett and american banks. remember, the president can impose a sanction and selectively remove all or part of distinction. the law. maybe too much power in the hands of the president, but that's the law. donald trump has that power himself. american banks were afraid in the obama administration began to say say yes and it never

happened. >> we have a treasury secretary. we had a treasury secretary that went before congress. our financial system said no, they don't have access. and he was in charge of it. stuart: either that was an untruth, which would be a crime or he did not know that his own treasury department has issued this license, which would be the height of incompetence or him not to know that is treasury department issued a license on its face violative of a sanction in a white-hot environment like iran's banking system in ours. how does happen i don't know. glad we found out about it. it is not unlawful, but its political treachery. >> president obama would do anything to make sure you got that iran nuclear deal. >> remember what he said there's no side deals? this is obviously a side deal. this did not appear in any

documents congress saw. lindsey graham and the other said there's a side deal and john kerry said no, senator graham was right. secretary kerry was wrong. >> president obama said snapback sanctions will come into play. at the same time treasury officials around the world were saying don't worry about the snapback sanctions. >> remember the bucket loads of cash. where do you think that ended up? garth korea. we have pictures of the plane. off it went to iran. there are people who believe that there was a financial relationship between north korea. iran had a nuclear. dollars. literal dollar so they could buy

goods. you can't make this stuff up. even i as a libertarian i'm outraged at this because the president and his administration seriously an egregious leave misleading the american public about what they are doing with the power we've given them. and they will get away with it. >> again, contrary to what president trump said, it was not illegal. it was very wrong morally to mislead us like that. can the president lied to the american public legally? senator schumer is asking for help from former president obama in the midterm elections. i wonder if they will not reverse course on the bearing in mind what we just found out about the iran nuclear deal. >> no injection might doubt it. should be front page what were talking about now. anything else you want to talk

about, regurgitate with senator bernie sanders? his gun and kill me for saying that. stuart: you agree and i agree with you. >> i must tell you, everybody there, the two republicans in the five democrats. everybody there in the three witnesses on the same page. violative for congress to allow the president to declare war. whether you call it were not. for me it was a great day, a happy day. it was my birthday. going back and forth. one of the shows gave name a cake. one of the shows that i only appear on once a week gave me a cake yesterday at 5:30 in the morning. and they keep coming back. hit me again, harder.

[laughter] stuart: the trump administration wants to give it new powers to disable or destroy threatening drugs. department of homeland security needs the authority because terrorists are increasingly using drones to plot and carry out attacks. we've got that for you. check bit calling. where is it today? 7681. how about gold still hanging around 13 bucks an ounce. yes, or $10.2 to be precise. the president will leave japan white house, north korea on the agenda. we will tell you all about it. ♪ before i had the shooting, burning, of diabetic nerve pain, these feet...

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stuart as we told you many times, presidemp is getting ready to meet japan's prime minister. they're going to talk trade in north korea. congressman barry loudermmilk, republican from georgia. welcome to the show. good to have you with us. >> thanks for having me.

you worked in the intelligence community. i want to ask your big picture question. do you think it's possible at the end of the day that north korea really the nuclear rises in that we have a checking system to make sure they do it? do you think that's possible? >> i think so. we have to trust but verify. the reason i am so cautiously because you look at the progress made justin january when kim jong un buddies got a button on his desk. president trump's response was i have a button that works. we've gone from that to where we are today, which is due to the tough negotiations by this president. he was very reminiscent of ronald reagan before he took the oath of office started negotiation with iran regarding the hostages and they were released. i'm cautiously optimistic. if any president can get us there, it this one.

stuart: i think kim jong un is in a box, in a corner. if he goes through at the summit and he will and he doesn't deem nuclear rights and president trump walks away, where does that leave the north koreans with enemies all around? >> you're absolutely right. the key here is president xi of china. i think a lot of the trade rhetoric we are hearing right now is to ensure that the chinese stay on board with dusty nuclear is a north korea. but, there's a lot of pressure right now. you seem the way he's react to it by relieving some of the old hard-liners, the trusted advisors. he's relieved them of their duties to bring in the more forward thinking advisers to get us to this process. that is why i'm very optimistic that we may go to get this thing done. >> this is just my opinion that

kim jong bill wants to remain in power. he wants to remain absolutely secure and he also wants enormous financial and trade help to modernize north korea and make you richer. if he gets those two things, and he would then do nuclear eyes. what you say? >> your absolutely right. he wants to be in control and there's two ways he can be in control. being an absolute dictator the way he has in the past or bring north korea to be part of an international community and engage in trade and provide a higher quality of living for his people and maybe the trend is going. i would've never thought he would've ever had our prisoners released in leasing that have been the last few months. you are right on target. >> i got to tell you i'm absolutely glued to this and i think you are, too. welcome to the show. i hope we'll see you again real

soon. i promise more "varney" after this. here we go. ♪

stuart: we are talking north korea, japan's prime minister urged to discuss north korea. a question for ashley and lance. at the end of the day, if kim jong occurred insecure in power and its north korea becomes prosperous with enormous amounts of american aid, do you think that's good enough for the camera seemed to get rid of their nukes? >> yes. i think so, but very difficult to get there. japanese prime minister will say to the president because they are skeptical about north korea, wait a minute, don't get carried

away. but ultimately i think so. >> the economies have to side with vermont. kim jong un needs to keep his middle-class happy to stay in power and it's not good was happening. interesting question. i'm sure we'll figure out the answer at some point. time is a. it is yours. >> thank you connoisseur. awaiting the arrival of prime minister abe. a couple of key to this visit of course not only telegraphing what the japanese want to see out of the upcoming meeting in singapore, but more to the point ahead of the outcome of the meeting, the japanese like the canadian common they are very, very concerned about the president could be a divisive g-7 summit. but of course, these two have a very special relationship. he was one of the first leaders